Manufacturing Futures

Manufacturing Futures
West Coast User Group Manufacturing Futures Bill Keese, SVP R&D February 11-12, 2013

Disclaimer This roadmap is for information only and represents QAD’s current view of its product direction. None of the information should be interpreted as a commitment on the part of QAD Inc. QAD works closely together with customers, user groups and analysts in validating and updating the product direction. The product roadmap is therefore subject to change.

New Manufacturing capabilities. “What’s in it for you?”
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. ”

Objectives Review key MFG functions
New Manufacturing capabilities. “What's in it for you?” Objectives Review key MFG functions Understand the key roles in operations Understand the business processes involved Understand what we are delivering Understand “What’s in it for” each key role What is our understanding of all roles in operational activities and their function in the major business flows For which roles the New Manufacturing capabilities have improved solutions for So that it becomes clear “what’s in it” for each of these key roles This should you give understanding of the value for all these users and hence help To develop a value proposition for the buyers of customers in our installed base as prospects. working at peak efficiency aligned with their strategic goals

New Manufacturing capabilities. “What's in it for you?”
Role Based access

Affected Roles ERP users in Operations
New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations General Plant Manager Operations Manager (VP Manufacturing, Supply Chain) Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets (EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler These are the roles identified in operations (which are all processes related with materials management, inventory, production operations, quality, cost accounting to engineering) (There is relationship with MRP and Capital Expenditures and managing tools and assets, which is not covered in this workshop) The new functionalities will effect to a certain extend the roles in blue. These personas might be interacting with customer management personas like demand manager (forecast), Customer services rep (CSR) etc. as well with finance personas like controllers etc.

Working with disconnected tools
1 Why are we not synchronized today? Click For Next Point Working with disconnected tools Stage Capability Tuesday 9am: Updates today’s production schedule to accommodate rush order Scheduler Buyer/Expeditor Materials Production Purpose: Position internal supply chain synchronization Demand/Inventory Reports Production Schedule (version C) MRP Supplier Schedules Manual Adjustments System Data + Production Schedule (version B) System Data + Production Schedule (version A) Production Schedule (version A.1 Modified) ?

Master Scheduler’s Challenge
New Manufacturing capabilities. “What’s in it for you?” Master Scheduler’s Challenge Executives Profits are slipping and our ROI must improve; the stockholders are not happy! Finance There’s too much cash tied up in inventory! Manufacturing There are too many changes! Provide fixed schedules and the correct parts and delivery will improve. Engineering There’s a new product introduction scheduled for the fall! But we need more time for design! COGS Is Typically 50-80% of Revenue Labor Materials Burden Master Schedulers, Production Schedulers, and Material Directors Make Decisions on COGS Spending Millions of $s Sales Service levels are down. I need more inventory! Whatever it takes to keep the customer happy!

