the history of l mts systems corporation

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Page 1: The History of l MTS Systems Corporation

The History of MTS Systems Corporation

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Page 2: The History of l MTS Systems Corporation

1951Research, Inc. is organized as a researchgroup of Washington Machine and ToolWorks (now known as WashingtonScientific). Founded in 1950, WashingtonMachine and Tool Works provides high-precision machining of critical componentsfor the aerospace and instrument indus-tries. Research, Inc. (RI) is the research armfor the company, and is involved primarilyin the aerospace market. All work is car-ried out under cost-plus-fixed-fee contracts.

1953Research, Inc. begins separate operationsas a subsidiary of Washington Machine andTool Works. First operated near Plymouthand Broadway in Minneapolis, Research,Inc. relocates into the Sexton building at7th and Portland, in Minneapolis.

1955Research, Inc. is bought by employees andfriends. Controlling interest is held byKenneth G. Anderson. The companymoves to a leased plant at Excelsior andMonk Avenue in Hopkins. RI's basic busi-ness is in contract research for the U.S. AirForce and products for aeronautical testingand temperature control.

1966MTS Systems Corporation is FormedResearch, Inc. splits into two companies.Its Controls Division becomes a new com-pany of the same name-Research, Inc. ItsMTS Division becomes MTS SystemsCorporation. MTS initially occupies 20,000square feet of a leased space in the RIbuilding at Highway 169 and County Road18. MTS Systems Corporation defines itsmarket as the segments of industry that testmaterials, structures, and manufacturedproducts. Its test systems stress closed-loopelectrohydraulic control involving advancedconcepts in mechanics, electronics, andhydraulics.

The order backlog at the end of fiscal year1966 is largerthan totalsales for1965. Tomeet thedemands ofthe high vol-ume oforders, MTSconstructs a new facility at Mitchell Roadand State Highway 5 for 1967 occupancy.The staff for the new company averages30 years in age.

1967MTS movesto the new40,000 sq.ft. plant atMitchellRoad andStateHighway 5.

1968MTS has a 100% stock split.

The stock purchase plan for all employeesand a stock option plan for key employeesare introduced.

1969The first Employee Activity Committee(EAC) is formed at MTS to organize andplan events for MTS employees.

The MTS library is launched with half adesk and one shelf of books.

The Customer Training School is formallyestablished. The first course: Repair andMaintenance of MTS Equipment. In devel-opment: a modular seminar on the use ofclosed-loop equipment for mechanicaltesting.

MTS makes a handshake agreement withHarry Meline, Gull Engineering, for themanufacture of extensometers.

1950s

Year sales in number ofmillions employees

1967 $5.4 187 1968 $6.4 192 1969 $7.1 2541970 $10.8 277 1971 $10.3 286 1972 $13 322 1973 $15.2 351 1974 $18.7 452 1975 $21 390 1976 $24.1 476 1977 $31.7 6481978 $44.9 735 1979 $55.8 812 1980 $67.1 894 1981 $65.4 851 1982 $65 8831983 $67.4 829 1984 $75 973 1985 $96 1161

Year sales in number ofmillions employees

1986 $109.7 1195 1987 $112 1236 1988 $129 1319 1989 $153 1397 1990 $160 1382 1991 $158 1374 1992 $161 1408 1993 $185 1446 1994 $200.6 1626 1995 $234.1 1669 1996 $261 1747 1997 $303.5 2018 1998 $339.7 22661999 $389.6 22662000 $389.4 23642001 $397.4 22332002 $355.9 18642003 $324.2 1630

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Timeline

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1959Research, Inc. builds its new plant in EdenPrairie at the corner of what was Highway169 and County Road 18. Research, Inc. isstill housed in this facility today.

Research, Inc. acquires Monterey Research,Inc. of Monterey, California. The fourfounders of Monterey Research had beenat the missile division of Firestone and leftto start Monterey Research, which becomesthe foundation for the MTS Shock andVibration Division.

Research, Inc. goes public with stockoffering.

1962One of thefirst tenload framesis shippedto theUniversityof Illinois.ProfessorJoDeanMorrow, an avid user, establishes arelationship with MTS and becomes a keyconsultant. Morrow shows MTS how toexploit the technologies it has been apply-ing to mechanical structural testing in thefield of material testing.

1963A Materials Test Systems (MTS) Division isformed at Research, Inc. to build and mar-ket electrohydraulic test systems. The com-pany now consists of a Controls Division,which deals with temperature-related test-ing and an MTS Division, which is initiallyoriented toward material and structuraltesting. The MTS Division consists of 20employees selected from the RI staff. As ofmid-1999, Neil Petersen is the last originalMTSer still with the company.

1965The MTS Division begins marketing inEurope by exhibiting at Hanover Fair inWest Germany. Max Russenburger, a Swissengineer, attends the fair and later helpsMTS develop hydraulic, resonant-fatiguemachines.

1960s

Eden Prairie, MN

Page 3: The History of l MTS Systems Corporation

MTS stock is carried in national over-the-counter listings for the first time. Its NAS-DAQ trading symbol: MTSC.

MTS opens a sales and service office inMunich, West Germany.

