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© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 1
Carlos PortilloEMEA Business Development,
LoB Manufacturing & Sustainability
Internet of Things and Industry 4.0 facilitating the future of Manufacturing
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 2
Staying ahead of Industry 4.0 | The automated agile manufacturing revolution [SCM Track 8]
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3Internal
Internet of
contentInternet of
people
Internet of
things
IoT is connecting information, people, and things
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
Unprecedented change fueled by hyperconnectivity
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
The Internet of Things
US$65 trillion
Global business trade by 2020
2.5 billion
Connected people on social
networks by 2020
75 billion
Connected devices by 2020
Public
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
The Internet of Things is not about ‘things’
reimagining
business processes
reimagining
customer experience
reimaging
human behavior
IoT is about…
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
SAP enables IoT from core to edge
Cloud
Platform
Connect to people and things
Connect with intelligence
on the edge
Reimagine business
models
Monitor assets and send alerts
Transform business
operations
Reimagine business with
value-added services
Reimagine product
design
Reimagine customer
experience
Build real-time supply
chainsData
acquisition
Optimize corporate
planning and reporting
Real-time insights and
automated decision-making
Tap into the world’s largest
business network
Reimagine employee
experience
Enable responsive
manufacturing
7© 2015 SAP SE or an SAP affiliate company. All rights reserved.
© 2014 SAP SE. All rights reserved. 8Internal© 2014 SAP SE. All rights reserved. 88
Industry 4.0 - The world of manufacturing continues to change The fourth industrial revolution
Internet of ThingsConnected via one protocol
Mobile ComputingAffordable access to
information
Social MediaKnowledge sharing
in communities
Big Data &
Predictive AnalyticsUnderstanding and
extrapolation
Machine 2 MachineSelf regulation
Key Enablers
End of the
18th century
Early 70s Beginning of
20th century
Today *Source: DFKI (2011)
1st Industrial Revolution
adoption of mechanical production facilities
by using water and steam power
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
4th Industrial Revolution
based on cyber-physical
systems
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 9
Industry 4.0 – Driving InnovationBuilding blocks for Industrial Internet of Things
…
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Accelerate the Enterprise SuccessHigher Productivity due to Simplification
MES
Automation
ERP
(1) Top Floor to Shop Floor
Need for SMART SIMPLIFICATION
How to accelerate and grow productivity and profitability in complex business
environment? How to run business and production seamlessly integrated?
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Accelerate the Enterprise SuccessGrow Productivity due to Simplification
SAP ERP, IBP
SAP MES
SAP PCo to
Automation
Consumer/
customerBusiness
Networks(1) Top Floor to Shop Floor
(2) Customer to Operations
» Simplify
» Harmonize
» Reduce
Need for SMART SIMPLIFICATION
How to accelerate and grow productivity and profitability in complex business
environment? How to run business and production seamlessly integrated?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 12
Internet of Things and Industrie 4.0SAP Connected Manufacturing runs Industrial IoT with Industrie 4.0 scenarios
Internet of Things
Internal INDUSTRIAL scenario External scenario
SCADA / HMI
Machine Layer
MES
ERP
1
Industrie 4.0
» All industries
» All things and devices
» Manufacturing industries
» OT- IT Convergence
» Systems, things and
devices in the Shop floor
SMART THINGS
SMART DEVICES
SMART industrial THINGS
SMART industrial DEVICES
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SAP Connected ManufacturingApplication Focus
Overall Equipment
Effectiveness
Process
Enforcement and
Execution
Manufacturing
Performance Product Quality
Energy
Monitoring
Product
Networks
Production
