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Carlos Portillo EMEA Center of Excellence Digital Supply Chain Industry 4.0, Manufacturing, Asset Management & Sustainability Increase Plan Performance and Operational Excellence with SAP Digital Operations
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Carlos Portillo

EMEA Center of Excellence – Digital Supply Chain

Industry 4.0, Manufacturing, Asset Management & Sustainability

Increase Plan Performance and Operational Excellence with SAP

Digital Operations

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Todays Business Realities Fuel the Need to Evolveand technology trends are providing a new era of opportunity

• Volatility

• Siloes of Data

• Manual / Paper-based

Processes

• Manual or Excel-based

Analytics

• Disconnected Business

Processes

• Resource Scarcity

• Mobile Computing

• Industry 4.0 / IoT

• Big Data

• Wireless Network

Proliferation

• Affordable, Feasible &

Viable Technology

• Cloud Computing

• Pay per Use

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

FROM:

CONNECTED TO:

DIGITAL

TO:

INTELLIGENT

80% of business processes and

processes will be reinvented, digitalized or eliminated by

2020

24 billion IoT devices

by 2020

Digital Transformation: From Connected to Digital to Intelligent

75% of manufacturing value chains

will undergo digital transformation

by 2019

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public

‘Better Outcomes’ – The real reason for IoT projects

Optimized

Productivity

Improved

TurnaroundsLess Waste

Lower cost Increased UptimeNew Products &

Services

New Revenue Faster DeliveriesUsage – Based

Pricing

Greater Capacity Better Efficiency New Business Models

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public

SAP IoT and Digital Supply Chain - Leonardo Strategy

SAP Leonardo empowers the LIVE business, by connecting things with people and processes

SAP provides a highly innovative IoT solution portfolio which extends the digital core with adaptive applications, big data management and connectivity to enable

• New Business Processes (e.g. Industry 4.0)• New Business Models (e.g. pay per use)• New Work Environments (e.g. SAP Leonardo Bridge) People

Processes

Things

Asset Networks

Products as a Service

Business Process Innovation

New Business Models

Employee Efficiency

Augmented Intelligence

Business

Value

7INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Leonardo & Digitizing Business: The Big Picture

PEOPLEUI Layer (SAP Leonardo Bridge)

Enterprise Management – The Digital Core

Procurement

FROM

PROCESSES

TO

NETWORKS

R&D

Supply

Chain

Planning

Manufacturing

Logistics

Sales

After Sales

Service

Things / Physical Layer

PRODUCTS

“THINGS”

SAP Leonardo Foundation

SAP Cloud Platform / SAP HANA Platform

SAP Leonardo

Edge Computing

SAP Leonardo Apps

Connected Goods Connected Mfg.Track & Trace Vehicle Insights Predictive Main. Asset Intelligence NetworkNetwork Log. Hub

NEW BUSINESS

MODELS

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public

Connecting Things with People and Processes

Industry view

Line of Business

view

SAP Leonardo Portfolio

Technology view

SAP Leonardo

(“Things” View)

• Connected Products

• Connected Assets

• Connected Fleet

• Connected Infrastructure

• Connected Markets

• Connected People

LoB Digital Supply Chain

(Business Process View)

• Digital Business Planning

• Digital Response & Supply

• Digital Logistics

• Digital Product Innovation

• Digital Manufacturing

• Digital Operations

10INTERNAL© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Connecting Things with People and Processes

Industry view

Line of Business

view

SAP Leonardo Portfolio

Technology view

SAP Leonardo

(“Things” View)

• Connected Products

• Connected Assets

• Connected Fleet

• Connected Infrastructure

• Connected Markets

• Connected People

LoB Digital Supply Chain

(Business Process View)

• Digital Business Planning

• Digital Response & Supply

• Digital Logistics

• Digital Product Innovation

• Digital Manufacturing

• Digital Operations

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public

Excessive Paperwork…

• Work orders can be 100 pages or more!

• Forms are completed manually

• The keyed in by the technician at a PC

• Doubles the administration

• Reduces productivity

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12Public

• Paper based manuals, diagrams and parts listings

• Parts consumption is all paper based

• Part numbers look the same

• Components often look the same could lead to

significant negative consequences

Excessive Paperwork…

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public

• Safety checklist on paper

• Doesn’t enforce the process

• Analysis in hindsight

• No real time situational context

Paper Safety Systems…

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 15Public

• Time sheets filled in at the end of the

day…. or even at the end of the week!

• Time is rounded up to the nearest hour

or half hour

• No accuracy = no optimisation

• Planners and supervisors can’t track

progress of in progress maintenance

and service requests

Manual Time Sheets…

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16Public

• Planning process are often manual

• Spreadsheets

• Spreadsheet + magnifying glasses

• Paper based planning

• …Even maintenance files in crates

being moved as the status changes!

