Innovation in Steel Collar Fastening Technology - Connecting Steel

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1 Innovation in Steel Collar Fastening Technology - Connecting Steel Introduction to Rosette Philosophy and Technology 2003 Thank you for your interest in Rosette technologies, the new-generation in light-gauge steel frame construction. Rosette Systems Ltd joined FUSA Tech of Reston, VA, and produced a Scandinavian- American revolutionary LGSF-solution. Rosette is an engineering integrator, and a single-source supplier for specialty panel fabrication applications. We have numerous successful installations throughout the world with our vendor group, continuous and discontinuous composite panel manufacturing (steel-faced sandwich panels) applications, paperless wall frame panel manufacturing systems, metal roof tile panel forming lines, special high-cycle packing machines, to mention some of them. All our machines come from Northern European suppliers, mainly from Scandinavia, where there is a long tradition of automated manufacturing processes. The main reasons for this high tech manufacturing tradition are lack of manpower, and commitment for lean manufacturing principles: elimination of waste and product defects. Mechanized production will generate consistent quality with high volumes to maximize the use of equipment. Scandinavians also are famous for continuous industrial innovation. Rosette Connection and Manufacturing Technology: Left: Rosette In-Line Truss system has dia 20 mm (0.79 ) Rosette Connector Right Rosette CEE Truss has dia 50 mm (2 ) Rosette Connector Rosette Systems Ltd. Rosette Southwestern, Inc. Rosette Systems Oy South Shore Road 3076 High Ridge Drive Vihdintie 32 Reston, VA 20190, U.S.A. Grapevine, TX 76051, U.S.A Nummela, FINLAND ph. (703) , fax ph. (817) , fax ph , fax -301 kimmo.sahramaa@rosettesystems.com niilo.kokkarinen@rosettesystems.com juha.arola@rosettesystems.com

2 We have developed a computerized, fully integrated steel frame panel and roof truss fabrication technology. A strategic new development is a proprietary ROSETTE connection technology, the Steel Collar Fastening System. Based on this connection technology, Rosette has introduced proprietary, in-line roof truss and floor joist product designs, available for license manufacturing. Experience in North America in Frame Panel Production Machinery: Our hardware partner, MAKRON of Finland, has been active on the market with automated, paperless wood frame panel manufacturing lines. We supplied the first fully automatic paperless plant framing lines installed in North America Therefore, we had a solid customer base to draw experiences when the Rosette steel frame design was developed. The strategic challenge was to replace lumber with LGS steel, which offers several unique benefits over its traditional competitor. Steel construction had not been adopted successfully before because of high labor content and lack of efficient production systems. Three operators convert galvanized steel coil strip into 100 custom trusses per shift - not a single screw needed. Commodity Approach and Computerization for Custom Designs: Our first goal is to offer a commodity approach using steel for customized residential, commercial, or industrial construction. Instead of thinking of frame details, think of the tons of steel that you want to convert into structures. Only the commodity approach makes steel construction competitive, and only computerization makes full-custom fabrication feasible. We are working with Vertex-Argos CAD, and their steel framing and panelizing program is fully compatible with our machines. We also offer a comprehensive structural analyzing package with Argos for Rosette lines. Argos has a very strong market position in the industrialized building material industry in the U.S. Argos BDS, Inc, is based in Boston, MA. Front Office Costs: Rosette business is run on fully integrated Architectural CAD. Any change made at any time to the building design will be immediately relayed through the whole manufacturing control system. The Rosette LGS plant is paperless. Computers do the walking and talking. This will keep your front office and shop floor supervision very lean, indeed. Automated CNC pressing of Rosette connectors

3 Simple Mechanical Details Make Reliable Automated Solutions: Real-life experience is required to develop an operator-friendly technology. We have succeeded in meeting this strategic goal. When the mechanical system is simple, it will be reliable even when automated. The Rosette connection technology makes the steel frame panel and roof truss fabrication process very simple. From Narrow Coils to Frame Panels and Roof Trusses: For maximum economical efficiency and highest added value, we integrate the process starting from narrow strip coil material. All the dimensioning information and material handling is taken care of automatically. Measuring of components and all detailing take place at CAD-controlled prepunching workstations. Mechanized component fabrication makes possible the high-quality and perfectly accurate profile detailing we wanted to have in the Rosette system. The bottom line: you pay less than 30 cents per pound for your narrow coil material in Rosette production. Compare this to the competition paying twice or more for stock length profiles. Lean Manufacturing, no Dollars wasted in Waste: No material is wasted in fabricating components because the manufacturing process is JIT and a continuous narrow coil feed stock is used. There is no cutting waste. No prefabricated components or subassemblies are waiting in inventory to be processed; thus, no damage can occur to inventory. For example, a competing batch method of production of roof trusses will effectively waste onefourth of chord material at the component cutting alone. Mechanized Material Handling: Integration makes it possible to mechanize the material handling throughout the fabrication process. Member parts do not need to be touched by a human hand until at the last step, the snap-on assembly. This represents big savings in your operation cost. In a conventional manufacturing process, it is normal to calculate that 40 percent of the total operation cost is related to value-add performance, and 60 percent is spent in material handling. Rosette saves you on material handling cost and managing the materials. Savings in Cost of Real-Estate Will Pay Your Automation Investment: The Rosette production is managed on a Just-In-Time basis and all material handling is automated. This saves a considerable amount of factory space. There is no inventory of semi-finished components or products, and no floor space is needed for them. No forklifts are needed within the manufacturing space. A Rosette wall frame panel production line will have a footprint of m 30 x 170 feet (9 x 50 meters) (assuming an efficient max. wall frame panel length of 26 feet, (7.8m) and a in-line roof truss production line 33 x 260 feet ( 10 x 80 m)

