Attendance List General Managersrsquo Meeting

September 10 2014 Attendees ABIMAQ - Brazilian Machinery Builders Association Brazil

Gustavo Marcelo Szymsiowicz General Manager CSMF AFM - Advanced Manufacturing Technologies Spain

Xabier Ortueta Director General Juan Joseacute Goacutemez International Department

AMDM - Asociacioacuten Mexicana de Distribuidores de Maquinaria AC (Mexican Machinery Distributors Association) Mexico

Ing Salvador Icazbalceta Valle President CP Duber Enrique Aguilar Campos General Manager

AMTIL - Australian Manufacturing Technology Institute Limited Australia

Shane Infanti CEO Paul Fowler President

Austrian Trade Commission (Representing FMMI ndash Association of the Austrian Machinery amp Metalware Industries) United States Office

Peter Sedlmayer Austrian Trade Commissioner Anders Benson Sector Manager Machines amp Metals

CARMAHE - Argentine Chamber of Machine Tools Argentina

Federico D Meligrana Dorin Executive Manager Jorge Goumlttert President Luis Lewin Vice President

CECIMO - The European Association of the Machine Tool Industries Belgium

Filip Geerts Director General CELIMO - European Association for Machine Tools Tooling amp Technologies United Kingdom

Geoff Noon Secretary - General

CMTBA - China Machine Tool amp Tool Buildersrsquo Association China

Chen Huiren President amp CEO Ms Zhang Jing Director

CMTDA - Canadian Machine Tool Distributors Association Canada

Frank Haydar President

-2- Gardner Business Media Inc United States

Rick Kline Sr President Ms Melissa Skavlem COO Travis Egan Publisher Rick Kline Jr Group Publisher Steve Kline Jr Director of Market Intelligence

GIE Media Inc United States

Tom J Grasson Associate Publisher (Aerospace Manufacturing amp Design) JMTBA - Japan Machine Tool Builders Association Japan

Yoji Ishimaru President Kazuhiko Tanaka Director International Marketing Department Futoshi Murata Assistant Manager Administration Department

JMTDA - Japan Machine Tool Distributors Asssociation Japan

Hiroshi Usami President JMTIA - Japan Machine Tool Importers Association Japan

Toshihisa Yamashita Executive Director Yuzo Chiba Chairman

KOMMA - Korea Machine Tool Manufacturersrsquo Association Korea

In-Ho Shin General Director Hee-Jeong Choi Coordinator Sunny Lee Interpreter

MIB - Association of Turkish Machine Manufacturers Turkey

Mrs Sevda Kayhan Yilmaz President M Nail Tuumlrker Secretary General

MTA - The Manufacturing Technologies Association United Kingdom

James Selka CEO Adrian Sell Membership amp Events Director

SST - Association of Engineering Technology Czech Republic

Oldrich Paclik General Manager SWISSMEM - Swiss Mechanical and Electrical Engineering Industries Switzerland

Christoph Blaumlttler Secretary General

-3- SYMOP - French Association for Manufacturing Technologies France

Jean Tournoux General Director TAMI - Taiwan Association of Machinery Industry Taiwan

CC Wang President Ms Lisa Weng Director of Exhibition Division

TMBA - Taiwan Machine Tool amp Accessory Buildersrsquo Association Taiwan

Carl CC Huang Secretary General Ms Stephanie Ho Specialist

UCIMU ndash Sistemi Per Produrre Italian Machine Tools Robots and Automation Manufacturers Association Italy

Dott Alfredo Mariotti General Manager Ing Alberto Nicolai Marketing Manager Ing Enrico Annacondia Technical Department Officer

VDW - German Machine Tool Builders Association Germany

Dr Wilfried Schafer Executive Director Gerhard Hein Director Economic Department

Speakers (in order of appearance) AMT - The Association For Manufacturing Technology United States

Douglas K Woods President

Oxford Economics United States

Gregory Daco Chief US Economist

FORCAM Inc United States

Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO

MTConnect Institute United States

Courtney J Hill Chairman amp President VDW ndash German Machine Tool Buildersrsquo Association Germany

Dr Wilfried Schaumlfer Executive Director

-4- Staff of AMT - The Association For Manufacturing Technology United States

Douglas K Woods President Steve Lesnewich Vice President - Global Services Knox Johnstone Global Services Director Malcolm Mason Global Services Director Mario Winterstein Global Services Director Patrick W McGibbon Vice President - Strategic Analytics Kate Fritz Strategic Analytics Director Jackie McFarland Industry Analyst Juan Guerra Industry Analyst Sebastian Herrador Industry Analyst

AMT - Beijing Representative Office China

Xingbin Li Chief Representative AMT - Shanghai Technology and Service Center China

Harry Xiao General Manager China Business Consultant to AMT Canada

Feng (Sean) Jiang Global Services Manager

AMT - Chennai Technology amp Service Center India

Arun Mahajan General Manager AMT ndash Monterrey Technology amp Service Center Mexico

Carlos Mortera General Manager AMT - CentralEastern Europe Liaison Poland

Hubert Sawicki Consultant - C amp E Europe AMT - Sao Paulo Technology Center Brazil

Achilles Arbex General Manager

GENERAL MANAGERSrsquo MEETING September 10 2014 800am ndash 100pm

McCormick Place West Hall mdash Rooms 470aampb 800 am ndash 830 am Continental Breakfast Room W470a 830 am ndash 845 am Welcome by Mr Douglas K Woods President AMT ndash The Association For Manufacturing Technology 845 am ndash 945 am Economic Outlook Global Economic Outlook Improvements But Risks Remain Mr Gregory Daco Chief US Economist Oxford Economics

Mr Gregory Daco is Chief US Economist at Oxford Economics He is responsible for producing the US macroeconomic forecast using Oxford Economicsrsquo proprietary Global Economic Model Gregory tracks and forecasts high-frequency indicators and oversees the production of US research pieces on consumer markets housing business investment international trade labor markets inflation and fiscal and monetary policy Gregory is frequently cited in leading business publications such as the Financial Times the New York Times and the Wall Street Journal and he regularly appears on radio and television programs Prior to joining Oxford Economics Gregory was Director US Macroeconomics at IHS Global Insight He also worked in the Economic Affairs Department of the Belgian Embassy in Australia and the Permanent Representation of Belgium to the UN in Geneva Gregory is co-founder and president of the Boston Chapter of the National Association for Business Economics He holds a Master of Arts in economics from Boston University and a Master in Business Administration from Universiteacute de Louvain in Belgium

945 am ndash 1000 am Break 1000 am ndash 1100 am Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution

