Preface

19

Target Audience

19

How This Book Is Structured

20

Conclusion

21

Acknowledgments

21

1 Introduction to Industry 4.0

23

1.1 Main Trends and Challenges in Manufacturing

23

1.2 Transformations in the Manufacturing Industry over the Ages

24

1.3 Key Concepts of Industry 4.0

25

1.3.1 Cyber-Physical Systems

26

1.3.2 Internet of Things and Digital Twins

27

1.3.3 Vertical Integration: Top Floor to Shop Floor Integration in Manufacturing Processes

29

1.3.4 Virtual Visualization of Production Lines and Processes

32

1.3.5 Predictive Analysis through Operational Data

33

1.3.6 Horizontal Integration: End-to-End Digitalization

34

1.4 Importance of Industry 4.0 in Manufacturing

37

1.5 Key Technology Enablers for Industry 4.0

40

1.5.1 Internet of Things

40

1.5.2 Industrial Internet of Things

43

1.5.3 Machine Learning and Artificial Intelligence

43

1.5.4 Cloud Computing

45

1.5.5 Big Data

46

1.5.6 Augmented Reality

46

1.5.7 Robotics

47

1.5.8 3D Printing

48

1.5.9 5G and 6G Network Capabilities

49

1.6 Challenges to Implementing Industry 4.0

50

1.6.1 Heterogeneous Data Sources

50

1.6.2 Multiple Technologies and Platforms

52

1.6.3 High Data Volume

53

1.6.4 User Adoption and Change Management

53

1.7 Approach for Industry 4.0 Adoption

55

1.7.1 Assess Current State and Maturity

56

1.7.2 Define Objectives and Road Map

57

1.7.3 Define Architecture

58

1.7.4 Kick-Start and Pilot

58

1.7.5 Implement and Rollout

58

1.7.6 Review and Improve

58

1.8 Key SAP Solutions for Industry 4.0

59

1.8.1 Intelligent Products

59

1.8.2 Intelligent Factories

60

1.8.3 Intelligent Assets

61

1.8.4 Empowered People

62

1.9 Summary

63

2 Internet of Things Platforms, Edge Gateways, and Digital Twins

65

2.1 What Is an Internet of Things Platform?

66

2.1.1 Elements of a Successful Internet of Things Platform

67

2.1.2 Components of an Internet of Things Platform

68

2.2 Role of the Industrial Internet of Things and Edge Gateways in Industry 4.0

70

2.2.1 Challenges in Implementing the Internet of Things in Manufacturing Ecosystems

72

2.2.2 Standards and Reference Models for Industrial Internet of Things Implementation

73

2.3 Internet of Things Gateway Solutions and Integration with Internet of Things

76

2.3.1 Key Functionality of an Industrial Internet of Things Gateway Platform

76

2.3.2 Components of Edge Gateways

81

2.3.3 Reference Architecture for an Industrial Internet of Things Platform

83

2.3.4 Choosing an Industrial Internet of Things Platform

84

2.3.5 Comparing Industrial Internet of Things Platforms in the Market

89

2.4 Digital Twins

94

2.4.1 What Is a Digital Twin?

95

2.4.2 Types of Digital Twins and Their Applications

96

2.4.3 What Drives the Digital Twin Initiative in Manufacturing?

102

2.4.4 Best Practices for Digital Twins

113

2.4.5 Digital Twin Enablers from Data Ingestion to Consumption

124

2.5 Developing Cross-Component IIoT Apps Using SAP BTP

125

2.6 Summary

127

3 Process Automation and Analytics

129

3.1 Analytics Platform for Industry 4.0

130

3.1.1 Challenges

130

3.1.2 Journey of Data in a Manufacturing Ecosystem

133

3.1.3 Revolutionary Disruptions in Manufacturing Data Analytics

134

3.2 Analytics in Manufacturing

137

3.2.1 Descriptive Analytics

137

3.2.2 Diagnostic Analytics

139

3.2.3 Predictive Analytics

141

3.2.4 Prescriptive Analytics

146

3.2.5 Robotic Process Automation

148

3.3 Best Practices for Implementing Artificial Intelligence and Machine Learning

