FACTORY OF THE FUTURE Turning Accelerated Disruption into

FACTORY OF THE FUTURE Turning Accelerated Disruption into Opportunities Date: 6 th February 2020 Godfrey Kuria Operations Business Analyst, Am. SSA

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Agenda The Industrial Revolution Industry Challenges Opportunities Leading Practices Across the industry o Digital Factory and Use Cases o Case Study o o

Industrial Revolution

Companies are struggling to make a sustainable breakthrough in performance using traditional Faster in all Activities excellence approaches manufacturing Order to Make New Product Introduction Lower Manufacturing Power & Fuel Best in Quality First Time Right On-Time in Full Capital Projects Conversion Cost Stores & Consumables Lower Rejects & Reworks Labour Cost/Unit Capex/U nit Meet Customer Specifications Eliminate Waste Tighter Tolerances Regulatory Compliance Factory/Labour laws Health & Safety Industry Specific Standards Process Adherence Ever increasing Complexity No. of Products Process Differentiation Equipment Complexity Demands on Talent

Technology is bringing significant opportunities…… And Shaping the Factory of the Future Factory Today Suboptimal Inventory High Waiting times Setup time for Moulds High Time to Market High Downtime Labour Underutiliza tion High Rejections QC Resolution Industry 4. 0 Key Technolo gies High Energy Costs Leakage of power Big Data RFID, GPS, Maps, W/h automation Production Fluctuations, Scheduling Urgencies Mobile & Cloud Applicati ons Factory of the Future Engineering LCM 3 D Printing Predicti ve Maintenanc e (AI) Machine Vision, AR, Robotic s Quality Analytics Asset Tracking Weara bles Interne t of Thin gs Energy Monitoring & Optimization Robotics / AI Augme nted Realit y Integrated Planning & Schedulin g Advan ced Vizualiz ation

The consequences of not addressing these challenges means digital transformation is not achieved • Not linked to drivers of Plant performance with imbalance across Op. Ex & Io. T/AI apps • Lack of a coherent roadmap & scaleability • Numerous contradictory Pilots with silo’d applications, difficult to scale, limited ROI • Fragmented approach to application development – slow, costly • Lack of holistic reference architecture • No individual application guide lines and standards • Lack of User Centric design with shop floor outcome focus • Operators and Mechanics dealing with multiple applications • Expensive, complex data lake initiatives • Applications not built within a standard framework

significantly improve the adoption and outcomes of our Op. Ex programs through the use of enabling technologies Disruptive Technologies Operational Excellence Valu e • Improved service • Re-work cost savings • Warranty cost-savings levels • Overhead cost savings • Labour savings • Working capital savings • Maintenance savings Better decisions + right actions Smart equipment - predictive • Energy Smart people - increased • Yield loss savings insights capabilities

Leading Practices Across the industry

Case Study Global Manufacturing Execution System in Nairobi Factory 2019

Global Manufacturing Strategy One Virtual Global Factory requires common systems & processes

Global Manufacturing Execution System……. platform for Factory of the Future! GMEs is a system that: o Consolidate, simplify and digitize our factories, standardizing processes and greatly reducing process errors that might have otherwise required rework or product recalls. o Provides Product Integrity and Tracking & Tracing capability o Provides near real time visibility of plant performance. o Links the Enterprise Systems (e. g. ERP) with the shop floor control systems (e. g. SCADA, HMI or PLC). o Represents a set of coordinated functions capable of optimising plant activity in all phases of manufacturing.

The approach…… SAP ERP Areas in SAP - ERP: 1. Production Planning and detail scheduling 2. Inventory/Warehouse Management Bi Directional Standard Interface with SAP 3. Specification Management 4. Materials and BOM Management Main Focus in GMES : MES 1. Production Order Management in Shop Floor and Production Update to Supply Chain via ERP Bi Directional Standard Interface With PLCs ( PMD, Maker, Packer) & QTM 2. Product Integrity (right materials in right product) 3. Tracking & Tracing ( of WMS and Leaf Blend within factory) 4. KPI Calculation (OEE, Downtime, Waste) 5. Quality Monitoring – Moisture, QTM (automatic SPC chart) 6. Near Real Time Visibility ( Production

Factory Landscape & Integration points GMES WEB Services GMES Application Interface Machine Integrator SSIS Integration HHT - SCANNERS OPC Server PLC Devices Machine Data, Instrument Data, Printer device data LABEL Printers Weighing Stations PMD / FMD Automation PMD (Start / Stop Operation) BIN Filling BIN Feeding Batch Process Machine Connection Product validation One SAP Integration – Global Tao Template IWS (ANT) ANT System Integration Track & Trace Information LIMS (GLQ) Laboratory Information Management System for Physical & Chemical Labs Quality Equipment Weighing Scales Pack Seal Equipment Modular, sequential test stations, e. g. QTM or Sodimat RPC LIMS Regional Product Centres Palletizer FG Palletizing Systems Label Data Nice Label Integration for Outer, Pack, MC labels Line Systems Master Case Information & counting Local Applications Graphical User Interface – Machine Terminals SAP GLOBAL Systems GMES

The outcomes… . …a step change in enabling our business Supporting IWS Improve OEE, manufacturing cost, standardise factory quality Embed common processes, compare performance between sites Simplify and standardise IT estate Standard Platform Exploit for future capabilities

Thank you Asante