Solution in Detail Manufacturing ETO and Project Manufacturing

Solution in Detail
Manufacturing
Executive Summary
Solution Overview
Contact Us
ETO and Project Manufacturing
2013 SAP AG or an SAP affiliate company. All rights reserved.
Executive Summary
Solution Overview
Contact Us
Simplifying Complex Manufacturing

Managing Complex
Manufacturing
Enabling Complex Builds
Efficient management of highly complex, variable, and tightly controlled

manufacturing is a challenge requiring technology that provides the necessary
process controls while quickly and accurately controlling product variation.
Improving Processes
SAP Innovations
Manufacturers face challenges on many fronts
today: increased global competition, technical
issues in accommodating changing customer
requirements, government and industry
regulations, and the need for rapid response
to demand fluctuations. Together these require
an adaptable manufacturing process.
Incorporating new technology to compete in the

evolving marketplace is critical. The engineerto-order (ETO) process supported by SAP
software allows for definition of each customers unique requirements, integrates innovative
solutions, and minimizes expenditures of time
and money by reusing common products and
processes within the manufacturing lifecycle.
Companies are incorporating innovations such

as graphical bills of materials, mobile technology, cybersecurity, and multiplatform, multinational IT support. But these innovations are
not always fully integrated, which means that
manufacturing processes are suboptimal.
Manufacturers must monitor market dynamics

and employ innovation with a complete,
responsive, harmonized, and integrated
solution that efficiently manages process
and product cost and quality.
This environment is complicated by the need

to comply with expanding government and
industry oversight.
2 / 27
2013 SAP AG or an SAP affiliate company.

All rights reserved.
Executive Summary
Solution Overview
Contact Us
Integrated Answer for Complex Builds

Managing Complex
Manufacturing
Get the intuitive solution needed to build complex, highly regulated products.
Manage configuration information and processes, including changes. Integrate
graphic design into the build to simplify comprehension. Manufacture deliverables
and components, enforcing regulatory and customer-driven requirements.
Improving Processes
SAP Innovations
39%
Lower manufacturing cycle
time where quality system has
simplified data sharing and
integration of inspection
planning with related
applications
Accelerate the design-to-delivery cycle by

effectively managing complex designs. Comprehend faster using multimedia instructions.
Computer-aided process planning ties
multimedia work instructions with the bill of
materials (BOM) for various types of work such
as assembly, fabrication, rework, and tooling.
Project manufacturing keeps track of the

complex processes required to engineer,
manufacture, and deliver complex configurable
products.
Visual manufacturing graphics tie the BOM to

work instructions. BOM management provides
engineers with tools to create multilevel product
structures with closed-loop BOM validation
from design through delivery.
Efficient manufacturing execution, in

conjunction with scheduling and shop-floor
process controls, quality management, and
as-built records, provides for efficient and
high-quality production.
Production deviations can be recorded
and tracked for closed-loop disposition
and corrective action.
Source: SAP Performance

Benchmarking
3 / 27

Executive Summary
Solution Overview
Contact Us
Proficient Manufacturing Control

Managing Complex
Manufacturing
Improving Processes
For manufacturers, efficiency and intuitiveness of processes can make the

difference between success and failure. Best-run manufacturers optimize
profitability and resource expenditure by efficiently managing production definition
and change. This allows them to provide their products at minimum cost. SAP
facilitates this outcome with its integrated planning and execution solutions,
resulting in:
SAP Innovations
Reduced change incorporation cycle time
Accelerated design-to-delivery cycle
47%
Lower manufacturing cycle
time for organizations in
EMEA where control of
processes is through pullbased production schedules
Improved manufacturing profitability

Improved accuracy of finished products
Reduced quality and compliance costs
Source: SAP Performance

Benchmarking
4 / 27

Executive Summary
Solution Overview
Contact Us
SAP Innovations
Managing Complex
Manufacturing
SAP assists in bringing technology innovations to the manufacturing supply chain.

