1. Reimplementation: Changing the Way We Do Business
David Petzel IT Director A.J. Antunes

2. A Data-Driven A.J. Antunes
The Promise in
Our Abstract :
We promised to tell you how the QAD + Eagle Solution made A.J. Antunes a data-driven company.
A Data-Driven A.J. Antunes
A.J. Antunes
QAD
Eagle

3. Keeping the Promise: 3 Questions1.
How did a re-implementation of QAD Enterprise Applications reveal the potential for changing the way the company measures its business and makes decisions? 2.
What were the systems, processes or solutions that made that potential a reality? 3.
How do we know it worked?

4. About A.J. Antunes & Co.
Manufacturing company based in Carol Stream, IL
Facility in Suzhou, China
Product Lines:
Roundup Food Vizion Water Custom
Service Equipment Filtration Controls

5. About A.J. Antunes & QAD QAD customer since 1996
May Upgrade from eB 2.1 to QAD 2008SE with .Net 2.6.1
March Net Upgrade from .Net to .Net 2.8.1
QAD Modules in use at AJA:
Using most of the standard QAD modules
QPS
CSS
DRP

6. Why a “Reimplementation” of QAD?
May, AJA CEO questioned the current QAD implementation:
Why is it so hard to gather good data?
Need more than historical reporting at our fingertips
CEOs from other companies brag about their systems
June, Contracted Liberty Technology Advisors to evaluate AJA’s current ERP implementation
August, 2008 – LTA recommended that AJA:
Re-engineer all business processes
Upgrade QAD to 2008SE and the .Net UI
QAD is right for our business
.Net UI brings a whole new level of functionality
Bad News/Good News………….14 years of experience using QAD

7. AJA Process Re-engineering
4 months (Nov 15 to March 15)
25 to 35 hours per week
Key decision to use Liberty Technology Advisors (LTA) for all process mapping
RCM Technologies to provide expertise to blend our future state process maps with the functionality available in QAD2008SE & .Net UI
China Team brought in to participate in process mapping on key intercompany processes

8. Key Decisions After Re-engineering
1) Inventory Control is top priority
Implement discrete inventory locations
Eliminate handwritten “hot” sheets
Implement cycle counting
2) Real-time transaction processing required
Selected Eagle’s RF Express for QAD Enterprise Applications
3) Implement DRP module to manage orders with China
4) Consolidate China db
5) Manage Service Parts as a Profit Center

9. Key Decisions After Re-engineering
6) Adv Repetitive Backflush Analysis Required
Are we backflushing components at the right time at the right place?
7) Point of Use Analysis for inventory items required
Which items belong in a Work Cell? Eliminate unnecessary transfers.
8) Begin work on custom browses required by new processes

10. How AJA has become a data driven company
New processes to streamline procedures
Eagle to execute transaction processing
QAD tools to view/analyze data
Daily Activities
REAL-TIME BROWSES
Snapshot Reporting
BROWSES FROM PROCESS MAPS
Performance Metrics
BROWSES FROM OPERATIONAL METRICS

11. How AJA has become a data driven company
New processes to streamline procedures
Eagle to execute transaction processing
QAD tools to view/analyze data
Daily Activities
REAL-TIME BROWSES
Snapshot Reporting
BROWSES FROM PROCESS MAPS
Performance Metrics
BROWSES FROM OPERATIONAL METRICS

12. Why Eagle: Technical Considerations
Seamless plug-and-play integration with QAD
Online, real-time, Progress-based
No side databases, separate server or middleware
Calls QAD edit and update routines to provide real-time data checking
Supports a wide array of devices, including Intermec CK3 RF terminals
ALL Eagle installations are also QAD installations
Not a canned solution; over 2,000 configurable RFvalues

13. Why Eagle: Cost Considerations
Less hardware and software are required because RF Express™ for QAD Enterprise Applications uses the existing database and existing server
Reduced database/server ongoing maintenance
Simplified database control: QAD and Eagle work together

