JC- webinar presentation

Manufacturing Execution Real-time Lean Information Network1

Manufacturing Operations

Management System

Manufacturing Execution Real-time Lean Information Network

Our Customers’ Experience • Production improvements in the 10% - 50% range*

– Financial Profit - EBITDA;

+10% OEE improvement

+ 22% IFO improvement

– Breakeven in 6 months

– ROI: 108%

• Real-time machine visibility + OEE numbers

including alerts: 2% - 5%

• Operator Productivity increases: 1% - 10%

• 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%

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85%

59%

0%

20%

40%

60%

80%

100%

Theoretical

Availability

Actual

Availability

UPTIME ANALYSIS

Maintenance

Setup

Idle

Feed Hold

Dial Back

Productive

MMS: TOP Shops: Benchmark

Plant(s) 1

Machines 50

Revenue $15,103,300

IFO $1,887,913

Current OEE 50%

MERLIN +OEE 55%

Investment $(200,000)

Incremental +IFO $415,341

Monthly +IFO $34,612

Months to B.E. 6

Annual ROI 108%

What We Deliver– ROI VALUE


Why do we do what we do?

We believe giving operational assets of equipment, operators and

OPEX analysts an objective voice in their processes, enabling

them to intelligently report capacity utilization in real-time!

We believe we can transform your team into the factory of the

future ..TODAY.. from your existing plant(s), with uninterrupted

certainty of production, with more profit than current state!

We believe we can get the manufacturing and executive team on the

same capacity utilization (“CU”) page with concise operational

intelligence with real-time reporting , regardless of their global

location, to increase CU and EBITDA (+10%CU = +22%EBITDA).


Our Background…

1992 Co-Developed Bubble Memory Replacement for Fanuc 6/9/11/12

1993 Created Fanuc 0 & 10 CMOS Memory Upgrades

1994 Created the first High Speed Loader for Fanuc 6

1995 First Released the popular Mx1000 BTR

1996 Enabled a Network connection to Fanuc 6/11 – Invested in Spectrum

1997 Started Successful Caterpillar Flexible Manufacturing Retrofit

1998 Developed Fanuc 16/18 Memory Upgrades - Also Started retrofitting

1999 First CNC Web Connection – Joined OMAC

2000 Developed advanced DNC with R&D efforts

2001 Became one of the Largest DNC Vendors in North America

2002 Memex focuses on Research & Development

2003 Memex launches its Mx1100 Universal Machine Tool Interface

2006 Memex invents Dynamic Computer Aided Machining

2007 Memex invents Tool Tip Automation

2008 Astrix Group of companies formed - assets together, MTConnect TAG

2009 Launch of Integrated OEE+DNC machine monitoring and control

2010 MTConnect leads in connecting legacy machine tools

2011 Launched new MERLIN OEE enterprise solution

2012 Memex enters its Commercialization Phase, selected by Microsoft

2013 MERLIN selected by Mazak, wins F&S award, goes public TSX-V: OEE

2014 Award winning MERLIN adopted by machine tool manufacturers

2015 Mazak VIP Partner


Reference Customers

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Manufacturing

Enterprise

Real-time

LEAN

Information

Network


Manufacturing Operations Management

Data Collection Model

Ax9150 UMI

3-30VDC Digital Inputs

Digital Outputs

Serial Device Data

Analog Inputs

/ Mx2000-G55 Operator Interface

Real Time

Bi-Directional

Data Flow AxConfig

Any Shop Floor Asset

CNC, Press, IMM, D. Mac, Etc.

OPC

Server

AxOEE

Software

ERP Connector

(Bi-Directional)

AxEvent

Historian

AxEvent

Email Server

Shop Floor Data Producer Layer

Configurable Adapter

Configuration / Setup

Event Notification

Data Traffic Manager (DTM)

