Solution in Detail
SAP Business Suite
Integrated Product Development:
Managing for Speed, Quality, and Flexibility
Table of Contents
4
5
Quick Facts
12
Optimizing Profit by Integrating
Design, Procurement, and Delivery
Supplier Identification and
Onboarding
Interconnecting Design,
Manufacturing, and Procurement
8
Reducing Development Time and
Encouraging Innovation from the
Start
Product Portfolio Planning and
Product Initiative Management
Sharing Data in Component
and Task Sourcing for Stronger
Negotiations
Collaborative Bidding and
Purchase Order Management
Spare Parts Management
13
Synchronizing Design with
Manufacturing for Quick
Ramp-Up to Production
Prototyping and Manufacturing
Ramp-Up
Project Management
Product Structure Management
and Variant Configuration
Quality Control
Quality Improvement
Material Master Management and
Document Management
Development Collaboration
Handover to Manufacturing and
Service
Product Costing
Service Ramp-Up
Quality Engineering
Manufacturing Process
Planning
Engineering Change Management
Visual Assembly Planning
Manufacturing Collaboration
Complaints and Returns Analysis
Service Portfolio Planning
16
The Rewards of Integrated
Product Development
For More Information
Quick Facts
Summary
Industry leaders are learning through
experience to reduce cost and time to
market through tight integration of
product development from design
through service. The SAP® Business
Suite software facilitates such collaboration across the product lifecycle,
from the earliest stages, among all
stakeholders in your value chain.
Business Challenges
•• Integrate disconnected design,
procurement, and manufacturing
silos to speed time to profit
•• Respond to shrinking margins by
delivering new products to market
•• Enable development efficiency and
collaboration to reduce lost time
•• Deliver consistent quality while lowering
costs and reducing the number of
change cycles
•• Manage change effectively throughout
the product lifecycle
Key Features
•• Collaborative design – Help all stakeholders take part early, so that handoffs
are smooth and changes minimal
•• Transparent product configuration –
Store product structures centrally for
ready access by suppliers, engineers,
shop floor personnel, and service
representatives
•• Integrated manufacturing – Move
smoothly from a development bill of
material to a manufacturing bill of
material, and control change efficiently
•• Ease of service – Design products that
are easier to service and make sure that
technicians have the materials they need
Business Benefits
•• Higher revenues from new product
delivered quickly in response to market
demand
•• Lower product costs with collaborative
designs that help ensure fewer changes
in manufacturing
•• Greater impetus for innovation
through deeper cooperation across
functions
For More Information
Call your SAP representative today,
or visit www.sap.com/solutions
/executiveview/product-development
/streamline-product-development
/index.epx.
Optimizing Profit by Integrating Design,
Procurement, and Delivery
Product development faces a harsh marketplace. Comparison
shopping is as fast as a mouse click, and buyers expect the best
in quality, innovation, and service. Revenues are vulnerable; the
competitive landscape volatile. You must synchronize design,
development, sourcing, and manufacturing to prevent waste,
minimize changes, and speed time to profit. SAP® Business
Suite software helps you with support for product development
processes that align product definition and production ramp-up.
Companies create value for their customers through differentiated offerings,
which consist of tangible products,
services, or combinations of both,
depending on the industry. A successful
company designs, develops, and delivers
its offerings as a collaborative effort
among all members of its global web of
brand owners, suppliers, and distributors.
Interconnecting all product- and servicerelated stakeholders in a single business
network breaks down the walls among
the functions of marketing, R & D, procurement, manufacturing, logistics, and
service. And that new interenterprise
and cross-functional collaboration is the
secret behind today’s profitable, industryleading offerings. The ecosystem as a
whole can constantly fine-tune processes
and products to respond to changing
customer needs and market demands.
