1. Gaining World Class Competitiveness In Mfg. Using SAP’s Mfg. Integration & Intelligence Platform

2. Agenda  1.0 Introduction  2.0 About Sita Corp  3.0 MII Overview  4.0 Typical Shop Floor Challenges  5.0 Sita Corp MII Solutions  6.0 MII Solution Deployment Process  7.0 Selected Success Stories

3. The purpose of this presentation is to introduce the reader to (a) a relatively new technology within SAP called Manufacturing Integration and Intelligence (MII) and (b) Sita Corp that provides solutions to manufacturing challenges using MII Traditionally ERP systems do not reach down to the shop floor. This results in poor visibility and in sufficient control on the shop floor MII is able to connect to both equipment, processes and systems on the shop floor and to SAP ERP. This enables real time synchronization of data and manufacturing excellence 1.0 Introduction

4. In 2013, Sita Corp celebrates its 20th year of partnership with SAP. SITA CORP maintains a close and trusted relationship with SAP and is often referred directly to SAP installed customers, in all functional areas, for consulting activities; project-based and staff- augmentation. Sita Corp customers are mid-size to leading Fortune 500 companies that span public and private sector industries with varying business solutions and consulting needs. A sampling of customers includes: 2.0 About Sita Corp - Overview

5. Within the manufacturing space, Sita Corp has the following two areas of focus: Implementation and application maintenance of core ERP/SAP business processes using Sita Corp’s Fabricated Metals All-in-One solution Implementation and application maintenance of SAP Manufacturing Integration and Intelligence (MII) based applications to optimize processes on the shop floor Sita Corp’s consultants have used the MII tool kit to build solutions for a wide cross section of industries. MII solutions cover the plan, execute and evaluate stages within manufacturing and bring functionality that is not normally available in most ERP systems Sita Corp team leaders typically have 30+ years of industry experience and have a proven track record of bringing innovation in addressing performance enhancements on the shop floor 2.0 About Sita Corp - Focus in Manufacturing

6. Data Services Application Services  Business Logic Services  SPC Analysis Services  Metric/Alert Services Visualization Services MII has a portfolio of services that enables both data synchronization and mfg. excellence. These services include: MII provides real time connectivity for optimal decision support. MII does not replicate data. This reduces TCO and data synchronization related challenges 3.0 MII Overview Shop Floor Data Services, Application Services and Visualization Services are the three main components of MII

7.  Pre-designed connections to all major shop floor systems. This includes Scada, DCS, MES and Plant Historians  Pre-designed connectivity to SAP using (a) Java Connector, SOAP, XI or SAP Business Connector for connectivity and (b) BAPIs, IDocs, RFC for data movement  In order to transform the data, ability to (i) create and execute SQL Query, Tag Query, OLAP Query, and XML Query (ii) deploy complex transformational logic within Business Logic Services  Real time connectivity between Enterprise System and any set of shop floor systems 3.0 MII Overview – Data Services Data Services is MII’s ETL capability

8. 3.0 MII Overview – Data Services: Interfacing Capabilities MII has connectors for most systems on the shop floor

9. BLS is a business process tailoring environment for the creation of custom processes. It can be used to create a composite application. The application is built by connecting Action Blocks. 3.0 MII Overview – Bus. Logic Services Business Logic Services is part of Application Services and is used to create business logic within MII

10. Action Block Loads Order Numbers from MES Creates Production Orders in SAP Releases Production Orders in SAP Schedules Production Orders in SAP Inserts SAP Production Order Number in MES as a Reference Scenario: Some unplanned manufacturing takes place in MES. The triggers from MES are used to create Production Orders in SAP before confirmation and goods movement can take place in SAP 3.0 MII Overview – Bus. Logic Services; Sample Transaction Within BLS, transactions are made up of modular Action Blocks. Use of standard Action Blocks minimizes writing code/scripts

11.  A set of summary statistics, appropriate for the analysis type  Both raw data views and full statistical calculation result views  SPC Rule Violations, with drill down capability on a point by point basis  Additional attribute information for each point  Collaborative point documentation capabilities XMII supports variety of Variable and Attribute charts. Each chart type comes with the following: 3.0 MII Overview – SPC Analysis Services SPC capabilities reside within Application Services and can be used to build business solutions

