1. JOIN AXUG MANUFACTURING & SUPPLY CHAIN JOIN AXUG @AXUG1 SHOP FLOOR INTEGRATION WITH DYNAMICS AX Gregor Newland & Mikhail Roytman Ellipse Solutions May 19th, 2015

2. JOIN AXUG MANUFACTURING & SUPPLY CHAIN AGENDA – INTEGRATING SHOP FLOOR IN AX  Understanding Where MES & Shop Floor Machinery Fit in the Technology Layers  What AX Already Has  Business & Operational Reasons for Shop Floor Integration  Data Harvesting (Phase 1) vs Real-Time Bi-Synchronous Integration  Honoring Production Steps in AX  Demo  Final Thoughts and Questions @AXUG2

3. JOIN AXUG MANUFACTURING & SUPPLY CHAIN JOIN AXUG INTEGRATION OF LAYERS @AXUG3 MES Shop Floor Machinery Microsoft Dynamics AX Wonderware MERLIN Custom Developed

4. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE? Shop Floor to Top Floor visibility, interaction, and management  For those who need more than Shop Floor Control (AX2009) and Manufacturing Execution System (AX2012) Connect Microsoft Dynamics AX to shop floor in real time  Know exactly what is happening at machines through bisynchronous communication with Dynamics AX @AXUG4

5. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE? Automatic Data Collection from the machines  Have accurate and objective data collected directly from machines and manual workstations, including part counts, run time, down time and reject counts by reason codes.  Minimize reliance on the machine operator for information, eliminating errors. @AXUG5

6. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE? Feed Dynamics modules with automatic and accurate data:  Shop Floor Control with Production Order completion data, accurate times and counts  Inventory Management with quantities produced and consumed  Product Management with accurate job standards, viscosity, heat measurements, run rates  EAM with machine cycles, run hours, down time, reason codes, asset utilization  HR Time and Attendance with operator log in, time on machine and piece count  Quality Control with rejects and reasons @AXUG6

7. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE?  Production improvements in the 10% - 50% range ‒10% Operational improvement ‒20-60% Profit improvement ‒Average ROI in < 3 months  Real-time machine visibility + OEE numbers including alerts 2% - 5%  Operator Productivity increases 1% - 10%  Reduce Downtime 3% - 8% @AXUG7

8. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE?  Minimize Rejects - 2% - 4%  Root Cause analysis - 2% - 4%  Value analysis stream data collection and - 2% - 4%  Labor productivity tracking 3% - 6%  Usage-based Preventive Maintenance - 1% - 2%  Benchmark scheduling and value streaming - 2% - 6% @AXUG8

9. JOIN AXUG MANUFACTURING & SUPPLY CHAIN WHY INTEGRATE? Simple monitoring (data harvesting) often Phase 1 – but does not provide:  Real-time process monitoring within AX production and scheduling functionality  Instant communications of BOMs & BOM revisions to the shop floor  On the fly changes of order priorities in real-time  A single version of the truth ‒Production Orders ‒Scheduling ‒Planning ‒Inventory Updates ‒BOMs ‒BOM Revisions @AXUG9

10. JOIN AXUG MANUFACTURING & SUPPLY CHAIN PRODUCTION ORDER STEPS @AXUG10 Master data Create BOM, Route Estimate Schedule Start Route/Job Card Production Picking Report as Finished MES End Release Production Order MES Integration Workflow

11. JOIN AXUG MANUFACTURING & SUPPLY CHAIN PRODUCTION ORDER STEPS @AXUG Master data Create BOM, Route Estimate Schedule Start Route/Job Card Production Picking Report as Finished MES End Release Production Order  Single Version of the Truth  Reliance on a Single Data Base  One-Step Order Creation  One source for BOMs and Routes  Faster Roll-Out of BOM Changes  Faster Roll-Out of New Products  No Need to Manage/ Reconcile Multiple Scheduling Tools  Only Available in Bi-Synchronous Model

12. JOIN AXUG MANUFACTURING & SUPPLY CHAIN PRODUCTION ORDER STEPS @AXUG  Real Time Monitoring of Shop Floor Processes  Route Card Updates as They Happen  Approved BOM Substitutions Automatically Updated  Automated Inventory Entries (Components, Raw Materials, Scrap & Finished Goods)  Production Scheduling Experiences Finished Orders In Real Time  Use AX Reporting Tools for Performance Analysis Master data Create BOM, Route Estimate Schedule Start Route/Job Card Production Picking Report as Finished MES End Release Production Order

13. JOIN AXUG MANUFACTURING & SUPPLY CHAIN DEMO HTTPS://WWW.YOUTUBE.COM/WATCH?V=Y4ABMNLHOIU&FEATURE=YOUTU.BE @AXUG13

14. JOIN AXUG MANUFACTURING & SUPPLY CHAIN THINGS TO REMEMBER  Most older machines can be retro-fitted  Licensing Considerations  Operational returns easier to justify  Examine and consider ROI from granular gains  Bi-synchronicity is a must – the other glass is half empty  Start with a single “pilot” line/project @AXUG14