1970MTS acquires Monterey ResearchLaboratory, Inc. and its line of shock-test-ing systems from the “new” Research, Inc.With the Monterey Research acquisition,MTS broadens its capabilities into advancedshock testing equipment for such uses asauto safety, crash research, cargo damagetesting, and packaging product research.This acquisition provides the basis for theShock and Vibration Division.

Ruedi Hartmann is the top sales represen-tative in the US. Late in the year, MTSacquires H.R. Hartmann Co. Inc. and beginsa transition from external sales reps to aninternal sales team. Ruedi becomes MTSsales manager and then one of the compa-ny's first functional vice presidents in 1974.

1971The MTS plant expands to 82,000 sq. ft.

Herbert C.Johnsonbecomeschairman ofthe board,George N.Butzow presi-dent.

MTS SystemsMunich subsidiary isformed; this later becomesMTS Systems, Frankfurt.

MTS-Monterey is consolidated withMinneapolis. Of Monterey's two dozenemployees, about half a dozen move toMinneapolis. Two people who made themove are still at MTS in 1999: John Bealand Dick Strand.

The Minneapolis plant installs a computer-based management system.

MTS designates two vice presidents, R.I.Hannum as v.p. and treasurer, and H.R.Hartmann as v.p. and secretary.

1972MTS establishes a manufacturing, sales, andservice subsidiary in West Berlin, Germany-MTS Systems GmbH. A 24,000 sq. ft. plantis acquired in West Berlin.

MTS-Minneapolis changes to a 4-day workweek-9.33 hours per day.

MTS forms MTS-Japan, a 50% owned jointventure in Japan with offices in Tokyo.Our joint venture partner is Alan Konno.

1974The plant is expanded from 82,000 to150,000 sq. ft.

1975Total international new orders equal totaldomestic new orders for the first time.MTS (Japan) Ltd. becomes a whollyowned subsidiary.

Herb Johnson leaves MTS and joins DataMyte Corporation. George Butzow is electedCEO and chairman of the board.

MTS France becomes a subsidiary.

1976MTS acquires the Motion Systems productline from Washington Scientific Industries(formerly Washington Machine and ToolWorks). Washington Scientific was theprogenitor to the original Research, Inc.,which was in turn theprogenitor of MTSSystems Corporationand the present dayResearch, Inc.

Don Sullivan comes toMTS from Rosemount,Inc. as a vice president.

1977MTS publishes the first issue of“InnerLoop,” a newsletter for employeesand their families.

MTS has a 100% stock split.

From 1975 to 1977, employment increases66%.

As part of anexchange-of-scientistsprogram,Soviet scien-tists singfolksongsfor MTS reps at a party on aLake Minnetonka houseboat.

1978The Eden Prairie, Minnesota, plant expandsto 193,000 sq. ft. It includes the company'sfirst “hot lunch” cafeteria.

The People's Republic of China marketopens up to MTS with a first order forfour road simulators and a torsional reso-nant system.

U.S.S.R. invades Afghanistan, and technol-ogy shipments to U.S.S.R. are embargoedby the U.S. government. MTS's sales inEastern Bloc countries, some 10-15% of

total sales at that time, fall to less than 1%of total sales within six months.

The response to the stock purchase planis overwhelming. Half the employees par-ticipate, buying 42,000 shares.

1979MTS purchases its first two desktop com-puters-the Apple IIs.

1980A subsidiary, MTS United Kingdom, isestablished in Gloucester.

An MTS Hong Kong subsidiary is alsoformed. The main plant is expanded from193,000 to 293,000 sq. ft.

1982George Butzow is elected chairman ofthe board and Donald Sullivan is namedpresident.

1983MTS receivesits largestorder to date,a $9.3 mil-lion LaserArticulatingRobotics sys-tem (LARS)from theU.S. Navy.Among the new technologies involved:sensing technologies, servoelectric actua-tion, and laser beam technologies.

1984MTS acquires Temposonic, Inc., Plainview,N.Y., which becomes MTS Sensors Division.With this purchase, MTS adds a newstrategic position in the industrial automa-tion market with sales of $3 million.

MTS has a 50% stock split-3:2.

1985Fourteen patents-more than have beenawarded in any previous year-are grantedto MTS.

MTS acquires Vektronic Manufacturing,Inc., Carlsbad, Calif., which becomes asubsidiary. Vektronics is a startup compa-ny building systems for automating themanufacture of wiring harnesses. With thisacquisition MTS positions itself in auto-mated electronic production.

MTS opens new sales and service officesin Beijing, PRC, and Gothenburg, Sweden.

The MRPII CINCOM business system isinstalled in Eden Prairie.

Johnson

Butzow

Sullivan

Soviet Visit

1970s1980s

3

Page 4: The History of l MTS Systems Corporation

1986MTS establishes a no-smoking policy.

In the fall of 1986, MTS reaches $100 mil-lion in annual sales for the first time.

MTS celebrates its20th anniversary.The party is heldat the internationalMarket Square inMinneapolis. Manyof the people whohelped build MTSfrom the begin-ning attend.

MTS SystemsBrazil Sao Paulois established.

