SAP Recipe Development Best Practices for the …fm.sap.com/data/UPLOAD/files/Track 3 - Linx-AS -...

2013 Linx/AS LLC | www.linxas.com

SAP Recipe Development

Best Practices for the Chemicals Industry

STRATEGY IMPLEMENTATION ACCELERATION

Nico Bonthuys, Director, PLM Global Services Linx/AS


Introduction

SAP Recipe Development Overview

Developing a Strategy for Chemicals

Integration to SAP EHSM

Integration to Manufacturing

Implementation Recommendations

Close & Questions

AGENDA


What We Do

Our success lies in fully understanding the

people and processes that drive your

business. Only then can we apply our in-

depth technical knowledge to design and

deliver the right solution.

From streamlining product development to

improving corporate sustainability to giving

your users access to SAP when, where, and

how they want itwe make SAP run like

youve never seen.

SAP Consulting for Product Lifecycle

Management (PLM)

SAP Consulting for Environment, Health &

Safety Management (EHSM)

SAP User Experience (UEx) Consulting

Software Innovations


Over 15 years working with customers to develop PLM strategies and implement PLM solutions.

96-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SAP EH&S

RECIPE DEVELOPMENT RECIPE MANAGEMENT INTEGRATION OF FORMULATION SYSTEMS

SPECIFICATION MANAGEMENT EXPANDED USE OF EHS SPECIFICATION DATABASE

SAP PLM Process Industry Expertise

Zausner


SAP Recipe Development Overview


Recipe Development Overview

Product and Process structure definition for formulations

Equipment Requirements

Process Parameters

Integrated Specification (Substance) development and management

Fully integrated component of SAP ECC

Full change management including sophisticated alternate and version management

Multi-level formulation management

Formulation Capabilities include:

Formula Optimization

Formula aggregation, modeling, and comparison

Product Labeling**

Compliance verification

Property calculations

Key Capabilities



Recipe General Data



Recipe Formula View



Recipe Alternate Formula Views



Recipe Process Structure



Recipe Equipment Requirements



Recipe Process Parameters



Recipe Calculations: Ingredients



Recipe Calculations: Composition



Recipe Calculations: Costs


Provides a Single Source of Product Data that Drives the Downstream Processes

Documents

Packaging

Recipes

Product

Changes

Specifications

Portfolio &

Projects

SAP PLM

Single Source of

Product Data

Materials/BOMs

Achieving a Single Version of the Truth


Developing a Strategy for Chemicals

2013 Linx/AS LLC | www.linxas.com 19

Developing a PLM Strategy

How does SAP Recipe Development fit into your overall PLM strategy or program.

Identify your PLM requirements from innovation through development & commercialization.

Identify and prioritize the PLM pain points, gain opportunities and concept requirements.

Evaluate your IT landscape as-is and projected for the foreseeable future.

Evaluate the benefits of a unified solution over best of breed point solutions

Establish a strategic project roadmap that balances immediate needs with long-term PLM vision.


How does SAP Recipe Development integrate with EHSM to enable a design for compliance strategy?

Sustainable Innovation Operational Excellence

How does R&D hand over recipes to manufacturing?

Sustainable Innovation Responsive Manufacturing

Critical Integration Points


Challenges across the Product Lifecycle

ISSUE NUMBER 1 Disconnected Business Processes and Data

ISSUE NUMBER 2 Missing single source of truth

ISSUE NUMBER 3 Insufficient Sustainability Approach

Recyclin

g

Ram

p-U

p to

Pro

duction

Com

ponent

& T

ask

Sourc

ing

Product

Design

P

ort

folio

Managem

ent Project Mgmt

Manufa

ctu

ring

Main

tenance &

Serv

ice

Innovation

Managem

ent

Product

Reports

Authoring

Tools

Head of

Procurement

Head of R&D Head of

Manufacturing

Head of

Marketing

Market

Reports

Authoring

Tools Authoring

Tools Authoring

Tools

Procurement

Reports

Manufacturing

Reports Service

Reports

Com

plia

nce

Check

Com

plia

nce

Check

Head of

Service


Integration to EHSM


Common Compliances Issues Encountered in Product Development

IMPACT

Wasted effort and time dealing with data

accuracy issues.

Inefficient processes drive delays in

compliance approval, which pose a

competitive disadvantage with regard to

cost & speed to market.

Undue exposure to regulatory &

compliance risks through lack of data

consistency, data unification & process

automation.

Significant effort required to address

changes to products due to reformulation

and regulatory requirements

ISSUES

A significant amount of product data

(formulas, finished product & raw

materials) in multiple systems.

No integration to SAP /ERP systems -

from development through

commercialization.

Processes in place not efficient,

resulting in manual entry & re-entry,

data redundancy, and prone to error.

Where interfaces are created to avoid

data entry errors, potential points of

failure still exist.

High volume of new and changed

formulations drive high workload for

Product Stewardship


Re-enter data or

interface

EH&S Systems

SAP

R&D Systems

Islands of R&D, ERP, and Compliance

Re-enter data or

interface

Re-enter data or

interface

This common scenario in chemicals industries creates areas of

risk to data integrity and operational inefficiency.


