Planning and Scheduling Production Operations The Value of the SAP S/4HANA® Manufacturing Solution Transforming manufacturing in the digital economy Planning and Scheduling Production Operations Quality management ‘Live MRP’ ‘Lot Size Of One’ ‘Quality Comes First’ One MRP run for finite and infinite material planning with harmonized master data Constraint-based planning (capacity and resource) to generate a precise production plan Seamless integration of master data and transactional data in planning Customizable SAP Fiori® apps as a web-based graphical production scheduling tool Optimized material flow by harmonizing requirements to production schedule, together with your supplier SAP Fiori app as a dashboard for production supervisor to manage operations Real-time alerts based on bottlenecks in production Browser-based UI5/HTML5 mobile applications for shop floor wireless bar-code scanners ** JIT production capabilities, with embedded Kanban as well as JIT Inbound/ Outbound material flows IoT capabilities support machine-to-machine connectivity** External workforce integrated into production operations Asset intelligence network enabled** Integrated and simplified solution with a new user experience (UX) Run in a mobile environment Simplified inspection process in extended warehouse management (EWM) (1st scope) Real-time monitoring and exception management of quality deviations Product compliance supported by timely and informed release decisions Quality technicians can record inspection results easily and efficiently using SAP Fiori apps Planning and Scheduling One MRP run supports detailed scheduling and MRP. No coordination of runs required Constraint-based planning (capacity and resource) using various heuristics and optimizers to generate a precise production plan by bringing production planning and detailed scheduling on SAP ERP Seamless integration of master data and transactional data in planning Web-based graphical scheduling tool to optimize and plan the resource schedule, order dates, and times as well as plan critical products and monitor capacity utilization Optimize material flows by harmonizing your requirements to your production schedule together with your supplier. For example, to group PO's to ensure only full truckload shipments Read more at: <https://dam.sap.com/mac/download/ad/UXnPt.htm> Production Operations SAP Fiori app as a dashboard for production supervisor to manage operations Real-time alerts based on bottlenecks in production, such as time or component delays, and in resources Browser-based UI5/HTML5 mobile applications for shop floor wireless bar-code scanners ** Supports just-in-time production with embedded Kanban as well as JIT inbound and outbound material flows IoT capabilities supporting machine-to-machine connectivity, allowing for automation and unprecedented flexibility of manufacturing processes** Integrate external workforce into production execution; manage time and material handovers SAP Asset Intelligence Network: data about machine operations, such as current state, usage profile, and utilization, as well as about each serialized component that is used in the assembly of the machine, can be exchanged via the network** Quality Management Integrated and simplified solution utilizing quality management and quality issue management capabilities; Simplified user interface and new user setup; core QM processes supported by new roles in SAP Fiori user experience for quality technician, quality engineer, quality planner, quality manager, quality auditor, and calibration technician Run in a mobile environment with significant reduction in the number of clicks required Simplified inspection process in extended warehouse management (EWM) within SAP S/4HANA (1st scope) Real-time monitoring and exception management of quality deviations; Improved quality measurement results through recording of defects, planning and flexible, harmonized action management Perform quality inspections, providing inspection results to enable timely, informed release decisions and therefore support product compliance and quality requirements Enhanced efficiency in quality assurance execution (results recording –enabling quality technicians to record inspection results easily and efficiently); SAP Fiori apps for results recording Up to 10% reduction in manufacturing cycle time* Up to 10% reduction in total manufacturing costs* Up to 25% reduction in scrap value* *Benefits are based on early adopters of SAP S/4HANA® or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA + line-of-business (LoB) and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value proposition for the enterprise. **Capabilities that extend beyond SAP S/4HANA shipment to SAP’s broader cloud and LoB portfolio

SCENARIO: MANUFACTURING EXAMPLE SAP S/4HANA provides the next generation production planning (MRP live) optimized on the SAP HANA® platform for faster planning cycles and synchronization to demand changes resulting in fewer material shortages, delays and safety stock SAP S/4HANA for finite planning based on embedded manufacturing planning and scheduling Traditional SAP ERP and SAP Advanced Planning and Optimization (SAP APO) Manage master data in SAP ERP List scheduled planned orders for release Create master data in SAP APO Run finite planning in SAP APO production planning Manage conflicts in SAP APO Monitor capacity in SAP APO Run MRP in SAP ERP for noncritical components Manage conflicts in SAP ERP SAP S/4HANA SAP Fiori launchpad for material flow and capacity Increase user productivity and efficiency by harmonized master data and one process for finite and infinite material planning One MRP run for finite and infinite material planning with harmonized master data and one SAP Fiori launchpad for material flow and capacity Increase order-to-delivery and production cycle times Carry out finite and infinite material planning Maximized capacity utilization Optimally scheduled planned orders Real-time inventory management Appropriate purchase orders created Reduce inventory and planning cost More than smarter and faster . . . a reimagined process

Customers Articulate the Value of SAP S/4HANA Manufacturing Vectus Industries Airbus DS Optronics SWISS PROPERTY Reducing operational cost by 15% with SAP S/4HANA Gaining an eagle eye with SAP S/4HANA Building a future on SAP S/4HANA SWISS PROPERTY is a Swiss real estate development company that builds residential real estate in an industrial way. It chose SAP to provide a platform for the future that can help make its vision of lean digital building a reality. SWISS PROPERTY worked with INTELSYS, an SAP partner, to implement the SAP S/4HANA Enterprise Management solution by using business process content supported by SAP Best Practices packages. Focused on the engineering and construction industry, INTELSYS helps provide an end-to-end solution for design, planning, and construction execution. Vectus Industries Limited is India’s leading and fastest growing pipe and water storage solution. Vectus deployed the SAP S/4HANA Enterprise Management solution and started experiencing total ease in managing business operations. It has decreased its days sales outstanding and can deliver accurate, instantaneous customer invoices. Vectus achieved a 15% reduction in operation costs, real-time year-end financial close (down from a few months), 50% faster access to and visibility of real-time data, and a 60% increase in operational efficiency. Airbus DS Optronics is a German company that manufactures optoelectronics for military vehicles, aircraft, satellites, and more. Airbus looked to SAP S/4HANA to make information “live” to better plan production and eliminate latency in order visibility.   All information, including sales forecasts and orders, are now available “at the touch of a button” on any device. Airbus achieved a 75% reduction in data volume with a simplified IT landscape and operations. It also achieved compliance with parent group policies. Read the business transformation study > Read the business transformation study > Watch the video >