Innovations Driving the Intelligent Enterprise in Mining ...€¦ · Georg Gradl, VP. Global Head...

Georg Gradl, VP. Global Head SAP for Mining & Metals, Industry Solution Management, SAP SE

Prague, October 2018

Innovations Driving the Intelligent Enterprise in Mining & Metals

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

“Run your Mine like a

factory”

Worker safety

Visibility into operations

IT/OT integration

Increase productivity through automation

Flexibly react to changing

market conditions

Commodity Management

Enhance operational and commercial agility

Extended Workforce

Management

Business Networks

Strategic Priorities in Mining for MiningMake the

business more

predictable

and saf er

Make the business more

predictable and safer

Collaborate with customers, suppliers,

and workers


Omnichannel solution

selling

Real-time order confirmation

Smart use of

renewable energy /

Ethical correct sourcing

End-to-end supply

chain visibility

Predictive Models

Digital Twins

Product Configuration

Personalization

Strategic Priorities for Metals

Achieving customer

centricity

Charge based on

performance

Business Networks

Offering

small lot sizes and

individualization

Running

Smart factories and

digital networks

Supporting

value-added services &

new business models

Producing

for purpose


The Intelligent Enterprise

1

2

3

Intelligent Suite

Intelligent Technologies

Digital Platform

THE INTELLIGENT ENTERPRISE

features 3 KEY COMPONENTS:

CustomerExperience

Manufacturing& Supply Chain

Digital Core PeopleEngagement

Network & SpendManagement

Digital Platform

DataManagement

CloudPlatform

Intelligent Suite

AI/ML | IoT | Analytics




1

2

3

Intelligent Suite


Digital Platform



CustomerExperience




Digital Platform

DataManagement

CloudPlatform

Intelligent Suite




LEADERS ARE TRANSFORMING THEIR END-TO-END CUSTOMER EXPERIENCE

Product & Marketing Sales & Production ServiceOrder Fulfilment

Innovate with focus on

your customer

Simplify processes and

empower your sales team

and your customer.

Fast to market on time,

one-time and accurate

delivery on lowest costs

Enable customer service

communication across

channels


Provide the world’s leading

Customer Experience Suite.

THE INTELLIGENT FRONT OFFICE

REAL TIME. AUTOMATED. INSIGHT DRIVEN. AGILE

C/4HANA

Powered by


SAP LEONARDO

SAP CLOUD PLATFORM

INTELLIGENT EXPERIENCES ANYWHERE

SAP CUSTOMER DATA CLOUD

WEBIN-STORE/

BRANCH

CONTACT

CENTER

DIGITAL

GOODS

MARKET-

PLACES

IOT SOCIAL

MEDIASMS/

NOTIFICATIONS

SEARCH

KW/ADS

DIGITAL

ADVERTISING

E-MAIL PRINTINGAGENT

TOOLSMOBILE

SAP S/4 HANA

SAP Marketing

Cloud

SAP Commerce

Cloud

SAPSalesCloud

SAPServiceCloud

NON SAP


SAP Digital Supply Chain Product Investment Focus

End-to-End Supply Chain Business ProcessesAgility & Speed Flexibility & Scalability

Real-time Collaboration

Business Network Enablement

SAP Supply Network

Collaboration

SAP Global

Track and Trace

SAP Logistics

Business Network

Real-time Data

SAP Leonardo

Transportation

LogisticsWarehouse

LogisticsIntegrated Business

Planning


Strategic Topics & Key Areas of Investment - IBP

Advanced Planning

• Seamless Planning Processes

• Order-based Planning

• Demand-Driven MRP

• Industry-specific support

Integration & Business

Network Collaboration

• Flexible & Robust

Integration (e.g. ARIBA)

• Forecast Collaboration

Usability

• Advanced Visualization

• Embedded Analytics

• Process Automation

• Flexible Modelling & Configuration

Cloud Operations

• Scaling & Performance

• Security

• Test Automation

This is the current state of planning and may be changed by SAP at any time.