Mr Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO FORCAM Inc

Mr Franz Gruber is the Founder Chairman and CEO of FORCAM A former IBM Manager and a veteran SAP Executive Franz has over 25 years of practical experience working directly with automotive aerospace and defense and medical devices discrete manufacturing industries Within a decade of founding FORCAM in Germany he strategically expanded company operations globally to the United Kingdom Eastern Europe and the United States FORCAMs technology now monitors and optimizes the performance of over 50000 industrial assets globally in automotive aerospace and defense machinery medical devices and other industrial sectors Dr Mohamed Abuali is responsible for leading and managing the full life cycle of FORCAMrsquos shop floor technology at discrete manufacturing companies in automotive aerospace medical devices and oil amp gas Mohamed brings 15 years of

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

-2- Gardner Business Media Inc United States

Rick Kline Sr President Ms Melissa Skavlem COO Travis Egan Publisher Rick Kline Jr Group Publisher Steve Kline Jr Director of Market Intelligence

GIE Media Inc United States

Tom J Grasson Associate Publisher (Aerospace Manufacturing amp Design) JMTBA - Japan Machine Tool Builders Association Japan

Yoji Ishimaru President Kazuhiko Tanaka Director International Marketing Department Futoshi Murata Assistant Manager Administration Department

JMTDA - Japan Machine Tool Distributors Asssociation Japan

Hiroshi Usami President JMTIA - Japan Machine Tool Importers Association Japan

Toshihisa Yamashita Executive Director Yuzo Chiba Chairman

KOMMA - Korea Machine Tool Manufacturersrsquo Association Korea

In-Ho Shin General Director Hee-Jeong Choi Coordinator Sunny Lee Interpreter

MIB - Association of Turkish Machine Manufacturers Turkey

Mrs Sevda Kayhan Yilmaz President M Nail Tuumlrker Secretary General

MTA - The Manufacturing Technologies Association United Kingdom

James Selka CEO Adrian Sell Membership amp Events Director

SST - Association of Engineering Technology Czech Republic

Oldrich Paclik General Manager SWISSMEM - Swiss Mechanical and Electrical Engineering Industries Switzerland

Christoph Blaumlttler Secretary General

-3- SYMOP - French Association for Manufacturing Technologies France

Jean Tournoux General Director TAMI - Taiwan Association of Machinery Industry Taiwan

CC Wang President Ms Lisa Weng Director of Exhibition Division

TMBA - Taiwan Machine Tool amp Accessory Buildersrsquo Association Taiwan

Carl CC Huang Secretary General Ms Stephanie Ho Specialist

UCIMU ndash Sistemi Per Produrre Italian Machine Tools Robots and Automation Manufacturers Association Italy

Dott Alfredo Mariotti General Manager Ing Alberto Nicolai Marketing Manager Ing Enrico Annacondia Technical Department Officer

VDW - German Machine Tool Builders Association Germany

Dr Wilfried Schafer Executive Director Gerhard Hein Director Economic Department

Speakers (in order of appearance) AMT - The Association For Manufacturing Technology United States

Douglas K Woods President

Oxford Economics United States

Gregory Daco Chief US Economist

FORCAM Inc United States

Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO

MTConnect Institute United States

Courtney J Hill Chairman amp President VDW ndash German Machine Tool Buildersrsquo Association Germany

Dr Wilfried Schaumlfer Executive Director

-4- Staff of AMT - The Association For Manufacturing Technology United States

Douglas K Woods President Steve Lesnewich Vice President - Global Services Knox Johnstone Global Services Director Malcolm Mason Global Services Director Mario Winterstein Global Services Director Patrick W McGibbon Vice President - Strategic Analytics Kate Fritz Strategic Analytics Director Jackie McFarland Industry Analyst Juan Guerra Industry Analyst Sebastian Herrador Industry Analyst

AMT - Beijing Representative Office China

Xingbin Li Chief Representative AMT - Shanghai Technology and Service Center China

Harry Xiao General Manager China Business Consultant to AMT Canada

Feng (Sean) Jiang Global Services Manager

AMT - Chennai Technology amp Service Center India

Arun Mahajan General Manager AMT ndash Monterrey Technology amp Service Center Mexico

Carlos Mortera General Manager AMT - CentralEastern Europe Liaison Poland

Hubert Sawicki Consultant - C amp E Europe AMT - Sao Paulo Technology Center Brazil

Achilles Arbex General Manager

GENERAL MANAGERSrsquo MEETING September 10 2014 800am ndash 100pm

McCormick Place West Hall mdash Rooms 470aampb 800 am ndash 830 am Continental Breakfast Room W470a 830 am ndash 845 am Welcome by Mr Douglas K Woods President AMT ndash The Association For Manufacturing Technology 845 am ndash 945 am Economic Outlook Global Economic Outlook Improvements But Risks Remain Mr Gregory Daco Chief US Economist Oxford Economics

Mr Gregory Daco is Chief US Economist at Oxford Economics He is responsible for producing the US macroeconomic forecast using Oxford Economicsrsquo proprietary Global Economic Model Gregory tracks and forecasts high-frequency indicators and oversees the production of US research pieces on consumer markets housing business investment international trade labor markets inflation and fiscal and monetary policy Gregory is frequently cited in leading business publications such as the Financial Times the New York Times and the Wall Street Journal and he regularly appears on radio and television programs Prior to joining Oxford Economics Gregory was Director US Macroeconomics at IHS Global Insight He also worked in the Economic Affairs Department of the Belgian Embassy in Australia and the Permanent Representation of Belgium to the UN in Geneva Gregory is co-founder and president of the Boston Chapter of the National Association for Business Economics He holds a Master of Arts in economics from Boston University and a Master in Business Administration from Universiteacute de Louvain in Belgium

945 am ndash 1000 am Break 1000 am ndash 1100 am Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution

Mr Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO FORCAM Inc

Mr Franz Gruber is the Founder Chairman and CEO of FORCAM A former IBM Manager and a veteran SAP Executive Franz has over 25 years of practical experience working directly with automotive aerospace and defense and medical devices discrete manufacturing industries Within a decade of founding FORCAM in Germany he strategically expanded company operations globally to the United Kingdom Eastern Europe and the United States FORCAMs technology now monitors and optimizes the performance of over 50000 industrial assets globally in automotive aerospace and defense machinery medical devices and other industrial sectors Dr Mohamed Abuali is responsible for leading and managing the full life cycle of FORCAMrsquos shop floor technology at discrete manufacturing companies in automotive aerospace medical devices and oil amp gas Mohamed brings 15 years of

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

-3- SYMOP - French Association for Manufacturing Technologies France

Jean Tournoux General Director TAMI - Taiwan Association of Machinery Industry Taiwan

