09/06 Title: Batching & Filling – An introduction to the Market & Proposed Strategy Manufacturing Areas: Making & Packing Date: July 2007 Presented by

09/06

Title : Batching & Filling – An introduction to the Market & Proposed Strategy

Manufacturing Areas : Making & Packing

Date : July 2007Presented by : Rodger Jeffery & Venus Simmons

2 07/07

Scope of Discussion

• WHY? Motivation & Objectives

• WHAT? BCS Market & Solutions

• WHO? End Users – Environment, Business Drivers, Needs

• HOW? Proposed B&F-BA Portfolio Model • SO WHAT? Benefits for End Users & Mettler Toledo

3 07/07

The Supply Chain

MAKE

PACK

4 07/07

Motivation & Objectives

Top 10 Motivations for this Workgroup (not ranked)- Need a comprehensive portfolio of batch & filling solutions (MTNA)- Competitors (e.g. 920i) solutions eroding customer and distributor base (MTNA)- No current replacement for legacy product (e.g. 9215) (MTNA)- Need a PC based global batch solution (MTE)- Opportunities for growth in small to mid-sized batch and packaging market (MTNL)- Need to develop communication drivers for new terminals for manual batch (BASY) - Need to be able to capitalize on Q.i technology investment across terminals (MTWI)- Need to be able to differentiate MT’s solutions portfolio to drive SI & OEM growth (CS&S)- Need to develop common terminology glossary for batch & filling (BASY, MTWI & MO’s)- Need new sources of revenue growth (BUSI)

5 Objectives for this Workgroup- Develop B&F (Tools & Solutions) Functional Matrix - Develop B&F Positioning Matrix- Develop path forward for communication drivers for new terminals for manual batch- Develop B&F Glossary- Discuss ways to improve channel Skills/Resource challenges

5 07/07

Scope of Discussion




• HOW? Proposed B&F-BA Portfolio Model

• SO WHAT? Benefits for End Users & Mettler Toledo

6 07/07

Batch Control Systems Market – layers by % of units

Source: ARC Advisory Group

7 07/07

Batch Control Systems Market – by market segment adoption

• Chemical

• Pharmaceutical

• Pulp & Paper

• Food & Beverage

47.2%

28.4%

8.3%

6.3%


2005 Worldwide Market 3,2 M USD

“ Opportunities for Growth “

8 07/07

Batch Control Systems Market – by hardware platforms

2005 Worldwide Market 3,2 M USD

• DCS-based = 53.8% +1%

• PLC-based = 43.3% -1%

• PC-based = 3.0% +9%

Source: ARC Advisory Group“ Potential for Partnerships “

9 07/07

Scope of Discussion




• HOW? Proposed B&F-BA Portfolio Model

• SO WHAT? Benefits for End Users & Mettler Toledo

10 07/07

• Fewer plants

• Complex mix of products per plant

• Demand for higher quality product & service

• More difficult to maintain brand loyalty

• Reduced time to market

• Global competition

• Margin & regulatory pressures

• Growing lack of technical resources

• Projects align to business strategies & prioritized based on ROA/EVM

End Users – Environment, Business Drivers, Requirements

11 07/07

Orders

PC

Resource Planning

PC

Raw Material Logistics

PC

Manufacturing

PC

ProductLogistics

PC

Shipping &

Billing

PC

Delivery

PC

Produce

FAT & Start Up

Construct

Engineer

R & D

Innovate

Optimize & Maintain

Make Pack

Manufacturing

PC

PLC, DCS, Other


Sources: WBF,OMAC,ARC Advisory

12 07/07

Manufacturing

PC

Produce

FAT & Start Up

Construct

Engineer

R & D

Innovate

Optomize

Make Pack

ERPManufacturing

MESPC

PLC, DCS, Other

A growing percentage of CEO’s view the traditional Manufacturing Supply Chain as a…

TACTICAL LIABILITY

• Complex to Install & Operate

• Time consuming to implement

• Not scalable enough, not agile enough

• Not robust enough

• Lacks Standardization

• Generates Process Data (secs, min,hr)

• Expensive to Own & Operate

Business leaders are now investing inways to return Manufacturing back to a…

STATEGIC ASSET

• Simple to Install and Operate

• Quick to Implement

• Scalable (Size, Price & Performance)

• Robust

• Use Industry Standards

• Also generate Business Intelligence

• Lowest possible Total Cost of Ownership

ISA S95 Standard

ISA S88 Standard OMAC Standard

Business leaders are reinvesting inways to return Manufacturing back to a…

STATEGIC ASSET

Simple to Install and Operate

Quick to Implement

Scalable (Size, Price & Performance)

Robust

Use Industry Standards

Also generate Business Intelligence

Lowest possible Total Cost of Ownership

Sources – WBF, OMAC & ARC


13 07/07

Orders

PC

Resource Planning

PC

Raw Material Logistics

PC

Manufacturing

PC

ProductLogistics

PC

Shipping &

Billing

PC

Delivery

PC

Produce

FAT & Start Up

Construct

Engineer

R & D

Innovate

Optimize

MakeBATCH

PackFILL

Manufacturing

PC

Maintain

STATEGIC BUSINESS ASSET

Simple to Install and Operate

Quick to Implement

Scaleable (Size, Price & Performance)

