1. ©© 2013 SAP AG. All rights reserved. Product Development Scenario Overview Open Legend Project Manager Scenario Description The following business roles are involved in this scenario: Product EngineerQuality PlannerBuyer Production PlannerInspector The Product Development scenario provides you with comprehensive functions to develop new products or to significantly improve the quality of products and processes. Inspired by the Advanced Product Quality Planning (APQP) framework, it covers all important stages from the definition of a product development project to the approval of mass production (and project closure). It covers the planning of a product development project, the engineering and prototyping of a product, the definition of the production process and sample master data, as well as the production of samples and the validation of the production process by continuous improvement. It is a project.structured scenario that includes tools and techniques of Total Quality Management to achieve strategic business results, such as reducing field failure risks, product returns and warranty costs, and ensuring higher customer satisfaction. Click process chevrons for details Planning a Product Development Project Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Scenario/Processes Business Value Scenario Flow Scenario Explorer Further Information

2. ©© 2013 SAP AG. All rights reserved. Product Development Scenario Overview Open Legend Project Manager Scenario Description The following business roles are involved in this scenario: Product EngineerQuality Planner Production PlannerInspector The Product Development scenario provides you with comprehensive functions to develop new products or to significantly improve the quality of products and processes. Inspired by the Advanced Product Quality Planning (APQP) framework, it covers all important stages from the definition of a product development project to the approval of mass production (and project closure). It covers the planning of a product development project, the engineering and prototyping of a product, the definition of the production process and sample master data, as well as the production of samples and the validation of the production process by continuous improvement. It is a project.structured scenario that includes tools and techniques of Total Quality Management to achieve strategic business results, such as reducing field failure risks, product returns and warranty costs, and ensuring higher customer satisfaction. Click process chevrons for details Scenario/Processes Business Value Scenario Flow Scenario Explorer Planning a Product Development Project Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Buyer Further Information Legend Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third- party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Close Legend

3. ©© 2013 SAP AG. All rights reserved. Planning a Product Development Project Product Development Process Details: Planning a Product Development Project Scenario Explorer Process Description The Planning a Product Development Project business process enables you to create, plan, and structure your product development project, as well as set up your project team, staffing it across various departments such as engineering, sales, procurement, quality assurance, and production. You can schedule the product development project and define milestones and checklists. Project tasks and resources can be assigned to the particular phases of a product development project. Based on resource planning, project resource costs can be calculated. A project template following APQP can be created for repeated use and for adhering to industrial standards. Create Develop- ment Project Plan Develop- ment Project Release Develop- ment Project Performed by Project Manager Product Engineer In the Work Center(s) Project Management Further Information X iii Click process chevrons for details Scenario/Processes Business Value Scenario Flow See also Creating Projects Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Further Information

4. ©© 2013 SAP AG. All rights reserved. Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Planning a Product Development Project Product Development Process Details: Planning a Product Development Project Scenario Explorer Process Description The Planning a Product Development Project business process enables you to create, plan, and structure your product development project, as well as set up your project team, staffing it across various departments such as engineering, sales, procurement, quality assurance, and production. You can schedule the product development project and define milestones and checklists. Project tasks and resources can be assigned to the particular phases of a product development project. Based on resource planning, project resource costs can be calculated. A project template following APQP can be created for repeated use and for adhering to industrial standards. Create Develop- ment Project Plan Develop- ment Project Release Develop- ment Project Performed by Project Manager Product Engineer Further Information X iii Click process chevrons for details Project tasks are defined to structure and staff the work. Task results can be documented by attachments, textual descriptions, or checklists. Milestones reflect important quality gates, such as approvals and decisions. Planned project costs can be calculated. X In the Work Center(s) Project Management Scenario/Processes Business Value Scenario Flow See also Creating Projects Further Information

5. ©© 2013 SAP AG. All rights reserved. Product Development Process Details: Product Engineering and Prototyping Scenario Explorer Process Description The Product Engineering and Prototyping business process includes importing technical drawings and materials from CAD/PDM systems (optional) or their manual creation, and reviewing and updating product design versions (engineering bill of material). It includes the definition of product models as well as the definition of characteristics of product specifications. Interim inspection plans and requirements for production equipment can be defined for validation of the prototype result and later sample production. These data can be adjusted continuously based on production process optimization and are required to analyze potential production problems pro-actively. Click process chevrons for details Define Interim Inspection Plans Define Require- ments for Production Equipment Create Prototype iii Product Engineering and Prototyping Create and Review Product Design and Materials i X Import Technical Drawings and Materials from CAD/PDM Define Product Specificat- ions/Char- acteristics ii In the Work Center(s) Project Management Product Development Planning and Production Master Data Quality Planning Scenario/Processes Business Value Scenario Flow See also Product Specification Quick Guide Synchronization of Notes and Attachments between Product Models and Product Specifications Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Planning a Product Development Project Further Information Performed by Product Engineer Production Planner Quality Planner