Operator Stimulus

MT Connect

Server

Data Consumer Layer

MTConnect

Client

OPC

Client

AxDNCCNC Program

Transfer / Morphing

Other Applications

Real-

Time

SQL

History

SQL

RFID

Fanuc

Focas

ERP

Level 1* - connection

Level 2* - package

Level 0* - machine

* per ISA-95 standards

Level 3*

MES

Level 4* - modeling software


Hardware

Abstraction Layer

Ax9150 UMI

ISA-95 Standards

Profit

Level 4

Level 3

Level 2

Level 1

Level 0

Mfg. Execution System

Dist. Control System

Connection

Machine

ERP

From ERP: production plan, work orders

To ERP: production performance results

MERLIN Connectivity


Leaders in Connectivity

Group Data item

Data type or

Element type

TranslationalAxis current_position length_measure

jog_speed Linear_velocity_measure

Servo ON status Boolean

Stroke_limit or

travel_limit length_measure

programmed_strokelimit length_measure

current_limit current_measure

progammed_current_limit current_measure

RotationalAxis

or Spindle current_velocity angular_velocity_measure

current_position plane_angle_measure

target_velocity angular_velocity_measure

current_limit current_measure

programmed_current_limit current_measure

AxisGroup feedrate Linear_velocity_measure

Workpiece origin CoordinateFrame

offset CoordinateFrame

Tool offset CoordinateFrame

ON_OFF_Device Spindle_clamp_state Boolean

Tool_clamp_state Boolean

Flood_coolant_state Boolean

Global HMI API

Common Data Model

(XML Schema)

Date Items

(Element)Element Type

NameSpace

STEP-XML

NameSpace

OMAC API

NameSpace

Others?

External

References

Since 1999 Memex has had a leading role developing an industry standard. 1st with OMAC – we architected the OMAC standard. Next with MT Connect – co-wrote it.

Industry Standards Stewardship


Resolve Critical Business

Issues

Productivity – Capacity, bottlenecks, under utilization

Quality – identifying and eliminating bad parts

Performance – validating and optimizing product standards

Visibility of shop floor operations

Integration of business systems such as ERP

Responsiveness – pro-active alerts to machine issues

Continuous improvement initiatives, TPM, LEAN, etc.


Worksheet: OEE Return On

Investment

11

OEE ROI Calculator

Input Current

Values

Proposed New

Calculated ValuesDelta / Shift / Machine

Delta - Totals / Year / All

Machines

Cost Savings on an

Annual Basis

GENERAL INFORMATION:

Days / week plant is in operation 7

# of Shifts / Day worked 3

# of Hrs / shift worked 8

# of Machines in enterprise connected to Memex's Machine Monitoring OEE System 40

Estimated # of Operators on the Shop Floor for # of machines being Monitored 40

Estimated True Cost per Hr (Operator, Overhead, and Machine amortization, in Dollars) $145.00

Estimated Hourly Labour cost per Operator (Burdens In) $40.00

Estimated Gross Profit per Part Made (in Dollars) $5.00

Estimated Annual Gross Revenue (in Dollars) $60,000,000.00

Estimated Annual Expenses (in Dollars) $54,000,000.00

AVAILABILITY or UTILIZATION: 95.5% 97.5% 2.0%

Number of coffee Breaks / Shift - NOT INCLUDED IN OEE CALCULATIONS 2

Duration of coffee Breaks (Minutes) - NOT INCLUDED IN OEE CALCULATIONS 10

Duration of Lunch Breaks (Minutes / Shift) NOT INCLUDED IN OEE CALCULATIONS 15

Estimate of Unplanned Downtime per shift (Minutes / Shift, per Machine) 20 19.6 -0.4 291 $42,224Estimate of Avg Setup Time / Job (Included in OEE Calculation) 0 Units ----> Total DT in Min / Shft Reduction in Min / Mac / Shift Total Hrs / Yr Saved Cost Impact in Dollars / Yr

Estimate of # of Jobs per shift, per machine 1

QUALITY: 95.2% 95.7% 0.5%Estimate # of Good parts made per Shift (Average Shift in any week) 200 201.1 1.0 45864 $229,320Estimate # of Total parts made per Shift (Average Shift in any week) 210 Units ---->New Good Parts / Shft Increase in Good Parts / Shft Increased Qty Good Qty parts / Yr Cost Impact in Dollars / Yr

PERFORMANCE or AVERAGE STANDARD RATE: 87.5% 89.5% 2.0%Estimate of Max. Output of parts / shift (@100%, No Downtime Accounted for) - Average 240 Units ---->New # of Parts / Shft Increase in Parts Produced / Shft Increased Qty Parts / Yr Cost Impact in Dollars / Yr

