mii chemicals

SAP Manufacturing Integration and Intelligence (SAP MII)

for Chemicals

SAP IBU Chemicals

September 2011

2011 SAP AG. All rights reserved. 2

Manufacturing Enterprise Challenges

and Plant Needs

Enterprise Challenges

Misaligned manufacturing enterprise planning &

manufacturing operations

processes

Poor visibility across the supply chain and manufacturing to

respond effectively to changes in

supply and demand

Inadequate manufacturing performance visibility and

decision support

Different enterprise and plant systems with data maintenance

and functional duplication,

integration, harmonization

issues


SAP Manufacturing SAP Business Suite & SAP MII Coverage

Manufacturing

Enterprise

Processes

Manufacturing

Operations

Automation

SAP MII Content

Composites

SAP Business Suite Manufacturing Offering Manufacturing Planning, Execution & Collaboration Enterprise Asset Management Quality Management Environment, Health & Safety Site Logistics (Warehousing & Inventory Mgmt.) Manufacturing Reporting / Product Cost Accounting

SAP MII (Manufacturing

Integration

& Intelligence)

SAP ME (Discrete

Industries)

Inspection/

Equipment Testing Weigh Scales Plant Historian SCADA / DCS LIMS

Shop Floor Systems

RFID Sensors Bar codes Mobile Devices

SAP NetWeaver Composition Environment

Intelligence

HMI PLC

Integration Innovation

SAP MII Infrastructure

SAP PCo


SAP Manufacturing SAP Business Suite & SAP MII Coverage

Manufacturing

Enterprise

Processes

Manufacturing

Operations

Automation

SAP MII Content

Composites

SAP Business Suite Manufacturing Offering Manufacturing Planning, Execution & Collaboration Enterprise Asset Management Quality Management Environment, Health & Safety Site Logistics (Warehousing & Inventory Mgmt.) Manufacturing Reporting / Product Cost Accounting

SAP MII (Manufacturing

Integration

& Intelligence)

SAP ME (Discrete

Industries)

Inspection/

Equipment Testing Weigh Scales Plant Historian SCADA / DCS LIMS

Shop Floor Systems

RFID Sensors Bar codes Mobile Devices

SAP NetWeaver Composition Environment

Intelligence

HMI PLC

Integration Innovation

SAP MII Infrastructure

SAP PCo

Planned Orders

Bills of Material

Production & Process

Orders

Material Inventory

Levels

Inspection Lots Data

Master Recipes

Material Details

Batch Details

Resources & Functional

Locations

Maintenance Work Order

& Notification details

Material & Order Costs

SAP MII extracts data from

SAP ERP and provides

real-time visibility and

distribution to Plant

Floor Systems of:

Production Confirmations

Process Messages

Material Receipts

Material Consumptions

Material transfers

Inspection results

recording

Quality Notifications

Batch Characteristic

recording

Work Orders & results

recording

Maintenance Notifications

SAP MIIs ability to perform transaction execution into

SAP also enables automated,

plant-level creation of:


SAP Manufacturing Integration and Intelligence

in a Nutshell

Data Services

Real-time integration of data with plant floor systems, applications and legacy systems.

Visualization Services

Extensible presentation layer presented via web pages. Family of configurable UI objects provide manufacturing views in role based dashboards or via wireless PDAs.

Business Logic Services

Flow based logic engine, enables data aggregation and transformation of disparate data. Transactions can be triggered or scheduled. Calculations, business rules, and alerts are easily developed and executed.

SAP MII Data Services

Visualization

Services Analytic Services

SAP MII is a service-based composition environment that leverages unique services for rapid development of Manufacturing Integration and Intelligence

applications across all industries served

Business Logic

Services

Web Services


Company Plant

SAP Business Suite

SAP NetWeaver

SAP MII

SAP MII in a Single Plant Context


Plants

SAP Business Suite

SAP NetWeaver

SAP MII

SAP MII

SAP MII SAP MII

SAP MII

SAP MII in a Multi-Plant Context

Company


SAP MII Integration Landscape


Scorecards / Dashboards

Site to Site Comparisons, Performance Roll Up

Quality Information Customer Service

Vendor Managed Inventory Alerts notify replenishment automatically

Wireless Integration WIP Movements, Inventory Allocations, Preventative Maintenance Activity, Environmental Data Collection

Customer Orders allocated to batches in process reduces inventory

Schedule Compliance

Shipping Optimization assuring full containers

Scrap Tracking / Waste Management

Six Sigma Initiatives data analysis to support Define / Measure Phases. Control Phase visualization screens provide feedback to team members on progress.