Machine Learning

• Sophisticated Algorithms

• Decision Support

Extensibility

Product

direction


Global Track

and Trace

SAP Global Track & Trace - Sense and Respond to Logistics Insights

Shipper Customer

Supplier

Logistics Service

Provider

…

Key Features

• Capture business events across a business

network environment

• Provide real-time insights to all relevant

stakeholders as per their specific business

needs

• Consolidate master data

Real-Time situational insights across global

sourcing, production, and fulfillment

Easy on- and

off-boarding

Scalable

performance and throughput


SAP Global Track and Trace enables track and trace across the company and business

partners – integrates with backend processes and real-time IoT sensing

Business

partner

onboarding

Visibility for

customer

and consumer

Onboard

units

Devices and

automation

Products/

cargo

Transportation

resourcesServices

Connected IoT

Purchase or

Sales Order fulfillment tracking

Cloud-based track and trace

LocationStatus Events Condition

Object tracking, incl

aggregations

Milestone Monitoring and

exception management to

automated actions

Delivery and shipment

tracking

Connected Backend


SAP Global Batch Traceability

SAP Global Batch Traceability is a

corporate level repository that provides

you with a global corporate view and

reporting on your corporate product batch

genealogies, their origins and global batch distribution

Capture your

procured batches

Capture component

batches of procured

batches

Capture your global

batch genealogy and

usage

Understand your

global internal and

external batch

distribution


SAP Global Batch Traceability at a glance

SAP Global Batch Traceability:

a cockpit across your global

batch genealogy and its

distribution

Search your global batch usage

Explore your global batch usage

Instantly report on your global batch

usage

Key Features

• Capture & link batch usage

across distributed systems to

support GMP

• Graphically explore/

investigate the batch issue

• Fast Reporting to drive

precision recall, withdrawal or

hold

• Pro-active monitoring of your

global batch usage &

distribution


SAP Global Batch

Traceability

SAP ERP

Batch record systems

not based on SAP

software

Global Track

and Trace

Business

partners

Import upstream batch genealogy

Raw material

origin

Intermediaries

and

preprocessing

Production Distribution

Capture the global batch usage from raw material

origin to the distribution of finished product

Fast Time to Insight across your global batch

genealogy and its distribution

Import data about procured batches

Batch where used through transactional

data integration

SAP Global Batch TraceabilityGet real-time insight into your global batch usage


Asset Central

Next Generation Asset Management – Connected Assets

Digital Innovation: System of InnovationDigital Core: System of Record

Predictive

Maintenance &

Service

Asset Intelligence

Network Maintenance

Management

&Service

Asset Strategy &

Performance

Management

Predictive

Engineering

Insights Enabled

by ANSYSConsumed via mobile device

S/4HANA

&

ERP

SAP Leonardo IoT for

Asset Management


Consume

Shared model

database

Provider/

operator

network

Secure

infrastructure

Global

equipment

registry

Asset Intelligence Network - The Process

Manufacturer Service Provider Operator

Service Bulletin ReceiptService Bulletin Processed

Usage Information

Installation Information

Failure/Incident Data

Design RecommendationsRisks & Controls

Measurement Documents

Telemetry

Control Over Data Shared

Design & DrawingsMaintenance Strategy

Failure Modes

Recalls

Safety Controls

Process ControlsSpare Parts List

Service Bulletins

Licensing

Product Training

Sensor Definition

Design & DrawingsMaintenance Strategy

Failure Modes

Recalls

Safety Controls

Process ControlsSpare Parts List

Service Bulletins

Licensing

Product Training

Sensor Definition

Service Bulletin ReceiptService Bulletin Processed

Usage Information

Installation Information

Failure/Incident Data

Design RecommendationsRisks & Controls

Measurement Documents

Telemetry

Publish

PublishConsume



1

2

3

Intelligent Suite


Digital Platform



CustomerExperience




Digital Platform

DataManagement

CloudPlatform

Intelligent Suite




Tuyeres Burn Out – Predictive Maintenance Use Case

Operation with burnt tuyeres decreases the efficiency

of the blast furnace. Also if burnt tuyere is not

replaced on time then this can lead to a more serious

failure of blast furnace.

To replace a tuyere the blast furnace should be

stopped for some time and this leads to economic

losses. Customer looses more than 1m € per year as

a result of unplanned blast furnace stoppage caused

by burnt tuyeres.

POC goal: to predict that some tuyere will burn out

during the next 20 days.

Using POC results: POC results can be used for

optimizing maintenance strategy for blast furnace:

the tuyeres that have a high probability to burn out

during the next 20 days are replaced in advance

during the next planned maintenance works. This

allows to decrease the number of unplanned

maintenance works. The economic effect of such

optimization was calculated.

