SAP Digital Manufacturing Cloud

Manufacturing Execution
Tony Aschwanden
SAP Global Product Owner
Steve Stubbs
SAP Global Solution Owner
April, 2018
Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
document, or to develop or release any functionality mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a
particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2

SAP Digital Manufacturing Cloud Overview
Last week at Hannover Faire in Germany, SAP announced it’s Digital Manufacturing Cloud Strategy
with the following 3 Solutions:
• SAP Digital Manufacturing Cloud for execution
• SAP Digital Manufacturing Cloud for insights
• SAP Connected Worker Safety

These new Cloud Solutions are built on the SAP Cloud Platform
• They are not our existing OP solutions in the HEC

These new Cloud Solutions do not replace our OP Solutions. They extend and complement our
Digital Manufacturing Portfolio
• SAP Manufacturing Execution (SAP ME)
• SAP Manufacturing Intelligence and Integration (SAP MII)
• SAP EH&S Portfolio
• SAP Plant Connectivity (PCo)

These new solutions will be released in Q2 2018

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 3
SAP Digital Manufacturing Cloud Components

Includes these components:

SAP Digital Manufacturing Execution (DME): Industry 4.0-enabled shop floor solution features “lot size one” and
paperless production capabilities. It integrates business systems with the shop floor, allowing for complete
component and material-level visibility for single and global installations.

SAP Digital Manufacturing Insights (DMI): Centralized, data-driven performance management enables key
stakeholders to achieve best-in-class manufacturing performance and operations.

Predictive Quality Management (PQM): This helps manufacturers gain valuable insights to conform to
specifications across processes and streamline quality management. It also allows manufacturers to apply predictive
algorithms that can reduce losses from defects, deficiencies or variations, and recommend corrective actions.

Manufacturing Operations Designer: This is a comprehensive solution to design machine automation in industry
4.0 scenarios from a central place, provide an end to end overview of the production process and distribute the
configuration to edge runtimes.

Manufacturing network: The network provides a cloud-based collaborative platform integrated with SAP Ariba®
solutions connecting customers with manufacturing service providers, such as suppliers of 3D and computer
numerical control (CNC) printing services, material providers, original equipment manufacturers (OEM) and technical
certification companies. (See companion SAP Ariba solution announcement here.)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 4

SAP Digital Manufacturing Cloud

Solution GTM Structure

• Digital Manufacturing Cloud for execution
• Digital Manufacturing Execution
• Digital Manufacturing Insights
• Digital Predictive Quality
• Digital Manufacturing Networks
• Plant Connectivity

• Digital Manufacturing for insights

• Digital Manufacturing Insights
• Digital Predictive Quality
• Digital Manufacturing Networks
• Plant Connectivity

• SAP Connected Worker Safety

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 5

Digital Manufacturing Innovations for your Transformation
Manufacture the Lot Size of ONE

Manufacturing
Networks

AGILITY Manufacturing Manufacturing

Insights Execution

PERFORMANCE
SAP Digital
Manufacturing
QUALITY
Manufacturing Industrial
Engineering Automation
AVAILABILITY
Advanced
Analytics

Powered by SAP Leonardo Microservices Open APIs Flexile Runtimes Integration Machine Learning Blockchain Big Data Internet of Things Analytics

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 6

Digital Manufacturing
Innovation Strategy

▪ New digital manufacturing components in the cloud to

enable digital transformation SAP Digital Manufacturing Cloud
▪ Continued innovation in SAP Digital Manufacturing Suite For insights For execution
Rapid innovation in
on premise ▪ Manufacturing Networks ▪ Manufacturing Networks
the SAP Cloud ▪ Manufacturing Insights ▪ Manufacturing Insights
▪ Extensions of S/4HANA Manufacturing for Production Platform ▪ Manufacturing Execution
Engineering and Operations

SAP Manufacturing Execution Suite SAP Digital Manufacturing Suite

SAP Manufacturing Insights Intelligence SAP Manufacturing Insights Intelligence

SAP Manufacturing Execution SAP Manufacturing Execution
SAP Plant Connectivity SAP Plant Connectivity