12. Metrics can be computed continuously (real-time) or at scheduled times. Rules can be set up to monitor any condition or set of conditions/metrics within the plant or the supply chain Automated responses to specific metric conditions can be programmed allowing users to subscribe to and customize the alerts that are appropriate for their individual job function 3.0 MII Overview – Metric/Alert Services Metrics and Alert capabilities reside within Application Services and can be used to build business solutions

13. xMII Portal Services comes with access control, personalization and content management. To facilitate visualization of information and trends, xMII comes pre-configured with five applet types: iChartiGrid iTicker iCalendar iBrowser 3.0 MII Overview – Visualization Services The five applet types shown above can be used to create visualizations for business intelligence oriented solutions

14. Data Query USL & LSL on Elemental Chemistry Data Query-Prod. Stats. Download Maintenance Order to Shop Floor Maintenance Execution System Update Maintenance Mgmt. if product quality requires Mach. Maintenance Update PP, MM, QM based upon product meeting Quality Specs. SPC/SQC Systems DCS Systems MES Systems Laboratory Systems Plant Historian Plant Maint. Systems Connector Data Service Data ServerData Service Data Query on Elemental Analysis xMII Data Services xMII Application Services JCO Connector Prod. Planning Materials Mgmt. Quality Mgmt. HRPlant Maintenance JCO Connector SAP Enterprise System xMII Visualization Services Webpage to Display SPC Chart Applet for SPC Chart Production KPI & Metrics Production Alerts Elemental Chemistry Nitrogen Addition SPC Select Spec. Limit & Control Limit Data Confirmation & Batch Characteristics Goods Issue & Goods Receipt Populate Inspection Characteristics Create Maint. Order Load Maint. Order Role Based Access to Web Pages from the Intranet Web Browser KEY SAP PM Related Data Flow SPC, KPI, Metrics Related Data Flow SAP PP, MM & QM Related Data Flow Sales 3.0 MII Overview – Summary Amongst other things, MII can pick up data from the shop floor and (a) update business intelligence related visualization, (b) update transactional database in ERP in real time and (c) automatically trigger events to optimize control on the shop floor

15. Reduce Costs Improve Customer Satisfaction Optimize usage of machine and raw mat. to optimize profitability Statistically stable manufacturing process Optimize machine maintenance & reduce unplanned downtime Operator friendly UI to optimize performance and ERP adoption Quick access to archived process history Improve Overall Equipment Effectiveness (OEE) Optimize WIP Access to manufacturing performance analytics 4.0 Typical Shop Floor Challenges A wide cross-section of challenges exist on the shop floor. Improvements generally target a reduction in cost and an improvement in customer satisfaction

16. Some recurring themes in improving performance in manufacturing enterprises has been to (a) to improve integration between the shop floor and SAP ERP, (b) improve visibility of information at the shop floor and in SAP/ERP and (c) simplification of user interfaces/GUI such that there is improved usage/adoption of SAP/ERP on the shop floor. Sita Corp can implement these performance improvement initiatives by integrating SAP MII with the BAiO solution. In addition Sita Corp is looking at using MII to develop solutions that extend core SAP capabilities (e.g. integrating the nesting of parts with production planning within ECC) and optimize enterprise performance. Sita Corp solutions can support the “Plan, Execute and Evaluate” cycle on the shop floor. Enclosed tables show a sampling of manufacturing solutions that have been built or are being built by Sita Corp consultants: # Plan - Solutions Description 1 Optimizing Melting Furnace Sequencing This solution enables metal producers, who use SAP ERP, to apply algorithms (linear and nonlinear programming) to optimize furnace sequencing. Using MII, the solution is fully integrated with production planning in SAP ERP 2 Optimizing Prod. Planning for Max. Profit in Chemical Plants This solution enables chemical companies, who use SAP ERP, to apply algorithms to optimize their production planning by optimizing their objective function (e.g. maximize throughput, profitability, minimize scrap, etc.). Using MII, the solution is fully integrated with production planning in SAP ERP 3 Optimizing Cutting Scrap in Metal Distribution Service Centers This solution enables distribution centers of metal producers that run SAP ERP, to apply algorithms to nest sheet metal parts such that scrap, inventory and delivery performance are together optimized. The solution is fully integrated with Production Planning and shop floor execution in SAP ERP 4 Convert Calendar Based Maintenance into Run-Time Based Maintenance This solution enables the optimization of scheduled maintenance by leveraging run time data from equipment. The solution is integrated with SAP PM. This solution has the potential to (a) reduce maintenance expenditure and (b) reduce the possibility of both unplanned and planned downtime Key Solution implemented by Sita Corp consultants Pre-configured solution template being developed by Sita Corp consultants xxx 5.0 Sita Corp MII Solutions