14. How AJA has become a data driven company
New processes to streamline procedures
Eagle to execute transaction processing
QAD tools to view/analyze data
Daily Activities
REAL-TIME BROWSES
Snapshot Reporting
BROWSES FROM PROCESS MAPS
Performance Metrics
BROWSES FROM OPERATIONAL METRICS

15. 3.2 - Inventory Detail by Item Browse
Used to monitor “SO” locations (daily)

16. How AJA has become a data driven company
New processes to streamline procedures
Eagle to execute transaction processing
QAD tools to view/analyze data
Daily Activities
REAL-TIME BROWSES
Snapshot Reporting
BROWSES FROM PROCESS MAPS
Performance Metrics
BROWSES FROM OPERATIONAL METRICS

17. AJA Process Map

20. How AJA has become a data driven company
New processes to streamline procedures
Eagle to execute transaction processing
QAD tools to view/analyze data
Daily Activities
REAL-TIME BROWSES
Snapshot Reporting
BROWSES FROM PROCESS MAPS
Performance Metrics
BROWSES FROM OPERATIONAL METRICS

22. Operational Metrics

23. Example of a browse
“behind the metric”

24. 275 Custom Programs TOTAL REPORTS MAINT EXTRACT UTILITY
DATA COLLECTION
BEFORE Reimplementation
275
165 35 32 33 10
AFTER Reimplementation
134 71 6 24
Reduction in Custom Code
51%
57% 6%
81%
27%
100%

25. Success Story #1 – Advanced Repetitive
Problem: Repetitive work cell activity is not transacted in real-time, causing material issues and handwritten “hot” sheets.
Goal: Use the future state Process Map to eliminate time delays and to empower Line Leaders to effectively manage their cells.

26. Success Story #1 – Advanced Repetitive
How we did it:
Process Change: Add Operations to Routings to improve work cell visibility:
Assembly (90% of BOM is backflushed here)
Testing (up to 24 hours)
Packaging
Staging (after completion)
Process Change: Specify timing and parameters for Repetitive Picklists so that material for tomorrow’s production shows up before 1st shift begins
Technology:
Eagle backflush transactions (handheld & PC’s)
Eagle label printing (on wireless printers) so that all material would be identified with a Part Number/Bar Code
Production Line Schedule Browse (custom browse)
Empowers Line Leaders to prioritize daily production
Paperless interaction w/Scheduling
Auto Refresh  “Live” browse for anyone viewing it

28. Success Story #1 – Advanced Repetitive
Result:
Line Leaders rely on QAD browses
With timely backflushing, all Team Members rely on Inventory accuracy within the Work Cells
Handwritten sheets are gone
Product identification is not an issue any more
Line Leaders are quick to identify BOM issues
Expedited orders are handled very easily without the burdensome paperwork
Line Leaders are expected to be proactive for maintaining their Work Cell inventory

29. Success Story #2 – Service Parts
Problem: Service Agencies supporting key accounts are complaining about late deliveries and shipping errors
Goal: Improve on-time and overall Shipping performance in the Service Parts Division

30. Success Story #2 – Service Parts
Overview of Service Parts:
Replacement component parts
Kits that are assembled within the Service Parts assembly area; kitting area set up as a repetitive w/c
High/growing volume
Daily demand for Next Day Air shipments domestically and internationally
Same components that are used by Work Cells for finished goods assembly

31. Success Story #2 – Service Parts
How we did it:
Process Change: Get inventory under control in SP locations
Delineate Service Parts Kitting work cell from Service Parts stock room
Operate the SP Kitting as a lean repetitive work cell; maintain inventory only on exclusive items
Define a schedule for QPS planning and repetitive picklist printing for the Kitting area
Define a schedule for Picklist printing for SP components
Develop a weekly Cycle Count schedule to cover stocking and staging locations
Process Change: Develop policy that any “rush” order for a replacement part or kit received by 3:00pm CST will be shipped Next Day Air (6:00pm pickup)

32. Success Story #2 – Service Parts Shipping
How we did it:
Process Change: Create locations, locations, locations to manage the flow of material to and from the Service Parts area:
STAGING 5
(From Gen Warehouse)
SERVICE
PARTS
STAGING 7
(To China)
STAGING 8
(Completed Kits)

