A Business View of mySAP PLM LifeCycle Data Management for Process Industries

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A Business View of mySAP PLMLife-Cycle Data
Managementfor Process Industries
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Structure
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• How has Product Lifecycle Management evolved ?
• The technical view on mySAP PLM
  Lifecycle Data Management - Recipe Management
• What can I expect from my SAP PLM Investment ?
• The Customer (and Analyst) View

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Traditional Product Development Process
Customer
Customer
Delivery/Service
Manufacturing
Engineering
Marketing

• Information silos
• Sequential flow of information
• Does the customer receive what she requested
  for?

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Turn Sequential Processes into a Collaborative
Network
Customer
BrandOwner
Component Supplier
ContractEngineer
ServiceProvider
Manufacturer
Customer
Collaborate with business partners - Exchange
insights to achieve product leadership
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mySAP Product Lifecycle Management
Customer Relationship Management
Supply Chain Management
Product Lifecycle Management
start of production
obsolescence of product/part
first idea
end of production
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What is Product Lifecycle Management?

• mySAP Product Lifecycle Management Provides an
  End-to-End Solution for
• Product related best practice processes
• Product innovation and development
• Production ramp up and engineering change
  management
• Maintenance management
• To foster inter- and intra company collaboration
• For improved flow of information
• Open integration of operational systems(i.e.
  CAx, CRM, SCM)
• Buyer Vendor Supplier value networks
• To bring the right products to market, at the
  right time, at the right cost

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Value is Created by End-to-End Solutions
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Structure

• How has Product Lifecycle Management evolved ?
• The technical view on mySAP PLM
  Lifecycle Data Management - Recipe Management
• What can I expect from my SAP PLM Investment ?
• The Customer (and Analyst) View

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A recipe has many sources
Plant Engineer
Chemist
Recipe Management
Equipment
Formula
Procedure
Process Engineer
Controller
Prod. Planner
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A recipe serves many purposes

• Costing
• Materials
• Orders

Recipe
Product Development
Equipment
Formula
Procedure

• Supply Chain
• Planning
• Supply Network Planning
• Detailed Scheduling

Quality Management

• Manufacturing
• Execution
• Process Control
• integration
• Operator instructions

Process Control
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Recipe Management ISA S88 compliant
General Recipe

• Specification of material and process
• Enterprise level
• Area specific specification
• Site level
• Definition of material and process
• Plant level
• Production execution
• Batch and equipment level

Site Recipe
Site Recipe
Master Recipe
Master Recipe
Control Recipe
Control Recipe
Control Recipe
Control Recipe
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Recipe Management What is it about ?

• Recipe Management is designed to
• To support the development process of a
  recipe/product
• To start with high-level information, and extend
  it to detailed specification and process
  definitions.
• To manage a controlled development of recipes
  over different levels
• To support integrated communication between
  different departments
• Target customers
• Process industries - mainly CPG, Chemicals and
  pharmaceuticals
• Target Users
• Users in the RD department (may be centralized)
• Defining and developing new products
• Maintaining existing product
• Users of the local (production) sites
• Generating local, executable recipes based on
  central managed products

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Recipe Management Key Capabilities

• Specification management
• Flexible and adaptable to specific customer
  requirements
• Material master independent product/raw material
  definition
• Can be used in combination with SAP PLM EHS
• Multilevel recipe management
• At enterprise, site/area and plant level
• ISA S88 Standard compliant
• Flexible management of dependent information
• Composition, Nutrition, Material list, and so on.
• Part of the product lifecycle process and linked
  toother processes / functions
• Project Management, Document Management
• Vendor/customer collaboration, Quality
  Management
• Purchasing, Planning, Manufacturing and Process
  control
• Flexible reporting and label generation functions

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New Product Development Lifecyle
Concept Development
Specification Initiation
Specification Development
Specification Conversion
Specification Management
Specification
Change Management
Create Plant Operating Formula
Initiate Stage Gate Process
Enter Product Definition
Vendor Collaboration
Link to Materials/ BOM Gen.
Recipe Management
Label Management
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Specification Management
Product Specification

• PRODUCT
• Properties/attribute 1
• Properties/attribute 2
• Properties/attribute 3

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Recipe Management Recipe Structure
Recipe
Product/ Outputs
Formula
Ingredients/ Inputs
Process Instructions
Equipment Requirements
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Label Management

• Full support for multiple languages
• Font Size is automatically calculated
• Flexible label generation based on different usage

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Recipe Development on different levels
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PLM and SCM Integration
Supply Chain Management
Product Lifecycle Management
Purchasing, Planning
Recipe Management
General Recipe
Site Recipe
Manufacturing Execution, Batch Management
Master Recipe, BOM
Quality Management
Inspection plan
Inspection lots
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Recipe Management Benefits

• Integrates knowledge from the idea up to the
  final product
• Centralized access to recipe information across
  the extended SC
• Manage and generate the product master data for
  the Supply Chain
• One Source of data
• Information sharing, Integration business
  areas, suppliers,
• Better knowledge exchange
• Data Consistency
• Better control of development
• Time control
• Cost control
• Resource control
• Work/Process flow
• mySAP PLM w/ Recipe Management covers the
  development process
• Reduce time to market
• Better communication internally and externally
  (Collaboration)
• Information and knowledge management

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Structure

• How has Product Lifecycle Management evolved ?
• The technical view on mySAP PLM
  Lifecycle Data Management
• What can I expect from my SAP PLM Investment ?
• The Customer (and Analyst) View

è
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Benefits of PLM to Your Company

• Increased Revenues
• develop more innovative products and explore new
  market opportunities by exchanging ideas quicker
• make the right decisions by sharing up-to-date
  information with all people involved in
  engineering, procurement, production and service
• capture higher market share by reducing time to
  volume along with a close integration to supply
  chain management and procurement

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Benefits of PLM to Your Company

• Reduced Costs
• achieve lower cost-to-market by managing the cost
  of changes and evaluating the progress of
  projects across product lines
• reduce maintenance costs and increase equipment
  availability by providing up-to-date as-built and
  as-maintained information to maintenance and
  service.
• increase product quality by having product
  quality designed in right from the beginning

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Benefits of PLM to Your Company

• Competitive Advantage
• reduce time to market by turning sequential
  processes into activities that can run in
  parallel
• increase customer satisfaction and responsiveness
  by developing products that better reflect the
  customer and market demands
• better focus on your core competencies by closely
  collaborating with your best in class suppliers

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Structure

• How has Product Lifecycle Management evolved ?
• The technical view on mySAP PLM
  Lifecycle Data Management
• What can I expect from my SAP PLM Investment ?
• The Customer (and Analyst) View

è
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Perception Drives Reality..

• The voice of Customers and Analysts (Examples)
• Faster access to up-to-date-information
• In engineering companies thousands of documents
  are created, changed, retrieved and replicated.
  With mySAP PLM we can save more than 300.000 DM
  per year. (Source Konrad Wegener, Schuler
  Pressen)
• Process cost savings due to usage of consistent
  data
• 18-30 annual savings in engineering to
  manufacturing processes, ROI 3-5 years
  (Source AMR, the SAP Advisor on mySAP PLM,
  May 2001)
• Collaborative product development benefits
• Reduce collaborative design review process from
  12 days to 2
• (Source AMR Research, February 2001)

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Summary - What is PLM?

• Product Lifecycle Management (PLM)
• mySAP PLM enables companies to get the right
  product to market at the right time, at the right
  cost - resulting in increased profitability and
  competitive advantage.