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26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Software Solutions with System
confidential, www.systemagmbh.de
05.05.2011, Copyright © SYSTEMA
SYSTEMA Dresden, Germany
IT Standardization with a SAP ME Template Strategy at a Global Automotive Supplier
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Expected Benefits from Standardization
Reduce Cost ▪ BizProcess cost ▪ IT cost (TCO)
Agility and Flexibility for reasonable cost with minimized risk ▪ Fast changes driven by customer demands and new BizModels ▪ Ability to implement innovations (Product, Technology, Automation, new
BizProcesses(B2B)) ▪ Smart adaptability to Market Up and Downs ▪ Increasing competition drives the need for at least fast adaption ▪ Ability to execute mergers/acquisitions, carve outs, new fabs, subcons
Fulfillment of Legal requirements ▪ Commercial processes (e.g. SOX compliance) ▪ Quality standards (FDA, ISO,….) ▪ Product liability, traceability
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Expected Benefits from Standardization
Harmonization and standardization of masterdata ▪ Central or well controlled decentral Masterdata Management ▪ Standard changemgmt ▪ Standard distribution capabilities (internally and with BizPartners) ▪ Standard maintenance, plausibility checks and editing capabilities
Harmonized and standardized reporting ▪ Constistent , complete and actual view on Enterprise KPI´s:
– Quality – Logistics – Production cost – Manufacturing KPI´s
▪ Standard capabilites to report, analyse, compare actuals to planned figures
▪ Consistent definitions of KPI´s and PI´s
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Expected Benefits from Standardization
IT specific expectations ▪ Reduce TCO of IT Systems ▪ Reduce implementation cost for changes and adaptions ▪ Reduce risk of migration to new or extended IT capabilities ▪ Minimize time, effort and cost of migration and change projects ▪ Improve „Performance of IT Projects“
– Planability: ▪ Time ▪ Cost
– Functionality ▪ Useability ▪ Performance ▪ Integration
– Quality ▪ Minimize Errors, first time right expectation ▪ Standard Training for users and IT people
– Project cost
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Subject Matters to be considered
Standardization of Processes ▪ Commercial ▪ Logistic ▪ Manufacturing ▪ Masterdata ▪ Quality ▪ ……
Approach: ▪ Process design as reusable as possible (limited adaption via Config ok))
– At different Locations of the Enterprise – At different Shop Floors – For Subcons where applicable (contract issues, subcon capabilities,..) – For all Products and Technologies – For all Customers – For all Vendors
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Subject Matters to be considered
Standardization of Application SW Components ▪ ERP Systems ▪ Masterdata Management Systems ▪ QM Systems ▪ Planning and Logistic Systems ▪ BI , Reporting, Analytical Systems ▪ Manufacturing Execution Systems ▪ Equipment Integration Platform ▪ Enterprise and beyond (B2B) Application Integration ▪ Technology Stacks Target: Minimize number of SW vendors and Software Components Reduced complexity reduces cost and increases flexibility
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Subject Matters to be considered
Standardization of IT Systemlandscape
▪ One Technology stack for as many as possible SW Components
– OS – Virtualization environments – Databases – Backup, Archive – Deployment processes – Runtime environments – Monitoring tools – High availability and scaleabilty implementation
▪ Cluster, Virtualization, Multiple Instances,.. – Communication and Integration Platforms
▪ B2B, Message Bus, WebService Infrastructure, Eventmgmt,.. – Program Development and deployment environments
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Subject Matters to be considered
Standardization on Equipment level
▪ State Models
▪ Command interface – Setup, Start-, Stop, release,…. Scenarios
▪ Event interface
– Minimum set of Standard events
▪ Data Collection capability – Machine Data – General Data (Qty,Input Batch No, actual LotNo. , ….
▪ Low Level Interface Specification
– Protocols – Dynamic interaction scenarios
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Barriers and challenges for executing Standardization
Different Cultures at different locations Not invented here Syndrom….. Historical reasons ▪ Enterprise wide Standard Processes are not defined ▪ “Organic growth” of local Processes and Landscapes. ▪ Enterprise wide Standard Processes are defined but not executed ▪ Existing IT Landscape is not homogeneous
– Hardware – Technology stack – Application Software components – ……
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Barriers and challenges for executing Standardization
Equipment landscape not homogeneous ▪ Old Equipment with restricted technical capabilities ▪ Different Equipment vendors with different design philosophies ▪ Variety of Interface Protocols (Standard and Custom specific)
Migration to a higher degree of standardization could be a risk ▪ Unreliable estimations of cost, effort, timeline,….. ▪ Risk of interrupting running processes ▪ BizCase is needed; Sometimes hard to show ▪ Long lasting, complex multiphase project with a lot of different
stakeholders => risk to fail
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Improvement Potentials using Standard Software
Commodity processes highly configurable using SAP ERP
▪ Candidates
– Finance and Accounting – HR – Ordermgmt – Warehouse mgmt – CRM – …….
▪ Continous improvement of standard solutions driven by
– Customers – Market Trends – New BizModels – Legal requirements – Country specific extensions – Industry specific requirements and processes
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Improvement Potentials using Standard Software
Critical Coreprocesses (competitive advantage) ▪ SAP-ME core solution
– Dedicated for flexible and highly configurable modelling of Manufacturing Processes – Same Technology Stack as other SAP Applications – Standard integration scenarios with SAP-ERP Systems
▪ Core SAP-ME extended by managed SDK´s – Leverage the standard technology stack – Can be certified – Support quality of the extensions comparable with the standard product support – Adminstration skills and processes like the core product – Effort to design, implement and deploy extensions is compared to individual
software solutions rather low, more robust and better plannable.
