MEMEX Recognized as one of the Strongest Performing Companies on the TSX Venture Exchange

BURLINGTON, ON–(Marketwired – Feb 23, 2017) – Memex Inc. (“MEMEX” or the “Company”) (TSX VENTURE: OEE) announces today that it was recognized as a 2017 TSX Venture 50 Company. The TSX Venture 50™ are the 50 strongest performing companies (out of 1,643 listings) on the TSX Venture Exchange.

Memex was ranked 4th in the Technology category (out of 131 listings) based on a ranking formula which equally weights market cap, trading volume, and share price. To commemorate this achievement, CEO David McPhail will join other TSX Venture 50 representatives at a market opening ceremony on Friday, February 24th, 2017.

“It is an honour to be selected as one of the leading technology companies for the TSX Venture 50,” said David McPhail. “The award is a testament to our corporate vision, innovative product offerings, and execution in the growing Industrial Internet of Things market. We are well positioned in IIoT and are excited about our growth opportunity in 2017 and beyond. This achievement was made possible through the continued support and confidence MEMEX received from its employees, shareholders, customers, and other business partners.”

About TSX Venture 50:

The TSX Venture 50 is an annual ranking by the TMX Group of 50 upcoming companies on the TSX Venture Exchange. The list is determined by assigning equal weighting to share price appreciation, trading volume, and market capitalization growth. The companies in the list have results in key measures of market performance.

About MEMEX:

MEMEX was founded with a vision to improve the way automated machine and production equipment work and connect on the factory floor. Since then MEMEX has proved itself a pioneer in IIoT time and again. The company is committed to its mission of “successfully transforming factories of today into factories of the future” and envisions converting every machine into a node on the corporate network, creating visibility from shop-floor-to-top-floor. MEMEX is the developer of MERLIN, an award-winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time. MEMEX’s software and hardware IIoT solution enable customers to achieve tangible IIoT-centric business outcomes. The MERLIN software suite and connectivity products has enabled manufacturers to achieve upwards of a 50% increase in productivity and a 20%-plus increase in profit, on average. Additionally, customers have secured payback in less than four months, which equates to an Internal Rate of Return greater than 300 per cent. For more information, please visit: www.MemexOEE.com.

Media Contacts

Memex Inc.: David McPhail, CEO

Phone: 519-993-1114

Email: david.mcphail@MemexOEE.com

 

Rashi Rathore, Marketing Manager

Phone: 905-635-3040 ext 103

Email: Rashi.Rathore@MemexOEE.com

 

Investor Relations

Sean Peasgood, Investor Relations

Phone: 416-565-2805

Email: Sean@SophicCapital.com

Click here to download the 2017 TSX Venture 50 Winners

MEMEX Inc. announces MERLIN Tempus™ and MERLIN Tempus Enterprise Edition Available for First Customer Ship (FCS)

Customer Beta Trial Feedback is Encouraging

BURLINGTON, ON–(Marketwired – Feb 21, 2017) – Memex Inc. (“MEMEX”) (TSX VENTURE: OEE) is pleased to announce the official release of MERLIN Tempus and MERLIN Tempus Enterprise Edition (EE), the next generation of our award-winning MERLIN Manufacturing Execution System software platforms.

Dave McPhail, President and CEO of MEMEX Inc., stated, “Following our Tempus debut at IMTS last September, we received significant interest in the platform’s next-generation, machine monitoring / analytics capabilities. Several of these inquiries led to beta tests with a number of clients and prospects, and their feedback was overwhelmingly positive.

With MERLIN Tempus and MERLIN Tempus EE, MEMEX is again redefining what it means to truly know what is happening in your manufacturing operations, regardless of industry vertical served. MEMEX has long been recognized as the leader in both shop floor monitoring, as well as providing MTConnect software and hardware solutions for any piece of manufacturing equipment on the plant floor. These new products will further differentiate MEMEX from the competition.