Air tuyeres

Cast iron

Burnt tuyere

Blast furnace

Crude

Tuyere with cooling system


is a solution dedicated to help manufacturers gain valuable insights into the quality aspects of their manufacturing processes, streamline

quality management and apply predictive algorithms to reduce losses incurred due to quality issues and recommend corrective actions

Key Capabilities Predictive Quality

Improvements

Deep Dive

SAP Digital manufacturing cloud- Predictive Quality

▪ Expose manufacturing big data (IT/OT data) in the

pre-defined manufacturing semantics

▪ Intuitive workbench to Analyze & Correlate multi-tier data related to 3Ms of manufacturing

▪ 3Ms = Machine, Material, and Method

▪ Simplify predictive model building and model life

cycle management to keep pace with the operations

▪ Near real-time evaluation/scoring of predictive

models and trigger corrective actions to the right people


Functional Flow

Identify Improvement opportunity

Select IT-OT data to be analyzed

Analyze and identify product quality

influencers

Build and deploy predictive model

Proactive corrective action

Identify product

characteristics or quality KPIs which needs

improvement

Intuitively select IT-OT

data associated with the product to create

analytical data model

Guided steps to create

and manage lifecycle of predictive model

Alerts generated by

predictive model with suggested

corrective actions

Built-in analytics to

analyze influence of selected IT-OT data

Application

setup

Setup DMC for insights


SAP Connected Worker SafetySolution Overview

Highlights:

⚫ Brand new cloud product based on SCP CF

⚫ IoT Real-Time Safety Monitoring for Task

Execution

⚫ IoT Real-Time Compliance Framework

⚫ Integration with SAP ERP & SAP

EH&S(Environment, Health, and Safety

Management)

⚫ Predefined Industry Content

Accelerometer:

• speed-X

• speed-Y

• speed-Z

Environmental-sensing:• temperature

• light

• noise

• oxygen deficiency

• carbon monoxide

GPS Sensor:

• location

Bio-sensing:

• heart-rate

• body temperature….....

Hazard

Detection

• Excess lifting, pushing

• Fatigue

• Alertness

• Dehydration

• Fall/injury

• Use of safety equipment

• ………

SAP

CWS


NLMKNLMK-SAP Co-Innovation Lab: Analyze worker position to avoid leaving safe work areas

Website (EN): https://lipetsk.nlmk.com/en/media-center/press-releases/nlmk-sap-innovations-lab-pilots-3d-employee-positioning-system-/Video (EN): https://www.youtube.com/watch?time_continue=2&v=sKefPKSE0WoWebsite (RU): https://lipetsk.nlmk.com/ru/media-center/press-releases/nlmk-sap-innovations-lab-pilots-3d-employee-positioning-system-/

Video (RU): https://www.youtube.com/watch?time_continue=2&v=A7XSxXQiHcE

“Employee positioning system is one of the first projects of NLMK-

SAP Innovations Lab. This system is of current interest because not only it helps us analyze large quantities of data but also it prevents accidents at work, reduces safety risks, and improves

operational efficiency. I hope that in a short time we will move from the pilot to full-scale roll out.”Elena Demyanova, NLMK Group Vice President for IT

https://lipetsk.nlmk.com/en/media-center/press-releases/nlmk-sap-innovations-lab-pilots-3d-employee-positioning-system-/

https://www.youtube.com/watch?time_continue=2&v=sKefPKSE0Wo

https://lipetsk.nlmk.com/ru/media-center/press-releases/nlmk-sap-innovations-lab-pilots-3d-employee-positioning-system-/

https://www.youtube.com/watch?time_continue=2&v=A7XSxXQiHcE


The document flow of a Bill of Lading - simplified -

Port of Loading Port of Discharge

Seller (Shipper)

Export BankImport Bank

Buyer

(Consignee)

Shipping Line

Port Admin

Shipping Line

Trucker

B/L

B/L

B/L

B/L

B/L

B/L

Today‘s challenges:

- document shipping costs

- efforts, efficiency, transparency

- secure container release


Blockchain for ocean shipping

Port of Loading Port of Discharge

Seller (Shipper)

Forwarder

Agent

Broker

Authorities

Export Bank(s) Import Bank(s)

Forwarder

Agent

Broker

Buyer

(Consignee)

Port Admin

Carrier

Shipping Line

Authorities AuthoritiesAuthorities

Port Admin

Carrier

Shipping Line

Trucker

Trust

& Data Integrity

Digitally signed

immutable docs

Open, secure

connectivity


Content for SAP Digital Boardroom & Analytics Cloud:

Highlights Industry Mining

Financial Results:

General assessment of financial performance – based on P&L, investments, and account positions

Mining Direct Production Costs:

Benchmark direct production costs per cost category per ton of ore for all relevant locations. Simulate effects of market price changes and cost reductions on the direct costs per ton to meet

demanding efficiency targets.

Environment, Health and Safety: Analyze current status on incidents and monitor risk assessments and the implementation of

mitigating controls.

Human Resources: Human Resources: Overview of key Human Resources topics

Recruitment: Overview of recruitment related aspects

Contingent Worker, Statement of Work (SOW) and Vendor Management: Gain insights into the current contingent and statement-of-work (SOW) worker situation and costs.