Integrated product development, supported by SAP software, is crucial to the
collaborative enterprise of today (see
Figure 1). It synchronizes core product
definition processes and defines a production ramp-up process in which product structures are continually refined,
tested, and validated. The early development phase has one important goal:
making the right design decision the
first time around. In a truly integrated
development environment, choices are
made on the basis not only of technical
specifications and projected costs but
also of estimates regarding manufacturability, testability, serviceability, and
eco-friendliness. Internal collaboration
among managers in strategic sourcing,
on the shop floor, and in aftersales
service helps ensure that all relevant
information is immediately available to
engineers. And authoring and data visualization tools are freely shared across
this network to encourage data consistency and shorten time to market. All
design and manufacturing partners have
a voice in the process as well, including
staff members of distributed development
subsidiaries and external enterprises with
shared goals.
Integrated product development, in short,
speeds up your time to profit. It allows
you to address these key challenges:
•• Responding to margin pressure by
adding new products to the
marketplace
•• Designing for profit and avoiding costly
reengineering and remake
•• Accelerating development and rampup time
•• Optimizing sourcing potential and
facilitating supplier integration
After stakeholders agree on a strategic product portfolio, product development breaks down market and
customer demands into detailed requirements and
specific concepts. Your design team analyzes alternative proposals and selects the most promising.
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
5
INTERCONNECTING DESIGN, MANUFACTURING, AND PROCUREMENT
The challenges associated with materials
and component sourcing are all too
familiar. When your sourcing strategy is
weak, you lose negotiating power, and
buying from several sources at once may
mean maintaining disparate product
masters that can spawn costly part redundancy. Last-minute design changes
caused by issues in development or
manufacturing eat away at your profits
and put future compliance at risk.
Inefficient and disjointed design brings
similar disaster. Lack of visibility over
production capabilities and failure to
consider constraints like logistics and
testing during development cause
unnecessary design and production
remake. And if communication of lastminute changes is slow or incomplete,
you lose additional time and risk tooling,
manufacturing, and assembly errors.
Poorly integrated manufacturing is a
third area for time-consuming change
interactions and optimization passes. If
your partners and suppliers have minimal
chances to contribute to planning steps,
ramp-up can only suffer. Inadequate
management for product and variant
configuration leaves you with many
similar products that require individual
Figure 1: Integrated Development Connecting Design, Sourcing, and Ramp-Up
Product
division head
Head of R & D
Head of procurement
Head of manufacturing
Product design
Component and task sourcing
Ramp-up for production
Marketing
Head of
marketing
Product
portfolio
planning
Product
initiative
management
Development
Head of R & D
Project
management
Material
master
management
Document
management
Product
structure
management
Development
collaboration
Product
costing
Engineering
change
management
Variant
configuration
Procurement
Head of
procurement
Supplier identification and
onboarding
Manufacturing
Head of
manufacturing
Manufacturing
collaboration
Quality
engineering
Service
Head of service
Complaints
and returns
analysis
Service
portfolio
planning
Quality
improvement
Collaborative
bidding
Purchase
order
management
Prototyping
and manufacturing ramp-up
Spare parts
management
Handover to
manufacturing
and service
Quality
control
Service
ramp-up
Manufacturing process
planning
lifecycle support but offer little marketable differentiation. Without shared
transparency into cost, process, and
compliance, you risk designing and
developing products with restricted
manufacturability.
SAP Business Suite software helps you
address these limitations through robust
functionality supporting integrated product development processes. In addition,
business analytics in combination with
highly visual dashboards are built into
the SAP Product Lifecycle Management
(SAP PLM) application, part of SAP Business Suite. You can very quickly get an
overview of key performance indicators
(KPIs) for several related processes
(see Figure 2), such as sales volume per
customer and product performance.
Figure 2: Visual Business Analytics Built into SAP® PLM, Supporting Product
Development
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
7
Reducing Development Time and
Encouraging Innovation from the Start
With the product design steps in integrated product development, you can
combine product portfolio management
and project management with methodologies for product design, collaboration,
costing, manufacturing, and assembly.
After your stakeholders agree on a
strategic product portfolio, integrated
product development breaks down market
and customer demands into detailed
requirements and specific concepts.
Your design team analyzes a set of possible alternative proposals, selects the
most promising, adds technical details,
and performs functional calculations. To
ensure higher flexibility and shorter time
to market, you may already outsource
some of these steps to various suppliers.
