End-to-End Process Configure2Operate in Mechanical & Plant Engineering

Globalized markets with high pressure for change, enhanced customer orientation – in some cases even including bespoke production – and the trend towards more sustainability in the value and supply chains: The demands on mechanical and plant engineering are immense. In this challenging environment, end-to-end (E2E) digitized business processes give companies the agility and resilience they need to adapt to changing conditions and stay ahead of the competition. This is why valantic developed the end-to-end process Configure2Operate. It covers every phase of the product lifecycle – from machine or plant configuration through to operation.

Our system demo uses the example of the fictitious FTS Inc., a manufacturer of automated guided vehicles (AGV), to show which SAP solutions can be used in mechanical and plant engineering to digitize the value and supply chains end to end and improve their flexibility, resilience and sustainability. The focus is on the interaction of various SAP applications for the process steps Quotation and Configuration, Solution Order Management, Production Planning and Execution, Creation of the Digital Twin and Monitoring, Service Order Execution, and Data-Driven Controlling. These are state-of-the-art processes that are fully integrated in the SAP cloud solutions. Harmonized user interfaces ensure a largely uniform application experience across the entire process.

With the end-to-end process Configure2Operate, FTS Inc. maps the entire business process – from preparing the quotation to delivery of an AGV, including its service and maintenance – using entirely standard SAP functionalities. The transport system is configured individually for the customer, produced in accordance with the parts list and modeled as a digital twin. This digital twin supports subsequent services and enables controlling over the entire product life cycle.

Configure2Operate consists of six seamlessly transitioning steps: Quotation and Configuration, Solution Order Management, Production Planning and Execution, Creation of the Digital Twin and Monitoring, Service Order Execution, and Data-Driven Controlling.

In the configurator, users are guided through an intuitive process in which the parts lists and price calculation function also run simultaneously. Discount options are available as well. The solution also informs of any decisions that need to be made. During configuration, sales staff have a wide range of templates available in different languages for conveniently generating all the necessary quotation documents. The quote can be sent directly from the solution, adjusted in accordance with the customer’s response and finally converted into an order in SAP S/4HANA.

After the customer has accepted the offer, SAP S/4HANA Cloud creates a solution order. This new object type allows FTS Inc. to seamlessly link its sales and service functions. Solution order management helps the company offer fully integrated solution packages and thus generate higher margins. These packages can include products as well as various one-off and recurring services, such as the installation and commissioning of the AGV and regular maintenance.

Customer service can access different object types in a solution order – such as the sales items of the AGV, as well as the service contract items, such as on-site installation and battery tests. Dependencies between the objects and order items can also be stored. To this end, products and services are added to the solution order and all relevant details, such as project schedule, organizational data and history, are taken over. In this way, it is possible to monitor the project’s progress and inform any involved parties about status changes. Based on the solution order, SAP S/4HANA creates various order types – such as sales or service orders – and combines these into a complete order. The solution order can be used to trigger overall invoicing. Comprehensive controlling is also possible.

During production execution, DMC triggers the provision of the required components through its integration with SAP Extended Warehouse Management (SAP EWM). DMC assists  production workers with, among other things, a customizable dashboard that displays the pending worklist, a flexible assembly workflow, and automated checks during production. When the last operation of the production order is complete, DMC sends a final confirmation to SAP S/4HANA and, with the completion message, the creation of a digital twin is initiated in the SAP Asset Intelligence Network (SAP AIN) collaboration tool. In addition, the goods receipt is integrated in SAP EWM.

The collaboration tool SAP Asset Intelligence Network supports the cooperation between FTS Inc., its customers and spare parts suppliers via the digital twin of the transport robot concerned. The previously in Asset Central created digital twin receives basic information from other SAP systems within SAP AIN and is enriched with additional data relevant to the customer and other partners, such as location, installation date, spare part information, and technical documentation. Instructions for scheduled maintenance and photos of damage can also be stored. As soon as the equipment has been published in SAP AIN, all partners can work with the digital twin and view all the machine data that the equipment sends to the platform.

This allows monitoring and lets recommendations for action be derived. Users can determine, among other things, when scheduled maintenance is due or if a malfunction has occurred. In this case, AIN initiates the service process. In our scenario, the AGV’s battery has overheated. As soon as the physical equipment sends the appropriate real-time temperature data, that exceeds a limit value, AIN automatically sends an e-mail notification to the person responsible. This person, in turn, creates an emergency ticket with a status description for customer service directly in AIN which serves as the basis for the service order later on. In addition to the measured values a description of the condition can be added.

For the controlling and reporting of the solution order and other objects, FTS Inc. uses the analytics solution SAP Analytics Cloud. With this, FTS’s customer service determines all the relevant data, information and KPIs and prepares them for different stakeholders at the customer. SAP Analytics Cloud merges the information from various source systems, such as the digital twin in AIN, SAP S/4HANA, DMC, FSM and third-party solutions. SAP Analytics Cloud thus serves as a single point of truth and single point of entry.

Preparing and analyzing the data lets different information needs be addressed. Customer service can show, for example, whether the investment in the automation solution has paid off, the number of transports made with it per day, and the weight transported per trip. At the same time, automated forecasts and simulations can be prepared to clarify, for example, whether a lower weight per trip affects the loading cycles or maintenance intervals. For the customer, this is important information for optimizing operations.