Estimate of Actual Output of Parts / Shift - Average 210 214.8 4.8 209664 $1,048,320

CALCULATED OEE % (Availability X Quality X Performance) 79.6% 83.5% 4.0% SMALL OEE INCREASE $1,319,864

Utilization Performance Quality

Shop Floor Visibility - Via email alerts and Dashboard Data Presentation(s) throughout the

enterprise1.00%

1.00%

Operator Productivity Increases - Management Knowledge of All activities 1.00% 1.00%

Reduction of Downtime - Adoption of Lean / Corrective Action on Data Collected 0.50% 0.50% 0.50%

Minimize Rejects - Root Cause Analysis - Email alerts when quality diminishes below set

Thresholds0.50%

0.50%

Labor Productivity Tracking (By product / Operator / Shift, etc). Allows quick corrective

Action(s)0.50%

0.50% 0.50%

Usage based Preventative Maintenance - cumulative knowledge of machine problems 0.00% 0.00%

Reduction in Setup time - Can measure consumed vs. allotted, React quickly to offside

conditions0.00%

0.00%

Totals 2.0% 2.0% 0.5%

ROI is Based on a Small Incremental change in Enterprise Wide OEE

Existing Gross Revenue (As input above) $60,000,000

Existing Expenses (As input above) $54,000,000

Existing EBITDA Profit (Revene - Expense) $6,000,000

Increase in Gross Revenue (Based on increased capacity attributed to OEE improvement) $1,745,834 2.91% Dollars / Percentage - (New Available Capacity, Equated to Dollars)

Decrease in Total operating Expenses Due to savings atttributed to OEE improvement) -$42,224 -0.08% Dollars / Percentage

Increase in EBITDA Profit Due to Increased Revenue and Decreased Expenses $1,788,058 29.80% Dollars / Percentage - (Based on Full Utilization of hidden Capacity)

Cost of a Memex System - Installed per Machine - Average $5,995 Unit Price per Machine

Total cost of Deployment (Based on # of Machines) $239,800

Savings attributed to OEE centered Continuous Improvement $1,319,864 Total Savings Based on Small Increase in OEE

# of Weeks till return of entire Investment in memex Te is achieved 9.4

Typical improvement Areas - across the enterprise (Based on Actual Memex

Deployments and relevant customer feedback)Estimated %

increase

Expected

OEE Area Affected

Instructions: To model and calculate your specific unique ROI value equation utilizing Memex's

leading edge UMI based, OEE centered Technology, simply key in the areas colored in Purple (Column

A) with the data requested. For a quick view of the associated benefits expected, either click on the

"SMALL", "MEDIUM", or "LARGE" buttons located at teh top right (Cell A1), or located in cell A28 to

preload the Blue Area (Column A) with (3) typical pre-defined incremental OEE Improvment datasets. If

you wish to model your own dataset, simply key the data into the Blue area. The % resultant changes

will be shown in Green and Red In Column H. The Associated Cost reduction benefits in Dollars are

shown in Green in Column J. Total Savings are shown in Cell B46, along with # of Weeks to full

payback, in Cell B47. If Gross revenue and expense numbers were provided, true OEE adoption

benefits can be seen in Cells B/C 41 to 43 in Dollars and Percentages.

SMALL MEDIUM LARGE

Choose your level of Incremental Change

Print Sheet to Default Printer

SMALL MEDIUM LARGE

Print Sheet to Adobe PDF

Assumptions

Expected

Efficiency

Improvement

Weeks for

Payback

Profitability

Increase

OEE

Increase

$ Savings


TOC Productivity Analysis

• Identify Constraints

– Production Counts

– Scrap & Reject Counts

– Run/Cycle Times

– By Shift, work order, product

• Improve Throughput

– Hidden capacity accurate start/end times

uptime analysis - cutting/idle

breakdown analysis

– Quality improvements

• Increase Profitability

– Focus on bottleneck throughput

– Accurate data allows for Improved employee decisions

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Where are my

bottlenecks?

How can I improve

my bottom line?

How can I

produce more?

3

1 2

If you can Measure it – then you can Manage it

TOC = Theory Of Constraints

3

1 2

3

1 2


MERLIN Machine Connectivity

Corporate Dashboard

MERLIN provides real-time and

capacity utilization.

