Realizing Operational Benefits With QAD Planning And Scheduling Workbenches

Carianne Nieuwstraten – Sr. Product Manager, QAD. Inc Eric Wolfrom – ERP Consultant, Freudenberg-NOK Sealing Technologies | Building the Effective Enterprise

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Safe Harbor Statement

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.

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Presentation Agenda

■ ■ ■ ■ ■ ■ ■ The Effective Enterprise Solution overview Freudenberg-NOK Sealing Technologies implementation review Roadmap Vision Summary Q&A | Building the Effective Enterprise 3

Realizing Operational Benefits with QAD Planning/Scheduling WBs

The 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. ” | Building the Effective Enterprise 4

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Operational Opportunities

■ ■ COGS is typically 50-80% of revenue Production and material planners have direct impact on COGS spending Other 120 100 80 60 40 20 0 Inventory Carrying $'s Downtime (material shortages) Overtime

Eliminate 2-15% un-synchronized costs

Increase Internal Synchronization

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Why Are We Not Synchronized Today?

Tuesday 9am: Updates today’s production schedule to accommodate rush order

Demand/Inventory Reports Production Schedule (version C) MRP Manual Adjustments PO/ Supplier Schedules | Building the Effective Enterprise GOAL Method Production Schedule (version B) Production Schedule (version A.1) 6

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Synchronizing Your Internal Supply Chain

Planning & Scheduling WBs Shortage Monitor / Purchase Direct

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Manage Materials by Resource Release Production by Resource

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

The Effective Enterprise

■ QAD’s Planning and Scheduling Workbenches assist the Effective Enterprise by:   integrating key planning and scheduling functions plus information providing quick visibility to: − Supply and demand issues − Machine capacity issues − Material shortages

…leading to a higher rate of schedule achievement …improving delivery schedules …helping reduce inventory levels

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Solution Overview

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

■ Need multi-resource visibility to:  supply and demand imbalances | Building the Effective Enterprise 10

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

■ Need multi-resource visibility to:  capacity constraints | Building the Effective Enterprise 11

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

■ Need multi-resource visibility to:  material constraints | Building the Effective Enterprise 12

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

■ Need to respond to customer expedites and perform:  demand/supply imbalance visualization | Building the Effective Enterprise 13

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

■ Need to respond to customer expedites and perform:  capacity simulation | Building the Effective Enterprise 14

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Master Scheduler – Day In Life

Need to respond to customer expedites and perform:   dynamic component availability check dynamic BOM drill down for sub-assembly analysis | Building the Effective Enterprise 15

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Production Scheduler – Day In Life

■ Create executable production schedule:  Sequence production orders by key attributes | Building the Effective Enterprise 16

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Production Scheduler – Day In Life

■ Create executable production schedule:  Check material availability | Building the Effective Enterprise 17

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Production Scheduler – Day In Life

■ Establish meeting both maintenance and scheduling needs  Review planned maintenance orders | Building the Effective Enterprise 18

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Material Planner – Day In Life

■ Ensure materials are available for production schedule execution  Check shortages for parts responsible for | Building the Effective Enterprise 19

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Availability and Documentation

Workbenches – general: • eB2.1 SP4 and up, add-on • 2010.1EE and up, core Recent enhancements • Personalization architecture • Dynamic forecast inclusion/exclusion • Quick-Find • Planned order scheduling Documentation • Installation, admin, user and training guides | Building the Effective Enterprise 20

Realizing Operational Benefits with QAD Planning/Scheduling WBs Freudenberg-NOK Sealing Technologies Implementation Review Eric Wolfrom

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FNST Overview

■ ■ Freudenberg-NOK Sealing Technologies has become a leading producer of elastomeric materials and precision molded products for a multitude of industries:  aerospace  automotive    energy food and beverage construction medical    recreational, industrial chemical industries FNST is headquartered in Plymouth, Mich., and has 23 manufacturing, research and sales facilities throughout the United States, Canada, Mexico, Brazil and Malaysia. | Building the Effective Enterprise 22

Realizing Operational Benefits with QAD Planning/Scheduling WBs

FNST Overview

• • • • • • • • • • • • • •

Products:

Radial Shaft Seals O-Rings Gaskets Specialty Sealing Products Vibration Control Devices Health & Medical Products Diaphragms Oil & Gas Electronics Lubricants Specialty Textiles Household Products Accumulators Brake Components | Building the Effective Enterprise

