Strategy “Smart Factory” Beiersdorf Ag

BSS – Beiersdorf Shared Services STRATEGY “SMART FACTORY” BEIERSDORF AG

Branch: Consumer Business und adhesive tapes for consumers and industry (TESA).

Customers: Consumers, Trade and Industry

Regions: Worldwide

Sales: 6.300 Mio. €; 17.400 Employees*

EBIT: 861 Mio. €* (2014)

Beiersdorf’s brands unite international trends with regional consumer needs because no two markets are the same and consumer skin care requirements differ considerably from continent to continent.

BSS – Beiersdorf Shared Services 9/6/16 | Page 2 BEIERSDORF AG

Branch: Customers: Regions: Sales: EBIT: Consumer Consumers, Worldwide 6.300 Mio. €; 861 Mio. €* Business und Trade and 17.400 (2014) adhesive tapes Industry Employees* for consumers and industry (TESA).

Beiersdorf’s brands unite international trends with regional consumer needs because no two markets are the same and consumer skin care requirements differ considerably from continent to continent.

BSS – Beiersdorf Shared Services 9/6/16 | Page 3 DRIVERS OF THE BLUECORE PROGRAM – GLOBAL STANDARDIZATION

Support the Beiersdorf Business Model

BlueCore

SC-”Fix the Basics” / FI – Global Standardiza- IT-Strategy tion

BSS – Beiersdorf Shared Services 9/6/16 | Page 4 BLUE CORE SUPPORTS THE OVERALL BEIERSDORF BUSINESS MODEL

BlueCore has been identified as key driver for standardized Systems & Processes

ü Financial Compliance & Reliability ü SC - Fix the Basics Improving Processes / Systems • Reliable Masterdata • Professional Planning Processes • Effective and Efficient Business Steering

BSS – Beiersdorf Shared Services 9/6/16 | Page 5 VISION OF “SMART FACTORY”

1 2 3

Common User-Interface – From Data Collection to imme- Flexible design of process multiple devices diate action to further activities steps by the staff

4 5 6 Shopfloor centric Smart mobile Increase Productivity system (remote access and control) with same Quality

7 8 9

Small lot sizes Smart factory run itselfs Context help and flexibility

BSS – Beiersdorf Shared Services 9/6/16 | Page 6 STRATEGIES OF “SMART FACTORY” Initial Situation – Year 2009

Complex environment 1 Complex environment 2 Complex environment 3

BSS – Beiersdorf Shared Services 9/6/16 | Page 7 BLUE PARTNERSHIP

BSS – Beiersdorf Shared Services 9/6/16 | Page 8 BLUE PARTNERSHIP

BSS – Beiersdorf Shared Services 9/6/16 | Page 9 BLUE PARTNERSHIP

BSS – Beiersdorf Shared Services 9/6/16 | Page 10 MES PARTNER TREBING + HIMSTEDT • 100 % Private owned and run by founder, established 1992 • From the north to the south: Schwerin (HQ) | Stuttgart | Basel (CH) • International Project Experience • SAP Partner since 2005 • Beiersdorf Partner since 2008 • Core Competence: The SAP MES Experts

Manufacturing Execution System (MES) with SAP Portfolio • Plant Performance Management • Variant Production • Traceability • SAP Manufacturing Suite Service Partner and Re-Seller (VAR) • Partner for Industry 4.0

BSS – Beiersdorf Shared Services 9/6/16 | Page 11 SAP MES EXPERTS

SAP Manu- facturing Suite

BSS – Beiersdorf Shared Services 9/6/16 | Page 12 STRATEGIES OF “SMART FACTORY” The figure present us the current situation of SAP MII Horizontal integration across the entire value chain Vertical integration and networked production systems production networked and integration Vertical

PP1 PE2 Batch data Material data Status of process orders Safety data Time ticket for process orders Transport order Consumtion Process order Goods receipt Goods receipt OAE-Data Employee data Confirmation of transport orders Truck loading data Time records Confirmation of full pallets

Two Central MII-Server

BSS – Beiersdorf Shared Services 9/6/16 | Page 13 STRATEGIES OF “SMART FACTORY” Initial Situation

Complex environment 1 Complex environment 2 Complex environment 3

BSS – Beiersdorf Shared Services 9/6/16 | Page 14 STRATEGIES OF “SMART FACTORY” Current situation of SAP MII – 1 Environment for 8 Manufacturing Plants Horizontal integration across the entire value chain Vertical integration and networked production systems production networked and integration Vertical

Two Central MII-Server

BSS – Beiersdorf Shared Services 9/6/16 | Page 15 DATA HIGHWAY – TWO CENTRAL MII SERVERS PLM ERP

MII Server I MII Server II Times Traffic Control Center Non Times Sensitive Data: Sensitive Data: Orders Like Orders, Like Master Data Master Data Master Consumption

