Manufacturing Futures

1. Manufacturing Futures Bill Keese, SVP R&D February 11-12, 2013 West Coast User Group

2. Disclaimer • This roadmap is for information only and represents QAD’s current view of its product direction. None of the information should be interpreted as a commitment on the part of QAD Inc. • QAD works closely together with customers, user groups and analysts in validating and updating the product direction. The product roadmap is therefore subject to change.

3. New Manufacturing capabilities. “What’s in it for you?” Effective Enterprise “An Effective Enterprise is one where every business process is working at peak efficiency and perfectly aligned to the company’s strategic goals. ”

4. New Manufacturing capabilities. “What's in it for you?” Objectives Review key MFG functions • Understand the key roles in operations • Understand the business processes involved • Understand what we are delivering • Understand “What’s in it for” each key role

5. New Manufacturing capabilities. “What's in it for you?” Role Based access

6. New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations • General • Plant Manager • Operations Manager (VP Manufacturing, Supply Chain) Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets(EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler

7. Why are we not synchronized today? Click For Next Point 1 Working with disconnected tools Stage Capability Tuesday 9am: Updates today’s production schedule to accommodate rush order Scheduler Production Materials Buyer/Expeditor + MRP Supplier Schedules System Data System Data Demand/Inventory Reports + ? Production Schedule (version A) Production Schedule (version A.1 Modified) Production Schedule (version C) Manual Adjustments Production Schedule (version B)

8. New Manufacturing capabilities. “What’s in it for you?” Master Scheduler’s Challenge Executives Profits are slipping and our ROI must improve; the stockholders are not happy! Finance There’s too much cash tied up in inventory! Manufacturing There are too many changes! Provide fixed schedules and the correct parts and delivery will improve. Engineering There’s a new product introduction scheduled for the fall! But we need more time for design! Sales Service levels are down. I need more inventory! Whatever it takes to keep the customer happy!

9. New Manufacturing capabilities. “What’s in it for you?” Master and Production Scheduling Objective: “Say YES and Mean YES” • Make Supply = Demand • New orders/rescheduling as necessary and feasible/order splitting • Balance flexibility with stability • Ensure Smooth Flow and Sensible Sequence • Leveling and sequencing • Not automatic (respects time zones) • Communicate Problems (and Solutions) • Silence is approval

10. New Manufacturing capabilities. “What’s in it for you?” Are Objectives Being Met? • Measurements (KPI’s): • Improved Customer Service: • On time deliveries • Reduced back orders • Reduced Inventory Levels • Inventory turns • Reduced inventory investment • Stable Manufacturing Schedule • Increased production efficiency • Reduced set up costs/time, esp. teardowns and resets • Reduced overtime costs

11. New Manufacturing capabilities. “What’s in it for you?” Constraint-Based Master Scheduling Tool • Rebuilds Master Schedule • Aligns Supply and Demand • Smoothes Demand by Type • Backward/Forward (Daily) • Average (Time Period) • Production Leveling • EPEI • Capacity Constrained • Allocation

12. MSW – Master Scheduling Click For Next Point 1 2 • Auto-Level production line schedule - considering: • -Capacity Constraints • -Order Priorities • -Business Rules Leveling Methods – “Allow me to simulate different plans to achieve an appropriate balance of on-time delivery and capacity and product mix.”

13. New Manufacturing capabilities. “What’s in it for you?” Production Scheduler’s Challenge Manufacturing Labor/Machine resources not available for 2nd shift – what are you going to do about this? Finance High variances to “plan” (extra set up, downtime, labor), you need to optimize your production schedule Sales Drops in a new high priority order due tomorrow, which order can be moved? Materials You can’t change the schedule on short notice and expect the materials to be available.

14. PSW – Production Scheduling Click For Next Point 1 2 • Create an executable production schedule: • Sequence production orders by key attributes to achieve operational efficiency • Check material availability to confirm ability to execute schedule & release Dynamic Component Status & Drill Down – “Enables me to create a production schedule I can be highly confident in to execute – knowing the materials will be there.”

15. PSW – Production Scheduling Click For Next Point 1 2 • Establish schedule meeting both maintenance and scheduling needs: • Review planned maintenance orders for responsible resources and start dialogue EAM Integration – “Enables me to see maintenance planning around my resources - to start a dialogue - and monitor progress of when the work will be complete.”

