Increase Productivity with Production
Orders and Automation Solutions
Henry Laprun, Caterpillar
Brent Shooltz, QAD
Carianne Nieuwstraten, QAD
May 9, 2018
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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 13, 2018 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.
Disclaimer
Increase Productivity with Production Orders and Automation Solutions
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Brent Shooltz- Product Manager R&D MFG/SC
- QAD, Inc.
Carianne Nieuwstraten- Product Manager Go To Market
- QAD, Inc.
Henry Laprun- ERP Enterprise Architect, QAD Application
- Caterpillar, Inc.
Introduction
Increase Productivity with Production Orders and Automation Solutions
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Production Orders – What is it?
Demo Production Orders with Automation Solutions
Caterpillar Nuevo Laredo Case Study
Wrap Up
Questions and Answers
Agenda
Increase Productivity with Production Orders and Automation Solutions
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Connecting People, Processes, Machines
Increase Productivity with Production Orders and Automation Solutions
Automation
Solutions
EE 2016
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Efficient Planning & Scheduling
SE/EE 2010
Quality and
Compliance
EE 2015/16
Serialization &
Packaging
Lean
Processes
SE/EE 2008
Production Orders
EE 2016/18
NEW!QAD Manufacturing
Increase Productivity with Production Orders and Automation Solutions
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QAD Manufacturing – Unifying Production
Product-Process Matrix
Volume Output
Va
rie
ty/
# o
f P
rod
uc
tsHigh
Low High
Mass Customization
Continuous
Process
Batch
Job Shop
Project
Cellular
Manufacturing Repetitive
Process
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Master Scheduling
Production Scheduling
Production Preparation
Production Material Supplies
Production Activity
Reporting
Production Accounting
One Flow for All Production Modes
Increase Productivity with Production Orders and Automation Solutions
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Business Decisions: Why Still Discrete vs. Repetitive?
Increase Productivity with Production Orders and Automation Solutions
Discrete Repetitive
Production
Volumes
Personalized / customer
specificMass production
Regulatory Batch / device history
Accounting Order based Period based
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Planning and Scheduling Enhancements
Improved- Resource management
- Component availability check
- Error management
New- Product structure projected on
hand
- Every part every interval (EPEI) leveling
- Bulk order update
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Order authorization segregated
from picklist print
Picking Policies
- General / detail allocations
- Pick / move
- Keep / drop
- Issue / backflush
Bulk picklist
- Multi-order picking
Reserved locations
Backflush locations
Material Supplies to Production Enhancements
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Pick, Issue and Transfer for Production
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Stockroom Shop FloorProduction Order
10021
Production Order 10022
Production Order Picklist
PK23004
Production Order 10033
2
1
Create picklist1
Pick quantities2
Issue picked quantities to
production order3
Move production order with issued
quantities to shop floor4
Transfer picklist quantities to
shop floor5
Backflush materials from
the shop floor6
4Work Center
Location
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Increase Productivity with Production Orders and Automation Solutions
Line Replenishment
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Reserved Locations – Backflush Locations
Controlled Locations
Stockroom Production LineReserve Location
Shop Floor
Production LineBackflush Location
Work CenterBackflush Location
Work CenterReserve Location
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Product Order Activity Reporting Enhancements
Collections
- Simplify search, navigation,
and order selection
- Provide access
- Production order maintenance
- Production order routing,
production order components
- Functions for processing
transactions for production orders
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All existing capabilities remain
Simplified functionality across modes
Enhanced capabilities
Foundation for the future
Production Orders: Unified Planning and Execution
Increase Productivity with Production Orders and Automation Solutions
What is Your Degree of Synchronization?
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Production
ControlSales
Logistics
Materials
Warehouse
Shipping
Receiving
Warehouse
Quality
Today 9am: Demand change - rush order – what happens next?
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Internal SynchronizationCustomers? Suppliers?
KPI- On Time Delivery KPI- OEE KPI- On Time Delivery
Increase Productivity with Production Orders and Automation Solutions
What can we
ship now?
