ASUG Executive Exchange for Discrete Industry Sector

February 3, 2021

David Wascom SVP, Executive Programs, ASUGJames Lafever Sr. SAP Business Applications Analyst, Milliken

Rakesh Gandhi VP, NA Industry 4.Now Hubs, SAP AmericasDavid Dreyer GTM Lead, NA Industry 4.Now COE, SAP AmericasSujit Hemachandran, Sr Industry 4.0 Digital Transformation Lead, Industry 4.Now Hubs, SAP AmericasBen Hughes Industry 4.0 Digital Transformation and Lead Architect, Industry 4.Now Hubs, SAP AmericasVivekananda Panigrahy Industry 4.0 Digital Technology Lead, Industry 4.Now Hubs, , SAP AmericasMatt Ruff Industry 4.0 Digital Transformation Services, , SAP Americas

ASUG Executive Exchangefor Discrete Industry Sector

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q Welcome and Kick-Off

q Industry 4.Now Overview

q Milliken’s Industry 4.0 Journey

q SAP Industry 4.Now Deep Dive on Outcomes

q Experience Industry 4.Now

q Key Take-Aways/ Q&A

Today’s Agenda


Redundant, costly suppliers

Reactive fulfillment planning

Shift and workforce expansion

Source multiple suppliers

Expensive expedited delivery

Unplanned maintenance

A resilient supply chainA reactive supply chainBalance global and local

suppliersDisrupted supply

Continuous cross-functionalplanningReactive PO planningHighly variable demand

Industry 4.0 processdigitalization

Shift and workplaceexpansionInterrupted manufacturing

Inventory optimizationExtensive inventoryexpansionInventory shortages

Adaptive logistics carriernetwork

Increased delivery optionsand higher expedited costsDelayed shipments

Predictive maintenanceand service

Emergency maintenanceand repair dispatchAsset breakdowns

Digitalization – the Pathway to Resiliency


Digital Supply Chain Design to OperateAchieving a Resilient Supply Chain

The Digital Supply Chain that isintegrated from design to operateacts more like a network.

Visibility, communication, planning,analysis, and execution areorchestrated across the criticaloperational phases based on real-time inputs and requirements.


Live Enterprise: Digital Board Room to Digital Operations Center

Shop Floor to Top Floor(Inverse Historian)Supply Chain Control

towerFinancials

Digital Operations CenterDigital Board Room

Logistics Control Tower


Manufacturing Operations View –Industry 4.NowProcess View – Design to Operate (D2O)

Winning Strategy

Copyright © 2019 Milliken & Company. All rights reserved | 8

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SAP MII - Manufacturing Integration & Intelligence

Extensible manufacturing platform allowing rapid adaption to any manufacturing process

Integration: Provide interoperability (in)between Shop Floor solutions and enterprise ERP (PP,PM, MM, QM)

Intelligence: Visualize data from any of above sources to provide KPIs.Provide simple and efficient local User Interface and Dashboards

Innovation: Powerful SOA-enabled business logic to cover for customer specific processes aroundPlanning, Execution, Maintenance and Quality

• Allows Fast prototyping to achieve fast ROI• Broad and extensive Partner Network and Customer Community• Applicable to all Manufacturing Industries and Utilities


EnvironmentalBuilding Management

PLAN MAKE DELIVER

ERP SCM PLM

LIMS/Inspection/Equipment Testing

MESSCADA/HMI

Plant DataCollection

WirelessIntegration

Plant Historian

Plant DB

DCS/PLCvia OPC

INTEGRATION

Distributor/Customers

Supplier/ContractManufacturer

PerformanceManagement Worker UIs

Plant Connectivity

ManufacturingAnalytics ERP Business

ProcessSimplification

Business Logic ServicesVisualization

Quality EnginePlant Information Catalog

Data Services

Manufacturing Integration & Intelligence

SAPNetweaverJAVA

Message ServiceManufacturing Data ObjectsKPI & Alert Framework

OEE Management

SAP MII - Manufacturing Integration & Intelligence


SAP MII OEE – Standard Content

Rich Standard Content on top of MII for simple order execution along with calculating of keyOEE KPIs.

