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Industrial and High Tech Vertical Update Glenn Graney – QAD Director Industrial and High Tech Tuesday – May 7
Industrial and High Tech Vertical UpdateGlenn Graney – QAD Director Industrial and High TechTuesday – May 7
Personnel CheckIndustrial and High Tech Vertical Update
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Glenn GraneyQAD - Director Industrial
and High Tech
Safe HarborIndustrial and High Tech Vertical Update
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This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties. Actual results and events may differ materially from those set forth in these forward-looking statements. These risks and uncertainties are detailed in QAD’s SEC filings, including its latest Annual Report on Form 10-K and in particular the section titled “Risk Factors” therein and other periodic reports subsequently filed by QAD with the Securities and Exchange Commission.
This presentation contains references to certain 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 accountingprinciples generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. 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 results. 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.
This presentation 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.
High Diversity of Industrial & High Tech ManufacturingIndustrial and High Tech Vertical Update
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Single material
Joining of similar
materials
Combination of dissimilar
materials
Subassembly of like
materials
Assembly of dissimilar
components
Simplest BOM High volume RAW material
issues
Simple BOM Complex process RAW material
issues
Medium BOM Varied suppliers Offering diversity
Multi-layer BOM Varied suppliers Complex routing
and testing
Complex BOM Varied suppliers Customization
Prioritizing the Overwhelming TechnologyIndustrial and High Tech Vertical Update
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“No one can predict the future, but what is certain is there will be continual change, lots of it and at an unprecedented pace.”
Tony J Winter, CTO
Digital Twin
DataLake
Augmented Reality
MachineLearning
Analytics BusinessProcess
Mgmt
IIoTEdge
Computing
AdditiveMfgRobots
No CodeLow Code
RoboticProcess
Automation(RPA)
Security
Blockchain
Cloud
Technology for Technology’s Sake Will DisappointIndustrial and High Tech Vertical Update
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ImprovedYield
Optimal Inventory &Managed
Costs
IntegrateSimpleDeviceData
Manufacturing
Benefit
Service Levels &Response
Improve Quality via
RootCause
ProductTraceability
Customer
Benefit
Disruptive Market ForcesIndustrial and High Tech Vertical Update
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MAKE TO ORDER AT SCALE
DIGITAL TRANSFORMATIONOF MANUFACTURING
ANYTHING AS A SERVICE (XAAS)
Anything as a Service (XaaS)Industrial and High Tech Vertical Update
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Business model where outcomes are sold instead of products, resulting in a shift in
what manufacturers offer.
Anything as a Service (XaaS)Industrial and High Tech Vertical Update
• Contributing elements- Customer expectations- Shifting supply chain roles- Non-traditional players (think Uber)
• Change in requirements- Smart products and a connectivity strategy- Enhanced FULL product life cycle traceability- Process changes from design through billing
• Supporting technology- On-product and system Machine Learning / IoT- Digital Twin
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Not buying a wrench but buying a
tightening and loosening experience
Make to Order at ScaleIndustrial and High Tech Vertical Update
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End users’ expectation that products and services will be
personalized to meet their unique needs and
requirements.
Make to Order at ScaleIndustrial and High Tech Vertical Update
• Contributing elements- Amazon commercial mentality- Differentiation based on customer-specific variation
• Change in requirements- Fluid planning and operational data structures- Rapid design / response to product evolution
• Supporting technology- Data Lakes and advanced integration- Flexible processes including 3D Printing
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Buying a wrench like no other -
#SKU_4_only_me
Digital Transformation of ManufacturingIndustrial and High Tech Vertical Update
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Acquisition of enterprise wide and value chain data for the
purpose of measuring and optimizing company processes
to deliver greater company performance in a rapidly
changing business environment.