17. # “Execute” Solutions Description 5 Automated Order Creation in SAP from MES Automated creation and release of a Process or Production Order in SAP based upon events in the Manufacturing Execution System (MES). Once the Order is created in SAP, the MES is updated with information on the newly created order 6 Automated Download of Process Orders from SAP into MES One time and periodic download of production or process orders from SAP to the MES database 7 Automated GI and GR in SAP from MES Automated GI and GR to a Production or a Process Order in SAP from MES. The solution accommodates Handling Units and Warehouse locations in SAP 8 Automated Confirmation in SAP from MES Automated Confirmation of a step in a Production or a Process Order in SAP from MES. The solution is capable of automatically reading data from scales and making Tare weight adjustments automatically 9 Automated Goods Receipt (for Purchase Orders) and Shipping in SAP from MES Automated Goods Receipt and Shipping (Truck Loading, Bill of Lading and Post Goods Issue) in SAP from MES. Received material can go to Restricted Stock or Open Stock based upon the quality disposition. 10 Automated Loading of Batch Characteristics in SAP from MES Automated loading of Batch Characteristics to a batch in SAP from MES. Often in an integrated solution, loading of batch characteristics will automatically follow quality disposition on the shop floor 11 Automated "Material to Material Transfer" or “Location to Location Transfer” in SAP from MES Automated "Material to Material” transfer or “Location to Location” transfer of batched material in SAP from MES. The solution accommodates Handling Units in SAP 12 Shop Floor Events to Trigger Maintenance Notifications and Maintenance Orders Shop floor events (e.g. pump shutting down or abnormally high temperatures) can be used to trigger Maintenance Notifications, Maintenance Orders or other work flow. This facilitates timely maintenance for equipment. Key Solution implemented by Sita Corp consultants Pre-configured solution template being developed by Sita Corp consultants xxx 5.0 Sita Corp MII Solutions Cont’d

18. # “Evaluate” Solutions Description 13 WIP Visibility This solution enables real time visibility to WIP in front of each workstation. This information is also available in aggregated form at a plant and enterprise level as a function of time 14 View Order Details This solution enables real-time visibility to details of production orders on the shop floor. These details include (a) Order header details, (b) Goods issued or received from the order and (c) confirmation details from the order. 15 SPC Analysis on Processes This solution determines whether a process is within specification and or control limits and if required triggers alerts or work flow 16 View Archived Process History This solution enables the archiving and retrieval of prevalent process conditions (temperatures, pressures, vacuum, etc.) when production orders, process orders or batches are processed on the shop floor 17 Supply Chain Execution Dashboard This dashboard solution enables visibility to key Supply Chain Management KPIs like Forecast Accuracy, Execution to Plan, Cost of Quality, etc. Audience for this dashboard are the SCM, Manufacturing and Sales executives 18 Overall Equipment Effectiveness (OEE) Dashboard This solution provides visibility to the Overall Equipment Effectiveness (OEE) of machines. This includes sub-metrics on availability, productivity and quality and reason codes associates with each of these metrics 19 Shop Floor Execution Dashboard This dashboard solution provides the Plant Manager shop floor related KPIs. It looks at previous day, week to date and month to date actual performance against the target when looking at WIP, Finished Goods Inventory, Duration Earned Hrs, Production Orders Started on Time, Production Orders Finished on Time, etc. 20 Lean Accounting Dashboard This dashboard solution provides visibility to Lean Accounting information. The dashboard shows information along the Operational, Capacity and Financial Dimensions and can be used for weekly reporting, “what if” decision making and financial impact calculations 21 On-Time Delivery Performance Dashboard This dashboard solution provides visibility to on-time delivery performance by customer with drill downs to sales orders and production orders 22 Capacity Planning Dashboard This dashboard solution provides visibility to required and available plant and work center capacity with drill downs to production orders and operations 23 Productivity Dashboard This dashboard solution provides visibility to productivity at a plant and work center level with drill downs to individual production orders and operations 24 Rework & Scrap Dashboard This dashboard solution provides visibility to rework and scrap at a plant, product and work center level with drill downs to individual production orders Key Solution implemented by Sita Corp consultants Pre-configured solution template being developed by Sita Corp consultants xxx 5.0 Sita Corp MII Solutions Cont’d

