Manufacturing

Innovation

© 2013 SAP AG. All rights reserved. 2

SAP and Manufacturing. . .

97% of the discrete manufacturers in the

Forbes Global 2000 are SAP customers.

95% of the aerospace and defense

companies in the Forbes Global 2000 are

SAP customers.

94% of the automotive companies

in the Forbes Global 2000 are SAP

customers.

94% of the heavy equipment

manufacturers in the Forbes Global

2000 are SAP customers.

100% of the recreation product

producers in the Forbes Global 2000 are

SAP customers.

So to be successful you need to operate…

FASTER

Drives “real time” fact based planning and

decision making

Drives Dynamic business models to serve market

demands

SMARTER SIMPLER

Drives need for Flexible, Mobile and Informed

employees

World Class Operations Excellence ….is essential to be competitive

86% identified superior process

improvement as #1 strategy for

success for next five years

91% Overall Equipment Effectiveness OEE

94% On-time and Complete Shipments

88% Successful New Product Introductions

+ 3% Operating Margin vs Corporate Plan

Source: Manufacturing Operations Management Benchmark Aberdeen

© 2013 SAP AG. All rights reserved. 10

Stock Symbol: HOG

“Sustainable Competitive Advantage” Warren Buffett

• Transform Manufacturing to Counter Weak Economic Conditions

• Customer Intimacy & Agile Manufacturing

Harley-Davidson, Inc.

NYSE: HOG - Feb 20 1:09 PM ET

63.27+0.17 (0.27%)

© 2013 SAP AG. All rights reserved. 11

Create Customer Intimacy – build your very own.

Revamping our entire

approach to manufacturing

Flexible production system

Build based on seasonality

Build multiple models/families on same line

Factory Customization

Deliver the right motorcycle to the right customer at the right time globally

Manufacturing Transformation (Responsive Manufacturing)

© 2013 SAP AG. All rights reserved. 13

Top Manufacturing Concepts.

APO Production

Planning & Process

Control Data Collection

Nonconformance

Management Real-time Change

Production

End-to-End

Traceability

© 2013 SAP AG. All rights reserved. 14

Concepts in Manufacturing for Automotive Sequenced Orders

Orders released by sequence

Based on run rules, orders must be processed in sequence based on the calculated schedule

Order sequence coming in from APO must be enforced in MES when releasing the orders to the shop floor for assembly

Day 1

Model Mix

Production line 1

B) At least two FatBoys

in sequence

A) No two

in a sequence

Day 2

© 2013 SAP AG. All rights reserved. 15

Harley-Davidson Video

http://www.youtube.com/watch?feature=player_detailpage&v=KNIZjP7qDzM

Execute:

© 2013 SAP AG. All rights reserved. 17

Maintain Asset Alert: Assembly Line430 Weld Cell “C”

TECO- Complete

CAPA: Weld Tip Replaced.

STATE: RUNNING SHIFT MTBF: 2:46:00

SHIFT MTTR: 13:03

© 2013 SAP AG. All rights reserved. 18

© 2013 SAP AG. All rights reserved. 19 © 2013 SAP AG. All rights reserved. 19

Efficiency Real-Time

Be successful

Innovation

Accelerate innovation

Enable real-time insight

Manufacture efficiently, profitably, and sustainably

THANK YOU!