Industry Innovations With SAP Leonardo: Mill Products

Industry Innovations with SAP Leonardo:Mill Products IndustryStefan Soeller, Industry Business Unit Mill Products & Mining, SAPPUBLIC

AgendaDigitalization in Mill ProductsMill Products Use Cases for SAP Leonardo Connected Manufacturing Connected Products Predictive Maintenance Predictive Quality Connected Fleet Precision Forestry Construction Site Logistics 2017 SAP Leonardo Live. All rights reserved. I PUBLIC2

What is mill products?Forest products Solid wood Plywood Particle boardMining, nonferrous metals Mining Copper AluminumCement and concrete CementReady-mix concreteConcrete productsAggregates 2017 SAP Leonardo Live. All rights reserved. I PUBLICPulp and paperPackaging Brown paper Fine paper HygieneFabricated metals, cablePrimary metals Metal servicecenters Cable And more Flat steel Long steel AluminumBuilding products BathroomWindowsCeramicsGlassGypsumPaper packagingPlastic packagingAluminum packagingGlass packagingTextiles FlooringRoofingFurnitureInsulation Yarn and fibers Fabric Carpet and rugs3

Digital trends transforming the mill products industryDigitalization will impactall end- to-end processes.New players enter andchange business.Need for innovation is notdebatable.68%65%E-commerce GrowthOf mill CEOs worry aboutnew rivals from otherindustries disrupting theirsectors.Of enterprises are alreadyusing the Internet of Things.The first companies to use ecommerce to sell and distributetheir mill goods havedemonstrated the potential forrevenue ey/download.html 2017 SAP Leonardo Live. All rights reserved. I omer-journey/?chapter 2#chapter24

Technology trends enabling digital transformationArtificial intelligence andmachine learningHelps to reduce need for humaninteraction / automates businessprocesses 2017 SAP Leonardo Live. All rights reserved. I PUBLICCloud computingInternet of Things (IoT)Offers the quickest path tonew business models andsoftware upgradesHelps create new value, suchas improved customer service,product tracking, andmanufacturing insights5

To transform mill products companies, prioritize new business models andprocesses1. Innovative productsCustomers demand constant innovation, suchas metals or paper made from recyclingmaterial, new products with specificcharacteristics such as strength, innovativecoatings, and better processing capabilities.4. Value-added servicesDigitalization and interconnection of products andservices create additional value. An example is toadvise on the best usage of a complex product,which can drive new revenue opportunities.2. Small lot sizes and individualizationQuick order completion and delivery of tailormade solutions create additional value forcustomers.5. DisintermediationCompanies will increasingly look up, down, andacross their value chains to expand intoadditional markets.3. Customer collaborationCritical customer relationships need to bestrengthened for sustaining high customersatisfaction and retention rates. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC6

High performance delivers substantial rewardsSAP performance benchmarking shows that, compared with average performers, top performers inmill products achieve: 30%Growth in market share by integratingoffers across traditional and digitalmarketing channels 17%Return on assets where assetmanagement systems are fullyintegrated 33%Lead time for order fulfillment whensupply plans align with demand 30%Service level creating greatercustomer satisfaction and profitability 11%Overall equipment effectiveness onassets where equipment use is trackedin real time 2017 SAP Leonardo Live. All rights reserved. I PUBLIC7

The bimodal architecture of the modern enterpriseA digital core and a digital innovation systemBusinessConnect all parts ofyour business torun live withSAP S/4HANAMode 1: Digital coreMode 2: Digital innovationSAP S/4HANASAP LeonardoSAP Hybris solutionsSAP SuccessFactorssolutionsConcur solutionsSAP Fieldglass solutionsSAP Ariba solutionsIoTMachine learningBig DataModern analyticsBlockchainData intelligenceSAP HANA 2017 SAP Leonardo Live. All rights reserved. I PUBLICIntelligenceTailor, integrate,and expandthe core withSAP Cloud PlatformSAP Cloud Platform8

Mill Products Use Cases for SAP Leonardo

Connected Manufacturing

Common system architecture in the mill product industrySilos, delays, and complexity hinder business agility and innovationLimited integration between levels ERP Different technologies Different organization and responsibilitiesMES Different skills and professional profiles Often, even different codes and standardsProcess control results in Most decisions being made based on models built for approximated information and gut feeling A delay between the facts and their reflection in the information systems Detailed decisions on operations that are often only locally optimized – but not connected holistically 2017 SAP Leonardo Live. All rights reserved. I PUBLIC11

Industry 4.0-enabled architecture in the mill products industryConnect manufacturing with core business processes to increase business P SCMSAP ERPSAP MIIManufacturing executionMESSAP PlantConnectivity Reduce isolated applications Reduce media breaks Easily combine manufacturing,IoT, and core business data Take action in real time on data ofany type and volume Deliver a single source of truth andreal-time insightSmart simplification from top floor to shop floor and customer to operations 2017 SAP Leonardo Live. All rights reserved. I PUBLIC12

Internet of Things and Industry 4.0SAP Connected Manufacturing runs Industrial IoT with Industry 4.0 scenariosInternal industrial scenarioExternal scenarioInternet of Things All industries All things and devicesERPIndustry 4.0MES1SCADA, HMI Manufacturing industries OT-IT convergence Systems, things, anddevices on the shop floorSmart thingsSmart devicesMachine layerSmart industrial thingsSmart industrial devices 2017 SAP Leonardo Live. All rights reserved. I PUBLIC13

