Performix Inc: Implementing MES in SAP Landscape

Implementing MES in SAP Landscape

Sham Afzalpurkar
CEO, Performix Inc.

September 26th, 2006

Introduction
• Sham Afzalpurkar, CEO Performix Inc

• About Performix
• A Manufacturing Execution Systems company
• Developing xApps in MES space
• Significant Supply Chain, Manufacturing Execution &Track/Trace experience
• Focus on Pharmaceuticals, Process Industries and Hi Tech
• Offices in Houston, Texas with development teams in India
Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
 Why MES?
• In the last decade, ERP and SCM have NOT delivered the expected
returns
• Focus on deploying MES solution to give visibility and flexibility and
effectively manage supply chain
• Competition has forced quality products at lower cost
• Integration of ERP and MES has been a challenge
• Standards such ISA 95 provide the potential to simplify deployment
What is Manufacturing Execution System?

• Co-ordinate functions on the shop

floor to optimize the plant activities ERP
• Manufacturing Execution System
provides effective integration between
MES
production processes and enterprise
business systems.
• Layer of communication between SHOP FOOR AUTOMATION
business and control systems
Components of MES
• Core
• Material and Production Tracking
• Material Handling and Production Procedures
• Resource management and allocation
• Production Dispatching
• Data Collection
• Extensions
• Compliance
• Quality Assurance
• Performance Analysis
• Detail Scheduling
• Document Management
• Labor Management
What is ISA 95?
• Instrumentation, Systems, and Automation Society (ISA) Standard
• Standard that defines how to link Enterprise and Controls systems using a
Manufacturing Execution Systems (MES) layer.
This standard describes:
• The MES Functionality
• The Data base schema at the MES Level
• The Messages between the Enterprise system and MES
 What is B2MML?
• The World Batch Forum (WBF) has published XML schemas based on the S95 Model - B2MML
(Business to Manufacturing Markup “Hypertext” Language)

• B2MML-V0201-Common.xls
• B2MML-V0201-Personnel.xls
• B2MML-V0201-Equipment.xls
• B2MML-V0201-Material.xls
• B2MML-V0201-Maintenance.xls
• B2MML-V0201-ProcessSegment.xls
• B2MML-V0201-ProductionDefinition.xls
• B2MML-V0201-ProductionCapability.xls
• B2MML-V0201-ProducitonPerformance.xls
• B2MML-V0201-ProductionSchedule.xls
MES vendors offer solutions that overlap functionality offered by SAP
Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
Justifying MES – Business Drivers

• Visibility of data globally

• Standard processes
• Enable benchmarking and best practices
• Consistent Documentation
• Resource Utilization
• Accurate and consistent KPI
• Seamless Integration
Justifying MES - Benefits

• Increases Operational Excellence

• Lower Operating Costs

• Asset Management

• Reduced Total Cost of Ownership

Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
Manufacturing Assessment & Planning

• What are the business drivers?

• What are the organizational and process related issues?

• What should be done first – aligning manufacturing strategy with

business strategy
Business Functions (S95)

Enterprise Performance Reporting

Level 4
Demand Cost Human Resource
Planning
Supply Chain Planning
Accounting Management Business
Planning &
Sales & Material Production Warehouse Maintenance
Distribution Management Planning Management Management
Logistics

Detail Process Recipe Performance Process

Scheduling Optimization Management Management Analysis Level 3
Manufacturing
Resource Production WIP Material Production Quality
Management Execution Management History Management
Operations

Real-Time Real-Time
Execution SPC Level 2
Plant Floor
Real-Time Real-Time Control
Control Monitoring
Simple Discrete
Enterprise Performance Reporting

Demand Cost Human Resource

Supply Chain Planning
Planning Accounting Management

Sales & Material Production Warehouse Maintenance

Distribution Management Planning Management Management

Detail Performance Process

Scheduling Management Analysis

Resource Production WIP Material Production Quality

Management Execution Management History Management

ERP

Real-Time Real-Time
Execution SPC
Some PLCs
Machines & Work Centers Real-Time Real-Time
Control Monitoring
Fixed Routes, No Lot Splitting
Only Ingredients Changes
Aerospace and Automotive

Enterprise Performance Reporting

Complex Discrete
Demand Cost Human Resource
Supply Chain Planning
Planning Accounting Management