These innovations accelerate comprehension, simplify and expand communication,
and enhance visibility to target activity, avoiding disruptions and speeding designto-market.
Improving Processes
SAP Innovations
Manufacturing innovations are providing new
ways to reduce costs throughout the business:
Cloud solutions can simplify implementation,

track remote assets, eliminate physical borders,
and manage cost and risk. They provide a
unified answer for manufacturing issues such
as vendor coordination and multiplant manufacturing, and enhance communication.
Analytics solutions help optimize all areas of

manufacturing from start to finish organizing
and managing business processes and costs.
Mobile solutions provide report and shop order
data wherever the Internet is available on a
choice of devices. Manufacturers can accomplish more with less, tailoring access to tasks
at hand while improving quality and profitability
in the face of increased complexity and
competition.
SAP software accelerates complex assembly

manufacturing by coupling product visualization
with mobile and cloud technology to boost
productivity throughout the product lifecycle.
Visualization using 3D graphical navigation and
search helps a companys diverse departments
to center on the product. The resulting quality,
operational productivity, and time-to-market
improvements increase a companys
competitive advantage.
5 / 27

Executive Summary
Solution Overview
Contact Us
ETO Software Spans Manufacturing Needs

Solution Overview
Process Planning, Scheduling
Visual Manufacturing
Project Manufacturing
Manufacturing Execution
ETO and Project
Manufacturing
Why SAP?
Process Planning and Scheduling

Define and organize tasks and resources globally to adapt to changing customer
and production needs.
Use leading 3D visualization technology to unify and accelerate the design-tomanufacturing process.
Track engineering, manufacturing, assembly, shipping, and installation processes
for an order.
Display, manage, and record highly engineered, changing data for production parts
and processes.
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Executive Summary
Solution Overview
Contact Us
Managing Complex Manufacturing

Solution Overview
Process Planning,
Scheduling
Visual
Manufacturing
Project
Manufacturing
Manufacturing
Execution
Manufacturing
Business
Operations
Define
Planning
Define
Product
Define
Product
Life Cycle
Manage
Released
Orders
Plant
Operations
Resource
Planning
Maintain
Product
Structure
Capacity
Leveling
Maintain
Resources and
Tools
Production
Operations
Maintain
Orders
Display Product
and Process
Structure
ETO and Project
Manufacturing
Why SAP?
Display and
Execute Orders
Engineer-to-order processes
leverage project, definition,
and execution functionality to
synchronize all aspects of a
products manufacturing
cycle.
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Executive Summary
Solution Overview
Contact Us
Process Planning and Scheduling

Solution Overview
Capabilities
Benefits
Technology Innovation
Integrate BOMs with text, tools, and

graphics to create and maintain shop
work and tool maintenance instructions
for manufacturing, rework, and
maintenance.
Planning data is tied to BOM data that is

populated from the visual manufacturing tool
from SAP or another modeling tool. Changes to
product structure are managed to comply with
engineering requirements. The plan can include
tools, specifications, graphics, and standard
data, including data collection options, icons,
and uniform instructions for key processes.
8 / 27
Planning components are validated to help

ensure inclusion in planning as part of the
closed loop for components.
Planning updates to support production may
be performed prior to or during shop execution
but not afterward (except for data integrity
reasons).

Executive Summary
Solution Overview
Contact Us
Document and Maintain Process Plans

Solution Overview
Capabilities
Benefits
Conform with engineering requirements while

smoothly integrating parts and visual graphics,
specs, tools, and related documents.
Manage production resources for manufacturing, rework, and maintenance plans to
optimize the shop experience.
Create, standardize, and maintain work
instructions, specifications, and other
documents for an integrated, accurate, and
consistent manufacturing process. Manage
serialization, batch, time-sensitive material
(TSM), data entry, and first article inspection
(FAI) features.
Document, verify, inspect, and maintain critical
tools used in process planning to achieve
correct configuration, usage, and maintenance.
Manage the ability to view and edit planning
and production information for different
organizations within and outside the company.
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Add and maintain inspection instructions to

assist in verifying compliance with internal,
customer, and government requirements.
Update work in process (WIP) where needed
due to engineering or manufacturing
requirements.

