Unified Production Planning & Execution

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1 MWUG Unified Production Planning & Execution 2018 Spring 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 Following slides Prepared for 2018 MWUG Fall Conference Learn how QAD's new manufacturing capabilities, QAD Production Orders with Shop Floor Mobile, can help you simplify and synchronize your back office production planning with your shop floor material replenishment and production execution. Some additional slides provided in this deck are hidden, providing additional post conference reference for you. This slide hidden in presentation.. Included in deck for attendee review/reference 3

4 Introduction Plan Produce Ship with Traceability Storage Shop Floor Storage Receiving Dispatching Unload Inspect Reject Pack Weigh Load 4

5 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

6 Production Orders Production modes unified ensures simplicity QAD Manufacturing - Product Evolution NEW! Lean Processes Quality & Compliance Production Orders But Wait there s MORE! SE/EE 2008 SE/EE 2010 EE 2015/16 EE 2016 EE 2016/18 Efficient Planning & Scheduling Serialization & Packaging Agile Material Handling 9

7 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

8 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

9 Same Capabilities unified and simplified Process Overview Demo 12

10 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 13

11 Production Orders Production modes unified ensures simplicity Script 1 Simplicity All existing capabilities for production are still there Functions are simplified and availability across modes (discrete/batch versus repetitive/flow) - This simplifies implementations or changes in processes over time - It removes all trade off decisions due to limitations - Only specific business reasons remain why discrete versus repetitive This slide hidden in presentation.. Included in deck for attendee review/reference 14

12 Script 1 - Demo Process Maps Overview Walked through new.net menu This slide hidden in presentation.. Included in deck for attendee review/reference 15

13 Script 1 - Demo Walked through the 3 collections This slide hidden in presentation.. Included in deck for attendee review/reference 16

14 Production Orders Production modes unified ensures simplicity Planning & Scheduling / Production Preparations Full visibility of orders, capacity, and materials Improved navigation Flexible filter tools for selecting orders Component availability by product structure (multi level) Capability to reschedule orders prior to processing Easy to create/modify orders (authorize/release/print release date) This slide hidden in presentation.. Included in deck for attendee review/reference 17

15 Production Orders Production modes unified ensures simplicity Product Order Activity Reporting Collections Simplifies search, navigation, and order selection Provides access to: - Production Order Maintenance - Production order routing, production order components - Functions for processing transactions for production orders This slide hidden in presentation.. Included in deck for attendee review/reference 18

16 Production Orders Production modes unified ensures simplicity QAD Manufacturing Simplifying Production Work Advanced Orders Unified Production Repetitive Scheduling Flow Workbenches Scheduling QAD Automation Solutions Master & Production Schedules QAD EE Repetitive Automation Solutions 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 19

17 Same Capabilities unified and simplified Shop Floor Mobile Demo 21

18 Production Orders Production modes unified ensures simplicity Script 2 Flexibility Extended capabilities, with other QAD Manufacturing allows Faster, more accurate product tracking & traceability Improve productivity and effectively users Improve material and product availability Appropriate and timely response to change This slide hidden in presentation.. Included in deck for attendee review/reference 22

19 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 24

20 Replaces- Excel Spreadsheets As a Scheduler I can manage both the plan & schedule 2018 New EPEI Leveling capability Single view of supply/ demand, capacity and Material, resource constraints over a period of days, weeks, months Single view to sequence production orders with context to customer demand, component shortages/supply, capacity, production activity

21 Inbound Directed Putaway 1 Logistics Packbay Loc: WTS 3 Putaway Cell 1000 Backflush Loc: W Delayed Second Move Real-time Instruction Quality Process Compliance Process Excelleration Production Control Quality Zone 1 Loc:

22 Material Replenishment Event Driven Signals PULL - Line Side Request (user requested) - Kanban (system/physical card) - *Min/Max (system) Dynamic PUSH - Production Schedule Controlled PUSH - Picklists This slide hidden in presentation.. Included in deck for attendee review/reference 27

23 Event Driven Production Material Replenishment 5 Component Material Replenishment 1 Line Side Direct 2 Kanban 3 Min/Max Backflush Loc: W Pick & Transfer Material Based Downtime Material Handler Efficiency MSW/PSW Production Control Picklists Warehouse Zone 1 Loc:

24 Production Dispatch & Receipts Synchronized Logistics Shippers Logistics Synchronized Master Scheduler Real-time schedule Enter QTY produced Shop Floor UI Scan Pack ID Scan Kanban ID Synchronized Shop Floor Accuracy MSW/PSW Production Control 29

25 NEW Capabilities unified and simplified Material Replenishment 33

26 Production Orders Production modes unified ensures simplicity Production Preparations Material Supplies to Production 34

27 Production Orders Production modes unified ensures simplicity Location and Process Overview Production Line 1020 Shared Backflush location Production Line 1040 Controlled Locations Stockroom 35

28 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 36

29 Production Orders Production modes unified ensures simplicity Demo: Pick, Issue, and Transfer for Production 1 Stockroom Production Order Production Order Shop Floor Production Order Production Order Picklist PK Work Center Location 1 Create picklist. 3 Issue picked quantities to production order. 5 Transfer picklist quantities to shop floor. 2 Pick quantities. 4 Move production order with the 6 issued quantities to shop floor. 6 Backflush materials from the shop floor. This slide hidden in presentation.. Included in deck for attendee review/reference 37

30 Production Orders Production modes unified ensures simplicity Component Availability by LOCATION Line Replenishment Shop Floor Stockroom Production Line Reserve Location Production Line Backflush Location Work Center Reserve Location Work Center Backflush Location 38

31 Wrapping it up It will only take 4 slides to do this 41

32 RnD Behind the Scenes Use Cases Challenge Simplifying and standardizing production activity data capture no matter what type of production process Implementation, training, upgrade costs Managing process variability and data accuracy Kanban - Repetitive Discrete - MTO Process - GMP

33 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 44 29

34 Operational Excellence During the Digital Transformation Value QAD Production Orders Extend Functionality *Includes Shop Floor Mobile - Material Replenishment - Production Reporting 45 29

35 Brent Shooltz - bws@qad.com - +1(616) QAD Inc