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2016 Future Direction of Innovations in ManufacturingS/4 HANA for ManufacturingSAP Manufacturing Execution Suite Manufacturing Engineering Production Planning for Discrete (PP) Production Planning for Process (PP/PI) Material Requirements Planning (MRP) Quality ManagementSAP ME SAP MII Industry 4.0, Energy Monitoring, Analytics ContentSAP PCo 2016 SAP SE or an SAP affiliate company. All rights reserved.Industry 4.0, HANA Analytics, Integration, ConfigurationIndustry 4.0, Configuration, PerformanceConfidential18

Manufacturing Innovation RoadmapManufacturing Execution – Product LandscapeSAP Manufacturing Execution SystemSAP Manufacturing Integration & IntelligenceSAP ERP or S/4 HANASAP ERP or S/4 HANAEnterpriseSAP MIISAP MIIShop FloorSAP MESAP PCoWorker UIMachine EntryRange of use» Integration & Intelligence» Reporting & Analytics» Individual Scenarios and UseCases» Worker UI Pre-delivered E2E integratedcontent delivered with MII to drivePlant Performance Managementon the Production Shop floor –covers manual, automatic andsemi automatic scenariosTarget Industries» All Manufacturing IndustriesHighlights» Highly Extensible 2016 SAP SE or an SAP affiliate company. All rights reserved.SAP PCoME PODRange of use» ManufacturingExecutionSystemTarget Industries» Discrete IndustriesMachine EntryHighlights» Tracking & Tracingon SFC / Serial Number» Non Conformance Handling» Interlocking» Production Data Acquisition» KPIs, Reporting & SPC» Highly ExtensibleCustomer Page 19 19

SAP Manufacturing Execution - SAP MEMain DifferentiatorsSAP ME – What is it? Manufacturing Execution System for the discrete industriesSAP ME – Main Differentiators ERP Integration “out of the box” Controls Production of every single unit (Lot Size 1) Easy interaction with shop-floor automation layer Unit Level Tracking & Tracing / GenealogyWhat operation, tool or machine was used, where parts came from, etc. Comprehensive nonconformance management including in-line samplingand ability for visual test and repair Process Interlocking High Flexibility and Extensibility; pure SOA based architecture Role specific access and personalized dashboards for operators Provides flexible production process modeling without additionalprogramming Active Community of partners and customers High Usability with pure Browser Based UIs 2016 SAP SE or an SAP affiliate company. All rights reserved.CustomerPage 20 20

SAP Manufacturing Integration and Intelligence (SAP MII)Main DifferentiatorsSAP MII – What is it? Extensible manufacturing platform allowing rapid adaption to anymanufacturing processSAP MII – Main Differentiators Integration: Provide interoperability (in)between Shop Floor solutionsand enterprise ERP (PP, PM, MM, QM) Intelligence: Visualize data from any of above sources to provide KPIs.Provide simple and efficient local User Interface and Dashboards Innovation: Powerful SOA-enabled business logic to cover for customerspecific processes around Planning, Execution, Maintenance andQuality now including versioning of any Content Allows Fast prototyping to achieve fast ROI Broad and extensive Partner Network Applicable to all Manufacturing Industries and Utilities2016 SAPSAPaffiliatecompany.All rightsreserved. 2015SAPSESEororananSAPaffiliatecompany.All rightsreserved.ConfidentialCustomer2121

Solution Today – SAP MEUsability & MobilityDescriptionKey Benefits 3D Models can be embedded in the Production Operator Dashboard Delivers a new user experience for high productivity Low training effort(POD) as Work InstructionsScenarios: Assembly, Visual Test and Repair Visualization of any HTML Pages in a POD plug-inE.g. for Display of MII Reports und Dashboards Browser-based mobile Apps for shop floor activities;easy extensibleSolution Today 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential22

Solution Today – SAP MESet Point ObjectDescriptionKey Benefits Delivers a solution to define the set point parameters outside the controllerand into the execution system for easier maintenance and update A Set Point Parameter is an entity used in Manufacturing and Automation thatidentifies a value to which a control system will strive to achieve on a particularresource, for a particular materialA Set Point Group will contain one or more set point parameters, eithernumeric or string, that are delivered to the shop floor to a specific resource forspecific products Provides a concise definition, along with features, without the overhead ofData Collection within SAP ME Provides a framework to support configurable product in the futureThe new functionality will provide PAPIs/Web Services for the master data andrun time executionSolution Today 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential23

Solution Today – SAP MESub-stepsDescriptionKey Benefits Sub-step is a new master data object that is defined under a routing step. Allows the definition of sub-steps executed in manufacturing but does notrequire the shop floor to start and complete at every sub-stepThese sub-steps typically represent a list of tasks or activities that must beperformed before a routing step is complete The goal is to minimize the amount of operator interaction with SAP ME in anoperation, yet provide the associated sub-steps that must be acknowledgedand tracked Sub-steps will allow parameter data collection, work instructions, components tobe assembled, tools to be logged, and certifications to be enforcedSolution Today 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential24

