freudenberg it (fit) europe - company presentation

AGENDA

Company Presentation

• Our Company• Target Markets• Market Analysis

Freudenberg ITOVERVIEW

Freudenberg IT Group Presentation | 2014 3

History• Spin-off of the Freudenberg Group internal IT department in

1995

Staff Numbers• > 700 employees worldwide [2013] | thereof 240 in USA and China

Status• Turnover: €134 million [2013] |• positive EBIT at peer level

Success• > 85% of FIT service revenues from third-party markets• CAGR: 15 % over the past 5 years [2008 - 2013]

Portfolio• Hosting and Consulting Services in SAP environment• Managed Services IT service provider

• Long-term stability and financing• Market reputation and values• Background in the manufacturing

industry

FIT as a part of Freudenberg – A USP in the IT Industry

THE COMPANY


• Diversification and stable business• Profitably growth > Group average• Innovation driver for the manufacturing industry

Share of the Company

Group In-ternal

15%

Group Ex-ternal

85%

The things that make FIT so unique in the industry…THE COMPANY

• We understand small and medium-sized business, since that’s what we are.

• We have a background in the manufacturing industry and are completely familiar with its processes.

• We are a full-service IT provider covering everything from SAP licensing to implementation, consulting and hosting, and AMS – all from a single source.

• We are an international player.• We have enjoyed a strong partnership with SAP for more than 35 years.


2013

37 Years of PartnershipFreudenberg + SAP

UNTERNEHMEN


Founding of SAP SAP develops DB MM module for R/2 in Freudenberg IT data center

FIT declaredSAP Certified in hosting services

Fast Growing Company Award

SAP Pinnacle Award

Infrastructure expansions• New data center• New offices

FFIT declaredSAP Certifiedin RUN SAP implementation


Freudenberg becomes SAP’s

7th customer

Outsourcing of Freudenberg IT

to Weinheim, Germany

SAP PinnacleAward finalist

FIT declared SAP Certified in

cloud services

2012201120102009200820071995198119771972

Setup of COEs for SAP HANA,

Sybase ASE and Mobility

Opening of 4th US data center

Start HANA Test Drive Service

VAR Gold Status

FIT is worldwide one of the first SAP HANA and Mobile Operations Partner

Global implementation of In-Memory- Software by FIT

2013

37 Years of PartnershipFreudenberg + SAP

COMPANY

7

Founding of SAP SAP develops DB MM module for R/2 in Freudenberg IT data center

FIT declaredSAP Certified in hosting services

Fast Growing Company Award

SAP Pinnacle Award


FIT declaredSAP Certifiedin RUN SAP implementation


Freudenberg becomes SAP’s

7th customer

Outsourcing of Freudenberg IT

to Weinheim, Germany

SAP PinnacleAward finalist

FIT declared SAP Certified in

cloud services

2012201120102009200820071995198119771972

Setup of COEs for SAP HANA,

Sybase ASE and Mobility

Opening of 4th US data center

Start of HANA test drive service

Freudenberg IT Group Presentation | 2014

VAR Gold Status

FIT is worldwide one of the first SAP HANA and Mobile Operations Partner

Global implementation of In-Memory- Software by FIT


Outsourcing Operations Partners COMPANY

• 21 global Partner for SAP Outsourcing• 6 Categories in Outsourcing

• AMS• Hosting• Cloud• HANA• Mobile• BPO

FIT IS ONE OF ONLY 3 PARTNERS THAT ARE LISTED IN 5 CATEGORIES

Outsourcing Operations PartnersCOMPANY


AMS Hosting Cloud HANA Mobile BPO

Freudenberg IT Itelligence T-Systems Atos Capgemini Ciber CSC Dell Fujitsu HP Hewlett Packard IBM ACS – A Xerox Company AT&T CGI Savvis, a Cetruryl Link Company ADP-Automatic Data Processing Cognizant Technologies Infosys NEC NGA Human Ressources Wipro Technologies

Some of our customers ...COMPANY


Target Markets

Add customer logo

Small Companieswith less than 50 employees

Small and Medium-Sized EnterprisesTARGET MARKETS


Major

Corporations

Upper End of Range

Small and Medium-Sized Enterprises

Small Companies

Major Corporationswith more than 5,000 employees

Upper End of Rangecompanies with 500 to 5,000 employees

Independently operating subsidiaries of a major corporation are positioned at the upper end of this range (excluding “divisions”).