16. New Manufacturing capabilities. “What’s in it for you?” New Features for the Schedulers • Assign Need Date to orders • Master Schedule by Quantity to Complete • Production Schedule by Quantity to Start • Schedule Work Orders on Production Lines • Default BOM’s and Routings by Production Line • Create schedules for work orders • Schedule Management • Consume Oldest Orders first, or Use Consumption Window • Kanban/Lean Scheduling using Repetitive, MSW/PSW

17. New Manufacturing capabilities. “What’s in it for you?” New Features for Production Control • Allocate /Pick Orders prior to Release • Issue or Backflush by component • Pick and Issue or Pick and Transfer by item • Order or Bulk Picklists • Improved Order Sheets • Use same functions to manage Work Orders or Repetitive Schedules • Work Center and Production Line Reserve Locations • Location Availability Check

18. New Manufacturing capabilities. “What’s in it for you?” Material Planner’s Challenge Manufacturing Carry more safety stock in case of low yields/ schedule changes. We have to meet our schedules! Finance Inventory turn over is too low/ Inventory Investment is too high. Need to reduce inventory levels. Suppliers Cannot ship when requested. Is it ok to ship late? And please send us a forecast for the next 3 months Materials No shelf space for excess materials. You need to reduce safety stock Subcontractors What is the supply plan for sending me materials?

19. New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “I need to check the shortages for the parts I manage and determine what I can or need to do about the shortages.” Shifting demand priorities Material Delays – expiring inventory Monitor Material Shortages Material Shortages Internal Supply Chain Synchronization

20. Material Planner – Day In the Life Click For Next Point 1 2 Order Component Status (Shortage) Both the Scheduler and the Buyer have visibility of the material shortage and the impact to the production schedule

21. New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “Continuous improvement shows I have placed too many kanban cards in the loop. I need to revise the number of kanban cards in the loop so that they are correct for next month.” Too Many Cards In Kanban Loop GRC - Resize

22. New Manufacturing capabilities. “What’s in it for you?” GRC

23. New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “ We are ramping up a new subcontract supplier and I need to give them a supply schedule for materials supplied by us.” Subcontractor Supplied Company Materials Subcontract Supply

24. Subcontract Supply* Click For Next Point 1 2 • Create subcontract supply plan: • - Shows supplier what materials supplied when • Provides Inventory Traceability • - Provides for company or supplier ownership of material Automatic supply plan creation - “Enables me to help synchronize suppliers, track what inventory is sitting at suppliers and debit or credit expenses related to materials supplied to supplier.”

25. Manufacturing Summit – Subtle changes Big Impact New Features for the Material Planner • New GRC order Policy for planning Kanban items • Use Gross Requirements or MPS as source for Average Demand Calculation • Model Subcontract Supply loops for supplying materials to subcontractors with Kanbans – • Size Kanban loops using Workbenches or in batch mode.

26. New Manufacturing capabilities. “What’s in it for you?” Click For Next Point 1 Real-Time Synchronization • Visualized with in WB’s & Role Based Collections • Enabled through the CAC Component Check Availability Engine (MRE) not (MRP) Expeditor /Buyer Production Scheduler Materials Planning & Scheduling WB’s Shortage Monitor / Purchase Direct Manage Materials by Resource Release Production by Resource CAC ENGINE

27. In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make more effective planning decisions” Key benefits or features • Integrated planning and scheduling tool set • Simulate changes in real-time • Reduce planning and scheduling time and complexity • Compress manufacturing response • Provide ability to create effective plans and schedules • Enable to be proactive • Constraint-based master scheduler function complements MRP calculation Improved automation in master scheduling activities & improved visibility of demand, supply, and capacity allows master and production schedulers to focus more on exceptions and make better informed decisions faster

28. New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations • General • Plant Manager • Operations Manager (VP Manufacturing, Supply Chain) … Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets(EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler

29. New Manufacturing capabilities. “What’s in it for you?” Shop Floor Operator’s Challenge Supervisor We must meet to day’s schedule. You need to be more productive. Production Control Schedule change due to material shortage. Make these items first. Quality Why are we having defects? How many are you finding.? Show me the SPC chart Product Engineering We need to implement a new revision. Use this new spec. Tool Maintenance We need access to the machine for two hours for repairs

30. New Manufacturing capabilities. “What’s in it for you?” Day in Life Shop Floor Operator • Set up machines, tooling • Inspect & Monitor machines • Record Production Activity • Product Quality Control • Packaging End-of-Line • Move Materials

31. New Manufacturing capabilities. “What’s in it for you?” Shop Floor Operator– Day In the Life “What’s my schedule today? Do I have the materials and tools I need? What do I set up first?” View Production Schedule Daily Production Schedule Internal Supply Chain Synchronization

32. New Manufacturing capabilities. “What’s in it for you?” Production Operation Activity Collection

33. New Manufacturing capabilities. “What’s in it for you?” New Features for Shop Floor Operator • New UI’s for transactions. Work from a schedule to report activity. • More intuitive UI flow , fewer transactions • Report Repetitive and Work Orders from same UI • View schedules to be consumed. • Detail Allocations support component lot backflush reporting. • Integrated Kanban/repetitive transactions