Bi-Direction top-floor to shop floor integration. Ability to download production/process order,collect production, rework, waste, standard value key, raw material etc. and post it back to ERPsystem.

Capture the root causes for downtime, efficiency loss and poor quality. Facilitates analysis andcorrective action at the plant level and across plants

Analysis real time information on OEE, Availability, Performance and Quality on varioushierarchy levels along with business context

Operator friendly UI design Responsive and device friendly UI, State-of-the-art technologies

Automation Support of Green field and Brown field factories Support of Manual, Semi-automatic and Automatic Production environment


SAP OEE – Overall Equipment Effectiveness


Milliken’s Journey

July – Sept 2017 – Proof of Concept Project – Integrator 1• Custom built application using MII toolset

December 2017 – Gillespie plant asked to run POC application in production• Engaged remote consultants to “fix” code

April 2019 – RFQ – Implementation at GillespieApril 2019 – SAP Manufacturing presentations – New York and RMCMay 2019 – Blueprint Workshop – Integrator 2

• Proposed custom solution

July 2019 – Signed SOW with SAP Consulting – Standard OEE ImplementationAugust 2019 – First full-time consultant engagedOctober & November 2019 – Go Live with Core EquipmentJanuary 2021 – S/4 ConversionFebruary 2021 – Go-Live with New Equipment

Proof of Concept22 Months

Implementation5 Months for Core Equipment


SAP’s Strategy for Industry 4.0SAP Industry 4.Now approach addresses three business priorities with one leading strategy

Center on Customersso their input and preferences

are the source of all you do

Reinvent Productionusing intelligent assets

and processes that dynamicallyadapt to production priorities and

deliver customization at scale

Connect the Entire Companyorchestrating sales, service,and logistics with productionto transform how you work

Move digitalization and Industry 4.0 from factory-focused initiatives to a company-wide, competition-beatingbusiness strategy. Combine manufacturing automation with enterprise business execution.

1 2 3


Industry 4.0 – by SAPLeveraging Intelligent Enterprise Technologies and Applications

Customer and Employee Experience

Sales Service& Support

Marketing

Front Office

HR

IT

Procure& Finance

BackOffice

Production& Logistics

Supply Chain

The Intelligent Enterprise

Intelligent ProductIntelligent Factory

Intelligent AssetsEmpowered People

Business Network

CXDesign to Operate S/4HANAIndustry Cloud Sustainability

TechnologyEnablersIoT Cloud

& Edge

Intelligent Decisions

Data Driven Processes

IT/OT Integration

by SAP


OperateProduct Designand Engineering

Manufactureand Assemble

Deliver

Importance of Digital TwinIt is all about the lifecycle and data of One Product

Design Manufacture Deliver IOperate

Engineering Model(s)and BOM presented as

Digital Twin

Manufacture andAssemble Product as

Physical Twin

Product Deliverywith Design and

Manufacturing Definition

Service,Maintenance and

Operational History


The Digital Thread that Ties Everything TogetherWhere technology and the entire product lifecycle meet

A single digital thread that integrates all the real-time information, feedback, performance,and data on a product from inception to sunset. Enabling processes to evolve from reactive to predictive.

SAP EdgeServices

SAP Industry4.Now/ SAP IoT


BusinessNetworks5

Enterprise &Supply Chain4

Industry 4.0Operations3

Factory/Plant

Sensing &Control

Industry 4.0Monitoring

PhysicalThings

2

1

0

Discrete Factories & Process Plants

Digital Supply Chain

Manufacturing Operations Management

Automation, CNC, IO, PLC, …(physical shop floor)

Machines, Devices, Sensors, Tools, Shelves, KanbanBoxes, Workers, Forklifts, Tags, AGVs, etc.