MEMEX’s entirely new software and hardware platforms build upon the success of the current award-winning MERLIN software suite and connectivity products, which has enabled manufacturers to achieve upwards of a 50% increase in productivity, a 20% plus increase in profit on just a 10% increase in OEE and payback in less than four months, which all equates to an Internal Rate of Return greater than 300%.”

About MERLIN Tempus and MERLIN Tempus Enterprise Edition:

MERLIN Tempus is an open and extensible Manufacturing Execution System (MES) platform that offers the next generation of tools and a dynamic configurable dashboard that provides a complete customizable view of shop floor operations. Tempus is Latin for time. MERLIN Tempus measures and analyzes manufacturing time. MERLIN Tempus tells manufacturers exactly how time is being used on their shop floors, with operators, with sensors and with any type of manufacturing asset. Developed using state-of-the-art software engineering technologies, including .NET and RESTful API’s, MERLIN Tempus delivers green-light metrics and analytical capabilities to effectively reduce downtime while increasing throughput and profits. MERLIN Tempus EE extends the capabilities of the MERLIN Tempus platform with full Overall Equipment Effectiveness (OEE) and integrated job scheduling. MERLIN Tempus supports MTConnect, Fanuc Focas, Fanuc I/O link to MTConnect®, OPC and other software protocols.

MERLIN Tempus and MERLIN Tempus EE are highly scalable, extensible and are open Manufacturing Execution System platforms. This is significant because it greatly simplifies and truly enables customers and partners to build upon the countless features and services MERLIN Tempus has to offer.

About MEMEX:

MEMEX, the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of “Successfully transforming factories of today into factories of the future” and encouraged by the accelerating adoption and success of MERLIN, MEMEX is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. MEMEX envisions converting every machine into a node on corporate networks, thereby, creating visibility from shop-floor-to-top-floor. MEMEX, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers MEMEX’s customers to effectively quantify and manage OEE, reduce costs and incorporate strategies for continuous lean improvement. For more information, please visit: www.MemexOEE.com.

Media Contacts

David McPhail
CEO
Phone: 519-993-1114
Email: david.mcphail@memexoee.com

Rashi Rathore
Marketing Manager
Phone: 905-635-3040 ext 103
Email: Rashi.Rathore@memexoee.com

Investor Relations
Sean Peasgood
Investor Relations
Phone: 416-565-2805
Email: Sean@SophicCapital.com

 

Memex Inc. Releases Q1-2017 Financial Results

Strong Cash Position to Weather Temporary Market Disturbance

Burlington, ON, Canada – February 17, 2017 – Memex Inc. (“Memex” or the “Company”) (TSX-V: OEE) a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its first quarter financial and operational highlights for its 2017 fiscal year, which ended December 31, 2016. All results are reported in Canadian dollars.

Summary Financial Highlights for the First Quarter Ended December 31, 2016:

  • Memex reported revenue of $505 thousand, 18% lower than the same quarter a year ago;
  • Gross margin of 56.7% was down from 61.1% reported the same period a year ago;
  • Bookings[i] for the quarter were $393 thousand, down 55% from the same period a year ago;
  • The Company reported a net and comprehensive loss of $763 thousand for the quarter, equating to a $0.007 loss per share.  This compares with a $641 thousand net and comprehensive loss last year, and a similar $0.007 loss per share; and
  • At December 31, 2016, the Company had $3.79 million in current assets including $3.05 million in cash and $3.00 million in working capital.  Subsequent to year-end, Memex added $171 thousand to its cash reserves through 881 thousand exercised/redeemed Shares/Warrants.

Management Commentary:

“During the first quarter, Memex saw numerous pipeline opportunities and several customers delay investment leading into the U.S. election,” said David McPhail, President and CEO of Memex.  “As a result, we onboarded fewer prospects than anticipated, but we emphasize that our discussions continue as certainty forms around the administration’s manufacturing and trade policies. Memex’s cash position remains strong, easily allowing us to weather this temporary market disturbance.”

