Post on 26-Apr-2022
SAP Perfect Plant Initiative
Dr. Wolfgang RybczynskiSAP Deutschland AG & Co. KG
September 10, 2008
© SAP 2008 / Page 2
1. Actual Situation
2. Increasing Pressure on the Plant
3. Vision of the Perfect Plant
4. Ways towards the Perfect Plant
Agenda
Products
Byproducts
Waste
Waste Air
Waste Water
© SAP 2008 / Page 3
The Manufacturing Plant is for other Functionsvery often a Black Box
View from OutsideThe manufacturing plant is a part of the Supply Chain,
which absorbs enourmous resources and generates high costs..
View from InsideThe manufacturing plant is the core function of the company
with the central task to produce all required products with the right qualityand to ensure timely delivery to the customer.
Raw Materials
Auxiliaries
Energy / Utilities
Operator Hours
Laboratory Hours
External Costs
Equipment Hours Plant
© SAP 2008 / Page 4
Manufacturing ExecutionEnergy ManagementAsset Management
The Plant is in many Companies the by far biggest and most complex Function
Safety, Health & Environment
Filling, Drumming, Packaging, Labelling, Loading, Unloading
Storage (Tanks, Silos, Buffer Vessels, Intermediates Storage, etc)
Plant Logistics and Transport
Production Detail Planning
Quality Management
Inprocess Analytic
Engineering
Compliance (BImSchG, cGMP, DIN ISO 9001/14001, techncal Regulations, Labour Legislation, etc)
Production
Key Words:
Quality Management
Planning
ReportingComplianceRiskVisibility
Parts of the Manufacturing Plant:
© SAP 2008 / Page 5
Communication to the Manufacturing Plant facesmany Obstacles in both Directions
„They are always on the safe side / They are sandbaging“
„They always know everything better!“
„We are the by far most important function!“„I do not understand it!“
„How have they calculated these KPIs?“
„The surely hide something!“
„Why don‘t they escalate problems immediately?“
„Can we trust these numbers?“
„Do they really tell us everything?“
„They do not inform us in time!“
Top Management,Marketing, Sales,
Finance
© SAP 2008 / Page 6
Every Person in the Company has his/her ownview – and needs specific Informations
CEOSupply Chain ManagerCIO
Research & Development Purchasing Manufacturing
Plant Sales Service Recycling
Logistics, Transport and Storage
VP Operations/COOQuality ManagerProduct Manager
Site ManagerIT-Manager
Plant Manager 1Plant Engineer 1Lab ManagerForemanOperator
© SAP 2008 / Page 7
IT Landscape and Data in the Plant
Systems DataMany different systems and interfaces
Many home-grown systems
Poit-to-point integration within the plant
Low level of ERP system integration
In some cases, integration within the plant or the department
Functionally oriented (instead of processoriented)
Know-how often owned by individuals
Rigid adherence to existing systems
Home-grown databases
Different data formats
Media mix (electronic and paperdocumentation)
Data inconsistencies
Data redundancies
Transcription errors
Giant, unused data volumes
Data entry sheets and reporting very oftenin MS Excel
Realtime integration < 30%
The Plant IT is a lonesome Island … … and lies in an Side Optimum (at best Case)
© SAP 2008 / Page 8
MES
Correlation Correlation
Confusing Structure of the Plant ITThe Plant needs more Integration
Analysis
Storage
ERP
MaintenanceHistorian IIHistorian I LIMS ‘Home-Grown‘
© SAP 2008 / Page 9
1. Actual Situation
2. Increasing Pressure on the Plant
3. Vision of the Perfect Plant
4. Ways towards the Perfect Plant
Agenda
© SAP 2008 / Page 10
Increasing Pressure on the Plant –Globalization is the Key Driver
Increasing number of business transformation projects(M&A, outsourcing, change of business models, large IT projects, restructuring, etc)More manufacturing sites have to be planned and coordinatedglobally.Fixed cost reduction programs often have a focus on manufacturing.Process optimization / efficiency increase / cost optimizationIncrease of overall equipment effectiveness (OEE) / reduction of lead time (Flexibilität)Shortening of time to market for new productsQuality management (SPC, Six Sigma, TQM, DIN ISO 9001, etc)Compliance (cGMP, BImSchG, REACh, techical regulations, etc)Increasing customer requirements regarding quality and servicelevelCooperation with and integration of external service providersIncreasing speed and accurency of reportingDecreasing understanding of manufacturing by the top management
© SAP 2008 / Page 11
1. Actual Situation
2. Increasing Pressure on the Plant
3. Vision of the Perfect Plant
4. Ways towards the Perfect Plant
Agenda
© SAP 2008 / Page 12
Vision of the Perfect Plant
The Perfect Plant is the ultimate goal to optimize utilizationof your assets. In the Perfect Plant you have visibility intoall operations including production performance and yourassets, providing relevant key performance indicators(KPIs), trends and alerts at realtime.
