SAP Design To Operate (D2O)
SAP Design To Operate (D2O)
SAP Design To Operate (D2O)
November 2019
SAP Vision and Strategy
Similiarily, information from databases are read in a column wise manner. This is faster than row wise reading.
Mainframe & PCs Client Server & Internet Cloud, Mobile & Big Data Intelligent Technologies
1960s – 1980s 1990s - 2000s 2000s - 2010s 2010s - 2020s
ENABLING TECHNOLOGIES
• Transistors & silicon • Widespread PC adoption • Mobile & Smartphone • Machine learning (ML) and
revolution • Broadband Internet ubiquity artificial intelligence (AI)
• Large scale Mainframe • ERP and business • Cloud Computing • Internet of things (IoT) and
Computing adoption process technologies • Social Networks distributed computing
• Emergence of PC’s • Big Data • Blockchain
• Plant floor automation
Today
High volumes Low profitability Industry 3.0 Industry 4.0 Industry 5.0
• Adoption of mechanical • Adoption of work- • Use of electronics and • Based on cyber- • Mass customization and
production facilities by sharing mass IT to automate physical systems cyber-physical and
using water and steam production by using production cognitive systems
power electrical power • Digital supply chain
• Greater personalization
• Smart manufacturing for mass-produced
• Connected products goods
and services • Flexible and integrated
• Digital business models value chain networks
• Virtualized processes
All businesses will be driven by human experiences. Like, buying something from Amazon
for a dinner night. That's something based on human experience.
Operational data is related to "What is happening". Experienced is related to "why its happening"
Lead to cash = Find someone willing to use your service and put the money in the account.
If you look at the process from an experience pov, you see Motivation, Value, Enjoyment, Impact, Loyalty
Experience gap is the gap between what CEO's think their product is worth and what their product is actually worth in the eyes of their customers. This experience gap is worth
trillions of dollars.
Design to Operate
Lead to Cash
Design to Operate
Source to Pay
Assets
Plan
Pl
lan an
P
Manufacturers
Manufacturers
Customers
an
Pl
Individual Entities
Suppliers Customers
Assets
Suppliers
Assets Customers
Suppliers
Suppliers Manufacturers Suppliers
Customers
Customers
Suppliers
Manufacturers
Customers
Suppliers
Suppliers
Suppliers
Customers
Customers
Suppliers Customers
Customers
Customers
Customers
Customers
Logistics
Logistics
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Digital Supply Chain – Design
Business value for R&D/Engineering
SAP PLM = Procuremen, manufacturing,quality assurance. for successful simultaneous product
design from different departments.
lan
Pl
an
revenue streams 40%
P
shorter lead times with
Synchronized planning processes flexible rules-driven
Eliminate planning silos through connected supply-demand matching.
and integrated planning processes SAP Performance Benchmarking
End-to-end visibility
Pl
an
Provide visibility on strategic, tactical and operational
levels across internal and external data 12%
an
Demand&Forecast Management
Inventory Planning
Sales and supply chain departments have to translate sales into theSales & Operations
production Planning
plant input information. Strategic &
Tactical
Once the long-term production plan has been created
it must be translated into a short-medium term plan Master Planning + RCCP
Replenishment Planning
Operational
Material Req. Planning
Scheduling Plant Scheduling
Supply-To-Line
Manufacturing
Manufacturing Execution
Minutes Days Weeks Months Years
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
SAP Integrated Business Planning
Calculates inventory targets for the whole multistage network (finished goods, components and raw materials)
Here?
How much
inventory
here?
Customers
Suppliers
SUPPLY DEMAND
Lead-time uncertainty Service level targets
Schedule variability Forecast error / Bias
Production batch sizes Intermittent demand
Supply reliability Outlier sales
SAP IBP for inventory prescribes inventory activity to maximize
Capacity restrictions Multiple service levels
Multiple supply sources
profit while buffering uncertainty Seasonality/promotions
60%
Increase
40%
Inventory ($)
20%
0%
Decrease
-20%
-40%
-60%
90% 92% 94% 96% 98% 100%
Customer Service Level (%)
Optimal inventory Company current performance
Pl
an Faster more efficient execution 28%
an
Demand&Forecast Management
Inventory Planning
Sales & Operations Planning Strategic &
Tactical
Master Planning + RCCP
Replenishment Planning
Operational
Material Req. Planning
Scheduling Plant Scheduling
Supply-To-Line
Manufacturing
Manufacturing Execution
Minutes Days Weeks Months Years
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
Connect top floor to shop floor
The other two pilars are enabled by the cloud.