Comprehensive Product Development & Innovation Approach

Continuous Product and Service Innovation: The entire organization needs to ensure a continuous stream of profitable innovation

Head of

Procurement

Head of

Engineering/R&D

Head of

Manufacturing

Head of

Marketing

Head of

Service

Recyclin

g

Ramp-Up to

Production

Embedded Product Compliance

Component &

Task Sourcing

Product

Design

P

ort

folio

Managem

ent Project Management

Manufa

ctu

ring

Main

tenance

& S

erv

ice

Innovation

Managem

ent

Product Visualization and Collaboration

Product Intelligence

Authoring Tools

Integrated Product Development: Connecting R&D with the Business

1

2 3

Embedded Product Compliance: Being sustainable starts with simply being compliant with existing regulations


SAP RD

SAP EH&S

SAP ERP

Unified Solution of Integrated SAP Modules


Recipe Transfer to Product Stewardship


SAP ERP-EHS Integrated Business Process Flow

Maintain Product Safety Data

Label Packages and Distribute MSDS

Generate MSDS/ Labels, Documents

Process Customer Order Author Documents

Product Safety Mgr.

Product Safety

Mgr.

Customer Service Fulfillment Fulfillment

SAP

EHSM

Out-of-the-box

Integration

SAP ERP

Author Documents Generate MSDS

/Labels Automatically

Automatic MSDS

Shipment

Maintain Material

Master Data

Repository

Customer Order

Processed

Maintain Product &

Substance Data

Repository

Ship Product to

Customer

Material Master

Integration

Integration with RD

Sales Order

Processing

Automatic Label

Printing

Inventory

Management

Sales and

Distribution

Compliant

MSDS

Compliant

Label

Product Safety (MSDS and Labels)


SAP ERPEHS Integrated Business Process Flow

Maintain Product

Compliance Data Track the Volume Purchase Material

Update Registration

Quantity Purchase Material

Compliance Expert Purchaser Compliance Expert Purchaser System

SAP

EHSM

Out-of-the-box

Integration

SAP ERP

Check the Volume Track the Volume Update the

Registration Quantity Check the Volume

Assign to material

master

Create Purchase

order

Block Purchase

Order

Maintain Product &

Substance Data

Repository

Purchase material

Material Master

Integration

Purchase Order

Processing

Purchase Order

Processing

Substance Volume Tracking in Purchasing

Integration with RD


Material A Material A

Component 01

Substance A

SVT Composition

Production Order

Material A | 10 kg

Production Materials are the relevant objects throughout

the Supply Chain, i.e. are sold, purchased, manufactured

Substances are relevant for

REACH and need to be tracked!

Goods Receipt

Material A | 10 kg

Goods Movement

Purchase Order

Client 4711

10 | Material A | 10 kg

20 | Material B | 12 kg

30 | Material C | 15 kg

Purchase - Import

Material A

Component 02

Chemical Compliance Integration


Significantly greater flexibility with addressing changing regulatory compliance requirements

Reduction of compliance risk

Opportunity to automate checks and processes focuses EHS staff on more value-added tasks

Single version of truth from R&D to Product Stewardship to Manufacturing

Scalability to expand to other regions of the world

Business Benefits


Integration to Manufacturing


Typical R&D-to-Manufacturing Scenario


Product Structure Synchronization (RD to ERP)

Product Structure Synchronization

for Handover to Manufacturing

Features of PSS:

Introduction of Mfg data (plant)

Controlled release process

Reconciliation of differences

Update of Mfg BOM

Synchronize

Formula mBOM Recipe BOM (plant)

R&D

R&D Structures

RM Recipe & Formulas

2 3 1

Process Manufacturing

Process Order

Requires:

Output Matl

Recipe keys:

Version

Effectivity

Usage

PP-PI*

Recipe

BOM


RD Recipes for chemical manufacturers often contain more process detail that are required in PP-PI Master Recipes

Requirement frequently raised for RD Recipe transformation to MES (DCS and/or PLC)

Standard Integration/Interface from RD does not exist

Industry standards and ISA-88 and ISA-95

ISA-88 for Batch Processing

ISA-95 for Continious Processing

Integration Methods and Standards depends on MES and Client specific chemical processes

Integration to Manufacturing (RD to MES)

Why this scenario doesnt always work for chemicals?


Integration to Manufacturing/MES


Integration to Manufacturing ERP/MES

XML/OXML/B2MML and other formats

ISA-88 - Batch Processing

ISA-95 - Continuous Processing

PI-PCS PSS


Implementation Recommendations


Establish a blueprint prototype based on industry standard processes.

SAP PLM RDS for Process Industries will provide a baseline development system.

Limited process scenario.

Can augment RDS with partner extensions to better support to-be scenario e.g.:

Linx/AS process accelerators include support for over 30 processes/sub-processes

Linx/AS functional accelerators include solutions to overcome many industry-specific requirements, such as specification workflow solution for collaborative design and approvals, data collaboration (collection), etc.

Alternative is a hosted prototype.

Either way, involve business users from the beginning.

Process/Functional Design


Think Like a Product Developer

SAP Recipe Management/Development originally developed as solution for food Industry

Need to configure/design experience for chemical industry product developer

Formula Views

Calculations

Compliance Checks

Reduce clutter and leverage custom layouts

Again, get the business involved from the beginning.

User Experience


Formula View - Adjust for Chemical specific use

User Experience


Recipe/Calculations - Adjust for Chemical specific use

User Experience


Close & Questions


HEADQUARTERS: 920 Harvest Drive

Suite 150

Blue Bell, Pennsylvania 19422

United States

phone: 610.992.9333

fax: 610.992.9338

email: [email protected]

South Africa: Verona Office Park Unit 4

Cnr Malibongwe & MacArthur Str

Robindale, 2194

South Africa

Europe: 5th Floor West

14 Fenchurch Avenue

London

EC3M 5BS

UK

www.linxas.com

Nico Bonthuys Director, PLM Global Services Linx/AS [email protected]

SAP Recipe Development Best Practices for the …fm.sap.com/data/UPLOAD/files/Track 3 - Linx-AS -...

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