Sophisticated Planning Systems…

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17Public

Hand Written Labels – No Barcodes for Tracking

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 18Public

End to End Digital Operations Process

In the following slides we explain the end-to-end Digital Operations Process

How to connect, collect and manage asset related data

How to analyze asset related data

How to plan maintenance related activities

How to execute maintenance work orders

How to collaborate asset related data

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public

End to End Digital Operations Process

How to connect, collect and manage asset related data

i.e.: Real-time condition-based maintenance, Real-time asset performance dashboards, andons, reports, Real-time alerts and automatic actions based on events,

collect process parameters

Typical Personas: Process Engineers, Maintenance Planners

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public

SAP Manufacturing Execution Suite

SAP Manufacturing Integration & Intelligence (SAP MII)

Web-based strategic manufacturing platform to compose intelligent manufacturing applications

Worker UI

Automation

Layer

Top Floor

Shop Floor

ERP

OT – IT Convergence Connected Assets / Facility Management

Enterprise

Manufacturing

Intelligence

Manufacturing &

Quality Analytics

Insight to

Outcome

(i.e.:

Condition-

Based

Maintenance)

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public

Self Service Composition Environment Overview

» A simplified browser(HTML5) based

design tool for dashboard creation by

consuming different objects via drag & drop.

» Provides WYSIWYG based design

» Form based reporting dashboard using

UI elements.

» Source code generation for the

designed dashboard and possibility to

extend through custom coding using script

assistance

» Integrating tag value changes directly

to browser using web socket interface or

through catalogue query template

» Comprehensive tool usable for a business

user and IT developer

» Reduce the time required for dashboard

creation

» Dashboard accessibility from mobile

devices

Business Logic Services

Visualization

Quality Engine

KPIs / Metrics / Alerts

Data Services

Manufacturing Integration & Intelligence

Composition

Environment

PLAN MAKE DELIVER

ERP SCM PLM

INTEGRATION

Plant Connectivity

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public

Energy Monitoring & AnalyticsScreenshots from NHL System

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public

Process / Asset Visibility and Performance (Virtualization)

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public

Facility Management

● Visualize and interrogate process plants and the business in 3D

● Visual and Business data is connected to EAM and ERP through asset ID’s and functional location

● Business Data and Operational Data linkage is done in SAP MII

3D Procedures

View Operations

Data

Operations/ Historian

View Business

Data

2D / 3D Access

https://video.sap.com/media/t/0_0q0tvdon

Live Demo

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public

End to End Digital Operations Process

How to connect, collect and manage asset related data

i.e.: Real-time condition-based maintenance, Real-time asset performance dashboards, andons, reports, Real-time alerts and automatic actions based on events,

collect process parameters

Typical Personas: Process Engineers, Maintenance Planners

How to analyze asset related data

i.e.: predictive maintenance, machine learning

Typical Personas: Data Scientists, Maintenance Managers

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public

Association

Analysis• Apriori

• Apriori Lite

• FP-Growth

• KORD – Top K Rule Discovery

Classification

Analysis• CART

• C4.5 Decision Tree Analysis

• CHAID Decision Tree Analysis

• K Nearest Neighbour

• Logistic Regression

• Back-Propagation (Neural Network)

• Naïve Bayes

• Support Vector Machine

• Confusion Matrix

• Parameter Selection & Model Evaluation

Regression• Multiple Linear Regression

• Polynomial Regression

• Exponential Regression

• Bi-Variate Geometric Regression

• Bi-Variate Logarithmic Regression

Probability

Distribution• Distribution Fit

• Cumulative Distribution Function

• Quantile Function

Outlier Detection• Inter-Quartile Range Test (Tukey’s Test)

• Variance Test

• Anomaly Detection

• Grubbs Outlier Test

Link Prediction• Common Neighbors

• Jaccard’s Coefficient

• Adamic/Adar

• Katzβ

Data Preparation• Sampling

- Random Distribution Sampling

• Binning

• Scaling

• Partitioning

• Principal Component Analysis (PCA)

Statistic Functions

(Univariate)• Mean, Median, Variance, Standard

Deviation

• Kurtosis

• Skewness

Statistic Functions

(Multivariate)• Covariance Matrix

• Pearson Correlations Matrix

• Chi-squared Tests:

- Test of Quality of Fit

- Test of Independence

• F-test (variance equal test)

