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Managing Complexity While Meeting Customer Demand
Bob White – CFO Encoder Products (EPC)Frank Feustel – Director Product Management, QAD
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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.
Safe Harbor Statement
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• Introduction to Configurator- Business drivers
- Manufacturing strategies
- Configurator
- What is new and what will come soon
• Configurator at work- Encoder Products Company (EPC)
- Challenges and opportunities
- Configurator at work at EPC
- Benefits
- Future outlook
- Product demo
• Question and answers
Agenda
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• Lower prices • Higher quality• Faster delivery • Customized products
Customers Demanding
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“Mass Customization Is (Finally) The Future Of
Products”
Forrester, April 15 2011
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• Standardize, reduced margins• Reduce supply chain costs• Improve order lead times• Reduce quote and order errors• Improve customer service
Manufacturer’s Pressures
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Manufacturing Strategies
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Variety
Volume
Design Purchase Manufacture Assemble Ship
Inventory Manufacture Assemble Ship
Manufacture Inventory Assemble Ship
Manufacture Assemble Inventory Ship
Delivery Lead Time
Delivery Lead Time
Delivery Lead Time
Delivery Lead Time
Engineer-to-Order (ETO)
Make-to-Order (MTO)
Assemble-to-Order (ATO)
Make-to-Stock (MTS)
Configure-to- Order (CTO)
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A powerful application designed to simplify processing of configure-to-order products- Captures engineering knowledge- Guides through the selling process- Automatically generates work orders and
routings
QAD Configurator
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• Guided sales- Flexible questionnaire design- Powerful price calculations
• Instant conversion of customer requirements into manufacturing requirements- Product configuration rules- Seamless integration
Intuitive, Informative, Intelligent
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• Meet customers’ specific requirements• Streamlined order and quotation process
- Reduced error rates- Reduces lead time to fulfill orders
• Bridge knowledge gap
Your Competitive Advantage
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• Forecast consumption for planning items• Configuration rebuild• User defined warning messages• Oracle database support• New browses and browse collections• And much more...
Recent Product Enhancements
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Next Generation
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• Enhanced for kits and links to sales quotes/ orders
• New attribute creation rules• Integration with enhanced best pricing
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• Web based configured orders
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Next Generation
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• EPC is a leading designer and manufacturer of premium rotary incremental and absolute encoders used for motion feedback
Encoder Products Company (EPC)
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• Founded in 1969• 98,000 sq. ft. manufacturing facility 10
miles south of Sandpoint, Idaho• QAD customer since1986
EPC Facts
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Encoders
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• Encoders are highly configurable and governed by a complex rule set
• EPC distinguishes itself from the competition in cost, quality, delivery and value
• Customer Service- Speeding up order entry- Shorten training time for operators
• Engineering- Support for MTS, ATO, MTO and ETO- Complete and accurate BOMs- Convert lengthy catalog numbers
• Marketing- Sales trends by encoder options
Challenges and Opportunities
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EPC Ordering Guide
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Implementation Approach
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• Creation of modular BOMs• Creation of generic router• Creation of variant item data rules for unique
catalog description• Capturing engineering knowledge
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Quantitative Benefits
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• Cutting down order entry training from 6 to 1 month
• Reduction of order entry errors by over 50 %• Satisfying customers standard delivery times
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Qualitative Benefits
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• Links variant items to customer item numbers
• Auto-label creation• Extrapolation of sales trends on
features and options
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Future Outlook
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• Purchasing of configured sub-assemblies• Configuration inside QAD CRM and QAD CSS
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Demo
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Metrics Affected
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Process Benefit Value
Configure complex products based on pre-approved engineering and sales business rules
Product personalization / customization by semi-skilled sales staff
•Reduce errors •Reduce selling time •Increase market share•Improved sales productivity
•$000’s•50% to 90%•5% to 10%•10% to 50%
Rules automatically translate possible configurations into actual items, product structures and routings
•Lower costs•Reduce errors•Reduced product lead-time
•5% to 25%•$000’s•10% to 50%
Rules based generation of variant item numbers enable re-order of configured items
•Increase customer satisfaction•Increase market share
•10% to 20%•5% to 10%
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• Attend Collaboration: From Supplier to Customer Solutions- Thursday at 9:45 - Speaker:
• Mark Williams QAD
• Contact your account manager to arrange a Configurator Q−Scan
Next Steps
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