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Smart Factory—powered by SAP solutionsIntelligent manufacturing for the ‘built to evolve’enterprise Connected. Transparent. Agile.

Smart FactorySmart Factory—powered by SAP solutionsIntelligent manufacturing forthe ‘built to evolve’ enterpriseConnected. Transparent. Agile.Manufacturing leaders see the writing on the wall. The future of the factorywill be smart—driven by intelligent tools and processes. In fact, 86% ofsurveyed manufacturers believe that smart factory initiatives will be themain driver of manufacturing competitiveness in the next five years.The possibilities for “smart” processes are virtually limitless, yet manyorganizations can struggle with defining and beginning the journey—unsure of how to effectively deploy new solutions and how to make animpact that matters.Smart Factory—powered by SAP solutions01A solution in sight02From possible to real03What does Smart Factory look like?04A few possibilities for intelligent manufacturing05Potential benefits06The Deloitte difference07Let’s talk

Smart FactoryA solution in sightTo help leaders more confidently transform manufacturingand support tomorrow’s digital supply chains, SmartFactory by Deloitte combines industry-specific servicesplus a portfolio of innovative SAP solutions. The offering isdesigned to help you envision, build, and run the futureready factory and enable intelligent capabilities that gobeyond the traditional “four walls” of the shop floor.Smart Factory is focused on helping manufacturersoperate more efficiently, effectively, and securely with anintegrated and intelligent production environment thatcan deliver new levels of insights, service, and bottom-linevalue for your business. The offering brings together arange of transformation services from Deloitte, as well asSAP Industry 4.0 solutions and other SAP technologies:0102Advisory Smart Factory services Deloitte SAP Digital Manufacturing Transformation Strategy Deloitte Smart Factory Capability Diagnostic Deloitte cybersecurity maturity assessment03Smart Factory technology implementation SAP S/4HANA Manufacturing04 SAP Digital Manufacturing Suite SAP Manufacturing Execution SAP Manufacturing Integration and Intelligence SAP Plant Connectivity Shop Floor Operations Technologies Design & IntegrationModular, flexible, and scalable shop floor operational services Application management services (AMS) for shop floor technologies[Operations Technology (OT) & Information Technology (IT)] Evaluating the performance of OT-IT applications, interfaces, andequipment integration Establishing a governance model to enable the effective delivery ofservices to support the shop floor Implementing monitoring tools to increase the visibility of daily operations Delivering services efficiencies through equipment automation, robotics,and AI solutions050607

Smart Factory01From possible to real02Deloitte’s Smart Factory offering can deliver a more connected,autonomous, insights-driven, and predictive production environment drivenby intelligent technologies. It can also help support the “built to evolve”Kinetic Enterprise —an intelligent, cloud-enabled enterprise capableof moving at the pace of disruption, operating with a clean core and aninclusive ecosystem of capabilities. The solution supports the vision of thedigital supply chain and helps enable responsive manufacturing capabilities,providing functionality such as:03040506IoT and vision analytics via cloudIntegration of the shop floor withSAP solutions for manufacturingand back-office processesCentralized, data-drivenmanufacturing insightsLabor tracking and efficiencySmart Factory key capabilities: Autonomous process control Total operations synchronization Operations command center Digital process twin Augmented workforce Dynamic operations sensing07

Smart Factory01From possible to real02As a “services plus solutions” offering, Smart Factory can help you understandwhat’s possible for transforming manufacturing and then take action in ameaningful way. Whether it’s bringing predictive, intelligent capabilities to aspecific production line or undertaking an end-to-end transformation of yourentire manufacturing and logistics environment, Smart Factory can allow you tothink big, start small, and then scale fast—to unlock value while getting aheadof challenges and reducing risks.0304050607

Smart FactoryFrom possibleto realSmart Factory leverages machine intelligence,connected sensors, advanced analytics, controltower capabilities, and other intelligent toolsto help you address a number of potential usecases, including:01Factory Asset Intelligence andPerformance ManagementApply data science tools to provide insightsaround optimizing factory floor operationsExample: Plant control towerQuality Sensing and DetectionPrevent quality issues in real time while reducingthe need for human qualityinspections Example: Predictive qualityanalysis toolsPlant Consumptionand Energy Management02Leverage contextual data to optimize energyusage and reduce overhead costsExample: Asset auto-idle03Smart Warehousing SolutionsAutomate warehouse operations by analyzinginventory distribution and use rates Example:Warehouse management systemSmart ConveyanceFactory Synchronization &Dynamic SchedulingCoordinate scarce factory resources foroptimized manufacturing and operationalactivities Example: Asset location trackingAugmented Workforce EfficiencyImprove workforce efficiency through enhancedtechnologies and equipmentExample: AR/VR workforce trainingEnhance warehouse material transfers usingdigital orders and autonomous vehicles Example:Autonomously guided vehiclesEngineering Collaboration Digital TwinUse product performance data to improvedesign, engineering, and production Example:Specification adjustment04050607