CC Wang President Ms Lisa Weng Director of Exhibition Division

TMBA - Taiwan Machine Tool amp Accessory Buildersrsquo Association Taiwan

Carl CC Huang Secretary General Ms Stephanie Ho Specialist

UCIMU ndash Sistemi Per Produrre Italian Machine Tools Robots and Automation Manufacturers Association Italy

Dott Alfredo Mariotti General Manager Ing Alberto Nicolai Marketing Manager Ing Enrico Annacondia Technical Department Officer

VDW - German Machine Tool Builders Association Germany

Dr Wilfried Schafer Executive Director Gerhard Hein Director Economic Department

Speakers (in order of appearance) AMT - The Association For Manufacturing Technology United States

Douglas K Woods President

Oxford Economics United States

Gregory Daco Chief US Economist

FORCAM Inc United States

Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO

MTConnect Institute United States

Courtney J Hill Chairman amp President VDW ndash German Machine Tool Buildersrsquo Association Germany

Dr Wilfried Schaumlfer Executive Director

-4- Staff of AMT - The Association For Manufacturing Technology United States

Douglas K Woods President Steve Lesnewich Vice President - Global Services Knox Johnstone Global Services Director Malcolm Mason Global Services Director Mario Winterstein Global Services Director Patrick W McGibbon Vice President - Strategic Analytics Kate Fritz Strategic Analytics Director Jackie McFarland Industry Analyst Juan Guerra Industry Analyst Sebastian Herrador Industry Analyst

AMT - Beijing Representative Office China

Xingbin Li Chief Representative AMT - Shanghai Technology and Service Center China

Harry Xiao General Manager China Business Consultant to AMT Canada

Feng (Sean) Jiang Global Services Manager

AMT - Chennai Technology amp Service Center India

Arun Mahajan General Manager AMT ndash Monterrey Technology amp Service Center Mexico

Carlos Mortera General Manager AMT - CentralEastern Europe Liaison Poland

Hubert Sawicki Consultant - C amp E Europe AMT - Sao Paulo Technology Center Brazil

Achilles Arbex General Manager

GENERAL MANAGERSrsquo MEETING September 10 2014 800am ndash 100pm

McCormick Place West Hall mdash Rooms 470aampb 800 am ndash 830 am Continental Breakfast Room W470a 830 am ndash 845 am Welcome by Mr Douglas K Woods President AMT ndash The Association For Manufacturing Technology 845 am ndash 945 am Economic Outlook Global Economic Outlook Improvements But Risks Remain Mr Gregory Daco Chief US Economist Oxford Economics

Mr Gregory Daco is Chief US Economist at Oxford Economics He is responsible for producing the US macroeconomic forecast using Oxford Economicsrsquo proprietary Global Economic Model Gregory tracks and forecasts high-frequency indicators and oversees the production of US research pieces on consumer markets housing business investment international trade labor markets inflation and fiscal and monetary policy Gregory is frequently cited in leading business publications such as the Financial Times the New York Times and the Wall Street Journal and he regularly appears on radio and television programs Prior to joining Oxford Economics Gregory was Director US Macroeconomics at IHS Global Insight He also worked in the Economic Affairs Department of the Belgian Embassy in Australia and the Permanent Representation of Belgium to the UN in Geneva Gregory is co-founder and president of the Boston Chapter of the National Association for Business Economics He holds a Master of Arts in economics from Boston University and a Master in Business Administration from Universiteacute de Louvain in Belgium

945 am ndash 1000 am Break 1000 am ndash 1100 am Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution

Mr Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO FORCAM Inc

Mr Franz Gruber is the Founder Chairman and CEO of FORCAM A former IBM Manager and a veteran SAP Executive Franz has over 25 years of practical experience working directly with automotive aerospace and defense and medical devices discrete manufacturing industries Within a decade of founding FORCAM in Germany he strategically expanded company operations globally to the United Kingdom Eastern Europe and the United States FORCAMs technology now monitors and optimizes the performance of over 50000 industrial assets globally in automotive aerospace and defense machinery medical devices and other industrial sectors Dr Mohamed Abuali is responsible for leading and managing the full life cycle of FORCAMrsquos shop floor technology at discrete manufacturing companies in automotive aerospace medical devices and oil amp gas Mohamed brings 15 years of

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

-4- Staff of AMT - The Association For Manufacturing Technology United States

Douglas K Woods President Steve Lesnewich Vice President - Global Services Knox Johnstone Global Services Director Malcolm Mason Global Services Director Mario Winterstein Global Services Director Patrick W McGibbon Vice President - Strategic Analytics Kate Fritz Strategic Analytics Director Jackie McFarland Industry Analyst Juan Guerra Industry Analyst Sebastian Herrador Industry Analyst

AMT - Beijing Representative Office China

Xingbin Li Chief Representative AMT - Shanghai Technology and Service Center China

Harry Xiao General Manager China Business Consultant to AMT Canada

Feng (Sean) Jiang Global Services Manager

AMT - Chennai Technology amp Service Center India

Arun Mahajan General Manager AMT ndash Monterrey Technology amp Service Center Mexico

Carlos Mortera General Manager AMT - CentralEastern Europe Liaison Poland

Hubert Sawicki Consultant - C amp E Europe AMT - Sao Paulo Technology Center Brazil

Achilles Arbex General Manager

GENERAL MANAGERSrsquo MEETING September 10 2014 800am ndash 100pm

McCormick Place West Hall mdash Rooms 470aampb 800 am ndash 830 am Continental Breakfast Room W470a 830 am ndash 845 am Welcome by Mr Douglas K Woods President AMT ndash The Association For Manufacturing Technology 845 am ndash 945 am Economic Outlook Global Economic Outlook Improvements But Risks Remain Mr Gregory Daco Chief US Economist Oxford Economics

Mr Gregory Daco is Chief US Economist at Oxford Economics He is responsible for producing the US macroeconomic forecast using Oxford Economicsrsquo proprietary Global Economic Model Gregory tracks and forecasts high-frequency indicators and oversees the production of US research pieces on consumer markets housing business investment international trade labor markets inflation and fiscal and monetary policy Gregory is frequently cited in leading business publications such as the Financial Times the New York Times and the Wall Street Journal and he regularly appears on radio and television programs Prior to joining Oxford Economics Gregory was Director US Macroeconomics at IHS Global Insight He also worked in the Economic Affairs Department of the Belgian Embassy in Australia and the Permanent Representation of Belgium to the UN in Geneva Gregory is co-founder and president of the Boston Chapter of the National Association for Business Economics He holds a Master of Arts in economics from Boston University and a Master in Business Administration from Universiteacute de Louvain in Belgium

945 am ndash 1000 am Break 1000 am ndash 1100 am Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution

Mr Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO FORCAM Inc

Mr Franz Gruber is the Founder Chairman and CEO of FORCAM A former IBM Manager and a veteran SAP Executive Franz has over 25 years of practical experience working directly with automotive aerospace and defense and medical devices discrete manufacturing industries Within a decade of founding FORCAM in Germany he strategically expanded company operations globally to the United Kingdom Eastern Europe and the United States FORCAMs technology now monitors and optimizes the performance of over 50000 industrial assets globally in automotive aerospace and defense machinery medical devices and other industrial sectors Dr Mohamed Abuali is responsible for leading and managing the full life cycle of FORCAMrsquos shop floor technology at discrete manufacturing companies in automotive aerospace medical devices and oil amp gas Mohamed brings 15 years of

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

GENERAL MANAGERSrsquo MEETING September 10 2014 800am ndash 100pm

McCormick Place West Hall mdash Rooms 470aampb 800 am ndash 830 am Continental Breakfast Room W470a 830 am ndash 845 am Welcome by Mr Douglas K Woods President AMT ndash The Association For Manufacturing Technology 845 am ndash 945 am Economic Outlook Global Economic Outlook Improvements But Risks Remain Mr Gregory Daco Chief US Economist Oxford Economics

Mr Gregory Daco is Chief US Economist at Oxford Economics He is responsible for producing the US macroeconomic forecast using Oxford Economicsrsquo proprietary Global Economic Model Gregory tracks and forecasts high-frequency indicators and oversees the production of US research pieces on consumer markets housing business investment international trade labor markets inflation and fiscal and monetary policy Gregory is frequently cited in leading business publications such as the Financial Times the New York Times and the Wall Street Journal and he regularly appears on radio and television programs Prior to joining Oxford Economics Gregory was Director US Macroeconomics at IHS Global Insight He also worked in the Economic Affairs Department of the Belgian Embassy in Australia and the Permanent Representation of Belgium to the UN in Geneva Gregory is co-founder and president of the Boston Chapter of the National Association for Business Economics He holds a Master of Arts in economics from Boston University and a Master in Business Administration from Universiteacute de Louvain in Belgium

945 am ndash 1000 am Break 1000 am ndash 1100 am Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution

Mr Franz E Gruber Founder amp CEO Dr Mohamed Abuali PhD COO FORCAM Inc

Mr Franz Gruber is the Founder Chairman and CEO of FORCAM A former IBM Manager and a veteran SAP Executive Franz has over 25 years of practical experience working directly with automotive aerospace and defense and medical devices discrete manufacturing industries Within a decade of founding FORCAM in Germany he strategically expanded company operations globally to the United Kingdom Eastern Europe and the United States FORCAMs technology now monitors and optimizes the performance of over 50000 industrial assets globally in automotive aerospace and defense machinery medical devices and other industrial sectors Dr Mohamed Abuali is responsible for leading and managing the full life cycle of FORCAMrsquos shop floor technology at discrete manufacturing companies in automotive aerospace medical devices and oil amp gas Mohamed brings 15 years of

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

manufacturing experience specializing in program and project management as well as research and development of shop floor technologies Dr Abuali has a PhD in Industrial Engineering through his studies at the Center for Intelligent Maintenance Systems (IMS) at the University of Cincinnati He is also a Project Management Professional (PMP) a Six Sigma Green Belt (SSGB) and a Certified Quality Engineer (CQE) FORCAM will be exhibiting at IMTS at Booth E-4929 and Dr Abuali extends an invitation to all to visit their booth to see interoperability in action

MTConnect Evolution of a Standard and Next Generation Interoperability Mr Courtney Hill Chairman amp President MTConnect Institute

Mr Courtney Hill retired from the General Electric Company after a 36-year career in manufacturing technology process development and commercialization Presently Courtney operates CJ Hill Consulting Services As the General Manager of Manufacturing Technology a global technology organization for GE Aviation Courtney was responsible for the development of next generation affordable manufacturing and inspection processes that support GE Aviationrsquos products and services worldwide Notable areas of recent technology development and commercialization include high performance structural composites additive manufacturing ceramic matric composites advanced robotic applications and digital manufacturing A graduate of Lehigh University Mr Hill currently serves as Chairman of the Board of the National Center for Manufacturing Sciences and the President and Chairman of the Board for the MTConnect Institute He has also served on the boards of TechSolve and the Edison Welding Institute

QampA Session 1100 am ndash 1115 am International Additive Manufacturing Award Dr Wilfried Schaumlfer Executive Director VDW ndash German Machine Tool Buildersrsquo Association Douglas K Woods President AMT ndash The Association For Manufacturing Technology 1115 am ndash 1145 am Open Forum

Open discussion on common issues pressing on the manufacturing technology industry markets and technological advances Examples of such issues bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment

Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

1145 am ndash 100 pm Reception amp Luncheon Room W470b

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

September 10 2014 2014 General Managersrsquo Meeting

Meeting Agenda 800 am - 830am Continental Breakfast 830 am - 845am Welcome by Mr Douglas K Woods 845 am - 945am Economic Outlook 945 am - 1000am Break 1000 am - 1100am Digital Manufacturing 1100 am - 1115am International Award for Additive Manufacturing 1115 am - 1145am Open Forum 1145 am - 100pm Reception and Luncheon

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

September 10 2014 2014 General Managersrsquo Meeting

Welcome

Mr Douglas K Woods President

AMT - The Association For Manufacturing Technology

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

September 10 2014 2014 General Managersrsquo Meeting

Economic Outlook

Mr Gregory Daco Chief US Economist

Oxford Economics

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global Economic Outlook Improvements But Risks Remain

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Global economy on a modest growth path

After a roller-coaster ride in early 2014 the US economy should steady around 3 upcoming quarters

Eurozone improving but risks remain (deflation Ukraine)

Japan on a modest expansion path with inflation trending up but questions around the resilience of the economy (tax hike)

Additional support from the government has fed through to growth in China and the economy is now expected to come close to the governmentrsquos 75 growth target for this year

Outlook for other emergers is less positive Russiarsquos economy continues to suffer from structural weaknesses and the repercussions of the conflict in Ukraine Brazil and India are showing no signs of picking up with structural deficiencies weighing on growth

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

US pulling ahead after slow start to 2014

6

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Eurozone outlook Caution slow recovery in progress

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Eurozone recovery still ongoing buthellip

8

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Strong disinflationary forces in the Eurozone

9

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Recovery will be steady rather than spectacular

10

-8

-6

-4

-2

0

2

4

6

1999 2002 2005 2008 2011 2014 2017 2020

Source Oxford EconomicsHaver Analytics

Europe GDP year

UK

Eurozone

Forecast

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Current situation not dramatic but full scale conflict hellip

11

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2008 2010 2012 2014 2016 2018