6. ©© 2013 SAP AG. All rights reserved. Product Development Process Details: Defining Production Process and Sample Master Data Scenario Explorer Process Description The Defining Production Process and Sample Master Data business process includes the establishment of the production environment, such as production resources and production processes, the creation of new master data or update of interim master data for sample production (pre-series), and the definition of quality inspection. The establishment of the physical production environment must ensure the availabiltiy of qualified and capable human and machine resources in time. Necessary sample master data for production, logistics, financials, such as product, resources, bill of material, production model, logistics model, quality inspection plans, and so on, must be prepared as a prerequisite for sample production. Purchasing of necessary supplier components and tracking of purchasing related activities is also included. In the Work Centers Project Team Warehousing and Logistics Master Data Product Data Planning and Production Master Data Quality Planning Product Portfolio Supplier Base Sourcing and Contracting Further Information Click process chevrons for details Defining Production Process and Sample Master Data Define and Create Inspection Plan for Initial Sample Create Production Master Data for Sample Establish Production Environ- ment iii X Create Purchase Master Data for Component Procure- ment i Scenario/Processes Business Value Scenario Flow See also Product Designs Product Designs Quick Guide Planning a Product Development Project Product Engineering and Prototyping Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Further Information Performed by Product Engineer Production Planner Quality Planner Buyer

7. ©© 2013 SAP AG. All rights reserved. Product Development Process Details: Producing Sample and Validating Production Scenario Explorer Process Description The Producing Sample and Validating Production business process includes sample production (pre-series), validation of production processes, master data, quality of sample, and series production decision. The decision is made to either start with the series production or to improve the production process or the quality of the product; In this case, the sample production must be repeated. Click process chevrons for details Producing Sample and Validating Production Decide About Production Process and Production Produce and Validate Initial Sample ii X Performed by Product Engineer Production Planner Quality Planner Buyer Inspector In the Work Centers Project Management Supply Planning Purchase Requests and Orders Production Internal Logistics Further Information Scenario/Processes Business Value Scenario Flow Planning a Product Development Project Product Engineering and Prototyping Defining Production Process and Sample Master Data Controlling Production and Continuous Improvement Further Information

8. ©© 2013 SAP AG. All rights reserved. Product Development Process Details: Controlling Production and Continuous Improvement Scenario Explorer Process Description The Controlling Production and Continuous Improvement business process includes control of mass production (series), identifying failures, and execution of corrective and preventive actions in the startup phase. If mass production is running without problems in all production facilities, the final project milestone is reached. This leads to the closure of the product development project. Click process chevrons for details Controlling Production and Continuous Improvement Close Product Develop- ment Project Identify and Execute Corrective and Preventive Actions Control Production X iii Create Final Master Data i Performed by Product Engineer Production Planner Quality Planner Buyer Inspector In the Work Centers Project Management Supply Planning Purchase Requests and Orders Production Internal Logistics Further Information Scenario/Processes Business Value Scenario Flow See also Product Guide Development Planning a Product Development Project Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Further Information

9. ©© 2013 SAP AG. All rights reserved. Plan Development Project Product Engineering and PrototypingDefine Production Process and Sample Master Data Establish Production Environment and Master Data for Sample Create Inspection Plan for Sample Create and Review Product Designs and Materials Define Inspection Plans and Requirements for Production Equipment Create Prototype Plan, Staff, and Release Development Project Product Development Business Value Scenario Explorer Overview This scenario provides a way to systematically manage the development design, quality, and inspection requirements through all steps from design through prototype to test validation and full introduction. By structuring and following a plan, the product is more likely to meet quality standards, reduce expensive change orders and re-specification delays, accelerate the product introduction, and reduce risk to the company. This solves the need for a controlled process for product introduction that will be made either in-house or by a 3 rd party. With its functionality in Project Management, Supply Chain Management, Engineering and Procurement, SAP Business ByDesign® contributes by Providing a consistent process and plan for product introduction and change Enabling stakeholders to collaborate and understand their roles, responsibilities, time lines, processes with an audit trail, and reporting on progress Providing transparency and visibility of the whole process and tracking progress and decisions Providing a single tool where all relevant data is in the system for re-use in the mass production process avoiding silos outside of the main system All decisions documented and all deliverables stored in a central place Cost control of all activities or purchases for the product under development Key Benefits Validate Production Produce and Validate Sample, Approve Mass Production Controlled Production and Continuous Improvement Control Mass Production and Execute Improvement Actions Close Project when Mass Production Reaches Quality Business Value Scenario/Processes Scenario Flow Further Information

10. ©© 2013 SAP AG. All rights reserved. Product Development Scenario Flow Legend Work center in which process is performed Business document flow Related scenarios Dotted line = optional Process mainly driven by the user Scenario Explorer Work Center Make-to-Stock Project Management Product Development Planning and Production Master Data Quality Planning Sourcing and Contracting Product Data Supply Planning Purchase Requests and Orders Production Control Planning a Product Development Project Product Engineering and Prototyping Defining Production Process and Sample Master Data Producing Sample and Validating Production Process Controlling Production and Continuous Improvement Scenario Flow Scenario/Processes Business Value Further Information

11. ©© 2013 SAP AG. All rights reserved. Product Development Further Information Scenario Explorer Forum Get in touch with experts to discuss your specific requirements. To enter the community, click here.*click here More Details SAP provides a complete product documentation, covering all aspects of the business scenario. For more details, click here.click here Self-Enablement Systems If you want to try out the business scenario, click here.*click here WIKI In addition to the product documentation, SAP provides Wikis that describe additional aspects of SAP Business ByDesign. To access the WIKI, click here.*click here Do you want to try it out?Do you need more information?Do you want to discuss with others? VV * Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please check http://support.microsoft.com/kb/890474.http://support.microsoft.com/kb/890474 Further Information Scenario/Processes Business Value Scenario Flow