149

3.3.1 People: Who Are Your Drivers?

150

3.3.2 Process: When Should You Start the Journey?

154

3.3.3 Procedure: Technology

157

3.4 Key Use Cases of Artificial Intelligence/Machine Learning in Industry 4.0

164

3.4.1 Driving Production Excellence through Statistical Process Control and Statistical Quality Control

164

3.4.2 Predictive and Prescriptive Maintenance

167

3.4.3 Driving Product Engineering Innovation

168

3.4.4 AI-Powered Advanced Planning

170

3.4.5 Conversational Artificial Intelligence for Training and Service Support

173

3.5 AI/ML Services in SAP Business Technology Platform

176

3.5.1 SAP HANA Cloud

176

3.5.2 SAP Master Data Governance

178

3.5.3 SAP Analytics Cloud

178

3.5.4 SAP Datasphere

180

3.5.5 SAP Data Intelligence Cloud

182

3.5.6 SAP AI Services

184

3.5.7 SAP AI Core

187

3.5.8 SAP AI Launchpad

188

3.5.9 SAP Build Process Automation

189

3.6 Building Ethical Artificial Intelligence

190

3.7 Summary

192

4 Intelligent Product Development and Operations

193

4.1 What Are Intelligent Products?

193

4.1.1 The Need for Intelligent Product Design and Development

195

4.1.2 Key Components of Intelligent Product Design and Development

196

4.1.3 Benefits of Intelligent Product Design and Development for Industry 4.0

198

4.1.4 Challenges of Intelligent Product Design and Development for Industry 4.0

200

4.1.5 Intelligent Product Design and Development for Existing Products versus New Products

201

4.1.6 Enablers of Intelligent Product Design and Process Development for Industry 4.0

203

4.2 SAP S/4HANA for Intelligent Products

204

4.2.1 Key Functionalities of Product Lifecycle Management in SAP S/4HANA

205

4.2.2 Key Functionalities of SAP S/4HANA Manufacturing for Production Engineering and Operations

210

4.2.3 Architecture and Integration

216

4.2.4 Key Benefits

218

4.3 SAP Enterprise Product Development for Intelligent Products

220

4.3.1 Key Functionalities

221

4.3.2 Architecture and Integration

238

4.3.3 Key Benefits

243

4.4 SAP Teamcenter for Intelligent Products

244

4.4.1 Key Functionalities

244

4.4.2 Architecture and Integration

251

4.4.3 Key Benefits

252

4.5 Summary

254

5 Intelligent Factories

255

5.1 What Are Intelligent Factories?

255

5.2 SAP S/4HANA Manufacturing

259

5.2.1 Data Classification

259

5.2.2 Production Planning and Control

262

5.2.3 Quality Management

271

5.2.4 Plant Maintenance/Asset Management

273

5.2.5 Product Traceability

273

5.3 Warehouse Management in SAP S/4HANA

275

5.3.1 Warehouse Overview

276

5.3.2 Inbound Processing

279

5.3.3 Storage and Operations

285

5.3.4 Outbound Processing

290

5.4 SAP Warehouse Robotics

294

5.5 Manufacturing Execution with SAP Digital Manufacturing

298

5.5.1 SAP Digital Manufacturing for Execution

303

5.5.2 SAP Digital Manufacturing for Insights

333

5.5.3 Shop Floor Integration Using the Production Connectivity Model

334

5.5.4 Working with the Production Process Designer

338

5.5.5 Managing Artificial Intelligence/Machine Learning Scenarios

343

5.5.6 Enhancements in SAP Digital Manufacturing

344

5.5.7 Integration Scenarios of SAP Digital Manufacturing

347

5.5.8 SAP Digital Manufacturing for Edge Computing

348

5.5.9 Key Benefits of SAP Digital Manufacturing

350

5.6 SAP Manufacturing Suite

352

5.6.1 Components of SAP Manufacturing Suite

352

5.6.2 Key Functionality of SAP Manufacturing Suite

353

5.7 Summary

353

6 Intelligent Assets

355

6.1 What Are Intelligent Assets?

