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MES solution: SAP Digital Manufacturing (formerly DMC)

With SAP Digital Manufacturing, production orders can be planned, including the available resources, and all follow-up processes can be triggered - a solution for efficient operations throughout the entire value creation process.

Today, cloud, IoT, machine learning, predictive maintenance, big data and robotics technologies play a decisive role in a company's competitiveness. When integrated into the supply chain, the new technologies fully exploit their advantages and make a significant contribution to a company's success. SAP Digital Manufacturing (formerly SAP DMC) covers all the current requirements of Industry 4.0 and is considered a trendsetter - all the way to the smart factory.

all the way to the Smart Factory.The SAP Digital Manufacturing (SAP DM) is a central, cloud-based MES system for the manufacturing and process industry that can be used to orchestrate, execute and monitor processes along the entire value chain in the spirit of Industrie 4.0. The solution connects all top-level business systems with assets on the shop floor. This gives users global visibility of data across all plants.

SAP Digital Manufacturing at a glance. (Image: CONSILIO)

By integrating SAP Digital Manufacturing (DM) into S/4HANA or ERP ECC, production orders and resources can be easily planned, managed and processed and business processes automated. DM makes operational data permanently available in real time, allowing processes in particular to be established more quickly. In addition, the real-time transfer enables a fast, effective response to unexpected events in production. The integration of on-premise and cloud systems creates a hybrid system landscape that can be expanded in a scalable manner at any time.

At a global level, SAP Digital Manufacturing creates end-to-end transparency across all locations for manufacturing processes, production facilities and workstations. In the event of sudden irregularities or efficiency losses in production, algorithms in conjunction with KPIs, artificial intelligence (AI) and machine learning (ML) facilitate rapid identification of the disruptive factors and prompt root cause analysis. This enables quality defects to be detected at an early stage and an appropriate response to deviations to be initiated proactively.

In addition to paperless production, the intuitive user interface of SAP DM also enables automatic data acquisition, the design of automation processes and the individual setting of machine parameters. Various diagrams and dashboards also ensure detailed and individual data and process visualization. With the Software-as-a-Service (SaaS) solution, SAP Digital Manufacturing eliminates maintenance-intensive, expensive and plant-related expenses for the company. Regular updates of new releases are carried out automatically in the cloud every quarter, ensuring that the system is always up to date. The company therefore always receives the latest functionalities and integration options.

The DM Execution (DMe) component serves as a central production control system that can be used to precisely plan, control and execute work steps in production. DMe links the ERP-specific PP solutions such as MRP and production order management with the machinery.

Key functions of the DMe:

  • Central production control system ensures end-to-end, transparent processes
  • Connects the ERP-specific PP solutions with the store floor of all plants and production sites
  • Clear display of all production processes
  • Detailed planning of individual work steps down to workstation level
  • Connection of production machines from different manufacturers
  • Realistic matching of machine and personnel availability to supply and demand
  • Synchronization of the required SAP master and transaction data

The integration of SAP Digital Manufacturing with the SAP ERP system ensures data integration between the systems. The DM makes operational data permanently available in real time. Processes can thus not only be established more quickly, but also enable a fast, effective response to unexpected events in production.

SAP Digital Manufacturing Resource Orchestration (SAP REO) is the planning tool of SAP DM for Execution. It enables the detailed planning of resources on the store floor with the following functions:

  • Detailed scheduling of individual work steps down to the work center level
  • Scheduling and de-scheduling operations of a resource
  • Connection of production machines from different manufacturers
  • Realistic coordination of the availability of machines and personnel
  • Artificial intelligence and machine learning solutions detect quality deficiencies at a very early stage of production by means of prediction models

By using SAP REO, the company obtains a complete overview of the load allocation on a resource in the production area, as well as a visual representation of operations and high-priority orders.

Replication of all required master data between systems occurs in real time, allowing processes to be established much faster and enabling effective response to unexpected events on the shop floor. In addition, Resource Orchestration can provide detailed information on staff assignments, availabilities, qualifications and certifications, enabling workforce scheduling to be optimally tailored to individual workstations.

The DMi component (stands for Digital Manufacturing Insights) provides all the functions needed to take a closer look at the processes in and around production. The end-to-end transparency thus created makes it possible to react quickly and concretely to changing circumstances.

The following functions are worth highlighting:

  • Data-driven Manufacturing Performance Management
  • Real-time data and real-time analytics
  • Clear presentation of key performance indicators in a dashboard
  • Uniform, comparable and company-wide standardized KPIs for performance analysis
  • Own KPIs can be defined
  • Artificial intelligence for continuous improvement of production efficiency

The module provides predefined KPIs (Key Performance Indicators) and visualizes analyses from real-time information in a dashboard. Production data from data sources such as SAP S/4HANA, SAP ME on-premise or non-SAP systems can be merged, evaluated and aggregated in the cloud.


We will show you web-based Fiori apps that are available in SAP ERP as well as in S/4HANA as CONSILIO solution and SAP Best Practice. Furthermore, we will give you an insight into SAP's Digital Manufacturing solution.
You will receive a compact overview of solution options for digital manufacturing in S/4HANA, ERP and in the cloud.

With the SAP cloud solution Digital Manufacturing, processes in the process and manufacturing industry can be orchestrated, executed and monitored in the sense of Industry 4.0, even across company boundaries.

Bernd Kotulla, Solution Architect CONSILIO GmbH Get in touch with me

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