1. Version 1.0 Otto Künnecke GmbH The Smart Bureau Concept The smart way to increase productivity and save costs in card production and personalization

2. Version 1.0 OK - Smart Bureau Integrated Concept for Intelligent Card Production and Higher Productivity Otto Künnecke Innovation...and the Smart way to solve them…

3. Version 1.0 Job size is getting smaller 5000 3000 7000 past 100 1512308 7850205 4 today Production time is shorter 1 week past today 24 hours or less day to day delivery time is getting standard Problems of card issuance today

4. Version 1.0 New marketing needs...of different kinds of inserts & envelopes......of carriers, cards and folding types......of sizes & layout......and positioning of cards. Problems of card issuance today

5. Version 1.0 Difficult to handle jobs which consist of many different parameters : 9)Envelopes 1)Transport 2)Issuing type 3)Card body 4)Card encoding 5)Tape layer 6)Carrier 7)Carrier layout 8)Enclosures enclosure black/silver/gold tape layer Embossing, Problems of card issuance today

6. Version 1.0 Different machines Which are not working together, neither software, nor hardware After each production step, the magazines have to be emptied and the cards have to be stored in card boxes to handle the cards forward to the next machine … all with different card magazines, therefore the handing-over of card magazines is not possible. Additional problems

7. Version 1.0 The necessary production information is stored in different locations and in different data bases Additional problems Specific customer personalization data Card number Issuing date Gottlieb Daimler Rear indent Product code Address 6.00am 10.00am 3.00pm 5.00pm Production information data enclosure 10.00am Job specific data Product code

8. Version 1.0 enclos ure black silver card carriers 7 different enclosures delivery Production is creating a lot of small batches for each customer job 2646 Data sets = 1 customer job Customer input 54 production batches with an average of 49 cards Production output

9. Version 1.0 Each variation creates a new batch Origin Job-Nr Sub- batch Nr Batch sizeCard-ID 1 Tipping ColourCarrier ID 1Insert ID 1Insert ID 2Insert ID 3Insert ID 4 Envelope ID 1 Dispatch ID 2 Dispatch ID 3 456.345.23Black555.003.21666.987.01666.786.23666.045.43666.098.22999.001.00ExpressPost BOF 001BOF 001-0134xxxxx xx BOF 001BOF 001-0256xxxx x x x BOF 001BOF 001-0333xxxxx xx x BOF 001BOF 001-0488xxxxx x x BOF 001BOF 001-05 45 xxxxxxx BOF 001BOF 001-06 38 xxxxxxx Every variety of products and personalization functions create a new job. enclos ure Even same products but different dispatch creates a new job

10. Version 1.0 1000 400600 200 40020090110 9024016015050 34 5660 50 401101308070302080 Job BOF 001-02: 56 cards VaultPersoMailingDispatch 3 hours VaultPersoMailingDispatch 3 hours Each of these batches are running though the production: from vault to personalization to mailing to dispatch Job BOF 001-01: 34 cards Issuing type Card body Carrier Inserts

11. Version 1.0 Very often cards have to be sorted by hand either for the next production step or for delivery reasons as assorted cards for each branch Cards have to be sorted for different reasons before and after personalization by hand; here for example by regional or branch offices. Regional or branch office 1A 1B 1C 1D 1E 1A 1B 1C 1D 1A 1B 1C 1D 1E 1A 1B 1C 1D 1E 1A 1B 1C 1D 1E 1A 1B 1C 1D 1E VISA blue VISA silver VISA gold MasterCard blue MasterCard silver MasterCard gold

12. Version 1.0 Between each production step, the cards have to be inspected, sorted and counted. A lot of job instructions accompany each batch through the production. Counting Verifying Quality control Counting Verifying Quality control

13. Version 1.0 Very often, envelopes have to be sorted by hand for different sorting reasons, like sorting for branches or for mail-order companies Job 1 Job 3 Input Output Job 2

14. Version 1.0 Actual production circle Data preparation 1 Personalization 2 Mailing System 3 Dispatch 4 Software

15. Version 1.0 Overview of daily job sizes in most of the financial bureaus worldwide Most of the job are smaller than 50 cards; Average worldwide : ≤ 20 cards 80 % of the daily card volume makes 20 % of daily work. 20 % of the daily card volume makes 80 % of daily work. Jobs Cards per jobs

16. Version 1.0 Job size Output/h Output productivity goes down Cost per cards are getting higher Output/h Costs per card Summarized, the actual work flow in nearly all card personalization bureaus creates a lot of inefficient small batches followed by a lot of manual work. This leads to:

17. Version 1.0 Solution? OK - Smart Bureau The new way of intelligent card production

18. Version 1.0 1) higher productivity Productivity % Job size Target 2) lower costs Costs % Job size

19. Version 1.0 3) better overview and transparency JOB ID= Card ID Delivery data Mailing- Data Information for enclosures one data base Target

20. Version 1.0 4) better information all around the production job-name personalization 10.00am mailing 12.00am 2.00pm Target