33. Success Story #2 – Service Parts Shipping
How we did it:
Technology:
Eagle backflushes kits (PC’s)
Eagle transfers product to/from Staging locations
Eagle picks product to an “SO” location (handheld device)
Eagle performs weekly Cycle Counts of Service Parts locations (handheld device)
SP Open Line Items (custom browse)
Empowers order processors to prioritize picking/packing activity
Next Day Air “rush” orders are quickly identified
Takes advantage of Auto Refresh
Inventory Detail By Item Browse (custom browse)
Production Line Schedule Browse (custom browse)

35. Success Story #2 – Service Parts
Results:
Satisfaction of Service Agencies has improved tremendously
Ownership is in the hands of Line Leaders
Adjustments to schedules are immediately visible to Line Leaders
Still requires communication for “rush” orders
With improved efficiencies, SP is no longer overwhelmed by spikes in volume
Service Parts continues to grow at a solid pace
On-Time Shipping has improved from 82% (July 2009) to 99.3% (August 2010)

36. AJA Service Parts On-Time Shipping
1st Qtr
2nd Qtr
SP Parts Shipped
74973
89516
SP Shipped On Time
74344
88838
SP On Time %
99.2%
AJA Service Parts On-Time Shipping

37. Success Story #3 – Shipping
Problem: Frequent cases of incomplete shipments, incorrect shipments, duplicate shipments, or duplicate serial numbers
Goal: To provide Shipping with tools to improve Shipping performance measurements and to proactively manage outbound Staging locations

38. Success Story #3 – Shipping
Responsibilities of AJA’s Shipping Team
Picking and shipping for food equipment FG’s
Picking and shipping for water filtration FG’s
Shipping for Controls
Shipping for Service Parts
Shipping consolidation for China container shipments
Manage various Staging locations

39. Success Story #3 – Shipping
How we did it:
Process Change: Separate and identify product coming into Shipping
Process Change: Implement controls for Picklist and Packing List management
Process Change: Authorize Shipping to proactively pull FG’s coming out of work cells

40. Success Story #3 – Shipping
How we did it:
Technology:
Eagle PIC transaction; creates a virtual “SO” location and once a serialized item is picked, it cannot be picked to another Sales Order. Allocating without formal SO Allocations
PIC transaction provides option for printing a Post-Pick Packing List
Eagle DO Shipment/DO Receipts for all DRP orders To/From China (handheld device)
Eagle transfers; scan the Serial # and scan the To: location (handheld device)
Eagle used to perform Cycle Counts of Finished Goods bin locations (handheld device)
Eagle IBL (Inventory By Location) used to locate product (handheld device)
Open Sales Order Browse (custom browse)
Inventory Detail By Item Browse (custom browse)
Check/verify inventory availability
Manage Staging locations

41. Success Story #3 – Shipping
Results:
Eagle PIC program provides a tracking tool for virtual “SO” locations
Inventory is not getting mixed up within the Shipping area because Staging locations are helping
Real-time picking or shipping available to all users via browses
Phone calls between Shipping and Customer Service have dropped by 50%
Shipping is clean and organized

42. 3.2 - Inventory Detail by Item Browse
Used to monitor STAGING location (daily)

43. 3.2 - Inventory Detail by Item Browse
Used to monitor STAGING location (daily)

44. Lessons Learned Browse Control .Net Upgrade Process Map Control
Maintain code control. Browses can easily get out of hand. Think about a performance monitoring tool to identify any misbehaving browses
.Net Upgrade
Users love their Favorites and moving them to a new version is very tedious
Process Map Control
Process Map Editor In Chief oversees all process map updates
Operational Metrics
Take a Team approach to maintain consistency and to get approval on thresholds

45. Questions

46. Contact Information:
David Petzel
IT Director
A.J. Antunes & Co.
Ph: (630) E: W:
Jim Miceli
Senior Consultant
Eagle Consulting & Development
Phone: (973) ext 120
Web: