1. Manufacturing Product Strategy and Direction Bengt Johansson, CPIM Product Architect Nicole Groves, CPIM Business Analyst Manufacturing R & D

2. 2 Thank You for Being a QAD Customer! Manufacturing Product Strategy and Direction “The purpose of a company is to create a customer. To satisfy the customer is the mission and purpose of every business.” Peter Drucker

3. 3 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 Product Strategy and Direction

4. QAD Development Roadmap Cycle Manufacturing Product Strategy and Direction 4 Roadmaps Vertical Roadmap Product Roadmap Product Definition Industry Trends and Standards Vertical Standards Technical Standards Market Evolution Industry Analysts Competitive Analysis Development Groups Technology Advances QAD Customers Collaborative Development Customer “Visions “ Customer Requests Customer Advisory Groups Field & Support Feedback QAD Strategic Steering Committee QAD Product Review Committee

5. 5 This Is What You Have Said -Make Better Planning/Scheduling Decisions Workbenches -More Automation for Manufacturing Manage by Exception -Extending/Connecting the Enterprise Integration / Interoperability -Better Access to Manufacturing Information Leveraging Mobile Devices -“Next Level” of Manufacturing (Process and Discrete) Building to an Effective Enterprise Manufacturing Product Strategy and Direction

6. 6 Master Scheduling Workbench ( MSW ) -Aligns Demand and Supply throughout the Planning Horizon Highlights Supply Shortages Calculates Projected Inventory -Calculates and Monitors Workload Capacity Highlights Overloads -Provides Access to Processes and Information to Put Decisions into Action Shows Immediate Effects Making Better Planning / Scheduling Decisions Manufacturing Product Strategy and Direction

7. 7 Production Scheduling Workbench ( PSW ) -Aligns Demand and Supply throughout the Scheduling Horizon Highlights Supply Shortages Calculates Projected Inventory -Calculates and Monitors Workload Capacity Highlights Overloads - Component Availability Check ( CAC ) Checks Material Availability before Committing to Production -Provides Access to Processes and Information to Put Decisions into Action Sequencing (Drag and Drop) Shows Immediate Effects Making Better Planning / Scheduling Decisions Manufacturing Product Strategy and Direction

8. 8 Increase Your Manufacturing Efficiency with QAD’s Planning and Scheduling Workbenches Tuesday 8:30 Mediterranean Room Gary Wasserman – QAD Inc Learn More! Planning and Scheduling Workbenches

9. 9 Load-Leveling, Constraint-Based Master Scheduler -Order Smoothing -EPEI -Finite Capacity Builds Master Schedule Automatically -Reduces Manual Effort and Time More Manufacturing Automation Manufacturing Product Strategy and Direction

10. 10 4 Steps Demand/Supply Balancing Production Line Allocation Order Smoothing Line Leveling Batch or “on demand” MSW By Item and Production Line Leveling Sensitive To Type Of Demand Being Satisfied Sensitive To Order Priority Re-level and/or view with MSW Master Scheduling Manufacturing Product Strategy and Direction

11. 11 Master Scheduling - Planning Manufacturing Product Strategy and Direction Demand SO, DO, Forecast Demand SO, DO, Forecast MPS Review Plan MSW Review Plan MSW MRP Review MSW Release PSW Review MSW Release PSW Finite Leveling Engine

12. 12 Periodic Costing -Compliance Issue with (local) Legal Tax Requirements in Many Countries -Compliance Issue with the IFRS -FiFo, LiFo, Weighted Average Valuation PO Re-Pricing -Retroactive Pricing More Manufacturing Automation Manufacturing Product Strategy and Direction

13. 13 Serialization -Improve Supply Chain Efficiency (Operations) Trading Partner Regulations -Brand/Product Protection and Safety Counterfeit Products Tracking / Tracing -Compliance Issues Extending / Connecting the Enterprise Manufacturing Product Strategy and Direction

14. Define different packaging types Define packaging structures Assign default packaging structures per item per origin/destination Packaging Master Data Serialization Features 14

15. Serialized Inventory Management Serialization Features 15 Serial Master & History Data independent from lot inventory Serialized Packaging Hierarchies Serialization fully integrated with inventory transactions Support of specific packaging transactions