Small and Medium-Sized Enterpriseswith 50 to 500 employees

250 – 5,000+ Employees

More than 50% of IT Service Expenditures

Source: PAC 2011

The Manufacturing IndustryTARGET MARKETS


Public Sector

Insurance Com-panies

6%

Banks14%

Wholesale andRetail5%

Service Providers10%

Transport5%

Suppliers 6%

Telecomms.5%

€966 Million

€3,515 Million

€1,516 Million

€1,829 Million

€3,083 Million€1,079 Million

Process Consulting

Non-SAP Consulting

SAP Consulting

SAP Hosting & AMS

Non-SAP Hosting & other Central ITOperational Factors

Desktop Services

Automotive17.3%

Mechanical Engineering29.5%

High Tech 13.9%

Chemistry 17.7%

Processing 7.8%

Consumables8.0%

Construction5.7%

As part of the Freudenberg Group, FIT is deeply rooted in the manufacturing industry.

Freudenberg and SAP share a strong, 40-year partnership.

The trend toward standards and the strict expansion allow the SAP ecosystem to grow stronger than average compared to the IT services industry.

€34 BillionIT Services

Expenditures

Source: PAC 2011

The FIT Service PortfolioTARGET MARKETS


• A focus on relevant SAP consulting modules for the manufacturing industry.

• MES as a USP and portfolio element which sets us apart from the competition.

• Alignment of our company value chain within the managed services portfolio to hosting and AMS

FIT Partner

Data CenterServices

AMS - Application Management Services

TechnologyConsulting

Shop Floor Software

& Consulting

Business OperationsConsulting

Business ManagementConsulting

SAP Application

SupportITIL Standard

ASP Platforms (EDI, PI, GTS)

InfrastructureUser

ManagementWeb & Portals

DataManagement

Messaging &

Collaboration

ManufacturingExcellence

WarehouseManagement

SupplyChain

ProductLifecycle

AfterSales

Business Intelligence

FinancialsHuman

Ressources

Co

ns

ult

ing

Ma

na

ge

d S

erv

ice

s

Desktop Services

TelecommunicationServices

PrinterServices

Voice Services

WANServices

LANServices

UnifiedComm.

VideoConferencing

Human Ressources

Mobility Apps.

Product Lifecycle

Management

IntegrationManagement

Application Hosting

SAP as s Service

Infrastructure as a Service

Plattform as a Service

Managed Collaboration

Services

ClientServices

FieldServices

MobileDevice

Management

International FocusTARGET MARKETS


FIT Americas FIT Europe FIT Asia0

50

100

150

200

250

-5%

0%

5%

10%

15%

20%

25%

30%

228

3515

5.4%

3.0%

16.0%

estimated Growth 2014

[in billion €]

Market Volume 2013

Growth

Portfolio• Managed Services

Portfolio• Managed Services• Consulting Services

Portfolio• Managed Services• Consulting Services

Tapping new markets

Add customer logo

Worldwide LocationsNEW MARKETS


USA• North Carolina• New Hampshire

Canada• Nova Scotia

Germany• Weinheim• Balingen• Hamburg• Munich

China• Suzhou• Beijing• Shanghai

Hungary• Budapest

India• Mumbai

Mexico• Mexico City• Puebla

FIT Americas FIT Europe FIT Asia

Sales ChannelsNEW MARKETS


FIT Americas

• Regionally organized direct sales

• Sales partners• SAP• Value-added reseller (VAR)• Delivery partners

Local responsibility

FIT Europe

• Regionally organized direct sales

• Sales partners• SAP• Value-added reseller (VAR)• Delivery partners


FIT Asia

• Branch-based direct selling

• Sales partners• SAP• Delivery partners


Key Account Management

• Dedicated account management for our top 25 customers• Dedicated service management• Global responsibility

Customer Needs and

Market Trends

Add customer logo

Major projects for Freudenberg Group MAJOR PROJECTS

• SAP Hosting for Freudenberg Group allmost 100% worldwide

• SAIL – Project at Freudenberg Sealing Technologies (up to 2013)