Robust

Use Industry Standards

Also generate Business Intelligence

Lowest possible Total Cost of Ownership

OEMSI

OWNER manufacturer or CONTRACT manufacturer


Optimize the Manufacturing Supply Chain

14 07/07

2.72

2.73

2.84

2.96

2.96

3.00

3.00

3.16

3.16

3.24

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

Improved change control

Improved material tracking module

Controller data buffering & time stamp

Enhanced data collection/historian

Common S88 data definitions

Common phase structure

Improved product traceability

Standard library of equip. modules

Better intrgrated view of the batch

Standard library of control modules

Not Important

Critically Importan

t


Prioritized Review of ALL User RequirementsSource: ARC Advisory Group

15 07/07

Not Important

1.72

1.88

1.96

1.96

2.04

2.54

2.64

2.67

2.68

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

Tools to convert General/Site Recipe to MasterRecipe

Tools to convert P&IDs to User RequirementsSpecs

Increasing size of execution system

Link procedure to equip. control

Tools to convert P&IDs tocode

Common S95 data definitions

Common library of HMI objects

Distribute batch execution functions

Batch execution in the controller

Critically Important

Prioritized Review of ALL User Requirements



16 07/07

“ Manufacturers require more robust dock to dock batch control system to meet their business needs.

They want to be able to invest in commercial

off the shelf batch control systems”


Business Drivers…OPTIMIZE the Enterprise Supply Chain

17 07/07

Scope of Discussion





18 07/07

B&F-BA Model..based on ISA 95 & ISA 88 (ANSI & IEC)International Standards

S95

S88

19 07/07

Unit Procedure(s) Unit(s) Process

Stage

combined with a

Operation(s) Unit(s) Process Operation

combined with a

Phase(s) Unit(s) Process Action

combined with a

Phase(s) Equipment Module(s)

combined with an

Procedure(s) Process Cell(s) Process

combined with a

provides process functionality to carry out a





Resulting Process

Functionality Equipment Procedural

Elements

Procedural Control Model

Physical Model (Lower Portion)

Process Model

Process Action

B&F-BA Model …based on ISA S88/IEC 61512 International Batch Standards

Source: S88 part 1

20 07/07

Standard Control Strategies (i.e. S88/IEC61512 & OMAC)

Standard Data Flows (i.e. SP95)

Standard Presentation

Standard Documentation (i.e. S88 e-records & recipe models)

Resources

Analysis

Scope

Start-up

Test

Configure

Design

Reusable Engineering

Proprietary API ApproachStandard API Approach

Custom One Off Implementation

Standards Facilitate PerformanceStandards Facilitate Performance

B&F-BA Model…Standards & Guidelines

21 07/07

Modular Programming saves time & money over Conventional Programming

Conventional

Programming

Modular

Programming

Program Development 4-5 weeks 1.5 weeks

Program Testing 3-4 weeks 0.6 weeks

Machine Testing 3-4 weeks 3-4 weeks

B&F-BA Model…Standards & Guidelines

Source: WBF Make2Pack Workgroup

22 07/07

Principles of Design

1. Product will follow all current and evolving ANSI and IEC standards on Batch Manufacturing

2. All solutions will use a TABLE BASED RECIPE STRUCTURE

3. All solutions will follow the S88 model for RECIPE TYPES (General, Site, Master, Control)

4. A recipe should be able to SIMULTANEOUSLY START & RUN MULTIPLE PROCESS ACTIONS (phases/equipment modules). However, they are not necessarily managed once started

5. All solutions will support a LIMITED SET OF PHASE CLASSES

6. All solutions will support UNIT CONTROL MODES

7. All solutions should support CONFIGURATION CHANGE LOG IN THE TERMINAL & RECIPE CHANGE LOG IN THE PC

8. The SP88 11 state phase model will apply the states to the appropriate level of control.

23 07/07

Batching Portfolio (15.5.07)

EN

TR

YE

NT

RY

+M

ED

IUM

HIG

HH

IGH

+

formulation

EN

TR

YE

NT

RY

+M

ED

IUM

HIG

HH

IGH

+

MANUAL

manual filling, check-weighing

AUTOMATIC

filling, dosing

batching

Sin

gle

Com

pone

ntM

ulti

Com

pone

nt

formulation

manual filling, check-weighing filling, dosing

batching

IND 690

batch

IND4...check /

R

remotebatching PLC w/o

HMI

IND 690 form

IND4...check

IND 560 fill

IND 690 fill

IND 690

fill / R

IND ???form/

batch / R

IND 560

fill / R

IND ???batch+/

R

remotebatching with HMI

at the PLC

FormXPIND690

IND ???form/R

xxx

xxx

Master data on PCplus remote work terminal

Stand-alone terminal

IND ??? Remote batching w/o HMI

FoW ID30

24 07/07

Functional Matrix (6.7.07)