SAP S/4HANA
Side-by-side with
S/4HANA for Production Engineering and Operations
innovations

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 7

SAP Digital Manufacturing Cloud
Manufacturing Execution
Manufacturing Execution
Orchestrate and Control the Shop Floor

Capabilities Production
Resource
Operator
Orchestration
Dashboard
▪ Implement top-floor to shop-floor scenarios to achieve & Dispatching
Designer
rapid return-on-investment through out-of-the-box Machine
Skills Orchestration
integration to SAP solutions Designer

▪ Utilize intuitive user interfaces (UI) for production operators Labor

Shift and
Message
and transform to paperless production Management
Boards
▪ Dispatch and sequence operations to reflect the real world Manufacturing Plant
in the short term Execution Connectivity

▪ Monitor the entire manufacturing process to optimize Quality and Overall

Non-conformance Equipment
resources and execution Management Effectiveness
▪ React quickly to unexpected events
WIP Tracking Data Collection
▪ Collect history of an item through all process steps
SAP ERP Work
Integration Instructions

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 9

SAP Digital Manufacturing Execution
…a flexible, friendly, easy to consume and maintain dashboard for shop floor users built visually to customer specific
requirements using a business grade drag n drop UI builder leveraging a modern plug-in UI5 framework

Key Selling Points

▪ Appealing worker UIs for shop floor users to accommodate a wide array
of MES functions such as assembling components, data collection,
Industry 4.0 A thing is born
defect logging,….etc.
▪ Includes a drag and drop UI builder to graphically place and orchestrate
manufacturing components configured to customer’s preferred UI
layout(s) for their shop floor users
▪ Leveraging the plug-in UI5 framework to easily add extendable POD
plug-ins to address customer specific requirements not supported out-of-
the-box

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 10

SAP Digital Manufacturing Execution

• Common Launchpad
• Role-Based Access
• All Manufacturing Apps

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 11

Resource Orchestration

Create the work load for

the work centers

Monitor production events ▪ Create workload for the resources and work centers he is
and production progress responsible for by dispatching operations to the corresponding
Production work centers
dispatching and ▪ Monitor production progress and events in the shop floor
monitoring
▪ Assign shifts to labor and labor to work center
Production and Labor
Supervisor scheduling

Schedule labor

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 12

Resource Orchestration Create the work load for the work
centers
Monitor production events and
Create the work load for the work centers Production dispatching production progress
and monitoring
Production and Labor scheduling
Supervisor
Schedule labor

▪ The Production Supervisor can easily

create the workload for the resources
and work centers he is responsible for
via drag and drop. Scheduling mode
and scheduling direction are considered
as well as working and non-working
times
▪ The visualization of capacity overload
situations as well as the resource
status, helps the production supervisor
to quickly identify and react to these
bottleneck situations
▪ A table view shows the already
dispatched operations for a selected
work center; here the user has also the
possibility to change the sequence of
the operations and to solve overload
situations
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 13
 Create the work load for the work
Resource Orchestration centers
Monitor production events and
Monitor production events and production progress Production dispatching production progress
and monitoring
Production and Labor scheduling
Supervisor
Schedule labor

▪ Another main aspect is the visualization

of the production progress. If production
is behind schedule, it is visualized at a
glance
▪ The resource breakdown situations are
visualized where the user can decide to
reschedule the operations to an
alternative resource or the same
resource with different point in time
▪ The user gets informed via icons and
notifications in case operation
relationships are violated or for high
priority orders
▪ The order view provides the user with an
overview of all operations belonging to
an order

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 14

 Create the work load for the work
Resource Orchestration centers
Monitor production events and
Schedule Labor Production dispatching production progress
and monitoring
Production and Labor scheduling
Supervisor
Schedule labor

▪ The Schedule labor App allows the

production supervisor or team lead to
assign shifts to the labor he is responsible
for. This is usually done for the complete
year or several months
▪ In the next step the user can assign the
work center to labor and shift
▪ In case a certain labor is not available the
user can assign the unavailability of the
labor for the corresponding day or week
▪ These assignments are considered during
dispatching in the Gantt Chart of the
Scheduling and Dispatching App

