Augmenting SAP with a Specialized MES to Unlock Manufacturing Excellence

Operational complexity is a given for manufacturers of high-performance components in sectors like aerospace and the military. With 15 manufacturing plants worldwide, CarlisleIT (which was acquired by Amphenol last year) oversees a vast network of locations, including factories in Kent, Washington, and St. Augustine, Florida. Like many enterprises of its scale, SAP forms the backbone of its operations.

However, even with a robust ERP like SAP, CarlisleIT’s shop floor presented unique visibility and agility challenges at both locations. At the Kent location, which employs over 700 people across 35 work cells to produce intricate cable assemblies, operations hit a wall due to a lack of simple, understandable, real-time productivity metrics.

The St. Augustine factory, dedicated to ultra-reliable lightweight wire and cable, had a clear mandate: increase cell output. However, the operations lacked actionable metrics like machine Overall Equipment Effectiveness (OEE) to pinpoint exactly where improvements were needed.

These issues made it difficult to gauge progress accurately, identify bottlenecks, and empower the workforce to drive continuous improvement. Manual data collection via spreadsheets for shop activity transactions was time-consuming and inconsistent.

The ERP-MES Conundrum

Given these hurdles at both locations, CarlisleIT needed a Manufacturing Execution System (MES). The St. Augustine plant manager even initially envisioned leveraging SAP’s own MES module, which includes SAP Digital Manufacturing (SAP DM), for comprehensive shop floor control and deep integration with the SAP ecosystem.

However, after evaluating the locations’ particular needs, the company pivoted to implementing CAI Software’s ShopVue MES. Its out-of-the-box functionality aligned more precisely with the company’s specific, immediate needs while providing the essential integration with the core SAP system. Moreover, it promised significantly faster implementation.

Real-Time Data Meets SAP Standards

The ShopVue implementation, configured and tested over approximately four months, delivered what the two factories desperately needed: real-time data collection and reporting.

ShopVue began capturing labor hours and output for each work cell at the Kent factory. This fed real-time productivity and quality metrics directly to the teams on the floor, with aggregated views for management. The solution’s real-time data was directly connected to the labor standards already defined and residing within the factory’s SAP system. As a result, assemblers could now see their time, efficiency, and production rates benchmarked against SAP standards, live at their stations.

ShopVue’s impact was equally transformative at the St. Augustine plant. The implementation led to:

• Enhanced traceability: Features like Add Component prevented the use of incorrect components, captured material variance, and provided critical as-built traceability.
• Machine monitoring: The Direct Machine Interface (DMI) monitored machine status, instantly recorded downtime events, and alerted managers for improved OEE.
• Integrated quality: Online inspection plans allowed operators to report results directly into ShopVue, enabling rapid correction at the source, reducing rework and boosting throughput.
• Automated labeling: Automatic barcode label production at various stages fortified traceability.

These capabilities resulted in the company providing customers like Boeing with complete product genealogy – components used, worker and machine involvement, and test results.

The decision to augment SAP with a specialized MES paid off handsomely. By better engaging its workforce through transparent, real-time data and fostering continuous improvement, the Kent factory achieved annual labor cost savings exceeding $3 million. The availability of detailed labor and machine productivity reports also allowed CarlisleIT to focus its improvement projects with laser precision.

What This Means for SAPinsiders

The outcome of CarlisleIT’s case underscores a critical point: Demonstrating measurable ROI is paramount for any technology investment. While SAP provides the transactional backbone, specialized MES systems can unlock significant operational value.

Make MES a powerful ally to your SAP core. SAPinsiders in the complex manufacturing sector should not assume that their journey ends with SAP’s native MES module, especially if the business’s needs are highly specialized or need rapid deployment. While SAP provides robust and increasingly cloud-centric MES solutions like SAP DM, SAPinsider research acknowledges that the best-fit solution often involves evaluating how well a system addresses unique process needs out-of-the-box and its speed-to-value.

Integration can be a value multiplier. ShopVue’s ability to connect its real-time data to existing labor standards within SAP was crucial for CarlisleIT. It leveraged the company’s SAP investment while supercharging it with granular visibility. As systems like SAP S/4HANA provide enhanced integration capabilities and real-time analytics, the value of clean, contextualized data from robust MES integration only increases.

The right MES can unlock hidden ROI. The $3 million annual labor savings in CarlisleIT’s case, comprehensive traceability, and improved quality control are testaments to the power of a focused MES layer. In fact, MES implementations, by digitizing processes, reducing waste, and decreasing downtime, directly contribute to this ROI and, therefore, the company’s bottom line.