This visibility into your plants provides the agility and flexibility to respond faster to operational issues and to minimize impact to your business and bottom line.
The Perfect Plant significantly contributes to the success of the business. It bridges the gap between business strategyand manufacturing operations.
© SAP 2008 / Page 13
Vision of the Perfect Plant in Detail
No data redundancies (everybody uses the same data)
Informations at realtime
Transparency across all processes (demystification of manufacturing plant operations)
Full integration of the plant into the business processes
Role-based visualization (from operator to top management)
Convergence / unity of IT systems
Support of the plant processes by suitable IT systems
Analysis, KPIs and reports are basis for well-groundeddecisions
Prompt support of business processes and business models
Cooperation between employees, departments and functions
Culture of permanent learning and continuous improvement
© SAP 2008 / Page 14
1. Actual Situation
2. Increasing Pressure on the Plant
3. Vision of the Perfect Plant
4. Ways towards the Perfect Plant
Agenda
© SAP 2008 / Page 15
SAP has a strong Focus on the Plant today
Starting from Finance, SAP extensively developed solutions for SupplyChain without complete integration of manufacturing plant details.
SAP offered solutions for all plant topics which were important from theSCM view (PP-PI, EH&S, QM, PM, EAM, WM, EWM, etc.)
Then, it became obvious, that the plant needs a higher level of integration (transparency, realtime, avoidance of data redundancies), analysis/reporting, automation und optimization via IT/SAP
SAP developed MII as general data interface for the plant
integrated detail solutions from special software providers andcompleted it‘s solution portfolio more and more
gave informations (presentations, workshops, publications, etc)
enforced the long lasting cooperation with SAP partners
acquired VISIPRISE
built up in-deep manufacturing operations expertise
© SAP 2008 / Page 16
SAP MII enables full Integration of the Plant IT into the Business Processes
SAP ERP, SAP SCM
SAP MII
Planned OrdersBills of MaterialProduction & Process OrdersMaterial Inventory LevelsInspection Lots DataMaster RecipesMaterial DetailsBatch DetailsResources & Functional LocationsMaintenance Work Order & Notification detailsMaterial & Order Costs
Production ConfirmationsProcess MessagesMaterial ReceiptsMaterial ConsumptionsMaterial TransfersInspection results recordingQuality NotificationsBatch Characteristic recordingWork Orders & results recordingMaintenance Notifications
© SAP 2008 / Page 17
Integration of the Plant Processes with SAP MIIPlant IT becomes lean
ERP
MaintenanceHistorian IIHistorian I LIMS MES
MII
‘Home-Grown‘
Extraction of dataRelation of dataAnalysis of data
1. Manufacturing PlanningForecasting/Collaborative ForecastingMake-to-Stock / Make-to-OrderFinite Capacity SchedulingMaterial Requirements PlanningRecipe ManagementLean & Repetitive
SAP Solutions for the Perfect Plant
2. Manufacturing ExecutionProduction Process ManagementBatch ManagementLabor & Resource ManagementOutbound ProcessingProduction DispatchKanban
3. Quality ManagementLIMS integration Quality EngineeringQuality / Tracking ControlQuality ImprovementAudit ManagementSixSigma/SPC
5. Plant MaintenanceTechnical Asset MgmtPredictive & Preventive MaintenanceMaintenance ExecutionIntegration to purchasing
4. EH&S Compliance Product Safety ManagementHazardous Substance & Dangerous Goods Emissions & Waste ManagementIndustrial Hygiene and SafetyOccupational Health
6. Visibility ATP/CTPSafety / Target StockManufacturing Costing & Performance Mgmt.Tracking & GenealogySubcontracting and CollaborationManufacturing Event Management
Manufacturing Visibility
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Manuf. Intelligence Dashboards
© SAP 2008 / Page 19
Implementation of Perfect Plant Projects
Each enterprise is unique and therefore different!
Identification of the business processes which are mostimportant for the enterprise
Focus on the core process
Support by top management required (VP- / C-Level)
Definition of measurable goals and KPIs
Formation of cross-functional teams
Identification and involvement of persons who have practicalknow-how (operators, shift leaders, foremen, planners, etc)
Clarification of definitions between plant, top management and IT (common language)
Sufficient time requirement
No needless perfectionism (“No incent for ornament”)
Step by step
Eventually support by Change Management
© SAP 2008 / Page 20
How can you see that a Perfect Plant Project has been successful?
