Taking Control Over Chaos! Product Change Control

1. Taking Control Over Chaos! Product Change Control Rea Buchanan QAD March 18, 2008

2. Agenda • The Business Issues Surrounding Product Change Control and Implementation • Value of Product Change Control (PCC) • Change Control Process in PCC • Deployment Scenarios and Considerations

3. Business Issues – Change Control • Complex process • Time critical in nature • Conflicting organizational objectives • Financial implications • Manually intensive • High risk of execution errors

4. Cost Overruns Obsolete Material Poorly Executed Changes Auditor

5. Common Methods Employed • “Pass the folder” • “Gather around the table…..and join hands” • Access, Excel, other custom development But we have a PDM (PLM, CAD) where changes are processed. We don’t need PCC!

6. What is the Value in using PCC? Attempts to add some control to a chaotic happening! • Systemic structure for Change Management and Introduction • Control over: • Item Engineering Data • Product Structures • Routings • Formulas/Processes • Quality Specifications • Activates BOM Inquiry by Rev & PCO • Automatic update of Item Rev • Supports electronic signatures (Enhanced Controls) – CFR Part 11 (FDA)

7. Product Change Life Cycle PCO Creation Reject Reroute Revoke Route for Approval Release Notices Electronic Approvals NO YES comments NO Release Notices Release/Distribute Incorporation Planning Dates Incorporation Planning Systems Implementation

8. PCO Structure PCOAA-193625 Design Group ENG ORG: ABS MECH APPROVED BY: MECH ENG TKW Approval Group (Routing Slip) IND ENG DRB MATERIALS DFD QUALITY DJM COST ACCT DVS DISTRIBUTION: Distribution Group PCO Type TYPE: SAFETY

9. TYPE: DOC TYPE: COST Product Change Control Routing Slip : A Mech Eng QC Mfg Eng Cost PCO TYPE: SAFETY Matls Fin Routing Slip : A Service Design Group:MECH Dist Group: GEN Approval Groups Approval Group: Matls Mech Eng Elec Eng UserNameEffective Mfg Eng Cost DRB Buchanan Matls Fin DFD Doyle Service Safety Purch Exec TKW Wright 01/31/02

10. PCO Architecture Production PCO Items Items Product Structures Product Structures Routings Routings Product Specs Product Specs Effectivity Incorporation Approval

11. PCC Create

12. PCO Maintenance Process • Detailing the Change (PCO Create) • Enabled processes appear: • PCO/PCR Function Maintenance • Text Maintenance • Item Maintenance (Item data, rev, status) • Structure Maintenance • Routing Maintenance • Formula Maintenance • Process Maintenance • Item Specification Maintenance • Trailer Maintenance

13. PCO Maintenance Process • PCO/PCR Function Maintenance • Change PCO Number (new number) • Close PCO to PCO (merge and close) • Copy PCO from PCO/PCR (all or part) • Copy PCO to PCO/PCR (all or part) • Close PCR to PCO (merge and close) • Convert PCR to PCO (retains PCR number) • Text Maintenance • Add, modify, delete PCO text • Copy text from master comments into PCO – can be used for re-useable text templates

14. PCO Maintenance Process • Structure Maintenance • Copy Product Structure into PCO (multi-level) • Copy Where Used into PCO (multi-level) • Detailed Maintenance (add, modify, de-activate) • Replace Component (within structures in PCO) • Routing Maintenance • Copy Routing to PCO (single, multiple, all ops) • Detail Maintenance (add, edit, de-activate; both hrs/pc and rate based) • Trailer Maintenance • Close or Reopen PCO, • Disposition, Expected Cost, Mandatory Date

15. PCC Create

16. PCC Approvals • All approvals are done within PCC • E-mail notifications may be used • Approvals with password verification and electronic signatures • Approver may approve, reject and reroute, add comments • Progress of approval process is tracked and retained

17. PCC Approval “Advanced” Notes • Once PCO is routed, it may be changed, but requires re-approval by all approvers • If a group disapproves and severity codes are used, it can be re-routed to selected groups for approval • Reroute capability and reroute level can cause the PCO to be re-approved by selective approvers • Detail approval maintenance is an administrative tool and should be user secured

18. Incorporation & Implementation • Incorporation • Establishes the date when PCO is to become effective • MRP planning logic now recognizes the changed BOM’s • PCO incorporation date can be changed • Routings, processes, formulas, specifications are updated based upon incorporation dates • Implementation • Signifies that the PCO is now in production • Updates part master revision and other item data in item master records

19. Product Change Requests Suppliers Service Customers PCR Creation Marketing Submittal Approval PCR PCR Combined PCO

20. Items Items PDM BOM’s BOM’s PDM PDM Integration Strategies Direct Update of Items and Bills of Material PCC Update of PCC to Allow for Manufacturing Implementation

21. PDM Considerations • PDM system and its capabilities • How will PCC be used given the PDM system? • Engineering change structure • Will there be an approval cycle within PCC? • What is the scope of PCC use? (Items, BOMs, Rtgs, Specs) • PDM integration to MFG/PRO • Direct to items and BOM’s • Passed through PCC to items and BOM’s • Single or bi-directional information exchange • Separate MFG/PRO databases per plant vs. a centralized PDM system

22. Business Issues – Change Control • Complex process • Time critical in nature • Conflicting organizational objectives • Financial implications • Manually intensive • High risk of execution errors Take Control Over the Chaos!

23. Questions?

24. Thank You! Rea Buchanan drb@qad.com