1. Performix Inc: Implementing MES in SAP Landscape

2. Implementing MES in SAP Landscape
Sham Afzalpurkar
CEO, Performix Inc.
September 26th, 2006

3. Introduction Sham Afzalpurkar, CEO Performix Inc About Performix
A Manufacturing Execution Systems company
Developing xApps in MES space
Significant Supply Chain, Manufacturing Execution &Track/Trace experience
Focus on Pharmaceuticals, Process Industries and Hi Tech
Offices in Houston, Texas with development teams in India

4. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

5. Why MES?
In the last decade, ERP and SCM have NOT delivered the expected returns
Focus on deploying MES solution to give visibility and flexibility and effectively manage supply chain
Competition has forced quality products at lower cost
Integration of ERP and MES has been a challenge
Standards such ISA 95 provide the potential to simplify deployment

6. What is Manufacturing Execution System?
Co-ordinate functions on the shop floor to optimize the plant activities
Manufacturing Execution System provides effective integration between production processes and enterprise business systems.
Layer of communication between business and control systems
ERP
MES
SHOP FOOR AUTOMATION

7. Components of MES Core Extensions Material and Production Tracking
Material Handling and Production Procedures
Resource management and allocation
Production Dispatching
Data Collection
Extensions
Compliance
Quality Assurance
Performance Analysis
Detail Scheduling
Document Management
Labor Management

8. What is ISA 95?
Instrumentation, Systems, and Automation Society (ISA) Standard
Standard that defines how to link Enterprise and Controls systems using a Manufacturing Execution Systems (MES) layer. This standard describes:
The MES Functionality
The Data base schema at the MES Level
The Messages between the Enterprise system and MES

9. What is B2MML?
The World Batch Forum (WBF) has published XML schemas based on the S95 Model - B2MML (Business to Manufacturing Markup “Hypertext” Language)
B2MML-V0201-Common.xls
B2MML-V0201-Personnel.xls
B2MML-V0201-Equipment.xls
B2MML-V0201-Material.xls
B2MML-V0201-Maintenance.xls
B2MML-V0201-ProcessSegment.xls
B2MML-V0201-ProductionDefinition.xls
B2MML-V0201-ProductionCapability.xls
B2MML-V0201-ProducitonPerformance.xls
B2MML-V0201-ProductionSchedule.xls

10. MES vendors offer solutions that overlap functionality offered by SAP

11. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

12. Justifying MES – Business Drivers
Visibility of data globally
Standard processes
Enable benchmarking and best practices
Consistent Documentation
Resource Utilization
Accurate and consistent KPI
Seamless Integration

13. Justifying MES - Benefits
Increases Operational Excellence
Lower Operating Costs
Asset Management
Reduced Total Cost of Ownership

14. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

15. Manufacturing Assessment & Planning
What are the business drivers?
What are the organizational and process related issues?
What should be done first – aligning manufacturing strategy with business strategy

16. Business Functions (S95)
Enterprise Performance Reporting
Level 4
Business
Planning &
Logistics
Demand
Planning
Supply Chain Planning
Cost Accounting
Human Resource
Management
Sales &
Distribution
Material
Management
Production
Planning
Warehouse
Management
Maintenance
Management
Detail Scheduling
Process
Optimization
Recipe
Management
Performance
Management
Process
Analysis
Level 3
Manufacturing
Operations
Resource
Management
Production
Execution
WIP Material
Management
Production
History
Quality
Management
Real-Time
Execution
Real-Time
SPC
Level 2
Plant Floor
Control
Real-Time
Control
Real-Time
Monitoring

17. Enterprise Performance Reporting
Simple Discrete
Some PLCs
Machines & Work Centers
Fixed Routes, No Lot Splitting
Only Ingredients Changes
ERP
Demand
Planning
Supply Chain Planning
Production
Cost Accounting
Warehouse
Management
Maintenance
Material
Human Resource
Sales &
Distribution
Detail Scheduling
Enterprise Performance Reporting
History
WIP Material
Performance
Resource
Execution
Process
Analysis
Quality
Real-Time
Monitoring
SPC
Control

