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A Strategy for Enterprise Integration

Plant Centric : . A Strategy for Enterprise Integration. Richard M. Crossan, Jr. SAP America, Inc. Process Sector. OSI Software Users Group Meeting March 16, 1999. Topics. Plant Centric Strategy Why is it needed? Enterprise Integration Accurate portrayal of R/3 in manufacturing

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A Strategy for Enterprise Integration

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  1. Plant Centric: A Strategy for Enterprise Integration Richard M. Crossan, Jr.SAP America, Inc.Process Sector OSI Software Users Group Meeting March 16, 1999

  2. Topics • Plant Centric Strategy • Why is it needed? • Enterprise Integration • Accurate portrayal of R/3 in manufacturing • What is the SAP Plant Centric Strategy? • R/3 in Manufacturing Operations • Components & Positioning • Partners & Interfaces • User-Centric Information SAP America - Process Sector - 2

  3. Business Drivers for Integration • Customer Responsiveness • Physical Plant & Equipment Responsiveness • Human Resources Responsiveness • Global Market Responsiveness • Teaming as a Core Competency • Responsive Practices & Culture Next-Generation Manufacturing Project SAP America - Process Sector - 3

  4. Three Reasons to Integrate: • Improve performance of the supply chain: • enterprise wide business processes • accurate planning and scheduling • responsive execution • status of the order • Improve performance of the production plant: • visibility of enterprise business processes • Combined platform for agility: • plant - supply chain collaboration • New Product Development, Customer service... SAP America - Process Sector - 4

  5. Business Drivers Supply Chain link Production link Highest quality (Brand image) Customer order specification. Reduced variability Delivered product cost Lowest cost Eliminated waste Optimized supply chain costs Optimized production costs Highest margins Increased “ agility ” (Product availability) Delivery to schedule Produce to schedule Effective New Product Development Time to first packaged batch in control Time to peak sales Fulfilled order / demand satisfied customers Expanded customer base Reduced costs of compliance Conformance to cGMP,HACCP ,SOP Regulatory compliance Sustainable Competitive Advantages Organizational effectiveness Interdependencies Highlight Key Roles! Produce to specification Coordination, optimization & synchronization SAP America - Process Sector - 5

  6. Why is an SAP Plant Centric Strategy needed? • To address the changing demands on plant systems: “...manufacturing must shift from the center of the enterprise to become a node in the network of activities that serves the end customer. “ Gartner Group • To address the integration demands within the business due to changing role of manufacturing • To address incorrect perceptions of R/3 capabilities in manufacturing • To clarify R/3 functions with respect to Manufacturing Execution System functions • To help customers extend the benefits of R/3 into manufacturing SAP America - Process Sector - 6

  7. Misperceptions of R/3 in Manufacturing • R/3: More than Financials, Order Entry & Human Resources • No need to ‘rip out’ your PLCs, DCSs, SCADAs or LIMSs • Clarification of “Realtime” • Minutes & Seconds vs. Sub-second • Clarification of “Execution” • Product vs. Processes • Clarification of “Processes” • Business Workflow vs. Manufacturing SAP America - Process Sector - 8

  8. R/3 and Plant Operations • R/3 provides a much of the infrastructure needed for the flow of the information between business operations and plant systems • However: • SAP Partners - their systems & skills - play a critical role in the pursuit of integration • SAP customers considering the roll-out of R/3 into plants must ensure that the information models created for their business processes can be effectively utilized at the plant level. SAP America - Process Sector - 9

  9. What is SAP Plant Centric?An SAP strategy for business to manufacturing integration • Elements: • Partner Initiatives & Alliances • Consulting Services • Solution Offerings • Product Development Enhancements • Plant Centric is intended to provide focus, not to create new mechanisms SAP America - Process Sector - 10

  10. Plant Centric and SAP programs • Plant Centric is intended to provide focus, not to create new mechanisms • Existing partner programs will be utilized • SAP Process Industry organization will focus on partners which pursue Plant Centric projects • Activities will be consistent with SAP vertical industry directions SAP America - Process Sector - 15