Eurozone GDP year

Source Oxford EconomicsHaver Analytics

BaselineForecast

Military conflict in Ukraine

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

China Outlook A bumpy landing

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

China growth to slow as rebalancing continueshellip

13

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipas debt piles up to worrying levels

14

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Real estate sector increasingly at risk

15

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Japan Slowing in spite of Abenomics

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Consumption tax weighs heavily on growth

17

2013 2014

-40

-30

-20

-10

00

10

20

30

Q3 Q4 Q1 Q2

Private consumptionFixed investmentNet exportsGovernment consumptionStockbuildingGDP

Japan Quarterly GDP contributions

quarterly contribution

Source Cabinet Office of Japan Haver Analytics

-3

-2

-1

0

1

2

3

4

1990 1995 2000 2005 2010 2015

Japan Fiscal policyChange in structural budget balance of GDP

Source International Monetary Fund Haver Analytics

ForecastExpansion

Contraction

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Emergers Modest growth with structural issues

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

19

Does it still make sense to talk about ldquoBRICSrdquo

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Some countries more vulnerable than others

20

1 Turkey 1182 S Africa 763 Brazil 404 Thailand 295 Russia 266 Malaysia 187 India 018 Poland 019 Mexico -2010 Indonesia -2511 Korea -8012 Philippines -9113 China -93

Oxford Economics Risk Scorecard

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Emerging markets will still outpace developed world

21

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

US Outlook The US is the cleanest shirt in the laundry basket

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

GDP on a roller-coaster but employment is better indicator

19

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Business surveys pointing to strong growthhellip

24

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Consumers are feeling more cheerfulhellip

25

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Wages expected to risehellip

26

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Key domestic risk is housing activityhellip

27

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipbut rising income and pent-up demand will help

24

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Energy prices remain relatively stable

29

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Fed to taper on but hold off on rate hikes

30

This image cannot currently be displayed

First rate hike in 2015Q2

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Manufacturing in focus

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Manufacturing activity is boominghellip

Further indication that GDP decline is due to unique factors

28

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipwith encouraging signs from leading indicators

29

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

US manufacturing has outperformed its peershellip

30

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

US has made substantial gains in competitiveness

35

Remarkable improvements

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Due to productivity gains amp modest wage growthhellip

36

Remarkable improvements

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Business sentiment in Europe remains weak while new orders have slowed

37

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

China amp Brazil have lost their edgehellip

38

Chinese wages have more than doubled over the past decade

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Key industries

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Loose credit and rising demand for autoshellip

36

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipshould support productionhellip

20

25

30

35

40

45

50

405060708090

100110120130140150160

Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14

2010=100 US$ bn

Output (LHS)

Orders (RHS)

Source Oxford Economics Haver Analytics

US Output and orders

3 month moving average

37

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipas will opportunities in the Emergers

38

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Revamp of car stock to be key long-term driver

Ageing vehicle fleet replacement as economy recovers ndash average age of vehicle on US roads in 11frac12 years

Rising fuel efficiency standards leading to replacement of clunkers

Rising fuels costs resulting in smaller cars

Automakers likely to increase new models helping drive investment

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Aerospace solid order books at the big twohellip

0

250

500

750

1000

1250

1500

1750

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source Company reports

Airbus versus Boeing Orders

Airbus

Boeing

Number of aircraft

Note 2014 annual estimate based on annualized data through July

40

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipwith APAC to drive long-term growth

Asia will account for almost 32 of global passenger traffic by 2017 compared to 28 in 2012

APAC to account for 40 of plane deliveries over next 20 years

US and Europe sales mainly for replacement of existing fleet

41

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Need for efficiency will provide demand supporthellip

A330 revamped for 15 efficiency improvement to compete with Dreamliner 25 new orders on day of announcement

Long-haul efficiency has some ways to go to maintain airline profitability

42

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Order backlogs remain high

0

500

1000

1500

2000

2500

3000

3500

1990 1993 1996 1999 2002 2005 2008 2011 2014

Deliveries

Orders

Number of aircraftAirbus amp Boeing Orders amp deliveries

Source Company reports and forecasts

43

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Weaker demand for metalshellip

44

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipand over capacity are weighing on priceshellip

45

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

hellipand discouraging investment

BHP Capital spending fell 32 in FY14 with another 8 fall expected next year

Rio Tinto Capital spending in FY14 cut faster than initially projected and further cut is budgeted for 2015

This is weighing on equipment makers

Caterpillar reported sales down 9 in the three months to July with sales to mining firms down 33 from the same period a year earlier

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Bumper crop has brought down grain prices

47

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

helliphitting margins and investment

Producers are facing higher costs due to the implementation of Tier 4 engines developed to comply with emissions standards

Weaker margins are leading to farmers cutting back investment spending

John Deere has posted a 5 yy decline in revenues with an 11 decline in its agricultural division

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Conclusions amp market implications

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Conclusion and business implications

54

bull US economy expected to gradually accelerate through 2014 with support from a dovish Fed

bull Europe expected to recover but more ECB action could be required

bull Chinese economy is gradually rebalancing but banking crisis cannot be discounted

bull Emerging markets quiet for now but structural issue unsolved

bull Geopolitical tensions in the Middle East and Ukraine are being monitored carefully

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

Thank you

Gregory Daco

Chief US Economist gregorydacooxfordeconomicscom

September 2014

September 10 2014 2014 General Managersrsquo Meeting

Digital Manufacturing

World Class Shop Floor Management Release 5 The Smart Factory Revolution Mr Franz E Gruber Founder amp CEO