 

Q1 2017 and Subsequent Operational Highlights:

  • The Company closed 13 follow-on orders to expand existing Customer use of MERLIN, and engaged 5 new Customers in the first quarter of 2017.
  • The Company raised another $558 thousand through the issue of Common Shares (Option exercise/Warrant redemptions).
  • Based on its recent analysis of the global machine monitoring systems market, Frost & Sullivan recognized Memex Inc. with the 2016 Global Frost & Sullivan Award for Product Leadership.
  • MERLIN Tempus, the Company’s next generation IIOT platform is nearing First Customer Ship (FCS) Status (appox. 4 weeks).

Selected Finacial Information_MEMEX_Q1 2017

About MEMEX 

Memex, the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of, “Successfully transforming factories of today into factories of the future”, and encouraged by the accelerating adoption and success of MERLIN, Memex is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. Memex envisions converting every machine into a node on the corporate networks, thereby, creating visibility from shop-floor-to-top-floor. Memex, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers Memex’s customers to effectively quantify and manage OEE, reduce costs, and incorporate strategies for continuous lean improvement.

 

For more information, please visit: www.MemexOEE.com

 

For investor inquiries please contact:

 

Ed Crymble, Chief Financial Officer

905-331-4343

ed.crymble@MemexOEE.com

 

David McPhail, President & CEO

519-993-1114

david.mcphail@MemexOEE.com

 

 

Sean Peasgood, Investor Relations

416-565-2801

sean@sophiccapital.com

 

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[i] This non-IFRS financial measure is identified, defined and reconciled to the closest IFRS measure, revenue, within our Management’s Discussion and Analysis for the years ended September 30, 2016 and 2015, in the section “Other Financial Measures.”  That MD&A is available at www.sedar.com under our company profile.

Frost & Sullivan recognizes MEMEX Inc. as 2016 Global Product leader in Machine Monitoring System

SANTA CLARA, California, Jan. 19, 2017 /PRNewswire/ — Based on its recent analysis of the global machine monitoring systems market, Frost & Sullivan has recognized MEMEX Inc. with the 2016 Global Frost & Sullivan Award for Product Leadership. With this award, MEMEX receives worldwide acclaim for its turnkey machine monitoring and automation solutions, especially its flagship product, MERLIN, a next generation scalable IIoT communication platform. The company continuously improves its products to stay relevant to a cross section of customers from the aerospace, automotive, and advanced industrial sectors. It further sets itself apart with its outstanding technical service, support, training, and software developm

By offering true shop floor to top floor communication and visibility at plant- and enterprise-level along with enhanced data collection, and tailored reporting capabilities, MERLIN presents specific data results that customers need to make strategic decisions reducing their overall capital expenditure. The MERLIN platform connects the shop floor with the top floor of any manufacturing facility by leveraging the Industrial Internet of Things (IIoT) Mega Trend in its overall concept and design. Acknowledging the importance of user friendliness, MEMEX designed the system in a way that the installed communications base and open machine integration software collects and houses all machinery data in a single, easy-to-access control panel and displays the data on an interactive dashboard. Furthermore, MERLIN  helps customers track and understand various performance metrics displayed on its system dashboard and performance trend charts.

“One of the distinguishing features of MERLIN is its operator portal, with its ability to perform machine-related operator inputs through a Microsoft Windows-based application,” said Frost & Sullivan Research Analyst, Rohit Karthikeyan. “This parameter-driven software allows operators to quickly tailor the operator portal to display the information they need on their personal devices. It makes the machine information accessible while still channeling operator information inputs, commands, and notices through the plant’s communication platform.”

