1. The Evolution of PI System #16 at Appleton Papers

2. Overview n Story Begins with Custom Developed Quality Data Management System in 1976 n PI System #16 Purchased from OSI in 1988 as 1,200 Tag Corporate Development System n Custom Developed Systems In Plant Replaced With Vendor Supplied Packages n PI System #16 Evolved To 40,000 Tags at the Heart of the Plant’s Process and Quality Information Systems

3. Appleton Papers Requirements n Quality Focus n Customer Service Focus n Many Differentiated Products n High Value Products and Raw Materials n Flexible Manufacturing Environment Real-Time Process and Quality Information On Operating Floor a MUST

4. Appleton Papers Background n Manufactures High Value Coated Papers  NCR Carbonless ™  Thermal  Specialty Products  Coated Free Sheet n 7 Manufacturing Sites In USA n Driven By “Customer Focused Quality”

5. n World’s largest carbonless paper producer n NCR Paper* brand most recognized worldwide n USA’s largest thermal paper producer n An emerging coated free sheet producer Peterborough Harrisburg, PA Roaring Spring, PA West Carrollton, OH Combined Locks, WI Appleton, WI Portage, WI Portland, OR Kansas City, KS Newton Falls, NY Los Angeles, CA Atlanta, GA Independence, KY Albany, NY Manufacturing Facility Distribution Center n Over 800,000 tons of production n 4,300 employees n Over $1 billion sales revenue Appleton Papers, Inc

6. Appleton Plant Background n Manufacturing Flexibility – Diverse Equipment Capabilities – Produces All API’s Product Lines n 1050 Employees – 163 Salaried Employees – 887 Union Employees n 1813 Products; Many Multiple Pass

7. Appleton Plant Equipment n 3 Coating Kitchens  Over 200 Tanks n 13 Production Coating Machines  24 Coating Stations  27 Scanning Gauges n 31 Finishing and Converting Machines  Calenders  Rewinders  Sheeters  Trimmers n Control and DCS Equipment  Measurex  Allen Bradley  WonderWare

8. Timeline

9. In the Beginning... n 1976 - QCDMS  Quality Control Data Management System n Scope of Lab Data Collection n Quality Reporting n 1980 - QCDMS Expansion  Need For Process Data Revealed n Installed Interface Equipment to DCS For Limited Process Data Capture n Measurex “Data Freeway” on Coaters

10. The Door Opens For PI … n 1988 - Need For Process Data Expands – New Installations and Upgrades Of DCS Equipment – Project Defined To Save ALL Process Data – Eight Years Experience Highlighted That Process Data Needed To Be Coupled With Quality Data AND “Alpha” Data To Achieve Maximum Return – Replacement For QCDMS Sought n 1988 - OSI & PI System Explored – Corporate I.S. Performed Initial Evaluations – System #16 Purchased As Development System – Plans Developed to Supplement PI with Custom Developed LIMS Application

11. Time Passes... n 1991 - “LIMS” Developed – L ab I nformation M anagement S ystem – Developed By Corporate I.S. on VAX/VMS Platform – Planned Corporate Rollout Along With PI System – PI-Toolkit on VMS Used For Development – Used PI For Data and Specification Archive – Used RDB For “Alpha” and Relational Data – OSI Modified Real-Time SQC To Meet Appleton’s Requirements

12. At Last … n 1993 - System #16 Installed At Appleton Plant – PI Installed Simultaneously with LIMS – PI System Expanded to 40,000 Tags – Data Moved from QCDMS to PI and LIMS – New System Became Centerpiece Of Quality Management and Process Optimization – QCDMS Scrapped

13. Black Hole No More... n Value In Reporting Tools – Exception Reporting – Quality Certification Reports – Specification Derivation – Process Optimization Reporting

14. The Snowball Begins Rolling … n 1994 - Development & Expanded Usage – Individuals Using System Increased – Departments Added To System

15. Culture Change … n PI Screens At Each “Work Center” – Process AND Lab Data Available to Machine Operators – Operators (Not Supervisors) Make Operating Decisions – More Sophisticated Tools Available n SQC Charts n Historical Data Analysis n LIMS Reports

16. Successful Implementation n Get Shop Floor Involvement!! – Graphics Screens Developed FOR Operators BY Operators – Floor Experts Taken Off Shift To Get Involved In Project n Available For Questions From Peers n Continue To Maintain and Create Displays – Process Engineers Insured That Data Was Accurate and Appropriate n Make System Part of Standard Operating Procedure – Quality Disposition (Ship / No Ship) – Process Troubleshooting n Always Look To The Future – Networked PCs and Printers Installed vs. “Dumb Terminals”

17. Constant Expansion... n 1995 - ProcessBook and DataLink Installed – Mountain Systems, Inc Assisted With Training n Primarily Engineering, Technical, and I.S. – DataLink Immediate Value For Ad-Hoc Analysis

18. Analysis In Windows Environment

19. Expanding Needs … n Ease of Use Highlighted Additional Opportunities – Merging of Process and “Alpha” Data – Smarter Filtering of Historical Data for Startups Opportunities Put Pressure On Custom Developed Tools To Evolve At Pace With PI System

20. More and Better Tools … n 1997 - GradeBook Installed – Packaged Software from Mountain Systems, Inc. – LIMS Replacement – Benefit From Continuous Improvement Of Software By Vendor – Very Tight Integration With PI & Microsoft Tools – Improved Analysis Tools – Improved Specification Maintenance – “Grade Run” Data Management n Better Information = Faster Startups

21. GradeBook and PI - Analysis

22. Evolution Continues … n 1998 - ProcessBook as ActiveX Container – Final Merge of Operator Views – First Time Variety Of Real-Time Process, Quality, and “Alpha” Information Can Be Focused Into Single Display – Asking Operators To Consider More and More Information – “Smart Alarming” and “Display By Exception” Only Alternative – Leveraging Microsoft Tools for Analysis and Reporting At Operator Level

23. Benefits … n Operator Empowerment n Process Optimization – Grade Change Improvement – Troubleshooting Ease n Systems Integration n Lowered Learning Curve

24. In Summary … n PI Is Like Drugs – But Results Are Good – You Need A Few Pushers Around – The First Fix Is Free – Cultivate Addicts – Better Ones Are Always Being Designed – Just Say “YES”

25. Questions & Answers