18. Enterprise Performance Reporting
Aerospace and Automotive
MES Thousands of parts, complex procedures, many products
Some PLCs
Machines & Work Centers
Production Lines
ERP
Real-Time
Monitoring
Execution
SPC
Control
Demand
Planning
Supply Chain Planning
Production
Cost Accounting
Warehouse
Management
Maintenance
Material
Human Resource
Sales &
Distribution
Enterprise Performance Reporting
Detail Scheduling
Process
Analysis
History
WIP Material
Resource
Quality
Complex Discrete

19. Enterprise Performance Reporting
Semiconductor
many shared resources, complex routing, many products
MES thousands of parts, complex procedures
Some PLCs
Machines & Work Centers
Production Lines
ERP
Real-Time
Monitoring
Execution
SPC
Control
Demand
Planning
Supply Chain Planning
Production
Cost Accounting
Warehouse
Management
Maintenance
Material
Human Resource
Sales &
Distribution
Enterprise Performance Reporting
Detail Scheduling
Performance
Process
Analysis
Recipe
Optimization
History
WIP Material
Resource
Quality

20. Enterprise Performance Reporting
Pharmaceuticals & Specialty Chemicals
ERP
Enterprise Performance Reporting
Demand
Planning
Supply Chain Planning
Cost Accounting
Human Resource
Management
Sales &
Distribution
Material
Management
Production
Planning
Warehouse
Management
Maintenance
Management
many shared resources, large recipes, many products
MES compliance, complex procedures
Detail Scheduling
Process
Optimization
Recipe
Management
Performance
Management
Process
Analysis
Resource
Management
Production
Execution
WIP Material
Management
Production
History
Quality
Management
SCADA / PCS
Equipment Trains
Flexible Connections
Real-Time
Execution
Real-Time
SPC
Real-Time
Control
Real-Time
Monitoring

21. Enterprise Performance Reporting
Oil & Gas and Bulk Chemicals
ERP
Enterprise Performance Reporting
Demand
Planning
Supply Chain Planning
Cost Accounting
Human Resource
Management
Sales &
Distribution
Material
Management
Production
Planning
Warehouse
Management
Maintenance
Management
SCADA / PCS
Equipment Trains
Fixed Connections
Large number of control variables, real-time optimization
Process
Optimization
Performance
Management
Process
Analysis
Production
History
Quality
Management
Real-Time
Execution
Real-Time
SPC
Real-Time
Control
Real-Time
Monitoring

22. MES Functionality Dispatching and Production Resource Allocation
Quality Management
Data Collection
Process Management
Production Tracking and Genealogy
Document Control
Performance Analysis
Operational Detail Scheduling

23. Dispatching Production
Manages the flow of production in the form of jobs, orders, batches, lots and work orders by dispatching production to specific equipment and personnel. Includes information that is presented in the sequence in which the work needs to be done.
Criteria
Positioning
Simple Recipe & Tracking
SAP / PP or PPPI and APO
Complex Recipes
MES
Complex Lot Management
Consider xApp
Combination of MES and SAP. SAP can handle this function to a point; however, the optimal method would be for SAP to be used by Planning and to download the orders into MES. MES will do any final rearranging of the orders and do a final dispatch to the floor. MES also has the real time high speed connectivity to the floor to know the exact status of each entity.

24. Resource Allocation & Status
Manage the resources directly associated with control and manufacturing.
Criteria
Positioning
Manual & Simple Procedure
SAP PP or PI
Manual & Automated
MES
Combination of MES and other systems (SAP, GSS, Maximo). MES will hold the status of machinery. GSS will hold specifications. SAP will hold inventory. Maximo or SAP’s PM module will hold the status of tools. MES will include the detailed history of resources, insure that equipment is properly setup, and provide real time status. It will contain the checklist of resources that need to be available for a work order. MES and SAP will reserve and dispatch resources to meet the schedule.

25. Data Collection & Acquisition
Obtains operational production and parametric data associated with production equipment and processes. Provides real-time statuses of production equipment and processes.
Criteria
Positioning
Discrete &/or low data volume
SAP / PP or PP PI
High speed real time data collection or very high volume
MES
Positioning – MES. SAP cannot and will not do high speed data collection. MES/SCADA is the only layer that can handle this data

26. Quality Management Criteria Positioning Manual data collection SAP QM
Provides real-time measurements collected form manufacturing to assure proper product quality control and to identify problems requiring attention. Includes SPC / SQC tracking and management of offline inspection operations .
Criteria
Positioning
Manual data collection
SAP QM
Real time measurements with simple statistics
MES / SAP xMII
Real time measurements with multi-variable analysis
Positioning –MES has more/better SPC tools than SAP as it is more focused to shop floor QA. MES can collected high speed automated data and react in real time to an out of spec variable; SAP cannot. SAP’s demonstration of the collection of QA events did not show operator friendly integration.
SAP should be used to satisfy Quality Management in an environment that is only doing manual data collection and does not need real time data analysis.
A link to GSS is required in order to get the upper and lower specification limits to tell if a product/machine is in or out of control.

