Professional Documents
Culture Documents
Transform Manufacturing
with SAP S/4HANA
Update 1610
White Paper Background
and Key Definitions
The information outlined below is helpful to understand the contents of
this value proposition white paper. It gives clear details on the objective
and scope of the paper. Key definitions are also provided for select
sections of the paper for further clarification.
Airbus DS Optronics
Redesigned data structures enable unprecedented data throughput, and embedded solutions create a simplified system
landscape and optimized user interfaces.
Live inventory data and drastically reduced material requirements planning (MRP) processing time improve transparency
and responsiveness.
Immediate insights on planning, execution, prediction, and simulation, with analysis at the finest level of granularity.
Leverage SAP Fiori user experience to deliver personalized, responsive, and intuitive applications across all facets of the
manufacturing process, on any device, anywhere, anytime.
Individualized Products
Cater to the market of one, delivering customized offerings to meet the unique needs of individual customers, multi-
faceted configurations, and highly variable demands with regional and localized requirements.
MANUFACTURING CAPABILITIES
Primary capabilities of manufacturing where value can be achieved through SAP S/4HANA and SAP Cloud and LoB solutions.
SAP S/4HANA for finite planning based on embedded manufacturing planning and scheduling
Traditional
SAP ERP
and SAP
Advanced
Planning and
Optimization
(SAP APO)
Manage List scheduled
master data in Create Run finite planning in Manage Monitor Run MRP in SAP ERP Manage planned orders for
SAP ERP master data SAP APO production conflicts in capacity in for noncritical conflicts in release
in SAP APO planning SAP APO SAP APO components SAP ERP
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Long and overnight Planning runs at One MRP run Constraint-based Unification of master Reduced manufacturing
batch runs result in predefined times with supports detailed planning (capacity data maintenance cycle time
planning inefficiencies data that first must be scheduling and MRP. and resource) using and integration
consolidated from No coordination of various heuristics simplification Improved
Cumbersome and time- various systems runs required and optimizers to manufacturing planning
consuming analysis of generate a precise Interactive function efficiency
planning situation Separate manufacturing Seamless integration production plan by production planning
planning processes of master data and and simulations Reduced revenue loss
Disparate planning and bringing production due to fulfillment issues
available in planning and transactional data in planning and detailed (SAP Fiori)
transactional systems
ERP systems planning scheduling on SAP Reduced total
lead to data integration Demand-driven
latency and errors Inventory management Optimize material ERP replenishment: stock- manufacturing costs
and planning systems flows by harmonizing Web-based graphical level management Increased on-time
Inflexibility to include
need integration with your requirements to scheduling tool to delivery performance
real-time, changing ERP for MRP your production
demands in the optimize and plan the
schedule together resource schedule,
planning run leads to
with your supplier. order dates, and
outdated and For example, to group
inaccurate planning times as well as plan
PO's to ensure only critical products and
full truckload monitor capacity
shipments utilization
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
High overhead costs in SAP Business Suite Fundamentally new In combination with SAP Manufacturing Reduce total
managing a disparate set software provides an data models and S/4HANA, SAP engineering cockpit manufacturing costs
of shop-floor systems integrated solution from functions reduce the Manufacturing Execution that uses 3D
Reduce manufacturing
across multiple plants that enterprise planning to number of systems and SAP MII allow for end- information to create
technology cost
are not integrated into shop-floor execution required, for example, to-end process integration manufacturing-
enterprise planning and single material master and enable global and relevant master data Reduce manufacturing
the business Visual manufacturing for ERP- and supply- local deployment options and efficiently overhead cost
planner for leveraging
chain management- handles engineering
Complex and expensive 3D CAD information, SAP Plant Connectivity Reduce manufacturing
relevant materials changes
system landscapes with thereby simplifying the provides seamless direct labor cost
multiple shop-floor handover process 3D visual product connectivity between Fabrication and fab
systems in distributed information in SAP Manufacturing assembly execution Reduce manufacturing
plants, resulting in high production process Execution and shop-floor for complex assembly overtime cost
total cost of ownership devices to enable lot Simplify the IT landscape
(TCO)
SAP Fiori apps for size of one production
production scheduling, and lower TCO
Inefficient or ad hoc order confirmations, SAP Manufacturing
handover of bill-of- and for complex Execution provides
material information and assembly configurable, role- and
design changes from manufacturing place-specific and
engineering to personalized dashboards
manufacturing for operators, available
on touch screen or
Inefficient application mobile devices
proximity often requires
shop-floor workers to go Browser-based
to a central terminal to UI5/HTML5 mobile
make required entries, applications for wireless
resulting in delays and bar-code scanners used
errors on the shop floor
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Limited system SAP Business Suite IoT capabilities supporting Reduce revenue loss
flexibility and software provides machine-to-machine due to fulfillment issues
automation available solutions for variant connectivity, allowing for
to cater to the configuration and make- automation and
customization to-order and assemble- unprecedented flexibility of
demands in a cost- to-order scenarios manufacturing processes
effective manner
Complicated ecosystem; Manual effort to Manage the SAP Asset Intelligence The SAP Distributed Reduce manufacturing
collaboration requires collaborate with subcontracting process Network: data about Manufacturing technology cost
every manufacturer, business partners from planning to machine operations, such application offered on
service provider, or execution and as current state, usage the SAP HANA Cloud Reduce unplanned