Dr Mohamed Abuali COO FORCAM Inc

MTConnect Evolution of a Standard and

Next Generation Interoperability Mr Courtney J Hill Chairman amp President

MTConnect Institute

QampA Session

World Class

Shop Floor Management

The Smart Factory Revolution

Franz E Gruber

Founder amp CEO

Mohamed Abuali

COO

汉语

World Class Shop Floor Management

World Class

Shop Floor Management

The Smart Factory Revolution

Franz E Gruber

Founder amp CEO

Mohamed Abuali

COO

汉语

World Class Shop Floor Management

FORCAM 2014 Page 2

FORCAMlsquos Passion

FORCAM provides proven

manufacturing solutions to

Continuously Improve Productivity

To be the global solutions provider of

the best-in-class Manufacturing

Execution Systems

FORCAM 2014 Page 3

FORCAM ndash 2014 Best Practices Award by Frost amp Sullivan

Frost amp Sullivan

ldquoFORCAM is a plant production software

solution provider that understands and

supports Industry 40 needsrdquo

FORCAM 2014 Page 4

FORCAMrsquos Testimonials and Industry Leadership

FORCAM 2014 Page 5

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

6 B Bartke S Wagner IPI-2

Shop Floor Management Audi - FORCAM FIT 2011-

Bernhard Bartke - Director Components Manufacturing

Stefan Wagner - Director Gear Manufacturing

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 3

FORCAM ndash 2014 Best Practices Award by Frost amp Sullivan

Frost amp Sullivan

ldquoFORCAM is a plant production software

solution provider that understands and

supports Industry 40 needsrdquo

FORCAM 2014 Page 4

FORCAMrsquos Testimonials and Industry Leadership

FORCAM 2014 Page 5

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

6 B Bartke S Wagner IPI-2

Shop Floor Management Audi - FORCAM FIT 2011-

Bernhard Bartke - Director Components Manufacturing

Stefan Wagner - Director Gear Manufacturing

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 4

FORCAMrsquos Testimonials and Industry Leadership

FORCAM 2014 Page 5

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

6 B Bartke S Wagner IPI-2

Shop Floor Management Audi - FORCAM FIT 2011-

Bernhard Bartke - Director Components Manufacturing

Stefan Wagner - Director Gear Manufacturing

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 5

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

6 B Bartke S Wagner IPI-2

Shop Floor Management Audi - FORCAM FIT 2011-

Bernhard Bartke - Director Components Manufacturing

Stefan Wagner - Director Gear Manufacturing

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

6 B Bartke S Wagner IPI-2

Shop Floor Management Audi - FORCAM FIT 2011-

Bernhard Bartke - Director Components Manufacturing

Stefan Wagner - Director Gear Manufacturing

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

7 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

bull Collection and recording of Operational Data via a database

(ex Machine States and State Changes)

Machine

Operator

Production Manager

Technical Assistant IT

Plant

Manager

Team Leader

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

8 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Interfaces

Time

Objectivity of Process Data

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

9 B Bartke S Wagner IPI-2

Current Status Baseline ndash without Shop Floor Management

Need for Continuous Improvement

bull Objective Information and Communication ndash across ALL levels

bull Transperancy and Visualization - Online

bull Real-time availability of operational data ndash Live Reports

bull Measurable increase in Plant Efficiency (OEE)

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

10 B Bartke S Wagner IPI-2

Shop Floor Management ndash Realtime bdquoANDONldquo Visualization

bull Web-based Interface Anywhere Anytime Access

bull Real-time Production Status Visualization

In Production

Overflow

Stoppage

Organizational

Stoppage

Idle (Pause)

Tool

Problem

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

11 B Bartke S Wagner IPI-2

Shop Floor Management Reporting ndash Hierarchical Status Diagrams

bull Reporting for Machines Groups Lines or the whole Plant

Technical

Stoppage In Production

Organizational

Stoppage Pause Overflow

Stoppage

Tool Problem In Setup

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

12 B Bartke S Wagner IPI-2

Audi Production System (APS)

Leadership Communication

bull Process Control

Standards

bull In Processes

bull Im Products

bull In the Organization

Learning Organization

bull Employee Development

bull Problem-Solving

bull CIP Culture

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

13 B Bartke S Wagner IPI-2

Shop Floor Management Process Control Panel on the shop floor

OEE Trend

(Day Week Month)

Measures

Quality

Process Control

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

14 B Bartke S Wagner IPI-2

OEE - Yesterday

Availability Trend

OEE ndash Last Week

OEE ndash Last Month

Naoki Nojiri IPI-25 BDE-Ist Stand 05042011

Shop Floor Management Process Control Panel on the shop floor

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

15 B Bartke S Wagner IPI-2

Shop Floor Management Management Cockpit

Planned vs Actual

(shift)

Top problems

(challenges)

OEE ndash Last Week

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

16 B Bartke S Wagner IPI-2

hellipand what have we achieved

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

17 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development suspension components (OEE Overall Equipment Effectiveness)

Radtraumlger

Start Shop Floor Management with

FORCAM +10

_

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

18 B Bartke S Wagner IPI-2

2008 2009 2010 2011

OEE Development (20+ Increase in OEE in AUDI Stamping Facilities) (OEE Overall Equipment Effectiveness)

Radtraumlger

Start SFM +20

_

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Our Beliefs

Respect

Collaboration

Excellence

Integrity

Community

Oct 30th 2013

Lean with Shop Floor Management BorgWarner Turbo Systems Rzeszow

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Operator FactoryFrameworktrade Worker Client- Book On

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Operator Downtime Reasons

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Operator Actual versus Target Performance

TargetPlanned

Throughput

Actual

Performance

Opportunity for

Improvement

Actual

Throughput Machine

Data

ERP

Data

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Supervisor Gantt Status

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

visualzation

Top 5

downtimes

Cip Top 5

Production

orders

Real data

history

Supervisor Cockpit machine

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Supervisor Shift Book

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Supervisor Operational Status Reports

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Supervisor Machine-Shop Visualisation

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

Shop Floor Management

Optimizing productivity by using MES at GE Jenbacher

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

29 GE Title or job number

9102014 copy by GE Jenbacher

Integration of order data with machine data (ODC + MDC)

bull Plug-Ins for heterogeneous machine data collection

bull Configuration of user interface

bull Integration of machine coordinated independently by GE

bull Real-time data

bull Seamless integration

bull Normalisation of machine signals

bull Linked with status information

Machine Connector via PlugIn

Wireless

CNC

Heidenhain

TNC

GE

Fanuc

CNC

Siemens

840D

MTConnect PLC

S5S7

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

30 GE Title or job number

9102014 copy by GE Jenbacher

Production controlling Reporting Transparency in real-time through detailed visualization of TPM methods to

uncover weaknesses and improvement potential

bull Transparency plant-wide in real-time through web technology

bull Coherent key figures (OEE NEE TEEP)

bull Large selection of predefined reports with different views workplace order material personnel

bull Creation of customized reports with the report editor

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

31 GE Title or job number

9102014 copy by GE Jenbacher

Economic Benefit

________________________

________________________

________________________

________________________

________________________ 40

50

60

80

2011 2012 2013 2014

Performance rate

in

Year

55

62 67

70

73

Example cylinder head manufacturing Performance rate

proportionally increased by 33 (from 55 to 73)

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 32

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 33

So What is Industry 40

ldquoThe virtual IT world and the real life manufacturing world are growing every closer

together Using Cyber Physical Systems and the internet to connect humans machines

and software many experts see the first step towards the fourth industrial revolutionrdquo

Prof Dr Dr Wolfgang Wahlster German Institute for Artificial Intelligence (DFKI)