  11. Plant Centric Responsibilities • SAP: Improve the level of manufacturing-oriented information about R/3 • Customers: Include Enterprise-wide manufacturing automation strategies early in the R/3 implementation cycle • Partners: • Global & National Consultants: • R/3 + manufacturing systems skills • Plant Systems Providers: • Interfaces, consultant & integrator relationships • Plant Systems Integrators: • Consultant relationships SAP America - Process Sector - 17

  12. R/3 in Manufacturing Operations

  13. ERP ERP MES MES Control Control Delivery of MES Functions Original Model Delivery of Functions SAP America - Process Sector - 19

  14. R/3 & MES • Does SAP have an MES component? “SAP provides many of the MES level functions throughout the components of R/3. Some of the MES functions within the MESA model must be provided in conjunction with SAP partners. Only a discussion on the specific functions of interest can provide an answer to the question.” SAP America - Process Sector - 20

  15. R/3 R/3 Coverage within MESA Model MES: Manufacturing Execution Systems SSM: Sales & Service Management SCM: Supply Chain Management ERP: Enterprise Resource Planning P/PE: Product and Process Engineering Controls: PLC, DCS, line & machine control MESA White Paper #6 SAP America - Process Sector - 21

  16. Plant CentricPartners, Interfaces and Plant Systems

  17. “Critical Nature of Partners” • Strong Customer Relationships at Plants • Long term involvement • Regional resources • Customer Operations knowledge • Unique skills differentiated by industry & application areas • Partners are First Point of Contact for plants “Plants don’t call SAP” SAP America - Process Sector - 24

  18. Partner Programs & Interfaces • CSP: Complementary Software Program • Certified • ISV: Independent Software Vendor • Global Implementation Partner • National Implementation Partner • Interfaces • BAPI: Business Application Programming Interface • Standard Interfaces SAP America - Process Sector - 25

  19. CSP “Eco-System” CSP Members Development Partners BAPI Certified BAPI Validated BAPI Certification in process BAPI Validation in process Qualified ISVs CSP Participants CSP Applicants SAP America - Process Sector - 26

  20. Plant Centric Components • Production Planning (PP) • Production Planning - Process Industries (PP-PI) • Process Flow Scheduler (PFS) • Environmental Health & Safety(EHS) • Materials Management(MM) • Quality Management(QM) • Plant Maintenance(PM) • Warehouse Management(WM) • Controlling(CO) • Human Resources(HR) SAP America - Process Sector - 27

  21. Plant Centric Interfaces • PI- PCS SCADA & Process Control Systems Weighing Systems • QM- IDI Laboratory Management Systems • PP- DMS Document Management • MM- MOB Data Collection • PP- POI Process Optimization Interface • PP- PDC Plant Data Collection • PM - PCS Plant Equipment • PP- CAD Computer Aided Design • WM- LSR Warehouse Control Units • BAPI Business API SAP America - Process Sector - 29

  22. CSP Certified • PI-PCS OSI Software - Hewlett-Packard - Digital Equipment - EnvisionIt - Foxboro - AspenTech - Hartmann & Braun - Siemens AG - Yokagowa - IBM - Mettler-Toledo - Elsag Bailey - Sequencia • QM- IDILab Systems - Labware - HP - Beckman - Perkin Elmer - ... • PP-DMS Documentum - Siemens AG - Interleaf • MM-MOBIntermec - Siemens - Teklogix - EPIC - Software Consulting Partners - CIM Vision - Norand - ... • OTHERS... SAP America - Process Sector - 30

  23. Independent Software Vendors • Intellution (Emerson) • Wonderware (Siebe) • Rockwell Automation • POMS • Gensym • ...Others • ABB - Elsag-Bailey • Siebe: Simulation Sciences / Biles & Associates • Fisher-Rosemount • Moore Products • Honeywell • GE Fanuc SAP America - Process Sector - 31