Accomplishment of the goals / KPIs
KPIs from the plant become the basis for important decisions
Also other departments are interested in these KPIs
Plant experience is rapidly spread also to other processes and departments
Communication, confidence and trust between departmentsand functions become stronger
Opportunity to start further business process reengineeringinitiatives
KPIs are basis for best practice projects or site goals
Learning organization (motivation, ideas, ambition, etc)
Measuring and communication of the results
Leaner IT landscape
Key Opportunities for Perfect Plant Measures
Increase asset uptime through improved maintenance planning and scheduling Improved design and life cycle management of the assetsIncreased effectiveness of preventive and predictive maintenance techniques
Reduced number of EH&S incidents and associated costsLower overall regulatory compliance costs with increased labor productivityEnhanced management of hazardous goods, disposal, waste & emissions
Enhanced process visibility supports early detection of potential issuesIncreased efficiency from optimal allocation and tracking of labor and resourcesDetect & resolve manufacturing exceptions minimizing rework & overtime
2. Energy
4. Mfg Planning
6. Asset Availability& Efficiency
1. Raw Materials
Reduce wasted energy in mechanical and electrical systemsReduce energy loss due to improper PM frequencies in air / steam systemsMaximize use of all available energy throughout plant
Manage raw material variability in line with customer expectationsIncreased visibility results in right material – right place – right time Reduce spend on expedited production, labor and freight costs
Key Value Drivers
Improve Cost Structure
8. Quality
Manage Asset Performance
Drive Compliance Decreased variability increases product quality and customer satisfaction
Proactive problem & variance detection and management of quality issuesEnhanced quality compliance supporting continuous quality improvement
Strategic GoalsAreas of
Opportunity
7. Compliance
Increase Operations Efficiency
3. MaintenanceMaterials & Labor
Reduced maintenance labor cost from improved scheduling and executionEnhanced knowledge management, skills sharing and training effectivenessReduced MRO inventory levels and increased turns, supplier performance
5. Mfg Execution
Increased customer satisfaction & retention due to accurate order delivery dates Decreased inventory and higher asset utilization due to optimal planningEnhanced ability to sense and respond to schedule and order changes
© SAP 2008 / Page 22
The Perfect Plant significantly contributes to the Success of the Company
Plant related processes become more efficient. Therefore, the perfect plant improves the profit & loss statement.
Key performance indicators (KPIs) and their visualization make different departments and functions speak one common language. Discussions, meetings and a lot of redundant work are not longer required. The plant manager gets a higher degree of trust and credibility.
Business strategies can easily be realized, because the plant nearly synchronously follows the changes of the business model. The entire enterprise becomes flexible/dynamic (instead of sclerotic/static).
At the competitive market, the Perfect Plant is a strategic weapon.
Cross-functional project teams drive further improvement of business processes.
The entire company is a learning organization; by that it continuously improves its performance to become brilliant.
© SAP 2008 / Page 23
Plant and Company as Cybernetic Model
Controller ProcessorSetpointBudget
System DeviationBudget Deviation Enterprise
Control ActionMeasure/Action Process
DisturbancesMarket, etc.
Current ValueActual
Frequency and Quality of Feedback define the Performance of the System
© SAP 2008 / Page 24
The learning Organization
Controller ProcessorSetpointBudget
System DeviationBudget Deviation Enterprise
Control ActionMeasure/Action Process
DisturbancesMarket, etc.
Current ValueActual
Frequency and Quality of Feedback define the Performance of the System
Business Leaders with good Products and Processes will be successfull on long Term, if they also maximize Frequency and Quality of their Feedback.
Therefore you need full Integration of Manufacturing via Perfect Plant!
© SAP 2008 / Page 25
Contact
Dr. Wolfgang RybczynskiBusiness Transformation ConsultingProcess, Consumer Industries & TradeSAP Consulting
SAP DEUTSCHLAND AG & CO.KGHasso-Plattner-Ring 769190 Walldorf
T +49 6227 7 74803M +49 160 90819767F +49 6227 78 51597
w.rybczynski@sap.comwww.sap.com
Dr. Wolfgang RybczynskiBusiness Transformation ConsultingProcess, Consumer Industries & TradeSAP Consulting
SAP DEUTSCHLAND AG & CO.KGHasso-Plattner-Ring 769190 Walldorf
T +49 6227 7 74803M +49 160 90819767F +49 6227 78 51597
w.rybczynski@sap.comwww.sap.com
© SAP 2008 / Page 26
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