SAP S/4HANA for Manufacturing

Value Drivers and Solution EnablersReduce Total Manufacturing Costs

Use BOM data to create a production version, eliminating confusion overcorrect product data. Streamline production through integration with otherresource planning functionality, such as quality management andcontrolling. Planning functionality in SAP S/4HANA supports the plant-and MRP- area levels instead of the storage-location level, for greatersimplicity. Separate planning of every subcontractor is possible withouthaving to create an MRP-area-specific material master record.

Reduce Manufacturing Cycle Time

Accelerate performance of daily manufacturing activities, thanks topowerful in-memory data processing. Simplified 2-way integration withsimulation and planning tools - link strategic plan all the way to executionwithout the delay / latency of moving between systems and different costsmodels etc. Speed up back flushing process in high volume productionscenario for inventory updates, as aggregate tables have been dropped.

Reduce Scrap Value

Minimize the risk of creating products with the wrong parts. Enable timelyresponses to exceptions with improved visibility into real-time quality datathroughout the product lifecycle.

ProductionOrchestration &Execution

! Production control

! Productionexecution

! Basicsubcontracting

! Basic externalprocessing

! Repetitivemanufacturing

! Kanban

! JIT outbound

SAP S/4HANA FOR MANUFACTURING

Enabling just-in-time manufacturing

Largemanufacturer anddistributor ofconsumerelectronics

" Multi-billiondesigner,manufacturerand distributorof personalhealth devices

" S/4HANA, HEC,SAP Services forimplementation

" Replacement ofNetSuite

We looked atvarious vendors butquickly understoodthat SAP was theright platform toenable our growth

VP InformationTechnology

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ProductDesign

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Manufacturing%

# Overseasproduction

# Batch order

# Penalties

Retail

$100MThe potential annualcost for missingmanufacturingdeadlines

∠ Penalties from retailers can run at 3% of the order perweek

∠ Manufacturing schedule has to be synched with ordersby time and quantity

SAP S/4HANA FOR MANUFACTURING

Vectus Industries drastically lowers cost with S/4HANA

" India's leadingand fastestgrowing pipe andwater storagesolution

" Live onS/4HANA in 4months

" 28 locations inIndia, 24 of themlive in May 2016;4 othersunderway (phase2)

There is atremendousimprovement inoperating efficiency.Other customersshould go forS/4HANA.

Manish Sinha, Headof IT at Vectus

Industries

Key benefits of S/4HANA

6 hoursGain per daily productivityfor users: before S/4HANAthey routinely worked 14hours a day due to serverdowntime and manualprocessing

15 min % 3minAverage processing time perinvoice with 10-15 items

15% lowercostsProduction and operatingcosts with higherautomation and visibilityinto costs vs. price

4 % hoursServer downtime and noserver restart neededanymore

600 invoicesProcessed per day

0DiscrepancyPrior to S/4HANAimplementation, 2 systemcould produce results asdifferent at 2 tons of scrapat the entry vs. 18 tons atthe plant. With S/4HANA,discrepancies are eliminated

SAP S/4HANA FOR MANUFACTURING

Airbus DS Optronics: developing eagle vision intocontrolling processes

Airbus DSOptronics

Manufacturerof cutting edgeoptoelectronicalsystems

Painpoints

∠ Actual orders and sales forecasts 2 daysold

∠ Run as batch processes in the legacysystem

∠ Controlling has obsolete data and cannotact as business partner

∠ Managers have limited access to real-timedata anywhere on any device

SAP S/4HANA provides the possibility to doreporting in real-time using in-memory technology.We are excited about the enormous potential.

Jochen Scheuerer, Director Information Technology,Airbus DS Optronics

We produce optronics and optical systems that are atthe limits of physical possibilities. This is alsoreflected in our IT... all information including keyfigures and sales forecasts are available at the touchof a button and this is only possible with S/4HANA

Tobias Tenbrink, Head of Controlling / Accounting,Airbus DS Optronics