The Modeling Analysis and DesignDivision writes its first order. The newdivision emphasizes computer simulationfor mechanical property prediction.

MTS introduces TQM.

All employees attend 2-1/2 day off-sitetraining on quality and meeting customerexpectations.

1987MTS has a 50% stock split. MTS stockmarket value exceeds $100 million.

Don Sullivan becomes CEO.

1988MTS sells its Vektronics subsidiary.

Sensors Division and 35 of its employeesmove to a new 40,000 sq. ft. plant in Cary,North Carolina.

1989MTS acquires Systems IntegrationTechnology, Inc., SINTECH, a softwareand electromechanical material testmachine company.

MTS acquires H W Hellwig, GmbH-SensorsTechnologie, GmbH, Ludenscheid,Germany, which becomes the Europeanheadquarters for its sensor business.

The first Quarter-Century Banquet is heldon April 21. Charter members are: DennisAndersen, Bob Arneson, Bernie Bishop,George Butzow, Frank Dalling, Marty Gram,Bob Hansen, Ron Helgeson, Gary Hohage,Larry B. Nelson, Ralph Pulkrabek, BobSornsen, Dick Stacey, Fran Thompson,John Tomschin, and Harry Winslow.

1990MTS expands its Eden Prairie facility to383,000 sq. ft.

1991The Sintech Division moves to a 25,000 sq.ft. plant in Cary, North Carolina, next doorto the Sensors Division; fifteen employeesmake the move.

1992Five TQM Operating Objectives are definedto help employees achieve improved qualityand profitability.

MTS Korea is formed as a subsidiary.

Custom Servo Motors, a startup company inNew Ulm, Minnesota, is acquired by MTS.

1993The Machine Controls Division merges withCustom Servo Motors, resulting in a com-plete line of high-performance MaxPlus™

motors and MotionPlus™ controllers.Custom Servo Motors moves into a new14,000 sq. ft. facility in New Ulm, Minnesota.

MTS begins catalog sales under the “TestGroup” name.

The first MTS Technology Conference andBanquet are held. Impactful innovationsare discussed and 23 U.S. Patent plaquesare presented from the past three years'inventions. An award for innovation calledthe HERB is presented to Herb Johnson,founder and first CEO.

1994MTS Systems, GmbH sells its old buildingand moves into a newly acquired 75,000sq. ft. facility in Berlin.

MTS acquires Adamel-Lhomarghy, a Frenchmanufacturer of material testing systems.

One of the MTS founders, George Butzow,retires from MTS, carrying with him thetitle of chairman emeritus. Don Sullivan iselected chairman of the board.

The United Kingdom Sales and Serviceoffice is the first MTS facility to gain ISO9002 certification; the manufacturing oper-ations of Sintech, Sensors Division, andSensors Technologie are the first organiza-tions to become ISO 9001 certified. By1998, most major MTS facilities around theworld are 9001 or 9002 certified.

MTS acquires PowerTek, Inc., a manufac-turer of dynamometer and clean-air testingsystems for the auto/truck and construc-tion equipment industries.

1995MTS Sensors Technology, Japan, opens in May.

MTS finalizes an agreement to purchase GullEngineering, an exclusive extensometer ven-dor of the company. Gull Engineering wasfounded by Harry Meline.

MTS acquires Incon, an exclusive poweramplifier vendor to the company's CustomServo Motors subsidiary.

The company's Internet site is launched.And the Intranet is, in effect, born withthe development of its first “killer app”-Documents on Demand.

1996The Advanced Systems Division books a$23.3 million order from the Japanesegovernment for an earthquake simulationsystem. It is the largest single order receivedby MTS to that point.

MTS stock splits two for one.

Electronic Product Fabrication moves outof Eden Prairie to a new facility inChaska.

MTS acquires Bregenhorn-Bütow & Co.,of Freiburg, Germany, to become theEuropean headquarters of Custom ServoMotors. The organization is a supplier oflow-power electronic servomotors anddrives to the European manufacturingmarket.

1997MTS France and Adamel-Lhomarghy arecombined and become MTS Systems SA(Paris).

Sintech becomes MTD-Raleigh.

1990s

Eden Prairie, MN

Berlin, Germany

4

Page 5: The History of l MTS Systems Corporation

In May, MTS breaks ground for the seventhaddition to the Eden Prairie facility-a 43,200sq. ft. project to consist of high bay space.

In November, worldwide employment sur-passes 2000 for the first time.

MTS Automotive Sensors, GmbH, is formed.

The AeroMet subsidiary, a contract manu-facturing service providing the first com-mercial application of a new technologycalled Laser Direct Metal Deposition, isformed.

1998On February 2, for the second time in twoyears, MTS stock splits two for one.

Chip Emery is hiredfrom Honeywell, Inc.to be MTS Systems'president and CEO.Don Sullivan remainschairman of the board.

MTS acquires NanoInstruments Inc., ofOak Ridge, Tennessee. Nano manufac-tures instrumented indentation systems forultra-low-force nanoindentation testing ofsurfaces and thin films.