4 (assuming an efficient max. roof truss length of 40 feet (12 m)). This space also includes the raw material inventory under the same roof. Weighing the floor space with volume output, you save at least 50 per cent, if not more, on your real estate. Real estate is dead weight and does not directly do anything to enhance your opportunities to be more competitive, flexible or responsive in running your business. Automation, on the other hand, is an operational investment and does save you money and improves your possibility to respond fast. Put your investment dollars in automation to work for you rather than bearing them as a burden. The less real estate there is, the less space there is to be heated, cooled, and maintained. Different Rosette Machines for different Products: Rosette offers alternative production line solutions for different needs. All processes are Just-In Time, which allows virtual scheduling and fast turnaround of orders. A single Compact line can be used to produce everything you need for residential structures: steel frame walls, floor panels or CEE roof trusses (Compact Line with a CEE Option). For those who want to make components for Multi-Story construction in heavier gauge and wider webs joists, we offer Compact-Pro solution. For high-volume truss production we offer Rosette Eko and Rosette BigBoy Roof Truss Lines, both available with two in-line chord sections and capability for longer spans, up to 80 feet (24 m). Only three operators are needed in converting coil material into frame panels for two average-size houses per shift. Three operators are able to convert narrow strip to 100 roof trusses per shift (this assumes a 33 foot (10m) long, average truss structure). Operation Flexibility and Utilization of Line Capacity: You can set up a new shift of production by calling in three core operators. Solving Your Potential Human Bottleneck: Steel as a material lends itself well to automated fabrication. The industry can overcome its worst problems --the human resource bottleneck of training and the lack of trained steel carpenters --by letting the computers and mechanized fabrication systems do the job. Quality of Framed Structure: Rosette system has superior detailing where cuts are done by punch tools, thus eliminating dangerous sharp edges and danger to those handling the end product. Rosette connectors have a strong, industrial look and are placed by automated machines, producing overall high quality appeal. The Rosette in-line section roof truss chord profile has rounded shapes and is very safe to handle. Superior material with industrial detailing and fabrication methods are clear winners. The consistent quality of steel material and automated fabrication process will remove the burden of callbacks so well know in wood truss industry.

5 Header Structures, Diagonal & Lateral Bracing and others: We offer alternative header details and integrate diagonal and lateral bracing in the design of wall structures. Rosette has also developed designs for modular shear wall panels. Scandinavian Thermal Efficiency: The slit web, thermal stud technology can be integrated into your lines. A rotary, in-line punching operation will produce C-studs and U- plate shapes with details, effectively reducing the cold-bridge and making steel very comparable with wood. It is a no-cost production method to solve the biggest single problem related to steel s acceptance for exterior wall construction. Slit web technology is widely used in Scandinavia and thoroughly tested. Actually we are bringing it back to you; it is an American invention from the early 1970 s, but commercially it was adopted in Scandinavia. Installation of Rosette Assemblies at the Building Site: We supply our customers with many Rosette accessories. Important technology inventions have been created in order to make the site installation as efficient and safe as possible. The very core invention of our building system, the Rosette connection, produces a 20 mm (0.79") hole at every panel point. This hole is utilized at the site installation as well, as it is already available, at no additional cost, correctly placed where needed. We developed alternative Rosette TubeBolts with a fit into the Rosette hole and a twist to the Rosette bracket. Your installers can keep their gloves on when they handle Rosette tube-bolts and fix Rosette assemblies in inclement weather. We also supply Rosette connection brackets. There is an emphasis on precision throughout the entire installation process. Become Rosette License Manufacturer: For a Rosette Compact wall frame panel line you have to budget about $1.0 million plus possible Options. It is capable of producing rectangular panels and with option tooling also rake (triangular) wall panels. CEE Truss option tooling will add the residential roof truss fabrication capability to the wall line. Samesor makes Rosette heavy-duty roll formers. Competitive Edge: Using the Rosette process, you would probably pay 40% of what you pay today for your rollformed profile material (do not forget the waste factor in batch fabrication systems) and in Rosette process your labor content may drop down to 5% of what you spend in conventional prefabrication process (you spend on average 12 minutes of total operator time in making a Rosette roof truss, compared to 240 minutes for other systems). Thus, in every three to four minutes Rosette line completes a new truss. With Rosette you employ three core operators, compared with a team of 30 usually needed for other processes. With the Rosette system you may add another shift by calling in three operators. It is easy to meet your customer's urgent needs.

6 Protected Territory: Rosette is a patented technology. By becoming a Rosette Exclusive Territory License Manufacturer for a fee based on production volume, you will be a newgeneration building component supplier with protected manufacturing territory. You may sell your products anywhere you like, but Rosette will not sell a similar line in your protected geographical area. This will protect you against a neighbor competitor with the same technology advantage. Visit and view our web site for more immediate information. You will find most of our printed publications at Rosette pages will also show animated simulations and video material and make you quickly understand the opportunities our technology offers. Best regards Rosette Systems Ltd Kimmo J. Sahramaa Partner