This document discusses how FORCAM's Shop Floor Management (SFM) solutions help manufacturers optimize productivity and efficiency through real-time data collection and analysis. Key points include: - FORCAM's SFM systems connect to machines to collect real-time data on performance metrics like Overall Equipment Effectiveness (OEE). - This data provides transparency into operations and identifies improvement opportunities on the shop floor. - FORCAM helps companies implement Continuous Improvement Processes and "lead by OEE" to drive ongoing productivity gains. - Case studies show FORCAM customers increasing OEE by 10-20% within the first year of using the SFM system.

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WHITE PAPER
www.forcam.com
We Deliver Results In
Productivity
Lead by TRUE OEE
Smart Factory Revolution FORCAM FORCETM

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WHITE PAPER
Lead By True OEE
Shop Floor Management Principles
Planned vs Actual
CIP Organisation
Shop Floor Cockpit
Smart Factory
Innovations
About FORCAM
Success Stories
Contents
We Deliver Results In Productivity
FORCAM develops solutions and concepts for the Smart Factory. Recognized as the
pioneer of the “Industry 4”, we have the courage to create new technologies and
thereby define standards for the future. We help manufacturers to remain competitive
by achieving sustainable gains in productivity and optimize resource efficiency.

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Manufacturing is getting more and more complex: Products can be individualised,
production cycles are shorter and global competition stronger than ever before.
To meet these rising demands a manufacturer needs to be as efficient and as
transparent as possible. Productivity is the crucial factor for staying competitive
and securing work places.
Manufacturing and the Internet will soon be inseparable.“
Apart from real-time visualisation, Shop Floor Management systems deliver
tangible, objective data from all production assets. In order to make
improvements on the shop floor, you need these data in the form of key
performance indicators (KPIs) to use as a benchmark. Also reviewing current cycle
times and targets makes sense. Users are often surprised by automated data, as
these can be considerably different from their expectations.
Reliable data and KPIs such as Overall Equipment Effectiveness are the first step.
But how can these be leveraged to reach higher productivity and make the
improvements necessary?
Lead by TRUE OEE
How can real-time data be used?
Where are the points for improvement?
How can OEE be used as a management tool?

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2. Management Tool
ERP systems are not suited to support the CIP organization. Real time ERP data
combined with machine data is required to visualize the real status of the shop
floor and to calculate a TRUE OEE. Planned vs. Actual Performance Analysis is
the key element of Shop Floor Management.
1. Leadership Principle
Shop Floor Management is a top-down process. Management must be trained to
incorporate the CIP culture and to lead by OEE.
Shop Floor Management Principles as a Basis
for „True OEE“
Traditional Method Advanced Shop Floor
Management
OEE isn‘t used as KPI as
management tool.
No online visualisation.
Manual data collection
(Lean Dogma: Data collected by
machine operators)
Far from Reality
Management Style:
”Management by Remote Control“
Reliable, automated and objective
performance analysis.
Transparency through real-time
visualisation and all KPIs at a
glance.
Based on reality
Management Style:
”Management by Process Improvement“
M a n a g e m e n t
T o o l
L e a d e r s h i p
P r i n c i p l e

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True OEE is driven by Planned vs. Actual performance
information collected in real time
The Lean Philosophy empowers the shop floor operator. The operator needs to
know what the supply chain (ERP) expects from him such as when to start an order/
operation and what target must be fulfilled. Planned vs. Actual performance
information in real time will give the operator immediate feedback about the
current performance of his manufacturing workplace in order to take immediate
measures in the case of a deviation from target.
How are you currently measuring shop floor performance?
Planned-Actual Comparison
Traditional Method Advanced Shop Floor
Management
R E A L - T I M E
R E L I A B L E
D A T A
M A N U A L
C O L L E C T I O N
Are there discrepancies between planned and actual set-up times?
Are there discrepancies between planned and actual cycle times?
How are you currently monitoring and tracking planned output and
what is acutally produced?

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Your Recipe for Success - holistic Shop Floor Management that effectively combines the
most advanced Shop Floor Management System with the Lean Management philosophy.
Measuring TRUE OEE - what you cannot measure you cannot improve
Adopting Lean Management principles and leading by OEE
Creating a Continuous Improvement Process (CIP) culture with closed-loop
communication
Delivering the right information to right people at the right time
Delivering planned vs. actual performance information real-time to shop floor
operators
Establishing a PDCA (Plan-Do-Check-Act) cycle with actions and measures
Setting regular TRUE OEE goals for continuous improvement
Recipes for Success
Shop Floor Management

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Advanced Shop Floor Management (SFM) technology must
support all organizational roles within the CIP Organization.
All manufacturing roles are supported by advanced shop floor management
technology with no exceptions, from the machine operator to maintenance to the
plant manager.
Continuous Improvement Process (CIP Organisation)
Foreman
Production Planning
Plant Manager
Overall Plant Performance
Maintenance
Hit lists
Drill-down analysis
Manufacturing Engineer
Production Data
Planned vs. Actual
Worker
Work Orders
Work Instructions
Machine
CIP Organisation