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 15

 Create the work load for the work
Resource Orchestration centers
Monitor production events and
Schedule Labor Production dispatching production progress
and monitoring
Production and Labor scheduling
Supervisor
Schedule labor

▪ Based on the assignments

done in the schedule labor
application, the production
supervisor can react on
missing labor alerts
▪ He can search for labor with
required qualification and
assign them to the
corresponding shift and work
center without the need to
leave the Gantt Chart App

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 16

Digital Manufacturing Execution
a powerful, enterprise-level, scalable solution that enables global manufacturers to manage and control manufacturing and shop floor operations
and realize Industry 4.0 scenarios. It provides a multi-faceted set of features that integrates business systems to the shop floor, allowing for
complete component and material-level visibility for single and global installations.

Key Benefits and Functions

SAP Cloud Platform
SAP SAP Digital Manufacturing Cloud
▪ Multi-industry, multi-manufacturing MES built ▪ Consumer grade graphical Production UI
S4/Hana for Execution
on the SAP Cloud Platform using the latest builder to simplify and accelerate the
technologies creation of role-specific, personalized,
and extendible shop floor operator
▪ Industry 4.0 enabled shop floor execution
dashboards
solution featuring lot size one production and
paperless production
▪ Easy integration “out of the box” to SAP ERP.
SAP Plant Connectivity (PCo) to the shop Production UI
floor for a complete end to end solution
▪ Optimized machine efficiency for the shop
floor w/Overall Equipment Effectiveness
(OEE)

PLC MODULE

Tester Robots Tools Mixing/Assemble Line

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 17

Work-In-Process Management

▪ Graphical routing engine to define the production flow

▪ Order release and status management
▪ Start and completion of orders through the routing
operation activities
▪ Industry 4.0 support of one piece flow
▪ Enforcement of routing flow including dynamic routing
decision
▪ Recording of the production activity performed against the
order

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 18

Work Instructions

▪ Definition of work instruction as URL or text

▪ Delivery of work instruction at the appropriate
location and time to shop user
▪ Recording of the viewing of the instruction during
production

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 19

Nonconformance

▪ Definition of a nonconformance code hierarchy

▪ Recording of nonconformance during the manufacturing
process to indicate production deviations
▪ Disposition of the recorded nonconformance for rework
and scrap purposes
▪ Recording of the status of the nonconformance

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 20

Data Collection

▪ Definition of required data collection parameters and

groups attached at the appropriate point in the
production process
▪ Definition of parameter types to be recorded, such as
numeric, text and Boolean and its limits.
▪ Collection of actual data from the production UI (POD)
▪ Supports the collection of parameters from the machine
integration layer

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 21

POD Designer

▪ Consumer grade graphical production UI builder to

simplify and accelerate the creation of role-specific,
personalized, and extendible shop floor operator
dashboards
▪ Drag and drop of the functional production plugins
onto the pallet designer
▪ Ability to preview a UI design in real-time to enable
the user to visualize how it will be presented on the
shop floor
▪ Highly configurable definition capability for commonly
used lists such as order queues and worklists
including sorting capabilities

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 22

Production Operator Dashboard

• Production UI builder to simplify and

accelerate the creation of role-specific,
personalized, and extendible shop floor
operator dashboards

• Real-time visualize the shop floor

• Paperless Production UI

• Desktop and Mobile

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 23

OEE

▪ Optimized machine efficiency for the shop floor with Overall

Equipment Effectiveness (OEE)
▪ Configurable OEE time model and reason codes to support
customer-specific time models
▪ Integrated OEE POD to collect OEE losses and reasons at the
root level
▪ Quick options for operator to trigger maintenance notifications
and machine status change
▪ Line performance summary and preview of upcoming planned
maintenance
▪ Central cloud analytics for standard OEE insights and root
cause analysis
▪ Configurable KPI modeler to adapt customer-specific
calculations
▪ Compare similar processes/lines to benchmark and drive
continuous improvements