• Carve-Out Freudenberg Schwab Vibration Control 2012

• Carve-Out Eagle Actuator Components 2013

• Managed Client Services incl. WIN7-Rollout at Freudenberg & Co. 2012

• System-Reorganisation and Roll-Out to Suisse, FSVC 2013


Extended projects and best practices for third parties

MAJOR PROJECTS

• Template-Rollout global (EU/CN) at Kirchhoff-Automotive (2012)

• Template-Rollout CN/AUS/Pakistan inkl. AMS in Asia at KSB (2012)

• Greenfield-Implementation and Template-Rollout in CN at ThyssenKrupp

• Carve-Out Auer Lighting (Schott-Group) 2013

• Carve-Out and AMS at HUF Electronics Bretten 2012

• Business Blueprint & Engineering Template at Karl Mayer (Ongoing)

• Global SAP-Reengineering at NBHX 2013

• Shop Floor and MDC at WAGO Corporation (600+ items/Ongoing)

• Global Shop Floor (MDC/SFDC/APC) at GEA Group (Ongoing)


Global FIT Automotive Customers


BODY & STRUCTURAL

INTERIOR

ENGINE

RESTRAINTS

BRAKING

ELECTRONICS

BODY GLAS

STEERING

SUSPENSION

CLIMATE CONTROL


MegatrendsMARKET ANALYSIS

• Cloud Computing• Big Data• Mobility• Industry 4.0

FIT MAKES TECHNOLOGICAL MEGATRENDS ACCESSIBLE TO SMALL AND MEDIUM-SIZED INTERNATIONAL ENTERPRISES

How to reach usCONTACT

@


Freudenberg IT Solution Consulting SE & Co KG

Höhnerweg 2-469469 Weinheim

+49 (6201) 80 80 00

[email protected]

http://www.freudenberg-it.com

How to reach us

@

Höhnerweg 2-469469 Weinheim

Thomas AhlersEVP Consulting

Dr. Sebastian WeißCFO

Horst ReichardtCEO

Oliver WolterEVP Sales EU

Murat EkinciEVP IS

+49 (6201) [email protected]://www.freudenberg-it.com

Thank you foryour attention.

FITSHOP FLOOR SUITE

AGENDA

FIT SHOP FLOOR SUITE

• Challenges for Production• Challenges: Industry 4.0• Industry 4.0 – Made by FIT• FIT Shop Floor Suite

• Plan | Execute | Control

• Summary

Situation in productionCHALLENGES FOR PRODUCTION

CHALLENGE• Highly dynamic processes in daily production are

difficult to control • Machine failures, flexible use of personnel, or rush

orders present major challenges • There is a lack of transparency in production

SOLUTION• High number of variants in production• Traceability throughout the entire production

process • More flexibility to respond to disturbances• Readiness for Industry 4.0

Freudenberg IT | FIT Shop Floor Suite 30

Challenges

All procedures, orders, operations, and resources must be perfectly matched:

• Machinery • Staff• Set-up times• Material stock levels• Deadlines• Processing times • Tools and equipment• ...

FIT Shop Floor SuiteCHALLENGES: INDUSTRY 4.0


33

FIT Shop Floor Suite INDUSTRY 4.0 – MADE BY FIT

Freudenberg IT | FIT Shop Floor Suite

Solution

Provider

Solution

Component

Function

Block

Process

FIT Shop Floor Suite

Plan ControlExecute

PDC/MDC/Traceability

SAP Manufacturing

KPI

Reporting

SAP BI/BO

AdvancedPlanning & Scheduling

ProVis.APS FITPEP

FIT PZW

FIT

Templa-tes

FIT

Reporting

Templates

FIT

Add-ons

Workforce

Management

Paradigm shifts in productionCHALLENGES: INDUSTRY 4.0

Challenges of Industry 4.0:

• Process control and process monitoring • Management of failures and non-

conformances • Traceability • Acquisition of measured values and quality

inspections• High number of variants in production; shift

toward lot-size 1• Real-time monitoring • Transparent, end-to-end-integration of all

processes in production


Industry 4.0 – Made by FIT

Integration

Process Automation (Plan | Act)

Production Automation(Machinery)

Our vision of the shop floorINDUSTRY 4.0 – MADE BY FIT


Automation of maintenance scenarios

Machine-to-machine integration

Optimization of planning and execution

KPI analysis

Real-time data processing

Self-regulating processes/disturbance management

Mobile human interfaces

Analysis of quality data

ERP integration

Machine data integration

Process data collection

Your ticket to more efficiencyINDUSTRY 4.0 – MADE BY FIT

With the FIT Shop Floor Suite, Freudenberg IT enables our customers to enter the upcoming era of self-regulating production.