Master and Production Scheduling Objective: “Say YES and Mean YES”
New Manufacturing capabilities. “What’s in it for you?” Master and Production Scheduling Objective: “Say YES and Mean YES” Make Supply = Demand New orders/rescheduling as necessary and feasible/order splitting Balance flexibility with stability Ensure Smooth Flow and Sensible Sequence Leveling and sequencing Not automatic (respects time zones) Communicate Problems (and Solutions) Silence is approval Original talking points: The objective is to say “yes” to all the different people who have differing objectives or interests in the MPS/production schedule. But to say “yes” only when it is possible to mean “yes”. It serves no purpose to say “yes” and mean “maybe” or “I hope we can”. And then how does the master scheduler/production scheduler go about building a schedule that means “yes” – those are the main 3 bullets on the slide – each of which can lead into a discussion of how to use MSW/PSW, leveling and other tools. Further extension on talking points received from Chris on 9/17: The following discussion can safely use “master scheduler” or “production scheduler”. The primary objective of the master scheduler is to satisfy the needs of all the various constituents (top management, sales and marketing, purchasing and procurement, manufacturing, materials, finance, etc.) shown in the previous slide. Generally speaking this involves several important tasks which include supply/demand balancing, sequencing and clear communication. In supply/demand balancing, the most important task is to make sure that supply satisfies demand (supply = demand) in terms of quantities and dates. It isn’t good enough to make the right quantity but be too late, and making something early may be smart strategically in some circumstances but stupid in others (because it is consuming capacity needed for something else needed more urgently). The master scheduler must use his product and market knowledge and intelligence to balance off both the numeric factors that are part of the MPS with the intangible or less quantifiable aspects of the job. Can we get an order earlier? What is the impact on capacity and what is the risk that we will simply generate noise and not better results? If we have to make the “least worst choice”, who will be affected the least? What is the impact of missing a delivery on specific customers? Can we make a swap, delaying one supply order in favor of another? Is it possible to substitute one product for another? And of course making supply and demand equal always involves some “mechanical” activity – creating a new order or rescheduling an existing one earlier or later, splitting an existing order into two smaller orders, etc., but always trying to be flexible in responding to customer needs while at the same time maintaining some level of stability in the factory and with suppliers. Of course the schedulers must be mindful of factory flows (and the associated cost of poor flow). Generally this means that the master scheduler has the primary responsibility of creating a rhythm or cadence in the plant – a schedule that promotes both a smooth flow from one work center to the next as well as a sensible sequence of products (light to dark, wide to narrow, major setup to minor setup to minor setup … before going back to a major setup. And because there are so many “intangibles” that go into the master schedule, it should not be done automatically and without approval. The master scheduler will be held accountable for the quality of his or her schedule (and for the performance against it) so changes – even when facilitated with advanced software capabilities – need human review and approval. And the master scheduler has to look at alternatives (alternative solutions) to the problems he or she is posed with, communicating back those alternatives to all the constituencies that have an interest in a quality schedule. His or her response should always be: Yes we can make the requested change by doing X and Y and Z, and you’ll need to do the following. The consequence will be … The associated costs are … Customers that are affected (if any) are … Is this acceptable and something that you can live with? Not: No we can’t do it. While it’s important to provide advanced calculations, modeling and simulation tools to assist the master scheduler, in the end this is a communications job that depends on clear thinking, analysis, product and process and market knowledge, and the ability to evaluate and lay out alternative clearly to people in other parts of the organization. And naturally changes to the master schedule – the need to rebalance the supply and demand, change the sequence and flow, and respond to requests – happen every day, which makes the job especially tough. Our intent with the slides following is to demonstrate to you how the master and production schedulers can accomplish these tasks more effectively using the MSW/PSW.

Are Objectives Being Met?
New Manufacturing capabilities. “What’s in it for you?” Are Objectives Being Met? Measurements (KPI’s): Improved Customer Service: On time deliveries Reduced back orders Reduced Inventory Levels Inventory turns Reduced inventory investment Stable Manufacturing Schedule Increased production efficiency Reduced set up costs/time, esp. teardowns and resets Reduced overtime costs How well a master and in fact production scheduler is doing balancing often times conflicting demands coming their way from different people in the organization while meeting their overall objectives as just discussed can be evaluated through various measurements. You can look at such things as customer service improvements related to on time deliveries and back order reductions. Another area to evaluate for success is to analyze the company’s inventory turns – better production plans or schedules should lead to faster inventory turnovers through better demand and supply alignment. Overall inventory investment should be reduced with plans you have confidence in as you should be able to lower e.g. safety stock levels if there is more confidence that the actual production plan put in place is realistic. And lastly you would want to evaluate overall stability of the manufacturing schedule. Factors such as set up and overtime costs should have been considered and balanced during the production planning process leading to an optimal schedule with reduced set ups and costs related to having to pull in extra shifts as jobs weren’t finished on time due to initial bad planning. As an organization it is important to have these various measurements in place to ensure continuous production planning and scheduling improvements while at the same time being able to meet the customers’ demand. Considering the time I have today I thought I would just briefly touch on objectives that generally speaking master and production schedulers have in common. Of course, each of these areas also have their own separate objectives, but for purposes of this presentation I want to focus on common ones. As a planner and scheduler you want to ensure that you can meet your customer’s expectations/demand while at the same time also creating a production plan or schedule that is optimized in such a way that it leads to the most efficient way in running your shop floor. To measure your success you can look at such things as customer service improvements related to on time deliveries and back order reductions. Another area to evaluate for success is to analyze your inventory turns – better production plans or schedules should lead to faster turn overs of your inventory through better demand and supply alignment. Overall inventory investment should be reduced with plans you have confidence in as you should be able to lower e.g. safety stock levels if there is more confidence that the actual production plan put in place is realistic. And lastly you want to evaluate overall stability of your manufacturing schedule. Factors should as set up and overtime costs should have been considered and balanced during the production planning process leading to an optimal schedule with reduced set ups and costs related to having to pull in extra shifts as jobs weren’t finished on time due to initial bad planning. As an organization it is important to have these various measurements in place to ensure continuous production planning and scheduling improvements while at the same time being able to meet your customers’ demand. COGS Is Typically 50-80% of Revenue Labor Materials Burden Master Schedulers, Production Schedulers, and Material Directors Make Decisions on COGS Spending Millions of $s

