1. | Building the Effective Enterprise Tools to Streamline Your Manufacturing and Supply Chain Processes Joseph A. Phelan, CPIM Senior Director of Manufacturing R&D QAD, Inc. Manufacturing Product Direction

2. | Building the Effective Enterprise 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 Tools to Streamline Your Manufacturing and Supply Chain Processes

3. | Building the Effective Enterprise 3 “An Effective Enterprise is one where every business process is working at peak efficiency and perfectly aligned to the company’s strategic goals. ” The Effective Enterprise Tools to Streamline Your Manufacturing and Supply Chain Processes

4. | Building the Effective Enterprise 4 ■Building an Effective Enterprise through  Connectivity  Internationalization  MSW/PSW  User experience  Industry compliance and extensions −Serialization −Track / trace extensions −Attributes −Quality Control ■Summary ■Questions Topics Tools to Streamline Your Manufacturing and Supply Chain Processes

5. | Building the Effective Enterprise 5 Manufacturing Product Direction Connectivity Tools to Streamline Your Manufacturing and Supply Chain Processes

6. | Building the Effective Enterprise 6 ■Service interface APIs  APIs for internal and external use −Continually extended to more and more functions ■This is important  Performance  Integration flexibility  Enabler Connectivity Tools to Streamline Your Manufacturing and Supply Chain Processes

7. | Building the Effective Enterprise 7 Manufacturing Product Direction Internationalization (I19) Tools to Streamline Your Manufacturing and Supply Chain Processes

8. | Building the Effective Enterprise 8 ■Business Drivers  Compliancy requirements −Local legal (country specific) −International (IFRS)  Operational practices Internationalization (I19) Tools to Streamline Your Manufacturing and Supply Chain Processes

9. | Building the Effective Enterprise 9 ■IAS-2 inventory valuation (IFRS) Internationalization Tools to Streamline Your Manufacturing and Supply Chain Processes “ Cost of inventory comprises all costs of purchase, conversion and logistics costs incurred in bringing the inventories to their present location and condition.”

10. | Building the Effective Enterprise 10 ■Periodic costing  Inventory evaluation capability −Weighted average (WAVG) −First-in/first-out (FIFO) −Last-in/first-out (LIFO)  New capabilities −Improved (Advanced) Repetitive Integration −Overhead allocations −Functional/Usability Improvements ■Important  Expands financial compliance coverage  Helps establish exceptional operational standards Internationalization Tools to Streamline Your Manufacturing and Supply Chain Processes

11. | Building the Effective Enterprise 11 ■Logistics accounting  Supports Legal Documents and GTM  Enhanced tax handling for transactions  Additional apportion methods −Weight −Volume −Net price  Capture logistics charges by order / supplier −Price list  Improved integration to Periodic Costing  Usability Improvements Internationalization Tools to Streamline Your Manufacturing and Supply Chain Processes

12. | Building the Effective Enterprise 12 Manufacturing Product Direction MSW/PSW Tools to Streamline Your Manufacturing and Supply Chain Processes

13. | Building the Effective Enterprise 13 ■March 2013 release  Quick-find  Dynamic forecast inclusions/exclusion  Alternate BOM/routings defaults  New data drill downs  Routable scheduling Usability / Functional Enhancements Tools to Streamline Your Manufacturing and Supply Chain Processes ■Future Release  Personalization architecture  Dynamic item to resource  Schedule by week Parent order released Routable sub-assembly order created

14. | Building the Effective Enterprise 14 Scalability to Increase Visibility Planning & Scheduling Workbenches <2010 2010-11 20122013 March 2013 Fall.. -Work Order -MRP Inquiry -Inventory Detail -Resource Capacity …….. Other Client CAC Engine Data Retrieval 1 record G1 G4 G2 G3 Resource Groups All Resources Hybrid G1 G4 G2 G3 G1 G4 G2 G3 G1 G4 G2 G3 G5 G6 G7 G8 G9 -DOI + + + + ++ + + + ++++ ++ Maximum Visibility Minimum Visibility

15. | Building the Effective Enterprise 15 Manufacturing Product Direction User Experience Tools to Streamline Your Manufacturing and Supply Chain Processes

16. | Building the Effective Enterprise 16 User Experience Tools to Streamline Your Manufacturing and Supply Chain Processes “Real time is the period of time that will positively change decision quality.”

17. | Building the Effective Enterprise 17 ■ Solution effectiveness – How quickly a business process or company can detect and respond to a capacity, supply or demand altering event.  The longer it takes, the greater the impact User Experience Tools to Streamline Your Manufacturing and Supply Chain Processes Delay in response time Relative Impact Measurability should be on how well the solution works as a “team” member with the users.