27. Process Management Criteria Positioning Manual SAP / PP or PPPI
Monitors production and either automatically corrects or provides decision support to operators for correcting and improving in-process functions. It may include alarm management to handle process deviations.
Criteria
Positioning
Manual
SAP / PP or PPPI
Automated Systems
MES
Complex Recipes
Positioning –MES. MES can deliver what we need. SAP cannot and will not do real time process management. SAP will hold the master data (BOM, items). MES will hold the recipe (machine set points and procedures).

28. Production Tracking & Genealogy
Provides status of production and disposition of work. Status information may include personnel, materials used, current production conditions. Includes recording of production information to allow forward and backward traceability.
Criteria
Positioning
Simple Recipe & Tracking
SAP
Compliance/Traceability
MES or xApp
If lot tracking is turned on in the entire facility the lot would have to be “entered” at every stage of production in order to track. This is for compliance reasons that SAP would have to be turned on.

29. Performance Analysis Criteria Positioning
Provides real-time reporting of actual manufacturing operations results along with comparisons to past history and expected results. Performance results include resource utilization, resource availability, cycle time, conformance to schedule and standards. May include SPC / SQC analysis
Criteria
Positioning
Simple Manual & Automated Systems
SAP xMII
Complex Recipes or Advanced Analysis
MES + SAP XMII
Positioning –Combination of MES and SAP’s BW: Use the charting and graphing provided in MES to do real time data analysis. MES will come with reports targeted to shop floor data analysis. For data warehouse and any roll ups use SAP’s BW.

30. Operations & Detailed Scheduling
Provides sequencing based on priorities, attributes, characteristics and production rules. It is finite and it recognizes alternative and overlapping operations to calculate timing of equipment loading
Criteria
Positioning
Simple Discrete Processing with a Large Supply Chain
SAP APO PPDS
Complex, Very Large, Non-linear Recipes
SAP APO + MES or Consider xApp
Positioning –APO in SAP has the framework needed to perform this functionality. SAP can schedule operations down to the line(s) of a process center and knows the difference between each line in the operation. APO can schedule to the shift level. SAP will download the schedule to MES.

31. Document Control Criteria Positioning Simple Work Flow SAP
Control records and forms that must be maintained with the production unit. Includes work instructions, recipes, drawings, standard operating procedures (SOP), batch records, shift to shift communication. It sends instructions down to operations and device controls
Criteria
Positioning
Simple Work Flow
SAP
Simple WF and Regulatory Compliance
SAP / Document Management System
Complex WF with Regulatory Compliance
SAP + MES+ Document Management
Positioning –
Global Specification System (GSS)
The Global Specification System will contain work instructions and SOPs. These files can be accessed through a url. In the future, the best interface between GSS and MES would be through field level data transfer where each step of a specification can be downloaded to MES.
Now:
GSS: Work Instructions, SOPs
MES: Recipes (procedures and machine set points), Batch records, shift to shift communication
Local: Drawings
Future:
GSS: Work Instructions, SOPs, Recipes (procedures and machine set points), Drawings
MES: Batch records, shift to shift communication

32. Labor Management Criteria Positioning Standard HR Functionality SAP HR
Provides status of personnel. Includes time and attendance, certification tracking, as well as preparation work as basis for activity–based costing. May interact with resource allocation for optimal assignments.
Criteria
Positioning
Standard HR Functionality
SAP HR
Training Compliance during execution
SAP/MES
Positioning –SAP has the ability to track certifications and time and attendance through the HR module. However, the due diligence to ensure that the time and attendance module can conform to local labor laws and union rules in a shred instance has not been done. If it is found that SAP is appropriate for time and attendance globally, then the recommendation is SAP with a link to MES. If SAP is not found to be appropriate, then MES should hold the certifications and a local time and attendance package should be used. This decision is such that MES has sufficient certification tracking ability and an interface would be avoided.