However you implement it, collaborative
product design plays an important role
in reducing development time and reenergizing the innovative spirit.
The process continues by involving
manufacturing from the outset. You validate design definitions against requirements for manufacturability that have
been both well prepared and well communicated. The definitions capture the
design characteristics and material and
functional aspects of products, with all
their implications for manufacturability,
usability, and cost. Precise cost estimates
complete this critical phase of the lifecycle and launch you on the path toward
the best product margins.
To help you manage product design
for integrated product development, SAP
software combines support for the following processes in a single, integrated
process flow:
•• Product portfolio planning and product
initiative management
•• Project management
•• Product structure management and
variant configuration
•• Material master management and
document management
•• Development collaboration
•• Product costing
•• Quality engineering
•• Engineering change management
•• Manufacturing collaboration
•• Complaints and returns analysis
•• Service portfolio planning
flow management. Supporting all those
processes is a transparent knowledge
base that enables quick and comprehensive management oversight.
Product initiative management helps
support such endeavors as bringing a
new product to market, aggregating data
for all processes within the initiative, and
making oversight immediately available
to all stakeholders. Functionality in SAP
PLM lets you plan financial and capacity
resources and track the current status of
your initiative with a wealth of customizable metrics. You can monitor progress
by scheduling and tracking reviews and
decision points, synchronizing data
among objects in the SAP Portfolio and
Project Management application, part of
SAP PLM.
PRODUCT PORTFOLIO PLANNING AND
PRODUCT INITIATIVE MANAGEMENT
PROJECT MANAGEMENT
To meet the long-term goals and shortterm objectives that keep your company
competitive, you need to manage portfolios, projects, and operations holistically
for maximum efficiency. SAP software
helps your product managers and strategists adjust product portfolios and future
investments while tracking the performance of existing product lines. These
tasks require rigorous strategy planning,
resource and schedule planning, cost
and profitability control, and decision
Successful project planning enables you
to plan, manage, and control the entire
project development process, from initial
inspiration to first customer offer. SAP
Portfolio and Project Management supports your network planning techniques
and includes aggregative tools that track
project costs, revenues, margins, schedules, and resources. A project builder
lets you set up a project and monitor its
status, and a project planning board can
simplify project control, combining tabular and graphical data in a global overview.
The SAP Business Suite software integrates project management with HR and
accounting processes as well. You have
immediate oversight, with a view into
task assignments and time reporting to
help you measure and track efforts, budgets, and costs. Project execution steps
guide the entire development process
and help ensure cost reduction with efficient project management, while intelligent program management drives sound
investment and divestment decisions
for products and projects. You can base
project cost calculations on data from
the accounting processes, for example.
SAP software also helps you manage
phase gates, allowing you to define standard processes with milestones and establish criteria for advancement between
phases. You can also review and manage
progress through various decision points
at which you can opt to discontinue nonperforming projects.
PRODUCT STRUCTURE MANAGEMENT
AND VARIANT CONFIGURATION
Product structures describe the product
itself and supply product-related data
needed for manufacturing. Product
structure management functionality in
SAP software integrates the entire development process, from the creation of
requirements trees to the generation of
bills of material or recipes. Discrete manufacturing implements bills of material
through routings, and process manufacturing implements specifications through
recipes. Integrated product development
functionality in both cases aligns product
structures with such authoring tools
as computer-aided design (CAD) and
computer-aided engineering (CAE). This
enables engineers to populate, update,
and change product structures directly
from the tool layer in a virtual 3-D
environment.
In industries like the automotive industry,
products are offered to the market with
dizzying arrays of options in many possible
combinations. In such arenas you must
build flexible product structures that
account for all possible variants while retaining visibility and agility across design,
development, manufacturing, and service
functions. Variant configuration management through SAP software helps you
create the initial product model with
reusable constraints and dependencies,
along with the bill of material (BOM) and
routing that include all variants within a
single structure. This helps you realize
the variants quickly for timely response
to customer demand.
MATERIAL MASTER MANAGEMENT
AND DOCUMENT MANAGEMENT
Material master management helps optimize interdepartmental product development by enforcing consistent central
SAP Business Suite software integrates project
management with HR and accounting processes.
