The BMW Group Werk Regensburg does pioneering work in the cloud transformation on SAP S/4HANA.
A new car is running off the assembly line in the BMW plant in Regensburg every 57 seconds. With Rise With SAP, the control of the factory was converted to modern cloud software, which at the same time enables the greater integration of AI. The successful go-live in this complex shift operation is the result of an extraordinary team, a more than 30-year strategic partnership and seven years of co-innovation between BMW and SAP.
In partnership with the new standard
After the initial rollout of the new solution in the Mini plant in Oxford, the work in Regensburg is the first full work of the BMW Group, which is SAP S/4HANA was changed.
The rollout of the new cloud solution for the “Process chain parts” (PKT) affected the entire logistical process chain for digital control of the parts supply in vehicle production. From accessing the required components from the suppliers, the accommodation of the goods, the storage, to the provision on the tape.
In addition to the purely logistical processes, the solution also covers the quality and maintenance processes of the work. With the new SAP S/4HANA PKT-Template, the part supply for all production technologies that are required for the construction of a vehicle is controlled for the first time.
Behind the project is a team that consistently worked towards a common goal across corporate borders. In its cross -board cooperation about Customer Services & Delivery and Product & Engineering, SAP delivered a blueprint together with BMW to holistically design the digital transformation in production logistics. Starting with the pressing plant, over the body, the paint shop up to the final assembly of the finished vehicle.
The awareness of the importance of the project was noticeable. “We made it clear to everyone in the team: Every single car counts here,” adds Carola Schönfelder, Chief Project Expert, Strategic Customer Innovations at SAP and program manager for SAP at BMW. “It was not just about it, but about the work, about the people, about the result.”
Transformation as a staircase: it’s about those who work with it every day
About a third of the employees in the BMW plant in Regensburg works directly with SAP S/4Hana components-from SAP Transportation Management (SAP TM) until SAP Extended Warehouse Management (SAP EWM). To integrate those affected into the change process was decisive for success. Another success factor: learning from experience. The smaller one Mini work in Oxford Had the go-live behind it. Instead of designing the transformation as a metaphorical “steep wall”, which you have to climb without security, the team relied on a “staircase” – a gradual, accompanied transition. Satellite base points were also set up within the factory in order to provide support at any time.
Inexpensive identify optimization potential
Six months after the Go-Live, it shows that the switch to SAP S/4HANA Cloud Private Edition is more than a technical upgrade, it changes everyday work. In particular, the new SAP EWM warehouse management system proves to be a key technology that provides important data and shows optimization potential. Thanks to the new database, optimization potential can be identified in a targeted manner, for example when loading route trains and reducing internal transport kilometers.
The standardization not only brings efficiency, but also flexibility. Employees can easily switch between tasks, even works, because less special knowledge is necessary. The processes are slimmer and more transparent. “The global digitization of our production logistics significantly increases transparency and standardization, so that we can react faster to changes or delivery bottlenecks,” explains Michael Nikolaides, Head of Production Network, Logistics at the BMW Group.
Ready for the AI-based future with the new cloud standard
The new IT infrastructure has also changed a lot. The cloud enables speed and flexibility without having to deal with the technology in the background. In addition, the introduction of standardized cloud solutions is an important step in order to be able to fully exploit the potential of AI in the future. In order to benefit from artificial intelligence sustainably, standardized software solutions are needed that can be quickly empowered with new functions. “With the next stage of digitization of production logistics with continuous, uniform data structures and standard process of process, we have significantly advanced the BMW Group’s Ki-Terbußung,” explains Alexander Buresch, CIO and Senior Vice President BMW Group IT.
In seven years of Co-Innovation, BMW has shared its automotive-specific requirements and SAP has shown large parts of these requirements in the SAP S/4 HANA standard and in the industrial solution SAP S/4HANA for Manufacturing Logistics. “As part of the partnership with SAP, we have transferred central corporate processes to a service -oriented and cloud -based platform and thus achieved a new level of efficiency, quality and automation,” says Buresch. Anyone who uses a common standard can also find, share and develop solutions in the collective solutions. If other automobile manufacturers configure the same standard in the future, BMW also benefits from new SAP releases.
In 2018, the strategic cooperation for the development of the PKT template began-a project that was promoted with high personnel and professional commitment. The Go-Live in Regensburg is an important indicator of SAP that the SAP S/4HANA private cloud solution meets the complex requirements of a highly volume vehicle. Together with BMW, the consulting team has proven that a loss-free go-live in a complex shift operation is possible if you meticulously prepare it. The rollout process works and can be adapted and completed.
“Cooperation with our Lighthouse customer BMW has radiance in the market and shows how digital transformation in production logistics can be successfully implemented,” adds Hendrik Haas, SVP, General Manager & Head of Customer Services & Delivery Middle and Eastern Europe, SAP. The BMW full work of Regensburg was an important milestone with extraordinary and partnership commitment on both sides. Together with BMW, we will successfully continue the Rise with SAP transformation this summer at the Munich Stammwerk. ”