18. | Building the Effective Enterprise 18 ■Role-based centers  Master scheduler/Finishing scheduler  Material planner (production)/ Production scheduler  Material planner – procurement  Buyer  Shop floor – operator  Shop floor – controller  Material handler – inbound (receiving)  Material handler – outbound (shipping) User Experience Tools to Streamline Your Manufacturing and Supply Chain Processes

19. | Building the Effective Enterprise Messages (Alerts) CM-MMMMMMMMMMM EAM-MMMMMMMMMM MFG-MMMMMMMMMM PUR-MMMMMMMMMM QLM-MMMMMMMMMM Calenda r Prod Mtg at 10:00 AM To – Do List Run Production Report Run SOP Production Summary Review Forecast ENG-MMMMMMMMMM Metrics (scorecard) Inventory Turns Supplier Delivery Performance Supplier Quality Performance Inventory Accuracy Stockouts Expedited Orders Safety Stock Obsolete Inventory Inventory to Obsolete Ratio Scrap Master Data Accuracy Refresh 2 3 4 5 1 Menus Favorites Material Planner - Procurement Buyer Inventory Turns 6 7 Material Planner - Procurement

20. | Building the Effective Enterprise Messages (Alerts) CM-MMMMMMMMMMM EAM-MMMMMMMMMM MFG-MMMMMMMMMM PUR-MMMMMMMMMM QLM-MMMMMMMMMM Calenda r Prod Mtg at 10:00 AM To – Do List Run Production Report Run SOP Production Summary Review Forecast ENG-MMMMMMMMMM Metrics (scorecard) Inventory Turns Supplier Delivery Performance Supplier Quality Performance Inventory Accuracy Stockouts Expedited Orders Safety Stock Obsolete Inventory Inventory to Obsolete Ratio Scrap Master Data Accuracy Refresh 2 3 4 5 1 Menus Favorites Material Planner - Procurement Buyer Inventory Turns 6 7 Tabs indicate method for combining roles Material Planner - Procurement

21. | Building the Effective Enterprise Messages (Alerts) CM-MMMMMMMMMMM EAM-MMMMMMMMMM MFG-MMMMMMMMMM PUR-MMMMMMMMMM QLM-MMMMMMMMMM Calenda r Prod Mtg at 10:00 AM To – Do List Run Production Report Run SOP Production Summary Review Forecast ENG-MMMMMMMMMM Metrics (scorecard) On time & in full delivery performance % delivered on time and in full % delivered on time % delivered in full Quality performance Scrap Returns Inventory turns Material cost (% of COGS) Purchase price variance Item Spend Analysis Supplier Spend Analysis Cash Requirements Forecast Open P O Amount by Month Supply Chain Risk 2 3 4 6 Menus Favorites Refresh Material Planner - Procurement Buyer 5 1 8 7 Buyer (Direct Materials)

22. | Building the Effective Enterprise 22 Manufacturing Product Direction Serialization, Label Printing, Lot Trace Workbench Tools to Streamline Your Manufacturing and Supply Chain Processes

23. | Building the Effective Enterprise 23 ■What is serialization  Unique identification number Serialization, Label Printing, Lot Trace Workbench Tools to Streamline Your Manufacturing and Supply Chain Processes

24. | Building the Effective Enterprise ■What is license plate inventory  Packaged inventory using a unique ID Serialization, Label Printing, Lot Trace Workbench 24 Tools to Streamline Your Manufacturing and Supply Chain Processes

25. | Building the Effective Enterprise ■Business Challenges  Brand Management and Control −Counterfeit product −Recall management −Inventory trace and track −Regulatory compliance  Operational Efficiency and Accuracy −Warehouse efficiency −Inventory accuracy −Shipment accuracy Serialization, Label Printing, Lot Trace Workbench 25 Tools to Streamline Your Manufacturing and Supply Chain Processes

26. | Building the Effective Enterprise ■Key Capabilities  Packaging  Serialized data management  Serialized inventory management −Transaction enabled  Label printing service  Communication and integration  Backward / Forward lot track and trace Serialization, Label Printing, Lot Trace Workbench 26 Tools to Streamline Your Manufacturing and Supply Chain Processes

27. | Building the Effective Enterprise 27 ■Lot trace workbench  New capabilities −Tracking and tracing of:  item serial numbers and/or  license plated packs  Backward and forward tracing −Extended list of relevant information −Drill down capabilities −Ability to extract data for further analysis Serialization, Label Printing, Lot Trace Workbench Tools to Streamline Your Manufacturing and Supply Chain Processes