We offer an SAP-oriented portfolio of solutions, which consists of best-of-breed products from leading Industry 4.0 players, such as SAP and Fraunhofer, supplemented by our own Freudenberg IT innovations.

Based on this, Freudenberg IT completely integrates SAP solutions from the top floor to the shop floor, ensuring smooth production processes in the factory.

This means you get a shop floor solution that is tailored to your needs – one which retains the sophistication of all your required processes and is still easy to use.

We call this IT Solutions. Simplified.


FIT Shop Floor Suite – Your benefits at a glanceINDUSTRY 4.0 – MADE BY FIT


• Seamless integration of top floor and shop floor, all from a single source• Enterprise Resource Planning (ERP)

• Manufacturing Execution System (MES)

• Shop Floor Scheduling (FLS)

• Modular design

• Best-of-breed: the best products from leading Industry 4.0 players

• Complete, real-time transparency of all manufacturing processes

• Development of continuous improvement processes through active monitoring and reporting

• Traceability throughout the production process

• Transparent HR processes in production

• Time Management (PZW)

• Workforce Planning (PEP)

39

FIT Shop Floor Suite INDUSTRY 4.0 – MADE BY FIT

Freudenberg IT | FIT Shop Floor Suite

Solution

Provider

Solution

Component

Function

Block

Process

FIT Shop Floor Suite

Plan ControlExecute

BDE/MDE/Traceability

SAP Manufacturing

KPI

Reporting

SAP BI/BO

AdvancedPlanning & Scheduling

ProVis.APS FITPEP

FIT PZW

FIT

Templa-tes

FIT

Reporting

Templates

FIT

Add-ons

Workforce

Management


Plan

Optimization in real timeFIT SHOP FLOOR SUITE | PLAN

An intelligent control center is the foundation for the production planning and control process, which can react very flexibly to many contingencies in daily production.

Developed by Fraunhofer IOSB, the ProVis.APS solution continuously optimizes manufacturing processes, immediately taking all events in production into account.

In addition, all information isholistically integrated by FIT from the top floor to the shop floor to ensure a seamless process flow within the company.


Production planning and control at level 4.0FIT SHOP FLOOR SUITE | PLAN

Challenge • Self-regulating production: Consider

disruptions and progressive numbers in real time.

Solution• ProVis.APS combines deep process

knowledge with mathematical optimization methods. Thanks to FIT’s thorough integration knowledge and solutions, all processes are completely integrated from the shop floor to the top floor.


Benefits

• Ultimate production transparency thanks to graphical representation of production in real time

• Optimized cycle time and resource consumption

• Real-time visibility

• Optimized idle times during disturbances

• Transparency of costs and reduction

Workforce Efficiency ManagementFIT SHOP FLOOR SUITE | PLAN

The Workforce Planning module detects staffing shortages in production and schedules employees depending on their skills and qualifications.

Relevant staff (qualifications, availability, contract workers) can be assigned to workplaces (demand for qualifications, number of people, periods) under consideration of timing information (time models, attendance and absences).


Workforce management at level 4.0FIT SHOP FLOOR SUITE | PLAN

Challenge • Putting the right person in the right place

at the right time – what sounds so simple is a challenge faced by production every day.

Solution• The predictive workforce planning offered

by FIT Shop Floor Suite is implemented through the solution component FIT PEP.


Benefits

• Automated planning: Putting employees with the right skills in the right place at the right time

• Integrated solution, company-wide

• Staff planning at a glance

• Paperless planning: Clear planning through a single dashboard interface

FIT Plan: Solution componentsFIT SHOP FLOOR SUITE | PLAN


• Scheduling of all relevant production resources based on different optimization algorithms

• Integrated into SAP ERP and SAP Manufacturing

• Adjustment between skill demand and availability• Uncover and resolve staff shortages• Integrated into SAP ERP and SAP Manufacturing

FIT PEP(Workforce Planning)

ProVis.APS


Execute

Smooth processesFIT SHOP FLOOR SUITE | EXECUTE

The use of an MES is essential to manage and control manufacturing and production operations throughout the company.