Demo – Overview Page


Innovate fleet operations with SAP´s Vehicle Insights

2. Roy Hill analyzes tire sensor data, truck load,

environmental factors, and operator behavior. Results

change operator training, speed guidelines, road layouts, and

increase tire life.

1. Using SAP´s Vehicle Insights, Asia Pulp & Paper

manages both own and externally contracted truck fleet, trucks

are operated by multiple organizations, and APP rates

performance based on KPIs like on-time delivery, unloading

time, number of trips, etc.

Trucks are fitted with different GPS devices from multiple GPS

providers. SAP Vehicle Insight and Vehicle Tracking allowed

for a real-time view on a unified platform. This insight leads to

accurate rating of transportation providers.


Vale is the worldwide #1 Iron ore producer headquartered in Brazil.

• 10,000 different MRO part numbers

• 25-40% of purchase requisitions are rejected by procurement.

• 50% of those rejections are items on existing contracts

Streamline purchase requisition process

• Design thinking processing

• Use picture recognition to identify correct part number

• Direct integration to Maintenance and Procurement

Streamline purchase requisition process with image recognitionCustomer Project - Vale

Business Benefits

• Significantly higher number of purchase requisitions get approved in the first iteration

• Reduce the overall time from raising a PR until part arrives

• Better utilization of existing contracts

• Free up resources for different tasks

Inspection planning

Inspection details

3D model for part selection


Challenge

Solution

Benefits

More efficient Energy Management

Imbalance between energy control, planning and consumption

leading to $12 M losses per anno

Consumption monitoring tool serving as analytical data hub presenting

planned, consumed and current consumption data retrieved from different

sources to identify timely critical deviation of consumption.

• Timely detection of deviation in consumption to avoid high costs of

fines

• Transparency to analyze the sources of fraud or lost data to prevent

unauthorized manual data correction

• Capability for operational reaction on unexpected events and

accidents

• Analytics to reduce purchase cost for electricity

Severstal Video

Severstal Best Run Business Managing an Intelligent Enterprise - YouTube.mp4


Power Electricity Management with Actionable Insights Using SAP LeonardoCustomer Project - Severstal

Improving operational

excellence by turning

existing data into the

base for Actionable

Insights that leads to

reduced spend.

YouTube: https://youtu.be/PzTYyz6BPCk

Sapphire 2018 Video: https://events.sap.com/sapandasug/en/session/37419

Sapphire 2018 Presentation: https://assets.dm.ux.sap.com/SapphireNow /sapphirenow_orlando2018/pdf/le62850_power_electricity_management_w ith_actionable_insights_using_sap_leonardo.pdf

https://youtu.be/PzTYyz6BPCk

https://events.sap.com/sapandasug/en/session/37419

https://assets.dm.ux.sap.com/SapphireNow/sapphirenow_orlando2018/pdf/le62850_power_electricity_management_with_actionable_insights_using_sap_leonardo.pdf


Tasks

Control of actual deviation to detect

fraud, or unauthorized usage, identify

responsible person assign tasks to fix

problems

Minimal Viable Product Scope and Leonardo Solution

Need

I would need a consumption monitoring tool serving as

analytical data hub presenting planned, consumed and

current consumption data retrieved from different sources

to identify timely critical deviation of consumption.

I expect capability of comparing different indicators and

mathematical formulas based on role-based individual

KPIs, that this tools should provide detection of the source

of problems and responsible person. Having this, I can set

up alert to take an appropriate action immediately.

Fiori launchpad, dashboards, etc.

SAP Cloud Platform

Plan

Machine Learning

Mathematical calculation

Data Improvement

System of balance

and report

Smart meter control system

Plan Actual …

IoT

ML

Every 30 min

Smart meters

Selected Partner Co-Innovation

Initiatives

- K2Fly: Land & Lease Management

- RPM Global: SIC

- MineRP: Integrated Mine Planning & Execution


K2Fly’s InfoScope on Land Management

Infoscope provides a comprehensive offering to manage “legal and social license to

operate” in mining


K2Fly - SAP COIL Project on Land Management

K2Fly’s InfoScope on the SAP Ecosystem

• Comprehensive offering to manage legal and social license to operate in mining

• Allows InfoScope to fully integrate to SAP independent of customer environment

• Now listed on SAP App Center as the only tenement and land management solution


The MineRP & Partners Unified Business Planning

SolutionFully Integrated

Mining Technical

Systems

Multiple

Mine Planning

Scenarios

Multiple

Financial Planning

Scenarios

Reduce Planning

Cycle

from a Year to Days

Year Days

Unified Mine Planning

7


Overview of the solution – Integrated Mine Planning

Innovations Driving the Intelligent Enterprise in Mining ...€¦ · Georg Gradl, VP. Global Head...

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