Constraint-Based Master Scheduling Tool
New Manufacturing capabilities. “What’s in it for you?” Constraint-Based Master Scheduling Tool Rebuilds Master Schedule Aligns Supply and Demand Smoothes Demand by Type Backward/Forward (Daily) Average (Time Period) Production Leveling EPEI Capacity Constrained Allocation We would then transition to this slide saying something like…”Let me talk a little bit about what it is that a constraint-based master capabilities, our new capabilities in this area, will provide our customer base in the master scheduling area…. We should point out somehow that using the constaint-based master scheduling capabilities is not limited to both volume and mix changes, also a full scale re-leveling is in most cases not likely to be applied to the medium-term, but instead a “selective” type of re-leveling is more likely to be applied to the medium-term changes. It all depends on the business, what their horizons are and what they are trying to achieve at the master scheduling level. Our constaint-based master scheduling capabilities are made flexible to accommodate these various needs.

MSW – Master Scheduling
1 2 Click For Next Point Auto-Level production line schedule - considering: -Capacity Constraints -Order Priorities -Business Rules This scenario slide can be used to partly summarize what was related to with the previous slide: So, if we summarize what I (whomever I is) covered on the previous slide then we can say that as master scheduler when I notice volume and/or mix demand changes and there are a substantial number of them I would want to use the constraint-based master scheduling tool set to re-level my master schedule within a defined horizon, an example of which is shown in this screen shot. The tool set can consider capacity constraints, it can consider order priorities vs. OEM orders to be given precedence over service orders, and then there are a variety of other business rules you can apply including your own ones. Leveling Methods – “Allow me to simulate different plans to achieve an appropriate balance of on-time delivery and capacity and product mix.” 12

Production Scheduler’s Challenge
New Manufacturing capabilities. “What’s in it for you?” Production Scheduler’s Challenge Manufacturing Labor/Machine resources not available for 2nd shift – what are you going to do about this? Finance High variances to “plan” (extra set up, downtime, labor), you need to optimize your production schedule A Production Scheduler also faces many different and often times conflicting challenges. Orders might be slipping as the Materials Planner just told you that your supplier’s truck which was due to arrive tomorrow ran of the road and fell over with no replacement to be expected till a couple of days from now, the floor supervisor just told you that several of the assembly workers called in sick resulting in a couple of machines not being able to run today, scrap is increasing resulting in more overtime work needed to ensure orders are not going out the door late and so forth. Sales Drops in a new high priority order due tomorrow, which order can be moved? Materials You can’t change the schedule on short notice and expect the materials to be available.

PSW – Production Scheduling
1 2 Click For Next Point Create an executable production schedule: Sequence production orders by key attributes to achieve operational efficiency Check material availability to confirm ability to execute schedule & release Dynamic Component Status & Drill Down – “Enables me to create a production schedule I can be highly confident in to execute – knowing the materials will be there.” 14

PSW – Production Scheduling
1 2 Click For Next Point Establish schedule meeting both maintenance and scheduling needs: Review planned maintenance orders for responsible resources and start dialogue when I come in on Monday morning and prior to starting the creation of the production schedule for the next several days I first want to take a quick look to see if maintenance has scheduled anything in the next few days for the machines I am interested in. I do this using the MSW where the capacity grid shows me visual indicators of planned/completed maintenance work – for further information I can drill down into the details using the EAM Repair Orders tab. EAM Integration – “Enables me to see maintenance planning around my resources - to start a dialogue - and monitor progress of when the work will be complete.” 15