You have immediate oversight, with a view into
task assignments and time reporting to help you
measure and track efforts, budgets, and costs.
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
9
storage of all relevant data from the
beginning to the end of the development
process. Integrated product development
as supported by SAP Business Suite software addresses all development functions, including planning, managing
technical documents and parts, aligning
product and process structures, classifying products and processes, and configuring variants (see Figure 3).
Document management includes the
processes, procedures, and tools used
to create, maintain, and manage notes,
documents, and other content. In addition
to support for document management,
SAP Business Suite software provides a
full set of security and access control
features for managed content. You can
manage all file and data types, whether
textual or graphic, and link each to a
wide variety of relevant business objects,
including purchase requisitions, sales
orders, assemblies, and equipment.
Associated functionalities help you
author, scan, structure, render, and
print documents.
DEVELOPMENT COLLABORATION
With the development collaboration functions of integrated product development,
you can initiate and manage changes
and new designs in close cooperation
with your external partners, which helps
keep implementation effective and efficient. It also helps ensure that information
is exchanged securely with the appropriate partners for each new version.
PRODUCT COSTING
With margin pressure increasing exponentially these days, you want to begin
cost control right at the instant of innovation. Functions for product costing
help you pinpoint the costs incurred by
your products and services and break
down expenses for each step in development and production. In addition to cost
estimation for the early stages of product
development, the software also supports
lot-based and periodic cost management
for sales orders and materials.
QUALITY ENGINEERING
Quality engineering, a critical business
process in integrated product development, helps ensure that your products,
processes, and services meet your
exacting standards right from the start.
Even during the early stages of product
design and development, you must have
the correct quality tools in place and
implement appropriate quality-planning
strategies in your processes. Quality
remains a significant consideration at
each development stage for a new or
revised product.
Quality engineering with SAP software
starts by defining deliverables and quality
gates in a project, and it includes creating
a control plan, executing regular inspections, managing suppliers effectively, and
maintaining quality-related documents.
The quality engineering function also
produces the product failure mode and
effects analysis (FMEA), an important
guide for development and collaboration.
ENGINEERING CHANGE MANAGEMENT
SAP Business Suite software functions
for use in integrated product development
support collaboration. This underpins
Figure 3: CAD Integration to Support Engineering and Design Collaboration
comprehensive and flexible engineering
change management in the reduced
number of these cases that occur despite
well-integrated product development.
Each engineering change request triggers a carefully managed internal review
and change process.
For all participating product stakeholders, the product change process is very
clear and intuitive. Suggestions, improvements, and changes are tracked directly
inside a bill of material by redlining the
inclusions. Tightly integrated with authorizations and engineering change management, color-coded BOM redlining
facilitates easier and more efficient
collaboration.
After at least one round of review by
all stakeholders, from sourcing through
development to manufacturing, the request becomes an engineering change
order, which initiates and tracks physical
alterations to the product. Uninterrupted
transparency across your business network helps ensure that all participants
are kept informed and can learn to avoid
the issue that made the change
necessary.
MANUFACTURING COLLABORATION
Manufacturing collaboration engages
manufacturing in product development,
innovation, and quality management
processes at an early stage. This function
integrates data on product design and
materials with simulation and calculation
information to optimize the manufacturability of new designs.
When the product is handed over to
manufacturing, you create a full project
status report and review the deliverables
of the development phase so that you
can complete the development checklist.
During manufacturing collaboration, you
also record and monitor the progress of
sourcing tasks.
COMPLAINTS AND RETURNS ANALYSIS
Successful companies respond nimbly to
changing customer demands. Complaints
and returns analysis is an important tool
for maintaining that agility. This process
drives the complaints and returns workflow, from recording complaints to processing them, while performing statistical
evaluations that capture the feedback
and channel it to the quality improvement
process.
With SAP software, you can manage
the entire complaints and returns process. You can categorize and prioritize
complaints according to product and
revenue impact, enter product change
requests with complaint reports, and
optimize product to boost customer
satisfaction and facilitate sustainable
long-term relationships.
