1. | Building the Effective Enterprise Realizing Operational Benefits With QAD Planning And Scheduling Workbenches Carianne Nieuwstraten – Sr. Product Manager, QAD. Inc Eric Wolfrom – ERP Consultant, Freudenberg-NOK Sealing Technologies

2. | Building the Effective Enterprise 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 Realizing Operational Benefits with QAD Planning/Scheduling WBs

3. | Building the Effective Enterprise 3 ■The Effective Enterprise ■Solution overview ■Freudenberg-NOK Sealing Technologies implementation review ■Roadmap ■Vision ■Summary ■Q&A Presentation Agenda Realizing Operational Benefits with QAD Planning/Scheduling WBs

4. | Building the Effective Enterprise 4 “An Effective Enterprise is one where every business process is working at peak efficiency and perfectly aligned to the company’s strategic goals. ” The Effective Enterprise Realizing Operational Benefits with QAD Planning/Scheduling WBs

5. | Building the Effective Enterprise 5 ■COGS is typically 50-80% of revenue ■Production and material planners have direct impact on COGS spending Operational Opportunities Realizing Operational Benefits with QAD Planning/Scheduling WBs Increase Internal Synchronization Un-synchronized Costs Eliminate 2-15% un-synchronized costs Eliminate 2-15% un-synchronized costs

6. | Building the Effective Enterprise 6 Why Are We Not Synchronized Today? Realizing Operational Benefits with QAD Planning/Scheduling WBs Capability SchedulerProduction Materials Buyer/Expeditor Tuesday 9am: Updates today’s production schedule to accommodate rush order Demand/Inventory Reports Production Schedule (version C) GOAL Method Production Schedule (version B) Production Schedule (version A.1) MRP Manual Adjustments PO/ Supplier Schedules

7. | Building the Effective Enterprise 7 Synchronizing Your Internal Supply Chain ProductionSchedulerMaterials Expeditor /Buyer Planning & Scheduling WBs Shortage Monitor / Purchase Direct Manage Materials by Resource Release Production by Resource Realizing Operational Benefits with QAD Planning/Scheduling WBs

8. | Building the Effective Enterprise 8 ■QAD’s Planning and Scheduling Workbenches assist the Effective Enterprise by:  integrating key planning and scheduling functions plus information  providing quick visibility to: −Supply and demand issues −Machine capacity issues −Material shortages …leading to a higher rate of schedule achievement …improving delivery schedules …helping reduce inventory levels The Effective Enterprise Realizing Operational Benefits with QAD Planning/Scheduling WBs

9. | Building the Effective Enterprise 9 Solution Overview Realizing Operational Benefits with QAD Planning/Scheduling WBs

10. | Building the Effective Enterprise 10 ■Need multi-resource visibility to:  supply and demand imbalances Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

11. | Building the Effective Enterprise 11 ■Need multi-resource visibility to:  capacity constraints Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

12. | Building the Effective Enterprise 12 ■Need multi-resource visibility to:  material constraints Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

13. | Building the Effective Enterprise 13 ■Need to respond to customer expedites and perform:  demand/supply imbalance visualization Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

14. | Building the Effective Enterprise 14 ■Need to respond to customer expedites and perform:  capacity simulation Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

15. | Building the Effective Enterprise 15 ■Need to respond to customer expedites and perform:  dynamic component availability check  dynamic BOM drill down for sub-assembly analysis Master Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

16. | Building the Effective Enterprise 16 ■Create executable production schedule:  Sequence production orders by key attributes Production Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

17. | Building the Effective Enterprise 17 ■Create executable production schedule:  Check material availability Production Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

18. | Building the Effective Enterprise 18 ■Establish meeting both maintenance and scheduling needs  Review planned maintenance orders Production Scheduler – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

19. | Building the Effective Enterprise 19 ■Ensure materials are available for production schedule execution  Check shortages for parts responsible for Material Planner – Day In Life Realizing Operational Benefits with QAD Planning/Scheduling WBs

20. | Building the Effective Enterprise Availability and Documentation Workbenches – general: eB2.1 SP4 and up, add-on 2010.1EE and up, core Recent enhancements Personalization architecture Dynamic forecast inclusion/exclusion Quick-Find Planned order scheduling Documentation Installation, admin, user and training guides 20 Realizing Operational Benefits with QAD Planning/Scheduling WBs

21. | Building the Effective Enterprise 21 Eric Wolfrom Freudenberg-NOK Sealing Technologies Implementation Review Realizing Operational Benefits with QAD Planning/Scheduling WBs

22. | Building the Effective Enterprise ■Freudenberg-NOK Sealing Technologies has become a leading producer of elastomeric materials and precision molded products for a multitude of industries:  aerospace  automotive  energy  food and beverage  construction  medical  recreational, industrial  chemical industries ■FNST is headquartered in Plymouth, Mich., and has 23 manufacturing, research and sales facilities throughout the United States, Canada, Mexico, Brazil and Malaysia. FNST Overview 22

23. | Building the Effective Enterprise Products: Radial Shaft Seals O-Rings Gaskets Specialty Sealing Products Vibration Control Devices Health & Medical Products Diaphragms Oil & Gas Electronics Lubricants Specialty Textiles Household Products Accumulators Brake Components FNST Overview Realizing Operational Benefits with QAD Planning/Scheduling WBs

24. | Building the Effective Enterprise FNST Production Flow Oven Press, Op10, Sleeve Form Press, Op10, Sleeve Form Cut Shipping, Op 90 Packaging 24 Slice, Ring Form Slice, Ring Form Realizing Operational Benefits with QAD Planning/Scheduling WBs

