Challenges to Profitability

• Cost of Labor• Cost of Machinery• Cost of Materials

• Device Tax/Business Tax• FDA Regulations• Product Traceability

Current 20% Increased 20% Increase Incr. Sales &Operation Productivity, In Sales, Productivity,

Fixed and Variable Overhead 20 Presses 16 Presses 4 Presses Total

All Overhead $3,780,000 $3,742,500 $3,742,500

Over-Absorbed Overhead $718,500 $718,500

Labor20 operators x $10/hr x 3 shifts x 40 hr/wk x 50 wk/yr $1,200,00016 operators x $10/hr x 3 shifts x 40 hr/wk x 50 wk/yr $960,000 $960,0004 operators x $10/hr x 3 shifts $240,000 $240,000 x 40 hr/wk x 50 wk/yr

Material @ 34.3% of sales*Resin - 20 presses $2,875,657Resin - 16 presses $2,875,657 $2,875,657Resin - 4 presses $575,131 $575,131Total Manufacturing Costs $7,855,657 $7,578,157 $1,533,631 $9,111,788

Pre - Tax Profit @ 6.3%*Profit on 20 presses $528,182Profit on 16 presses $805,682 $805,682Profit on 4 Presses $105,637 $105,637

Total Sales $8,383,839.00 $8,383,839.00 $1,639,268 $10,023,107.00

ProfitProfit on 20 presses @ 6.3% $528,182Profit on 16 presses @ 6.3% $805,682 $805,682Profit on 4 presses @ 6.3% $105,637 $105,637Over-Absorbed Overhead $718,500 $718,500Total Profit $528,182 $805,682 $824,137 $1,629,819% Profit 9.60% 50.30% 16.30%

Profit Increase 53% 209%

* Material and profit ratios taken from SPI's "Financial and Operating Ratios" report, 1999.

Source: Robert A. Baird Associates

The Effect of Productivity & Sales IncreasesOn a 20-Machine Molding Plant

The Answer is Real-Time Data and Integrated Systems

Real-time Production Data

Shopfloor Data Input

Integrated Documentation

ERP Integrated Scheduling

Pareto/Pie Charts

Machine Process Traceability

Part/Process Synchronization

Bar Code LabelsUser DefinedProduct TraceabilityForms including UDI, AIGA, GLIAMulti-SizesReal-TimeStandard Printers

MES System Suppliers

• Integrators—GE Intellution, Rockwell Automation, WonderWare (designed to your specs. Expensive.)

• Home Grown—(IT depts. Long timeline, expensive, lack machine and process knowledge)

• Off the Shelf– SYSCON-PlantStar (flexible, lower cost, some custom engineering available)

PlantStar ResultsWe have the same number of Supervisors today on 74 machines that we had on 24 when we implemented the system—Dir. Of Plastics, UT Medical Device Molder

PlantStar helped us increase OEE by 13% across 200 machines-VP Manufacturing, Hunter Industries

PlantStar ResultsWe reduced internal and external corrective action requests by using PlantStar with $400k in gains in 5 months—Corp. VP Automotive Supplier

I can see all my machines in all seven plants real-time from my desk and help my managers do a better job—CEO EVCO Plastics