SERVICE PORTFOLIO PLANNING
Service portfolio planning aligns plans
for service strategy with product development from the earliest development
phases. Integrated product development
support in SAP software lets you review
and approve product definition and design
with an eye to serviceability, including
ease of maintenance and low cost of
standard services. Product changes no
longer catch your field technicians by
surprise, and your maintenance and upgrade structures have a solid foundation
in customer realities.
Project execution steps guide the entire development
process and help ensure cost reduction with efficient
project management. Intelligent program management
drives sound investment and divestment decisions for
products and projects.
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
11
Sharing Data in Component and Task
Sourcing for Stronger Negotiations
With the intelligent sourcing functions of
the SAP Supplier Relationship Management application, you can integrate early
component and task assignments deeply
and cleanly with product design and
manufacturing. This can help control
costs, ensure compliance, and reduce
time to profit for new products.
Suppliers are clearly crucial partners
in your value chain, since the quality of
materials and services you receive from
them transfers directly to the products
and services you deliver to your customers. With increased supply chain visibility
and automated processes across the entire supply base, you gain crucial insight
into your overall spending. And that means
you can effectively monitor costs of
purchased goods and services across
your business network.
Sharing master data and change request
workflows also widens your sourcing
window, allowing you to bundle purchased
parts and reduce costly part redundancy
downstream. You also increase your ability
to minimize the impact of supply chain
interruptions and to supervise regulatory
compliance from the outset.
Component and task sourcing functions
in the SAP software drive supplier management, identification, and qualification
through the following processes:
•• Supplier identification and onboarding
•• Collaborative bidding and purchase order
management
•• Spare parts management
SUPPLIER IDENTIFICATION AND
ONBOARDING
Integrated product development evaluates potential vendors by collecting
and analyzing specially written questionnaires. Supplier self-registration makes
your supplier administration easier
while still keeping all contact and product information from your supply chain
partners immediately available.
COLLABORATIVE BIDDING AND
PURCHASE ORDER MANAGEMENT
The integrated product development
functions in SAP software support the
competitive bidding process by including
collaboration tools for external access of
documents. With this process, you create
bid invitations and integrate them in a
document storage functionality that is
managed in the Collaboration Folders
(cFolders) application, which is part of SAP
Business Suite. This document storage
functionality supports bid invitations for
complex technical products requiring
detailed specifications and plans.
As a purchaser, you create an area in
cFolders accessible to all your bidders.
In this area, you store your documents
and specifications. When a prospective
supplier submits a bid, cFolders creates
a separate area accessible only by that
Product structure management functionality
integrates the entire development process,
from the creation of requirements trees to
the generation of bills of material. Integrated
product development functionality aligns
product structures.
specific bidder and you. There the bidder
stores the plans and documents produced
in response to the invitation. After the
submission deadline for bids, you review
the bids, decide which one to accept, and
send the selected bid through an approval
workflow that culminates in a purchase
order.
Additional functions help you manage
purchase orders. When you process a bid
invitation or a live auction, you can create
a purchase order as a simple follow-on
document. After the submission deadline
for the bid invitation or auction, you decide
whether to reject or accept a bid. After
an accepted bid has gone through an
approval workflow, you use this business
process to create the downstream
documents.
SPARE PARTS MANAGEMENT
Support for spare parts management
enables you to deliver integrated planning to the service parts supply chain;
with the SAP software, you can record
parts history, plan parts inventory, and
model future demand. The functionality
provides extended features for handling
the large volumes of parts in an aftermarket supply chain and supports tight
integration of spare parts management
processes for materials and document
management.
Synchronizing Design with Manufacturing
for Quick Ramp-Up to Production
With the functions in SAP Business Suite
for ramp-up to production, you can synchronize design processes with manufacturing processes, helping ensure
continuous data integration and reducing
time to market. Through up-to-date
information shared instantaneously
between the engineering office and the
shop floor, you increase product quality
and keep the number of engineering
change and remake passes to a minimum.
Market launches become significantly
smoother with a common material
master and robust collaboration tools.