With the help of the components

FIT PZW, SAP MII and SAP ME,FIT Shop Floor Suite provides the perfect interaction between the top floor and the shop floor.


Manufacturing at level 4.0FIT SHOP FLOOR SUITE | EXECUTE

Challenge• Manage the entire production cycle• Completely record and provide all relevant

information in real time• Follow the production schedule

Solution• The FIT Shop Floor Suite provides an integrated

enterprise-wide solution designed to manage and control all manufacturing and production processes.

• Control the production process: process control and monitoring

• Management of errors and exceptions


Benefits

• Transparent production processes in real time

• Seamless flow of information

• Traceability throughout the entire production process

Integrated workforce managementFIT SHOP FLOOR SUITE | EXECUTE

Challenge• Central, company-wide tracking of

attendance/absences• Graphical representation of complex work shift

systems• Consideration of complex rulings from work

contracts and operational agreements regarding payroll accounting

Solution• Decentralized logging of work time and central

data maintenance of working hours• Simple summary and graphical representation

of work time models• Employees manage their own working hours


Benefits

• Reduced administrative work related to workforce management

• Device-independent logging of hours

• Transparency of the working hours of company employees

SAP ME Manufacturing Execution

FIT Execute: Components tailored to your needsFIT SHOP FLOOR SUITE | EXECUTE


Process Control, Traceability & Quality (Product, Process)

Plant Data/Machine Data Collection (Quantities, Times , Status, Parameters)

SAP MIIManufacturing

Integration & Intelligence

Control of the production process (one-piece flow)

Up-to-date at the batch/single unit level

Collection of quality data at the single unit level

Device history on single, serialized unit

Flexible control of individual products

FIT MII Templates

Order-based confirmation of quantities

Order-based confirmation of times

Order-based performance analysis

Transparency at the order/shift level

Bo

th o

ffer

BD

E/M

DE

fu

nct

ion

alit

y

FIT Execute: Solution components FIT SHOP FLOOR SUITE | EXECUTE


• Advanced modeling and design of shifts and time models• Configurable rules and results to date• Multi-level approval workflow for absences and time

adjustments

• Customizable operator terminals• Quantity recording• Recording of process-related disturbances and

downtimes• Shift book

• Process control and process monitoring• Management of errors and deviations • Detailed product and process traceability• Quality data collection

FIT PZW(Time Management)

FIT MII TEMPLATES

SAP ME


Control

Results at your fingertipsFIT SHOP FLOOR SUITE | CONTROL

Transparency at every process step is essential to ensure production quality.

This is a given with the businessintelligence solution component of the FIT Shop Floor Suite.

The monitoring and reporting functionsof the FIT Shop Floor Suite are basedon SAP’s MII and Business Objects solutions, enhanced by FIT.


Control with key performance indicatorsFIT SHOP FLOOR SUITE | CONTROL

Challenge• Manage the entire manufacturing process • Ad-hoc reports and transparency in

production

Solution• The monitoring and KPI reporting functions

of the FIT Shop Floor Suite provide customized top floor and shop floor information on a modern dashboard interface.


Benefits

• Compare actual figures and planned figures in real time

• Control loop-based production optimization

• Mobile dashboards; graphical representation - anytime, on any device

FIT Control: Solution components FIT SHOP FLOOR SUITE | CONTROL


• Enterprise-wide, transparent business processes: retrieval and analysis of production information in real time

• Platform-independent SAP MII dashboards (based on SAP UI5/HTML5 technologies)

• Usage of powerful MII-KPI framework

SAP BI/BO (Business Objects)

SAP MII(Manufacturing Integration and Intelligence)

Summary

Why use the FIT SHOP FLOOR SUITE?SUMMARY


Integration of the top floor with the shop floor

Ready for Industry 4.0

Best-of-breed technologies

20 years of manufacturing expertise Traceability

Real-time monitoring

Transparency

Flexibility

Thank you for your attention.

freudenberg it (fit) europe - company presentation

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