Smart Factory01What does Smart Factory look like?02With Smart Factory from Deloitte, you can beginto shape future-facing capabilities. Smart Factoryenables a flexible system that can enhanceperformance across a broader network, selfadapting and learning from new conditions inreal time or near real time, and autonomouslyrunning entire production processes across fourkey areas:ConnectedSecureSecurity is the foundation of theprogram in all aspects of the design,architecture, and deploymentAssets outfitted with smart sensors04Real-time security monitoringIntegration with suppliers andcustomers (sensor and data)Integration with security andtechnology solutions (OT & IT)Integrated data model betweenoperational and business systemsCyber risk management programTransparent03050607AgileReal-time data visualizationProcess anomaly detectionRole-based viewsAutomated replenishmentReal-time tracking and monitoringReal-time safety monitoring

Smart FactoryA few possibilitiesfor intelligentmanufacturingWith Smart Factory from Deloitte, you can beginto intelligently transform production processesin a number of areas. Possibilities include:01Automatically trigger quality checkswith sensor-driven capabilitiesMake the shop floor moreproactive, acting on deviationsin production processes sooner,perhaps even before they occurUse digital twin capabilities tolet workers simulate scenarios,and monitor and serviceequipment remotely—as ifthey were really thereLeverage camera and imagerytechnologies to identify issues,inspect assets, and track andguide production processesConnect intelligent technologiesto back-end SAP systems todrive insights and transactionsOptimize warehouse operationsand transportation02030405Enable energy-efficient “smartbuilding” capabilities andexpand them throughout theproduction environment—fromthe front door to the factoryfloor to the loading dockOptimize labor and boostlabor efficiency0607

Smart Factory01Potential benefits02With Smart Factory and help from Deloitte, you can begin to build amore responsive manufacturing environment, support digital supplychain network capabilities, and deliver measurable bottom-line valueto your organization. Here are some potential results you could see. Greater insights and information transparency for intelligentlyautomated processes and decision-making Increased operational efficiency Increased factory capacity utilization (20% vs. typical 11% overall)2 Increased labor productivity (19% vs. typical 12% overall)3 Increased production output (18% vs. typical 10% overall)4030405 Improved order fulfillment rates Predictive, intelligently automated processes06 A more connected, integrated IT/OT and process landscape A unified, real-time view of operational data Agility and responsiveness to address current needs and futuredisruption—and to support the “built to evolve” Kinetic Enterprise Reduced supply chain risk Greater overall impact from transformation, withquality implementation of new technology07

Smart Factory01The Deloitte difference02Specializing in total supply chain transformation,Deloitte operates at the intersection ofbusiness and technology. Our diverse teamof professionals understands not only how tohelp deploy SAP solutions effectively—but howto align those technologies with the way youoperate and with your business goals. It’s aboutmore than integrating digital and manufacturingtechnologies. It’s about deeply understanding thedetails and the demands of your business—andthen prioritizing them to help you makean impact.Focused. Our worldwide team of more than25,000 SAP specialists brings a testedmethodology for creating value with the“built to evolve” Kinetic Enterprise—an intelligent,responsive, cloud-enabled organization poweredby a clean core and an inclusive ecosystemof capabilities.Experienced. When you work with Deloitteto transform manufacturing operations,you get access to our deep industry-specificexperience—which grows daily as we helpenterprise leaders across the globe solvecomplex business challenges. Our relationshipwith SAP dates back more than 30 years,with a lengthy history of collaboration andco-innovation.Deloitte brings end-to-end capabilities, fromthe shop floor to enterprise systems, servingglobal clients across different industries in SmartFactory projects and IoT implementations. And tohelp clients reduce implementation time, we alsobring to bear several innovative Several SmartFactory assets and accelerators—designed tospeed time to value. Among them: Deloitte’sSmart Factory Capability Diagnostic, whichcan enable companies to understand theirmanufacturing maturity and digital readinessacross 10 business functions, assisting them indeveloping a Smart Factory roadmap.Recognized. Deloitte has a trophy case full ofawards showing that we understand what ittakes to help clients deliver real-world resultswith SAP solutions—earning us the 2019 NorthAmerica SAP Ariba and SAP Fieldglass Services Partner of the Year (2019) Award as wellas multiple SAP Pinnacle Awards, including:SAP S/4HANA Partner of the Year—Large Enterprise (2016, 2017, 2018, 2020)SAP S/4HANA Cloud Partner of the Year—Large Enterprise (2020)The inaugural Digital Partner of the YearAward (2019)Finalist: SAP Ariba Partner of the Year—Large Enterprise (2019)0304050607