Predictive Quality Management - SAP Events

1 Predictive Quality Management Optimize manufacturing operations with SAP Predictive Analytics and SAP HANA. Public s li d e o n ly w ith an image Use this titl e Predictive Analytics: Typical use cases Marketing Finance Industry q Prospect q Credit risk q Predictive Maintenance q Cross-sell & Up-sell q Insurance risk q Warranty Analysis q Churn q Fraud q Demand forecast 2014 SAP AG or an SAP affiliate company. All rights reserved. Internal 2. Predictive Analytics concepts Typical and recurrent Historical data Predict and act behaviors q Customers q Appetency q Marketing q Products q Risk q Finance q Transactions q Fraud q Maintenance q Equipments 2014 SAP AG or an SAP affiliate company. All rights reserved. Internal 3. LEVERAGE DATA FOR CONTINUOUS PROCESS. IMPROVEMENT. Get the Data Insight from Data Automate Actions Securely connecting potentially Enable real-time analysis of vast Provide platform to create and run millions of devices/sensors to a amount of data applying value-added applications, central place, collecting consistent Predictive algorithms integrated with all IT assets enormous amounts of data leveraging sensor and other structured and unstructured data SENSE ANALYZE IMPROVE.

2 All relevant Automated analysis Incorporate insights variables of error patterns (temperature, INTEGRATE PREDICT. into production process humidity, Integrate captured data Real-time prediction pressure, etc.) (like image recognition) of Quality results plus IT data COLLECTING AND MONITORING SENSOR DATA. SAP HANA SAP BI. Streaming data collected every real-time data real-time second from sensors platform dashboards Position Vibration 10101010101. Temperature 01000101001. Pressure 10010110110. Humidity 1. Sensors measure activity indicators 3. Users can monitor sensor activity in every second real-time using SAP BI Dashboard 2. Sensor data is collected and stored in 4. Big Data produced by sensors can real-time into the SAP HANA platform be archived into low-price Hadoop BUILDING MODELS FROM SENSOR DATA. SAP HANA real- SAP Predictive time data platform Analytics 1. Data scientists transform IoT raw data into analytical data with SAP Predictive Analytics Data Manager 2.

3 They can easily access to Hadoop SAP Hana historical data and merge it with HANA data Predictive using SAP HANA Smart Data Access Libraries 3. SAP Predictive Analytics Modeler leverages SAP HANA Predictive libraries and SAP Spark Predictive libraries to avoid data duplication and enable in- memory model training SAP Spark Data scientist Predictive Libraries REAL TIME PREDICTIONS WITH SAP HANA. SAP HANA SAP BI. Streaming data collected every real-time data real-time second from sensors platform dashboards Position Vibration 10101010101. Temperature 01000101001. Pressure Predictive Humidity Models 1. SAP Predictive models are deployed into the HANA streaming process 2. They will predict Events such as potential upcoming failures in real-time SAP Mobility 3. Alerts can be raised and sent to business users through various channels SAP Digital Manufacturing Value Creation through Digitization Eric Thieren EMEA Solution Sales FBS, Manufacturing Industries Trends Impacting Digital Manufacturing Digital transformation in the extended supply chain People & Suppliers &.

4 Resources Logistics Resource Scarcity Sharing Economy Sustainability Business Network End-to-End Respond Design Visibility Individualized Products Customer Centricity Industry Omni-Channel Products & Customers &. Assets Markets 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 2. Connecting Things with People and Processes SAP Leonardo Innovation Portfolio 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 3. SAP Digital Manufacturing is Connected End-to-End Business Process and Business Partner Integration Seamlessly Integrated Business Processes: Top 5 Scenarios 4 3. Business Machine E-Commerce Networks Cloud Consumer/. 1. Service 3. Provider Customer Top Floor to Shop Floor Top Floor Live response in production planning and scheduling for high flexibility with last minute demand changes 4 ERP Manufacturing execution & orchestration of the automation layer in lot size of 1. 1. 2 Machine-to-Machine communication SAP Manufacturing Execution Suite 3 E-Commerce integration: Sales order entry with configuration and personalization for individualized products 5.

5 4 Machine Cloud integration Supplier 2 Shop Floor 5 Direct replenishment, Outsourcing Insight-to-Action based on machine & business data for high transparency 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 4. Planned Innovation Digital Manufacturing Insights Insights to Action @ All Levels Safety Quality Cost Delivery People Review Revenue, Cost, Delivery Performance, Quality &. Customer satisfaction across manufacturing plants and take decisions CxO Key Performance KPI Score Card Indicators Monitor and Analyze Manufacturing Performance Manufacturing Plant &. real time production insights and expedited actions Performance Unit Heads Continuous improvement Indicators Real time visibility of manufacturing Drive improvement with insight to action to Manufacturing improve core KPI's Supervisors Activity Indicators Flexibility to untether from the desk Clear and consistent guidance Guidance &. Real-time feedback Operators Real-time Reduced operator burden of non- value adding tasks feedback Automation of data Automation &.

