1. Month-End Close Optimization Kobe Aluminum Learn how Kobe Aluminum has trimmed out month-end close processes from 45 days to 3 days. Come hear how they are leveraging QAD software to support month-end close business processes, which results in large efficiency gains. The presenters will discuss the challenges, processes and tools that have allowed Kobe to achieve these results.

2. Focus Concepts Materiality Process Speed Automation Analysis

3. Concepts Why is month end close important? PDCA Standard Work 7 Habits

4. Plan–Do–Check–Act PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA).

5. Standard Work By documenting the current best practice, standardized work forms the baseline for continuous improvement (kaizen). As the standard is improved, the new standard becomes the baseline for further improvements, and so on. Improving standardized work is a never- ending process. Basically, standardized work consists of three elements: Takt time, which is the rate at which products must be made in a process to meet customer demand. The precise work sequence in which an operator performs tasks within takt time. The standard inventory, including units in machines, required to keep the process operating smoothly.

6. The Seven Habits of Highly Effective People Be Proactive Begin with the End in Mind Put First Things First Think Win-Win Seek First to Understand, Then to be Understood Synergize Sharpen the Saw

7. Materiality Determine your materiality level for booking month end adjustments Non-Standard Adjustment slow your close down.

8. Process Document Your Day 1 through Day X closing activities. Maintain your closing checklist Calendar Maintenance Journal Entry List Journal Entry Sequence Journal Entry Owner Require Accountants to Load Journal Entries. Accountants to Update Checklist when task are complete. Identify Non-Accounting Tasks impacting close.

9. Automation: Validate Interfaces Are Interfaces working? Do interfaces generate load errors? Typical Interfaces Payroll Concur P-Card Freight Bills

10. Standard Close Sequence 1.Run Operational Programs as close to month end as possible: Work Order Accounting Close Post Accumulated Variances Cumulative Order Close 2.Manage / Maintain GL Calendar for Month End Cut-Off. 3.Close Sub Modules ASAP Does AP/AR Need to be Open After Month End? No - Book Reversing Accrual Entries 4.Book Standard Entries 1.Prepaid 2.Accruals 3.Loan Amortization 4.Depreciation

11. Standard Close Sequence (Continued) 4. Book Standard Entries Continued 5.Run GL Interfaces Related to previous Month. 5.Analyze Results 1.Trial Balance Review 2.GLRW Review - This month last month Comparison. This month to Budget Comparison. YTD actual to YTD Budget Comparison. 6. Adjust Financial Transaction Errors with GL Reversing Entries. Require submodule transactions errors are corrected in subsequent period.

12. Standard Close Sequence (Concluded) 7.Complete FX Revaluation. 8.Close the Calendar for the General Ledger.

13. QAD Closing Process Map