Underlining its commitment to innovation, MEMEX expanded MERLIN’s offerings to include:

  • MERLIN Tempus, which supports enterprise-level machine connections and serves as a platform for shop floor communications
  • MERLIN MES, which enhances monitoring and browser-based graphical display capabilities for complete manufacturing execution systems
  • MERLIN DNC, which facilitates file transfers to machines from computer-aided drawing and manufacturing programs
  • MERLIN FOEE, which provides specialized financial overall equipment effectiveness (OEE) metrics to visualize real-time hourly profit contribution by product
  • MERLIN MTC-One, a circuit board hardware that connects machines to a network with multiple analog and digital inputs

MEMEX has taken innovation a step further by including product features such as the HTML-based widgets in the dashboard presentation layers of MERLIN. These widgets permit customers to smoothly tailor their data reporting to show only specific and relevant machine performance information to production teams. Combined, these features result in a highly scalable data reporting solution.

“MEMEX looks to make ‘cross-industry machine connections’ by providing machine and process monitoring, OEE, and communications functionalities,” noted Karthikeyan. “No other machine monitoring system offers such a solution, and it helped MEMEX achieve its mission of measuring manufacturing excellence.”

Each year, Frost & Sullivan presents this award to the company that develops a product with innovative features and functionality that is gaining rapid acceptance in the market. The award recognizes the solution quality and the customer value enhancements it enables.

Frost & Sullivan’s Best Practices Awards recognize companies in a variety of regional and global markets for outstanding achievement in areas such as leadership, technological innovation, customer service, and product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research.

About MEMEX

MEMEX Inc., the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of “Successfully transforming factories of today into factories of the future” and encouraged by the accelerating adoption and success of MERLIN, MEMEX is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. MEMEX envisions converting every machine into a node on the corporate network, thereby, creating visibility from shop-floor-to-top-floor. MEMEX, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers MEMEX’s customers to effectively quantify and manage OEE, reduce costs and incorporate strategies for continuous lean improvement. For more information, please visit: www.MemexOEE.com

Media Contact
MEMEX Inc.:
David McPhail, CEO
Phone: 519-993-1114
Email: david.mcphail@MemexOEE.com

Rashi Rathore, Marketing Manager
Phone: 905-635-3040 ext 103
Email: Rashi.Rathore@MemexOEE.com

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion.

Contact:

Chiara Carella
P: +44 (0) 207.343.8314
F: 210.348.1003
E: chiara.carella@frost.com

Click here to read more

 

Happy Holidays

We wish everyone a very Merry Christmas and a Happy New Year!

MEMEX holiday hours are as follows:

Friday, December 23: 8 am – 2 pm.

Monday, December 26: Closed

Tuesday, December 27: Closed

Wednesday, December 28: Regular hours

Thursday, December 29: Regular hours

Friday, December 30: 8 am – 2 pm

Monday, January 2: Closed

Regular hours will resume Tuesday, January 3, 2017.

Memex Inc. Releases Annual Financial Results

Record Annual Revenue and Gross Margin

BURLINGTON, ON–(Marketwired – Dec 15, 2016) –  Memex Inc. (“Memex” or the “Company”) (TSX VENTURE: OEE), a global leader in Industrial Internet of Things (IIoT) manufacturing productivity software, today released its annual financial and operational highlights for its fiscal year ended September 30, 2016. All results are reported in Canadian dollars.

Summary Financial Highlights for the Year Ended September 30, 2016:

  • Memex reported revenue of $2.91 million, 51% higher than a year ago;
  • Gross margin of 66.2% was up from 58.9% reported a year ago;
  • Bookingsi for the year were $3.42 million (with no comparative information available);
  • The Company reported a net and comprehensive loss of $2.81 million for the year, equating to a $0.028 loss per share. This compares with a $2.35 million net and comprehensive loss last year, and a $0.030 loss per share; and
  • At September 30, 2016, the Company had $4.16 million in current assets including $2.90 million in cash and $3.11 million in working capital. Subsequent to year-end, Memex added $464 thousand to its cash reserves through 2.33 million redeemed Warrants.