New Features for the Schedulers
New Manufacturing capabilities. “What’s in it for you?” New Features for the Schedulers Assign Need Date to orders Master Schedule by Quantity to Complete Production Schedule by Quantity to Start Schedule Work Orders on Production Lines Default BOM’s and Routings by Production Line Create schedules for work orders Schedule Management Consume Oldest Orders first, or Use Consumption Window Kanban/Lean Scheduling using Repetitive, MSW/PSW

New Features for Production Control
New Manufacturing capabilities. “What’s in it for you?” New Features for Production Control Allocate /Pick Orders prior to Release Issue or Backflush by component Pick and Issue or Pick and Transfer by item Order or Bulk Picklists Improved Order Sheets Use same functions to manage Work Orders or Repetitive Schedules Work Center and Production Line Reserve Locations Location Availability Check Issue and Picking Policies by Items Direct Issue or Backflush regardless of order type (repetitive or work order) Pick and Issue or Pick and Transfer regardless of order type (repetitive or work Order.) Picking Order by Item (moved from Control file to Item, Location, Lot/Serial, Date, Expire Date) Improved Order Sheets Print Components, Routing Data, Test Instructions Print Order Sheets for Work Orders or Repetitive Print Orders Sheets Before, After, or with Order Release Order Sheets for Repetitive Schedules or Work Orders Use same functions to manage work order or repetitive Schedules Order Lifecycle Management – Firm, Exploded, Allocated, Released, Closed for either Work Orders or Repetitive

Material Planner’s Challenge
New Manufacturing capabilities. “What’s in it for you?” Material Planner’s Challenge Manufacturing Carry more safety stock in case of low yields/ schedule changes. We have to meet our schedules! Finance Inventory turn over is too low/ Inventory Investment is too high. Need to reduce inventory levels. Suppliers Cannot ship when requested. Is it ok to ship late? And please send us a forecast for the next 3 months Materials No shelf space for excess materials. You need to reduce safety stock Subcontractors What is the supply plan for sending me materials?

Material Planner – Day In the Life
New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “I need to check the shortages for the parts I manage and determine what I can or need to do about the shortages.” Material Delays – expiring inventory Shifting demand priorities Monitor Material Shortages Material Shortages The Monitor Material Shortages would be used by your Material Expeditor or Material to monitor shortages for the items he/she is responsible for and to then take the appropriate action which could be expediting. Internal Supply Chain Synchronization

1 2 Material Planner – Day In the Life Click For Next Point Order Component Status (Shortage) Both the Scheduler and the Buyer have visibility of the material shortage and the impact to the production schedule Introduction: Scheduler knows of problems but wouldn’t it be great If material people had exact same info Mouse Click 1: The materials planner/expeditor has visibility to the same shortage information as the scheduler can see Review the monitor on the right – discussing the selection criteria and the results displayed Mouse Click 2: - Shows me every item that is going to stop production – purchased and produced 20

New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “Continuous improvement shows I have placed too many kanban cards in the loop. I need to revise the number of kanban cards in the loop so that they are correct for next month.” GRC - Resize Too Many Cards In Kanban Loop For companies working in a lean mfg environment one of the responsibilities of a Material Planner is that of kanban sizing i.e. making sure the correct number of kanban cards are rotating in a kanban loop. As we saw earlier in the presentation a critical input to the kanban sizing process is average demand. Average demand in turn is determined by what we refer to as gross requirements. ….next slide: Text to probably go with a next slide (also see the place holder next slide I already added): Run gross requirements calculation to provide as input to the average demand calculation which in turn will be input to the kanban sizing workbench helping determine through simulation using various different factors such as (Nicole?)…what the right number of kanban cards for your loop is provide external suppliers supply schedules based on gross requirements Ignore, just some Carianne notes: Too many cards in the kanban loop What is average demand based on gross requirements is first step in planning kanban cards for loop Suppliers need to have visibility in your long-term supply plan (2nd scenario) Run GRC and redo sizing

GRC New Manufacturing capabilities. “What’s in it for you?”
As we saw earlier in the presentation a critical input to the kanban sizing process starts with the gross requirements calculation output which is then fed into the average demand calculation. Average demand in turn is determined by what we refer to as gross requirements.

