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  • SAP Digital Manufacturing SAP Digital Manufacturing

    SAP Digital Manufacturing

    For shop floor production management

    Control production in real time and monitor it with full transparency

    SAP Digital Manufacturing (SAP DM) is SAP’s cloud-based manufacturing execution solution (MES). It connects production planning with execution on the shop floor. While manufacturing and process orders continue to be planned in SAP Cloud ERP, SAP DM controls production directly in the plant and documents every step in real time.

    This gives companies a transparent view of production progress at all times. Bottlenecks become visible early, and production can be managed more efficiently and with a higher degree of automation.

    Why SAP Digital Manufacturing?

    Real-time transparency across all production processes

    Suitable for process and discrete manufacturing

    IoT connectivity for machines and measuring equipment

    Seamless integration into the SAP landscape

    Optimized resource and quality processes

    Modern AI technologies for continuous improvement

    How SAP Digital Manufacturing works

    SAP Digital Manufacturing manages the execution and tracking of production on the shop floor. Production data is captured either automatically from machines or manually by employees.

     

    Automated feedback through IoT

    In modern production environments, machines can be connected directly to SAP Digital Manufacturing through IoT (Internet of Things). Equipment then reports automatically:

    • which work step has been completed
    • which workpiece has been processed
    • what the current production status is

    This makes real-time production data available without manual entry.

    Manual feedback in the Production Operation Dashboard

    Not every production area is fully automated. That is why employees can document completed work steps directly in the Production Operation Dashboard (POD). All feedback is recorded centrally and remains traceable at all times.

    Full visibility into production at all times

    SAP DM creates transparency across all production processes and manufacturing orders. Responsible teams can immediately see:

    • current order progress
    • potential delays
    • expected completion dates
    • whether planned delivery dates can be met

    This transparency helps identify bottlenecks early and respond faster to deviations.

    Seamless integration into your SAP landscape for transportation and warehouse logistics

    One key advantage of SAP Digital Manufacturing is its strong integration with other SAP solutions. Through SAP Business Technology Platform (BTP), processes can be connected without complex interfaces. This supports smooth operations from the warehouse to shipping.

    A particularly important benefit is the seamless connection between production material supply and SAP Extended Warehouse Management (EWM), both in embedded and stand-alone scenarios. This ensures that required components are available at the right machine at the right time.

    Once production is complete, shipping can be triggered directly, for example through SAP Transportation Management, or finished goods can first be moved into storage.

    Example architecture with SAP Cloud ERP and Digital Manufacturing (Source: Scheer)

    Quality management directly within the production process

    SAP DM supports all production-related quality measures, from sample-based quality inspections of finished goods to the early detection of deviations through non-conformance management. The capture of measurement data can also be simplified through the direct integration of measuring equipment, similar to machine connectivity.

    Key benefits include:

    • early error detection to reduce damage
    • lower scrap and rework costs
    • documented quality decisions
    • direct transfer of quality notifications to SAP Cloud ERP and SAP QM

    Use resources and qualified employees reliably

    Not every person is authorized to carry out every work step. After login at the workstation, SAP Digital Manufacturing automatically checks whether the required qualifications are in place. Relevant training and certifications can be managed, for example, through integration with SAP SuccessFactors. This ensures that only qualified employees perform the right tasks.

    In addition to production control, SAP Digital Manufacturing supports short-term planning of required production resources through Resource Orchestration (REO). Production planners can therefore respond flexibly to events in the manufacturing environment, for example in cases of:

    • machine downtime,
    • staffing shortages, or
    • short-term changes to the production plan.

    By analyzing machine and workforce utilization, bottlenecks become visible and resources can be deployed more efficiently.

    Future-ready production through automation, integration, and AI

    With SAP DM, you can increase the level of automation in your production environment and create the foundation for a step-by-step move toward more connected and more intelligent manufacturing. Depending on the maturity of your production setup, machines, measuring equipment, and employees can be integrated into consistent digital processes.

    Another major benefit is the seamless integration with other SAP solutions. This creates end-to-end processes, from production planning to warehousing and logistics through to quality management. Existing system and machine landscapes can also be connected more effectively.

    At the same time, SAP continues to expand its AI capabilities. Advanced algorithms and modern technologies such as machine learning help accelerate root cause analysis.

    Because every production site has its own processes and requirements, SAP Digital Manufacturing is adapted to the specific shop floor. The result is a solution that supports individual manufacturing processes effectively while also creating a future-ready foundation for further digitalization.

    Looking to digitize your production, connect machines intelligently, or expand your SAP landscape with Digital Manufacturing? Scheer IDS can support you from strategy and integration through implementation.

    Your expert

    A profile of Scheer employee Joachim Becker

    Joachim Becker

    Supply Chain Management