Executive Summary
Solution Overview
Capabilities
Benefits
Solution Overview
Contact Us
Integrated Solution for Managing Complex, Changing

Products
Reduce planning errors and product
lifecycle costs with consolidated,
standardized, intuitive, integrated
graphical planning and data storage
for simplified production processes.
Automate and coordinate parts and work

instruction incorporation, including visual
graphics and data storage.
Use standardized instructions to provide
consistent production and inspection text for
use throughout all facilities.
Record and manage processes and materials
with electronic buyoffs, serialization, batch,
data entry, TSM, and FAI features, simplifying
entry and recording of historical data for field
support.
Use data security by program and by field to

control collaboration by restricting the type of
data each organization can access, view, or
edit both inside and outside the company.
Integrate the management of tool usage and
maintenance. Provide visibility and control over
production with certifications.
Retrieve and maintain one or more production
orders simultaneously.
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Executive Summary
Solution Overview
Contact Us
Innovations in Process Planning and Scheduling

Solution Overview
Capabilities
Analytics solutions are now available

that can revolutionize manufacturing.
Benefits
Analytics solutions enable advanced modeling

and optimization throughout production, from
assessing resource utilization and improving
productivity to monitoring detailed stocking
information and measuring work-center
performance.
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Executive Summary
Solution Overview
Contact Us
Solution Overview
Capabilities
Benefits
Use intuitive 3D visualization to create,

maintain, and communicate process
plans, bills of material, and work
instructions. Graphically query and
maintain multilevel product structures.
Manufacturers can use 3D visualization to

create, maintain, and communicate process
plans, BOMs, and work instructions. The 3D
visualization tools enable users to graphically
query and maintain multilevel product
structures while the system manages the
underlying data. The intuitive, graphical

presentation of complex structures enhances
understanding and promotes productivity in
structuring, integrating, manufacturing, and
servicing products across global manufacturing
systems.
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Executive Summary
Solution Overview
Contact Us
Enable Efficient Manufacturing

Solution Overview
Capabilities
Benefits
Improve efficiency with visual manufacturing.

Use instance-aware product structures to
develop and coordinate BOM structures,
process plans, and work instructions.
Integrate visual manufacturing with enterprise
resource planning (ERP), product lifecycle
management, and manufacturing executions
systems.
Integrate visual/spatial and analytical data from
various sources with production instances of
components.
Graphically query, filter, and maintain multilevel
product structures while the system manages
the underlying data.
Manage extremely large, complex structures
with massive designs and data sets.
Minimize impact on computing resources.
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Executive Summary
Solution Overview
Capabilities
Benefits
Solution Overview
Contact Us
Accelerate Comprehension and Consolidate Product

Knowledge
Simply and quickly access and maintain
multilevel product structures in an
intuitive graphical manner. Enhance
understanding and eliminate unnecessary duplication of effort for complex
structures.
Product structure integration from design
completion through manufacturing and shipping
eliminates duplication of design elements. This
provides a smooth handover from definition to
execution.
Graphical tools greatly simplify the query and
maintenance of process and product data
required to support the complicated structures
associated with complex manufactured products. At the same time, they improve product
and process quality.
Integration with tools from SAP, such as for
business and production planning, minimizes
data entry and greatly reduces input time and
errors.
The SAP 3D Visual Enterprise Viewer

application accelerates work instruction
comprehension and minimizes the need for
written instructions. This is especially valuable
in high-turnover, multilanguage shops.
The end result of all these benefits is to reduce
manufacturing costs and lead times and deliver
products to the customer faster, all the while
supporting compliance with quality and safety
standards.
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Executive Summary
Solution Overview
Contact Us
Innovations for Visual Manufacturing