New Manufacturing capabilities. “What’s in it for you?” Material Planner – Day In the Life “ We are ramping up a new subcontract supplier and I need to give them a supply schedule for materials supplied by us.” Subcontract Supply Subcontractor Supplied Company Materials Numerous of QAD customers work with subcontractors where they not only have their subcontractor provide a service to them, but also have the subcontractor do part or all of the assembly. In those cases QAD customers often provide materials to these subcontractors. Supplying material to subcontractor and need to tell them what material plans are going to be and need to ship tp that plan. Here is what we are planning to make when. Automatically create supply schedule from supply item. Either sell it to them or provide free of charge. Need to be able to account for what material they have. Now we have planning component, inventory traceability, accounting

Subcontract Supply* Create subcontract supply plan:
1 2 Click For Next Point Create subcontract supply plan: - Shows supplier what materials supplied when Provides Inventory Traceability - Provides for company or supplier ownership of material Steps related to new subcontract capabilities: Generate subcontract materials plan similar to existing supplier schedules indicating to the subcontractor when you expect him to provide the subcontracted items and in what quantities. Run Subcontract Order Update to automatically generate the subcontract order(s) for the materials the COMPANY is supplying to the subcontractor for the items the company wants the subcontractor to deliver. Have the subcontract schedule for the “to be supplied materials to subcontractor” generated and applied to the orders created with step 2. Run new subcontract picking and shipping functions Automatic supply plan creation - “Enables me to help synchronize suppliers, track what inventory is sitting at suppliers and debit or credit expenses related to materials supplied to supplier.” 24

New Features for the Material Planner
Manufacturing Summit – Subtle changes Big Impact New Features for the Material Planner New GRC order Policy for planning Kanban items Use Gross Requirements or MPS as source for Average Demand Calculation Model Subcontract Supply loops for supplying materials to subcontractors with Kanbans – Size Kanban loops using Workbenches or in batch mode.

Real-Time Synchronization
1 New Manufacturing capabilities. “What’s in it for you?” Click For Next Point Real-Time Synchronization Visualized with in WB’s & Role Based Collections Enabled through the CAC Component Check Availability Engine (MRE) not (MRP) Expeditor /Buyer Scheduler Materials Production Planning & Scheduling WB’s Shortage Monitor / Purchase Direct Manage Materials by Resource Release Production by Resource CAC ENGINE

”Make more effective planning decisions”
In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make more effective planning decisions” 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 Constraint-based master scheduler function complements MRP calculation Integrated…: the MSW/PSW are a core QAD offering, integrated with QAD ERP. In many of the deals the R&D team has worked with Sales this has been seen by the customer as a BIG plus, a decision maker. Based on review of manufacturing-related information of competitors on their web site we feel that the MSW/PSW solution is way ahead of the game from a standard ERP master and production scheduling perspective. Most other ERP vendors have limited capabilities as part of their core/standard ERP system and point their customers to their APS (own or partner) solutions for anything needed beyond the basic. QAD stands out in that it has a quite sophisticated standard ERP offering that might not be automated, but based on QAD customer and field input there very clearly is a need for the type of tool we are offering and the input shows that around 80-90% of the master and production scheduling tool help our customers need can be accommodated/met with the MSW/PSW. Ability to simulate changes in real-time by manipulating schedule up-front to better anticipate conflict issues, or shortages and to re-route them appropriately Reduce..: master and production scheduling tasks require less time as the MSW/PSW assembles all critical information into a single decision point to help make planners/schedulers make informed decisions. Exception alerts to demand, supply, and capacity changes help the planner/scheduler determine where (potential) problem areas are and as such where intervention may be needed. With a tool like MSW/PSW no more manual comparisons between sales reports and Excel production schedules are needed. Compress..: the MSW/PSW provide planners/schedulers real-time input thereby reducing planning/scheduling cycles from days to minutes/hours and consequently compressing manufacturing response (lead times). Provide ability..: the MSW/PSW tool set enables planners/schedulers to simulate and as such determine the most effective master/production schedule (can not save of multiple master or production schedules, compare them and then select the best one as you see in an APS, but…it is already valuable to see the impact to capacity, material, schedule in general when you make changes to your plan/schedule – what is the impact if I move jobs up/out, what is the impact if I add more capacity on this day etc. Provides the planner/scheduler better information and therefore better decision-making capabilities. Enable..: The MSW/PSW provides you visibility to the key planning/scheduling data days/weeks/months into the future thereby enabling you to be proactive and work towards mitigating costly expedites in both premium freight and on the shop floor. Load Leveling – builds, a constraint based master scheduler function complements MRP calculation considering resource constraints in the initial Master Schedule plan Improved automation in master scheduling activities & improved visibility of demand, supply, and capacity allows master and production schedulers to focus more on exceptions and make better informed decisions faster