MTS acquires Performance Controls, Inc.,(PCI) of Horsham, Pennsylvania, a manu-facturer of high-performance poweramplifiers for factory automation and mag-netic resonance machine applications. PCIbecomes part of the MTS Automation unit,headquartered in New Ulm, Minnesota.

MTS acquires SDRC Noise & Vibrationbusiness line and launches the MTS Noise& Vibration division.

MTS reaches agreement with StructuralDynamics Research Corporation (SDRC) toacquire SDRC's I-DEAS® Test software andnoise and vibration services businesses.An SDRC consulting and software sup-port service organization, made up of 38employees, becomes part of MTS's newNoise and Vibration Division.

1999After an intensive 16-month, $13M world-wide development and training initiative,MTS launches its SAP R/3 business infor-mation system. This initial phase of theR/3 program includes all customer orderentry, manufacturing, financial, and humanresources activity functions. Facilitiesinvolved include Eden Prairie and Chaska,Minnesota; and Berlin, Germany; withlinks to operate in Detroit, Michigan; andRaleigh, North Carolina.

Chairman of the Board Don Sullivan retires.Chip Emery is elected Chairman.

MTS merges with DSP Technology, the com-pany's first acquisition involving anotherpublicly held company. The merger com-bines DSPT's state-of-the-art software, dataacquisition, and control systems with MTS'scomputer-based mechanical design andsystem integration skills. As a result, MTSnow offers customers integrated solutionsfor engine and powertrain design processesin both the automotive and aerospaceadvanced research and development markets.

The first worldwide supervisors meeting ishosted by Chip Emery.

The Intranet comes of age and is designatedthe company's “primary employee commu-nications vehicle.”

MTS Automation purchases linear motortechnology from Airex Corporation, pro-viding an important growth path and anatural extension to the company's inno-vative servo technology. Automation alsoacquires the PowerBlokTM product linefrom Semipower, Inc., broadening thecompany's amplifier product offerings inthe high-volume OEM markets.

2000SAP R/3 version 4.6 is implemented.

MTS establishes aJapan OperationsCenter in Tokyo,providing space tobuild componenttest systems as wellas to offerenhanced democapability, calibra-tion services, andrefurbishment workfor the region's customers.

MTS Automation acquires the assets andtechnology for all motor drive productsfrom SemiPower Systems, Inc., includingDriveBlok™, IndexBlok™, SpindleBlok™, andrelated custom products sold to privatelabel customers. The acquisition providesa complete line of proven SensorlesServo®

Technology products used in velocity andposition controlled applications.

The largest single order ever received byMTS, in terms of total contract value, isawarded by the US Army. The total con-tract value is $37-million, for the design,development, manufacture, and installationof an advanced roadway simulator at theU.S. Army's Aberdeen Test Center.

Temposonics Sensors begin production inAsia for the first time, at the SensorsTechnology facility in Machida, Tokyo.

2001MTS enters into a partnership withMechanical Dynamics, Inc. and nCodeInternational - to form “The SmartSimCommunity.” The SmartSim Communitypromotes the use of an integrated suiteof industry-leading test hardware, virtualprototyping software, durability assessment,and information management tools. Usedin combination, these tools can dramaticallycut the time and cost of vehicle perform-ance evaluation while ensuring the qualityof analysis results.

A $13-million order is received from a majorinternational automotive manufacturer for afull suite of vehicle design validation tools-the largest order of its kind in companyhistory. The suite consists of a combina-tion of MTS's physical testing equipment,specialized software products and dedicat-ed process consulting resources, and soft-ware from SmartSim Community members.

A new Performance ManagementDevelopment System is introduced inMinneapolis that integrates all parts of anemployee's performance.

The Global Business Management System,the name of the project to roll out SAP toour European offices is approved. It is acontinuation of the strategy to create aglobal business infrastructure to manageour business.

The Vehicle Dynamics Division, MIPS, andNVD are re-organized and combined togive MTS a more focused, market-drivenapproach to the automotive industry. Thename of the new group is IntegratedVehicle Dynamics Development. The goalis to provide customers with integratedsolutions that offer superior value.

MTS's Chaska manufacturing facility andorganization is acquired by Turtle MountainCorporation. Chaska continues to providecontract electrical manufacturing servicesto MTS, allowing MTS to attain greatereconomies of scale.

MTS's Automation Division moves into itsnew 79,000 square-foot facility in NewUlm, Minnesota. All MaxPlus® rotary andlinear motors, MaxPlus® analog and digitaldrives, SensorlesServo™ product line, anda variety of special custom amplifiers aremanufactured there.

Turtle Mountain Manufacturing Corporationacquires MTS's Chaska, Minnesota, basedelectronic circuit board operations.

2000s

Emery

5

Tokyo, Japan

Page 6: The History of l MTS Systems Corporation

2002MTS appoints KPMG LLP as the company'sindependent auditor, replacing ArthurAndersen LLP.

AeroMet receives the first award of a$19.4-million multi-year agreement fromthe U. S. Defense Logistics Agency (DLA)as part of the government's “IndustrialPreparedness Program.” This is the largestaward in AeroMet's history to this point.

2003MTS divests its Gradient Amplifier businessbased in Montgomeryville, Pennsylvania.

