QAD Enterprise Asset Management (EAM) MMUG Midwest User’s Group March 16 - 18, 2008 John Woodburn Solution Consultant xjw@qad.com

Manufacturing Company’s Challenges Companies are driven to find ways to: Increase production output Improve product quality Reduce cost Plant Operations are responsible for a company’s most critical assets, its production equipment. Reliable equipment will: Maximize production performance Minimize scrap / rework Lower cost Costs 4X more to fix broken equipment than to maintain it

How QAD EAM Supports Manufacturing QAD EAM is responsible for the management of the manufacturing assets including; The design, construction and commissioning Operations and maintenance (preventive and repairs) Replacement / upgrade of equipment Asset Lifecycle Management

QAD Enterprise Asset Management The Solution

QAD EAM for Plant Operations The QAD EAM suite provides three solutions: Project Controls Management Plant Maintenance MRO Supply Chain MRO Inventory MRO Purchasing Plant Operations

Project Controls Management Types: Capital, Prototype, Expense, etc On-Time Delivery Properly managed projects bring assets on line quicker Within Budget A manager must have visibility and control of spending against a project Plant Operations

Plant Maintenance Goal: Maximize manufacturing equipment utilization and minimize repair costs Equipment breakdowns directly contributes to loss production, missed shipment dates and increased cost Comprehensive preventive maintenance program and increased positive control of corrective maintenance results in improved equipment reliability Plant Operations

MRO Inventory Support Production Lower MRO Inventory By ensuring critical spare parts are on-hand when needed, production downtime can be minimized Lower MRO Inventory A better understanding of critical spare parts requirements will lead to right sizing inventory, minimizing investment Plant Operations

MRO Purchasing Goal: Source critical spare parts from approved suppliers as quickly as possible at the lowest possible cost Improve Purchasing Efficiency & Control Better purchasing control has helped companies reduce spending by sharing parts between sites and avoiding unnecessary purchases Plant Operations

Fully Integrated with QAD Enterprise Application 2007 QAD Enterprise Asset Management Fully Integrated with QAD Enterprise Application 2007

QAD Financials QAD EAM Downloaded / Updated via Automatically Master Tables Cost Center Account / Sub-Account Projects Budgets Accounting Calendar Bill to Address Ship to Address Currency / Exchange Rates Suppliers Terms Standard Clauses A C O U N T I G P R H S Master Tables Cost Center Account / Sub-Account Projects Budgets Accounting Calendar Bill to Address Ship to Address Currency / Exchange Rates Suppliers Terms Standard Clauses A C O U N T I G P R H S Downloaded / Updated via Automatically

Purchasing Integration QAD EAM QAD eB2.1 Purchase Requisition Purchase Order Purchase Order PO Receipt PO Receipt EAM PO’s can be received via EAM or QAD Receipts Pending Voucher MRO Inventory Unposted GL Unposted GL Expense

Part F105 = 2 cycles per 5,000 parts = 10,000 cycles Production Driven Maintenance (PDM) Scheduling Preventive Maintenance Based on Equipment Usage QAD eB2.1 QAD EAM Table: opt_hist Work Center = L100 Machine = 60 Tool = T50 Part = F105 Qty = 5,000 UOM Conversion Part F105 = 2 cycles per 5,000 parts = 10,000 cycles Equipment (Press-A) Sub-component A Sub-component B Tool / Die (Die-10) EAM Equipment Structure Equipment Mapping MFGPRO EAM L100 + 60 = Press-A T50 = Die-10 Create PM Work Orders

QAD Enterprise Asset Management Getting Results

Background Formed in 1995 as joint venture between Monsanto and Akzo Nobel. In 1997, Monsanto spun off its investment in Flexsys to Solutia Inc. Flexsys is a chemical manufacturing company. Its products help cure and protect the rubber, increase durability and fatigue life, control color and provide heat resistance. Manufacturing plants in US, Brazil, UK, Belgium, France, Germany, Italy, Malaysia and Japan

Why Focus on Maintenance Prior to 2003, Flexsys had been focusing on eliminating waste by adopting “Oliver Wight Class A” standards Although Flexsys achieved “Class A” certification, production performance remained below Class A levels Production output in relation to plant capacity was around 75% Class A levels required production output to be in excess of 90% One of the reasons was poor equipment reliability!

By the Numbers… Then and Now 2003 2006 Production Scheduling Efficiency 83% 95% Overall Equipment Effectiveness (OEE) 80% 88% Maintenance related Down Time 10% - 15% <5% Reduction in Maintenance Budget 12% Percentage of Reactionary Repairs 90% 11%

QAD Enterprise Asset Management Product Demo