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

2. 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 QADEagle

3. Keeping the Promise: 3 Questions 1. 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 WaterCustom Service Equipment FiltrationControls

5. About A.J. Antunes & QAD QAD customer since 1996 May 2009 - Upgrade from eB 2.1 to QAD 2008SE with.Net 2.6.1 March 2010 -.Net Upgrade from.Net 2.7.1 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, 2008 - 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, 2008 - Contracted Liberty Technology Advisors to evaluate AJA’s current ERP implementation August, 2008 – LTA recommended that AJA: 1.Re-engineer all business processes 2.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. 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 Key Decisions After Re-engineering

9. 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 Key Decisions After Re-engineering

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

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

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 QAD tools to view/analyze data Daily Activities REAL-TIME BROWSES Snapshot Reporting BROWSES FROM PROCESS MAPS Performance Metrics BROWSES FROM OPERATIONAL METRICS Eagle to execute transaction processing New processes to streamline procedures

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

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

17. AJA Process Map

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

21. Operational Metrics

22. Example of a browse “behind the metric”

23. 275 Custom Programs TOTALREPORTSMAINTEXTRACTUTILITYDATA COLLECTION BEFORE Reimplementation 27516535323310 AFTER Reimplementation 13471336240 Reduction in Custom Code 51%57%6%81%27%100%

24. 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.

25. 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 1 st 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

27. 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

28. 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

29. 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

30. 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)

31. 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: SERVICE PARTS STAGING 7 (To China) STAGING 8 (Completed Kits) STAGING 5 (From Gen Warehouse)

32. 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)

34. 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)

35. AJA Service Parts On-Time Shipping

36. 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

37. 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

38. 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

39. 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

40. 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

41. 3.2 - Inventory Detail by Item Browse Used to monitor STAGING location (daily)

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

43. Lessons Learned Browse 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

44. Questions

45. Contact Information: David Petzel IT Director A.J. Antunes & Co. Ph: (630) 784-3435 E: david.petzel@ajantunes.comdavid.petzel@ajantunes.com W: www.ajantunes.comwww.ajantunes.com Jim Miceli Senior Consultant Eagle Consulting & Development Phone: (973) 838-5006 ext 120 Email: jmiceli@eaglecondev.comjmiceli@eaglecondev.com Web: www.eaglecondev.comwww.eaglecondev.com