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Digital Supply Chain for ManufacturingSAP Strategy and RoadmapVeronika Schmid-Lutz, Chief Product Owner, Digital ManufacturingSeptember 11th , 2019PUBLIC

DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other serviceor subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any relateddocument, or to develop or release any functionality mentioned therein.This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions andfunctionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in thispresentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for aparticular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAPassumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or grossnegligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially fromexpectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,and they should not be relied upon in making purchasing decisions. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

The Intelligent EnterpriseThe Foundation of a Digital Supply ChainNetwork & SpendManagementCloud PlatformPeopleEngagementThe Intelligent Enterprisefeatures 3 key components:1Intelligent Suite2IntelligentTechnologies3Digital PlatformIntelligentTechnologiesDigital CoreDigital SupplyChainCustomer Experience 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICIntelligentSuiteAIMachine LearningAnalyticsIoTDigitalPlatformData Management3

Digital Supply Chain Design to OperateConnect Digitally to Perfect iersCustomersCustomersCustomers 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICLogisticsCustomersLogisticsCustomers4

SAP Digital Manufacturing SolutionsA complete portfolio of manufacturing solutions to support digitalization and Industry 4.0SAP Digital Manufacturing Cloud Manufacturing Insights Predictive Quality Manufacturing ngManufacturingInsightsSAP Manufacturing SuiteManufacturingEngineeringEnvironmentalHealth & Safety SAP Manufacturing Integration and Intelligence SAP Manufacturing Execution SAP Plant ConnectivityIndustrialAutomation ConnectivityPredictive QualityManufacturing NetworkMachine Learning 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANA Manufacturing for Production Engineering and Operations for Planning and Scheduling Environmental, Health & Safety7

SAP Digital Manufacturing CloudAutomate processes and resources to improve manufacturing efficiency, quality and productivityPaperless production with intuitive user interfaces for productionoperators, automatic data collections and set machine parameters,thereby lowering cost, increasing productivity and quality.Design, distribute and dynamically control manufacturing shop flooractivities enabling a smart factory.Shift and Labor planning to ensure business operations with rightqualifications. Production Order scheduling and dispatchingconsidering labor, resource and maintenance constraints to planoperations and adopt to short term changes.Cross plant real-time analytics for manufacturing performance e.g.Perfect Order Fulfillment, Overall Equipment Effectiveness, lossanalysis along with machine data to identify improvementopportunities.Ability to collect and share product genealogy data betweenmembers of the network to trace accountability and providetransparency. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC8

SAP Manufacturing Suite (On-Premise)Automate processes and resources to improve manufacturing efficiency, quality and productivitySeamlessly connect top-floor to shop-floor operations to achieverapid return on investment with out-of-the-box integration to SAPsolutions. Provide your plants real time enterprise information toinclude latest supply chain changes into your agile operations.Enables global manufacturers to efficiently produce productsaccording specification, ensuring quality, full traceability, for manualand highly automated processes.Paperless production with intuitive user interfaces for productionoperators, automatic data collections and set machine parameters,thereby lowering cost, increasing productivity and quality.Monitor and document the entire manufacturing process tooptimize resources and execution, reacting quickly to unexpectedevents utilizing the built-in intelligenceConnect your Operational technologies like logic controllers,devices, plant historian systems of your various manufacturingsystems. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC9

Production Engineering and Operations (PEO) in S/4 HANAIntelligent Handover from Engineering to ManufacturingConvert product design into holistic production process designused for material and production planning, production ordermanagement and shop floor execution.Orchestrate, control and document all changes done tomanufacturing objects via Change Record ManagementPerform comprehensive change impact analysis to identifyobjects which are affected by changes, and decide how andwhen to introduce the changeDefine production process on different levels of granularity withinone combined routing, addressing:- costing and planning needs on operation level- shop floor needs on activity level3D visual support for BOM management, routing definition andinteractive work instruction authoring. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC10

SAP Manufacturing SuiteSelected Highlights

SAP Manufacturing nceERP Integration “out of the box”Easy integration with shop-floor Automation layerLot Size 1 and Mass CustomizationUnit Level Tracking & TracingComprehensive Nonconformance ManagementProcess InterlockingHigh Performance with HANAFlexibility & AgilityExcellenceHigh Flexibility and ExtensibilityPure SOA based ArchitectureFlexible Production Process Modeling withoutadditional programmingUsabilityExcellencePure Browser Based UisRole specific access and Personalized Dashboards foroperators 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