Management Commentary:

“2016 was a transition year where early adopters more fully understood the value of our data-driven manufacturing solutions. Additionally, customers expanded their current deployments of our platform, and new prospects were asking about enterprise wide deployment strategies,” said David McPhail, President and CEO of Memex. “At IMTS, we introduced a whole new range of next generation IIoT products, and we believe that these products will increase MERLIN’s value proposition in Cisco’s Connected Machines Strategy.”

2016 Fiscal Year End and Operational Highlights:

  • The Company issued 11.83 million shares in the fourth quarter of 2016 through the redemption of Warrants for total proceeds of $2.03 million.
  • The Company acquired 37 new customers and received 44 follow-on orders from existing customers during fiscal 2016.
  • Memex was featured at Cisco Live (Cisco’s annual technology conference), where Cisco revealed that Memex’s MERLIN platform would be part of Cisco’s Connected Machines portfolio of solutions. A key component of Cisco’s value proposition is that MERLIN facilitates the real-time calculation of Overall Equipment Effectiveness (OEE). Cisco demonstrated MERLIN’s integration in Cisco’s Connected Machines Strategy during IMTS 2016 while exhibiting in Memex’s booth.
  • Management finalized arrangements and completed the early payout of lender, Business Development Bank of Canada. The early payout eliminated future interest and royalty payments, and led to a one-time recovery adjustment of $74 thousand. Directors and Management provided most the funding to extinguish the debt by paying above market value (at the time) to redeem their expiring warrants.
  • The Company showcased a new league of next generation IIoT products. These included MERLIN Tempus, MERLIN Tempus EE, MERLIN FOEE, MERLIN MTC-One, MERLIN DNC and MERLIN Continuous Improvement Roadmap, which were launched during IMTS 2016. MERLIN OPTime, a free gateway to Real-Time manufacturing analytics, was launched at MC2 conference.
  • The Company was judged one of Canada’s “Top 20” hottest innovative public technology companies; the recipient of the Canadian Innovation Exchange (CIX) Top 20 Award. MERLIN, a next generation IIoT platform and MEMEX’s flagship product, received the 2016 Global Machine Monitoring Systems Product Leadership Award from Frost and Sullivan.

Summary Financial Highlights for Fourth Quarter Ended September 30, 2016:

  • Memex reported revenue of $806 thousand, 40% higher than the same period in the prior year;
  • Gross margin of 72.0% was up from 67.3% reported in the same quarter a year ago;
  • Bookingsi were $811 thousand, up 46% from the same quarter a year ago; and
  • The Company showed a $726 thousand net and comprehensive loss for the quarter equating to a $0.007 loss per share. This compares with a $500 thousand net and comprehensive loss in the same quarter a year ago, and a $0.005 loss per share.

Selected Financial Information

Three-month period ended
Sep 30
Year ended
Sep 30
(Canadian dollars – in thousands except per share and margin%) 2016 2015 Change 2016 2015 change
Revenue 806 575 + 40% 2,910 1,929 + 51%
Bookingsi 811 556 + 46% 3,415 Note 1
Gross margin % 72.0 67.3 + 7% 66.2 58.9 + 12%
Operating expenses 1,296 987 + 31% 4,867 3,542 + 37%
Cash utilized in operating activities2 659 467 + 41% 2,720 2,076 + 31%
Net and comprehensive loss for the period (726) (500)  45% (2,805) (2,353) 19%
Basic and diluted loss per share – period (0.007) (0.005)  39% (0.028) (0.030) + 8%

1. Memex only began collecting bookings data July 1, 2015, comparable information is not available.

2. Before changes in non-cash working capital balances.

As at September 30
(Canadian dollars – in thousands except WC ratio)
2016 2015
Cash on hand 2,899 3,316
Current assets 4,156 4,219
Total assets 4,639 4,745
Current liabilities 1,047 990
Working capital* 3,109 3,229
Working capital ratio** 3.97 to 1 4.26 to 1
Backlogi 848 409

* Working Capital = current assets – current liabilities
** Working Capital ratio = current assets / current liabilities

About Memex Inc.

