1. MES - Manufacturing Execution System
Value Proposition
MES - Manufacturing Execution System
Value Proposition
Integrated Machine Monitoring & Operations Management System
Operator’s can manage the machine bed more efficiently
Real-time machine visibility with OEE metrics on any Machine
Dashboard for ease of viewing – reduce downtime
Minimize rejects – root cause analysis
Connect production floor to any ERP system on actual schedule
MERLIN is communications platform of shop floor
DNC software tools to manage program code
Minimize Changeover
Increase Productivity
Embrace Lean Manufacturing
Our MEMEX Value Proposition
The tools we offer to help with these challenges
OEE is a method of measuring productivity
We provide VISABILITY we work to eliminate the Sneaker Net -
DNC speeds program transfer speed and allows the operator to Pull programs ,
text messages to
QA -Material Handling - Tool Room – maintenance
Goal is to keep the operator at the machine and producing
Management has the visibility to see what is happening on the shop floor all the time in real time and historically so problems can be identified and managed out for the future
The goal – Increase Productivity 1

2. * Based on customer survey
Value Proposition
Production improvements in the 10% - 50% range*
Financial Profit - EBITDA;
10% Operational improvement
20-60% Profit improvement
current & full capacity
Breakeven ROI in < 3 months
Real-time machine visibility + OEE numbers
including alerts: 2 - 5%
Operator Productivity increases: %
Reduce Downtime: 3 - 8%
Minimize Rejects: 2 - 4%
Root Cause analysis: 2 - 4%
Value stream data collection & analysis: 2 - 4%
Labor productivity tracking: 3 - 6%
Usage-based Preventive Maintenance: 1 - 2%
Benchmark scheduling & value streaming: 2 - 6%
62%
21%
To be clear we don’t try to tell you how to run your company
We do tell you how your company is running.
Your savings are going to be an aggregate of many small improvements and the wring out of lost time.
* Based on customer survey 2

3. Efficiency Value Proposition
Lean 6S, OEE, TEEP, TPM, Takt Time,
TQM, Kaizen, Continuous Improvement
All methodologies require data to support decision making
Collect actual automated machine data to prove the case
Real-time machine visibility with OEE metrics on any Machine
Dashboard for ease of viewing – reduce downtime
Connect production floor to any ERP system
Shop Floor to Top Floor
Increase Productivity
Embrace Manufacturing Efficiency
Whether subscribing to these methodologies or using your own, real, accurate data is the key, and the ability to analyze it is crucial. 3

4. The 6 Big Losses
The improvement opportunities are always in one of the following “buckets”
Breakdowns - Pro-active operator and trigger s
Setup - Modal capture, e-alerts,
Downtime - Utilization and down time reasons (Pareto)
Speed loss - in-cycle speed vs. product standards
Small stops - Machine state monitoring and reporting
Quality - Identified reject reasons captured by Merlin
(One by one)
Analyzing and focusing on these issues and their causes leads to……………… 4

5. Maximize Utilization … Find Hidden Capacity … Is there more?
“Gut Feel”
Improve Uptime
Minimize Downtime due to unforeseen breakdown
Predict when a machine will fail
Online diagnostics for machine up and running faster
Reduce Costs
Embed Maintenance Records & Alerts
Improve Profitability
Analyze uptime for hidden capacity
Identify Bottlenecks to improve throughput.
Improve Quality
Links to Quality Control
On machine inspection & In-line Correction
OEE (Overall Equipment Efficiency)
= Availability x Performance x Quality
= % Utilization x % Std Rate x % Yield
Shows group or plant output as a % of maximum capacity
World Class = 85% (= 95% x 95% x 95%)
Find the hidden capacity – the column on the left is ideal – but the one on the right shows how the time gets eaten by the problems of the previous slide. 5

6. Reporting

7. Reporting

8. Reporting

9. Event Chart
Historical and Real Time machine states 9

10. Real time shop floor visibility
Shop Floor Designer
Real time shop floor visibility 10

11. Data Table Screen User Definable data views
Users can define any number of real time information screens created from 150 data elements.
Once a screen is created it can be recalled from a table view drop down list. 11
User Definable data views
Specific real-time data displayed
Users merely select the data they want displayed
Save the table view and its available every time the user logs on.

12. Web Client Access 12

13. Multi-Lingual Powerful Toolset allows Multi-Lingual and Customization13

14. Documentation - Extensive
The information required for the end user to own and manage and grow the system is included – our developers strive to make this a system that does not require someone with indepth knowledge to maintain it and make changes to anything that may evolve in the plant over time……. 14

15. Features Technology: Microsoft compliant Reporting – Crystal Reports
Linked MS Office – alerts
Database SQL
MS Studio 2010 development tools
OLE for Process Control (OPC)
Microsoft's OLE/COM technology
Table driven
Scalable & Flexible
This is is not proprietary technology, and that’s why our customers love the system 15