Building products companyConnectedmanufacturingOptimizing production, andreduce energy costs throughreal-time correlation ofenvironmental, technical andproduction parameters. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC14

Connected Products

Connected products Innovate through theinterconnection of products andservices Connect, monitor, and controlproducts Track, trace, and respond tochanging conditionsSAP Connected Goods – SAP Global Track and Trace 2017 SAP Leonardo Live. All rights reserved. I PUBLIC16

SAP Global Track and Trace vision:Leverage IoT for real-time insights into your extended supply chain – multitier, end-to-endConnected IoTDevices and automationBusinesspartneronboardingProducts and cargo 2017 SAP Leonardo Live. All rights reserved. I PUBLICOnboard unitsSAP Global Track and TraceEventsMultitier logisticsnetwork y countingStatusFood pedigreeand safetyLocationServicesVisibility forcustomerand consumerConditionSupply e andservicesThis presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is providedwithout a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 17

Predictive Maintenance

Predictive maintenance Optimize the performance,availability, and quality ofmanufacturing Maximize equipment uptimethrough predictive maintenance Optimize manufacturing byadapting Industry 4.0 conceptsSAP Asset Intelligence Network – SAP Predictive Maintenance and ServiceSAP Manufacturing Execution – SAP Manufacturing Integration and Intelligence 2017 SAP Leonardo Live. All rights reserved. I PUBLIC19

SAP Asset Intelligence Network – bridging operators and manufacturersVisual audit andname-platerecognitionCommissioningand handoverSpecificationsand visual workinstructionsServicebulletins,recalls, andwarrantyEquipment registerAsset ction,and calibrationresults sharingModel databaseManagement of“”equipment asa service”Spare partsmanagement 2017 SAP Leonardo Live. All rights reserved. I PUBLICBusiness contextfor t andprocess)Analysis ofequipmentperformance20

Predictive Quality

PoC Steel manufacturerPredictive qualityAnalysis of 300 parameters per slabmore accurately predicts defects andresults in 75% reduction in qualitychecks needed 2017 SAP Leonardo Live. All rights reserved. I PUBLIC22

Paper manufacturerPredictive qualityReal-time sensor data of severalPLCs and camera-based defect data.Support for machine operator withpreset production parameters, alertsindicating quality issues, andproduction data acquisition. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC23

Connected Fleet

Connected fleet Collect, map, store, andanalyze moving assetsdata in real time Optimize your supply chainand logistics processes Gain full visibility ofproducts, spare parts,product stocks,and movementsSAP Vehicle Insights – SAP Networked Logistics Hub – SAP Global Track and Trace 2017 SAP Leonardo Live. All rights reserved. I PUBLIC25

Mining companyConnected fleetAnalyzes tire sensor data, truck load,environmental factors, and operatorbehavior. Delivers results that changeoperator training, speed guidelines,and road layouts, and increase tire life. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC26

Precision Forestry

Precision Forestry: DronesCollect field data with autonomous aerial vehicleFast data collection with an autonomous aerial vehicle to captureaerial images on forests or very small areas. Processing andanalysis of data with the SAP HANA platform, which provides fastand precise information to optimize insight for the forester and toprovide support. 2017 SAP Leonardo Live. All rights reserved. I PUBLIC28

Precision Forestry: Vehicle analyticsOptimize production and increase yieldObtain a detailed, geobased overview of blocks, activities, and yieldmaps. Plan and optimize block tasks based on sensor and weatherdata. Monitor equipment and field tasks (such as those conductedby contractors in real time). 2017 SAP Leonardo Live. All rights reserved. I PUBLIC29

Construction Site Logistics

Construction site logisticsConceptBusiness needs Timely deliveries to construction sites, such as ready-mix concrete Adaptability for many last-minute changesProcess innovationOptimize deliveries, trucks, pumps,and collaboration Accommodation of limited space at the construction site andsurrounding area Collaborative scenarios of construction companies, logistics providers,building materials suppliers, and equipment and machinery companiesTechnology opportunity Real-time data, such as GPS, sensors, weather, and traffic Real-time network (SAP Cloud Platform) for any party involved pluseasy onboarding Real-time collaboration with mobile devices and natural languageprocessing 2017 SAP Leonardo Live. All rights reserved. I PUBLIC31

Construction site logisticsConceptBusiness logic and appsDelivery appConstructionsite cloudSite manager appConstruction sitemanager GinaConcretedispatcher JimConcrete batching plant(production plant)Productionsupervisor BillMachinery provider appDriver appGeofenceconstruction siteGeofenceproduction plantConstruction site –elementary schoolTruck driver SamSensor drum 2017 SAP Leonardo Live. All rights reserved. I PUBLICGPS signal truck32

Next steps: conduct an “explore” workshopHow do we find the rightinnovation path?What “use cases” havebeen prioritized, designed,implemented?For each innovation use case: What is the game plan?Outputs: Prioritized business scenarios anduse cases Design challenges and game plan Stakeholder map What are the design challenges? Who are the stakeholders?How do I see innovation in action?Visit SAP Leonardo Centers in New York or Palo Alto, California 2017 SAP Leonardo Live. All rights reserved. I PUBLIC33

Thank you.Contact information:Stefan SoellerSolution ManagerIBU Mill Products & Miningstefan.soeller@sap.com

The bimodal architecture of the modern enterprise A digital core and a digital innovation system Mode 1: Digital core SAP S/4HANA SAP Hybris solutions SAP SuccessFactors . SAP SCM SAP ERP SAP MII Manufacturing execution MES SAP Plant Connectivity Smart simplification from top floor to