16. 16 Connectivity / Services -Fully Integrated Inventory Transaction APIs -Label / Bar Code Printing Extending / Connecting the Enterprise Manufacturing Product Strategy and Direction Supplier Receiving Inventory Production Shipping Customer Packaging

17. RF UI / Barcode Data Collection Serialization Features 17 API ready for 3 rd party products. -Eagle, -Factivity -Freedom -Radley Warehousing RFUI expanded Programmatic (Progress) QDOCs (QXtend)

18. Label Printing Serialization Features 18 Label formats by Item, Site, Pack, partner Printer Definitions Data to Format Mapping Print server interface (e.g. Loftware) Printing from key transactions Label Reprint

19. 19 Business Intelligence -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 Better Manufacturing Information Access Manufacturing Product Strategy and Direction

20. 20 Available now Purchasing Inventory March 2012 Manufacturing Business Intelligence Effective Enterprise - Manufacturing

21. 21 Business Intelligence - Dashboard Effective Enterprise - Manufacturing

22. 22 Process Industry Projects Configured Attributes Quality Extensions Potency and Concentration -For Early Adopters Manufacturing to the Next Level Manufacturing Product Strategy and Direction

23. Challenges: - Disparate and variable I tem characteristics - Ever changing regulations - Capture Item/Lot Information at transaction processing QAD Solution -Flexible definition descriptive attributes -Enable attributes by function -Fully Integrated to Core Operation Configurable Attributes Effective Enterprise - Manufacturing 23

24. 24 Configurable Attributes Effective Enterprise - Manufacturing Inventory Management Lot Master with Attributes Inventory with Attributes Certification with Attributes Item Profile Attribute Specifications Business Order Attribute Specifications Transaction History with Attributes Purchasing Production Sales and Fulfillment

25. Color Diameter Fiber Content Transportation Requirement Ethanol% Kosher Hazardous Class UL Listing ppm granulars CE Certification Process Temperature Royalty Cost Clarity Trans Fat Content Rating Best Before Date Organic Origin RoHS Compliancy pH Nutritional Content Purity% 25 Configurable Attributes Effective Enterprise - Manufacturing Inventory Management Lot Master with Attributes Inventory with Attributes Certification with Attributes Item Profile Attribute Specifications Business Order Attribute Specifications Transaction History with Attributes Purchasing Production Sales and Fulfillment Define Item Attributes Default value Specifications and tolerances Validations Supplier Item, Customer Item

26. 26 Configurable Attributes Effective Enterprise - Manufacturing Inventory Management Lot Master with Attributes Inventory with Attributes Certification with Attributes Item Profile Attribute Specifications Business Order Attribute Specifications Transaction History with Attributes Purchasing Production Sales and Fulfillment Optionally specify business order specifications Override specification Validated with inventory transactions

27. 27 Configurable Attributes Effective Enterprise - Manufacturing Inventory Management Lot Master with Attributes Inventory with Attributes Certification with Attributes Item Profile Attribute Specifications Business Order Attribute Specifications Transaction History with Attributes Purchasing Production Sales and Fulfillment Business transactions Quality Orders Capture values Validate specifications Keep history

28. 28 Configurable Attributes Effective Enterprise - Manufacturing Inventory Management Lot Master with Attributes Inventory with Attributes Certification with Attributes Item Profile Attribute Specifications Business Order Attribute Specifications Transaction History with Attributes Purchasing Production Sales and Fulfillment Material Certifications Item attributes Lot attributes Printable document

29. 29 Quality Extensions -Establish Improvements in Quality Management Through Inspection Result Processing Document Quality Test Results -Associated with Attribute Values -Multiple test results Consistent Product Specifications Quality Criteria and Supplier Certification Supplier Performance -Product Traceability Backward / Forward Extending / Connecting the Enterprise Manufacturing Product Strategy and Direction

30. 30 Quality Extensions Effective Enterprise - Manufacturing Inventory Management Quality Management Item and Test Cross Reference Tests with Attributes and Specifications Purchasing Production Test Sample Unit Results Test Sample Results Test Results Quality Order Results

31. 31 Quality Extensions Effective Enterprise - Manufacturing Inventory Management Quality Management Item and Test Cross Reference Tests with Attributes and Specifications Purchasing Production Test Sample Unit Results Test Sample Results Test Results Quality Order Results Define tests with attribute specifications Target value Specifications Tolerances Capture results at Test Test sample Test sample unit Apply to Certification Records

