1. QAD Enterprise Asset Management (EAM)
MMUG Midwest User’s Group
March , 2008
John Woodburn
Solution Consultant

2. Manufacturing Company’s Challenges
Companies are driven to find ways to:
Increase production output
Improve product quality
Reduce cost
Plant Operations are responsible for a company’s most critical assets, its production equipment. Reliable equipment will:
Maximize production performance
Minimize scrap / rework
Lower cost
Costs 4X more to fix broken equipment than to maintain it

3. How QAD EAM Supports Manufacturing
QAD EAM is responsible for the management of the manufacturing assets including;
The design, construction and commissioning
Operations and maintenance (preventive and repairs)
Replacement / upgrade of equipment
Asset Lifecycle Management

4. QAD Enterprise Asset Management
The Solution

5. QAD EAM for Plant Operations
The QAD EAM suite provides three solutions:
Project Controls Management
Plant Maintenance
MRO Supply Chain
MRO Inventory
MRO Purchasing
Plant Operations

6. Project Controls Management
Types: Capital, Prototype, Expense, etc
On-Time Delivery
Properly managed projects bring assets on line quicker
Within Budget
A manager must have visibility and control of spending against a project
Plant Operations

7. Plant Maintenance
Goal: Maximize manufacturing equipment utilization and minimize repair costs
Equipment breakdowns directly contributes to loss production, missed shipment dates and increased cost
Comprehensive preventive maintenance program and increased positive control of corrective maintenance results in improved equipment reliability
Plant Operations

8. MRO Inventory Support Production Lower MRO Inventory
By ensuring critical spare parts are on-hand when needed, production downtime can be minimized
Lower MRO Inventory
A better understanding of critical spare parts requirements will lead to right sizing inventory, minimizing investment
Plant Operations

9. MRO Purchasing
Goal: Source critical spare parts from approved suppliers as quickly as possible at the lowest possible cost
Improve Purchasing Efficiency & Control
Better purchasing control has helped companies reduce spending by sharing parts between sites and avoiding unnecessary purchases
Plant Operations

10. Fully Integrated with QAD Enterprise Application 2007
QAD Enterprise Asset Management
Fully Integrated with QAD Enterprise Application 2007

11. QAD Financials QAD EAM Downloaded / Updated via Automatically
Master Tables
Cost Center
Account / Sub-Account
Projects
Budgets
Accounting Calendar
Bill to Address
Ship to Address
Currency / Exchange Rates
Suppliers
Terms
Standard Clauses A C O U N T I G P R H S
Master Tables
Cost Center
Account / Sub-Account
Projects
Budgets
Accounting Calendar
Bill to Address
Ship to Address
Currency / Exchange Rates
Suppliers
Terms
Standard Clauses A C O U N T I G P R H S
Downloaded /
Updated via
Automatically

12. Purchasing Integration
QAD EAM
QAD eB2.1
Purchase
Requisition
Purchase
Order
Purchase
Order
PO Receipt
PO Receipt
EAM PO’s can be received
via EAM or QAD
Receipts
Pending Voucher
MRO
Inventory
Unposted GL
Unposted GL
Expense

13. Part F105 = 2 cycles per 5,000 parts = 10,000 cycles
Production Driven Maintenance (PDM) Scheduling Preventive Maintenance Based on Equipment Usage
QAD eB2.1
QAD EAM
Table: opt_hist
Work Center = L100
Machine = 60
Tool = T50
Part = F105
Qty = 5,000
UOM Conversion
Part F105 = 2 cycles per 5,000 parts = 10,000 cycles
Equipment (Press-A)
Sub-component A
Sub-component B
Tool / Die (Die-10)
EAM Equipment Structure
Equipment Mapping
MFGPRO EAM
L = Press-A
T50 = Die-10
Create PM Work Orders

14. QAD Enterprise Asset Management
Getting Results

15. Background
Formed in 1995 as joint venture between Monsanto and Akzo Nobel. In 1997, Monsanto spun off its investment in Flexsys to Solutia Inc.
Flexsys is a chemical manufacturing company. Its products help cure and protect the rubber, increase durability and fatigue life, control color and provide heat resistance.
Manufacturing plants in US, Brazil, UK, Belgium, France, Germany, Italy, Malaysia and Japan

16. Why Focus on Maintenance
Prior to 2003, Flexsys had been focusing on eliminating waste by adopting “Oliver Wight Class A” standards
Although Flexsys achieved “Class A” certification, production performance remained below Class A levels
Production output in relation to plant capacity was around 75%
Class A levels required production output to be in excess of 90%
One of the reasons was poor equipment reliability!

17. By the Numbers… Then and Now
Production Scheduling Efficiency % 95%
Overall Equipment Effectiveness (OEE) % 88%
Maintenance related Down Time % - 15% <5%
Reduction in Maintenance Budget 12%
Percentage of Reactionary Repairs % 11%

18. QAD Enterprise Asset Management
Product Demo