Well-managed ramp-up uses the continuous data flow to transform the engineering BOM to a manufacturing BOM
by defining prototypes and establishing
routings that structure the manufacturing
workflow. Product testing and manufacturing simulation can save costs and increase profit margins; building in quality
management from the beginning supports
your high standards for all products and
processes.
The functions in SAP software for
integrated production ramp-up support
the following processes:
•• Prototyping and manufacturing
ramp-up
•• Quality control
•• Quality improvement
•• Handover to manufacturing and service
•• Service ramp-up
•• Manufacturing process planning
•• Visual assembly planning
optimal product and process definition
for release to manufacturing.
During production ramp-up planning,
you start to define routings, which sequence the operations to be carried out
during production and the activities to
be performed in the operations. With integrated product development support,
you can use this routing structure as the
basis for preparing schedules, establishing
capacity requirements and costs, and
forecasting the use of materials and
work centers. You can also set up quality
checks to be carried out during production.
QUALITY CONTROL
With the quality control process, you prepare, execute, and monitor all types of
quality inspections. The typical starting
point is creating an inspection lot that
corresponds to an inspection order. The
inspection lot contains all relevant information, including the material to be inspected, the quantity to be inspected,
the sample size, product specifications,
and the characteristics being inspected.
During the documentation of inspection
results, the quality management features
of the SAP ERP application record a
Figure 4: Business Context Viewer Showing Monthly Quality Notifications in
Side Panel
PROTOTYPING AND MANUFACTURING
RAMP-UP
Support for prototyping in SAP software
means you can experiment with various
design versions to compare performance
and use the test results to develop an
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
13
numerical value or an attribute code for
each characteristic. A powerful native
algorithm then distills the inspection results to evaluate the product as a whole.
QUALITY IMPROVEMENT
Sound quality improvement requires
carefully recording quality problems,
systematically determining cause, and
successfully processing all related tasks
with a view to securing product and process quality. To handle quality-related
issues, SAP software creates quality
notifications (see Side Panel in Figure 4)
and analyzes each defect and its cause.
Then the process assigns the necessary
corrective and preventive actions.
HANDOVER TO MANUFACTURING AND
SERVICE
The handover to manufacturing generates
a new manufacturing product structure,
or updates an existing one, based on the
engineering product structure. Integrated
product development support through
SAP software focuses the process to
keep engineering and manufacturing
synchronized. Product structure synchronization functionality delivered with
SAP Product Lifecycle Management 7.02
allows customers to automate the synchronization between different BOM
views. With automated synchronization,
manufacturing organizations can significantly reduce the time to hand over the
engineering BOM to the manufacturing
BOM.
Additional visualization functionalities
support the communication between
engineering and manufacturing teams
(see Figure 5). Only the manufacturing
product structure is updated on the shop
floor, and you manage changes to the
engineering product structure through
engineering change requests. Creating
the service product structure early is
also helpful. It helps you ensure that
products are easy to repair and maintain.
SERVICE RAMP-UP
Service ramp-up functionality supports
your service organization by checking existing service offerings for applicability to
a new product and developing new services
where needed. Early involvement of
service managers helps ensure that all
designs are evaluated for serviceability
before being approved for development.
Full and transparent documentation
throughout integrated product development helps educate service engineers
Figure 5: Visualization Supporting Communication Across the Enterprise
incrementally and provides them with
the technical reference materials they
need for maintenance and repair operations in the field.
MANUFACTURING PROCESS
PLANNING
Manufacturing process planning describes
which operations have to be performed
during production of a product and in
what order. Employees in work scheduling create the routing with reference to
the material or bill of material. With support for manufacturing process planning,
you also process data in work centers,
where the individual operations are performed. Additionally, the functionality
specifies the resources and tools necessary in the production process.
New functionality in SAP PLM 7.02 offers
the following benefits:
•• Graphical support of the assembly
planning process
•• Concurrent engineering between product engineering and manufacturing
engineering. Assembly planning may
start very early, as soon as a minimum
amount of product engineering data is
available.
