Unified Production Planning & Execution
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1 MWUG Unified Production Planning & Execution 2017 Fall Conference Presented by: Brent Shooltz QAD MFG Product Manager
2 . Safe Harbor This presentation includes forward-looking statements about QAD and its business. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in QAD s SEC filings, including the company's latest Annual Report on Form 10-K dated April 7, 2017 and in particular the section titled Risk Factors therein and other periodic reports the company files with the Securities and Exchange Commission thereafter. This presentation contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ( GAAP ) in that they exclude unusual or non-recurring charges, losses, credits or gains. This presentation identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-gaap financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company s business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-gaap financial measures presented by other companies. The following is intended to outline QAD s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD s products remains at the sole discretion of QAD. QAD undertakes no obligation to update forward-looking statements. 2
3 Operational Excellence During the Digital Transformation Product track & trace/material Handling Storage Shop Floor Storage Receiving Dispatching Unload Inspect Reject Pack Weigh Load 4
4 c What is your degree of synchronization? Tuesday 9am: demand change - rush order what happens next? Shipping Logistics What can we ship now? Receiving Visual / Verbal / Paper Material Replensihment Warehouse Schedule (ver. A-xyz) Visual / Verbal Inbound Putaway Warehouse Sales Fairly certain... Schedule (ver. C) Production Control Materials Best guess.. Quality Material Plan Customers? Internally Not Synchronized Suppliers? 5 5
5 Lack of Internal Supply Chain Synchronization Unsynchronized Costs What are your # s c 120% Other COGS, 75% Gross Margin, 25% 2 15% 100% 80% 60% 40% Inventory Carrying Downtime Overtime Transform Un-synchronized costs to Margin 20% 0% 25% 50% 75% 90% 95% 98% Increase Internal Synchronization In/out-bound Freight 6
6 Production Orders Production modes unified ensures simplicity QAD Manufacturing - Product Evolution NEW! Lean Processes Quality & Compliance Production Orders SE/EE 2008 SE/EE 2010 EE 2015/16 EE 2016 EE 2016/18 Efficient Planning & Scheduling Serialization & Packaging Agile Material Handling 7
7 Unified Production Planning & Execution Production Orders with Shop Floor Mobile How can it help you synchronize your back office production plan with your shop floor material replenishment & execution? 8
8 Variety/ # of Products Production Orders Production modes unified ensures simplicity QAD Manufacturing Unifying Production High Project Job Shop Product-Process Matrix Mass Customization Low Cellular Manufacturing Batch Repetitive Process Continuous Process Volume Output High 9
9 Variety/ # of Products Production Orders Production modes unified ensures simplicity QAD Manufacturing Unifying Production High Project Job Shop Product-Process Matrix Mass Customization Low Cellular Manufacturing Batch Repetitive Process Continuous Process Volume Output High 10
10 Production Orders Production modes unified ensures simplicity One Flow for All Production Modes Master Scheduling Production Scheduling Production Preparation Production Accounting Production Activity Production Material Supplies 11
11 Same Capabilities unified and simplified Process Overview Demo 12
12 Production Orders Production modes unified ensures simplicity QAD Manufacturing Simplifying Production Work Advanced Orders Unified Production Repetitive Scheduling Workbenches Flow Scheduling QAD Automation Solutions Master & Production Schedules QAD EE Automation Solutions Repetitive Quality Control and Attributes. Kanban New Platform Features Interoperability Packaged Inventory Key Objectives - One production flow to support mixed mode manufacturing - Eliminate redundancy, differences, and gaps between production modes - Simplify implementation and configuration - Enhance capabilities for the authorization of orders, allocations, picking, and the management of production materials 18
13 Same Capabilities unified and simplified Shop Floor Mobile Demo 19
14 Operational Excellence During the Digital Transformation Product track & trace/material Handling 20
15 Production Orders Production modes unified ensures simplicity Demo: Pick - Transfer Report Production Stockroom Production Order Shop Floor 2 Pick Request Work Center Location 1 2 Schedule Production Pick & Transfer to shop floor 1 Production Order Backflush materials from the shop floor 21
16 Script 2 - Demo Electronic Material Replensihment Real-Time Schedule Updates Real-time Schedule 23
17 Same Capabilities unified and simplified Material Replenishment 24
18 Event driven material replenishment Replenishment Signals PULL - Line Side Request (user requested) - Kanban (system/physical card) - Min/Max (system) Dynamic PUSH - Production Schedule Formal PUSH - Picklists Need to add image here 27
19 Event driven material replenishment Enhanced Production Replenishment A new solution design to consolidate all replenishment methods Key Business Process Enhancements All replenishment methods support picking by item, lot/serial,pack Picking partial packs, including pack splits, pack remove, pack merge(kitting) New Production Module concepts of: - Allocation, Transfer, Issue Policy s - Production Line / Work Center Backflush and Reserved Locations 28
20 NEW Capabilities unified and simplified Material Replenishment 29
21 Production Orders Production modes unified ensures simplicity Production Preparations Material Supplies to Production Order Authorization segregated from pick list print Picking Policies - General / Detail Allocations - Pick / Move - Issue / Back-flush Bulk Pick List - Multi-Order Picking 30
22 Production Orders Production modes unified ensures simplicity Bulk Picklists Stockroom Job Shop Work Center Location Work Center Location Production Line Bulk Picklist B Production Line Location Bulk Picklist B Work Center Location 31
23 Production Orders Production modes unified ensures simplicity Location and Process Overview Production Line 1020 Shop Floor Production Line 1040 Production Line 1020 Backflush Location Production Line 1040 Backflush Location 33
24 Production Orders Production modes unified ensures simplicity Reserved Locations Back Controlled Locations Stockroom Line Replenishment Production Line Reserve Location Shop Floor Production Line Backflush Location Work Center Reserve Location Work Center Backflush Location 34
25 Wrapping it up 35
26 QAD Production Orders Overview & EA Program Update Business Decisions why still Discrete vs Repetitive? Discrete Order-based accounting Repetitive Period-based accounting Personalization products Regulatory (Device history records) 36
27 Operational Excellence During the Digital Transformation Value QAD Production Orders Key Messages All existing capabilities for production are still there Functions are simplified and availability across modes - Reduced implementation complexity - Less administration - Reduced overhead costs Foundation of the Future 37 29
28 Operational Excellence During the Digital Transformation Value QAD Production Orders Extend Functionality *Includes Shop Floor Mobile - Material Replenishment - Production Reporting 38 29
29 Interested? Entrance criteria: - On or moving to EE 2016 Cloud/On Premise EE 2017 compatibility available as per March/April Barcode solution Automation Solutions - Scheduling tool MSW/PSW - Minimum number of add-ons, customizations, 3 rd party interfaces - Target go live for: Early adopter candidates by calendar Q Limited availability candidates by calendar Q
30 QAD Inc 43
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