1. Manufacturing Update: Rising To The Challenge Carianne Nieuwstraten – Sr. Product Manager, QAD R&D MFG September 23, 2014 Midwest User Group

2. 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

3. The Effective Enterprise Every business process working at peak efficiency and perfectly aligned with your strategic goals Manufacturing

4. Customer/Regulatory Compliance Consumer / Product Safety Sustainability Challenges For The Effective Enterprise Manufacturing Update: Rising To The Challenge

5. Customer/Regulatory Compliance Challenges For The Effective Enterprise Manufacturing Update: Rising To The Challenge

6. 6 The Challenge Rising To The Challenge: Customer/Regulatory Compliance Integrate your compliance processes with your business processes to become a competitive advantage

7. QAD Item Attributes Item/Lot level attributes integrated with the order, procure, make and ship processes to select and qualify items, capture all relevant attributes, and automatically qualify materials for usage QAD Solution Rising To The Challenge: Customer/Regulatory Compliance

8. RoHS WEEE Conflict Minerals Customer Specs Country of Origin Compliance QAD Item Attributes Manufacturing Update: Rising To The Challenge

9. 9 Supports unlimited profile characteristics Supports unlimited characteristics by item lot Simplifies compliance by capturing all relevant attributes Enables customer/order-specific specifications and generates CoA Integrated in all key business processes QAD Item Attributes Building Blocks Rising To The Challenge: Customer/Regulatory Compliance

10. QAD Serialization Streamlines material handling while satisfying product tracking and traceability requirements QAD Solution Rising To The Challenge: Customer/Regulatory Compliance

11. 11 Packaging Serial data Serialized inventory Label printing Communication and integration QAD Serialization Building Blocks Rising To The Challenge: Customer/Regulatory Compliance

12. 12 Customer: Aesica Pharmaceuticals – Leading pharmaceutical contract development and manufacturing organization – Italian division of Aesica Ltd (UK) – 2013.1 EE, discrete & process manufacturing Pain Point – Compliance with China Food & Drug Administration Go Live – April 30, 2014 – Focus: production orders/receipts, sales order pick/pack/ship Customer Reference Rising To The Challenge: Customer/Regulatory Compliance

13. 13 Aesica Process Flow Rising To The Challenge: Customer/Regulatory Compliance SAP OER Objects Events Repository UCB Architecture Master Data / SN Profiles Create Sales Order Production Execution s/n Aggregation AESICA Enviroment Package Print & Check Aggregate Goods Receipt Release Purchase Orders WO Release S/N Send 2 Prod Pallet Ready S/N Aggregated Ship S/N for verification MRP Delivery Prep and Shipping Verification Result Manage Issues

14. 14 Benefits Received – Unique end item identification – Aggregation of individual unit serial numbers at package level – Seamless track & tracing of single pack of medication – Serial number reporting to required government agencies Next Steps – Evaluating serialization requirements South Korea and Argentina Customer Reference Rising To The Challenge: Customer/Regulatory Compliance Case study available on qad.com, Sales Resources, Case Study

15. QAD Label Printing Services Manages label printing for product identification and material handling purposes QAD Solution Rising To The Challenge: Customer/Regulatory Compliance

16. 16 Setup printers for label printing Print barcode labels directly from key transactions Label design using 3 rd party software or Zebra programming Label format definitions Fixed/variable data according to label format Connect to hardware via different communication protocols QAD Label Printing Services Building Blocks Rising To The Challenge: Customer/Regulatory Compliance

17. QAD Lot Trace Workbench Quickly and efficiently trace where materials originated from and where they were used/shipped QAD Solution Upstream Trace Downstream Trace Rising To The Challenge: Customer/Regulatory Compliance

18. 18 Early Adopter -QAD Serialization 2013.1, 2014 EE Limited Availability -QAD Item Attributes 2013.1, 2014 EE -QAD Label Printing Services 2012.1 EE and above, 2013 SE and above General Availability -QAD Lot Trace Workbench 2012.1 through 2014 EE Availability and Compatibility Rising To The Challenge: Customer/Regulatory Compliance

19. Consumer/Product Safety Challenges For The Effective Enterprise Rising To The Challenge: Consumer/Product Safety

20. Business processes that build quality into the product The Challenge Rising To The Challenge: Consumer/Product Safety

21. QAD Quality Control Streamlines inspection with material handling & shop floor activities and ensures compliance with quality policies by having up- to-date non-conformance data available QAD Solution Rising To The Challenge: Consumer/Product Safety

22. 22 Supports test specifications at multiple levels and validation of test results against specifications Communicates pertinent item lot quality characteristics to manufacturing Provides ability to document customer-specific test specifications, capture test results and create CoA QAD Quality Control Building Blocks Rising To The Challenge: Consumer/Product Safety

23. 23 CUSTOMER: Althea – Pharmaceutical contract development and manufacturing organization – Headquartered in San Diego, California – 2014 EE, discrete & process manufacturing Pain Point – Need to comply with cGMP quality business practice on most critical processes: inbound and WO receipts Planned Go Live – October 1, 2014 Expected Benefits – Quality control integration in inbound and work order receiving processes – Labels to identify status of material received Customer Rising To The Challenge: Consumer/Product Safety

24. 24 Limited Availability -2013.1, 2014 EE Vitatech Nutritional case study available -qad.com – Sales Resources – Case Study Availability and Compatibility Rising To The Challenge: Consumer/Product Safety

25. QAD Item Attributes QAD QMS QAD Quality Control Next Step: Tighter Integration Rising To The Challenge: Consumer/Product Safety

26. Sustainability Challenges For The Effective Enterprise Rising To The Challenge: Sustainability

27. Sustainability integrated into strategies and culture The Challenge Rising To The Challenge: Sustainability

28. Reduce lead time Manage by exception Balance inventory Visibility Simulation QAD Planning and Scheduling Workbenches Rising To The Challenge: Sustainability

29. 29 In-process enhancements: -From Search batch to “on demand” resource data load -Component availability check on resource load/save and “on demand” -BOM projected on hand capability QAD Planning and Scheduling Workbenches Rising To The Challenge: Sustainability

30. QAD Dashboards Manufacturing Update: Rising To The Challenge Browses Op Metrics BI KPI’sWeb URL’s

31. Andon Boards Manufacturing Update: Rising To The Challenge

32. www.qad.com © QAD Inc Q & A 32 Manufacturing Update: Rising To The Challenge