Standard BI and Reporting plattform ▪ SAP Business Objects
– Harmonized comprehensive views on SAP and non SAP Applications – „Single point of truth“ approach – Same platform for commercial BI as well as manufacturing Reporting and Analytics
▪
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Improvement Potentials using Standard Software
Equipment Integration Layer ▪ Abstraction of Eq. Interfaces and Protocols using Standard Integration
Framework ▪ Implementation of configurable standardized Equipment Controller,
based on SAP Standard Technology Stack
Enterprise Application Integration ▪ Enforce the usage of Communication Standards like WebServices ▪ Reduce the number of Integration Platforms ▪ Leverage standard SAP IT Landscape for implementation and runtime
environment of EAI components
UI-Layer ▪ Standard offers adequate technologies for nearly all relevant scenarios ▪ New released mobile platform enables tight integration of mobile devices
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Equipment Layer
Equipment Integration Layer
MES Layer
Messaging, Middleware Layer
Enterprise Application Layer
UI Layer
SAPME Core SAP ME Extensions SDK
Equipment Controller EQC (PCo, MII, SAP Adapter Framework+BPM+BRM )
OPC Equipment SECS/GEM Eq. TCP Eq. WebService Eq. Vendor specific Eq.
Component-Layer Model
OPC
PLC Equipment
TCP/Socket TCP/ WebServices Profibus SECS/GEM/
VFEI Vendor specific
WebServices
SAP PI SAP MII/MEINT
WebServices RFC/BAPI
BObj/MFG
SAP ERP (MM, PP, QM, WM, PLM,PM,….) BObj Non SAP App
WebServices
SAP PC-GUI SAP Browser-GUI SAP Portal SAP Mobile Other UI Standards
LAN/WAN
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Basic facts
4 Billion EUR Revenue 20.000 Employees 30 Production Sites, 15 Countries, 3 Continents, 50 customer
Single components up to complete electrical, electronical and mechanical systems Prod A, 90 Mio pieces per year, Prod B, 10 Mio pieces per year
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Harmonization - Processes
Harmonization of Business Processes (as is -> to be) ▪ Identification of reuasable process Modules ▪ Identification of processes fitting for standard or extended modelling
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Semi automated production line
4 workstations, Internally automated Manual transport Automated final test Rework station Workers travels with products 900 pieces per day 12 different product types 30 trackable input components 95 % First Pass Yield
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Fully automated production line
Drive Assembly 15.000 units per day 30 Workstations Completely automated, Automated transport 40 different products 15 trackable components 98% First Pass Yield 200 Data collections per product
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Functional requirements
Traceability Quality in the Shop Floor
Equipment efficiency Shop Floor Control
• Stepwise Traceability concept
• Different tracebillity levels for different products and sites
• Support of D-parts (safty related)
• Data acquisition for D-parts
• D-Part tracebility
• D-Part data archiving (15 years)
• Collection of quality data and SPC
• Analysis and export to QSSTAT
• Management of quality provisions
• 0-defect quality,
• Test device management
• Rework station
• Line controller
• Recipe and parameter managment
• Data collection and KPI reporting
• Visualization and production metrics
• Maintenance
• Visualization of order and production progress
• Production feedback and actual inventory
• Wage related data acquisition
• Shift management
• Production planning and management
• Integration SAP ERP
Reporting &
KPI’s multi-site
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
PoC Set up
Shop Floor integration scenarios
WS x Workstation x
WS 1 WS 2 WS 3
Option 1 Communication with GUI
PoC
Location 2 semi autom. Location 1 fully autom.
ERP BObj
ME / MII
GUI PLC
WS 1 WS 2 WS 3
Option 2 Communikation direct
with each WS
Connector, Collector
WS 1 WS 2 WS 3
Option 3 Communication with each WS
via Line Controller
Line Controller
Connector, Collector
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Master Template Scope
Global Template (Basic Scenario for Processes and funcionalities) e.g. ERP Interface, Master Data Synchronization
Functional Template e.g. User Interfaces
Functional Templates e.g. handling von D-Part Data
Special or local solution e.g. special data collection
Standardization for all sites
Standardization of functionalities and reuseable scenarios
Functional Templates e.g. integration of equipment types
Customized Extension
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
SAP ME Templates
Integration ▪ ERP-Interface ▪ Quality Management ▪ Equipment types definition
MES Functionalities ▪ Shop order handling ▪ Exception handling ▪ Data collection ▪ State models
Reporting ▪ Compareable OEE and KPI for multiple sites ▪ Seamless tracking for distributed production ▪ Preconfigured reports
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Agenda
Expected Benefits from Standardization Subject Matters to be considered Barriers and challenges for executing Standardization Improvement Potentials using Standard Software A customer project with focus on Standardization and Harmonization ▪ Production environment ▪ Project targets and expectations ▪ PoC set up ▪ Starting points for Standardization ▪ Project Execution and Methodology
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Project Execution and Methodology
Business Blueprint (6 weeks, done) ▪ Detailed description of „as is“ and „to be“ processes ▪ Brake down into use cases as basis for rapid prototyping and acceptance
test ▪ Solution design from hardware landscape, Equipment Integration, SAP-
ME basic modelling up to ERP Integration Szenarios ▪ Training of customer´s employees (different roles) ▪ Comprehensive documentation
Implementation phase (10 weeks, ongoing) ▪ Rapid prototyping for critical components ▪ Standard development activities ▪ Use case acceptance tests as preparation for final integration tests
Deployment and hand over to production (4 weeks, not started yet) ▪ Additional trainings ▪ Stress Tests and final proof of functionality, stability and performance ▪ Hand over to customer´s IT departement and production
26.01.2012, Copyright © SYSTEMA confidential, www.systemagmbh.de
Many Thanks for your Attention!
www.systemagmbh.de