25. | Building the Effective Enterprise  No capacity visibility  Supply chain had limited forward planning visibility for material replenishment  Pertinent information for decision making held in multiple silos  Missing dynamic visibility to demand changes  WIP inventory of components and finished goods required “walking the floor” Planning and Scheduling Pain Points 25 Realizing Operational Benefits with QAD Planning/Scheduling WBs

26. | Building the Effective Enterprise 26 Realizing Operational Benefits with QAD Planning/Scheduling WBs

27. | Building the Effective Enterprise ■After QAD Planning and Scheduling Workbenches implementation:  All pain points successfully addressed  ROI (tangible and intangible) −Improved customer service −Improved component material purchasing and forecasting −Increased scheduler confidence −Greatly improved capacity visibility −Machines grouped by capabilities Benefits 27 Realizing Operational Benefits with QAD Planning/Scheduling WBs

28. | Building the Effective Enterprise 28 ■Technical aspects  2010 SE  Workbenches installed in test environment − 170 total programs (.p’s) involved .Net UI client (from version 2.9.1to 2.9.4)  Conference room pilots  Moved to production and activated for each site when appropriate in Site Maintenance (1.1.13) Implementation To Date Realizing Operational Benefits with QAD Planning/Scheduling WBs

29. | Building the Effective Enterprise 29 ■Business Aspects  Demos with divisional executives  Demos with recommended facilities −Tillsonburg, ONT −Santa Ana, CA  Engaged QAD Services for Tillsonburg implementation −Training event, 9/12  MRP data audit and correction – IMPORTANT −Workshop 1, 10/12 – pilot workbenches test environment −Workshop 2, 10/12 – GO LIVE  FNST ERP consultants conducted Santa Ana events −Start 11/12, GO LIVE, 12/12 Implementation To Date - Continued Realizing Operational Benefits with QAD Planning/Scheduling WBs

30. | Building the Effective Enterprise ■Both facilities adding more items and production lines on a regular basis ■Next plants  Findlay, OH  Cleveland, GA ■Six additional sites have also volunteered ■Target implementation release version 3.2.2.1 Moving Forward 30 Realizing Operational Benefits with QAD Planning/Scheduling WBs

31. | Building the Effective Enterprise ■Thoroughly test workbench program changes ■MRP data integrity is paramount ■Training and workshops worked out well ■Workbench items Purchase/Manufacture value ■Larger LCD screens for schedulers 31 Realizing Operational Benefits with QAD Planning/Scheduling WBs Lessons Learned

32. | Building the Effective Enterprise ■Understand MRP data cleanup effort ■Start with small data set (items/PLs) ■Auto firm planned orders (yes/no) ■Executive support ■Culture change for scheduling, using factual parameters instead of tribal knowledge 32 Realizing Operational Benefits with QAD Planning/Scheduling WBs Implementation Considerations

33. | Building the Effective Enterprise 33 Roadmap Realizing Operational Benefits with QAD Planning/Scheduling WBs

34. | Building the Effective Enterprise Recent and Planned Maintenance Releases 2013 FebMarAprMayJunJulAugSepOctNovDecJanFebMarApr 2014 MayJun EE Release 34 Realizing Operational Benefits with QAD Planning/Scheduling WBs EE Release EE Release SE Release SE Release SE Release EE Release EE Release SE Release SE Release

35. 35 Master Scheduler Home Page Example Messages (Alerts) CM - MMMM OTIF xx MPS OTIF xx Supplier OTIF xx Supply Plan Perf xx Demo Cap xx Forecast Acc’y xx OEE xx MFG - MMMM PUR - MMMM QLM - MMMM ENG - MMMM Calendar Prod Mtg at 10:00 AM To Do List Run Production Report Run SOP Production Summary Review Forecast Metrics (Scorecard) Menus Favorites Refresh

36. | Building the Effective Enterprise 36 Vision Realizing Operational Benefits with QAD Planning/Scheduling WBs

37. | Building the Effective Enterprise Vision Master Schedule Material Plan Load-Leveling Constraint- Based Master Scheduler Master Scheduling Workbench Material Requirements Planning Production Scheduling Workbench Finite Capacity Production Scheduler 37 Realizing Operational Benefits with QAD Planning/Scheduling WBs

38. | Building the Effective Enterprise 38 Summary Realizing Operational Benefits with QAD Planning/Scheduling WBs

39. | Building the Effective Enterprise 39 ■COGS is typically 50-80% of revenue ■Production and material planners have direct impact on COGS spending Operational Opportunities Realizing Operational Benefits with QAD Planning/Scheduling WBs Increase Internal Synchronization Un-synchronized Costs Eliminate 2-15% un-synchronized costs Eliminate 2-15% un-synchronized costs

40. | Building the Effective Enterprise Realizing Operational Benefits with the Planning & Scheduling Workbenches Key benefits or features ■Integrated planning and scheduling tool set ■Simulate changes in real-time ■Reduce planning and scheduling time and complexity ■Compress manufacturing response ■Provide ability to create effective plans and schedules ■Enable to be proactive 40

41. | Building the Effective Enterprise 41 ■Review available documentation  QAD web site: planning and scheduling workbenches ■Work with QAD services/partner to line up training ■Work with QAD/partner account rep to schedule demo Next Steps After Explore Realizing Operational Benefits with QAD Planning/Scheduling WBs

42. | Building the Effective Enterprise 42 ■Carianne Niewstraten Sr. Product Manager, QAD. Inc czn@qad.com ■Eric Wolfrom ERP/IT Business Consultant, Freudenberg- NOK Sealing Technologies eric.wolfrom@fnst.com Questions & Answers Realizing Operational Benefits with QAD Planning/Scheduling WBs

43. | Building the Effective Enterprise www.qad.com ©QAD Inc. 2013 43