Increase Productivity with Production Orders and ... · Shipping Receiving Warehouse ... KPI- On Time Delivery KPI- OEE KPI- On Time Delivery Increase Productivity with Production

Increase Productivity with Production

Orders and Automation Solutions

Henry Laprun, Caterpillar

Brent Shooltz, QAD

Carianne Nieuwstraten, QAD

May 9, 2018

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 13, 2018 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.

Disclaimer

Increase Productivity with Production Orders and Automation Solutions

3

Brent Shooltz- Product Manager R&D MFG/SC

- QAD, Inc.

Carianne Nieuwstraten- Product Manager Go To Market

- QAD, Inc.

Henry Laprun- ERP Enterprise Architect, QAD Application

- Caterpillar, Inc.

Introduction


4

Production Orders – What is it?

Demo Production Orders with Automation Solutions

Caterpillar Nuevo Laredo Case Study

Wrap Up

Questions and Answers

Agenda


5

Connecting People, Processes, Machines


Automation

Solutions

EE 2016

6

Efficient Planning & Scheduling

SE/EE 2010

Quality and

Compliance

EE 2015/16

Serialization &

Packaging

Lean

Processes

SE/EE 2008

Production Orders

EE 2016/18

NEW!QAD Manufacturing


7

QAD Manufacturing – Unifying Production

Product-Process Matrix

Volume Output

Va

rie

ty/

# o

f P

rod

uc

tsHigh

Low High

Mass Customization

Continuous

Process

Batch

Job Shop

Project

Cellular

Manufacturing Repetitive

Process


8

Master Scheduling

Production Scheduling

Production Preparation

Production Material Supplies

Production Activity

Reporting

Production Accounting

One Flow for All Production Modes


9

Business Decisions: Why Still Discrete vs. Repetitive?


Discrete Repetitive

Production

Volumes

Personalized / customer

specificMass production

Regulatory Batch / device history

Accounting Order based Period based

10

Planning and Scheduling Enhancements

Improved- Resource management

- Component availability check

- Error management

New- Product structure projected on

hand

- Every part every interval (EPEI) leveling

- Bulk order update


11

Order authorization segregated

from picklist print

Picking Policies

- General / detail allocations

- Pick / move

- Keep / drop

- Issue / backflush

Bulk picklist

- Multi-order picking

Reserved locations

Backflush locations

Material Supplies to Production Enhancements


12

Pick, Issue and Transfer for Production

6

Stockroom Shop FloorProduction Order

10021

Production Order 10022

Production Order Picklist

PK23004

Production Order 10033

2

1

Create picklist1

Pick quantities2

Issue picked quantities to

production order3

Move production order with issued

quantities to shop floor4

Transfer picklist quantities to

shop floor5

Backflush materials from

the shop floor6

4Work Center

Location

5


Line Replenishment

13

Reserved Locations – Backflush Locations

Controlled Locations

Stockroom Production LineReserve Location

Shop Floor

Production LineBackflush Location

Work CenterBackflush Location

Work CenterReserve Location


14

Product Order Activity Reporting Enhancements

Collections

- Simplify search, navigation,

and order selection

- Provide access

- Production order maintenance

- Production order routing,

production order components

- Functions for processing

transactions for production orders


15

All existing capabilities remain

Simplified functionality across modes

Enhanced capabilities

Foundation for the future

Production Orders: Unified Planning and Execution


16

Production Orders Demo


What is Your Degree of Synchronization?

17

Production

ControlSales

Logistics

Materials

Warehouse

Shipping

Receiving

Warehouse

Quality

Today 9am: Demand change - rush order – what happens next?

5

Internal SynchronizationCustomers? Suppliers?

KPI- On Time Delivery KPI- OEE KPI- On Time Delivery


What can we

ship now?

Best guess…

Material Plan

Fairly certain…

Schedule (ver.C)

Visual, verbal

inbound putawayVisual, verbal,

paper material

replenishment

Schedule (ver. A-xyz)

18

Production

Control

Logistics

Materials

Warehouse

Receiving

Warehouse

Shipping

Sales

Production Preparations – Material Supplies to Production


19

Production Material Replenishment


20

5

(2) Kanban

Production

Control

MSW/PSW

Warehouse

Picklists

(3) Min/Max

(4)

(5)

(1) Line Side

Live Scanner Session display here

Material

Replenishment

Signals

Dispatch and Receipts


21

Shippers

Shop Floor Dispatch

(3) Scan Pack ID

(2) Enter Production

(1) Print Pack Label

Production

Control

Live Scanner Session display here

MSW/PSW

Op 20 Op 10

Logistics

Increase Your Degree of Synchronization


Logistics

Today 9am: Demand change - rush order – NOT A PROBLEM

5

Internal SynchronizationCustomers Suppliers

KPI- On Time Delivery KPI- OEE KPI- On Time Delivery

Inbound

Production• Synchronized plan to ship

• Eliminate paper and

manual processes

Warehouse

MaterialsProduction

Control

Logistics

22

23Global Information ServicesWE POWER

CaterpillarCaterpillar Confidential Green

© Proprietary Information of Caterpillar Inc. 2017 - All Rights Reserved’23

Explore 2018 May 9

Caterpillar Nuevo Laredo

Production Orders and Automation SolutionsHenry Laprun



© Proprietary Information of Caterpillar Inc. 2017 - All Rights Reserved’