MTS completes agreements for the sale ofits Automation Division based in New Ulm,Minnesota, to Parker Hannifin Corporation.

The company's test equipment businessunits are consolidated into the MTS Testorganization. The move leverages the com-pany's expertise in the precise control offorces and motion across targeted groundvehicle, aerospace, materials, and civilengineering markets. The new divisiontogether with the Software and ConsultingServices Division comprise the company'sTest segment, formerly the MechanicalTesting and Simulation segment.

Two large orders, together totaling in excessof $45 million, are announced. The ordersare both multi-year, international contractsfor test equipment, test software, and testsupport, and represent the largest order inMTS history to date.

AeroMet is honored by theDoD with the DefenseManufacturing TechnologyAchievement Award for thetechnology transfer and com-mercialization of Laser AddedManufacturing capability.

1957 First use at Research Inc. (RI) of hydraulicservovalves. Application: testing helicopter lagdampers. The servovalve was made by Pegasus.The second application was for aircraft structuraltesting for McDonnell Douglas Aircraft.1959 Lockheed Georgia approaches RI to suggestthat the electronic controls that RI is already usingcould be combined with hydraulic actuators to simu-late the fatiguing of an aircraft. The resulting proj-ect-a fatigue test system for the C130-is RI's firstmajor electrohydraulic system and the beginning oflife testing of aircraft in the U.S. The LC5131 Load Controller is manufactured (tubetype).1960 The LC7717 Load Controller is built forBoeing.1961 First Model 5230 solid state (non-tube) is built.(Plug-in cans used as modules.)1962 Model 401 series Servac is the first printedcircuit board servocontroller built. It has single-range capability.The first smooth column test frame is offered in aform of a stack-up, three poster system.1964 MTS Division of RI installs the first electro-hydraulic road simulator at Cadillac Division ofGeneral Motors. This installation is a key project forMTS because it breaks the division out of its previ-ous dependence on government aerospace anddefense contracting and opens up the private sector.1965 The Model 425 is added to give multipleranges to the Model 401 Servac.First servocontrolled spinning rotary actuator used ina four square drive shaft test system installed atSaginaw Steering Division of GM.1966 First system at Ford Dearborn to replicatefield recorded vertical durability schedules withdirect spindle coupled actuators.

1967 Smooth column clamps are developed andgo on to become an industry standard.1968 MTS develops the first computer controlledmaterial test system. Based on a DEC PDP-8 com-puter, the system simultaneously performs data pro-cessing and system control in real time. Among itsnew capabilities: test modes can now be changedin response to changes in the specimen during test-ing. The system computer is less powerful thansome of 1990's pocket calculators. The first earthquake simulator is installed at theUniversity of Illinois.1969 The 440 line of electronics is introduced.This third-generation controller is a real advance inmodularity and design flexibility, particularly in mul-tichannel applications. The 440 and its predecessors,the Servac and the 406, are still in use 25 years later.The 311/312 standardized material testing systemsare introduced. These are the first pre-engineered

systems that allow "canned" proposals to shortenlead times between the RFQ, quoting, and deliveryorder. Large 4 channel 500 Hz 30,000 lbf electrohydraulicshaker system installed at Lawrence Radiation Labs,Livermore, California.1970 The Standard 810 materials test architec-ture is developed. Consisting of inventoried systemcomponents, the 810 is the first system to shortenlead time between order and delivery.The Model 251 high performance Servovalve isdeveloped. The new valve expands the frequencyrange of stresses that can be simulated.The Model 443.11 Controller is introduced to satisfycustomer requirements for vibration and structuraltesting. Its architecture is similar to the Model 442.11.1971 The Model 406.11 Servo Controller is intro-duced as a low-cost servocontroller. The productline lives on for 22 years.Degree of freedom control (DOFC) developmentbegins. This key control system coordinates themotion of multiple actuators connected to one fix-ture that would otherwise work against each other.DOFC enhances a system's ability to adapt straight-line actuator motion required by an application; e.g.to control pitch and roll by coordinating the motion ofmultiple vertical actuators. DOFC initial application:earthquake simulators. The same technology is laterused in Flexmatix compression molding presses.The Materials Test Language (MTL) software lan-guage is introduced. The PDP-8 based language pro-vides the customer with a high-level language thatthey can use to do their own programming. BeforeMTL is developed, programs must be written inassembly language.First 326 Series 3 axis real time spindle coupleddurability system delivered to Volvo, Sweden.1973 MTS-Basic development begins as a replace-ment for MTL. It is developed to provide customersa friendly language they can use to program forthemselves. MTS-Basic today contains over 400 dif-ferent statements, four times the number containedin the average data management version of Basic.MTS builds its first production machines for manu-facturing:• production line equipment to test auto bumpershocks absorbers for the Mustang II, Comet,Maverick, and Pinto.• the HydraKupper forming press-the company'sfirst production machine, the HydraKupper spawnsmany technical innovations through the 1970s-suchas in seals, filtration, and controllers-to meet thedemands of millions of cycles on the factory floor..MTS builds the world's largest, most advancedcomputer-controlled earthquake simulator for theU.S. Army Corp of Engineers Construction ResearchLaboratory (CERL). Designed to evaluate the abilityof structures and products to withstand seismic dis-turbances, the machine can subject a 12-ton massto 40 gravities of force.