Solution Overview
Capabilities
Benefits
Production is simplified through use of

mobile platforms that allow devices to
display instructions and provide
analytics.
Graphics from multiple software platforms can

be rendered using the solution for visual
manufacturing from SAP. The graphics can
then be displayed on several device platforms
based on the manufacturers needs.
Metadata associated with the graphics can be

displayed using the solution and can be queried
using business analytics tools.
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Executive Summary
Solution Overview
Contact Us
Solution Overview
Capabilities
Benefits
Structure a project from initial customer

quotation through production project
scheduling. Manage work breakdown,
scheduling strategies, and project
capacities.
Use project manufacturing functionality to

manage long production cycles from product
definition through shipping, including quotation
and production phases.
Take advantage of advanced project and product scheduling, constraint-based production

schedules, and interactive simulation for what-if
scenarios.
Use work breakdown structures (WBS) to

define project tasks, materials, resources, and
capacities for logistical planning and execution.
Identify impact of added or changed production

orders. Use advanced planning and scheduling
to improve delivery rates, reduce inventories,
and react better to production changes.
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Executive Summary
Solution Overview
Contact Us
Manage Complex Product Build Cycles

Solution Overview
Capabilities
Benefits
Project manufacturing tracks engineering,

manufacturing, assembly, installation, and
shipping, keeping track of order-related
activities.
Rough-cut planning provides initial basic dates
and key resources for project orders. BOMs,
routings, and drawings are not required and
may be preliminary. Rough-cut planning is kept
separate from production capacity analysis but
can be integrated when firm.
Prototype development is supported, including
multiple integrated manufacturing activities.
WBS functionality is available to structure
the overall project. Task and relationship
networks, including material and capacity
requirements, trigger logistical planning and
execution.
Changes to project and WBS structures are
supported over a projects lifetime.
Templates are available to accelerate

structuring for both work breakdown and
networks.
Various methods of analysis and scheduling
strategies are supported, including backward/forward, finite/infinite resources, and
dates in the past allowed/forbidden.
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Executive Summary
Solution Overview
Capabilities
Benefits
Solution Overview
Contact Us
Efficient Planning Improves Complex Manufacturing

Activity
Leverage the advanced planning and
scheduling functionality for project
manufacturing to manage and streamline overall activities related to complex
custom sales orders.
Project scheduling functionality simplifies and

integrates scheduling using interactive, intuitive
tools. This provides users with current, accurate visibility into project and product scheduling, identifying constraints early in the
development lifecycle, improving production
and request for quotation/request for proposal
processes.
Resource allocation is enhanced with interactive simulation of a variety of scenarios to

minimize backlog and delays, improving
capacity utilization.
Simulation also provides greater transparency
and alerts for early detection of bottlenecks and
missing components.
Multiple scheduling strategies are available to

remove backlog and improve planning results.
Key performance indicators (KPIs) are monitored, including lead time and delay.
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Executive Summary
Solution Overview
Contact Us
Innovations for Project Manufacturing

Solution Overview
Capabilities
SAP innovations improve complex

assembly performance across the
enterprise.
Benefits
Analytics and graphics solutions enable

advanced modeling and optimization throughout every aspect of the manufacturing network,
from assessing current downstream demand to
improving new product launches.
Mobile solutions give manufacturers always-on

access to production status reporting and
exceptions and alerts, providing for simpler
processes, better decision making, and fewer
risks to customer service.
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Executive Summary
Solution Overview
Contact Us
Solution Overview
Capabilities
Benefits
Manufacturing execution for complex

assembly efficiently manages shop-floor
product and processes, scheduling
priorities, quality management, and
as-built records.
Organize and control production and other

order types by work area, worker, priority, and
operation.
Integrate standard processes, data entry,

complex data entry, and warning icons.
Display context-sensitive 3D visualization, work

documents, tools, text, specs, drawings, and
external links in a simple, intuitive way.
Manage simple or complex buy-off confirmation
processes and callboards.
Support part and process nonconformance

management integrated with order and
operation completion.
Bundle all recorded product data associated
with an order. Store it with production BOMs to
create a complete as-built record.
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Executive Summary
Solution Overview
Contact Us
Manage and Document Shop Activity

