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

2. Agenda  Business Solution within Demo  Logging In and Selecting a Production Line  Create Process Order and Heat Billets  Extrude Pipe with Downtime Event  Clean Pipe  Inspect Pipe  Print Batch # on Pipe  Pack Pipe in Crates  Location to Location Transfer

3. Create & Download Process Order Heat Billets 1 Create Process Order 2 Goods Issue & Confirmation 3 Confirmation 5 Good Receipt with Batch 1 6 Location to Location Transfer 2 4 Loading Batch Characteristics 3 Location to Location Transfer Pack Pipe in Crates 563 Bakery: Manufacturing Process Extrude Pipe 3 3 Clean Pipe Inspect Pipe & Generate Batch Characteristics Print Batch # on Pipe ECC Transactions 4 3 Business Solution Within the Demo A shop floor Operator uses a Wireless Handheld Computer based interface to conduct all transaction in ERP in real time. The interface: Has simple easy to use screens Uses language understood on the shop floor Minimizes key strokes by leveraging barcodes Provides operator all required information at finger tips Business Solution 1.Adoption of SAP/ERP on the shop floor without: Resistance from operators Adding non value added activities The need for a lot of training on part of the operators 2.The ERP system now knows; Location of WIP and bottlenecks on shop floor Statistics on On-Time Completion of operations Statistics on non-conformance by operation and operator Statistics on productivity by operation and operator 3.Item 2 above will result in improved control on the shop floor and this will lead to: Improved due date compliance Improved productivity Improved quality and improved customer satisfaction Business Benefit

4. Logging In and Selecting a Production Line Operator can type in User ID and Password or can scan a barcode on a badge using a wireless handheld computer Operator will only be able to see the production process to which access has been granted. Within an individual production process, operator will only have access to operations to which access has been granted. For example an inspector will only have access to inspection related operations A wireless handheld computer

5. Create Process Order and Heat Billets All data is pre-populated in the screen. Operator just has to trigger the creation of the Process Order. Alternatively the screen can be set up so that the user has to add values to this screen Menus shows the Process Order # that is being processed on the first (Heating) operation When the user selects “Heat Billets” the system knows that a Process Order has to be created. Once the order is created the operator can start the Mixing Operation

6. When Heating Operation is complete, the Operator selects “Heating” again Operator enters the quantity (Yield) that is completing the process step. Operator can also enter Scrap quantity. Yield + Scrap = Quantity coming into the operation Labor Quantity is the number of people working at operation Create Process Order and Heating Billets Cont’d Operator selects “Confirm Operation” to complete the Heating operation

7. Extruding Pipe with Downtime Event Operator to enter the Process Order number to be processed. Can use a barcode reader to enter this Operator selects the ‘Extrude Pipe” process Operator starts the operation Menus shows that the ‘Extruding” operation is running

8. Extruding Pipe with Downtime Event Cont’d Error Code selected as reason for the downtime To capture a downtime event: Step #1: Select “Extruding” from the main menu Step #2: Select ‘Start Down Time” Step #3: Set event start time Step #4: Select reason code for event Red color indicated the operation is in ‘Downtime”

9. Extruding Pipe with Downtime Event Cont’d Select Operation to stop Downtime event Enter time when Downtime event stops Enter # of workers involved with activity during Downtime Extruding now in progress Once operation is complete, Select the Operation in the main menu and then “Confirm Operation” Enter Yield, Scrap and Labor Quantity and then finally confirm the operation as complete

10. Clean Pipe Select operation, enter Process Order, start and stop operation. Enter Yield, Scrap and Labor used

11. Inspect Pipe Select operation, enter Process Order, start and stop operation. Enter Yield, Scrap and Labor used

12. Print Batch # on Pipe Select operation, enter Process Order, start and stop operation. Enter Yield, Scrap and Labor used

13. Pack Pipe in Crates Select operation, enter Process Order, start and stop operation. Enter Yield, Scrap and Labor used At this final operation, a Goods Receipt and Loading of Batch Characteristics transactions also takes place

14. Location to Location Transfer For Material 1782, Batch 668 we are moving Quantity 11 from Location 0001 to Location 0002 Once goods are in the warehouse, they are often moved from one warehouse location to another. This SAP transaction keeps the location of the goods in SAP’s database

15. 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