Product MilestonesProduct MilestonesAs Research Incorporated

As MTS Systems Corporation

6

Page 7: The History of l MTS Systems Corporation

MTS installs its first complete wave generator sys-tem at Oregon State University. MTS previously onlysupplied components to the prime contractor for aproject in Holland.1974 A Model 450 Servo Controller is offered formultichannel applications.1976 In September, MTS receives its largest con-tract to date: to build a mine roof simulator for theU.S. Department of the Interior's Bureau of Mines.The roof simulator system tests roof supports forthe use in a new longwall mining system which"walks" into a vein of coal and allows the mine roofto collapse safely behind it. Among the project'stechnical challenges is the geometrically largest andheaviest loading requirements of any simulator MTShas built.1977 Remote Parameter Control™ (RPC®) technol-ogy is developed for the Truck and Coach Division ofGeneral Motors. Its new control capabilities enablea test system to reprogram itself to compensate formechanical play in the linkages between actuatorsand test specimens. RPC technology is particularlyvaluable in road simulator applications.Three orders for rail car simulators, each in excessof $1 million, establish the railroad market for MTS.Three-variable control is developed. This basic archi-tecture combines three commands-stroke, velocity,and acceleration-to widen the band of frequenciesover which accurate closed-loop control can beexpected. Its first application: a Tuned Mass DamperSystem (TMD) to control motion in skyscrapers. Itsfirst earthquake simulation application is for AMN,Italy, in 1980. Three-variable control is also a keycontrol system for shock and vibration systems.Tuned Mass Dampers systems for the John HancockTower and Citicorp Center, New York are accepted.Wavemaker equipment for the U.S. Naval Academyis dedicated. The most sophisticated wave researchfacility in the world, this project along with theTMDs, provided work for many MTS employees dur-ing the recession of the mid-1970s.1978 Development of the Flat-Trac® system begins.The first order for the system, from Goodyear, iswritten in the fall of 1978. Developing the Flat-Tracsystem enhances the company's abilities in multiax-is sensing. The hydrodynamic bearing used to sup-port the flat surface is a technical enhancement aswell. Although they had already decided to buy acompetitor's machine, General Motors becomesconvinced that MTS knows more about belt track-ing-MTS gets the order.Evolving from the HydraKupper, a concept for a com-pletely new compression molding process emergesthat automates and improves the quality of "fiber-glass composite panels" for automobiles. In a jointdevelopment effort with GM, MTS drives the SheetMolding Compound (SMC) concept until 1987, whenGM decides not to internally manufacture outer carpanels with the SMC process. Two products for use on the factory floor as well asin the lab are introduced: the Optical Grid Analyzerand the Sheet Metal Formability test system.1980 MTS gets its first order for a compressionmolding press from GM.1981 The Model 445.11 Controller offersimproved automation features.The first digital control demonstration is conducted.

1982 The first MTS robot prototype is developed.This development, which builds on technology fromroad simulators, advances a number of key tech-nologies. It enhances servocontrol of mass-loadedsystems through new control compensations; it gen-erates a patented wrist design; it enhances the abil-ity to do on-the-fly mathematical transformation;and it evolves a new one-piece, triaxial load cell.MTS introduces the Model 448.82 and 448.85Controllers as part of the new 880 line of equip-ment. It is called our third-generation controller andincludes crosshead load cell and integral actuatordesign. Called the Greenhills project, it is sold asthe "Cadillac" of our systems. The first MTS press for fabricating composite bodyparts is delivered. The design, which generates 12patents, builds upon and enhances multiple MTStechnologies from degree of freedom control to col-umn clamping.1983 The 880 Materials Test System is introduced.This system incorporates many new technologiessuch as integrated load cells and actuators and theextensive use of microprocessor technologies. Thisautomated offering positions MTS as the leadingtechnology supplier of standard dynamic materialtest systems and forms the base for nearly all MTScustom systems.The first bionix axial-torsional system is sold for test-ing orthopedic medical devices.The 445.11 Controller is removed from our productoffering list. The 448.85 Controller replaces it.IHI, Japan, buys the first six-degree-of-freedomearthquake simulator.1984 "R&D Magazine" recognizes the OralEnvironment "chewing machine" simulator as one of the year's 100 most innovative products.1985 The new 810 is introduced. Replacing the old810 with hybrid analog/digital control, this systembecomes the workhorse of material test systems. Bythe end of FY86, 120 systems are sold and its 458Controller is retrofitted to 70 MTS and competitortest systems.The Model 100 Light Manufacturing Tool (LMT), arobotic device, is introduced. The LMT developmentinvolves the company's first use of PASCAL, advancesin wrist mechanics, and developments in servoelec-tric actuation.Series 458 MicroConsole Servo Controllers devel-oped for single and multi channel systems.After selling numerous unique and custom-designedroad simulators, MTS introduces the Model 329Multiaxial Road Simulator as a standard product. By2003, over 300 corners of the 329 product familyhave been delivered and revenue from this productfamily has exceeded $130M.1986 Pseudodynamics (a new technique for earth-quake testing) is used for the first time.The Torsional Dynamics Division is formed to devel-op a market for MTS in spinning torsional vibration,power transmission dynamometry, and related fields.1990 MTS introduces the newest digital technol-ogy called TestStar™. It offers controller electronicsthat use a PC to run the customer's test.1991 MTS ships the first TestStar system.The first Aero-90™ aircraft structural test controland analysis system is installed at SNECMA inVillaroche, France.