Solution Overview
Capabilities
Benefits
WIP documentation, including production and

rework orders, manages each workers access
rights to actions such as start, stop, complete
work, hold/release, split, reschedule, close,
reopen, certification, batch activity, callboards,
and more.
Work queues and assignments let work be
assigned to personal queues or grouped for
work by tasks or operations.
Visual work instructions (2D and 3D) can be
linked to parts lists and used to display
assembly or disassembly activities. Tools,
specifications, work instructions, and more are
displayed.
Performing first articles, managing timesensitive material, and tracking orders through
production are supported.
Data collection and serialization are integrated,

stored, and archived with work instructions.
Nonconformance management controls shop

quality.
Contract tool manufacturing and maintenance

activity and listing in shop orders are available.
As-built BOMs graphically display the structure

of components and assemblies as they are
completed.
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Executive Summary
Solution Overview
Contact Us
Integrated Solution Manages Complex, Changing WIP

Solution Overview
Capabilities
Benefits
Reduce cycle times and order processing costs with efficient execution
features. Minimize rework and repairs.
Reduce inventory. Assimilate users
quickly through intuitive interfaces.
Management of activity by predefined worker

privileges and certifications to match defined
production order tasks simplifies the management of work in production.
Visual links between work instructions and

product data (serialization, time-sensitive,
tooling, and other information) simplify
collection of that data. Because visualization
is so natural, it reduces collection errors and
streamlines the shop experience.
The automated display of WIP by order or

operation within natural groupings simplifies
management of workers and shop orders.
Visual work instructions (2D, 3D) accelerate grasp
of instructions and minimize issues with comprehension of the written word. This is extremely
useful in high-turnover, multilanguage shops.
Integration of first article (part) inspection

simplifies production instructions. Simplified
management of time-sensitive materials
reduces excess and expired materials.
22 / 27

Executive Summary
Solution Overview
Contact Us
Innovations in Manufacturing Execution

Solution Overview
Capabilities
Analytics solutions can now be

combined with mobile solutions to
revolutionize manufacturing.
Benefits
Analytics solutions enable advanced modeling

and optimization throughout production, from
assessing resource utilization and improving
productivity to monitoring detailed stocking
information and measuring work-center
performance.
Mobile solutions give users access to

production instructions wherever they are
needed. They reduce throughput time by
providing access when and where it is needed
23 / 27

Executive Summary
Solution Overview
Contact Us
Engineer-to-Order and Project Manufacturing Value Map

Solution Overview
Make-to-Order
Manufacturing
Production
Planning and
Scheduling
Quality Planning
and Control
Manufacturing
Execution
Performance
Visibility and
Monitoring
Repetitive
Manufacturing
Production
Planning and
Scheduling
Quality Planning
and Control
Manufacturing
Execution
Performance
Visibility and
Monitoring
Engineer-to-Order
and Project
Manufacturing
Process Planning
and Scheduling
Visual
Manufacturing
Engineering
Project
Manufacturing
Manufacturing
Execution
Lean
Manufacturing
Production
Planning and
Scheduling
Lean Six Sigma

Analysis
Poka Yoke
Processing
Manufacturing
Execution
Outsourced
Manufacturing
Collaborative
Manufacturing
External
Processing
Subcontracting
Core
Quality
Management and
Compliance
Corporate Quality
Quality Planning
and Control
Quality
Operations
ETO and Project
Manufacturing
Why SAP?
24 / 27

