2009 Packaging Automation Survey Summary

1. 2009 Packaging Automation Survey Summary Dave Bauman OMAC Technical Director

2. About the Survey • Joint effort of • OMAC Packaging Workgroup • Packaging World Magazine • PMMI • Conducted online in June/July 2009 • 287 Responses • 162 buyers/users • 125 suppliers • Similar to a survey done in 2006

3. Company Size (Buyer/User) Good distribution across different size companies

4. What Region Are You Located In (Buyer/User) Survey respondents predominantly US/Canada

5. How Are Your Packaging Lines Connected Together Control-wise? - This is similar to the results in 2006 - Of the (41) networked together (8) OEE >80% (19) OEE 60-80%

6. What % of Packaging Lines haveAutomatic Data Collection - Greater than 75% went from 16.5% (2006) to 24.8% (2009) - Over 75% users don’t do DAS on majority of packaging lines

7. What is Your Average OEE onYour Packaging Lines? Of (22) with OEE > 80% (27.5% of respondents) (10) had > 75% packaging lines w/ DAS (7) had 50-75% packaging lines w/ DAS Of (4) with OEE < 40% all (4) had < 25% packaging lines w/ DAS

8. (29) that answered “yes” • (10) > 80% OEE • (13) 60-80% OEE (16) >75% lines w/ DAS (5) 50-75% lines w/ DAS Are Your Packaging Lines Integrated with Your ERP Systems? • Those answering “yes” jumped from 7.0% (2006) to 25.2% (2009)

9. OMAC Packaging Standards • Do You Specify any of the OMAC Packaging Standards • 31.7% answered yes in 2009 • 20.1% answered yes in 2006 • Benefits Achieved with the OMAC Standards • Standardization • Standard and consistent code & tags • Standard Information across all lines and sites. Easy of integration with vendor applications • Standard operation and easier integration of machines. • Standardization • standardization • Standardization for integration • Standardized spare parts, our operators and maintenance personnel are familiar with particular manufacturers, less training needed. • Std. • Universal Programming Std Easy Debugging • Integration • Improved communications between equipment. • Interfaces with our systems that supply data to workstations. • Communication between equipment and supervisory control system • Standard operation and easier integration of machine

10. Highest Priority Packaging Automation Issue You Face Today? • Efficiency/reliability • Flexibility • Integration •Increase efficiencies • Availability • communicating efficiencies and tracking cost • Efficiency • Efficiency and part handling of difficult parts • having in house people, trained to keep the machines function at a high rate without downtime • identifying the root cause of system downtime impacting production • It depends on the day; At this time we are trying to implement MES on the bottling room floor • OEE • OEE integration with MES • Productivity • Quality and reliability • Reduce downtime • Reliability and throughput • Reliabilty and meeting specification • Total through put of equipment on hand with capital • trying to keep the lines running. • Changeovers • flexibility (lack of), obsolescence • Flexibility to change over lines quickly from one run to another • Flexibility to package many different products • quick changeover for multiple products • To reduce people but maintain flexibility for future business needs • Versatility • Vertical integration to information systems • Connecting everything • Higher levels of automation and intgration • Total integration from feeding the Pkg. materials to end of line outer pkg. in cost effective manner

11. Company Size (Supplier) Good distribution across different size companies

12. What Region Are You Located In (Supplier) Survey respondents predominantly US/Canada

13. What % of Packaging Machines YouSell Are Designed for DAS System? >75% packaging machines w/ DAS is only 17.9% (2009) up from 14.9% (2006)

14. OMAC Standards (Supplier) • 28.7% answered yes in 2009 to using OMAC standards • Up from 24.1% in 2006 Not familiar with them 31.6% in 2009 down from 44.3% in 2006

15. Major Benefits You Achieve by Implementing OMAC Standards on Packaging Machines (Supplier) Customer need is the top answer

16. What Is Highest Priority PackagingIssue You Face Today (Supplier)? • Cost • Reliability COST Cost / price cost of materials Cost vs. practicality Costs flexible and cost effective automation system Keeping costs down - everyone is either not spending or looking for least expensive changeover time and package component quality affecting machine uptime efficiency and performance. Efficiency in time, product's quality, speed, output. servo reliability, battery backup of EEPROM System reliability Uptime Uptime

17. The Comment(Supplier – What Is Your Highest Priority Packaging Automation Issue You Face Today?) “Customers are cash strapped and can not afford to invest in new technology, but they can not afford not to because it increases their efficiency. It is a catch 22, and they can not get around it so they continue what they are currently doing in hope that something is going to change in the future. When it does not change, they blame the economy and continue along the current path as if it is not their fault that they are no more efficient than they were last year….”

18. Summary - Suppliers • If your packaging machines aren’t designed to easily integrate into a packaging line why not? • Technology has been available for 20+ years • Customers that use this technology will more likely be around for a long time • If your packaging lines are not designed for integration into an information system why aren’t they? • Your machines will likely run more reliably if customer has the information to keep them running reliably • You can use this information to facilitate faster commissioning • Are you using the OMAC standards • Reduce engineering costs • Reduce training • Faster commissioning

19. Summary - Users • If you aren’t networking your packaging lines together why aren’t you? • The technology to do this has been around for 20+ years • The user benefits are well documented • If you are not automatically collecting information on your packaging lines why not? • The technology to do this is readily available today • The user benefits of better reliability, quality, etc. are well documented • If you are looking for cost reductions • Reliability programs (Eg. Tracking OEE) • Streamlining your supply chain (Eg. linking to your ERP systems) • Look at the OMAC Packaging Standards • Help you achieve these objectives • Users are getting benefits from these standards

20. Information on the OMACPackaging Group • Survey Results • This presentation on the OMAC Packaging website (www.omac.org/packaging) • Full results of the survey are available for OMAC corporate members • OMAC Packaging Standards • ISA-TR88.00.02 Machine and Unit States: An Implementation Example of ISA-88 on the ISA Standards website • Incorporated PackML and PackTags into the ISA-88 standards • http://www.isa.org/Template.cfm?Section=Standards2&template=/Ecommerce/ProductDisplay.cfm&ProductID=9999 • To join OMAC go to www.omac.org/membership • Corporate membership • Individual membership • Contact Dave Bauman, OMAC Technical Director dbauman@omac.org