Manufacturing, Engineering, Process & Simulation

Inventory Manufacturing Quality

Maintenance EnvironmentHealth, Safety

3rd PartyExtensions

Horizontal Integration

Vert

ical

Inte

grat

ion

Key Differentiators

From many digital twinsTo one digital lifecycle thread

From siloed applicationsTo standardized digitization

From process dataTo data driven processes

From deterministic processesTo predictive and prescriptive processes

From managed on premiseTo managed EDGE

ECC S/4HANA

Target Solution Blueprint – Industry 4.NowLeveraging SAP Intelligent Enterprise


Intelligent Factory - Let’s Experience Live


Showcase - Industrial Partnerships

Double-seated valve

Torque driver andtightening technology

Warehouse

RoboticsWeighing scales discrete

Sensors

Automation technology

Gesture control

Bottling bock

Brown field connectivity to cloud

Weighing scales processSensor button technology

Grippers

Digital 3D environments

Inhouse Geotracking

OPC UA empowerment

MIR AGV

Industry 4.0 Torque driver

Robotics


Use Cases covered in SAP Industry 4.Now ShowcaseDiscrete Industries – Intelligent Factory

q Real-time shop floor toTop floor analytics

q Digital OperationsCenter

q Digital Thread/One PaneGlass – Manufacturing &Maintenance

q Personalization

q Lot Size of One

q “As-built” Genealogy

q Production Order Scheduling- Production planner down toone day horizon

q Inbuilt Quality Managementw/ Visual Inspection

q Lights out Factory

q Modular Manufacturing(Matrix Production)

q Automation of ProductionMaterial Flow - AutomatedWarehouse

q Dynamic routing

q Digital twin of finalmanufactured equipment

Powered by SAP Industry 4.Now

Typical Industries

q IMC

q Automotive

q High-Tech

q A&D

q ….other hybrid process/discrete manufacturerse.g. Building materials, etc.


10% reduction in operating costs.

What you just Experienced drives the Business Outcomes and Values

SAP Performance Benchmarking, n = 203


State-of-the-art business processes

Connected manufacturing

Top floor to shop floor visibility

Faster more efficient execution

Advanced analytics

40% increasing in operating efficiency.

SAP Performance Benchmarking insights pertain to year 2017 and run on overall data collected in the last 5 years. Number of data points analyzed for every insight is provided above.The insight states average performance difference between organizations with high and low maturity on the following best practice.

Situational Awareness160% increase in output.


Next Steps to Support Your Journey and Adoption


State-of-the-art showcases

Experience Explore Learn Move

Focused deep-dive Industry 4.Nowworkshops

Online interactive Learning Journeyguides for Experts and Executives Support of pilot projects*

Up-to-date demo scenarios Virtual Interaction with Experts Innovation Service Packages forIndustry 4.Now*

*SAP® Services and Support offerings provided at an additional cost

Industry 4.Now – Drive Adoption

Digital Experience & Key Take-Aways

https://www.sap.com/industry4now-experience

https://www.sap.com/industry4now-experience


Industry 4.Now Online

Industry 4.0 on SAP.COM LINK

Industry 4.0 Strategy Whitepaper [Link]

Industry 4.Now Brochure LINK

Industry 4.Now Hub Brochure [Link]

Videos for D2O and D2C Showcase [Link]

Experience Digitally [Link]

Industry 4.Now Roadmap [Link]

https://www.sap.com/products/digital-supply-chain/industry-4-0.html

https://www.sap.com/documents/2019/12/7eb945d8-777d-0010-87a3-c30de2ffd8ff.html

https://www.sap.com/documents/2020/05/98ab7344-957d-0010-87a3-c30de2ffd8ff.html

https://www.sap.com/documents/2020/06/723aa7cb-9e7d-0010-87a3-c30de2ffd8ff.html

http://www.youtube.com/sapvideomom

https://www.sap.com/dmc/exp/2020-07-design-to-operate

https://roadmaps.cfapps.eu10.hana.ondemand.com/


Key Take-Aways / Q&A

q Supports innovation to meet shop-floor needs and productivity

outcomes

q Enable End to End Digital Thread with true IT and OT

interoperability with an enterprise grade Industry 4.0 solutions

q Time to Value with one digital platform that can scale to multiple

plants and provides full shop-floor to top floor visibility

q Standard based connectivity and Interoperability with diverse

OEMs hardware and solutions

q Support hybrid deployment and builds on top of existing

investments and builds on top

Thank you.Rakesh Gandhi [email protected] Dreyer [email protected] Hemachandran [email protected] Hughes [email protected] Panigrahy [email protected] Ruff [email protected]

mailto:[email protected]






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ASUG Executive Exchange for Discrete Industry Sector

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