Confirmations etc. Consumption etc. Fast Lanes Truck Lanes

Shop Floor Systems

BSS – Beiersdorf Shared Services 9/6/16 | Page 16 STRATEGIES OF “SMART FACTORY” MII – Data Highway: Message Volume per Day PC Template Execution

Incoming download Outgoing download Outgoing upload Number of Incoming upload Production messages messages (Shopfloor messages (JCO Plant Shopfloor- messages (MII web- lines (MII Message-Listener) webservice calls) per BAPI calls) Systems Services) per day per day day per day

Poland 8 3 2378 5678 3038 3752

Berlin 7 3 2266 5512 2637 3283

Hamburg 34 4 4710 11830 12878 15948

Waldheim 18 3 3239 6567 6786 8443

Tres Cantos 11 3 2632 5932 4158 5160

BM Thailand 7 0

BM Mexico 14 3

SUM 99 22 17.490 41.030 32.135* 39.870

*+ 2000 LRC messages

BSS – Beiersdorf Shared Services 9/6/16 | Page 17 CASE 1: AUTOMATIC CONFIRMATION OF PALLETS

SAP GUI data entry

Automated data entry SAP MII

BSS – Beiersdorf Shared Services 9/6/16 | Page 18 CASE 2: AUTOMATIC CONFIRMATION OF TRANSPORT ORDERS

SAP MII SAP GUI data entry

Stand Laser IPC-Box barcodeScanner

Automated data entry

BSS – Beiersdorf Shared Services 9/6/16 | Page 19 CASE 3: LOAD RAMP CONTROLLER

SAP MII SAP GUI data entry IPC-Box Siemens ET200 „Busklemmen“

Automated data entry

RFID Scanner Wide area scanner honk Signal light Button „end truckloading“ creates transfer of material to the LSP (incl. delivery paper)

BSS – Beiersdorf Shared Services 9/6/16 | Page 20 CASE 4: TIME RECORDING AND ACCESS MANAGEMENT

intern Employee data

extern anonymous time records local HR SAP PO SAP MII data for payment

BSS – Beiersdorf Shared Services 9/6/16 | Page 21 FUTURE OPPORTUNITIES

1 SAP Plant Connectivity (PCo)

2 Self Service Composition Environment

3 Andon Boards

4 Dashboards for the factory building

5 Flexible autonomous employee scheduling

BSS – Beiersdorf Shared Services 9/6/16 | Page 22 POSSIBLE AREAS WHERE SIMILAR SOLUTIONS ARE CONCEIVABLE

1 SAP Plant Connectivity (PCo)

BSS – Beiersdorf Shared Services 9/6/16 | Page 23 POSSIBLE AREAS WHERE SIMILAR SOLUTIONS ARE CONCEIVABLE

2 Self Service Composition Environment

Self Service Composition Environment (SSCE) is a robust and lean standard- based platform to create, design, configure, and display dashboards based on your needs.

BSS – Beiersdorf Shared Services 9/6/16 | Page 24 POSSIBLE AREAS WHERE SIMILAR SOLUTIONS ARE CONCEIVABLE

Possible Messages: 3 Andon Boards • Cleaning order in progress • Bulk material not available • Primary packaging material not available • Label shortage • Secondary packaging material not available Wide screens • Staff shortage • Interruption occured • Machine is down • Plant maintenance order is in progress • Process order not started

BSS – Beiersdorf Shared Services 9/6/16 | Page 25 POSSIBLE AREAS WHERE SIMILAR SOLUTIONS ARE CONCEIVABLE

Possible Messages: 4 Dashboards for the factory building • Cleaning order in progress Tablets with WLAN and /or • Bulk material not available notebooks and/or desktop • Primary packaging material not available • Label shortage • Secondary packaging material not available • Staff shortage • Interruption occured • Machine is down • Plant maintenance order is in progress • Process order not started

BSS – Beiersdorf Shared Services 9/6/16 | Page 26 POSSIBLE AREAS WHERE SIMILAR SOLUTIONS ARE CONCEIVABLE

5 Flexible autonomous employee scheduling

The aim of KapaflexCy is that the shift schedule is not centrally planned and must be distributed by the shift supervisor, but the employee agree cooperatively - for example, with the aid of social media related functions and other interactive communication technologies on a Smartphone - among themselves to production targets job fair to reach and bring their own needs for leisure time and working in harmony.

BSS – Beiersdorf Shared Services 9/6/16 | Page 27 THANK YOU FOR YOUR ATTENTION!

BSS – Beiersdorf Shared Services CONTACT

Beiersdorf Shared Services GmbH T +49 40 4909-105 Quickbornstrasse 24 F +49 40 4909-4932 20253 Hamburg E [email protected] Germany

Intranet (Intern) http://bss-intranet.global.bdfgroup.net/en Intranet (Customer) http://bss-customer.global.bdfgroup.net/en Website http://www.beiersdorf.de/karriere/arbeiten-bei-beiersdorf/unsere-tochterunternehmen

BSS – Beiersdorf Shared Services 9/6/16 | Page 29