Digital Transformation of ManufacturingIndustrial and High Tech Vertical Update
• Contributing elements- Competitive pressures - Margin / profitability requirements- Resource constraints: labor, cash and sustainability
• Change in requirements- Comprehensive data gathering- Business planning and operation integration
• Supporting technology- Machine learning / next generation data analytics- Data Lake and innovative data access- Process and physical automation
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The never ending turning of the digital
wrench
PERFORMANCE PLASTICS
Shared Experiences from the Digital Transformation Journey
Chuck WierzbickiDirector of Information SystemsSaint-Gobain Performance Plastics
PERFORMANCE PLASTICS
A Challenge of Balance . . .Manufacturing Digital Transformation
Making progress on key programs • Prioritizing heavy investment and complexity
• Making consistent progress with strong outcomes
• Expanding development to the broadest scope possible
• Providing common, stable, robust tools
While at the same time encouraging• Innovation and constant probing
• Allow talented engineers & operations teams opportunities to explore
• Institutional “Trial and Error” -- see what works and what doesn’t
• Foster a cultural mindset of rapid adoption / pivot to alternatives15
PERFORMANCE PLASTICS
Supporting a Dual StrategyManufacturing Digital Transformation
Centrally Managed:Prioritized, planned and managed
across plant(s) usage
Locally Managed:Prioritized, planned and managed locally but enthusiastically supported centrally
Project Attributes Broad application Economy of scale Significant investment High degree of integration
Project Attributes Plant specific Process or product specific Proof of Concept in new space Low / no required integration
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PERFORMANCE PLASTICS
Application CategorizationManufacturing Digital Transformation
Centrally Managed:Prioritized, planned and managed
across plant(s) usage
Locally Managed:Prioritized, planned and managed locally but
enthusiastically supported centrally
SCADA
• QAD DynasysDSCP
• MES• QAD CSS• QAD Supplier
Portal
• CRM• Big Data• APS• QAD Configurator• WMS & RFID
• CoBots• 3D Printing• Crowd sourcing• Autonomous
vehicles
• Augmented Reality• Work instructions
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PERFORMANCE PLASTICS
Centrally Managed Programs HighlightsManufacturing Digital Transformation
• QAD Dynasys DSCP- Global S&OP and Demand processes
across 12 Plants- Capacity Planning in Process
• MES- 40 plant implementation for Labor, Material,
Production & Scrap- eDoc Delivery- In-Line Labeling- Alerting- Fully Automated OEE
• APS- Automated, TOC based, finite scheduling- Reduce changeovers through sequencing - Model constraints & perform “What If’s”
• QAD Configurator- Configurator, integrated with Open Rules- Full automation, included CAD drawings
• WMS & RFID- WMS Implemented at 32 plants- RFID Implemented at one site to track tooling
and dynamically update Shelf Life
• SCADA- Process Historian, Recipe Management
and Automation- Fully integrated with Factivity MES- Implemented at 3 plants, 2 in Process- Building Data Lake to start Machine
Learning
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PERFORMANCE PLASTICS
Locally Managed Programs HighlightsManufacturing Digital Transformation
• 3D Printing- Used in 10+ plants- Legacy mostly for rapid prototyping- Emerging spare parts and MRO
• CoBots- Several POC’s in place- Box Folding, Pin Insertion, Bag & Seal, etc
• Work Instructions- Cloud based Work Instruction Delivery- Build Rich Multi-Media work packages- Assemble packages into WI- Significantly ease WI management- Track usage and get feedback
• Augmented Reality- Two POC’s, one ongoing- Step By Step Instructions- Remote assistance- Training
• Crowd Sourcing- Launch Ideation Campaigns- Community offer ideas and collaborates- Social ranking of ideas to feed stage gate
process• Autonomous vehicles
- Several POC’s running- Moving components through an assembly Op
in Clean Room
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PERFORMANCE PLASTICS
A Sampling of Learning So Far Manufacturing Digital Transformation
Fundamentals still matter, in fact they matter a lot more…• Robust business processes, accurate data, discipline and rigor
Sometimes things don’t work as expected - Augmented Reality• Wearable devices in Clean Room seemed like a great idea except . . .
Its NOT always about the technology• SCADA integrators knowledge of machines and processes is way more important than their
knowledge of the software (i.e. Ignition)Encourage the talent in the plants that want to participate
• Meet frequently face to face to discuss POCs, priorities and progress• Create inclusive “Smart Factory” coalitions (engineers, IT business, etc.) that promote
connection and collaboration vs. rogue projects
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Adaptive ERP is Rapid, Agile and EffectiveIndustrial and High Tech Vertical Update
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RAPID
AGILE
EFFECTIVE
• Moving at the pace change• Exceeding customer service level expectations• Speed as a competitive advantage
• Proactive ability to change and respond• Incorporation of new processes and business units• Alignment with each specific customer requirement
• Unwavering delivery of operational metrics• Adoption of technology aligned with business results• Growth based on deeper information and analytics
Questions and AnswersIndustrial and High Tech Vertical Update
• Glenn Graney• [email protected]
• Chuck [email protected]
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Highlighted SessionsIndustrial and High Tech Vertical Update
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ERP Moves to Real Time via Production
Execution
Glenn Graney, QADTuesday, 4:15 PM - 5:15 PMWaterbury Ballroom
Customer Case Study: QAD EE Deployment to
Caterpillar Foundry
Henry Laprun, James Shaw, Tony NicholsonCaterpillar Wednesday, 11:00 AM - 12:00 PMRhythms 2/3
How to Accelerate the Digital Transformation
Using QAD Manufacturing
Guido VanDenBroeck and Brent Shooltz, QADWednesday, 11:00 AM - 12:00 PMWaterbury Ballroom
Highlighted SessionsIndustrial and High Tech Vertical Update
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EQMS Case Study: Transformation from
Manual to EQMS
Kim Dusch, QAD CEBOSMichael Winters, PPG AerospaceWednesday, 1:30 PM - 2:30 PMRhythms 2/3
QAD Product Configurator
Integration with OpenRules
Joe St. Clair, Saint-GobainThursday, 9:45 AM – 10:45 AMRhythms 2/3
Utilizing QAD Easy On Boarding Tools and
Documentation
Kevin Schram, WelbiltThursday, 11:00 AM – 12:00 PMRhythms 1