Sales & Material Production Warehouse Maintenance

Distribution Management Planning Management Management

Detail Process
Scheduling Analysis

ERP

Resource Production WIP Material Production Quality

Management Execution Management History Management

MES Thousands of parts, complex procedures, many products

Real-Time Real-Time
Execution SPC
Some PLCs
Machines & Work Centers Real-Time Real-Time
Control Monitoring
Production Lines
Semiconductor
Enterprise Performance Reporting

Demand Cost Human Resource

Supply Chain Planning
Planning Accounting Management

Sales & Material Production Warehouse Maintenance

Distribution Management Planning Management Management

ERP
Detail Process Recipe Performance Process
Scheduling Optimization Management Management Analysis

Resource Production WIP Material Production Quality

Management Execution Management History Management

many shared resources, complex routing, many products

MES thousands of parts, complex procedures
Real-Time Real-Time
Execution SPC
Some PLCs
Machines & Work Centers Real-Time Real-Time
Control Monitoring
Production Lines
Pharmaceuticals & Specialty Chemicals

Enterprise Performance Reporting

Demand Cost Human Resource

Supply Chain Planning
Planning Accounting Management

Sales & Material Production Warehouse Maintenance

Distribution Management Planning Management Management

ERP
Detail Process Recipe Performance Process
Scheduling Optimization Management Management Analysis

Resource Production WIP Material Production Quality

Management Execution Management History Management

many shared resources, large recipes, many products

MES compliance, complex procedures

Real-Time Real-Time
Execution SPC
SCADA / PCS
Equipment Trains Real-Time Real-Time
Flexible Connections Control Monitoring
Oil & Gas and Bulk Chemicals

Enterprise Performance Reporting

Demand Cost Human Resource

Supply Chain Planning
Planning Accounting Management

Sales & Material Production Warehouse Maintenance

Distribution Management Planning Management Management

ERP

Process Performance Process

Optimization Management Analysis

Production Quality
History Management

Real-Time Real-Time
SCADA / PCS Execution SPC
Equipment Trains
Real-Time Real-Time
Fixed Connections Control Monitoring

Large number of control variables, real-time optimization

MES Functionality

• Dispatching and Production

• Resource Allocation
• Quality Management
• Data Collection
• Process Management
• Production Tracking and Genealogy
• Document Control
• Performance Analysis
• Operational Detail Scheduling
Dispatching Production

• Manages the flow of production in the form of jobs, orders, batches, lots
and work orders by dispatching production to specific equipment and
personnel. Includes information that is presented in the sequence in which
the work needs to be done.

Criteria Positioning
Simple Recipe & Tracking SAP / PP or PPPI and APO

Complex Recipes MES

Complex Lot Management Consider xApp

Resource Allocation & Status

• Manage the resources directly associated with control and manufacturing.

Criteria Positioning

Manual & Simple Procedure SAP PP or PI

Manual & Automated MES

Data Collection & Acquisition

Obtains operational production and parametric data associated with production

equipment and processes. Provides real-time statuses of production
equipment and processes.

Criteria Positioning

Discrete &/or low data volume SAP / PP or PP PI

High speed real time data MES

collection or very high volume
Quality Management

• Provides real-time measurements collected form manufacturing to assure proper product

quality control and to identify problems requiring attention. Includes SPC / SQC tracking and
management of offline inspection operations

.
Criteria Positioning

Manual data collection SAP QM

Real time measurements with MES / SAP xMII
simple statistics
Real time measurements with MES / SAP xMII
multi-variable analysis
Process Management

• Monitors production and either automatically corrects or provides decision

support to operators for correcting and improving in-process functions. It may
include alarm management to handle process deviations.

Criteria Positioning
Manual SAP / PP or PPPI

Automated Systems MES

Complex Recipes MES

Production Tracking & Genealogy

• Provides status of production and disposition of work. Status information

may include personnel, materials used, current production conditions.
Includes recording of production information to allow forward and backward
traceability.

Criteria Positioning

Simple Recipe & Tracking SAP

Compliance/Traceability MES or xApp

Performance Analysis

• Provides real-time reporting of actual manufacturing operations results along with comparisons to past
history and expected results. Performance results include resource utilization, resource availability,
cycle time, conformance to schedule and standards. May include SPC / SQC analysis

Criteria Positioning
Simple Manual & Automated SAP xMII
Systems
Complex Recipes or MES + SAP XMII
Advanced Analysis
Operations & Detailed Scheduling

• Provides sequencing based on priorities, attributes, characteristics and production

rules. It is finite and it recognizes alternative and overlapping operations to calculate
timing of equipment loading