downtime or outages
equipment operator to monitoring and profile, and utilization, as Platform is a cloud-based
link up with each integrate your business well as about each collaboration solution
business partner network serialized component that between additive
separately to exchange is used in the assembly of manufacturing service
data on equipment and
Integrate external the machine, can be providers and
components workforce into exchanged via the network manufacturing
production execution; companies, for example,
manage time and 3D printing, that enables
material handovers end-to-end business
Supports just-in-time process integration for
production with design and procurement
embedded Kanban as
well as JIT inbound and
outbound material flows
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Lack of visibility into Manufacturing insights Real-time alerts based In combination with The SAP Digital Reduce total
production processes, available with support on bottlenecks in SAP S/4HANA, Manufacturing Insights manufacturing costs
status, and performance from IT department production, such as SAP Manufacturing solution offered on the
time or component Execution and SAP MII SAP HANA Cloud Drive manufacturing
in enterprise systems, using analytical
delays, and in resources allow for dashboard Platform is a cloud- performance
leading to inaccurate tools such as
according to
decision making SAP BusinessObjects creation, without coding, based service
Plant performance for real-time insights to encompassing all data organizational goals
business intelligence
analytics with possibility of
solutions all shop-floor operations sources, not just those
intracompany
Shop-floor cockpit for and profitability metrics from SAP, for advanced
analytics benchmarking
live production visibility,
orchestration, and
confirmation
SAP Fiori app which is a
dashboard for the
production supervisor to
manage operations
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Difficulty getting an end- Quality-management- Integrated and simplified Additional object Reduce revenue loss due
to-end view of quality relevant functions are solution utilizing quality pages in SAP Fiori for to quality and compliance
due to distributed integrated with supply management (QM) and a wide range of quality issues
systems chain, covering the quality issue management objects
areas of quality (QIM) capabilities
Changing a local or
engineering, quality
departmental quality inspection, and quality Simplified user interface
management focus to a and new user setup; core
improvement
company-wide (and later QM processes supported
to a supply chain) focus by new roles in SAP Fiori
user experience for
Preventing non-
quality technician, quality
conformance within all
engineer, quality planner,
stages of design to quality manager, quality
production to delivery
auditor, and calibration
technician
Enhanced and simpler
user experience for the
quality technician to
improve productivity
Run in a mobile
environment with
significant reduction in
the number of clicks
required
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Recording quality Generic UIs are Perform quality Point-of-detection Enhanced SAP Fiori app Reduce revenue loss due
inspection results is available for recording inspections, providing recording with SAP Fiori for results recording to quality and compliance
time-consuming and quality inspections inspection results to app (also mobile-enabled) (extended version) issues
inefficient enable timely, informed for faster and more
release decisions and efficient recording by
New SAP Fiori Reduce scrap value
Delay in informing transactional app for
therefore support quality technicians (role- Reduce manufacturing
customers of non- product compliance and based) monitoring inspection
conforming products lots and making usage quality labor cost
quality requirements
decisions
Enhanced efficiency in
quality assurance Collective usage
execution (results decision
recording enabling Simplified inspection
quality technicians to process in EWM within
record inspection results SAP S/4HANA
easily and efficiently); (extended scope)
SAP Fiori apps for results
recording
Simplified inspection
process in extended
warehouse management
(EWM) within
SAP S/4HANA
(first scope)
Typical Pain Points Current State With ERP SAP S/4HANA Cloud And LoB Extension 2017 Planned Business
On Traditional Database Enhancements Enhancements Innovations Benefits
Analysis based on past Different systems are Integrated, simplified SAP Fiori apps to Reduce revenue loss due
performance instead of available for quality quality management improve quality control to quality and compliance
proactive measures based management and quality utilizing QM and QIM by monitoring and issues
on asset and production issue management capabilities with built-in IoT adjusting processes
performance processes; integration connectivity and predictive
Analytics for inspection
needs to be done between analytics
Real-time simulations or results
these systems
predictive capability to Improved quality
Newly designed object
detect quality issues are measurement results
pages with charts to
not available through recording of
defects, planning and display results history
and single values in
flexible, harmonized action
graphical form
management
New SAP Fiori apps for
Real-time monitoring and
capturing and
exception management of
monitoring defects
quality deviations
Risk Employee
Management Engagement
RISK MANAGEMENT EMPLOYEE ENGAGEMENT
*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced
SAP S/4HANA and LoB and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you
to determine the value proposition for your enterprise.
Every enterprise is unique, with different starting points and end SAP Industry 4.0
points. Whether you are starting as a net new implementation or SAP Connected Manufacturing Industry 4.0 in Practice
undergoing digital transformation of an existing SAP landscape,
SAP can help. We have been working with enterprises of all sizes Open Integrated Factory, Industry 4.0 with SAP
and n all industries. Based on the depth of this experience, SAP
has a robust portfolio of services to help you define your road map Digital Production Operations A Roadmap to Industry 4.0
to SAP S/4HANA.
Industry 4.0 Solution Packages (Customers and partners
Customer Engagement Methodology use your S-User for access)
For all value assurance packages and for the successful and
seamless transition to SAP S/4HANA, please visit the link
Transition to SAP S/4HANA.
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