6 Better information Devices and Machines Predictive Device to Enterprise Analytics connectivity 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 5. Industry Digitization has big pay back Performance Cost -7%. Net Margin + 19%. Dividend +25%. Share Repurchase > Demand +40%. From 21 day schedule to 6 hour 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 7. Industry in Paper Production Real Time Costing Energy Management 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 8. Digital Operations in Glass Making Real time visibility across the value chain Architectural glass Monitor raw material, through batching, float glass and finishing Materials monitoring for Quality Energy analysis Embedded solar panels create IOT opportunity 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 9. Packaging and Palletizing Automation Pallet Labeling Provides High Return on Investment 2016 SAP SE or an SAP affiliate company.

7 All rights reserved. Internal 10. Thank you Contact information: Eric Thieren Focused Business Solutions Sales, EMEA, Discrete Industries +32499513726. 2016 SAP SE or an SAP affiliate company. All rights reserved. Predictive Quality Management Customer References. Philippe Nemery, SAP BeLux Bi and Predictive Presales - Presales Manager Platform Solutions Group 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 4. Koehler Paper Group Koehler Paper Group one of the very few independent and family owned paper groups in Europe 7 paper machines and 1 board machine at 4 locations Sales Volume 2014: t Papierfabrik August Koehler SE. Sales Value 2014: 650 Mio. Oberkirch Employees 2014: The company is a producer of high- Quality special papers. Koehler Kehl GmbH. 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 5. 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 6. Predictive Models for Production Quality Parameters Project Overview Goals Challenges Reduce time-to- Quality on product switchover Few training data due to relatively expensive lab tests Monitor and guarantee Quality standards continuously for ground truth instead of through one lab measurement at the end Large variety of materials with different Quality goals Understand and verify central drivers for Quality Data from waste production is not recorded (lack of parameters variance in training data).

8 Approach Outcome Pilot phase: built Predictive models for 6 fundamental Model evaluation phase indicated sound reliability of Quality parameters using SAP PA Quality predictions for regularly produced products Usage of type-blending models to overcome small Correlation analysis confirmed production expert's training data sizes and adaptation to first-time conjectures about Quality drivers materials Bias of one hardware sensor detected Model export to SAP HANA DB for real-time Software training to enable continuing model prediction of Quality parameter improvements by customer using newly available data 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 7. Predictive Models for Production Quality Parameters Model Performance Average Model fit (blue). to validation data (green). Typical model variance (1 sigma area). Model performance assessment PA model built for each Quality parameter based on training set with ~500 samples Model validation showed typical model variance well within acceptable tolerances for all relevant parameters (top chart).

9 Model prediction (red). Implementation of Predictive models in SAP HANA for real- vs. lab results (blue). time Quality prediction Model evaluation phase for ~1 month showed sound match with lab results (right chart). 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 8. Predictive Quality : Paper Producer Process Innovation Data Selection Benefits Predictive Quality Reduce waste and rework means we calculate in Visualization Faster Time-to- Quality for small lot sizes and first real-time what the time materials Quality of the product Statistical Analysis that is currently in Superior product Quality production will be. Expert Review Detailed automated Quality documentation Step-by- step root cause analysis 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 9. 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 10. SDS: Smart Data Streaming Triggering of alarms/actions based on Predictive models External Financial, Data Sales Real-time Stream BO Dashboards Gateway Analysis System SAP HANA.

10 Platform Devices Kafka &. Zookeeper SDS. Real Time SDI - SDQ. Visual Hana Vora Exploration HDFS HIVE Spark 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL Big Data Lake Training of Predictive Models 11. Predictive Process: from test and pilot to deployment Data Science team Predictive Analytics Insights Focus on a single Predictive Analytics Use Case that is time-boxed for rapid delivery and directional insights (2) weeks Predictive analytics (PA) Go or no-go decision Data Science Solution Design and Design and pilot deployment: pilot Deployment (4-6) weeks Go or no- go decision Data Science Production Deploy Deploy Deploy Deploy Iterations & Customer Increment 1 Increment 2 Increment 3 Increment n Enablement (8-12). weeks 2017 SAP SE or an SAP affiliate company. All rights reserved. INTERNAL 16. SAP 2009 / Page 16. Predictive Team Line of Business Strategic Manager o Defines the business strategy. o Subject-matter expert. o Judges the value and the ROI.