3) Big data analysis
4) Digital twin and IoT
The software and hardware are both on the customer's side. On premis.
SCADA / HMI
SAP IoT
MACHINE LAYER
SAP Digital
Manufacturing SAP S/4 HANA SAP Intelligent Asset OEM Cloud
Cloud Enterprise Management Management
On the shop floor you have different vendor's machines with different softwares on each. The goal is to orchestrate all these machines in a centralized way with the information
from the ERP. You can push the info from the ERP down to the machine. This was done in an isolated way, but now its different. See example in video
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
SAP Digital Manufacturing – The Distributed Manufacturing Challenge
Gaining Full Visibility and Improving Operations Globally
Plant 5
Plant 1
Region
Plants 3 & 4
Plant 7
Plant 2
Plant 9 Plant 6
Plant 8
Logistics Networks
Pl
Benefit of these technologies, is that the operator can interact with goods directly and also the business data is synced throughout. You need to connect augmented
reality as well as the ERP together for such a level of mutil-department interaction
Enhance your storage and inventory management processes – and support goods
movement by all modes of transportation
Connected assets
Bring together information from operational and business
systems using IoT for scalable transparency
O&M – E&C
The power of prediction, optimization and Management
simulation
S/4HANA \ ECC
Drive smarter decisions, improve reliability, and reduce SAP Cloud Platform
outages leveraging IoT capabilities
Processes
Confirm /
Order Schedule Review Work Perform Analyze and
technical
planning & dispatch and Asset work optimize
completion
You sell the service that your asset is capable of providing to the customer.
People
and roles
Processes
Confirm /
Order Schedule Review Work Perform Analyze and
technical
planning & dispatch and Asset work optimize
completion
People
and roles
Processes
Confirm /
Order Schedule Review Work Perform Analyze and
technical
planning & dispatch and Asset work optimize
completion
Is the foundation V
for Industry 4.0 and the Internet of Things
D
I
2
7
7
0
Consume Publish
Publish Consume
Engineering Simulation
Fluids Semiconductors Multi-physics Engineering Models
Structures Systems
Electronics 3D Design
ANSYS
SAP
Internet of Things
Big Data
Cloud Platform
You have ALL the information related to an asset in one place in one common user interface
Operator Manufacturer
Products &
Assets
As Operated – Strategic
Partnership with ANSYS®
Pl
lan an
P
Suppliers Manufacturers Suppliers
Customers
Asset Central
provides a
common master and transactional
Asset Central data Suppliers
layer, a set of out-of-the-box
Manufacturers integrations to SAP back-end
*artic windCustomers business and Internet of Things
Pl solutions and standard basic
an
an
functionalities enabling common
Pl
Suppliers
Suppliers
next generation product and asset
modeling and management.
Customers
Customers
Suppliers Customers
Assets
Customers
Assets
Logistics
Assets
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
Introduction and SAP Strategy
EXPERIENCE BUILD
People & Data Differentiating
Digital Apps
EXTEND INTEGRATE
Cloud & Apps, Data
On-Prem Apps Customer
& Processes
Partner
SAP Apps
Apps 3rd
Party
BUSINESS APPS
BUILD
Differentiating Cloud Applications
Digital Apps INTEGRATE
EXPERIENCE Apps, Data SAP Applications
& Processes
People & Data Customer Specific Applications
3rd Party Applications
Environments NEO
Multi-Cloud
SAP IoT
*Planned Service
Earth
Observation
Service
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
ESA Copernicus Program
ESA is developing a new family of missions called Sentinels
Only 6sensors
placed on bridge to get a complete
condition monitoring solution
24/7
Monitoring of bridge condition
Revenue
Why SAP
• Innovative solutions and technology to improve maintenance processes based on the SAP HANA platform
and Big Data analysis
5,000
€5.5 billion • Implemented the SAP Predictive Maintenance and Service solution to support real-time monitoring of the Signals sent per train every second,
train fleet thanks to sensors on board
SAP® Solutions • Used algorithmic predictions and indicators for dynamic planning
SAP® Predictive Maintenance
and Service solution, the SAP After: Value-Driven Results
HANA® platform, and SAP IQ • Scaled large quantities of data in SAP IQ, reducing required in-memory storage
software • Gained insight into real-time diagnostics to make better decisions
• Improved asset reliability and service, thanks to predictions and error forecasting
• Reduced maintenance costs
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