34. In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make users in shop floor more productive” • Many enhancements to streamline receiving and picking processes • Ability to capture all material handling actions in real-time. Key benefits or features • Packaging setup and ability to uniquely identify packs will reduce time in data collection • Label printing services integrated with material flow reduces costs • … Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy

35. New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations • General • Plant Manager • Operations Manager (VP Manufacturing, Supply Chain) … Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets(EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler

36. New Manufacturing capabilities. “What’s in it for you?” Material Handling Pick / Move Make Receive Inspect Pack Put-Away / Store Pick / Move / Ship

37. New Manufacturing capabilities. “What’s in it for you?” Day in Life Material Handler • Unloading • Match & Receive • Transfer / Put-Away • Picking • Packaging & Labeling • Weighing / shipment data • Loading / dispatch shipments • Cycle counting • Account for all material handling

38. New Manufacturing capabilities. “What’s in it for you?” Serialization - Building Blocks • New/enhanced Functionality • Packaging • Serialized data management • Warehouse – serialized inventory • Label printing services • Communication and reporting • Data Collection services • Foundations • Native API’s for all key Inventory Transactions • Expanded QXtend coverage • Ease of integration & support for data collection

39. In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”More productive material handling” With serialization material / packaging handling… • streamlines receiving and picking processes • Ensures all data collection of material handling can be done in real-time Key benefits or features • Decrease transaction time / cost of material handling • Improved Inventory Record Accuracy • Improved quality in planning & scheduling • Increase Customer Performance / Reduce customer complaints • Comply with standards trading partners Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy, increase quality while managing data with higher granularity to track & trace inventory in the supply chain

40. New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations • General • Plant Manager • Operations Manager (VP Manufacturing, Supply Chain) … Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets(EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler

41. New Manufacturing capabilities. “What's in it for you?” Day in Life Quality Technician • Monitor changes in BOM / engineering data • Write/Update Test/Inspection Procedures • Perform Test/Inspections • Document results of testing and inspections • Root cause / Track & Trace • Recommend corrective actions

42. New Manufacturing capabilities. “What’s in it for you?” Quality • New Quality module • Extend use of item attributes • Expanded to support • Multiple tests for an item • Multiple test records for a quality order • Multiple test samples for a test record • Automation in creation Quality Order/events • Create Certificate of Analysis

43. In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make Quality Technicians more productive” • New features integrates and automates receiving and inspection processes • Ability to capture all inspections data in real-time • Capture Multiple Test criteria / results of test samples • Quality Documents (Items and test specifications ; test records, QO’s and CoA) • Integrated with new item Attributes Key benefits or features • Decrease transaction time / reduce cost of tests • Improved quality Recording Accuracy • Ensuring non-conformance is detected at its origin within the same system • Improved track & trace capabilities (inventory transactions & attribute historical data) Many enhancements to streamline inspection with material handling & shop floor activities, will ensure compliance with quality policies and ensure have non-conformance data available in real-time

44. In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Support for Industry Compliance” • Provides a Flexible Capability to define descriptive attributes by Item to meet ever-changing Industry and regulatory needs. • Provides ability to support item lot and serialization track and trace independently from each based on multiple packaging levels • All fully integrated with order entry, receipts & shipments ensuring real-time data. Key benefits or features • Scalable and flexible capability supports current and new Industry Requirements across different niches • Reduces Customizations and eliminates the need for 3rd Party Integrations or double entries, or Excel • Attribute specifications, capturing values b and validations by attribute during receipts, picking and issuing Serialization enables support for California ePedigree Act Attributes will simplify implementation Compliance requirements leveraging real-time data for decision-making Reduce customizations

45. New Manufacturing capabilities. “What’s in it for you?” Item Attributes, Quality Control and the Effective Enterprise • QAD Item Attributes and Quality Control assist the Effective Enterprise by: • Supporting customer, quality, regulatory compliance • Eliminating manual or external processes for managing extended/unique item attributes • Allowing combining and splitting lots • Eliminating need for external quality tracking • Improving tracking and tracing

46. New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations • General • Plant Manager • Operations Manager (VP Manufacturing, Supply Chain) … Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets(EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler

47. New Manufacturing capabilities. “What’s in it for you?” IntroductionProcess • 3 to 5 early Adopters • Multiple Industries • Knowledge Transfer • Managed by R&D • 3 to 15 – Limited Availability • Multiple Regions • Internationalized • Managed by Services • General Availability • Regional

48. What’s In it for You?