New Manufacturing capabilities. “What's in it for you?” Affected Roles ERP users in Operations General Plant Manager Operations Manager (VP Manufacturing, Supply Chain) … Materials Management Master Scheduler Material Planner Production Scheduler Buyer (Direct Materials) Kanban Analyst Production Operations Production Manager Production Controller Production Supervisor Shop Floor Operator Purchasing Purchasing Manager Buyer (MRO, CAPEX) Purchasing Clerk Inventory Warehouse Manager Warehouse Supervisor Material Handler Inbound Internal Outbound Quality Quality Assurance Mgr Quality Engineer Quality Technician Cost Accounting Cost Accounting Mgr Cost Analyst Cost Accountant Manufacturing (Process) Engineering Manufacturing Engineering Manager Process Engineer Value Stream Manager Product Engineering (R&D) Product Engineering Mgr Product Engineer Document Control Clerk Tools and Assets (EAM) Plant Engineer Tool Manager Tool Engineer Tool Handler These are the roles identified in operations (which are all processes related with materials management, inventory, production operations, quality, cost accounting to engineering) (There is relationship with MRP and Capital Expenditures and managing tools and assets, which is not covered in this workshop) The new functionalities will effect to a certain extend the roles in blue. These personas might be interacting with customer management personas like demand manager (forecast), Customer services rep (CSR) etc. as well with finance personas like controllers etc.

Shop Floor Operator’s Challenge
New Manufacturing capabilities. “What’s in it for you?” Shop Floor Operator’s Challenge Supervisor We must meet to day’s schedule. You need to be more productive. Production Control Schedule change due to material shortage. Make these items first. Quality Why are we having defects? How many are you finding.? Show me the SPC chart Product Engineering We need to implement a new revision. Use this new spec. Tool Maintenance We need access to the machine for two hours for repairs

Day in Life Shop Floor Operator
New Manufacturing capabilities. “What’s in it for you?” Day in Life Shop Floor Operator Set up machines, tooling Inspect & Monitor machines Record Production Activity Product Quality Control Packaging End-of-Line Move Materials How to start the day. What are the main tasks to perform The key business flow is not necessarily how one typically operates in a real-live situation Depending on events that happen in the organization one enters in the process at different starting points Understand the tasks of these key roles and how the new systems will allow these users become more effective performing these tasks The shop floor operator begins the day by clocking in and reporting into their work location. May check with outgoing shift personnel to understand work in process. Checks the schedule board to review the days work. Before proceeding with work, they check the specifications, materials lists of the orders to be produced and communicate any issues with the production controller or supervisor. They doing any setup required for the first order or general maintenance tasks such as lubricating machines or tool, or moving materials to the work cell from floor stock. They begin production activity such as running machines or beginning assembly and continue to perform tasks as necessary to produce orders/items as scheduled throughout the day. They take a regular lunch and breaks as mandated by law and may have a continual improvement meeting or department meeting which they participate in as scheduled by their supervisor. Set up machines, tooling Inspect & Monitor machines Record Production Activity Qty completed, Materials Used, Scrap, Reject, Downtime, Setup / run time Reworks Product Quality Control In-Line Inspections End-of-Line Inspections Packaging End-of-Line Move Materials To/From Production Line