Industrial Ethernet is the latest stage of industrial

development and represents the 4th Industrial Revolution

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 34

A History of Computer-Aided Manufacturing

MES

FactoryFrameworktrade

MES

CIM

LAN

Web Services

LAN

Fieldbus

Method

Connectivity

Technology

Lean

Manufacturing

Shop Floor

Management CIM

CIM (Computer Integrated Manufacturing)

bull Integrated system architecture relying on a shared database initially failed due to past state of development and

acceptance of the technology

MES (Manufacturing Execution System)

bull Integrated system architecture relying on a shared database that as opposed to CIM does not rely on an isolated

solution MES technology employs higher server performance and interlinks production facilities via the internet (W-LAN)

Interfaces and vertical integration however prove to be a difficult hurdle to overcome

SFM (Shop Floor Management)

bull Industrial internet is proving to be the way to achieve the Smart Factory SFM can support the factory of the future today

As manufacturing processes have become more and more complex SFM has to be more and more flexible Obstacles

such as heterogeneous machine connection global facility benchmarking language and time zone barriers are resolved

The system is connected globally and available at any time any where on all smart devices Web technology CEP and in-

memory computing process data in real-time and give us the basis for true excellence in production

1970 1980 1990 2000 2020 1960 2010

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 35

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industrial Internet Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 36

Shop Floor Management for the Smart Factory

Shop Floor Management (SFM) is the strategy for continuous optimization on the shop floor The goal is

improving factory productivity by eliminating errors and waste

Prerequisites

1 Leadership

Management and team leaders have to be role models in introducing a continual

improvement process (CIP) from top to bottom on the basis of the correct KPIs

2 Technology

A high-performance solution will supply real-time production data to the ERP-system

(Enterprise Resource Planning) The actual machine and production status is visualized by

the system ndash this is the first and most important step towards sustainable increases in

productivity The success of the right SFM technology depends on the seamless and

certified integration with leading ERP solutions such as SAP

If you cannot measure it you cannot improve it

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 37

37

Characteristics of the Industrial Production of Tomorrow

Strong customization of products

Highly flexible large-scale production

Integration of customers and business partners in value creation

processes

Expansion of production through high-quality after-sale services

Features of a Smart Factory

Embedded software systems communicate with each other via the

Internet

Available data and services globally

Networking across all digital channels (wireless wired local global)

Data virtually evaluated for real production optimization

Human-machine interfaces (touch screen voice gesture control)

Smart Factory

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 38

World Class Shop Floor Management

FORCAM Release-5

The Smart Factory Revolution

1

Shop Floor Management for the Smart Factory

Smart Factory Technology

2

3

Industry 40 Background and History

Our Mission

To help our clients

achieve distinctive

lasting and substantial

improvements in

shop floor

performance

Smart Factories at AUDI BorgWarner GE Power

4

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 39

39

Web Portal

Worker Client

(Touch)

Web Portal

Office Client Web Portal

Smart Devices

Real Time

Shop Floor Management

via Cloud Global Web Portal

eg China

Mazak Fanuc Siemens Heidenhain etc

FORCAMlsquos Release-5 Technology Highlights

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 40

100 Web-based Technology

100 Web-Technology

The system can be accessed from any web browser Access the software from touch

terminals PCs tablets machine controller HMI or any mobile device - the possibilities are

endless By employing state-of-the-art JAVA programming the software is both platform and

operating system independent

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 41

Time-Zone Independence ndash All Clocks Are In Sync

Release-5 is ready for global deployment ndash the key to this is time zone independent

reporting All data from different time zones is collected and adjusted to compensate for

time shifts ensuring that all clocks in all your global factories are always synchronised

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 42

BIG DATA Support with In-Memory and CEP

Live Cache means high performance In-Memory Computing offers high speed

processing of Big Data Complex Event Processing (CEP) the proven technology for

analyzing complex strings of events and circumstances provides real time data

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 43

Multi-Lingual (including Unicode)

Release-5 is ready for global deployment with any language including Unicode support

Languages can be individually configured online for each worker terminal and location

Language settings can be easily adapted for global benchmarking and reporting

汉语 English

German

Etc

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 44

44

Flexible Machine Data Collection

Real-Time Integration to CNCs and PLCs

Plug-In Concept for All Machine Interoperability (MTConnect)

Configuration via Web Interface

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 45

TECHNOLOGY Vertically-Integrated Architecture for OEE

Machine ControlsPLC Integration

Connetion of Heterogenous PLClsquos

X X

(Bit 0-7)

Formula

Operation State Mapping Engine Signal Normalization

Generation of operation states

based on configurable state engine

Visualization OEE Web-based OEE Visualisation

Performance Measurement amp Benchmarking

= NC Alarm

= Prog Run X

X

Signal Acqusition

Memory Mapping PLCs

ERP Integration Planned versus Actual Comparision

Have I reached my target today

1

2

3

4

Siemens 840D Siemens S5S7 Allen Bradley OPC OPC-UA Fanuc MAZAK MTConnect

OEE Metric ldquoUtilizationrdquo

OEE Metrics ldquoPerformance Qualityrdquo

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 46

ABOUT FORCAM - A Technology Leader in SFM

Shareholder

SAP Founder Dietmar Hopp

Web Technology

SFM Evaluations

Founding

FORCAM USA

Global Roll-Out (gt 90 Plants)

Stamping Plants

Productivity + 20 within 12 months

SAP Spin Off

Research

Partnership

Innovation

Award

15000 Monitored Assets

Release

50

+ 12 Efficiency

Increase

within 6 Months

Machine-Connector

400 Heterogeneous

Machines

Press Plants

Asset worth

US$ 25 Billion

Founding

FORCAM UK

SME Business

+ 25 increased operating

time and availability of all facilities

New Plant

Muumlnchsmuumlnster

Press Plant

Leipzig amp China

Frost amp

Sullivan

2014

Award

FORCAM 2014 Page 47

Download FORCAMrsquos White Papers

httpwwwforcamcomfileadminpdfDownloadFORCAM_White_Paper__June_2013_pdf

httpwwwforcamcomfileadminpdfDownloadCase_Study_Machine_Connection_engpdf

FORCAM 2014 Page 48

Federal Ministry of Research (Germany) httpwwwbmbfdede19955phphilite=Zukunftsprojekt

Fraunhofer Institute of Production Engineering and Automation (Stuttgart) httpwwwipafraunhoferdeEnergieeffizienz_in_der_Produktion18580html

Fraunhofer Institute IAO study Production Work for the Future ndash Industry 40 httpwwwproduktionsarbeitdecontentdamproduktionsarbeitdedocumentsFraunhofer-IAO-