Executive Summary
Solution Overview
Contact Us
Why SAP?
Solution Overview
Manufacturing and business solutions from SAP help companies closely align
operations with corporate objectives and integrate manufacturing with business
processes, to achieve greater marketplace success and optimize IT investments.
ETO and Project
Manufacturing
Production planning, scheduling, execution, and quality assurance are all integrated in solutions for
complex assembly manufacturing from SAP.
These solutions include a comprehensive portfolio of closed-loop processes across planning,
scheduling, and execution that leverage industry best practices.
Organizing and enabling asset utilization while simplifying and expediting manufacturing processes
across the value chain, these solutions serve the complete value chain for complex assembly.
Why SAP?
SAP software helps customers harmonize their existing landscape and rapidly leverage industry
best practices.
SAP technologies such as mobile computing with analytics help enhance the user experience with
touch user interfaces and role-specific mobile apps.
25 / 27

Executive Summary
Solution Overview
Contact Us
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26 / 27

Solution in Detail
Manufacturing
Executive Summary
Solution Overview
Contact Us
CMP 23436 (13/03)
Please visit us at www.sap.com/manufacturing.

Specific manufacturing operations:
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www.youtube.com/user/SAPVideoMOM
http://twitter.com/#!/sapmfg
http://scn.sap.com/community/manufacturing

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Solution in Detail

ETO and Project Manufacturing

2013 SAP AG or an SAP affiliate company. All rights reserved.

Simplifying Complex Manufacturing

Efficient management of highly complex, variable, and tightly controlled

Incorporating new technology to compete in the

Companies are incorporating innovations such

Manufacturers must monitor market dynamics

This environment is complicated by the need

2013 SAP AG or an SAP affiliate company.

Integrated Answer for Complex Builds

Accelerate the design-to-delivery cycle by

Project manufacturing keeps track of the

Visual manufacturing graphics tie the BOM to

Efficient manufacturing execution, in

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

Proficient Manufacturing Control

For manufacturers, efficiency and intuitiveness of processes can make the

Improved manufacturing profitability

Source: SAP Performance

2013 SAP AG or an SAP affiliate company.

SAP assists in bringing technology innovations to the manufacturing supply chain.

Cloud solutions can simplify implementation,

Analytics solutions help optimize all areas of

SAP software accelerates complex assembly

2013 SAP AG or an SAP affiliate company.

ETO Software Spans Manufacturing Needs

Process Planning and Scheduling

2013 SAP AG or an SAP affiliate company.

Managing Complex Manufacturing

2013 SAP AG or an SAP affiliate company.

Process Planning and Scheduling

Integrate BOMs with text, tools, and

Planning data is tied to BOM data that is

Planning components are validated to help

2013 SAP AG or an SAP affiliate company.

Document and Maintain Process Plans

Conform with engineering requirements while

Add and maintain inspection instructions to

2013 SAP AG or an SAP affiliate company.

Integrated Solution for Managing Complex, Changing

Automate and coordinate parts and work

Use data security by program and by field to

2013 SAP AG or an SAP affiliate company.

Innovations in Process Planning and Scheduling

Analytics solutions are now available

Analytics solutions enable advanced modeling

2013 SAP AG or an SAP affiliate company.

Use intuitive 3D visualization to create,

Manufacturers can use 3D visualization to

underlying data. The intuitive, graphical

2013 SAP AG or an SAP affiliate company.

Enable Efficient Manufacturing

Improve efficiency with visual manufacturing.

2013 SAP AG or an SAP affiliate company.

Accelerate Comprehension and Consolidate Product

The SAP 3D Visual Enterprise Viewer

2013 SAP AG or an SAP affiliate company.

Innovations for Visual Manufacturing

Production is simplified through use of

Graphics from multiple software platforms can

Metadata associated with the graphics can be

2013 SAP AG or an SAP affiliate company.