•• Development of the routing for the
assembly concurrently with product
development, with no need to wait for
a manufacturing BOM
•• Automatic creation of the manufacturing BOM and assignment of the manufacturing BOM components to the
routing based on the planning process
•• Extended visual support in validation
of the planning process
While easy to use because of the visual
support (see Figure 6), the software
enables you to manage complex relationships between engineering and manufacturing master data.
Figure 6: Visualization of the Assembly Planning Process
VISUAL ASSEMBLY PLANNING
Planning the assembly of complex products can be extremely time consuming
and prone to error, due to the extensive
amount of data that is involved. Keeping
the engineering BOM, manufacturing
BOM, and routing in sync requires comprehensive and up-to-date knowledge
of the product and the manufacturing
processes. For managing changes, which
may be initiated by product engineering
and then handed over to manufacturing
engineering, this task becomes extremely
difficult and is likely to produce inconsistent production master data.
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
15
The Rewards of Integrated Product
Development
Integrated product development support
through SAP Business Suite applications
(see table) offers the following benefits:
•• Optimized manufacturability by increasing collaboration grounded in
a single source of truth for productrelated information from design
through manufacturing
•• Lower product costs by streamlining
design and quality engineering processes and reducing remake rates
•• Process transparency across development, manufacturing, logistics, sales,
and service with strong configuration
control
•• Improved profit margins by eliminating
overlap and waste from every link of
your development chain
•• Shorter time to market by reducing
the number of engineering changes
and supply chain interruptions and
optimizing component and resource
usage
•• Simpler implementation of changes
by early detection of potential manufacturing problems and early receipt
of feedback from the shop floor on
planned changes
•• Savings on component costs through
increased lead time, demand bundling,
and reduction in the total number of
parts
•• Better internal compliance through
an improved vendor rating structure
and a broader time window for vendor
screening
•• Tighter external compliance by taking
important regulations into account in
the earliest development phases
FOR MORE INFORMATION
To learn more about how SAP software
helps integrate product development
across functions and enterprises, call your
SAP representative today or visit us on
the Web at www.sap.com/solutions
/executiveview/product-development
/streamline-product-development/
index.epx.
With increased supply chain visibility and automated
processes across the entire supply base, you gain
crucial insight into overall spending. And that means
you can effectively monitor costs of purchased goods
and services across your business network.
Process
SAP® Solution
Product design
Product portfolio planning
SAP® Portfolio and Project Management application
Product initiative management
SAP Portfolio and Project Management
Project management
SAP Portfolio and Project Management
Product structure management
SAP Product Lifecycle Management (SAP PLM) application
Variant configuration
SAP PLM
Material master management
SAP PLM
Document management
SAP PLM
Development collaboration
SAP PLM
Product costing
Product design cost estimation functionality in SAP PLM
Quality engineering
SAP ERP application
Engineering change management
SAP PLM
Manufacturing collaboration
SAP PLM
Complaints and returns analysis
SAP Customer Relationship Management application
Service portfolio planning
SAP Portfolio and Project Management
Component and task sourcing
Supplier identification and onboarding
SAP Supplier Relationship Management (SAP SRM) application
Collaborative bidding
SAP SRM
Purchase order management
SAP ERP
Spare parts management
SAP Service and Asset Management solution
Ramp-up to production
Prototyping and manufacturing ramp-up
SAP ERP
Quality control
SAP ERP
Quality improvement
SAP ERP
Handover to manufacturing and service
SAP PLM
Service ramp-up
SAP PLM and SAP Supply Chain Management applications
Manufacturing process planning
SAP ERP
SAP Solution in Detail – Integrated Product Development: Managing for Speed, Quality, and Flexibility
17
www.sap.com/contactsap
50 098 491 (11/12) ©2011 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,
SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other
SAP products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of SAP AG in Germany
and other countries.
Business Objects and the Business Objects logo, BusinessObjects,
Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other
Business Objects products and services mentioned herein as well as their
respective logos are trademarks or registered trade­marks of Business
Objects Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and
other Sybase products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Sybase, Inc.
Sybase is an SAP company.
All other product and service names mentioned are the trademarks of
their respective companies. Data contained in this document serves
informational purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty statements
accompanying such products and services, if any. Nothing herein should
be construed as constituting an additional warranty.