SAP MII in a mass customization Business. Dr. Daniel de Sousa

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1 SAP MII in a mass customization Business Dr. Daniel de Sousa

2 Content Overview of Business Segment & Business Process Project Motivation & Solutions Achieved Goals Next Steps

3 Overview of Business Segment & Process Cara The Digital World in Dental Labs

4 Change in the Production of Dental Prosthetics Until 2000: The traditional process dominates the market Impression Model Wax-Up Casting Veneering Patient Dentist Dental Lab Dentist Source: Team Digital Prosthetics

5 Change in the Production of Dental Prosthetics 2011ff: Complete digital workflows Impression Model Wax-Up Casting Veneering Patient Dentist Digital Impression CAD-Design CAM CAM-Veneering Dentist / Dental Lab Dental Lab / Industry Source: Team Digital Prosthetics

6 Our Business Case CAD/CAM (CARA) Product Heraeus CAD/CAM (CARA) Application Milled Zirconia / PMMA / NPM frameworks for crowns and bridges Laser Sintered NPM frameworks for crowns and bridges (non-anatomic) Source: Team Digital Prosthetics

7 Production of Dental Prosthetics by CAD/CAM (Central Manufacturing as of Today) Impression CAD-Data Dental Framework Finished Prosthesis Dentist Dental Lab Heraeus Dental Lab Dentist Preparation/ Impression Dental Model Scanning/ CAD CAM- Production Veneering Insertion CAD/CAM-Process Patient Make-To-Order (batch size= 1) Short lead-time (2 days) Very high precision Patient Source: Team Digital Prosthetics

8 What are the Production Steps? Dental Lab Production CAD/CAM Scanning CAD- Construction Data Transfer Order Inflow CAM Data Generation/ Nesting Production CAD/CAM CNC- Milling Quality Control 1 Sintering Quality Control 2 Packaging/ Shipment Zirconia Source: Team Digital Prosthetics

9 Shop Floor Source: Team Digital Prosthetics

10 Project Motivation & Solutions

11 Step one: Transparency Heterogeneous shop floor (milling, SLM, SLS, ) Wide band of material groups with different production steps Interdisciplinary working in one process (Production, Customer Service Center, Logistics, ) Mass production of individualized products

12 Production Logistics (SAP MII) Precise view of all customer orders along the process chain Identification of workload in the different process steps Shop Floor Integration Identification of bottlenecks Source: Team Digital Prosthetics

13 Heraeus Production Dashboard

14

15 Step two: TIME On time delivery Motivation Proactive intervention needed for potentially delayed orders No real time surveillance for time critical orders (employee's gut feeling or singular analysis in SAP ERP) process errors are recognized with a delay or to late Interface errors between systems lost orders in production. Mistakes happen quite seldom but have large impact on customer satisfaction Hurdles Variable time for order reception vs. fixed time for shipment ( plus 2 days at 7pm) Wide variety of products with different production methods Goal: Implementation of an automized system for real time recognition of potentially delayed orders Source: Team Digital Prosthetics

16 KPI MII Realisation Every Customer Order receives a time stamp Production end date is a constant (2 working days after order is received/ 07pm) Time based milestones are calculated per customer once received Basis for calculation is Production method, material group and an material number For each material group there is a unique production process For each material belonging to this group time based milestone exist (example): Order reception 10% VNES BNES 5% 6% Milling ZNES 20% 2% QC1 10% VSINT 2% Sintering 30% QC2 10% Distribution 5% Monday 2:54 pm Monday 08:06 pm Tuesday 02:51 am Tuesday 12:15 pmr Tuesday 05:40 pm Wedneday 11:52 am Wedneday Wedneday 05:04 pm 07:00 pm Each milestone is monitored by SAP MII If a milestone is not reached in time the order is visualized in SAP MII until the order is finished or back on track Working days / week ends and holidays are customizable by key users Certain customer groups (internal customers) can be filtered Source: Team Digital Prosthetics

17 KPI MII Visualization Source: Team Digital Prosthetics

18 Achieved Goals

19 Achieved goals. All of the above and more On time delivery rate of 99,5 % and rising steadily (goal 2011: 99,0 %) reduction of scrap production due to threshold warning Flexible and autonomous personnel planning Capacity is raised where it is needed without intervention of production manager Critical process errors can be tended tended to when they occur Customer service agents can now actively inform customers of potential delays

20 Next Steps

21 UI optimization SAP UI interaction in QC consumes 0,6 FT Simple yes or no decision Basis for the implementation is SAP MII Planned for Dec First Step is QC followed by rest of plant in 2012

22 UI optimization SAP UI interaction in QC consumes 0,6 FT Simple yes or no decision Basis for the implementation is SAP MII Planned for Dec First Step is QC followed by rest of plant in 2012

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