SAP DM as a Strategic MES for Global Deployment Hidden Champion Digitalizes High-Performance Elastomer Production

In the course of the digital transformation, KRAIBURG TPE is making a technological quantum leap and optimally aligning its production for the future with the implementation of SAP DM.

The reasons for introducing a cloud-based MES system were issues that many production companies in the process industry are confronted with: Limited scalability of the historically grown IT system landscape, manual production data collection, and some non-value-adding activities within production.

In particular, the asynchronous inventory situation presented KRAIBURG TPE with long-term challenges, with a delay in comparing actual data as the order progressed and components being removed retroactively.

KRAIBURG TPE meets these challenges by using the new SAP DM software as a strategic MES. The use of intuitively operated terminals, so-called Production Operator Dashboards (PODs), enables continuous paperless production. Production data acquisition is system-supported and at the same time maximizes process reliability through intuitive guidance with process interlocks. In addition, production employees work in a central system and no longer have to switch between different applications.

Tool management will also be system-based in order to monitor both cleaning statuses and compliance with wear limits in real time using a production cockpit. This improves user-friendliness, replaces isolated solutions or "black boxes," and thus promotes the harmonization of the IT system landscape. At the same time, KRAIBURG TPE is pursuing process automation including a standardized machine connection via OPC UA to minimize data input and enable simplified traceability of all components used. The overarching goal is to design a functional template that will form the basis for further international roll-outs of SAP DM.

The main reasons for the decision in favor of SAP DM were the high degree of coverage of KRAIBURG TPE's specific requirements and the optimal integration options with SAP S/4HANA. In addition, the latest-generation MES system is regarded as the future strategic solution from SAP in the manufacturing environment with state-of-the-art technology. Thanks to the software-as-a-service concept, KRAIBURG TPE can not only outsource administrative processes such as maintenance, support, and security, but also always uses the latest release of the solution.

The SAP roadmap outlined above also shows which functions and innovations KRAIBURG TPE will benefit from in the future as a "windfall effect".

The overall project is divided into two phases. In phase 1, a pilot is currently being implemented in Waldkraiburg, which serves as a template for all production processes. This includes the connection of the extruder lines, dynamic setup checklists, packaging functionalities including label printing, and functions for collecting and analyzing various key figures in detail. Following the planned go-live in October 2024, the template will then be rolled out to the sites in the USA and Malaysia.

In parallel, further production processes will be implemented in a second phase in Waldkraiburg. The focus here will be on work preparation, the full integration of a process control system, and, as a result, optimized inventory management in real time by taking actual postings into account. These functional enhancements will also be rolled out to the other sites.

As part of the project implementation, a partially agile methodology was used in which the project scope was divided into individual work packages (= waves) at the beginning. The benefits of this approach are increased flexibility, shortened innovation cycles, and an overall accelerated implementation with the option of short-term adjustments to the respective work packages. A special feature of the project was the immediate implementation of a standard prototype for the extrusion and packaging workstations.

With the help of IGZ's know-how transfer, the team members were able to gain experience with the SAP DM solution on a "living object" and develop an initial understanding of their new system. This early involvement of the KRAIBURG TPE project team was a significant benefit, as Thomas Meier notes: "Thanks to the SAP DM prototype, the key users were able to convince themselves of the simple configurability at a very early stage of the project - and the future operators of the high user-friendliness of the PODs."

The store floor level is integrated using the SAP Production Connector. This application is a component of the SAP DM solution and enables the integration of any store floor systems / machines in production with SAP DM. In this way, extensive amounts of data are automatically collected at production level in order to translate the signals from the machines into preconfigured states and to classify any faults that occur in a targeted manner.

Ideally, the bidirectional machine connection will detect impending problems at an early stage and rectify them through predictive maintenance measures. The data is evaluated using key figures, reports and dashboards directly in SAP DM using embedded SAC technology (SAP Analytics Cloud). This will enable KRAIBURG TPE to identify cost drivers and bottlenecks in production in a targeted manner in the future and constantly identify and implement new optimization potential as part of a continuous improvement process (CIP).

The global manufacturer of thermoplastic elastomers is considered a "digital pioneer" in its industry thanks to the worldwide introduction of the innovative MES solution SAP DM. Thanks to a company-wide template and flexible scalability, the SAP architecture is ideally suited for the group-wide roll-out and thus secures the future growth of KRAIBURG TPE on the basis of cross-location, standardized processes in the long term. The existing IT system landscape is harmonized and the distribution of tasks between ERP, MES and DCS is clearly regulated. There is a continuous flow of information between the systems to ensure consistent data and a "single point of truth" at all times.

Mr. Meier sums up the decision for the project as follows: "SAP DM is a very good fit for a modern company like KRAIBURG TPE, which wants to position itself sustainably for the future in the course of digitalization. We are convinced that our new solution will also enable us to master future challenges in the production environment."