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Periodic CIP Meetings, weekly and monthly, will utilize real time Shop
Floor data to monitor, analyze, and set goals and targets for:
Stoppages / Downtimes
Production Flow
Organization
Quality
Advanced Shop Floor Management (SFM) technology offers closed
loop CIP communication by delivering the right information to the
right role at the right time
CIP Communication
Tools Optimizations
Logistics
Worker Orders / Routing
Current Turnaround /
Productivity Values

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Shop Floor Cockpit
Example at Audi Component Manufacturing

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Cross-level OEE
OEE monitoring from machine-level, cell-level up to
cross-plant OEE monitoring.
<
Plant 2 Plant 3Plant 1
Cell 2Cell 1
Machine 1 Machine 2 Machine 3 Machine 4 Machine 5
Multi-
Plant
Plant
Hall
Cell
Group
Machine
72,0% 60,0% 70,0% 40,0% 55%
66,0% 55,0%
66,5% 49,5% 51,7%
60,5%
60,5%
66,0%

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World Class Shop Floor Management
Create A Transparent Factory
Planning and Production are now synchronized
“Today, companies need resource efficiency
in processes and in manufacturing “,
Franz Gruber, CEO FORCAM
Everything has to intertwine in a way that errors and waste can be recognized
immediately and eliminated sustainably.
The FORCAM technology complements standard ERP-software on the planning level
(top floor) using objective performance data coming directly from all factory assets
(shop floor) – from one single machine to multiple plants worldwide. The efficiency
factor of standard ERP-software is enhanced due to the real-time data capture by
FORCAM.
The SMART FACTORY Starter Kit is a way to test Industry 4.0 technologies.
Deployment is fast, cheap and risk-free, and can deliver increased machine
availability by 10% in the 3 month test period.
SMART FACTORY
Measuring and optimizing the performance of
manufacturing plants anywhere, anytime
The real-time information provided by FORCAM
can be accessed through mobile gadgets
including smartphones and tablets.

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State-Of-The-Art Shop Floor Management
Flexible web-based connectivity of a diverse number of machine controls
FORCAM‘s Factory Framework™ solution is technologically leading Manufacturing
Execution System (MES). It enables improvement processes on all levels of the
production. Factory Framework™ connects, collects, and standardizes real-time data
from most different machine controls. For every production level, the signals
provide comparable web-based operational states of machines and plants
(production, malfunctions, and downtimes).
Innovations

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State-Of-The-Art Shop Floor Management
Innovations
Results: Fast reaction with latencies in the millisecond range and high throughput.
Rule-based approach enables flexible, user-defined functions. Global deployment
potential with Unicode language support and centralized server architecture

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Overall Equipment Effectiveness (OEE)
Shop Floor Management (SFM) is a strategy designed for the continuous
optimization of the plant availability by eliminating errors and waste. The most
important key figure to measure the performance is the OEE – Overall Equipment
Effectiveness.
As key performance indicator, OEE
is the result of three factors:
o Availability
o Performance
o Quality
OEE is the most important figure (KPI) to
implement the shop floor management strategy.
Increasing the OEE can help speed up the ROI on
your Shop Floor Management system and even
your production assets.
OEE - Three crucial performance metrics: Availability,
Productivity, Quality
SFM Technology

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MARKET Discrete Manufacturing Industries
PRODUCT Shop Floor Management (& Consulting)
TECHNOLOGY FORCAM FORCETM
CUSTOMERS (amongst others) Audi, BMW, Daimler, BorgWarner, MTU
Aero Engines, Hilti, Mann+Hummel, WEIR Minerals
BENEFITS > Significant improvements in productivity (up to 20%)
> Accelerated Return on Investment (ROI 1 Year)
> Optimized Return on Capital Employed (ROCE)
> Improved transparency leading to lower costs
> Higher energy and resource efficiency
MANAGEMENT Former SAP Manager founded FORCAM in 2001.
Strategic investor Dietmar Hopp
Offices > Ravensburg, Germany (HQ)
> Switzerland
> England
> USA
> China
> Poland
With FORCAM customers regularly achieve increases in
productivity in terms of OEE of 20% or more
FORCAM at a Glance

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o Factory of the Year 2007, 2008, 2012 und 2013 (by A.T. Kearney)
o Delivering monitoring and optimization of more than 14,000 machine tools
o Audi Stamping Plants + 20% increase in TRUE OEE within 12 months
o Audi Components Plants + 10% increase in TRUE OEE within 12 months
o
o Exceeding expectations with unique shop floor management strategy
o 4.3% increase in TRUE OEE within 6 months
o 12% increase in TRUE OEE within 6 months
With FORCAM technology, elite companies have increased productivity
by up to 20% within the first year, measured by TRUE Overall Equipment
Effectiveness (OEE).
Success Stories

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