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MES Benefits in Detail

SAP ME Benefits to High-Tech Electronics Industry: Detail


  1. Benefits to High Tech Electronics Industry
  2. Benefits to Shop Floor
  3. Benefits to Traceability
  4. Benefits to Partners
  5. Other Benefits
  6. Benefits in Detail


1.        Benefits to High Tech Electronics Industry

•          Ensures standard consistency Industry Specific way to processes at different sites making a standard solution to future lines

•          Take whole process into control with agile proactive feedback increasing productivity and reducing rework & scrap.

•          Enables production data collection and analyzing throughout the whole product life-cycle.

•          Enables reduction of inventory by better managed WIP.

•          An ‘assurance’ against production defects.

•          Improved decision making massed on consistent information

2.       Benefits to Shop Floor

•          Only one system in use on entire shop floor replacing existing Excel and Access solutions.

•          Most of reporting done automatically by machine interfaces with bar codes.

•          Integrated manufacturing data management and reporting.

Interfaces to ERP & other systems.

3.       Benefits to Traceability

•          All information is gathered into one system locally.

•          Component data

•          Test data

•          Quality data

•          Genealogy (as built) data

•          Data warehousing enables multi site reporting.

•          Collect more accurate details for warranty and field service requirements

•          Enables accurate RMA (Return Management) handling by unit’s history data.

•          Accurate rework / repair data

 4.       Benefits to Partners

•          Track delivery schedules

•          Verify status of orders

•          Provide real time status, yield and fault information from shop floor

•          Enables multi site reporting from one server

•          Enables true virtual factory

5.       Other Benefits

•          Continuous and accurate material status, no more missing or vanished materials.

•          Continuous reporting of machine / process availability, utilization and effectivity.

•          Automated routing and Quarantining of non conforming parts or products.

•          Visible Quality performance measures (SPC).

•          Support regulatory requirements and compliance (ISO / QS  Annex)

6.       Benefits in Detail

 1)      Improving production planning and scheduling

        SAP ME can be integrated with plant floor control, SCADA, and asset maintenance and repair systems and provide real-time data concerning WIP to enableERP systems to have more accurate and up-to-date information to be used for production planning and scheduling purposes. SAP ME can also verify the production plan and enable the plan to be developed without time-consuming data entry and paper work that is typically required between shifts. As a result of these improvements, companies are better able to respond to and commit to additional customer orders


 2)      Improving production control

          Reduced manufacturing cycle times can be achieved by being able to view,    control and track production and enable re-routing in the event of unanticipated resource constraints. SAP ME can track product progress and component parts usage by individual serial numbers, conduct routing checks prior to the next manufacturing step to ensure that all process steps are followed, and provide production event notifications and corrective action feedback. Lead times are reduced by identifying bottle necks and implementing corrective action at the root cause of the problem. Product yields are increased through a reduction of rework. Using machine monitoring, it is possible to link maintenance to reported machine conditions and production events, rather than based on elapsed time with little or no input on production schedules.

 3)      Improving quality and reducing scrap costs  

         SAP ME performs product integrity checks by acquiring and analyzing test and inspection data and automatically routing products to the correct analysis, repair, and rework station in the event of a product non-conformance being identified. Once a repair has been made, SAP ME verifies that the correct tests are performed and that test results are satisfactory before allowing a product to be shipped. By identifying non-conformance at the earliest stage of the manufacturing process, manufacturers can take corrective action at the source and control the defect before additional cost and liability is occurred. In addition statistical process control (SPC) improves quality by quickly identifying when a process change has occurred and so that any variance from controlled conditions can be corrected.

 4)      Reducing work-in-process (WIP) costs

         By tracking WIP at the individual unit level instead of by lot or by container, less inventory inside work cells and less buffer inventory between work cells is required to be on hand to meet production schedules. Detailed WIP tracking can locate any WIP item on the floor and identify its process state, reducing the possibility of producing extra units or halting manufacturing due to a lack of on-hand inventory visibility

 5)      Reduced Need for Spares

         SAP ME can reduce the number of spare items that have to be built for each lot to take into account nonconforming items that will need to be scrapped. Items that fail can be tracked separately through a repair loop, corrected, and then reinserted with the original lot later, thereby reducing the total number of items that are scrapped and enabling a lower number of spare items to be manufactured.

 6)      Improving time to market in NPI

         By providing feedback for manufacturability into the design phase, SAP ME enables manufacturers to introduce new products faster and more effectively. Shop floor tracking can automatically produce reports at chosen process steps, providing instant feedback into the effectiveness of the design. Bottlenecks and inefficiencies can be resolved prior to mass production. By providing real-time visibility, manufacturers can quickly determine and prioritize top quality and production issues while ramping up production. Machine monitoring and control enable machine idle times to be analyzed for line balancing, set-up time reduction and work flow optimization. Automated reporting by machine or process used to monitor performance can ensure maximum effective utilization. In addition, product or process change orders can be driven centrally to multiple lines or sites. Site-to-site transfer of configuration data, enabling products to be introduced to manufacturing on a pilot line and then quickly transferred to a production line.

 7)      Reducing warranty costs

         By tracking components at the item level and providing a detailed genealogy, defects can be traced and wholesale recalls can be avoided with only the defective units recalled, instead of large lots.

 8)      Enabling improved control and collaboration for outsourced manufacturing

         SAP ME provides visibility to production data through a series of aggregated views and summarized reports. Collaborative manufacturing capabilities also enable aggregated views across various plants that can be viewed from the enterprise level and/or across the supply chain. In addition, configuration and product data can be transferred between plants, enabling a more efficient utilization of manufacturing resources and enabling a complete product genealogy.

  9)      Improving customer and supplier collaboration

          SAP ME provides a more granular view of order status. By providing controlled visibility into the shop floor, customers can view the status of their orders and real-time adjustments to expected delivery dates. Changes can be incorporated at the shop floor and customer expectations managed more accurately, reducing lead-times and improving on-time delivery enabling faster response to dynamically changing schedules Communications-on-demand requirements can be viewed directly by a supplier.

This concludes the benifits of SAP ME in detail for High Tech Electronics industry.

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