1992 The first hip simulator, designed to evalu-ate the wear resistance of an artificial hip ball inits cup, is sold to Howmedica.1993 The Flat-Trac Roadway Simulator is recog-nized by "R&D Magazine" as one of the 100 mostinnovative products of the year.The LT420 level gauge goes from conception to mar-ket in only four months, significantly expanding theavailable market for Level Plus® products.The U.S. Army Corp of Engineers ConstructionResearch Laboratory (CERL) contracts with MTS toupgrade the earthquake simulator we provided themin 1973. Upon completion, it is again considered thecountry's most advanced earthquake simulator, with atriaxial system replacing the previous biaxial system.The Model 407 single channel, portable ServoController is introduced as a replacement for the 406.The first 858 Mini Bionix® Tabletop ServohydraulicSystem for low-force testing is sold; later itbecomes the base system for applications in manyother markets.1994 FlexTest™ II digital controls system islaunched with options for general purpose, multista-tion testing and single station, dedicated systemscontrol.1995 The first medical profiler system is sold toHowmedica.Sensors Technologie develops SARA, a customintegrated circuit allowing high-resolution sensorreadings without recirculation (recirculation is mul-tiple pulsing of the waveguide for each reading).The first Aero-90 LT Test System is delivered toDowty Aerospace.1996 RPC III Analysis and Control software is thefirst MTS product to be launched on the Intel PC,Microsoft Windows NT platforms, leading the wayfor all MTS controls and analysis products.Thirty-two percent of the year's revenues come fromnew products or technologies introduced within thepast three years-an all-time "entrepreneuring andmarket creation" record.The Tytron™ system is introduced. This system wasdeveloped for testing materials and packages usedin microelectronics, as well as for general materialtesting on tiny specimens or soft tissues, such as anartificial ligament used in the biomaterials area.Custom Servo Motors introduces the MaxPlus™ 12-inch servomotor, delivering up to 90 horsepower ofcontinuous torque. The MaxPlus 12-inch motor isthe most powerful, high-performance, permanent-magnet, brushless servomotor on the market, creat-ing significant new opportunities in the automationof industrial processes.1997 The MTS Engineering Office®-NVH applica-tions suite is introduced to extend VDD road simula-tion systems with noise, vibration, and deflectionshapes measurement and animation.The $23.3-million earthquake order received fromJapan's Ministry of Construction in 1996-the largestsingle order ever received by MTS to-date and thelargest seismic system ever installed, capable ofshaking 300-ton specimens-is accepted in 1997,within 13 months of receipt of the order.Temposonics® linear displacement sensors aredesigned to be fully modular, allowing quicker, moreefficient introduction of new products. A newgrounding and shielding scheme is also introduced.

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Page 8: The History of l MTS Systems Corporation

Temposonics III versions are introduced to be elec-tronically compatible with the increasingly popularDeviceNet™ (in the U.S.) and Profibus™ (in Europe)field-device communication protocols.The Spinning Wheel Integrated Force Transducer(SWIFT™) is introduced, significantly simplifying dataacquisition and simulation testing of automobiles.The TestStar IIs digital controller is introduced andshipped. It is designed for single channel, single axistesting and represents new universal conditionersand an implementation of a software platform usedon multiple products.Wholly owned subsidiary AeroMet is founded upontechnology that produces high-quality titaniumstructures using a laser and titanium powder.1998 Advantage™ Wedge Action Grips are intro-duced. It is the result of the first international productconsolidation effort between Paris, Raleigh, andMinneapolis. Each division had their own version ofa mechanical wedge grip, creating overlap and inef-ficiency. Instron® had long held this market; theywere even selling their grips on competitors' systems.The Advantage grips proved that MTS Minneapoliscan make a very functional competitive product inthe electromechanical market while maintaining ahigh margin.The new Temposonics Auto-SE sensors provide costreductions of up to 90% and the opportunity to pro-vide sensors to a vast array of new markets andapplications, such as medical diagnosis, agriculturalmachines, appliances, exercise equipment, aeronau-tics, mobile equipment, etc. The non-contact Auto-SE sensors do not wear, are easily protected fromthe elements, and have a long life expectancy withvirtually no maintenance requirements. Fatigue and fracture software applications arereleased for TestStar II and TestStar IIs platforms byusing newly developed control platform interface(CPI) libraries. The CPI libraries allow all fatigue andfracture applications to be based on the sameunderlying code, minimizing maintenance and maxi-mizing common features. CPI libraries are also usedto port the TestWorks® controller to TestStar II andTestStar IIs controller platforms.The Tytron 250 system is introduced as a significantre-design from the product that originated in 1996.It improves on the original by offering improved airbearing configuration and performance, frame align-ment, vibration absorbing construction, ease ofassembly, and reduced cost. The Tytron system wasthe first and remains the only linear-motor basedmaterial testing machine on the market. No othermachine can achieve its dynamic performance atlow forces and displacements.

