1. Manufacturing Update Joseph A. Phelan, CPIM Senior Director of Manufacturing R&D, QAD QAD Explore 2012

2. 2 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. Safe Harbor Statement Manufacturing Update

3. 3 The Effective Enterprise What is being worked on in 2012 -Logistics accounting / I19 -Item serialization -Configured attributes/quality extensions -Planning/scheduling workbenches -Business intelligence -Business process management (BPM) Summary What the future may bring Next steps Questions Presentation Agenda Manufacturing Update

4. 4 “An Effective Enterprise is one where every business process is working at peak efficiency and perfectly aligned to the company’s strategic goals. ” Effective Enterprise Manufacturing Update

5. 5 Logistics Accounting / Internationalization Manufacturing Update

6. 6 International regulatory compliance -International financial reporting standards (IAS-2) Cost of inventories comprises all costs of purchase, conversion, and other costs incurred in bringing the inventory to their present location and condition. Inventory cost control -Ensure better visibility and control on inventory and costs both primary (material) costs and any cost attributable to movement of inventory Purchased goods / inbound receipts Sales/ outbound shipments Logistics Accounting / Internationalization Manufacturing Update

7. 7 Both inbound and outbound related logistics costs Ensure accurate payments to carriers by matching freight accruals with supplier’s invoices Allows deferred costs such as freight and shipping charges to be accommodated in the costing methods supported by QAD -Integrated with periodic costing -Improves cost accuracy Logistics Accounting / Internationalization Manufacturing Update Invoice

8. 8 Item Serialization Manufacturing Update

9. 9 Supports regulatory compliance -Early implementation before 2015 Provides product validation and authentication against counterfeiting -Public safety -Brand protection Improves inventory accuracy and supply chain efficiencies -Trading partner compliancy Item Serialization Manufacturing Update

10. 10 Packaging infrastructure Unique identification number -User defined format Transaction enabled Connectivity/integration -APIs (WMS, data collection, etc.) Bar code label printing service Item Serialization Manufacturing Update

11. 11 Configured Attributes / Quality Extensions Manufacturing Update

12. 12 Scalable and flexible structure to identify variable characteristics -Resolves limited user-defined fields -Reduces customizations Risk / investment Integrated Supports regulatory compliance -Supplier certification (qualification) -Certificate of analysis Consistent standard Reduces effort and time for track / trace inquiries -Recall / audits / returns / complaints Configured Attributes/ Quality Extensions Manufacturing Update

13. 13 Flexible item attribute designation -Descriptive -Product specifications (ranges, test requirements) Regulatory compliance -Item/supplier certification (control) Establish / retain quality attributes -Transaction enabled (manage inventory) Capture test results within tolerances Multiple tests / multiple samples -Certificates of analysis Product traceability workbench -Backward/forward Configured Attributes / Quality Extensions Manufacturing Update

14. 14 Planning / Scheduling Workbenches Manufacturing Update

15. 15 Please Plan to Attend This Session - QAD’s Planning and Scheduling Workbenches Carianne Nieuwstraten – Product Manager, QAD Ben Crawford – Production and Inventory Control Manager, Superior Essex Thursday, 10 May, 2012 9:45 AM to 10:45 AM Planning/Scheduling Workbenches Manufacturing Update

16. 16 Co/by-product support Product structure filter (visibility) EAM integration Planning / Scheduling Workbenches Manufacturing Update

17. 17 Business Intelligence Manufacturing Update

18. 18 Connects people to data Analyzes data and disseminates measurement information -Provides visibility to historical trends resulting in operational insight -Supports better, faster business decision- making Cut costs Identify opportunities Business Intelligence Manufacturing Update

19. 19 Overall equipment effectiveness (OEE) -Availability -Performance -Quality Business Intelligence (BI) Manufacturing Update

20. 20 Business Process Management Manufacturing Update

21. 21 Business processes should be viewed as strategic assets -Series of value-add activities -Relevant roles (responsibilities) Integrates an organizational “change capability” -Accuracy -Timeliness Business Process Management (BPM) Manufacturing Update

22. 22 Business Process Management (BPM) Manufacturing Update Introducing “Item Master Create” Workflow

23. 23 Summary Manufacturing Update

24. 24 2012 Roadmap Summary Manufacturing Update 2012 RoadmapAutoC P Food and Bev High TechIndustrial Life Sci LA / Internationalization HHHHHH Serialization HHHHHH Configured Attributes HHHHHH Quality Extensions HHHHHH Planning/Scheduling Workbenches HHHHHH Business Intelligence (BI) HHHHHH BPM HHHHHH

25. 25 Manufacturing Update – Product Direction Future Plans and Direction

26. 26 User Experience (UX) -Mobility -Portability -Flexibility -Productivity -Simplicity Future Plans and Direction Manufacturing Update

27. 27 Mixed mode manufacturing -Single solution redesign -Consolidated/streamlined processes Planning/scheduling -GRC (lean MRP) -Level loading, constraint-based master scheduler -Operation-level precision -“Electronic load board” Graphical user interface -Finite production scheduler Future Plans and Direction Manufacturing Update

28. 28 Lean functional extensions -Closed loop (integration) -Improved cumulative order support Subcontract suppliers -Material ownership / accountability -Move loop modeling Process industry extensions -Batch balancing (potency) -Dual unit of measure Future Plans and Direction Manufacturing Update

29. 29 Business Intelligence -Expand existing metrics -On time performance Future Plans and Direction Manufacturing Update

30. 30 Attend these related sessions : - Compliance for Life Sciences Companies Riya Cao – Director Life Sciences, QAD Guido VanDenBroeck – Sr. Product Manager, QAD Rick Siebert – Vice President, Sharp Wednesday, 9 May, 2012 When: 4:15 PM to 5:15 PM - QAD’s Planning and Scheduling Workbenches Carianne Nieuwstraten – Product Manager, QAD Ben Crawford – Production and Inventory Control Manager, Superior Essex Thursday, 10 May, 2012 9:45 AM to 10:45 AM Next Steps at Explore Manufacturing Update

31. 31 Attend QAD Demonstration Theatre : - Serialization – Demo Session Guido Van den Broeck – Sr. Product Manager, QAD Wednesday, 9 May, 2012 When: 8:00AM to 8:30AM - BI – Manufacturing Metrics Robert Oliver Wednesday, 9 May, 2012 When: 2:45PM to 3:30PM Next Steps at Explore Manufacturing Update

32. 32 Stop by the Solutions Exposition Center - Demonstrations : Serialization Configured attributes / quality extensions Planning and scheduling workbenches (MSW/PSW) Business Intelligence (BI) Next Steps at Explore Manufacturing Update

33. 33 Joseph A. Phelan jpq@qad.com Questions and Answers Manufacturing Update

34. 34 www.qad.com © QAD Inc 2012