Traceability
Process
Optimization
Manufacturing
Execution Suite
Cloud Platform
S/4 HANA
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SAP Business Suite 4 HANA
Co
nn
ecte
d
Pro
du
cts
Connected ManufacturingC
on
ne
cte
d
Asse
ts
Real-time Network Insights
Production Planning
Materials Management
Quality Management
Plant Maintenance
SAP ME
SAP MII
SAP QIM
SAP PCo
3D Visual Enterprise
Demand Logistics SchedulingOrder
Fulfillment
Human Resources
Automation
Shop Floor Dispatcher
Sh
op
Flo
or
public cloud
on-premise
private cloud
LIMSMES SCADA / HMI
Plant Data
Collection
Wireless
Integration
Environmental
Building Management
Plant
HistorianPlant DB
DCS
PLC Sensors
Product NetworksPersonalized Solutions – Product Networks – Design/Produce/Operate
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MONITOR
SAP Connected ManufacturingThe Connected Plant in the Extended Supply Chain
DESIGN PLAN RESPOND PRODUCE DELIVER OPERATE
ERP
» Production plan
» Bill of materials (BoM)
» variant management
» production steps
» Serial Numbers
» Quality results per lot
» Order confirmation
» Inventory update, Equipment usage
» Production details management
» Detailed and flexible
» production step routing
» Shop floor controls for each step
» Log parametric data
» tolerance checks
» Return „conformance“ or „non-conformance“ decisions
» Mapping of ME production details
to PLC control parameters (recipe)» Mapping of ME production details to PLC control
parameters (recipe)
» Sensor detects material carrier
» Requests control parameters from ME PLC(Machine)
» Machine reports completion and requests next operation
MES(ME & MII)
PCo
Co
nn
ec
tors
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SAP Responsive ManufacturingInnovation to Help You Run Better
» SAP Manufacturing
Execution
» SAP Manufacturing
Integration and
Intelligence
» SAP Shop Floor
Dispatcher and Monitor
» SAP Complex Assembly
Manufacturing Solution
(CAMS)
» 3D Visual Enterprise
» SAP Manufacturing
Integration and
Intelligence
» SAP Manufacturing
Execution
» SAP Business Objects
» SAP HANA in-memory
analytics
» SAP Visual Enterprise
spatial analytics
» SAP ERP Quality Issue
» SAP Complex
Manufacturing
Accelerator
» SAP MII
» SAP ME
» SAP Work Manager
» SAP Round Manager
» SAP Quality
Management powered
by SAP HANA
» SAP Material
Requirements Planning
powered by SAP HANA
» SAP Overall Equipment
Effectiveness
Management powered
by HANA
» SAP MII – Microsoft Co-
innovation
» SAP MII on HCP
Applications AnalyticsDatabase &
TechnologyMobile Cloud
Powered by HANA
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Production Planning and Scheduling
Manufacturing Execution
Quality Planning and Control
Performance Visibility and Monitoring
SAP Integrated Manufacturing Solution
ERP PP
APO PP/DS
Shop Floor Dispatcher
MII
ME
3D VE
CAMS
ERP QM
MII
ME
QIM
3DVE
ERP
MII
ME
Dashboards
BOBJ
HANA Analytics
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Context of Industry 4.0 along Systems & Business PartnersIntegration Scenarios
Integration Scenarios
Shop Floor to Top Floor
Machine to Machine
e-commerce Integration
Machine Cloud
Direct Replenishment
…
1
Service
Provider
E-CommerceConsumer/
customer
Machine Layer
SAP Manufacturing
Execution Suite
SAP ERP, PLM, APO,
IBP
Supplier
3
Machine CloudBusiness
Networks
2
3
4
5
6
1
2
3
4
5
4
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 19
Po
we
red
by S
AP
HA
NA
Process & Production Planning
Logistics
public cloud
SAP MII
on-premise
SAP FIORI
SAP Manufacturing Execution Suite (SAP ME, SAP MII, SAP PCo)
Manual Data Entry Automatic Data Entry (Machine Connectivity)
Sh
op
Flo
or
SAP Connected Manufacturing StrategyCloud / On-Premise / Shop Floor
LIMSMES SCADA / HMI
Plant Data
Collection
Wireless
Integration
Environmental
Building Management
Plant
HistorianPlant DB
DCS
PLC
Cloud fully integrated with on premise investments
private cloud
Predictive
Maintenance
Sensors
© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 20
Thank You
Carlos Portillo
EMEA Business Development
LoB Manufacturing & Sustainability
carlos,[email protected]
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21Internal
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