32. 32 Quality Extensions Effective Enterprise - Manufacturing Inventory Management Quality Management Item and Test Cross Reference Tests with Attributes and Specifications Purchasing Production Test Sample Unit Results Test Sample Results Test Results Quality Order Results Define Item Testing Assemble test sequences Pass/Fail Observation

33. 33 Quality Extensions Effective Enterprise - Manufacturing Inventory Management Quality Management Item and Test Cross Reference Tests with Attributes and Specifications Purchasing Production Test Sample Unit Results Test Sample Results Test Results Quality Order Results Quality Orders Results with every detail Linked to original document Inventory Lot Certification APIs for data collection

34. 34 Lot Trace – Backward (Supplier Data) Effective Enterprise - Manufacturing

35. 35 Lot Trace – Forward (Customer Data) Effective Enterprise - Manufacturing

36. 36 Mixed Mode Manufacturing Environments -Single Solution Design -Integrated Features -Consolidated Business Processes Consistent UI Manufacturing to the Next Level Manufacturing Product Strategy and Direction

37. 37 Hybrid Mode -Batch/Process Mixed Mode -Work Orders -Repetitive -Flow Lean/Kanban Mixed Factory Environments Manufacturing Product Strategy and Direction One Factory One System Hybrid Mode Mixed Mode

38. Production Orders – The Next Level Freeze BOM / Routing Scrap Backflush Receive FG Close Order Production Accounting Allocate Material Print Picklist Issue Material Transfer Material Release Order Component Availability Check Planning Scheduling Produce Print Shop Papers Report Labor Subcontract Processing Batch Balancing Manufacturing Product Strategy and Direction

39. 39 MRP/Gross Requirements Calculation -Material Planning for Lean Production Environments (Pull Systems) Provide forecasts to suppliers for mid/long term Capacity planning for kanban production -Component Demand Average Demand Calculation Kanban Sizing and Kanban Workbenches -Process -Loop Mid and Long Term Material plans for suppliers and subcontractors Manufacturing to the Next Level Manufacturing Product Strategy and Direction

40. Plans order release date for gross requirement MRP /Gross Requirements Calculation Manufacturing Product Strategy and Direction 40

41. 41 Kanban Sizing Workbenches Lean – Continual Improvement Manufacturing Product Strategy and Direction

42. 42 Lean Transactions -Cumulative Orders -Accountability -Improved Integration (Closed Loop) Move Loop Modeling -Model flow of material from Supermarkets to a customer, subcontractor, warehouse or process. Dispatching -Calculate Dock Dates -Create Supplier Shipping Schedules -Dispatch to subcontractors Manufacturing to the Next Level Manufacturing Product Strategy and Direction

43. Subcontract and Supply – The Next Level 43 Promote the efficient and uninterrupted flow of materials to subcontractors Provide schedules to subcontractors to manage limited warehouse space Support high volume of shipments and materials to multiple subcontractors Provide financial accounting for materials Manufacturing Product Strategy and Direction

44. 44 Subcontract Supply Subsystem -Manage Subcontract Supply based on subcontract schedules -Automatic creation of supply orders based on BOM Supplied WIP Items Raw Materials -Plan Components for Outbound Shipment Pick / Ship (Sub-Location) Ownership Accountability Subcontractor Sends Kanbans -Drop Ships Manufacturing to the Next Level Manufacturing Product Strategy and Direction

45. 45 Building to an Effective Enterprise : Summary Manufacturing Product Strategy and Direction EnhancementAutomotive Consumer Products Food and Beverage High Technology Industrial Manufacturing Life Sciences Periodic Costing HHHHHH Information Requirements HHHHHH Business Intelligence HHHHHH MSW/PSW HHHHHH Kanban Workbenches HHLHHH/L Extended Attributes HHHHHH Serialization HHHHHH Quality Extensions HHHHHH Connectivity / Services HHHHHH Constraint-Based MS HHHHHH Lean Material Planning / Extensions HHLHHH/L Subcontract Manufacturing HHM/LHH Retro-Pricing HMMMHL

46. Questions Manufacturing Product Strategy and Direction www.qad.com

47. Bengt Johansson, CPIM bjj@qad.com Nicole Groves, CPIM ncg@qad.com © QAD Inc For More Information, Please Contact Manufacturing Product Strategy and Direction 47