Memex, the developer of MERLIN, an award winning IIoT technology platform that delivers tangible increases in manufacturing productivity in Real-Time, is the global leader in machine to machine connectivity solutions. Committed to its mission of, “Successfully transforming factories of today into factories of the future”, and encouraged by the accelerating adoption and success of MERLIN, Memex is relentlessly pursuing the development of increasingly innovative solutions suitable in the IIoT era. Memex envisions converting every machine into a node on the corporate networks, thereby, creating visibility from shop-floor-to-top-floor. Memex, with its deep commitment towards machine connectivity, offers solutions that are focused on finding hidden capacity by measuring and managing Real-Time data. This empowers Memex’s customers to effectively quantify and manage OEE, reduce costs, and incorporate strategies for continuous lean improvement.

For more information, please visit: www.MemexOEE.com

Neither the TSX Venture Exchange nor its Regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

i This non-IFRS financial measure is identified, defined and reconciled to the closest IFRS measure, revenue, within our Management’s Discussion and Analysis for the years ended September 30, 2016 and 2015, in the section “Other Financial Measures.” That MD&A is available at www.sedar.com under our company profile.

For investor inquiries please contact:
Ed Crymble, Chief Financial Officer

905-331-4343

ed.crymble@MemexOEE.com

 

David McPhail, President & CEO

519-993-1114

david.mcphail@MemexOEE.com

 

 

Sean Peasgood, Investor Relations

416-565-2801

sean@sophiccapital.com

Memex MME Icon logo 2 colour white interior TM

MEMEX wins 2016 Global Machine Monitoring System Product Leadership Award

Frost & Sullivan has a global team of analysts and consultants continuously researching a wide range of markets across multiple sectors and geographies. As part of this ongoing research, they identify companies that maintain consistently high standards for product or service quality and innovation, allowing them to form deep relationships with their customers. This research involves extensive primary and secondary research across the entire value chain of specific products. Against the backdrop of this research, Frost & Sullivan is proud to present MEMEX with 2016 Global Machine Monitoring Systems Product Leadership Award.

Headquartered in Burlington, Ontario, MEMEX-operating as a publicly traded company under the stock ticker “OEE”)—earns its recognition as a global leader in the machine-to machine manufacturing market. MEMEX serves customers within the aerospace, automotive, and advanced industrial sectors by measuring manufacturing excellence in customers’ operations. MEMEX looks to continuously improve its turnkey machine monitoring and automation solutions for its customers, expanding the capabilities of its flagship product, MERLIN, to stay a relevant and highly efficient machine monitoring solution for customers through technical service, support, training, and software development. MEMEX and the MERLIN system received Frost & Sullivan’s 2013 North America Technology Innovation Leadership Award in the machine monitoring market and the company is once again recognized in 2016 as a global Product Leader with its continued commitment to innovation and customer value.

To read the complete report click here

MEMEX-Award-Announcement

MEMEX wins 2016 Global Machine Monitoring System Product Leadership Award

Frost & Sullivan has a global team of analysts and consultants continuously researching a wide range of markets across multiple sectors and geographies. As part of this ongoing research, they identify companies that maintain consistently high standards for product or service quality and innovation, allowing them to form deep relationships with their customers. This research involves extensive primary and secondary research across the entire value chain of specific products. Against the backdrop of this research, Frost & Sullivan is proud to present MEMEX with 2016 Global Machine Monitoring Systems Product Leadership Award.