19. Reduce Costs Improve Customer Satisfaction Optimize usage of machine and raw mat. to optimize profitability Statistically Stable Manufacturing Process Optimize machine maintenance & reduce unplanned downtime Operator friendly UI to optimize performance and ERP adoption Quick Access to Archived Process History Optimize Overall Equipment Effectiveness (OEE) Sita Corp MII Solutions Optimized/Reduced WIP Access to Manufacturing Performance Analytics 1, 2, 3 15 4, 12 5, 6, 7, 8, 9, 10, 11 16 18, 23, 24 13, 14 17, 19, 20, 21, 22 5.0 Sita Corp MII Solutions - Mapped to Challenges Sita Corp can provide solutions to address a wide cross-section of challenges on the shop floor

20. 6.0 MII Solution Deployment Process Sita Corp can deliver a solution on a turn-key basis…from preparing a business case to post implementation support. To select clients, Sita Corp also offers a free MII assessment

21. 1.For a large aerospace & defense supplier of specialty metal, Sita Corp implemented a major overhaul of their SAP Production Planning system along with an implementation of a comprehensive MII based shop floor operator interface. Improvements included: Introduction of additional process orders so that all activity on the shop floor was now conducted within a process order. This enabled greater visibility of inventory and improved control of the shop floor process Batch management was enabled on all materials and on all process orders. This enabled end to end traceability Eliminated paper identification tags from storage bins by putting a barcode on bins and associating a unique Handling Unit with each storage bin inside SAP. This eliminated: a.Having to manage the tags outside of SAP with the associated complexity, expenditure of human effort and potential for human error b.Storage Bin paper tags falling off resulting in the material being downgraded or scrapped Ability to track productivity and yield/scrap at a process order level rather than the previously used weekly time buckets. Greater visibility resulted in improvement in productivity and reduction in scrap Operators being able to conduct transactions (Creating a Process Order, Downloading a Process Order, Goods Issue, Confirmations, Loading of Batch Characteristics into SAP, Goods Receipt, Location to Location Transfer and Material to of Material) using an operator friendly mobile handheld device fitted with a barcode reader. Operators did not ever have to see an SAP screen and rarely had to enter any alphanumeric characters into the Handheld device as the solution was also integrated with electronic product weighing scales. Immediately after the implementation, client saw a decrease in production errors, improvement in quality and improvement in inventory accuracy. 2.For a large food manufacturing business Sita Corp implemented a comprehensive MII based operator interface that covered receiving of raw material, manufacturing on the shop floor, loading trucks and shipping. Improvements included: Use of a mobile hand held device in the receipt of raw material on Purchase Orders. This improved productivity and reduced backlogs in receiving and receiving inspection. Operators being able to conduct transactions (Creating a Process Order, Downloading a Process Order, Goods Issue, Confirmations, Tracking Machine Downtime, Loading of Batch Characteristics into SAP, Goods Receipt and Location to Location Transfer) using an operator friendly mobile handheld device fitted with a barcode reader. After the implementation, client saw an improvement in throughput. Use of a mobile hand held device in the loading of the truck and in conducting shipping transactions like BOL and PGI. This resulted in improved productivity and reduced delays in the shipping process. 7.0 Selected MII Success Stories Sita Corp has a record of delivering high quality solutions. References are available on request

22. SITA CORP Connect the Possibilities Proven track record recognized by SAP & partners Installed base of over 600+ customers Global provider in business collaboration, connecting people together faster to the information they need Unmatched innovative offerings Custom and open enterprise solutions Solutions: Enterprise Data, Mobility, Business Process Transformation and Managed Services Established since 1993, HQ in Somerset, NJ Privately held w/steady revenue growth