16. Microsoft Dynamics AX to MERLIN MERLIN to Microsoft Dynamics AX
ERP Integration
Link production to any ERP, bi-synchronously
Microsoft Dynamics AX to MERLIN
MERLIN to Microsoft Dynamics AX
Infor Visual to MERLIN
Erp integration – work order to the floor, results reported back, making costing and scheduling for the next job easier based on your actual experience with each product )mention Boeing asking for cost cutting - and you know you can keep that business and be profitable because you figured out how to be more efficient making their parts – and beating out the competition because you got smarter………………)
MERLIN to Infor Visual 16

17. Productivity Increases
OEE Benefits
Productivity Increases
Productivity Increases
Improve manufacturing productivity with real-time monitoring of production.
Minimize unproductive labor with automated data collection and reporting.
Improve inventory accuracy
Give accurate delivery dates with visual production scheduling and job tracking.
Identify problems fast, before production or quality suffers, with real-time displays.
Link shop floor to any ERP - business system two-way link, to improve accuracy of information.
Real-time Machine Detail lets you zero in on problems.
OEE = % Performance x % Availability x % Quality 17

18. Productivity Increases
OEE Benefits
Productivity Increases
Real-time monitoring of every production machine prevents problems from occurring.
Eliminate manual data entry.
Schedule and track job progress at individual machine level...in real-time.
OEE Software is scalable and cost-effective you install only the capability you need.
OEE Software is practical because it was designed by and for manufacturing users.
Connect to any machine on the shop floor.
Real-time display screens Data Tables as you run your business – your own KPI or OEE. 18

19. Productivity Increases
OEE Benefits
Productivity Increases
Productivity Increases
Determine real Job Standards to help improve your Job costing.
Analyze causes for Downtime and Rejects then eliminate them.
Preventive Maintenance scheduling based on real run time and cycle count data, rather than calendar.
Visual, “drag and drop” production scheduling and Job tracking based on actual shop floor conditions.
Machine operating history in detail with a “paperless” Strip Chart.
Shift scheduling the way you run your plant.
Monitor production schedule remotely or in multiple locations.
Real-time Process Variable monitoring prevents problems and can control complex machines with programmed logic.
Analyze operator and maintenance staff performance. 19

20. Productivity Increases:
Customer Successes
Productivity Increases:
Precision machining company realized a 25% savings on whole plant
Aerospace company realized 11% efficiency improvements in first 3 mo.
5% increase in productivity on 20 machines is equal to an extra machine.
32% faster using Memex products
We save 3 hours per week per machining center. With 13 machining centers we save 2,000 hrs per year, representing over $200,000 per year.
OEE went from 30% to now on average in the 60% range
Large equipment manufacturer went from 24% to 62% OEE on machines
Specialty Machining group went from 25% to 60% OEE
Enterprise aerospace company saw a 25% overall improvement
Fine tuning setup process went from 410 parts/week to 690, a 68% gain
Furniture manufacturer 25% improvement, no overtime more production 20

21. PDCA – Corrective Action Project Plan
36.9%
Plan
85%
2 months later
These are real – before and after reports of how one of our customers went form ~%37 OEE to 85% once they acted on the data shown on the Merlin reports.
130% gain in OEE

22. Corrective Action Examples
1.High volume/hr programs targeted
2.Operators identify unnecessary M01s 3.Programmers removed M01s
DO’s
1. Check Tool Barcode Added
2. Insert check interval set to 5 minutes
3. Alert System

23. COST OF MO1 & NOT_IN_MEMORY CHECKING INSERTS (BEFORE STATE – FEB 2013)
Before: their improvements (note the M01 and not in mem)
COST OF MO1 & NOT_IN_MEMORY CHECKING INSERTS (BEFORE STATE – FEB 2013)
MACHINE
DT CODE
DT HOURS
RATE/HOUR
LOST $
169
MO1
183.87
116
$21,328
187
248.48
$28,823
211
NOT IN MEM
74.64
$8,658

24. DT HOURS CURRENT (SEPT)
Check
MACHINE
DT CODE
DT HOURS CURRENT (SEPT)
RATE/HOUR $
LOST $
ADDITIONAL $’S
(FEB VS. SEPT)
169
MO1
20.51
116
$2,379
$15,981
CHECK TOOL
25.59
$2,968
187
9.81
$1,137
$22,994
40.45
$4,692
211
NOT IN MEM
35.4
$4,106
$1,673
24.82
$2,879
After – 450 down hours reduced to 220 – so far! More to go!

25. Real Time Snapshot of a Shift
Why MO1’s – Programed optional stops; intended for operators to check the condition of the inserts.
Observations
Excessive amounts of M01s
No set interval for how long a tool check should take
OEE < 40 %
~$45,000 /month

26. Real Time Snapshot of a Shift
Excessive M01 eliminated from program
Operators scan in when performing a tool check; 5 minutes intervals allotted to check tools before an alert is sent out
OEE > 85%
Act
PAST 4 MONTH
Month
Value Added ( vs. FEB)
June
$36,536
July
$43,074
Aug
$39,233
Sept
$40,648