Performix Inc: Implementing MES in SAP Landscape

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

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

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

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

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

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

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

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

MES vendors offer solutions that overlap functionality offered by SAP

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

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

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

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

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

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

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

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

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

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

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

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

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.

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.

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

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.

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).

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.

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.

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.

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

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.

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.

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

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

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

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

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

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

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

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

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

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

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

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

Session Code: 0707