  24. Implementation Partners • Plant Specific • Honeywell • Foxboro • Consulting Partners(Manufacturing focus) Deloitte Consulting / ICSCap Gemini KPMG Ernst & Young Origin IBM Price Waterhouse / Coopers Hatch Associates IDS Prof. Scheer Andersen Consulting Osprey Systems Others … • SAP Consulting • Local Systems Integrators SAP America - Process Sector - 32

  25. Business Object, with BAPIs and Associated Function Modules RFC Library COM/DCOM, CORBA, Java, ActiveX, ... SAP America - Process Sector - 34

  26. Customer “Plant Implementation Puzzle” Enterprise SAP Implementation Global Implementation Partners Corporate Driven Manufacturing Implementation Partners SAP Plant Driven Local Integrators Plant systems Plant Centric helps with this puzzle ! SAP America - Process Sector - 35

  27. User - Centric Information

  28. Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Technical View: Components APO BW PM PP MM PP-PI QM SAP America - Process Sector - 37

  29. Function Function Function Function Function Function User-Centric View: Scenarios MM PM PP-PI QM Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Function Process Operator Cockpit Function Function Function User Scenario Function Function SAP America - Process Sector - 38

  30. (Plan) (Source) (Deliver) Coordinate Ready Analyze Execute Process New Model of Manufacturing Business Processes R E P A C Model Plant-Centric: to make the manufacturing plant a responsive part of the supply chain! SAP America - Process Sector - 39

  31. Ready R E P A C: Ready Coverage • Create, enhance, or make ready production processes • Transforms products designs of specifications to introduce new product to plant Coordinate Analyze Execute Process SAP America - Process Sector - 40

  32. R E P A C: „Execute“ Coverage • Executes orders or production schedules for products • Sets up PROCESS to make a specific product Coordinate Ready Analyze Execute Process SAP America - Process Sector - 41

  33. R E P A C: „Process“ Coverage • Processes the plant uses to physically produce many products • Automate and control of the process Coordinate Ready Analyze Execute Process SAP America - Process Sector - 42

  34. R E P A C: „Analyze“ Coverage • Production performance, product capability, regulatory compliance • Combines data from multiple components (routine & add hoc) • Assemble data for ERP, SCM, customers and suppliers Coordinate Ready Analyze Execute Process SAP America - Process Sector - 43

  35. R E P A C: „Coordinate“ Coverage • Coordinate plant operations with enterprise and supply chain • Optimize plant activities to meet production requirements (demand) Coordinate Ready Analyze Execute Process SAP America - Process Sector - 44

  36. Plant Centric Views • User/Audience Focus • Industry Independence • Augment Existing “Maps” • Delivery Vehicle for Plant Centric Information • Clarity with respect to USE instead of FUNCTION • Information from development, IBU, Industry Sectors and partners Plant Centric Views SAP America - Process Sector - 45

  37. Plant Centric Activities • IMS Expo: Executive Committee & Exhibitor • ISA SP95: Enterprise Integration Standard • OPC: OLE for Process Control • Process Industry SAP Users Group (PISUG) - Plant Centric Task Group • Interkama 1999 • S88 - General & Site Recipe Definition • Plant Centric Conference - Frankfurt • March 29-30, 1999 SAP America - Process Sector - 46

  38. International Manufacturing Software (IMS) Expo • Orlando, Florida - April 26-29, 1999 • Enterprise Integration Focus • Manufacturing level software • Cross industry • IT & Manufacturing audience • Solutions & Partnership emphasis • WWW.IMS-EXPO.ORG SAP America - Process Sector - 47

  39. Summary • The Plant Centric strategy assists with the issues of business to plant operations integration. • R/3 provides the information backbone for enterprise integration • R/3 has the broad capabilities to manage manufacturing businesses • R/3 interfaces, partner products and services complete the “puzzle” down to the plant floor. SAP America - Process Sector - 48

  40. for the Plant PLANT CENTRIC “... intended to transcend the debates on product capabilities and focus on the responsibilities for executing the solution.” SAP America - Process Sector - 49

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