2. 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%
2
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
3. Manufacturing Execution Real-time Lean Information Network3
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).
4. Manufacturing Execution Real-time Lean Information Network4
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
7. Manufacturing Execution Real-time Lean Information Network7
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
AxDNC
CNC 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
8. Manufacturing Execution Real-time Lean Information Network8
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
9. Manufacturing Execution Real-time Lean Information Network9
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
10. Manufacturing Execution Real-time Lean Information Network10
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.
11. Manufacturing Execution Real-time Lean Information Network
Worksheet: OEE Return On
Investment
11
OEE ROI Calculator
Input Current
Values
Proposed New
Calculated Values
Delta / 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 $42,224
Estimate 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 $229,320
Estimate # 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
enterprise
1.00%
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
Thresholds
0.50%
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
conditions
0.00%
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
12. Manufacturing Execution Real-time Lean Information Network12
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
12
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
13. Manufacturing Execution Real-time Lean Information Network13
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 Options
MERLIN 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
14. Manufacturing Execution Real-time Lean Information Network
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
14
16. Manufacturing Execution Real-time Lean Information Network16
Production Monitoring
• Make visible specific machine status for everyone
• Slideshow feature allows for any information screen to be displayed
automatically on shop floor displays
17. Manufacturing Execution Real-time Lean Information Network
MERLIN runs on SMART devices
Tablets can be very
useful in a mobile
dynamic
environment.
19. Manufacturing Execution Real-time Lean Information Network19
MERLIN Operator Interface (HMI), Okuma PC based control
Visualization: Okuma Customer
Installation
20. Manufacturing Execution Real-time Lean Information Network20
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
21. Manufacturing Execution Real-time Lean Information Network21
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.
23. Manufacturing Execution Real-time Lean Information Network
ERP Integration
Link production to any ERP, bi-synchronously
23
Microsoft Dynamics AX to MERLIN
MERLIN to Microsoft Dynamics
AX
Infor Visual to MERLIN
MERLIN to Infor Visual
Memex -ERPAdapters
24. Manufacturing Execution Real-time Lean Information Network
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]
24
26. Manufacturing Execution Real-time Lean Information Network
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.
26
