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
• Manufacturing Execution System ERP
provides effective integration
between production processes and
enterprise business systems. MES
• Layer of communication between
business and control systems
SHOP FOOR AUTOMATION
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 SAP PP or PI
Procedure
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 SAP / PP or PP PI
volume
High speed real time MES
data 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 MES / SAP xMII

measurements with
simple statistics
Real time MES / SAP xMII
measurements with
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 & SAP
Tracking
Compliance/Traceabili MES or xApp
ty
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 & SAP xMII
Automated 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 SAP APO PPDS
with a Large Supply Chain

Complex, Very Large, Non- SAP APO + MES or

linear Recipes Consider xApp
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 SAP / Document Management

Regulatory Compliance System
Complex WF with SAP + MES+ Document
Regulatory Compliance Management
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 SAP HR
Functionality
Training Compliance SAP/MES
during 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 SAP Plant Maintenance
functionality
Real-time Condition SAP Plant Maintenance + MES
Based Maintenance
Agenda

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

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

Manufacturing
Intelligence • Universal Connectivity to the data,

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

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

Map
MES Requirements
Detail plan for pilot and
Design
Identify gaps rollout
MES Architecture

Develop Deployment
Plan
Develop global processes,
Integration touch points

Pilot

Roll 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