Digital manufacturing solutions are shaping the future of productivity in the manufacturing industry. ERP solutions have emerged as the preferred choice, with 47% of companies actively seeking ERP systems manufacturers . As manufacturers often face issues such as lowered productivity, excessive energy wastage, and industrial hygiene management, SAP S/4HANA offers various manufacturing features to help companies:
- Reduce system downtime;
- Promote sustainability and energy efficiency, and;
- Create a safe environment for employees.
Enterprises in the manufacturing industry have been grappling with the recurring problem of unplanned downtime, as research reveals that approximately 82% of businesses have encountered unplanned downtime to varying degrees in recent years. This issue becomes more concerning, considering these episodes can endure at least four hours each, potentially leading to a staggering 800 hours of downtime annually . Unplanned downtime is a major issue for manufacturing companies, with an estimated annual loss of $300 million . This problem can be especially detrimental to small and medium-sized firms, as they often lack the resources to address these issues without external assistance.
To tackle this issue and improve efficiency and productivity, SAP Overall Equipment Effectiveness (OEE) offers a comprehensive set of capabilities. This SAP feature continuously collects real-time operational logs and performance data by leveraging an IoT network. The IoT solution analyzes this data through advanced analytics to provide insights into machine performance, enabling predictions of potential issues and enhancing overall efficiency. For instance, abnormal levels of vibration or heat from a piece of equipment can be detected, signaling a potential malfunction.
By implementing predictive maintenance, manufacturing plants can avoid costly mechanical breakdowns, increase equipment uptime, and boost overall productivity. With increased energy consumption, efficient energy management has become a critical factor for success in modern manufacturing operations to reserve energy and reduce waste.
Hence, ESG (Environmental, Social, and Governance) has emerged as a vital focus point for businesses, encompassing strategies that address environmental sustainability, social responsibility, and effective governance. With SAP Energy Management, manufacturers can unlock several benefits, including monitoring usage patterns, predicting energy demand, and optimizing energy consumption. By leveraging advanced analytics and automation capabilities, SAP OEE enables manufacturers to optimize energy usage and minimize wastage across the entire production process.
The manufacturing industry is a dynamic and bustling sector that is not without its fair share of challenges. The employees within this industry are no exception, as they are constantly exposed to various substances that can wreak havoc on their health and well-being. Nevertheless, if the company demonstrates its commitment to the well-being and welfare of its workforce, it contributes to the “S” aspect of ESG that is focused on social responsibility.
Ensuring a safe working environment protects employees from physical and psychological harm, reduces the risk of accidents and injuries, and promotes a culture of care and responsibility. Furthermore, SAP EHS (Environment, Health, and Safety) is a solution in SAP S/4HANA for enterprises to achieve industrial hygiene. With SAP EHS, organizations can attain real-time situational awareness across their entire enterprise, effectively mitigating noncompliance risks.
In the ever-evolving manufacturing industry landscape, SAP S/4HANA rises above to become one of the most advanced solutions. Manufacturers can use these innovative solutions to leverage real-time data insights, predictive analytics, and intelligent automation to make informed decisions and identify bottlenecks. With digital manufacturing solutions at the helm, manufacturers can embrace a new era of productivity with SAP S/4HANA, characterized by increased agility, responsiveness, and competitive advantage in an ever-changing global marketplace. By examining these manufacturing issues within the broader context of business operations, manufacturers can understand and resolve them as they occur. This ultimately leads to reduced downtime, higher-quality products, and increased operational efficiency.