Kraftmob Manufacturing Execution System & Warehouse Execution System

Typical Benefits and Cost Justification

THE INFORMATION CONTAINED HEREIN IS CONSIDERED CONFIDENTIAL AND PROPRIETARY AND IS INTENDED SOLELY FOR USE IN THE EVALUATION OF GUPPY PLASTICS SDN BHD AND ITS MES/WES SYSTEM AND PRODUCTS. THE
INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED, IN WHOLE OR PART, TO ANY THIRD PARTY INCLUDING OTHER EMPLOYEES NOT PARTICIPATING IN THE EVALUATION OF THIS PROPOSAL. THAT DATA SHALL BE
MAINTAINED WITH THE SAME DEGREE OF CARE THE ABOVE NAMED COMPANY USES TO MAINTAIN ITS OWN CONFIDENTIAL INFORMATION.
KRAFTMOB S/B RESERVES THE RIGHT TO REQUEST FOR THE RETURN, AT ITS DISCRETION, OF ANY AND ALL MATERIALS FURNISHED IN CONJUNCTION WITH THIS PROPOSAL. 1
 Kraftmob – Manufacturing Execution System and Warehouse Execution System

Process Mapping, Downtime Monitoring and Lines / Machines Utilization – Is It Worth It?

Many companies using lines/machines and process for production and warehousing can gain big benefits implementing
a MES/WES production and warehousing process and downtime monitoring and lines / machines utilization system.

• How do you decide if it’s worth the investment? • What are the benefits to be gained?
• How do you start to calculate the savings to be made?
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 Benefits of Manufacturing Execution System and Warehouse Execution System

Benefits of Process, Downtime Monitoring and Line / Machine Utilization

The use of KM-MES/WES System and Visual Monitoring System for production and process monitoring provides many benefits
including:
• Increased Efficiency • Reduced Down Time • Reduced Operating Costs
• Higher Profits • Increased Output

These benefits are achieved by:

• Real Time Line / Machine Monitoring

 Provide access and view of current status of all lines / machines instantly.
 Able to respond to problems more faster and identify recurring issues.
 Give production managers the tools needed to exercise better control. This can result in a 2 – 4 % reduction in idle time.

• Targeting Line / Machine Downtime

 Understand and quantify the causes of unplanned down time from online reports.
 Reduction in frequent short stops often gives a 5 – 10 % reduction in down time.
 Reduction in long stops often gives a 5 – 15 % reduction in down time.
 Provide on-line information to speed up line operations / machine repair and maintenance.
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• Line Cycle Time / Machine Speed Regulation and Optimization
 Detect and prevent under speed production. Reducing under speed running can yield a 1 – 2 % increase in output.
 Optimizing line cycle time and machine speeds can typically add a further 0 – 6 % increase in output.

• Scheduling and Batch Tracking

 Project batch end time – change over crews and equipment can be prepared in good time. This can reduce change over times by 10 – 20 %.
 Accurate batch tracking removes the need for over runs. Eliminating over runs can increase efficiency by 1 – 2 %.

• Raw Materials Monitoring

 Monitor raw materials supply to each line / machine to ensure a continuous supply. Can reduce line / machine down time by 1 – 5 %.

• Motivation
 Encourage competition and demonstrate how important efficiency is to the business.
 Monitor performance and learn from best practice how to become more efficient.

• Improve Administration
 Automated data collection removes the need for paper records and saves time.
 Automated reporting provide fast authentic data access and removes the errors introduced by manual data entries.
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Improve Manufacturing Operations Management (MOM) with MES & WES System

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 How MES & WES System Improve Manufacturing Operations Management (MOM)

1. Improved Shop Floor Management

KM-MES/WES Line / Machine utilization and down time monitoring systems continuously collect data from all monitored lines /
machines. This live information are automatically stored in the database server and then presented either or both on a KM PC display or
Visual Monitoring display as a ‘shop floor overview’, which provides an instant picture of the condition of every line / machine.
Production data are reflected in PC screen format and by clicking on any individual line / machine, ‘zooms in’ to a full screen display of
that line / machine which shows detailed information such as last reason for stoppage, line / machine efficiency, estimated time to end of
batch, number of products manufactured this shift/day etc.

2. Regulation and Optimization of Process and Line Cycle Time / Machine Speed
Real time monitoring of process / line cycle time / machine speeds provides two main benefits for improved efficiency.
Firstly, it is possible to accurately monitor process / line cycle time / machine speeds against target levels for each line / machine and alert
when they are performing out of range. In particular small variations in line cycle time / machine speed will often go unnoticed by
operators whereas KM-MES/WES can immediately alert the need for corrective action to be taken. Such variations can provide efficiency
increases of 1 – 2 %.
Secondly, it is possible to use the KM MES/WES to help to optimize process / line cycle time and machine running speeds. The availability
of continuously recorded data allows for later analysis and can be used to determine the maximum process / line cycle time and machine
speed that can be sustained without adverse effects. Where process / line cycle time and machine speeds can be varied, cycle time and
speed can yield efficiency increase of 1 – 6 %.