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 24

Plant, Resource and Work Center, Shift, User Management

▪ Definition of production plants

▪ Definition of resources including resource types and
efficiency
▪ Assignment of shifts to resources
▪ Definition of work centers including hierarchy of work
centers down to the resource level
▪ Definition of shifts including types for users or resources
and break times
▪ Ability to define shift intervals and effective date ranges
▪ Assignment of users to calendar
▪ Assignment of certifications to users
▪ User Calendar – available working hours
▪ Assignment of users to supervisors and work centers

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 25

Out of the Box ERP Integration

▪ Supports S/4HANA (on-premise) and ECC

▪ Material master integration
▪ Order Integration
– Production order
– BOM
– Routing
– Work instructions
▪ Order yield confirmation from DME

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 26

Machine Orchestration Designer
Benefits

Design the optimal manufacturing process flow for machine orchestration and easily deploy it
throughout the runtimes.

Management Optimization Usability Improvement Integration Enablement

▪ Central design of process flows and ▪ Easy-to-start visualization editor to ▪ Integration of production when it is
transparency in the overall process design the manufacturing process available but enable engineering
flow for machines even before
▪ Capture of asset knowledge and
enhancement with process relevant ▪ Configuration instead of ▪ Use of Machine Model as
information programming wherever possible integration layer between
▪ Machine and server capabilities ▪ Provided interface with semantical applications and shop floor
transparency to everyone working meanings instead of technical
with it names
▪ Enablement of customers as the
owner of their processes

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 27

Machine Orchestration Designer
is a comprehensive feature to design machine automation in industry 4.0 scenarios from a central place, provide
an end to end overview of the production process and distribute the configuration to edge runtimes.

Design time - MOD Run time - PCo

Key Innovations

▪ Define operational flows of production in a

visual editor
▪ Reuse sequences of steps in different
operational flows
▪ Define technical flows (machine
communication models and message flows)
based on digital twin models in a visual editor
▪ Manage the master data with versioning in a
central place
▪ Manage the authorization at the project level
▪ Transfer production configurations to
integrated SAP Plant Connectivity (PCo)
systems

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 28

 SAP Digital Manufacturing Solutions
The foundation for Industry 4.0 in the Cloud and On-premise

Manufacturing Manufacturing Digital Digital Manufacturing Manufacturing Production Environmental

Network Execution Manufacturing Manufacturing Intelligence & Planning & Engineering & Health &
Cloud for Cloud for Integration Scheduling Orchestration Safety
execution insights

(Cloud) (On Premise) (*New Cloud) (Cloud) (On Premise) (On Premise w/ new
cloud component)

Digital Manufacturing Suite S/4 HANA

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 29
SAP Digital Manufacturing Cloud Solutions
The foundation for Industry 4.0 in the Cloud and On-premise

Digital Digital Digital Connected

Manufacturing Manufacturing Manufacturing Worker
Network Cloud for Cloud for Safety
execution insights

2018 Digital Manufacturing Cloud

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 30
SAP Digital Manufacturing Cloud for execution

Summary
• SAP Manufacturing Cloud for execution does not replace SAP ME
• It extends and complements our OP solutions providing deployment options
• DMI ties the analytics from both OP and our Cloud solutions together

• SAP Manufacturing Cloud for execution is not SAP ME in the HEC

• DME is a new multi-tenant Cloud Solution built on the SAP Cloud Platform

• SAP Manufacturing Cloud for execution includes the following:

• Digital Manufacturing Execution
• Digital Manufacturing Insights
• Predictive Quality Management
• Manufacturing Networks
• Manufacturing Operations Designer
• Plant Connectivity

• DME is targeted for release in Q2 2018

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 31

Thank you.
Contact information:
Tony Aschwanden
Global Product Owner – SAP Manufacturing Execution
mailto:tony.aschwanden@sap.com
T +41 58 871 61 98

Steve Stubbs
Global Solution Owner SAP Manufacturing Execution
Steve.stubbs@sap.com
T +1 864-323-3797