Batch Functionality based on “location” of batch control

25 07/07


1. Terminal based Material Transfer tools

2. Terminal based Batch Executive

3. Controller based Batch Executive

4. PC based Batch Executive

Four ‘location” types:

1 2 3 4

26 07/07


Terminal based Material Transfer tools:

• Terminal is used as a tool for control system’s access to weight data

• Only provides material transfer functionality (target)

• Relies on some type of communication interface

• Simplest level of functionality

27 07/07


Terminal based Batch Executive:

• Terminal is responsible for execution of recipe(s)

• Traditionally thought of as stand alone batch product

• Replacements for LynxBatch, 9215

• Limited by amount of I/O & simple manufacturing information

28 07/07


Controller based Batch Executive:

• Controller is responsible for execution of recipe(s)

• Terminal may be used for execution of material transfer phase

• Strengths lie in I/O control (logical to physical connection)

• Weakness in production scheduling, recipe management

29 07/07


PC based Batch Executive:

• PC is responsible for control execution of recipe(s)

• Usually relies on controller or terminal for execution of phases (process action)

• Weakness – I/O control

• Strengths in manufacturing information, recipe management, production scheduling (access to other PC applications), suitable for Manual & Automatic batch.

30 07/07


Batch Executive functions:

• Manufacturing information: scheduling, recipe management, tracking/tracing, production analysis

• Manufacturing operations: recipe execution, arbitration, execution at unit and/or phase level

• Manufacturing process control: phase control, interlocks, exception handling

• Process Instrumentation: material feed control, process measurement, special operations (user interface, custom)

31 07/07

Scope of Discussion





32 07/07

4 Primary Benefits for End Users

2.91

3.14

3.23

3.36

4.18

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

Reduced Maintenance& Operations Costs

IncreasedManufacturing

Efficiency

Reduced EngineeringCosts

More ConsistentProduct Quality

IncreasedManufacturing

Flexibility

NotImportant

CriticallyImportant

“ Customer Investment Drivers/Benefits “


33 07/07

9 Benefits for Mettler Toledo

Delivers a comprehensive portfolio of batch & filling tools and solutions to the channel

Defends existing customer and distributor base from attack by competitors

Allows the channel to go after small to mid-sized batch and packaging opportunities

Globally harmonizes MT’s manual/automatic batch & filling solutions for the first time

Capitalizes on existing Q.i technology investment (exclusivity last for ~12 more years)

Differentiates MT’s solutions portfolio to drive SI & OEM growth

Delivers a common terminology glossary for batch & filling applications

Provides opportunities for MO’s to increase existing, or access new revenue growth

May eventually deliver a PC based small to mid size global batch solution

34 07/07

35 07/07

DRAFT ONLY

TOOLS & SOLUTIONS …completing the batch and filling range”

GMP (Standards Based e.g. S88) Batch / FillIntegrated Solution

Traditional Batch / FillManual

Stand Alone Solutions

OEM / SIIntegration Tools

MT Channel Solutions

IND560

IND780 Fill

Fill

Q.i Batch Compact +

Q.i Batch +

$1,500

$3,800

$10,900 >

Q.i pro + (12chn & Network )Q.i lite + (12chn) Q.I compact + (2chn)IND780 IND690IND560 Panther

C710/750T600

$750

$500

$6,211 >$3,988 >$3,200 >$2,300 >$2,100 >$1100 >$795 >

$27,500 >

T600 C710/750 Q.bATCHcompactIND780IND560 Q.bATCH

Full Q.i material transfer capability +Limited Q.i material transfer capability ~

IND690 SysFill

$?$?

Traditional (Non Standards Based) Batch / FillIntegrated Solution

Traditional (Standards / Non Standards Based) Batch / FillAutomatic or Semi-Auto Stand Alone Solutions

IND690 Q.iMPACT

36 07/07

DRAFT ONLY







IND560 ~

IND780 ~ XXX XXXXXX

XXX XXXXXX

Q.i Batch Compact +

Q.i Batch +

$?$2,000$1,500

$?$4,300$3,800

$10,900 >

XXXXXX XXXIND780 XXXIND560 IND331IND131

XXXXXX

$750

$500

$6,211 >$3,988 >$3,200 >$2,100 >$1 600 >$1100 >$695 >$495 >

$27,500 >





37 07/07

DRAFT ONLY








IND560 ~

IND780 ~ Formweigh?RecipeFill

Formweigh?RecipeFill

Q.i Batch Compact +

Q.i Batch +

$?$2,000$1,500

$?$4,300$3,800

$10,900 >

IND780 + (Q.i pro 12Network )IND780 + (Q.i lite 12) IND780 + (Q.i compact 2)IND780 ~IND560 + (Q.i compact 1)IND560 ~IND331IND131

C710/750 Repl ~T600 Repl ~

$750

$500

$6,211 >$3,988 >$3,200 >$2,100 >$1 600 >$1100 >$695 >$495 >

$27,500 >




Documents

09/06 Title: Batching & Filling – An introduction to the Market & Proposed Strategy Manufacturing Areas: Making & Packing Date: July 2007 Presented by