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© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 1 Carlos Portillo EMEA Business Development, LoB Manufacturing & Sustainability Internet of Things and Industry 4.0 facilitating the future of Manufacturing

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Page 1: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 2: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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]

Page 3: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 4: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 5: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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…

Page 6: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 7: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

7© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Page 8: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 9: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 9

Industry 4.0 – Driving InnovationBuilding blocks for Industrial Internet of Things

Page 10: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 10

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?

Page 11: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 11

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?

Page 12: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 13: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 13

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

Page 14: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 14

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

Page 15: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 15

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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© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 16

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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© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 17

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

Page 18: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Page 18

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

Page 19: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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

Page 20: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 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]

Page 21: Internet of Things and Industry 4.0 facilitating the ... · PDF fileInternet of Things Connected via one ... » All things and devices » Manufacturing industries ... Process Optimization

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21Internal

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

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SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate

company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

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National product specifications may vary.

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affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and

services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as

constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop

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