Studie_Produktionsarbeit_der_Zukunft_-_Industrie_40pdf

VDA-Movie httpwwwyoutubecomwatchv=1dMSXM9PHfo

VDI-Referece MSR Technologies httpwwwforcamdeindexphpid=190

Wikipedia httpdewikipediaorgwikiIndustrie_40

REFERENCES

49 B Bartke S Wagner IPI-2

FORCAM Inc

250 E 5th Street

Cincinnati OH 45202

+1 (513) 878-2780

wwwforcamcom

CALL TO ACTION Join the MTConnect Initiative

Demos at FORCAMrsquos Booth This Year

Live Machine Controllers (Okuma ldquoMTConnectrdquo amp FANUC ldquoFOCASrdquo)

Mobile Apps for Multi-site Global OEE Comparisons in Real-time

Predictive Maintenance Module for the Advanced Factory

Join us

on Wed Sept 10th 130pm for ldquoSmart Factory Technologyrdquo

Presentation E-4929

MTConnect Evolution of a Standard and Next

Generation Interoperability

CJ Hill Chairman amp President

MTConnect Institute cjhillmtconnectorg

OUR PROCESSES ARE SPEAKING

Are you listening

1920 Factory of the Future

What will 2020 Look Like

Connecting Manufacturing

OUR PROCESSES ARE SPEAKING

Are you listening

1920 Factory of the Future

What will 2020 Look Like

Connecting Manufacturing

1920 Factory of the Future

What will 2020 Look Like

Connecting Manufacturing

Connecting Manufacturing

bull Disrupting hellip ndash Process Development ndash Discrete Manufacturing ndash Supply Chain Management ndash STEM

Before

bull Proprietary connectivity bull Intensive non-recurring engineering cost bull Innovation headwind bull Experience driven manufacturing optimization

Data is locked up

Connected

bull Open connectivity bull Sustainable engineering support and

improvement bull Innovation accelerator bull Data driven manufacturing optimization

MTConnect History

bull October 2006 ndash The Watershed bull Interoperability and connectivity are key bull Open standard model bull Community driven innovation model

ndash Implementers and Technical Advisory Group (TAG) Members

ndash TAG Working Groups ndash User Group ndash MTConnect Board of Directors

MTConnect Structure

Attributes + Data hellip Applied to Machines amp Manufacturing Systems

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Before

bull Proprietary connectivity bull Intensive non-recurring engineering cost bull Innovation headwind bull Experience driven manufacturing optimization

Data is locked up

Connected

bull Open connectivity bull Sustainable engineering support and

improvement bull Innovation accelerator bull Data driven manufacturing optimization

MTConnect History

bull October 2006 ndash The Watershed bull Interoperability and connectivity are key bull Open standard model bull Community driven innovation model

ndash Implementers and Technical Advisory Group (TAG) Members

ndash TAG Working Groups ndash User Group ndash MTConnect Board of Directors

MTConnect Structure

Attributes + Data hellip Applied to Machines amp Manufacturing Systems

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Connected

bull Open connectivity bull Sustainable engineering support and

improvement bull Innovation accelerator bull Data driven manufacturing optimization

MTConnect History

bull October 2006 ndash The Watershed bull Interoperability and connectivity are key bull Open standard model bull Community driven innovation model

ndash Implementers and Technical Advisory Group (TAG) Members

ndash TAG Working Groups ndash User Group ndash MTConnect Board of Directors

MTConnect Structure

Attributes + Data hellip Applied to Machines amp Manufacturing Systems

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

MTConnect History

bull October 2006 ndash The Watershed bull Interoperability and connectivity are key bull Open standard model bull Community driven innovation model

ndash Implementers and Technical Advisory Group (TAG) Members

ndash TAG Working Groups ndash User Group ndash MTConnect Board of Directors

MTConnect Structure

Attributes + Data hellip Applied to Machines amp Manufacturing Systems

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

MTConnect Structure

Attributes + Data hellip Applied to Machines amp Manufacturing Systems

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Going Forward

bull Building Out the Standard ndash Refining existing body of knowledge ndash Accommodating a broader set of manufacturing

systems ndash Exercising the existing community user experience

and feedback ndash Developing the strategic roadmap

bull Building Out the Community

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

September 10 2014 2014 General Managersrsquo Meeting

International Additive Manufacturing Award

Dr Wilfried Schaumlfer Executive Director

VDW

Mr Douglas K Woods President

AMT

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

International Additive Manufacturing Award

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Purpose

To recognize innovations in additive manufacturing for industrial applications including the design of systems processes materials new applications data generation and metrology

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Award Judging Panel Associations bull Tim Shinbara AMT minus The Association For Manufacturing Technology bull Dr Wilfried Schaumlfer German Machine Tool Buildersrsquo Association (VDW)

Media bull Ken Fouhy VDI Verlag GmbH bull Pete Zelinski Gardner Business Media Inc

Academia bull Prof David Bourell University of Texas ndash Austin bull Prof Reinhart Poprawe Fraunhofer Institute for Laser Technology Aachen

Users bull Dr Jens Ertel BMW AG bull Greg Morris GE Aviation bull Capt Gerald Grant Walter Reed Medical Center

Legal bull John Hornick Finnegan Henderson Farabow Garret amp Dunner

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Criteria

Specific assessment criteria are to maintain precision reproducibility and objectivity for the assessment of international submissions for the award bull Technological innovativeness bull Benefits for industry environment and

society bull Cost effectiveness bull Form of depiction presentation bull Reality test in an industrial application

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Criteria Weighting Assessment criterion Weighting Technological innovativeness 55 Progress of knowledge with respect to the state of the art (25)

Technological quality and creativity (15)

Distinguishing characteristic compared with previous solutions (15)

Benefits for industry environment and society 20 Technological benefits in applications (10)

Environmental compatibility and properties of social relevance (10)

Cost-effectiveness 20 Economic benefits for end-consumers and end-users (10)

Demand situation sales markets (10)

Form of depiction presentation 5 Reality test in an industrial application Implementation implementability

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

Award Results

bull The 20 applications with the most points will be presented to jury

bull The panel will select the final award

winner

bull Winner will receive a $20000 cash prize plus $80000 media package to promote development

bull Award will be presented annually alternating between IMTS and METAV

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

September 10 2014 2014 General Managersrsquo Meeting

Open Forum bull Machine interoperability standards bull Additive3D printing as a developing technology amp market bull Advances in trade talks (Transatlantic Trade amp Investment Partnership Trans-Pacific Partnership etc) bull Changes in trade shows bull ldquoGlobal Forecast for Machine Toolsrdquo by Oxford Economics

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13

September 10 2014 2014 General Managersrsquo Meeting

Reception amp Luncheon

Room W470b

• IMTS2014GeneralManagersMeetingpdf
• • Attendee List
  • Agenda amp Bios13
  • Economic Outlook
  • World Class Shop Floor Management
  • MTConnect Evolution of a Standard and Next Generation Interoperability13
  • International Additive Manufacturing Award13