Solution Today – SAP MESAP ME on HANADescriptionDescriptionKey BenefitsKeyBenefits Adding support for in memory technology powered by SAP HANA High speed real time analytics enablement for SAP ME reporting (*3) Migration support for WIP and Archived data (*1) Selected areas for HANA specific performance optimization (*2) Data compression with HANA eliminates the need of frequentarchiving Consolidation of ODS and WIP on HANA Simplifies the overall stack for customers by reducing themaintenance cost of non-HANA database Enable use of MII SSCE for real time analytics Archiving using the HANA Dynamic Tiering (warm storage/Sybase IQ) Lower TCO solution:No separate ODS database requiredME/MII co-located on NetWeaver & HANA Align with customers HANA strategy New insights into the shop floor based on trends and predictiveanalytics with HANA capabilities Enables near real time analysis of shop floor data to identify preventiveactions1UsingWarm storage and Dynamic Tieringperformance does not meet requirements3MII SSCE and other reporting tools2WhereSOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer25

Solution Today – SAP MEIndustrie 4.0: Automation s Add out-of-the box POD plug-in auto-refresh capabilities using themessage notification framework that refreshes the UI Auto start SFC featureMachine/Carrier system/other systemoperationis aticallyoperationPODisfieldareThefirstoperationis yinselectedWorkListin thethesent dinPODOperationListSFC #SelectionOperationList that will causethe other plugins to refresh Minimizes operator interactionw/the system to focus on taskat hand Critical for more highlyautomated environmentscombined w/manual laborSFC #Via webservice orODataSOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer29

Solution Today – SAP MIISelf-service Composition efits Browser(HTML5) based design tool for dashboard creation byconsuming different MII objects Simplified interface for dashboard creation. A tool which can be used by business users also along with ITdevelopers. WYSIWYG based design Integrating tag value changes directly to browserusing web socket interface or through catalogue query template Reduce the time required for dashboard creation Source code generation for high sophisticated UIs Remove the dependency on JRE required on each of the machine Form based reporting dashboard using UI elements Build reporting application without any coding Dashboard accessibility from mobile devices 3D file integration and simplified reporting for manufacturingapplication Additional HTML5 based charts e.g. i5CommandSOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer32

Solution Today – SAP MIIEnergy monitoring & ts Enhance the core MII product to meet Energy managementrequirements e.g. maintaining hierarchies, storing time series data,and reporting capabilities against those hierarchies, Order, shift andtime series data Out of box content with core MII to manage energy consumption Reduce TCO to monitor energy consumptions Simplified software stack to collect and analyze energy consumptionSOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer33

Overall Equipment EffectivenessGlobal, Multi Site Analysis with SAP HANA and SAP MIIDescriptionKey Benefits Analysis and Real Time information on OEE, Availability,Performance and Quality on various hierarchy levels Local Data Collection and Analysis in MII Global, multi site Analysis via SAP HANA Combination of shop floor data with enterprise information Real time monitoring Cross plant analysis / Best Practice Analysis of Shop Floor with Top Floor Context 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer34

Solution Today – SAP MIIMII on HANADescriptionDescriptionKeyKeyBenefitsBenefits Run SAP MII on NW 7.40 stack with HANA as underlying database High performing In-Memory Analytics for large amount of Data (“BigData”) HANA provides the ability to store a significant and broader selectionof manufacturing data for more thorough analysis and more complexcomparison of data. Simplifies the overall stack for customers by reducing themaintenance cost of non-HANA DB New insights into the shop floor based on trends / prediction withHANA capabilities Enables near real time analysis of shop floor data to identify preventiveactions HANA provides various statistical algorithms for deep analysis,clustering and prediction The ability to manage large volumes and multiple types of dataprovides ability to develop, train and utilize predictive techniques (e.g.,regression and heuristic) for forward looking analysis.SOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer35

Solution Today – SAP PCoEnhanced nefits Basis for the three core IoT/Industrie 4.0 communication patterns: Support of Big Data Scenarios in the Shop Floor Notifications Foundation for interaction with automation layer and “Things” Queries Support of the key machine protocol architecture: OPC UA Bidirectional machine communication Near Real Time UI Support with PCo as WebSocket-Server Mass Data supply into HANA Integration with SAP ESP / HANA Smart Data Streaming Flexible WebService Orchestration (RESTful, ODATA, SOAP) High throughput performance on .Net/C# architecture Bundling and buffering of data – notification delivery retry Remote Configuration of PCo from MII Enablement of machine automation scenariosSOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer36

Solution Today – SAP MII“Remote Configuration of PCo from MII” – enablement of SAP ESP and Web Service efits Support for additional destination for remote configuration ofPCO from MII. Key feature of remote PCO are highlighted below. MII can act as the single source of truth for Master Data and especiallyfor static context Fiori based HTML5 client for maintaining PCO Notification from MII the Destination System e.g. the SAP ESP can consider the context inrules and decisions avoiding time consuming data base access Enhance the PCo notification payload with business context e.g.boiler pressure value coming along with functional location, equipmentnumber or work center ID. PCo provides Services for the Rem.Conf. from MII – these servicescan be used in later releases also for Rem. Conf. from Cloud Apps Maintain notification even when Agent is running Ability to pause a notification for certain duration without having tostop the agent Ability to export and import the notification object Ability to start and stop PCo agent from SAP MIISOLUTION TODAY 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer37