SAP Manufacturing SuiteOverall Equipment EffectivenessDescription Collect all OEE relevant informationmanually (Operator UI) or automatically (via PCo) OEE Analytics Single, common framework for all plants Cross plant performance comparison 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICKey Benefits Provide real time performance information Identify best practice Continuous Improvements14

SAP Manufacturing SuiteSelf Service Composition EnvironmentDescription Browser(HTML5) based design tool for dashboard creation byconsuming different MII objects WYSIWYG based design Integrating tag value changes directly to browserusing web socket interface or through catalogue query template Source code generation for high sophisticated UIs 3D file integration and simplified reporting for manufacturingapplication 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICKey Benefits Simplified interface for dashboard creation. Reduce the time required for dashboard creation Dashboard accessibility from mobile devices Remove the dependency on JRE required on each of the machine Build reporting application without any coding15

SAP Digital Manufacturing CloudSelected Highlights

SAP Digital Manufacturing Cloud for executionOrchestrate and control the shop floorGlobalExecutionMultiplant Monitor the entire manufacturing process tooptimize resources and execution Role-specific Fiori and operator dashboards Production Operator Dashboard (POD) is fullyconfigurable, supports drag/drop and preview Operator OEE dashboards to monitor OEEand manage downtime events. Resource Orchestration to manage shop floorwork flow and labor assignments Automation interfaces to provide for shop floordriven manufacturing events and datacollection 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC18

SAP Digital Manufacturing Cloud for InsightsKey Performance IndicatorsManufacturing Insights can provide insight on real-time sensor data, transactional/operational data from the ERP/MES Systems andcalculated KPI’s which can help manufacturers to know what happened in manufacturing at the very first timePredefined and customized KPIGlobal Manufacturing Insights Monitor performance using standardized keyperformance indicators (ca. 18 KPIs)– Order quantity fulfillment– Quality– On-time delivery & Schedule conformance– Overall Equipment Effectiveness (OEE) Generate and measure global performanceacross regions, countries and plants Custom key performance indicators (KPI)definitions using Analytical Modeler Subscribe to alerts for ease of monitoring 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICPlant Manufacturing Insights KPI performance monitoring for a given plant Cross plant comparison of KPIs Visibility of key areas impacting the performanceof the KPI Anywhere access to real-time data on mobiledevice Drill down to find root cause of which material,work center, or order is causing the issue Governance for entire enterprise19

SAP Digital Manufacturing Cloud for ExecutionResource Orchestration & Dispatching Orchestrate labor and resources on the shopfloor to achieve maximum availability React quickly to unexpected events utilizingbuilt-in intelligence Dispatch and sequence operations to reflectthe “real world” on the shop floor Monitor the entire manufacturing process tooptimize resources and execution Reflect the reality on the shop floor byvisualizing high priority orders, machinebreakdowns, missing labor and ssMissing LaborHigh PrioOrders 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC20

Manufacturing InsightsPredictive QualityKey Capabilities3D PrintingGrindingAssemblyInspection Expose manufacturing big data (IT/OT data) inthe pre-defined manufacturing semantics Intuitive workbench to Analyze & Correlatemulti-tier data related to 3Ms of manufacturing 3Ms Machine, Material, and Method Simplify predictive model building and modellife cycle management to keep pace with theoperationsData CollectionData StratificationMachine Learning Near real-time evaluation/scoring of predictivemodels and trigger corrective actions to theright people 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC23

SAP Digital ManufacturingHybrid Scenarios and Target Architecture

ISA-M MethodologyExample for Hybrid Digital Manufacturing hingIntegrationDataMovementSAP Digital ManufacturingCloudS/4HANAERPData LakeBusiness DataManufacturing ProcessMaster nt 5Common data lakePlant 6ManufacturingNetworkPlant 7Asset CentralCommon data foundationfor master and transactional data(e.g. equipment, work order)MachineDataPlant 1Plant 2ME/MII/PCoMII-OEE/PCoRegionME/MII/PCoPlant 3 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICPlant 5PCoPlant 6MII/PCoPlant 425

SAP Digital Manufacturing CloudFuture Plans