Computer Integrated Manufacturing

1. Computer Integrated Manufacturing Benefits and Application for the Roll Forming Industry Metalcon 2008 Andy Allman President AMS Controls

2. Computer Integrated Manufacturing (CIM) CIM “integrates production, administrative, and support functions in a manufacturing firm by tying together separate automated systems and minimizing administrative and manual functions.” • Electronic flow of information related to all aspects of the manufacturing process

3. Computer Integrated Manufacturing (CIM)

4. Downloading production schedules Managing part specifications Tracking job completions Tracking coil usage Enforcing material selection Tracking operator performance Recording scrap generation Tracking machine performance through OEE Coordination of all related equipment (machine setup, part and bundle printing, packaging equipment) Scope of CIM for metal building production:

5. Benefits of Integrated Manufacturing • Mistake-proofing • Increased capacity • Flexibility • Information gathering • Policy enforcement

6. Mistakes Happen Example: 10 orders/day 5 items/order = 100 entries/day 99.9% data-entry accuracy rate = 1 error every 10 days

7. Mistake-Proofing Order Fulfillment • Ensure the correct profile, material, length, quantity, etc. are delivered to the customer when promised • Mistakes caught at the factory are expensive; mistakes caught at the job site are much more costly and may damage customer relations • Best approach: single point data entry & verification

8. Mistake-Proofing Inventory Management • Material-to-Job validation is based on coil serial number • Registration of the current coil ID allows accurate tracking of every inch of material used on the machine • Tight control and auditing reduces chances of theft

9. Increased Capacity • Most roll forming machines in the metal building industry only run 20-30% of the time • Increasing running time from 20 to 25% has the same impact as increasing the machine speed from 300 to 375 fpm • Data entry and production logging can cause significant production losses

10. OEE – Overall Equipment Effectiveness Total Time Availability % Available Production Time Unscheduled Time Running Time Downtime Max Speed Speed % Actual Speed Speed Loss Total Footage Yield % Good Footage Scrap Actual Production Unrealized Capacity

11. 200 fpm throughput rate 7 hours/day, 240 working days = 1680 hours $1.00/ft material cost, $1.60/ft net selling price $15/hr total labor cost 20% Availability 95% Speed 98% Yield OEE = .20 x .95 x .98 = 18.43% Output = 1680 hrs x 200 fpm x 18.43% = 3.7 million feet of good product Financial Impact of Capacity Increases

12. Before improvement: OEE = 18.43% Output = 3.7 million feet After 10% OEE improvement: Output increase = 375,379 feet Incremental profit = $225,277 10% improvement via availability = 7.45 minutes/day < 1 minute/coil change Financial Impact of Capacity Increases

13. Low-Cost Customization Punching patterns Trim profiles Bundling Marking Dynamic Scheduling Push or pull Easy on-the-fly adjustments Anticipate problems while time exists to fix them Flexibility

14. Information Gathering Productivity information is used to: • Manage operations staff • Make capital spending decisions • Direct maintenance efforts • Improve scheduling • Evaluate vendor performance • Support continuous improvement Management buy-in is critical!

15. Information Gathering What information is important? • Order completions • Material consumption • Running and down-time • Good and scrap production • Production rate • Data “dimensions”:

16. Information Gathering Best methods to view & analyze data: • Drill-down reports from summarized to detail • OEE charting over time • Pareto analysis

17. Summary • Direct benefits • Less mistakes, more output, more flexibility • Indirect benefits • Use information to direct capital & management focus • Competitiveness • Don’t give customers a reason to look elsewhere • If you’re not moving forward, you’re falling behind • Slow times are ideal to implement integration