September 27, 2010 QAD Enterprise Asset Management

Asset Managements Importance As much as 50% of capital investment is new equipment is made to compensate for the underperformance of existing assets Project Accounting and Controls Plant / Equipment Maintenance MRO Inventory and Purchasing

Plant Operations Role QAD Enterprise Asset Management FAB005 Heat Treat FAB005 LA001 Shipping Manufacturing Plant Planning and Scheduling Plant Operations Supplier Customer

The Challenge Many Manufacturing Companies have not integrated Plant Operations into their Production Business Processes Plant Operations Sales & Order Entry Quality Assurance Production Operators Direct Materials Engineering Services Shipping & Receiving Production Planning & Scheduling Manufacturing Process

The Goal Align Plant Operations with Product Goals and Objectives Plant Operations Sales & Order Entry Quality Assurance Production Operators Direct Materials Engineering Services Shipping & Receiving Production Planning & Scheduling Manufacturing Process

Plant Operations Challenges Project Accounting and Controls – Spreadsheets, labor intensive and time consuming – Information out of date and inaccurate – Timely and accurate invoices associated with customer funded projects Plant and Equipment Maintenance – Poor equipment reliability results in 15%+ lost production – 80%+ reactive maintenance – 55% average Overall Equipment Effectiveness (OEE) MRO Inventory and Purchasing – 30% of MRO inventory is obsolete – 25% of purchases are incorrect or unnecessary – Expensive spare parts are not effectively shared between plants QAD Enterprise Asset Management

QAD EAM Components QAD Enterprise Asset Management QAD BI March 2011

Business Drivers: Project Accounting On-time delivery – Move assets into production sooner, which enables equipment to start generating revenue Within budget – Provide engineers with better visibility of project spending – QAD EAM provides extensive spending controls through software Whats New? – Manage Customer Funded Projects QAD Enterprise Asset Management

Business Drivers: Plant Maintenance Maximize equipment utilization – Downtime causes lost production and missed shipment dates – Supports preventive maintenance that improves equipment reliability Improve quality – Efficient equipment produce higher quality products Labor utilization – Labor is largest component of fixed maintenance cost – Make maintenance personnel more productive Whats New? – Completely redesigned UI QAD Enterprise Asset Management

Business Drivers: Inventory & Purchasing Support production – Ensures critical spare parts are on hand Improve purchasing efficiency and control – Source spare parts quickly at the lowest cost – Eliminate unnecessary purchases Lower MRO inventory investment – Right sizing inventory – Minimizing MRO investment Whats New? – New Reporting Solution QAD Enterprise Asset Management

QAD EAM Release Status September 2010 – EAM v12.2 GA for QAD 2009 EE – EE December 2010 – EAM v Begin accepting Early Adopters for QAD 2007 SE – 2010 SE March 2011 – EAM v12.3 GA for both EE and SE versions QAD Enterprise Asset Management

Questions Bo Hagler Kate Nancy QAD Enterprise Asset Management