The new 329 6DOF Road Simulator Corner is unveiled,offering major improvements in road simulationtesting, and providing an important link betweenphysical testing and virtual testing and modeling.MTS delivers the first production order of the pas-senger car size SWIFT sensor to Chrysler Canada.1999 The Alliance™ load frame is introduced-thefirst 100 kip capacity tabletop electromechanicalproduct available from MTS. It combines the attrib-utes of two distinct product platforms into one prod-uct. Improved performance specifications, the intro-duction of self-ID transducers, and new high per-formance electronics, all packaged in a moderndesign, combine to improve MTS's electromechani-cal competitiveness worldwide.The MTS TestWorks 4 material testing software isoffered. It is a stand-alone package that allows theuser to develop test methods, run tests, analyzedata, and report results, all available within onesimple-to-use interface. TestWorks software is usedto test such materials as plastics, metals, ceramics,fasteners, rubber, textiles, and composites.Collaboration by MTS and Paw-Taw-John results ina new generation, closed-loop control system, theServoSensor™. It offers a more compact package atlower total cost while cutting response time to halfthat of other industrial closed-loop systems. It capi-talizes on smaller, more powerful microprocessorsand advances in surface-mount technology to elimi-nate the need for an external controller. For the firsttime it is possible to fit the servocontroller, drivemodule, and sensor electronics in the sensor head.The 359 tabletop Load Frame is introduced and con-solidated into the 858 Mini Bionix and TableTopapplications. This design provides axial and lateralstiffness improvements, longer strokes, increaseddynamic performance, and more compact packaging.MTS introduces the first liquid level gauge in theindustry with a flexible, removable waveguide andintegral electronics with volume strapping conver-sion. The new M-series gauges incorporate the lat-est developments in the SARA chip and the newSE2 waveguide. The M-series will take the SE2 tonew applications with a removable/flexible versionfor lengths greater than 10 feet.The 505 SilentFlo™ power unit is introduced. Thetechnology addresses evolving customer demandsfor employee-friendly, aesthetically pleasing designsand is available in cost-controlled standard configu-rations.Porsche AG accepts its first MTS K&C (Kinematicsand Compliance) test system.MTS's SWIFT™ wheel force measurement system isrecognized by R&D Magazine as one of 1999's 100most technologically significant achievements. MTS delivers its first Wind Tunnel Rolling RoadSystem to a Formula 1 customer.

2000 The first AeroPro SDAC Systems are deliv-ered to Honda and Lockheed Martin.MTS commissions its first production linear frictionwelder, designed to weld titanium fan blades ontoaircraft jet engine compressor discs. A second, larg-er linear friction welder is commissioned in 2001.MTS books an order for the Aberdeen Test CenterRoadWay Simulator to test military multiaxle vehi-cles with and without trailers. At $38 million, this isMTS's largest order received to date.A key controller is introduced under two brandnames—TestStar IIm for the infrastructure materialtest market and FlexTest GT for the vehicle compo-nent test market. This multi-channel, multi-stationcontroller is to prove very popular with customersand to be the most broadly used and flexible con-troller available.2001 MTS builds the first Flat-Trac LTR Tire TestSystem that extends the product family to light truckand racing tire testing. The significant new capabilityfeatures lateral force capability of 30000 N, roadwayspeed to 200mph, and wheel torque to 5000 Nm.The National Advanced Driving Simulator (NADS) iscommissioned at the University of Iowa. NADS isthe largest and most advanced driving simulator inthe world. The MTS motion system features a hexa-pod capable of carrying a full-size passenger car ontop of a 64x64 foot x-y table.MTS delivers 28 servo valves to the NIED project inJapan. These are the world's largest servo valveswith a flow rate of 15,000 liters/minute. The NIEDearthquake simulator will be able to shake a four-story, 1200-ton building on its 15x20 meter table. MTS receives a $9.6-million contract from SauberAerodynamics LTD, the aerodynamic testing arm ofthe Formula 1 team Sauber Petronas of Switzerland.The contract is for the design, development, manu-facture, and installation of a Wind Tunnel RollingRoad and Model Motion System. The system is tobe used for aerodynamic testing of full-size Formula1 racecars and model scale cars at speeds up to180 mph. 2002 The MTS Model 353 High Frequency Multi-Axial Simulation Table (MAST™) is named one of thetop ten new technical achievements introduced at theyear's SAE Congress in Detroit. The high frequencyMAST uses a unique, patent pending design toattain six degree of freedom vibration up to 500Hzfor both durability and noise and vibration testing. The FlexTest SE digital controller is introduced in2002, giving suppliers new options for conducting avariety of simple tests and the flexibility to upgradeeasily when their needs become more complex.

100-013-969a HistoryTimeline PRINTED IN U.S.A. 7/04

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