355

6.2 Enterprise Asset Maintenance Strategies

357

6.2.1 Breakdown Maintenance

358

6.2.2 Preventive Maintenance

359

6.2.3 Condition-Based Maintenance

359

6.2.4 Predictive Maintenance

359

6.3 SAP S/4HANA Asset Management

360

6.3.1 Key Functionality

361

6.3.2 Architecture and Integration

381

6.3.3 Key Benefits

383

6.4 SAP Asset Strategy and Performance Management

384

6.4.1 Key Functionality

385

6.4.2 Architecture and Integration

396

6.4.3 Key Benefits

397

6.5 SAP Predictive Asset Insights

398

6.5.1 Key Functionality

398

6.5.2 Architecture and Integration

406

6.5.3 Key Benefits

407

6.6 SAP Asset Performance Management

408

6.7 SAP Business Network Asset Collaboration

409

6.7.1 Key Functionality

410

6.7.2 Architecture and Integration

415

6.7.3 Key Benefits

416

6.8 Summary

417

7 Intelligent Personal Safety and Empowered People

419

7.1 What Are Empowered People?

421

7.2 Environment, Health, and Safety Management in SAP S/4HANA

423

7.2.1 Key Functionalities

424

7.2.2 Architecture and Integration

454

7.2.3 Key Benefits

455

7.3 SAP 3D Visual Enterprise

456

7.3.1 Key Functionalities

456

7.3.2 Architecture and Integration

462

7.3.3 Key Benefits

463

7.4 SAP Service and Asset Manager

464

7.4.1 Key Functionalities

465

7.4.2 Architecture and Integration

470

7.4.3 Key Benefits

472

7.5 Summary

473

8 Implementing Industry 4.0 Scenarios

475

8.1 Process Manufacturing and Discrete Manufacturing

475

8.2 Implementing Make-to-Order and Make-to-Stock Scenarios

479

8.3 Configure-to-Order Manufacturing for Lot Size of One Production

484

8.4 Engineer-to-Order Manufacturing for Lot Size of One Production

486

8.5 Automated Production Line with Closed-Loop Machine Integration and Control

489

8.6 Real-Time Plant Visualization

492

8.7 Real-Time Manufacturing Operations Tracking and KPI Analysis

495

8.8 After-Sale Remote Service of Products

498

8.9 Architectural Scenarios of Industry 4.0 Implementation

500

8.9.1 Manufacturing Execution System and IT-OT Integration

500

8.9.2 IoT-Based Scenarios for Digital Twin and Data Collection

507

8.9.3 Automated and Intelligent Workflows

511

8.9.4 Real-Time and Big Data Analytics

513

8.10 Summary

516

9 Planning and Change Management for Your Industry 4.0 Implementation

517

9.1 Industry 4.0 Readiness and Maturity Assessment

518

9.1.1 Industry 4.0 Readiness and Maturity Assessment Frameworks

519

9.1.2 Assessing Process Maturity

539

9.1.3 Assessing People Maturity

539

9.1.4 Assessing Technology Maturity

540

9.2 Developing the Road Map and Plan for Industry 4.0 Adoption

542

9.2.1 SIRI Prioritization Framework: TIER

543

9.2.2 Road Map Plan for Industry 4.0

548

9.2.3 How to Convince Your Project Sponsor to Invest in Industry 4.0

549

9.2.4 Common Concerns Raised by the Project Sponsors and Mitigations

551

9.3 Change Management Needed for Industry 4.0 Adoption

553

9.3.1 Information Technology and Operational Technology Change Management

553

9.3.2 Logistics and Supply Chain Change Management

556

9.3.3 People and Process Change Management

557

9.4 Technical Skill Sets Needed for Industry 4.0 Adoption

561

9.5 Tips and Strategies for Industry 4.0 Program Management

562

9.5.1 Key Reasons for Failures of Industry 4.0 Initiatives

562

9.5.2 Financial Parameters to Review for Industry 4.0 Investments

563

9.5.3 Pitfalls to Avoid in Industry 4.0 Programs

565

9.5.4 Tips to Avoid Budget Overrun for Industry 4.0 Programs

567

9.6 Summary

570