May 19 th 2015 SHOP FLOOR INTEGRATION WITH

May 19 th, 2015 SHOP FLOOR INTEGRATION WITH DYNAMICS AX Gregor Newland & Mikhail Roytman Ellipse Solutions MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 1

AGENDA – INTEGRATING SHOP FLOOR IN AX § Understanding Where MES & Shop Floor Machinery Fit in the Technology Layers § What AX Already Has § Business & Operational Reasons for Shop Floor Integration § Data Harvesting (Phase 1) vs Real-Time Bi-Synchronous Integration § Honoring Production Steps in AX § Demo § Final Thoughts and Questions MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 2

INTEGRATION OF LAYERS Shop Floor Machinery MES • • • Wonderware MERLIN Custom Developed Microsoft Dynamics AX MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 3

WHY INTEGRATE? Shop Floor to Top Floor visibility, interaction, and management § For those who need more than Shop Floor Control (AX 2009) and Manufacturing Execution System (AX 2012) Connect Microsoft Dynamics AX to shop floor in real time § Know exactly what is happening at machines through bisynchronous communication with Dynamics AX MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 4

WHY INTEGRATE? Automatic Data Collection from the machines § Have accurate and objective data collected directly from machines and manual workstations, including part counts, run time, down time and reject counts by reason codes. § Minimize reliance on the machine operator for information, eliminating errors. MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 5

WHY INTEGRATE? Feed Dynamics modules with automatic and accurate data: § Shop Floor Control with Production Order completion data, accurate times and counts § Inventory Management with quantities produced and consumed § Product Management with accurate job standards, viscosity, heat measurements, run rates § EAM with machine cycles, run hours, down time, reason codes, asset utilization § HR Time and Attendance with operator log in, time on machine and piece count § Quality Control with rejects and reasons MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 6

WHY INTEGRATE? § Production improvements in the 10% - 50% range ‒ 10% Operational improvement ‒ 20 -60% Profit improvement ‒ Average ROI in < 3 months § Real-time machine visibility + OEE numbers including alerts 2% - 5% § Operator Productivity increases 1% - 10% § Reduce Downtime 3% - 8% MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 7

WHY INTEGRATE? § Minimize Rejects - 2% - 4% § Root Cause analysis - 2% - 4% § Value analysis stream data collection and - 2% - 4% § Labor productivity tracking 3% - 6% § Usage-based Preventive Maintenance - 1% - 2% § Benchmark scheduling and value streaming - 2% - 6% MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 8

WHY INTEGRATE? Simple monitoring (data harvesting) often Phase 1 – but does not provide: § Real-time process monitoring within AX production and scheduling functionality § Instant communications of BOMs & BOM revisions to the shop floor § On the fly changes of order priorities in real-time § A single version of the truth ‒ ‒ ‒ Production Orders Scheduling Planning Inventory Updates BOM Revisions MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 9

PRODUCTION ORDER STEPS Master data Create BOM, Route Estimate Schedule Release Start MES Integration Workflow MES MANUFACTURING & SUPPLY CHAIN @AXUG Production Order Route/Job Card Production Picking Report as Finished End JOIN AXUG 10

PRODUCTION ORDER STEPS Master data § Single Version of the Truth § Reliance on a Single Data Base § One-Step Order Creation § One source for BOMs and Routes MES § Faster Roll-Out of BOM Changes § Faster Roll-Out of New Products § No Need to Manage/ Reconcile Multiple Scheduling Tools § Only Available in Bi-Synchronous Model MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG Production Order Create BOM, Route Estimate Schedule Release Start Route/Job Card Production Picking Report as Finished End

PRODUCTION ORDER STEPS Master data § Real Time Monitoring of Shop Floor Processes Create BOM, Route Estimate Schedule Release § Route Card Updates as They Happen § Approved BOM Substitutions Automatically Updated § Automated Inventory Entries (Components, Raw Materials, Scrap & Finished Goods) § Production Scheduling Experiences Finished Orders In Real Time § Use AX Reporting Tools for Performance Analysis MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG Production Order MES Start Route/Job Card Production Picking Report as Finished End

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THINGS TO REMEMBER § Most older machines can be retro-fitted § Licensing Considerations § Operational returns easier to justify § Examine and consider ROI from granular gains § Bi-synchronicity is a must – the other glass is half empty § Start with a single “pilot” line/project MANUFACTURING & SUPPLY CHAIN @AXUG JOIN AXUG 14