Planned Innovation – SAP MEIndustrie 4.0: Configurable s Up to real-time lot-size one production in high volume productionscenarios for addressing individual customer requirements Reduces costs associated to building customized products by enablingthe manufacturing of product variations in any given order andquantity, all on the same production line Configurable product via Variant Configuration is supported todaywithin the complete E2E process where the primary manufacturingplanning is maintained w/in ERP Producing highly configurable product at costs comparable to those ofmass production can provide a key competitive advantage New development will focus on supporting the same E2E processmore seamlessly Following objects in ME will depend upon the configuration: BOM (from ERP) Production Steps Sub-steps Automation Parameters (Set Points) Data Collection Work InstructionPLANNED INNOVATION 2016 SAP SE or an SAP affiliate company. All rights reserved.Customer38

Manufacturing Innovation RoadmapManufacturing Execution Discrete IndustriesPlannedFuture Industrie 4.0 Complex Assembly Processes Configurable Product Sub Steps Integration Continuous Cloud Based Manufacturing ServicesImprovements& Simplifications ; e.g. Integration Excellence Performance optimizations Monitoring & SafeguardManufacturing Analytics SAP ME Global HANA 2016 SAP SE or an SAP affiliate company. All rights reserved.Page 39

Manufacturing Innovation RoadmapManufacturing Integration and IntelligencePlannedFuture Enhanced PredefinedAnalytics Content - extended IntegrationScenarios with IoT / HCP – UXEnergy Monitoring & Analytics& Self Service Composition Environment Enhancements FioriLaunchpad like MII Entry Page PredefinedAnalytics Content IntegrationScenarios with IoT / HCP; e.g. for PDMS Worker extendedUI / OEE Enhancements 2016 SAP SE or an SAP affiliate company. All rights reserved.Page 40

Manufacturing Innovation RoadmapSAP Plant ConnectivityPlannedOrchestration of independent machine units by means of OPCUA capabilitiesLocal buffering of automation related master data for high- speedresponse timesFutureDecentralized autonomous agentsEdge processing enablement for allindustriesSimplified footprint for embedded systems/microcontrollers 2016 SAP SE or an SAP affiliate company. All rights reserved.Page 41

“Edge Processing” – 1. buffer data, enable ead ME data in advance:Alarms etc. Next Production Order(s) incl.DB Record Routing steps Transaction (Time Series) Set-PointsPCo buffers this data (Guaranteed)Notification Delivery,Machine requests dataBuffer mechanisms,Filter/Rule Framework,PCo responds frombufferCustomerspecific code, PCo manages posting to MEasynchronousDevice Tag (Data Point)PMMMERP, S/4, ry(e.g. MII, ME, HANA, HCP )C.synchronousService CallsResponse from buffer 50 MillisecondsQuery-Interface(Read/Write)PCoBuffer andOrchestrationData Source/MachineDevice Tag (Data Point)(e.g. OPC UA-Server) 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential42

“Edge Processing” – 2. orchestrate independent machine unitsB.QueryA.Notification1.2.3.Event occurs onInsights,MachineAlarms etc.Unit XDB toRecordMachine UnitY needsTransaction(Time Series)be notified/triggeredPCo can be configured to(Guaranteed)execute communicationNotification Delivery,between unitsBuffer mechanisms,Filter/Rule Framework,Customer specific code, PMMMERP, S/4, ry(e.g. MII, ME, HANA, HCP )C.synchronousService CallsPCoPCo becomes a“SOFT PLCwith Business Logic”Query-Interfacefor OPC UA Client/Server(Read/Write)bundlesBuffer andOrchestrationDevice Tag (Data Point)Data Source/MachineDevice Tag (Data Point)(e.g. OPC UA-Server) 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential43

Key Takeaways SAP Connected Manufacturing is a key enabler for Industry 4.0. SAP Connected Manufacturing is a key component of our IoT Strategy. SAP Manufacturing supports HANA today with SAP MII and SAP ME. SAP Manufacturing extends the investments our customers have made in ECC through MRP,Production Planning, Scheduling, Inventory Management, Quality Management and Maintenancedown to the value on the shop floor. 2016 SAP SE or an SAP affiliate company. All rights reserved.Page 44

“We are convinced that manufacturing in the digital worldrequires a completely new approach how to run the shopfloor. Therefore our solution is much more connectedand intelligent in order to empower production workers,re-invent flexibly manufacturing processes and toincrease responsiveness. We build Industry 4.0.”Bernd LeukertMember of the Executive Board SAP SE 2016 SAP SE or an SAP affiliate company. All rights reserved.Confidential45

Where to find more informat

SAP Manufacturing Integration & Intelligence SAP Manufacturing Execution System SAP ERP or S/4 HANA Enterprise SAP MII Worker UI Machine Entry SAP PCo Shop Floor Range of use » Manufacturing Execution System Target Industries » Discrete Industries » Highlights » Tracking & Tracing on SFC / Serial Number » Non Conformance Handling .