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3. Reducing Process and Line / Machine Downtime
Reducing process / line / machine down time has an instant benefit effect on production efficiency and output. KM-MES/WES systems
that continuously and automatically captures and records process / line / machine status provides this information – with down time
accurate to one second and exact stoppage reasons for every process / line / machine provide detailed down time reports, including
graphs and charts can be produced at any time clearly highlighting where remedial action is needed.

Down time can often be categorized in terms of short or long duration stops …………….

• Short Duration Stops

Short duration stops are usually where the process / line / machine is stopped for the operator to rectify a ‘minor’ problem then restart
the process / line / machine. Most businesses are unable to accurately quantify short duration stoppage times, as they tend to go
unrecorded by operators – who are often too busy and may see them as insignificant.

• Long Duration Stops

Identifying the causes of long duration stops is particularly beneficial as focusing attention on these can greatly reduce down time. To
provide accurate information of long duration stops the system not only records down time but also stoppage reasons. The down time
reason is inputted either via the system computer keyboard or a keypad terminal adjacent to the machine.

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4. Reducing Process and Line / Process and Machine Change Over Times
KM-MES/WES can store change over settings and information in the form of ‘recipes’ that can be electronically downloaded to process /
line / machine controls. This allows much faster process / line / machine set up times compared with having to manually change line /
machine settings for each new run and shift. It is also possible to automatically ‘countdown’ to a change over as it monitors the current
batch so that changeover crews are alerted and materials are available when required thus reducing line / machine idle time to a
minimum.

5. Reducing Materials Waiting Time

By automatically monitoring the materials available for each machine it is possible to reduce lost production time caused by process /
lines / machines running out of raw materials. Depending on the situation, the system calculates in real time the materials in hand and
alerts when the buffer stock drops below a set level. This alert can be presented to the operator via the machine operator terminal, or
passed directly to a PC located in the central stores. The system can even be configured to calculate which lines / machines will require
supplies next and thus provide a time ordered schedule for restocking, making it easier to ensure a continuous supply of raw materials is
available at each machine.

6. Improved Planning & Scheduling

Each new production run or batch is identified by a unique user defined batch reference. The information for that run or batch, including
start and end times and all the relevant monitored parameters, can then be stored in the system database against that unique batch
reference. The status of each run or batch is calculated in real time, automatically comparing actual production against quantity required,
forecasting the time of completion.
This allows the production planning and sales departments to be kept informed of the status and forecast delivery times of every order in
the factory.
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7. Elimination of Overruns
KM-MES/WES can provide an accurate measure of production in real time and when the required quantity is produced. The system can
alert the operator or automatically stop the run.
Eliminating overruns reduces the usage of materials, energy and labour and frees up line / machine capacity. This can result in an
increase in efficiency of around 1 – 2 %

8. Reduction in Paperwork and Administration

The data that is collected and stored by the system can be used to provide a range of user definable management reports. Any data
available within the system database can form the basis of a report, including production quantities efficiencies, run and stop time,
stoppage frequencies, reject rates etc. It is possible to report by process, machine, operator, line / machine group and type, product,
batch etc. Reports can be generated on demand or automatically by job, batch, shift, day, week, month etc.
KM-MES/WES not only eliminates the need for manual data collection, filling in of forms and data inputting to spreadsheets but also
provides the information in a form which is easy to analyse thereby further reducing wasted time. This can often save 30 to 60 minutes
per shift and information flow from one shift to the next is greatly improved. Time saved on data collection and inputting allows more
time for evaluation, analysis and other more productive work. If required, data can be easily exported directly to any standard window
based spreadsheet or reporting packages.

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9. Improved Staff Motivation
Improved staff motivation can be achieved in two ways:
Firstly, the data collected by the system can be used to keep staff informed of their performance against target production rates via
system visual display screen. Goal setting and competition between work groups or cells can significantly improve motivation and
output.
Secondly, the awareness that production is being monitored and the understanding that computers cannot lie often have a refreshing
effect on staff behavioural patterns and practices that may have been formed over time.

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Key Performance Indicator (KPI) in Manufacturing Operations

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MES/WES Systems Benefits in Summary

• Real time process and production information allows problems to be addressed before it is too late.

• Average process / line / machine speeds are improved.

• The length and causes of down time are fully understood, leading to informed remedial action.

• Line / Machine change over times are reduced.

• Manufacturing overruns are eliminated.

• The need for manual data entry is reduced to a minimum.

• Motivation and performance is improved.

• Production control and planning is more effective.

• Production management is able to exercise better control.

• Up-to-date and accurate information is available to all departments.

• Profitability is increased

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Best Practice Steps We Follow to Implement MES and WES Solutions for Your business

1. Business requirement analysis, which will help us to determine your requirements and to be able to provide a solution
appropriate for your business and requirement. We shall formulate a business process map unless you already have one.

2. Determine equipment type and interrogation zone for Process Signal Interface
3. Ambient Electromagnetic Noise (AEN) and Signal analysis
4. Site Assessment
5. Product assessment and testing
6. Interface Hardware Selection
7. Application selection or integration analysis including third party APIs when application already exist.
8. Architecture design for Wiring Network
9. Setting up a pilot project upon confirmation. (implementation and or integration scope)
10. QA and UAT
11. Upon UAT approval, move the pilot to actual operation
12. User’s training
13. Solution support and maintenance as per the SLA

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