SAP Industry 4.
0 & the Internet of Things
Connected Manufacturing in Mill Products Industries
Chris Dorrow, May 2015
Trends in an Industrial World
Connected Devices
Connected Processes
Connected Business
Smart City
Smart
Energy
Smart
Car
Smart
Flight
Smart
Industry
Stakeholder
50 Bn. Devices in 2020
Complexity
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Manufacturing Continues to Change
4th Industrial Revolution
based on cyber-physical
systems
3rd Industrial Revolution
use of electronics and IT to
automate the production
2nd Industrial Revolution
adoption of work-sharing mass production
by using electrical power
1st Industrial Revolution
adoption of mechanical production facilities
by using water and steam power
End of the
18th century
Beginning of
20th century
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Early 70s
Today
Industry 4.0 Terms and Enablers
M2M
Smart
Anything
Machine-toMachine
Devices provide
Information
Cyber-Physical
Systems
Machines
connected to
the business
Internet
of Things
Connected via
one protocol
Big Data &
Analytics
Mass data &
Semantics
Mobile
and Cloud
Access to
Information
anytime
anywhere
Smart products, assets, and human beings in a
hyper connected world
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Connected Manufacturing
5 Scenarios of Connectedness
5 Scenarios:
4
Quality Operator
Supplier
Mfg Collaboration
4
5
Machine Cloud
1. Shop floor to Top floor
Intra company vertical
integration
2. Machine to Machine
Autonomous machines
E-Commerce
Service Provider
Consumer
3. eCommerce Integration
Direct integration of online
configurators
ERP
5
MES
1
1
SCADA
Manufacturing
Company
Machine
Layer
2
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4. Manufacturing Collaboration
- Visibility
- Genealogy
- Quality
- Kanban / Direct replenishment
5. Machine Cloud
- Predictive maintenance
- Predictive quality
Next Generation Process Visibility SAP MII & SAP Visual
Enterprise Currently In Development (Planned for MII 15.1 Q4 2015/Q1 2016)
SAP
AG. All
rights
2014
2015
SAP
AG
or reserved.
an SAP
affiliate company. All rights reserved.
888
Connected Manufacturing: Manufacturing Data Across the
Enterprise
Currently In Development (Planned for MII 15.1 Q4 2015/Q1 2016)
SAP
AG. All
rights
2014
2015
SAP
AG
or reserved.
an SAP
affiliate company. All rights reserved.
999
SAP Connected Manufacturing
Cloud / On-Premise / Shop Floor
public cloud
Monitoring
Powered by SAP HANA
Process & Production Planning
Cloud fully integrated with on premise investments
SAP Business Suite
(ERP, APO, )
Logistics
on-premise
SAP FIORI
Shop Floor
SAP Manufacturing Suite (SAP ME, MII, PCo)
DCS
PLC
Manual Data Entry
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MES
Plant DB
Plant Data
Collection
Plant
Historian
Wireless
Integration
LIMS
SCADA / HMI
Environmental
Building Management
Automatic Data Entry (Machine Connectivity)
11
Integration Architectures for Industry 4.0 & IoT Scenarios
Scenario
Application
Connectivity
Connected Plant
Smart Plant with SAP
Manufacturing Execution Suite
(SAP ME, SAP MII, SAP PCo)
SAP PCo
Shop floor connectivity
Platform
SAP HANA Platform for IoT
(Optional *)
Available
Assets
SAP Manufacturing Execution
Comprehensive Application
Hundreds of live Customers
Connected Assets
Connected
Logistics
Predictive Maintenance
& Service, Cloud Edition
Smart Logistics for Ports
Fleet Management
SAP IoT Connector
Device Connectivity
Partner Solution
Connectivity into truck
on-board units
Partner Solution / SAP
IoT Connector
Device Connectivity
Connected Car
SAP HANA Platform for IoT
Real time visibility, predictive, big data analysis, benchmarking
Custom Development
Projects (Kaeser)
Standard Product IoT
(GEA)
Custom Development
Projects
Custom Development
Projects
Industrial Automation / Industry 4.0
Internet of Things (IoT)
* IoT is optional; mainly for future scenarios like Analytics cross Supply Chain (Production
Network)
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13
Prove Points in Manufacturing
Business Priority Summary
Mill Products
Building Products
Responsive Manufacturing
With SAP solutions, companies can develop real-time visibility into manufacturing operations, optimize manufacturing processes and
asset performance, and collaborate in global manufacturing and supply chain networks while lowering costs and exceeding customer
expectations. Companies can execute quality management processes to prevent deficiencies, enable continuous process
improvements, and sustain quality control.
Design-to-order and project manufacturing
Offer custom-designed and
engineered solutions for profitability
and competitive differentiation.
Make-to-order manufacturing
Offer highly customized solutions
with short lead times, on-time
delivery, high quality, and low cost.
Production execution and visibility
including make to stock
Align and automate production
execution activities for continuous
monitoring and control.
Quality management and compliance
Exceed expectations for quality
management and compliance.
12%
Higher capacity
By aligning manufacturing objectives
and operational activities*
17%
Higher return
on assets
Where asset management systems
are fully integrated*
Asset operations and maintenance
Ensure assets stay up and running
with effective maintenance planning,
scheduling, and dispatching.
Bruynzeel Keukens
Joris Ide Group
Wienerberger
SAP solutions enable building products companies to maximize return on assets and create
custom products through:
Enhanced productivity and reduced manufacturing costs
Reliable and compliant products by managing lifecycle quality levels
HBIS Tangshan Iron and Steel
SAP solutions provide streamlined processes for a variety of industry value chains by
integrating horizontal lines of business with industry-specific solutions on premise, in the
cloud, and through mobile devices.
Visit us online
Benchmark your performance
SAP Solution Explorer
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16
Use Case Scenarios in Metal
Metal industry
Use case cold rolling mill
Description
Starting of coating line leads to losses during calibration phase.
Potential
Shortening of calibration phase reduces losses and so costs.
Solution approaches
Real-time analysis of BIG DATA
Analysis of historic data with predictive methods
to improve real-time analysis
Integrated analysis of data of different machines
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18
Metal industry
Use case product quality
Description
Cost pressure leads to operation of machines at lower limit with ongoing reduction of safety tolerances.
Potential
As more precise the machines can be operated as lower the danger of quality issues and to run into related
product depreciations.
Solution approaches
Real-time analysis of BIG DATA
Usage of predictive methods for maintenance
Integrated analysis of data of different machines
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19
Metal industry
Use case creation and operation of production assets
Description
Metal companies often operate machines of different manufacturers resulting in many different processes and
machine data formats for interaction.
Potential
An aligned approach of asset manufacturers and operators can lead to improved processes and lower costs.
Solution approaches
Harmonized definition of data and processes
Nee distribution of business tasks
New business models
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20
Metal industry
Use case customer service by real-time
Description
Customers expect high quality, low costs and reliable information at increasing lower time horizons for order,
last changes and deliveries (Amazon for Steel)
Potential
A seamless connection and usage of data in sales, procurement through production up to delivery is the base
for competitive advantages.
Solution approaches
Harmonized definition of data and processes
Handling of real-time data
New business models
2015 SAP AG or an SAP affiliate company. All rights reserved.
21
Internet of Things in Manufacturing Will
Connect
Transform
Re-Imagine
Improve your products and services by adding
cyber capabilities
Take advantage of Industrie 4.0 technologies to
improve your own processes
Enable new business models for yourself and your
customers
2014 SAP SE or an SAP affiliate company. All rights reserved.
2015 SAP AG or an SAP affiliate company. All rights reserved.
22
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Questions?
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