Criteria Positioning
Simple Discrete Processing with a SAP APO PPDS
Large Supply Chain
Complex, Very Large, Non-linear SAP APO + MES or Consider xApp
Recipes
Document Control

• Control records and forms that must be maintained with the production unit. Includes work
instructions, recipes, drawings, standard operating procedures (SOP), batch records, shift to
shift communication. It sends instructions down to operations and device controls

Criteria Positioning
Simple Work Flow SAP
Simple WF and Regulatory SAP / Document Management System
Compliance
Complex WF with Regulatory SAP + MES+ Document Management
Compliance
Labor Management

Provides status of personnel. Includes time and attendance, certification tracking, as well
as preparation work as basis for activity–based costing. May interact with resource
allocation for optimal assignments.

Criteria Positioning
Standard HR Functionality SAP HR
Training Compliance during SAP/MES
execution
Maintenance Management

• Functionality for maintaining equipment and tools. Ensures equipment and tools
availability for manufacturing. May also include scheduling for periodic or preventive
maintenance. Maintains history of past events to aid in diagnosing problems.

Criteria Positioning
Standard PM functionality SAP Plant Maintenance

Real-time Condition Based SAP Plant Maintenance + MES

Maintenance
Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
SAP MES Architecture

APO
Demand SNP PPDS Global
Planning ATP

SAP R/3
BW Materials Production Quality Plant Human
Management Planning Management Maintenance Resources

xMII
Intelligence Dashboard Integration

Master & Transaction Data S95

MES xApps/Composite Apps

OPC

LIMS Historian PAT SCADA Devices Doc Mgmt

Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
SAP MES Integration Options

• Use SAP xMII – Preferred

• Build your own XI integration

 SAP MES Integration Using xMII
• SAP xMII enables real-time transactional integration
Enterprise between plant floor and enterprise (SAP ERP) systems
SAP NETWEAVER out-of-the box thru:
Other SAP Bus. Solu tions

• Universal Connectivity to the data, functionality and

Manufacturing
Intelligence processes of existing plant floor systems and SAP

SAP BI
Dashboards • Advanced composite application capabilities for creating
automated events, KPIs and alerts, and new
manufacturing business processes
• Synchronization of SAP ERP with real-time Plant Floor
SAP Manufacturing Systems and Processes using proprietary and standards-
(mySAP ERP) compliant messages and workflows
• Data Services that provide a foundation for
XI Manufacturing Synchronization and Intelligence
SAP xMII
Manufacturing Intelligence
Manufacturing Integration

Plant Floor
MES Integration with SAP – Using xMII
PEOPLE

SAP Enterprise Portal

INFORMATION
SAP R/3, SCM, BW…

Integration
SAP xMII

B2MM
Use xMII Integration capabilities if S95 Non Compliant
L Msg

Shopfloor Application – ANSI/ISA-95 Compliance

= SAP
= 3rd Party Application
Agenda

• Overview of MES
• Justifying MES
• Developing MES Strategy
• MES Architecture
• Integration Strategy
• Implementation Plan
• Lessons Learned
MES Deployment Strategy

• Understand the problem you are trying to solve

• The business drivers
• How you deploy has impact on cost and scope
• Integration with Process Control and other applications
• Change in the business processes
• Facility readiness
 Analyze manufacturing processes
and develop MES requirements

Map requirements with SAP

Functionality.
Assessment
Assessment

Map
Map
MES Requirements
MES Requirements

Design Detail plan for pilot and rollout

Design
Identify gaps MES
MES Architecture
Architecture

Develop
Develop Deployment
Deployment
Plan
Plan
Develop global processes,
Integration touch points

Pilot
Pilot

Roll
Roll Out
Out
Review Pilot results

Start Ramp-up
Why Pilot?

• Enhance understanding of MES

• Determine how well current requirements fit into an MES

• Validate the Integration strategy

Scope of Pilot
• Should cover end to end processes
• Team
• Project Lead
• SAP Expertise – MM/PP/PI, QM, APO
• Automation Expertise
• QA/QC
• Integration/xMII
• Plant Floor
• Timeline
• About 3-4 months
Take Aways

• There is an overlap of functionality offered by SAP and MES

vendors
• Perform detail MES requirement mapping with SAP functionality
• Make the decision up front where the functionality resides (SAP or MES)
• In many cases SAP + xMII + xApp could meet your requirements
• For complex processes, compliance and regulatory
requirements, consider third party MES solutions
• xMII is the preferred Integration solution in the SAP landscape
• Start with an end to end pilot
Session Code:
0707