21. Version 1.0 Production Flow without and with sorting VaultPersoMailingDispatch VaultPersoMailingDispatch Workflow without sorting Workflow with sorting 3 hours 1 h 12 hours 4 hours CISS Card sorting EISS Envelope Sorting today tomorrow

22. Version 1.0 New production circle with intelligent sorting and inspection Software Mailing System Data preparation 1 CISS for pre- personalization 2 Personalization 3 CISS for sorting after personalization 4 5 EISS for envelope sorting 6 Dispatch 7 8

23. Version 1.0 1. Data preparation Data preparation 1 Open system for handling of different type of input data. Data acquisition to prepare input data according to production requirements. Data Input Data acquisition Production job generation Input data base -Input checking -Verification machine data base Personalization system Production feed-back Logging Log files

24. Version 1.0 The Card Inspection Sorting System CISS is creating a controlled rainbow-deck by verifying the card body and encoding the magstripe. Each batch is using different card designs only based on the existing personalization modules of the personalization machines. Embossing 3 lines, black tape layer, magstripe encoding, rear ident 2. Step creating of rainbow-deck cards for personalization Card ID-No. 1564876 The card is personalized either with the card ID-no. or the complete ISO customer ID CISS for pre- personalization 2 Customer ID 12345678912354 Customer name Max Mustermann Bank account 6454875

25. Version 1.0 By reading the magstripe information, the personalization system identifies the card and finishes the complete customarized personalization. 3. Step personalization of rainbow-deck cards 12 10000000022 10000000024 10000000023 10000000025 10000000027 10000000026 10000000028 10000000030 10000000029 10000000021 10000000011 10000000013 10000000012 10000000014 10000000016 10000000015 10000000017 10000000019 10000000018 10000000020 10000000030 10000000002 10000000001 10000000003 10000000005 10000000004 10000000006 10000000008 10000000007 10000000009 Read back 00009=045 00007=045 00008=045 00006=045 00004=045 00005=045 00003=045 00001=045 00002=045 00010=045 00020=046 00018=046 00019=046 00017=046 00015=046 00016=046 00014=046 00012=046 00013=046 00011=046 00030=047 00028=047 00029=047 00027=047 00025=047 00026=047 00024=047 00022=047 00023=047 00021=047 20 Personalization 3 Max Mustermann 255468864

26. Version 1.0 4. Step after personalization the CISS is optimizing the next production step Output Input VISA gold silver blue 4 CISS for sorting after personalization Test Counting Verifying Inspecting Sorting

27. Version 1.0 Output 5. The mailing system is using rainbow-decked cards. Due to the card information, the carriers and enclosures are selectively included in the mailing. Theoretically, each card is a separate job. Different card position 5 Mailing System Different carriers with different templates Different enclosures enclos ure Envelopes Cards in rainbow-deck

28. Version 1.0 6. The Envelope Inspection and Sorting System EISS is identifying, verifying, printing and sorting the envelopes for different sorting criteria. Conveyor 1Conveyor 2Conveyor 3 Job 1 Job 3 Input Output Job 2 6 EISS for envelope sorting

29. Version 1.0 7. By using the intelligent functions of the Otto Künnecke Systems, the final sorting and packaging of cards or carriers is done automatically. Envelopes branches 7 Dispatch Envelopes courier Envelopes zip-code San Francisco New York Los Angeles

30. Version 1.0 The intelligent systems of OK verify, inspect and quality control can be carried out in each production step. Damaged or wrong cards could be identified and rejected before handling to the next production step. 1385921411110785barcode: 1385921411110785mag.-stripe: 1385921411110785OCR: 1385921411110785chip: Bank & Insurance Inc.Logo card: 8 Verifying and inspection

31. Version 1.0 ID 54 The intelligent systems of OK can handle different card magazines, either from OK or other machine producers like Mühlbauer, Datacard, Ruhlamat. Each magazine can be transported from one machine to the next. By using the intelligent virtual inline magazine solution, each magazine stores the card information in the data base. ID 54 8 Virtual Inline Virtual Inline Production

32. Version 1.0 8. Otto Künnecke software connects each machine with a network. HOST Input/Output Control for the whole production 8 Software Rush / Pull By using the DIALok Data and Logistic Center, card information can be used throughout the production. Rush / Pulls or double cards can be identified and taken out of the production. By storing the audit trail of each production step, a complete production profile of each card can be stored.

33. Version 1.0 8. By using the card info module of the Otto Künnecke software, all production information is transported via network to each machine. Card ID : 20060123-3452678 job-name : bank of the best 002 Data Preparation : 6:32 am Vault : 8:21 Personalization: DC 9000 9:45 am Mailing: Kuennecke 12:55 am 2:00 p.m. 8 Software The operator is informed by each machine which products have to be used for each production step. The Information about the final layout of each product can be displayed throughout the production.

34. Version 1.0 Software Data preparation Personalization Dispatch 1 3 7 8 Otto Künnecke Products CISS for pre- personalization 2 CISS for sorting after personalization 4 Mailing System 5 EISS for envelope sorting 6