Other• Weighted Scores Table

• Substitute Missing Values

Cluster Analysis• ABC Classification

• DBSCAN

• K-Means

• K-Medoid Clustering

• K-Medians

• Kohonen Self Organized Maps

• Agglomerate Hierarchical

• Affinity Propagation

• Gaussian Mixture Model

• Latent Dirichlet Allocation (LDA)

Time Series

Analysis• Single Exponential Smoothing

• Double Exponential Smoothing

• Triple Exponential Smoothing

• Forecast Smoothing

• ARIMA / Seasonal Arima

• Brown Exponential Smoothing

• Croston Method

• Forecast Accuracy Measure

• Linear Regression with Damped Trend and Seasonal Adjust

• Test for White Noise, Trend, Seasonality

SAP HANA In-Memory Predictive Analytics Predictive Analysis Library (PAL) - Algorithms Supported

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Public

End to End Digital Operations Process

How to connect, collect and manage asset related data

i.e.: Real-time condition-based maintenance, Real-time asset performance dashboards, andons, reports, Real-time alerts and automatic actions based on events,

collect process parameters

Typical Personas: Process Engineers, Maintenance Planners

How to analyze asset related data

i.e.: predictive maintenance, machine learning

Typical Personas: Data Scientists, Maintenance Managers

How to plan maintenance related activities

i.e.: resource allocation, work clearance, risks and safety measures, work order scheduling, operating procedures, audits, control inspections

Typical Personas: Maintenance Planners, Health & Safety Planners

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 29Public

SAP Multiresource SchedulingResource Allocation & Work Order Scheduling

HR Resources

Business Partner

Availability, Qualifications

Demand

Supply Assignments

SAP ERP

PM/CS

Work/Service Order,

Notification

SAP ERP PS

Project System

SAP PPM

cProjects

SAP Applications

SA

P M

RS

GIS Geographical

Information system

Equipment

Tools

Spare Parts

Optimizer

SAP VSR Vehicle

Scheduling & Routing

SAP CRM

Service Order

SAP HCM, MM

Qualifications

DE

MA

ND

SU

PP

LY

SAP Mobile Platform

SAP Work Manager and

Service Manager by Syclo

SAP BW, SAP

BusinessObjects, SAP

Predictive Analysis

ANALYTICS

MOBILITY

Work Centers

Groups

Crews

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 30Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public

Environment, Health, and SafetySAP solutions for Environment, Health, and Safety

Incident Management

Detect and resolve safety issues and learn from incidents.

Health & Safety Management

Reduce risks by taking a proactive approach to health and safety management.

Environment Management

Reduce your environmental impact with comprehensive environment management.

Management of Change

Manage operational changes with systematic reviews, risk mitigation, and approvals.

Maintenance Safety and Permit to Work

Control maintenance work through clearly defined safety instructions and permits.

Proactively manage operational risk to protect people and the environment

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public

Hazard Identification and Risk Assessment

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public

Safety Plan in Maintenance Work Order

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public

End to End Digital Operations Process

How to connect, collect and manage asset related data

i.e.: Real-time condition-based maintenance, Real-time asset performance dashboards, andons, reports, Real-time alerts and automatic actions based on events,

collect process parameters

Typical Personas: Process Engineers, Maintenance Planners

How to analyze asset related data

i.e.: predictive maintenance, machine learning

Typical Personas: Data Scientists, Maintenance Managers

How to plan maintenance related activities

i.e.: resource allocation, work clearance, risks and safety measures, work order scheduling, operating procedures, audits, control inspections

Typical Personas: Maintenance Planners, Health & Safety Planners

How to execute maintenance work orders

i.e.: mobile, visual work instructions, augmented reality & wearables

Typical Personas: Maintenance Technicians

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public

SAP Work ManagerExecution of Maintenance Orders in any Mobile Device

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public

SAP Work ManagerExecution of Maintenance Orders in any Mobile Device

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Public

SAP Work ManagerExecution of Maintenance Orders in any Mobile Device

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public

SAP Work ManagerExecution of Maintenance Orders in any Mobile Device

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Public

SAP Work ManagerExecution of Maintenance Orders in any Mobile Device

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Public

Augmented Reality with SAP AR Service Technician

Companion Application to SAP Work Manager

Link to the SAP Work Manager mobile app through a simple

QR-code scan

Visual Enterprise 3D model visualization and animation

SAP 3D Visual Enterprise steps browsing

Equipment notes

Remote expert calling

Hands-free application

All the application steps can be completed without gestures

or touch events

Required inputs are managed through voice recognition

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public

End to End Digital Operations Process

How to connect, collect and manage asset related data

i.e.: Real-time condition-based maintenance, Real-time asset performance dashboards, andons, reports, Real-time alerts and automatic actions based on events,

collect process parameters

Typical Personas: Process Engineers, Maintenance Planners

How to analyze asset related data

i.e.: predictive maintenance, machine learning

Typical Personas: Data Scientists, Maintenance Managers

How to plan maintenance related activities

i.e.: resource allocation, work clearance, risks and safety measures, work order scheduling, operating procedures, audits, control inspections

Typical Personas: Maintenance Planners, Health & Safety Planners

How to execute maintenance work orders

i.e.: mobile, visual work instructions, augmented reality & wearables

Typical Personas: Maintenance Technicians

How to collaborate asset related data

i.e.: connect with OEM, component suppliers, asset manufacturers, service providers, etc.