Shop Floor Operator– Day In the Life
New Manufacturing capabilities. “What’s in it for you?” Shop Floor Operator– Day In the Life “What’s my schedule today? Do I have the materials and tools I need? What do I set up first?” View Production Schedule Daily Production Schedule The shop floor operator begins the day by clocking in and reporting into their work location. May check with outgoing shift personnel to understand work in process. Checks the schedule board to review the days work. Before proceeding with work, they check the specifications, materials lists of the orders to be produced and communicate any issues with the production controller or supervisor. They doing any setup required for the first order or general maintenance tasks such as lubricating machines or tool, or moving materials to the work cell from floor stock. They begin production activity such as running machines or beginning assembly and continue to perform tasks as necessary to produce orders/items as scheduled throughout the day. They take a regular lunch and breaks as mandated by law and may have a continual improvement meeting or department meeting which they participate in as scheduled by their supervisor. Internal Supply Chain Synchronization

Production Operation Activity Collection
New Manufacturing capabilities. “What’s in it for you?” Production Operation Activity Collection

New Features for Shop Floor Operator
New Manufacturing capabilities. “What’s in it for you?” New Features for Shop Floor Operator New UI’s for transactions. Work from a schedule to report activity. More intuitive UI flow , fewer transactions Report Repetitive and Work Orders from same UI View schedules to be consumed. Detail Allocations support component lot backflush reporting. Integrated Kanban/repetitive transactions

”Make users in shop floor more productive”
In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make users in shop floor more productive” Many enhancements to streamline receiving and picking processes Ability to capture all material handling actions in real-time. Key benefits or features Packaging setup and ability to uniquely identify packs will reduce time in data collection Label printing services integrated with material flow reduces costs … Still to be completed Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy

New Manufacturing capabilities. “What’s in it for you?”
Material Handling Receive Pick / Move Make Inspect Pack Put-Away / Store Pick / Move / Ship

Day in Life Material Handler
New Manufacturing capabilities. “What’s in it for you?” Day in Life Material Handler Unloading Match & Receive Transfer / Put-Away Picking Packaging & Labeling Weighing / shipment data Loading / dispatch shipments Cycle counting Account for all material handling So material handlers are responsible for all these material movements and handling events. In the past these personas not always were participating in generating transactions in the system, but well-dedicated administrative clerks did the work after the goods were physically received or inspected. Nowadays however these material handlers must ensure that all material receipts, movements and issues in the warehouse or at the shop floor are accounted for and booked in the ERP system to ensure that the information flow is synchronized and accurate with the material flow.

Serialization - Building Blocks
New Manufacturing capabilities. “What’s in it for you?” Serialization - Building Blocks New/enhanced Functionality Packaging Serialized data management Warehouse – serialized inventory Label printing services Communication and reporting Data Collection services Foundations Native API’s for all key Inventory Transactions Expanded QXtend coverage Ease of integration & support for data collection These building blocks are related with: What is needed to facilitate automations in packaging processes related with receiving goods either from suppliers or from the production lines What is needed to ensure serialization data can be generated, commissioned, aggregated and so one according to standard formats and/or specific customer regulations What is needed to ensure that one is able to track and trace both Lots of received production or supplier batches independently from your item unit and/or packaging unit serialization requirements What is needed to ensure users at the warehouse or shop floor can easily identify the materials they handle by means of data carriers like barcode labels Which are the specific needs to communicate serialized data with trading partners as well as what is needed to communicate serialized data with additional applications like MES (Manufacturing Execution Systems) such as LMS (Line Management Systems)