33. Maintenance Management
Functionality for maintaining equipment and tools. Ensures equipment and tools availability for manufacturing. May also include scheduling for periodic or preventive maintenance. Maintains history of past events to aid in diagnosing problems.
Criteria
Positioning
Standard PM functionality
SAP Plant Maintenance
Real-time Condition Based Maintenance
SAP Plant Maintenance + MES
Positioning –Maximo and SAP’s PM module are the preferred solutions for Maintenance Management. Either package is acceptable.

34. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

35. Intelligence Dashboard
SAP MES Architecture
APO
Demand Planning
SNP
PPDS
Global
ATP
SAP R/3 BW
Materials
Management
Production Planning
Quality
Management
Plant Maintenance
Human Resources
xMII
Intelligence Dashboard
Integration
Master & Transaction Data
S95
MES
xApps/Composite Apps
OPC
LIMS
Historian
PAT
SCADA
Devices
Doc Mgmt

36. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

37. SAP MES Integration Options
Use SAP xMII – Preferred
Build your own XI integration

38. SAP MES Integration Using xMII
Enterprise
Plant Floor
SAP NETWEAVER
Other SAP Bus. Solu tions
SAP BI
SAP Manufacturing
(mySAP ERP)
Manufacturing Intelligence Dashboards
SAP xMII
Manufacturing Integration
Manufacturing Intelligence XI
SAP xMII enables real-time transactional integration between plant floor and enterprise (SAP ERP) systems out-of-the box thru:
Universal Connectivity to the data, functionality and processes of existing plant floor systems and SAP
Advanced composite application capabilities for creating automated events, KPIs and alerts, and new manufacturing business processes
Synchronization of SAP ERP with real-time Plant Floor Systems and Processes using proprietary and standards-compliant messages and workflows
Data Services that provide a foundation for Manufacturing Synchronization and Intelligence

39. MES Integration with SAP – Using xMII
SAP R/3, SCM, BW…
MES Integration with SAP – Using xMII
PEOPLE
SAP Enterprise Portal
INFORMATION
SAP xMII
Integration
Here we are showing the Architecture of shopfloor top floor integration using NetWeaver XI. Here the message exchange is in the form of B2MML Schemas, which is the implementation of ANSI/ISA-95 model.
If the shopfloor application is S95 compliance then the integration with SAP can be directly achieved with Netweaver XI.
If shopfloor application is not directly S95 Compliance but with the use of other connectors, it’s S95 compliance, then the integration can also be achieved.
Shopfloor Application – ANSI/ISA-95 Compliance
B2MML Msg
Use xMII Integration capabilities if S95 Non Compliant
= SAP
= 3rd Party Application

40. Agenda Overview of MES Justifying MES Developing MES Strategy
MES Architecture
Integration Strategy
Implementation Plan
Lessons Learned

41. MES Deployment Strategy
Understand the problem you are trying to solve
The business drivers
How you deploy has impact on cost and scope
Integration with Process Control and other applications
Change in the business processes
Facility readiness

42. Analyze manufacturing processes and develop MES requirements
Map requirements with SAP Functionality.
Assessment
Map
MES Requirements
Design
MES Architecture
Detail plan for pilot and rollout
Identify gaps
Develop Deployment
Plan
Develop global processes, Integration touch points
Pilot
Roll Out
Review Pilot results
Start
Ramp-up

43. Why Pilot? Enhance understanding of MES
Determine how well current requirements fit into an MES
Validate the Integration strategy

44. Scope of Pilot Should cover end to end processes Team Timeline
Project Lead
SAP Expertise – MM/PP/PI, QM, APO
Automation Expertise
QA/QC
Integration/xMII
Plant Floor
Timeline
About 3-4 months

45. Take Aways
There is an overlap of functionality offered by SAP and MES vendors
Perform detail MES requirement mapping with SAP functionality
Make the decision up front where the functionality resides (SAP or MES)
In many cases SAP + xMII + xApp could meet your requirements
For complex processes, compliance and regulatory requirements, consider third party MES solutions
xMII is the preferred Integration solution in the SAP landscape
Start with an end to end pilot

46. Session Code:
0707