SAP DM as a driver of growth Production of high-tech solutions
With the implementation of SAP Digital Manufacturing (SAP DM), MAGNETSCHULTZ has taken a decisive step toward smart manufacturing. Replacing paper-based and manual processes with a fully integrated, cloud-based MES platform provides end-to-end transparency into machine statuses and orders. Real-time data enables faster decision-making, optimized resource utilization, and a significant increase in efficiency. By adopting a centralized Manufacturing Execution System (MES) approach, the company is consolidating its heterogeneous system landscape and laying the foundation for future innovations such as AI, machine learning, and predictive maintenance.
MAGNET-SCHULTZ GmbH & Co. KG, headquartered in Memmingen, is the market leader in electromagnetic actuators, sensors, and valves. With approximately 2,400 employees and annual revenue of €400 million, the company supplies the capital goods and automotive industries worldwide. The products are synonymous with the highest precision, reliability, and innovation and are used in mechanical engineering, automotive engineering, aerospace, hydrogen technology, and industrial automation. MAGNET-SCHULTZ pursues a clear strategy of continuously optimizing production and ensuring competitiveness through digital solutions.
Challenges facing digital transformation
Before the implementation of SAP DM, manufacturing at MAGNET-SCHULTZ was primarily organized on a paper-based system: production orders and the associated documents were entered and distributed manually, and then manually reported back into various production data acquisition (PDC) systems. This led to redundant data entry, increased complexity, and data inconsistencies.
In addition, order visibility was limited, as traceability had to be managed manually across multiple systems and paper documents, increasing time and effort. Information on production status, machine conditions, or order progress was also not available in real time, meaning that opportunities for process optimization and proactive fault prevention remained untapped until then. The existing IT landscape was characterized by a multitude of disparate solutions, and the production data acquisition (PDA) system in use was nearing the „end of its lifecycle“.
Additional siloed solutions further fragmented the IT landscape, resulting in the absence of a “single point of truth” and a significant increase in the complexity of the system architecture – particularly with regard to maintenance, IT security, and integration efforts.
In light of the growing demands from various industries for real-time transparency and the optimal use of resources, it became clear that production needed to be more digitally oriented. The introduction of an integrated solution was intended to create a scalable and futureproof foundation for further optimizations.
System-supported online operator guidance and real-time data
The goal of the project was to implement a fully digital and standardized production control system at MAGNET-SCHULTZ in order to make manufacturing processes more efficient and consistently transparent. The focus was on a system-supported operator guidance system that provides all order-related documents digitally, eliminates the use of paper documents, and thereby minimizes manual feedback and potential sources of error. Through the online collection of operational and machine data, automated end-to-end feedback is sent to the ERP system, lead times are shortened, inventory is optimized, and process reliability is sustainably improved.
Another key component was comprehensive real-time transparency: status information on equipment, workstations, and orders is now digitally available at all times, while work-in-progress data and traceability for all production steps can be accessed company-wide. The modern, scalable SAP MES platform consolidates the previously heterogeneous system landscape at the execution level, eliminates interfaces, and reduces integration and maintenance costs.
Thanks to the template approach developed in collaboration with IGZ, additional production lines, equipment, and plants can be integrated quickly and seamlessly. This template significantly reduces implementation costs, enables a standardized rollout performed in-house by MAGNETSCHULTZ, and forms the foundation for a sustainable, scalable, and future-proof digitalization strategy.
SAP DM as a central platform for production, data, and processes
As part of the project preparation, a targeted MES evaluation was conducted, which considered both one of the existing non-SAP MES systems and SAP Digital Manufacturing. The decision was made in favor of SAP DM, as it could be seamlessly integrated into the existing SAP system landscape and was ideally
suited for the upcoming S/4HANA transformation at MAGNET-SCHULTZ. In addition, as an open MES platform, SAP DM offers extensive customization options that users can implement independently and according to their specific needs. This ensures long-term independence and flexibility for users.
Powerful low-code and no-code tools enable customization, while numerous standard features and flexible expansion options support future-proof and scalable production control using state-of-the-art cloud technology. IGZ impressed the Allgäu-based company as an implementation partner with a deep understanding of processes in discrete manufacturing and the joint development of a sound basis for decision-making in the form of a deployment analysis, which resulted in the development of the solution concept, the overall schedule, and a precise cost estimate.
Another key factor in the decision was IGZ’s project methodology, which ensures an intensive transfer of expertise right from the start of the project, enabling the customer to actively contribute the high level of inhouse effort they desire from the very beginning. Furthermore, MAGNET-SCHULTZ was convinced of the
capabilities of the SAP MES solution and IGZ as an implementation partner through reference visits to IGZ customers.
From a pilot project to a scalable MES solution
As part of the implementation analysis, a template-based approach was applied to enable a structured and efficient implementation of SAP DM. IGZ’s approach follows a standardized process model that ensures the reusability and scalability of MES functions and takes all essential core requirements for the template into account as early as the preliminary concept development phase. A representative value stream of a technically demanding product at its maximum capacity was selected as the basis for the pilot implementation; its diverse manufacturing processes realistically reflect the industry- and manufacturing-specific heterogeneity at MAGNET-SCHULTZ.
This deliberately complex project scope was chosen to ensure that, upon successful implementation of the pilot, the necessary functions of the MES solution would also be available for all other areas. Following the successful go-live, a roll-out-ready base template is now available, serving as a binding foundation for all further rollouts and contributing significantly to the harmonization of the system landscape. SAP DM is being rolled out step by step to additional workstations and machines on this basis.
Digital workflow management and cloud architecture: pioneers of the smart factory
Building on this foundation, the previous paper-based manufacturing processes were fully converted in the very first step. Digital terminals handle the standardized workflows defined in the template, provide integrated, user-friendly operator guidance, and offer a structured worklist. Order processing is now digital, with real-time feedback transmitted directly to the SAP ERP system.
Label printing is fully automated, consistently eliminating manual entries and potential sources of error. Critical production and quality data are digitally recorded and controlled. Transparency in manufacturing has increased significantly since the introduction of SAP DM, as live monitoring of orders, machine status, and WIP inventories is possible at any time.
The solution’s scalable cloud architecture also provides a solid foundation for future innovations. Whether artificial intelligence, machine learning, or predictive maintenance – new technologies can be easily integrated and put to use immediately.
Improved efficiency and future-proofing with SAP Digital Manufacturing
“With SAP Digital Manufacturing, we didn’t just digitize our paper-based processes; we realigned our production with a focus on digitization and harmonization. The result is a seamless, efficient solution that positions us optimally for the future,” summarizes Frank Möller, Head of IT at MAGNET-SCHULTZ. IT operating costs were reduced through system consolidation and the outsourcing of administrative IT tasks thanks to SAP DM’s “Software-as-a-Service” delivery model.
“SAP Digital Manufacturing forms the foundation for continuously improving our production and integrating new technologies,” notes Frank Möller. Looking ahead, this opens up opportunities to further optimize production and continuously increase efficiency. The next steps involve rolling out the existing functionality of SAP DM to additional production lines.
At the same time, additional production areas are being analyzed using delta analyses to identify specific requirements and expand the base template accordingly.
Based on this, these areas will also be integrated into SAP DM. The goal is to further streamline the system landscape and establish SAP DM as a comprehensive, strategic manufacturing platform at the two main plants in Memmingen and Memmingerberg.
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