”More productive material handling”
In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”More productive material handling” With serialization material / packaging handling… streamlines receiving and picking processes Ensures all data collection of material handling can be done in real-time Key benefits or features Decrease transaction time / cost of material handling Improved Inventory Record Accuracy Improved quality in planning & scheduling Increase Customer Performance / Reduce customer complaints Comply with standards trading partners Inventory Accuracy More detailed information available in real-time Material Flow & Information Flow is synchronized Usage of staff: Physical Inventory from 2 days to 4 hours Decrease transaction time Movements to from terminals, handing over information to clerks etc. FCI :2000 packs per day transacted for a plant with 500 employees 25 trucks shipped per day to customers Receipts of many different materials Increase OTIF Performance / Reduce customer complaints Wrong shipments, incomplete shipments, late shipments … Simplified Processes –less keystrokes / easy of use … (show transaction before / after understanding this with 2,000 transactions a day) Planning effectiveness This all leads to more efficiencies in supply chain and manufacturing processes Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy, increase quality while managing data with higher granularity to track & trace inventory in the supply chain

Day in Life Quality Technician
New Manufacturing capabilities. “What's in it for you?” Day in Life Quality Technician Monitor changes in BOM / engineering data Write/Update Test/Inspection Procedures Perform Test/Inspections Document results of testing and inspections Root cause / Track & Trace Recommend corrective actions The Quality Control Technicians are responsible for direct examination of product to ensure that quality assurance policies are met and aligned with legislation and customer specifications. They test and inspect products to ensure the quality and functionality of manufactured goods. The technician may direct the activities of inspectors and testers on the production floor, in addition to setting up test equipment to monitor the quality of materials. The work involves working very closely with production personnel carrying out scheduled and random checks on product quality during the production process and also final tests prior to products being dispatched to the customer. They will also be involved with conducting investigations into products that require improvement as specified by the customer. It is important that they are able to identify where in the production process problems or faults could have arisen

Quality New Quality module Extend use of item attributes
New Manufacturing capabilities. “What’s in it for you?” Quality New Quality module Extend use of item attributes Expanded to support Multiple tests for an item Multiple test records for a quality order Multiple test samples for a test record Automation in creation Quality Order/events Create Certificate of Analysis Extend use of item attributes used for descriptive attributes to test specifications for qualitative attributes Expanded to support Current Coa (only a report, now we store the data so it can be reprinted , document pf record)

”Make Quality Technicians more productive”
In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Make Quality Technicians more productive” New features integrates and automates receiving and inspection processes Ability to capture all inspections data in real-time Capture Multiple Test criteria / results of test samples Quality Documents (Items and test specifications ; test records, QO’s and CoA) Integrated with new item Attributes Key benefits or features Decrease transaction time / reduce cost of tests Improved quality Recording Accuracy Ensuring non-conformance is detected at its origin within the same system Improved track & trace capabilities (inventory transactions & attribute historical data) Many enhancements to streamline inspection with material handling & shop floor activities, will ensure compliance with quality policies and ensure have non-conformance data available in real-time

”Support for Industry Compliance”
In core product (No additional cost) New Manufacturing capabilities. “What’s in it for you?” ”Support for Industry Compliance” Provides a Flexible Capability to define descriptive attributes by Item to meet ever-changing Industry and regulatory needs. Provides ability to support item lot and serialization track and trace independently from each based on multiple packaging levels All fully integrated with order entry, receipts & shipments ensuring real-time data. Key benefits or features Scalable and flexible capability supports current and new Industry Requirements across different niches Reduces Customizations and eliminates the need for 3rd Party Integrations or double entries, or Excel Attribute specifications, capturing values b and validations by attribute during receipts, picking and issuing Serialization enables support for California ePedigree Act Attributes will simplify implementation Compliance requirements leveraging real-time data for decision-making Reduce customizations

Item Attributes, Quality Control and the Effective Enterprise
New Manufacturing capabilities. “What’s in it for you?” Item Attributes, Quality Control and the Effective Enterprise QAD Item Attributes and Quality Control assist the Effective Enterprise by: Supporting customer, quality, regulatory compliance Eliminating manual or external processes for managing extended/unique item attributes Allowing combining and splitting lots Eliminating need for external quality tracking Improving tracking and tracing

Introduction Process 3 to 5 early Adopters
New Manufacturing capabilities. “What’s in it for you?” Introduction Process 3 to 5 early Adopters Multiple Industries Knowledge Transfer Managed by R&D 3 to 15 – Limited Availability Multiple Regions Internationalized Managed by Services General Availability Regional

What’s In it for You?

Manufacturing Futures

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Manufacturing Futures

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