Agenda

Background to Caterpillar Nuevo Laredo, Mexico

Current Production Challenges

Expected Benefits Production Orders / Automation Solutions

Next Steps




Caterpillar Nuevo Laredo, Mexico

Caterpillar Reman Division─ 3 of the Reman plants are using QAD as their

ERP

Nuevo Laredo remanufacture Engine Components ─ Turbochargers, Nozzles, Fuel Injectors, Engine

Brakes, Starters, Alternators, ECMs, Hydraulics, Filters

Nuevo Laredo is completing an 18 month technology upgrade migrating from QAD-EB2 SP6 (2004) On-Premise to QAD EE 2016 Cloud─ Go Live is imminent Caterpillar Nuevo Laredo, Mexico

Other Caterpillar Mexico facilities



© Proprietary Information of Caterpillar Inc. 2017 - All Rights Reserved’© Proprietary Information of Caterpillar Inc. 2017 - All Rights Reserved’

Reman Process Remanufactured Products

Fuel Injectors Turbochargers

Alternators

Starter Motors Electronic Control Modules

Variable Valve Actuators

Manage “Core” return Manage customer returns

Manage core inventory

Salvage Process Disassembly

Advanced cleaning solutions

Material restoration

High precision machining

Manage Material Inventory New and restored

Assembly Process BOM

Routing

Manage Customer Reward Program




Manufacturing Plants x3Warehouse Building

27

Nuevo Laredo Production Process Flow

Warehouse

Stockroom

DisassemblyAssembly

Finished Goods

Subcontract

Subcontract

Salvage Sequencer




Current Production Challenge

Paper-based process with limited use of

QAD ERP eB2 system




Targeted Production Orders/Automation Solutions Use

Backflush

Issue

Allocate

DetailIssue

Backflush

Issue

Allocate

Detail / General

Picklist

Pick / PackIssue

Picklist

Pick / Pack

Allocate

Detail / General

Transfer

Bulk Picklist

Pick / PackTransfer

No IssueNo Pick

ReleaseAS Transactions

Allocate

Detail / General




Expected Benefits

One flow / menu for all production modes

─ Reduced set up

─ Reduced time spent on training

─ Avoidance of mix of concepts and related confusion

─ Only one set of API’s to integrate with

Real-time transactions using mobile technology

─ Using Production Orders picking / issuing and operation activity reporting related

Automation Solutions transactions

Avoid over production by working only on approved production orders




Expected Benefits

Impact on KPIs

─ Production reporting introduced with QAD Production Orders / AS

─ Enables yield monitoring

─ Better control new parts purchases, potentially decreasing material costs

─ Standard labor and burden costs now considered for product costing

─ Better understanding of the true cost of remanufactured products




Current Initiatives: QAD Projects at Caterpillar

Active upgrade from QAD eB2 to QAD EE Cloud projects

Reman - Nuevo Laredo, Mexico - Large facility - Go Live imminent

Engines - Peterborough, UK - Finance Consolidation - Go Live imminent

Upgrade Planning from QAD eB2 to QAD EE Cloud

Engines - Peterborough, UK - Very Large facility - 2019

Components - Italy - Medium size facility - 2019

New to QAD

Engines - Texas - Very large facility - 2019



© Proprietary Information of Caterpillar Inc. 2017 - All Rights Reserved’33

Thank You

34

Wrap-Up


35

All existing capabilities for production remain

Simplified and available across modes

- Flexibility / enhanced

- Reduced implementation complexity

- Increased productivity

QAD Production Orders Value


Please contact your sales rep for more information

36

Limited Availability customer criteria

On or moving to EE 2016 or EE 2017, Cloud or On Premise

Barcode solution QAD Automation Solutions

Scheduling tool MSW/PSW

Minimum number of add-ons, customizations, 3rd party

interfaces

Next Steps, Interested?


37

Brent Shooltz

- [email protected]

- +1(616)285-6617

Carianne Nieuwstraten

- [email protected]

- +1(503)236-0025

Henry Laprun

- [email protected]

- +44 777 345 8098

Questions and Answers


mailto:[email protected]



38

Highlighted Sessions

QAD Demo Theater

Improving Manufacturing Operations with

Production Orders and Automation Solutions

Brent Shooltz, Guido van den Broeck, QADThursday, May 10, 9:45 AM – 10:45 AM

Theater 8


Post-Explore Training

Improving Manufacturing Operations with

Production Orders

Brent Shooltz, Guido van den Broeck, QADThursday, May 10, 1:00 – 5:00 pm

Friday, May 11, 8:30 am – 12:00 pm

Houston C

www.qad.com©QAD Inc. 2018

39


http://www.qad.com/

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Increase Productivity with Production Orders and ... · Shipping Receiving Warehouse ... KPI- On Time Delivery KPI- OEE KPI- On Time Delivery Increase Productivity with Production