Best guess…
Material Plan
Fairly certain…
Schedule (ver.C)
Visual, verbal
inbound putawayVisual, verbal,
paper material
replenishment
Schedule (ver. A-xyz)
Production Preparations – Material Supplies to Production
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Production Material Replenishment
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(2) Kanban
Production
Control
MSW/PSW
Warehouse
Picklists
(3) Min/Max
(4)
(5)
(1) Line Side
Live Scanner Session display here
Material
Replenishment
Signals
Dispatch and Receipts
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Shippers
Shop Floor Dispatch
(3) Scan Pack ID
(2) Enter Production
(1) Print Pack Label
Production
Control
Live Scanner Session display here
MSW/PSW
Op 20 Op 10
Logistics
Increase Your Degree of Synchronization
Increase Productivity with Production Orders and Automation Solutions
Logistics
Today 9am: Demand change - rush order – NOT A PROBLEM
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Internal SynchronizationCustomers Suppliers
KPI- On Time Delivery KPI- OEE KPI- On Time Delivery
Inbound
Production• Synchronized plan to ship
• Eliminate paper and
manual processes
Warehouse
MaterialsProduction
Control
Logistics
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Explore 2018 May 9
Caterpillar Nuevo Laredo
Production Orders and Automation SolutionsHenry Laprun
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Agenda
Background to Caterpillar Nuevo Laredo, Mexico
Current Production Challenges
Expected Benefits Production Orders / Automation Solutions
Next Steps
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Caterpillar Nuevo Laredo, Mexico
Caterpillar Reman Division─ 3 of the Reman plants are using QAD as their
ERP
Nuevo Laredo remanufacture Engine Components ─ Turbochargers, Nozzles, Fuel Injectors, Engine
Brakes, Starters, Alternators, ECMs, Hydraulics, Filters
Nuevo Laredo is completing an 18 month technology upgrade migrating from QAD-EB2 SP6 (2004) On-Premise to QAD EE 2016 Cloud─ Go Live is imminent Caterpillar Nuevo Laredo, Mexico
Other Caterpillar Mexico facilities
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Reman Process Remanufactured Products
Fuel Injectors Turbochargers
Alternators
Starter Motors Electronic Control Modules
Variable Valve Actuators
Manage “Core” return Manage customer returns
Manage core inventory
Salvage Process Disassembly
Advanced cleaning solutions
Material restoration
High precision machining
Manage Material Inventory New and restored
Assembly Process BOM
Routing
Manage Customer Reward Program
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Manufacturing Plants x3Warehouse Building
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Nuevo Laredo Production Process Flow
Warehouse
Stockroom
DisassemblyAssembly
Finished Goods
Subcontract
Subcontract
Salvage Sequencer
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Current Production Challenge
Paper-based process with limited use of
QAD ERP eB2 system
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Targeted Production Orders/Automation Solutions Use
Backflush
Issue
Allocate
DetailIssue
Backflush
Issue
Allocate
Detail / General
Picklist
Pick / PackIssue
Picklist
Pick / Pack
Allocate
Detail / General
Transfer
Bulk Picklist
Pick / PackTransfer
No IssueNo Pick
ReleaseAS Transactions
Allocate
Detail / General
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Expected Benefits
One flow / menu for all production modes
─ Reduced set up
─ Reduced time spent on training
─ Avoidance of mix of concepts and related confusion
─ Only one set of API’s to integrate with
Real-time transactions using mobile technology
─ Using Production Orders picking / issuing and operation activity reporting related
Automation Solutions transactions
Avoid over production by working only on approved production orders
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Expected Benefits
Impact on KPIs
─ Production reporting introduced with QAD Production Orders / AS
─ Enables yield monitoring
─ Better control new parts purchases, potentially decreasing material costs
─ Standard labor and burden costs now considered for product costing
─ Better understanding of the true cost of remanufactured products
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Current Initiatives: QAD Projects at Caterpillar
Active upgrade from QAD eB2 to QAD EE Cloud projects
Reman - Nuevo Laredo, Mexico - Large facility - Go Live imminent
Engines - Peterborough, UK - Finance Consolidation - Go Live imminent
Upgrade Planning from QAD eB2 to QAD EE Cloud
Engines - Peterborough, UK - Very Large facility - 2019
Components - Italy - Medium size facility - 2019
New to QAD
Engines - Texas - Very large facility - 2019
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Thank You
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All existing capabilities for production remain
Simplified and available across modes
- Flexibility / enhanced
- Reduced implementation complexity
- Increased productivity
QAD Production Orders Value
Increase Productivity with Production Orders and Automation Solutions
Please contact your sales rep for more information
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Limited Availability customer criteria
On or moving to EE 2016 or EE 2017, Cloud or On Premise
Barcode solution QAD Automation Solutions
Scheduling tool MSW/PSW
Minimum number of add-ons, customizations, 3rd party
interfaces
Next Steps, Interested?
Increase Productivity with Production Orders and Automation Solutions
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Brent Shooltz
- +1(616)285-6617
Carianne Nieuwstraten
- +1(503)236-0025
Henry Laprun
- +44 777 345 8098
Questions and Answers
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Highlighted Sessions
QAD Demo Theater
Improving Manufacturing Operations with
Production Orders and Automation Solutions
Brent Shooltz, Guido van den Broeck, QADThursday, May 10, 9:45 AM – 10:45 AM
Theater 8
Increase Productivity with Production Orders and Automation Solutions
Post-Explore Training
Improving Manufacturing Operations with
Production Orders
Brent Shooltz, Guido van den Broeck, QADThursday, May 10, 1:00 – 5:00 pm
Friday, May 11, 8:30 am – 12:00 pm
Houston C
www.qad.com©QAD Inc. 2018
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Increase Productivity with Production Orders and Automation Solutions