Realizing Operational Benefits with QAD Planning/Scheduling WBs

FNST Production Flow

Cut Packaging Press, Op10, Sleeve Form Oven Slice, Ring Form Shipping, Op 90

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Planning and Scheduling Pain Points

     No capacity visibility Supply chain had limited forward planning visibility for material replenishment Pertinent information for decision making held in multiple silos Missing dynamic visibility to demand changes WIP inventory of components and finished goods required “walking the floor” | Building the Effective Enterprise 25

Realizing Operational Benefits with QAD Planning/Scheduling WBs

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Benefits

■ After QAD Planning and Scheduling Workbenches implementation:   All pain points successfully addressed ROI (tangible and intangible) − Improved customer service − Improved component material purchasing and forecasting − Increased scheduler confidence − Greatly improved capacity visibility − Machines grouped by capabilities | Building the Effective Enterprise 27

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Implementation To Date

■ Technical aspects      2010 SE Workbenches installed in test environment − 170 total programs (.p’s) involved .Net UI client (from version 2.9.1to 2.9.4) Conference room pilots Moved to production and activated for each site when appropriate in Site Maintenance (1.1.13) | Building the Effective Enterprise 28

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Implementation To Date - Continued

■ Business Aspects     Demos with divisional executives Demos with recommended facilities − − Tillsonburg, ONT Santa Ana, CA Engaged QAD Services for Tillsonburg implementation − − − Training event, 9/12  MRP data audit and correction – IMPORTANT Workshop 1, 10/12 – pilot workbenches test environment Workshop 2, 10/12 – GO LIVE FNST ERP consultants conducted Santa Ana events − Start 11/12, GO LIVE, 12/12 | Building the Effective Enterprise 29

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Moving Forward

■ ■ ■ ■ Both facilities adding more items and production lines on a regular basis Next plants   Findlay, OH Cleveland, GA Six additional sites have also volunteered Target implementation release version 3.2.2.1

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Lessons Learned

■ ■ ■ ■ ■ Thoroughly test workbench program changes MRP data integrity is paramount Training and workshops worked out well Workbench items Purchase/Manufacture value Larger LCD screens for schedulers | Building the Effective Enterprise 31

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Implementation Considerations

■ ■ ■ ■ ■ Understand MRP data cleanup effort Start with small data set (items/PLs) Auto firm planned orders (yes/no) Executive support Culture change for scheduling, using factual parameters instead of tribal knowledge | Building the Effective Enterprise 32

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Roadmap

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Realizing Operational Benefits with QAD Planning/Scheduling WBs Recent and Planned Maintenance Releases

EE Release SE Release SE Release SE Release EE Release EE Release Feb 2013 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2014 Feb Mar Apr May Jun | Building the Effective Enterprise 34

Master Scheduler Home Page Example

Messages (Alerts)

CM - MMMM MFG - MMMM PUR - MMMM QLM - MMMM ENG - MMMM

Calendar

Prod Mtg at 10:00 AM

To Do List

Run Production Report Run SOP Production Summary Review Forecast

Metrics (Scorecard)

OTIF MPS OTIF Supplier OTIF Supply Plan Perf Demo Cap Forecast Acc’y OEE

Menus Favorites Refresh

xx xx xx xx xx xx xx 35

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Vision

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Vision

Load-Leveling Constraint Based Master Scheduler Material Plan Finite Capacity Production Scheduler Material Requirements Planning Master Scheduling Workbench Master Schedule Production Scheduling Workbench | Building the Effective Enterprise 37

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Summary

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Realizing Operational Benefits with QAD Planning/Scheduling WBs

Operational Opportunities

■ ■ COGS is typically 50-80% of revenue Production and material planners have direct impact on COGS spending Other 120 100 80 60 40 20 0 Inventory Carrying $'s Downtime (material shortages) Overtime

Eliminate 2-15% un-synchronized costs

Increase Internal Synchronization

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Realizing Operational Benefits with the Planning & Scheduling Workbenches 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 | Building the Effective Enterprise 40

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Next Steps After Explore

■ ■ ■ Review available documentation  QAD web site: planning and scheduling workbenches Work with QAD services/partner to line up training Work with QAD/partner account rep to schedule demo | Building the Effective Enterprise 41

Realizing Operational Benefits with QAD Planning/Scheduling WBs

Questions & Answers

■ Carianne Niewstraten Sr. Product Manager, QAD. Inc [email protected]

■ Eric Wolfrom ERP/IT Business Consultant, Freudenberg NOK Sealing Technologies [email protected]

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www.qad.com

©QAD Inc. 2013 | Building the Effective Enterprise 43