Typical Personas: Maintenance Manager, Plant Manager, Facility Manager, Asset Manufacturer, Maintenance Service Providers, etc.

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 42Public

So what is SAP Asset Intelligence Network?

Operators

OEMs &

Service

Providers

Shared model

database

Provider/

operator network

Secure

infrastructure

Global equipment

registry

SAP Asset Intelligence Network

brings together the manufacturers,

service providers, and operators of

the world’s assets to collaborate

around shared equipment

information to maximize availability,

improve efficiency, and create new

business models.

Model &

Equipment

Database

Model

Improve-

ment

Spare

Parts

Functional

Locations

Announce-

ments

Obsolescence

Report

Equipment

History

Asset

Document

Library

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Public

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 44Public

Connecting Things with People and Processes

Industry view

Line of Business

view

SAP Leonardo Portfolio

Technology view

SAP Leonardo

(“Things” View)

• Connected Products

• Connected Assets

• Connected Fleet

• Connected Infrastructure

• Connected Markets

• Connected People

LoB Digital Supply Chain

(Business Process View)

• Digital Business Planning

• Digital Response & Supply

• Digital Logistics

• Digital Product Innovation

• Digital Manufacturing

• Digital Operations

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 45Public

Digital Supply Chain, powered by SAP Leonardo

Digital

Business

Planning

Digital

Logistics

Digital

Product

Innovation

Digital

Manufacturing

Digital

Operations

Connected

Products

Connected

Assets

Connected

People

Connected

FleetConnected

Infrastructure

Connected

Markets

Digital Supply Chain

Business Process View

SAP Leonardo

“Things” view

Digital

Response

& Supply

SAP Leonardo Bridge

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 46Public

MES

Integration to Automation

Business Suite

(1) Top Floor to Shop Floor

Need for SMART SIMPLIFICATION

How to accelerate and grow productivity and profitability in complex business environment? How to run business and production seamlessly integrated?

Consumer/customer

Business Networks

» SIMPLIFY

» HARMONIZE

» REDUCE

(2) Customer to Operations

Accelerate the Enterprise SuccessHigher Productivity due to Simplification

Envisioned Future Themes of Digital TransformationView for Manufacturing » Automated PDC (Plant Data Collection)

» Automated order execution

» Innovative hardware converges with software

» Continuous KPI analytics, like order and execution status, performance, etc.

» eDHR (electronic Device History Record)

» OEE (Overall Equipment Effectiveness)

» Connect Customer with Automation floor

» Vertical and horizontal integration

» ERP to Shop floor interoperability

» Standard SAP platform, also leveraging HANA

» On premise, private cloud

» Central, regional, decentral deployment

» Real-time reporting

» Alerting framework

» Direct update of order confirmation and inventory stocks

TOUCHLESS

TRANSPARENT

CONNECTED

REAL-TIME

SCALABLE

VISION

THEMES

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 48Public

What is Industry 4.0 AboutBuilding blocks for Industrial Internet of Things

Automation

SAP Business Suite powered by SAP HANA

Connected Products

Digital Manufacturing Portfolio

ConnectedAssets

Real-time Network Insights

Production PlanningMaterials

ManagementQuality

ManagementPlant Maintenance

Global Batch Traceability

Manufacturing Execution for Discrete Industries

Digital Manufacturing Insight**

Distributed Manufacturing**

Manufacturing Integration & Intelligence

Demand Logistics Scheduling Order Fulfillment

Human Resources

Quality Issue Management

Digital Manufacturing Portfolio

LIMSMES SCADA / HMI

Plant DataCollection

Wireless Integration

EnvironmentalBuilding

Management

Plant Historian

Plant DBDCSPLC

Sensors

Public Cloud

On-premise

Shop Floor

Private Cloud

Plant Connectivity 3D Visual Enterprise

** Future Solutions

Let’s Take the Next Steps Together!

Carlos Portillo

EMEA Center of Excellence – Digital Supply Chain

Industry 4.0, Manufacturing, Asset Management, Sustainability

[email protected]

+31 6 1534 8907


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