SAP MII has Proven to Address a Variety of Manufacturing

Centric Business Issues in Chemicals


5. Email report to Product

Manager, Disposition to

SAP QM, Close record

in QN System

2. Find Batch(es) created

to satisfy Production

Order

3. Get Historian and LIMS

data for batches, run MII

Analytics

4. If SPC Alarm it is a

Batch production

problem provide aggregate view of LOTS

& CUSTOMERS

1. Look up customer SO

from ERP & return ERP

Production Order

1

2

5

3

4

Correlation of Data from Different Sources


Quality Control with SAP MII (Using SOA)


Touch Screen Plant Data Collection (PDC) Project and

Configuration Files


SAP MII rapid-deployment solution for Batch

Manufacturing


Partner Composite: Weighing Solution


SAP MII for Manufacturing Execution

Batch System

-------------------------------------

Process Control System

PP-PI QM MM SD

SAP MII (with TH Templates)

Work Instructions (incl. Quality Management)

KPI Monitoring (Overall Equipment

Effectiveness)

EBR (Electronic Batch Record)

Process Cockpit

Logistics

Execution

System

SAP LES

Inventory

Historian

IBC

Packaging


Mobile Dashboard

Plant Manager Mobile Dashboard

The Mobile Dashboard enables a plant or production manager to

access up to the minute production information, exceptions and

Key performance indicators (KPI) such as:

Overall Equipment Effectiveness

Production Yield and Material Availability

Order versus Shipped

Quality Exceptions

Bottom line benefits: Actionable intelligence (exceptions, reports, KPIs etc.) delivered in real-time to multiple roles


Executive Dashboards provide full Visibility to key KPIs and Business Improvements

Amidst

increasing

energy costs

and volatility of

energy markets

Do you know what

your energy costs are

and where they are

spent?

Can you compare

different locations or

operations against one

another? In real time?

Most companies can

not, and even fewer

can identify and drive a

regimented approach

to understanding their

usage and resulting

costs.

Valero: $120 MILLION

in the first year in energy

savings alone.

In addition to real-time

monitoring of gas, steam, and

electric usage, the company

can model the effect of

proposed changes to specific

operations.

By optimizing parameters such

as tank temperatures and

pressures, Valero significantly

lowered its total energy

consumption.

RTS Automation

View energy consumption

across the globe with alerts

and drills down within a Facility

and to device

Get consumption transparency

of energy, water, steam, etc. in

their production.

MII connecting directly to

source devices and display the

real time data as information

back into role based

dashboards to be more efficient

and optimized.

Link to Valero video (3 min)

Link to RTA video (9 min)


SAP MII in Chemicals / Process Industries

Benefits

Global rollout improves customer responsiveness, and enhances continuous

improvement

Performance Management applications

deliver payback in production increases,

better margins and reduced energy use

Savings of $10 million in first year due to

improved supply chain processes and

visibility; implemented in 120 days

Energy management apps deliver high value

savings, while increasing sales through real

time customer commitments

Getting better, faster ways to get the

appropriate business information into the

hands of its refinery leadership team


SAP MII Differentiators

Connectors provide instant integration to plant systems

Leverages existing investments data replication not required

Provides integration and intelligence in one framework

Applications are developed very quickly time to benefit in weeks

Includes pre-built templates for integrating to SAP Business Suite

Designed for real-time manufacturing applications

Delivers transactional integration for simplifying user interaction with

ERP


Selection of SAP MII Customers in Process Industries


Dow Corning Optimizes Operational Performance to

Sharpen Competitive Advantage with SAP MII


Celanese Corporation Better Decision Support and Improved Efficiency


Eastman Chemical Significant Savings in Inventory, Procurement, and other Areas

Improved use of data will help Eastman Chemical

save more than $10 million this year and next through

improved productivity.

Jerry Hale

Vice President and Chief Information Officer

Eastman Chemical Company

Company Eastman Chemical Company

Location Kingsport, Tennessee

Industry Chemicals

Products/Services Fibers and plastics

Revenue US$7 billion in 2005

Employees 12,000

Web Site www.eastman.com

SAP Solution and

Services

SAP Manufacturing Integration and

Intelligence (SAP MII) composite

application

Challenges and Opportunities

Free employees from serving as data integrators who manually collect data from multiple systems

Achieve single version of the truth enterprise-wide based on right-time actionable data intelligence

Objectives

Integrate data from disparate systems to support rapid, consistent decision making

Provide role-based information tailored to business processes and supported by right-time view into operations

Implementation Highlights

Early management commitment

Application prototyping

User involvement and in-house skill building

Why SAP

Clear superiority of SAP MII when key criteria were evaluated against other market solutions

Support for Eastmans long-term IT goal of achieving a service-oriented architecture

Ability of SAP MII to transform data into visually rich, user-friendly, role-specific information

Benefits

Anticipated savings totaling more than US$10 million in inventory, procurement, and other areas due to improved use of data as information

Reduction in consignment inventory by 8% in the first month and by 23% as of May 2006

50% drop in emergency consignment shipments through better inventory tracking


Air Products & Chemicals Significant Reduction in Energy Costs


Sika AG - Efficient Manufacturing Operations with SAP MII


Valero - Refining Operations Through Better Visibility


Further Information

SAP MII Product Summary http://www.sap.com/usa/solutions/manufacturing/manufacturing-intelligence-

software/index.epx

Business Transformation Studies

www.sap.com/solutions/manufacturing/manufacturing-intelligence-software/brochures/index.epx

SAP Developer Network MII Wiki contains Best Practices Guides

https://www.sdn.sap.com/irj/sdn/wiki

SAP MII Samples, Templates, Examples https://www.sdn.sap.com/irj/sdn/manufacturing-tools

SAP MII Forum https://www.sdn.sap.com/irj/sdn/forum?forumID=237

Partner Playbook

https://websmp107.sap-ag.de/partnerportal/partnerplaybooks

E Learning - SAP xApp https://www.sdn.sap.com/irj/scn/wiki?path=/display/xMII/Learning%252bMap


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