Headquartered in Burlington, Ontario, MEMEX-operating as a publicly traded company under the stock ticker “OEE” earns its recognition as a global leader in the machine-to machine manufacturing market. MEMEX serves customers within the aerospace, automotive, and advanced industrial sectors by measuring manufacturing excellence in customers’ operations. MEMEX looks to continuously improve its turnkey machine monitoring and automation solutions for its customers, expanding the capabilities of its flagship product, MERLIN, to stay a relevant and highly efficient machine monitoring solution for customers through technical service, support, training, and software development. MEMEX and the MERLIN system received Frost & Sullivan’s 2013 North America Technology Innovation Leadership Award in the machine monitoring market and the company is once again recognized in 2016 as a global Product Leader with its continued commitment to innovation and customer value.

To read the complete report click here

OEE May Not Be Enough

Columns: 12/1/2016 | CONTRIBUTED BY DAVE EDSTROM ,Chief Technology Officer , Memex

Overall equipment efficiency (OEE) is a critical measurement of how well a manufacturing unit is doing. But shops should also focus on profitability, which is where Financial OEE comes in.

Overall equipment efficiency (OEE) is considered a critical measurement of how well a manufacturing unit is doing. The formula is simple: It multiplies the percentages of availability, performance and quality to yield a single percentage. This result enables similar units (one machine, one department, one plant or an entire enterprise) to be compared or rated against a target such as a plant’s best record or a benchmark of world-class performance. Focusing on OEE enables manufacturers to pinpoint factors that hold back productivity.

Significantly, recent developments in data-driven manufacturing make calculating OEE easier, faster and more accurate—and acting on it more effective. For example, these benefits are an important advantage of connecting machine tools to a network for data collection and monitoring.

However, shops and plants must also focus on profitability. Managers have to balance decisions about maximizing the part-making capability of their equipment with decisions about the money-making potential of this equipment. OEE ratings alone provide an incomplete picture. One development that seeks to address this shortcoming is called Financial OEE (FOEE), a trademarked name for a new feature of MERLIN Tempus Enterprise Edition (EE) from Memex.

MERLIN (Manufacturing Enterprise Real-time Lean Information Network) is a communications platform for real-time manufacturing analytics. Tempus is the company’s suite of applications for machine monitoring such as real-time views of the plant floor, custom dashboards, reporting, alerting and other functions related to data-driven manufacturing. Tempus EE adds OEE, job scheduling and other modules such as FOEE.

Memex has partnered with noted OEE expert and author Robert Hansen to develop this approach. FOEE answers the question, “What is the value of improving OEE on this particular machine for this particular product?” More to the point, it answers “How much profit is being left on the table by not performing at company-best or industry-best levels for that specific part?”  Thus, the FOEE concept shows the power of data-driven manufacturing and the Industrial Internet of Things to transform decision-making not only on the shop floor, but also in the front office.

Tempus EE automatically collects the event details necessary to compute OEE.  The first phase of FOEE applies to stand-alone machines making a finished product. FOEE requires three key financial input values for each product and the machine. These inputs are unit sales price, unit material cost and the hourly operational expense (OPEX) of the machine. This information can be derived from the ERP product standard and the income statement.

FOEE is the current-state hourly profit divided by a value representing a world-class level of profit. This ratio tells a company what profit it made compared to what profit could have been made at world-class levels. With this information, a company can see the financial value of improving the machine’s performance.

In the figure on page 40, a product called P0006 is analyzed over 180 days. The product-run OEE data is correlated with the three inputs necessary for FOEE. It also associates important actionable data such as profit contribution per hour and current FOEE based on the machine’s best FOEE percentage, as well as how much more profit would accrue by running the machine at its best OEE rate.

With FOEE, managers can look at jobs scheduled for a machine and make decisions based not just on utilization, but also on utilization and profit. This enables managers to compare a list of machines capable of running a certain job, and to determine which machine would yield the highest hourly profit. Just as the OEE figure related to each project or job is a key tool in prioritizing and evaluating continuous improvement projects, FOEE provides a quick view of the profitability opportunity for these projects. FOEE is a tool to make better business decisions for scheduling products, guiding continuous improvement efforts and giving important feedback to sales and marketing teams.

To view the complete article click here