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Vit-Best Achieves Continuous Improvement with QAD Automation Solutions (AS)
Scott Blaska – CIO, Kingdomway USA (Vit-Best Nutrition parent) Michael Ochi – AS Solution Architect, QAD Inc. May 9, 2017
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Vit-Best Achieves Continuous Improvement with QAD Automation Solutions
Safe Harbor This presentation includes forward-looking statements about QAD and its business. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in QAD’s SEC filings, including the company's latest Annual Report on Form 10-K dated April 7, 2017 and in particular the section titled “Risk Factors” therein and other periodic reports the company files with the Securities and Exchange Commission thereafter. This presentation contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. This presentation identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies. The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. QAD undertakes no obligation to update forward-looking statements.
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Introduction Scott Blaska CIO, Kingdomway USA Michael Ochi
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Introduction Scott Blaska CIO, Kingdomway USA Michael Ochi AS Solution Architect, QAD
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Agenda Past Present Future Company Background – Vitatech
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Agenda Past Company Background – Vitatech Phase I – Production and Inventory Phase II – Labor Tracking Lessons Learned Present Phase III – Full Roll-Out Benefits Future Phase IV – Warehouse Management
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Past
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Company Background Product History Growth
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Company Background Product History Growth
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Phase I – Production and Inventory
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase I – Production and Inventory Early adopter Discrete production Inventory management
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Phase I – Discrete Production Process
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase I – Discrete Production Process Production Receipt Component Reverse Issue Component Issue Component Pick-Transfer
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Phase I – Inventory Management
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase I – Inventory Management Transfer by Lot Cycle Count Initial Cycle Count Recount Label Reprint
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CHANGING ATMOSPHERE
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Ownership Change Management and Priority Changes
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Ownership Change Management and Priority Changes Within 6 months of M&A Change of President Change of CFO Change of Ops VP and Director Change of Quality VP and Director Priority change From: Meet all customer requests all the time regardless of margin To: Understand costs to define and drive standard behavior
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Ownership Change Management and Priority Changes
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Ownership Change Management and Priority Changes New Management Unaccustomed to full manufacturing New Doubt Unsure if QAD is right solution New Focus Use QAD to cover knowledge gap
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Phase II – Labor Tracking
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase II – Labor Tracking Pain points Information: Lacked data to calculate standard costs Resources: Employee spending all day to collect manual records Opportunities “Hard:” Use AS to gather Right data Right format Right time “Soft:” Use AS to demonstrate value and partnership of QAD
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Phase II – Labor Tracking
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase II – Labor Tracking Created single transaction Removed need for double data entry Provided data validations throughout entry process
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Lessons Learned Seek cross-functional management sponsorship
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Lessons Learned Seek cross-functional management sponsorship Train the trainer Create process to facilitate operational efficiency Adhere to defined process
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Present
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MATURING ATMOSPHERE
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Maintain Improve Future prospects Future needs Pain points
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Maintain Improve Future prospects Bring sister company into QAD Acquiring new companies Future needs Create standard platform Enable upgrades Pain points Partner DC solution frequently shuts down Unable to upgrade entire system without revamp of DC Opportunities Utilize new QAD functionality to improve processes Move all DC to AS, eliminate downtime
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Phase III – Full Roll-Out
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase III – Full Roll-Out Bring remaining processes into AS PO receiving Production prep Take advantage of opportunity to redesign
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Phase III – Full Roll-Out: Receiving
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase III – Full Roll-Out: Receiving Purchase order receipt Integrated quality order Integrated label print Standalone label print Inventory status change by lot Inventory transfer by lot
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Phase III – Full Roll-Out: Manufacturing Prep
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase III – Full Roll-Out: Manufacturing Prep Pick and stage components by order Work order kit create Component weigh and kit Integrated label print Work order kit confirm Work order kit transfer Work order kit component issue
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Benefits Integrated Flexible Scalable Scope Implementation model
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Benefits Integrated Flexible Scalable Scope Implementation model
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Future
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Phase IV – Shipping and Warehouse Management
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Phase IV – Shipping and Warehouse Management Pain points Lack of business rules around warehouse management Tribal knowledge/operator memory driving throughput Opportunities Implement AS Warehouse Extension to optimize movement and minimize space requirements Shorten lead times and improve customer relations by automating shipping
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Unlock Addition Value Enable core improvements
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Unlock Addition Value Enable core improvements Cloud – for scalable base Channel Islands – for state of the art user experience QAD Enterprise Platform – for extendability
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Your Next Steps Consider the following
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Your Next Steps Consider the following What are the pain points? What are the opportunities? Envision your organization solving the pain points and capitalizing on the opportunities Meet us at the demo booth
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Vit-Best Achieves Continuous Improvement with QAD Automation Solutions
Highlighted Sessions Making Your Manufacturing Agile in an Industry 4.0 World Guido Van den Broeck, QAD Bengt Johansson, QAD Wednesday, May 1:30 pm Ambassador 3 The Digitization of Manufacturing Kim Knickle, IDC Wednesday, May 3:00 pm Ambassador 1 QAD Technology Vision Tony Winter, QAD Wednesday, May 4:15 pm Ambassador 2
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Questions and Answers Michael Ochi Scott Blaska
Vit-Best Achieves Continuous Improvement with QAD Automation Solutions Questions and Answers Michael Ochi AS Solution Architect, QAD Direct Direct phone: Commercial Scott Blaska CIO, Kingdomway USA
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Vit-Best Achieves Continuous Improvement with QAD Automation Solutions
©QAD Inc. 2017
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