Corporate-wide

Reporting

CORPORATE USERS

Real-time Metrics, On-time Delivery

MERLIN Machine Connection OptionsMERLIN natively connects to OPC, FOCAS2 & MTConnect protocols. Legacy assets connect via MERLIN

Universal Machine Interface family. MERLIN connects all assets to

management, providing shop floor to top floor information exchange.

Shop Floor to Top Floor Visualization

MERLIN ServerERP MERLIN eHMI adds mobile

bi-directional operator control of

any machine

LEGACY MACHINES FOCAS ENABLED MACHINES MTConnect ENABLED MACHINES OPC ENABLED MACHINES


MEMEX/MAZAK/CICSO:

SMARTBOX

Cyber Security Device for ‘IIOT’ focus on securely

accessing data in legacy machines

• A trio of Mazak, Memex and Cisco, a device meant to securely manage manufacturing

data—information on equipment states like axes, spindles, temperatures, cutting times,

downtimes and part counts, for starters—culled from machines that have been laboring

in a sort of silence for decades.

• ‘SmartBox uses I/O links to connect machines and produces MTConnect code in real

time.

• It can also use Memex’s factory- and machine-shop-floor-monitoring software, Merlin, to

map existing signals and analyze and correlate the data so shops and plants can use it

to improve productivity.

• The SmartBox has a “level three” managed switch that will shut the device down

automatically if a USB stick comes its way or someone unplugs a particular Ethernet

connection

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Manufacturing

Enterprise

Real-time

LEAN

Information

Network


Production Monitoring

• Make visible specific machine status for everyone• Slideshow feature allows for any information screen to be displayed

automatically on shop floor displays


MERLIN runs on SMART devices

Tablets can be very

useful in a mobile

dynamic

environment.


MERLIN- Shop Floor Monitor

Real time

shop floor

visibility


MERLIN Operator Interface (HMI), Okuma PC based control

Visualization: Okuma Customer

Installation


MERLIN e-Alerts System

Email engine can be

configured to send

emails and SMS text

messages upon:

• Defined events

• Thresholds

Be alerted to:• Breakdowns

• Setup overruns

• Scrap/defects

• OEE levels

• Unscheduled

maintenance


Comprehensive Reporting

New Extract, Load

and Go Reporting

Engine.

12 criteria

7 Arguments

3 sort levels

with 13

elements

Provides the user with

virtually an unlimited

number of report options

extracted from the historian

database through an ever

growing number of

templates.


Comprehensive & Historical Analysis

Comprehensive Reporting


ERP Integration

Link production to any ERP, bi-synchronously

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Microsoft Dynamics AX to MERLIN

MERLIN to Microsoft Dynamics

AX

Infor Visual to MERLIN

MERLIN to Infor Visual

Memex -ERP Adapters


Recent News

• Award Winning for Machine Monitoring Systems

MERLIN scored 9.4 out of 10, others in range 6.4 to 7.4

• Mazak selected Memex MERLIN in Florence, KY

largest machine tool manufacturer in the world

• Machine tool vendors endorsing MERLIN; Okuma

THINC, Anca, Gleason, more

• Microsoft endorsing MERLIN www.dynamicscafe.com

• Cisco endorses Memex – SmartBox secure

• Enterprise deals; Mahle, Milwaukee Tool, S&C, Ridge Tool

• Memex is a public company [TSX-V: OEE]

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Customer Testimonials

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A Proven Solution


Customer: TCO Value

"The implementation of MTConnect is one of the simplest

and fastest ways to improve productivity and increase

machine utilization.

Mazak's MTConnect implementation provided the highest

ROI for any capital investment because of the significant

increase in utilization of equipment for a very moderate

expenditure.”

Brian Papke, President of Mazak USA (largest machine tool

manufacturer) when speaking at a press conference at

IMTS2014 along with Doug Woods, the President of AMT

Mazak implemented MERLIN as their MTConnect solution.

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© 2016 Memex Automation Inc., 3425 Harvester Road, Suite 200, Burlington, Ontario, Canada L7N 3N1 (866) 573-3895

Thank You

Documents

JC- webinar presentation