28. | Building the Effective Enterprise ■Important  Supports regulatory compliance  Enhanced product safety and integrity  Improved business operations Serialization, Label Printing, Lot Trace Workbench 28 Tools to Streamline Your Manufacturing and Supply Chain Processes

29. | Building the Effective Enterprise 29 Manufacturing Product Direction Attributes, Quality Control Tools to Streamline Your Manufacturing and Supply Chain Processes

30. | Building the Effective Enterprise ■Business challenges  Item and Inventory differentiation and selection  Meet unique customer product requirements  Ensure regulatory compliance  Manage recalls Attributes, Quality Control 30 Tools to Streamline Your Manufacturing and Supply Chain Process

31. | Building the Effective Enterprise 31 ■Key Capabilities  Flexible item attribute designation −Descriptive −Product specifications (ranges, tests requirements)  Regulatory compliance −Item/supplier certification (control)  Establish / retain quality attributes −Manages test specifications for items and attributes −Manages test results for inventory and production operations −Transaction enabled (manage inventory)  Capture test results within tolerances −E-signature −Approvals −Certificates of analysis Attributes, Quality Control Tools to Streamline Your Manufacturing and Supply Chain Process

32. | Building the Effective Enterprise ■Supports customer service, product quality, and regulatory compliance by  Reduces manual external processes for managing product attributes, customer requirements, quality, and regulatory compliance  Extends the functional reach of quality control and test result reporting to materials management and business operations  Improves inventory trace and track  Helps manage recall scope Attributes, Quality Control 32 Tools to Streamline Your Manufacturing and Supply Chain Process

33. | Building the Effective Enterprise 33 Manufacturing Product Direction Summary Tools to Streamline Your Manufacturing and Supply Chain Processes

34. | Building the Effective Enterprise 34 Manufacturing Product Direction Tools to Streamline Your Manufacturing and Supply Chain Processes Serialization, SI APIs, Label Printing Service, Attributes, Quality Control, Lot Trace Workbench Early Adopters SI APIs I19 MSW/PSW Role-Based Centers Future Releases

35. | Building the Effective Enterprise 35 Effective Enterprise Summary Tools to Streamline Your Manufacturing and Supply Chain Processes Automotive Consumer Products Food and Beverage Electronics Industrial Manufacturing Life Sciences SI APIsHHHHHH I19HHHHHH MSW/PSWHHHHHH UXHHHHHH SAQ LTWB HH+ HH

36. | Building the Effective Enterprise Next Steps While at Explore Manufacturing Product Direction

37. | Building the Effective Enterprise 37 ■Attend these related sessions (or watch the replay):  Conquering Serialized Inventory Management −1:30 PM to 2:30 PM, Wednesday, 5/8 −Speaker : Guido Van den Broeck  Realizing Operational Benefits with QAD Planning and Scheduling Workbenches −4:15 PM to 5:15 PM, Wednesday, 5/8 −Speaker : Carianne Nieuwstraten −Speaker : Eric Wolfrom (Freudenberg – NOK) Next Steps While at Explore Tools to Streamline Your Manufacturing and Supply Chain Processes

38. | Building the Effective Enterprise 38 ■Stop by the Solutions Expo  Opening reception, Tuesday, 5/7, at 5:30 PM  Open Wednesday, 5/8, at 7:30 AM to 8:45 AM  Open Wednesday, 5/8, at 12:00 PM to 5:00 PM ■Stop by the Expo Theatre  Serialization −Speaker : Guido Van den Broeck −Tuesday, 5/7, from 3:15 PM to 4:00 PM −Conference Room 5  Attributes / Quality Control −Speaker : Forrest Mori −Wednesday, 5/8, from 4:15 PM to 5:00 PM −Conference Room 5 Next Steps While at Explore Tools to Streamline Your Manufacturing and Supply Chain Processes

39. | Building the Effective Enterprise 39 ■ MSW/PSW Training Sessions  Option 1 −Tuesday, 5/7, from 1:30 PM to 5:30 PM −Wednesday, 5/8, from 1:30 PM to 5:30 PM  Option 2 −Thursday, 5/9, from 1:30 PM to 6:00 PM −Friday, 5/10, from 8:30 AM to 12:00 PM Next Steps While at Explore Tools to Streamline Your Manufacturing and Supply Chain Processes

40. | Building the Effective Enterprise 40 Questions and Answers Tools to Streamline Your Manufacturing and Supply Chain Processes Joseph A. Phelan, CPIM Senior Director of Manufacturing R&D jpq@qad.com 01 770-903-4790 Ext. 110

41. | Building the Effective Enterprise www.qad.com ©QAD Inc. 2013 Manufacturing Product Direction Tools to Streamline Your Manufacturing and Supply Chain Processes 41