EQMS Case Study: Transformation from Manual to EQMSPPG AerospaceMichael Winters – Project Manager, PPGKim Dusch – Director, QAD CEBOS ServicesMay 8, 2019

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Safe HarborEQMS Case Study: Transformation from Manual to EQMS

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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.

IntroductionEQMS Case Study: Transformation from Manual to EQMS

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Kim DuschDirector, Professional Services

QAD CEBOS

Michael WintersProject Manager

PPG

Agenda: PPG Project JourneyEQMS Case Study: Transformation from Manual to EQMS

• Previous approach to managing quality• Proposed approach • Original plan• Project journey – Wave 1• Course correction for Wave 2• Lessons learned• Adding value to PPG• Team roles• Critical success factors

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Previous Approach to Managing QualityEQMS Case Study: Transformation from Manual to EQMS

• Manual• Paper based

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• Excel• InfoPath

Previous ApproachEQMS Case Study: Transformation from Manual to EQMS

• Sylmar and Huntsville plants- Future consideration: process differences between plants

• Pain point: finding information- Consolidation of information- Nothing in a database - Real time reporting challenges- Tribal knowledge

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Original PlanEQMS Case Study: Transformation from Manual to EQMS

• Implement CEBOS 2.4 in 2 Waves• Wave 1

- Tooling - Gauge

• Wave 2- Audits- NCR/CAPA- APQP- Inspections/SPC- Supplier Management

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Project Journey – Wave 1EQMS Case Study: Transformation from Manual to EQMS

• Where it started . . .- Tooling and Gauge Live in 2018 Q1- Encountered challenges

• Separation of data• Consolidating business practices• Customization concerns

- Turnover on project team• Core team at PPG and QAD CEBOS changed

- Delayed Wave 2 • New architecture – HTML5 coming in QAD CEBOS EQMS 2018• “Custom” requirements for Wave 2 covered in Standard Product

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Project Journey – Wave 2EQMS Case Study: Transformation from Manual to EQMS

• Course correction- Implement new release: QAD CEBOS EQMS 2018

• Decided to split into 2 phases1. Audits / CAPA / Supplier Management2. APQP / Inspection

- Implementation methodology: - prescriptive approach- Standard product instead of customizations- Defined milestones and deliverables

- Re-energized and motivated project team

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Project Journey – Wave 2EQMS Case Study: Transformation from Manual to EQMS

• Wave 2- Phase 1 implementation live in 2018 Q4- Wave 2 Reboot: Phase 1 completed in

4 months (3 apps)- Post Go-Live – scorecard enhancement

• However . . .- Not all documents for all processes defined- Adoption still in process- Hiatus in starting Phase 2 until all processes defined

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Lessons LearnedEQMS Case Study: Transformation from Manual to EQMS

• Not an IT-only project- Quality and Business stakeholders on Core Team- Quality team is integral to project success

• Quality team revising and documenting processes- Not ready to adopt after go-live- Documentation development should have been

part of project plan and scope (SOPs and Work Instructions)

• Refresher training will be needed for End Users11

Adding Value to PPGEQMS Case Study: Transformation from Manual to EQMS

• Visibility• Consistency across plants• Standardized processes• Understanding the value of

Quality in PPG• Supports Continuous Improvement• Reporting and Analytics

- Proactively addressing concerns- Prevention rather than Containment

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FinanceITOperations

Quality Mgt Engineering

MfgOperations

EQMS

Onwards to Wave 2 Phase 2EQMS Case Study: Transformation from Manual to EQMS

• What’s next?- Upgrade to QAD CEBOS 2019 EQMS- Retrain / Delta training- Implement

• APQP / PPAP• Inspections / SPC

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Team RolesEQMS Case Study: Transformation from Manual to EQMS

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Executive Sponsor

Customer QAD CEBOS

Steering Committee

Project Manager

Core Team

• Attends Steering Committee• Active sponsor of program• Authority/Escalation in QAD

• Advice and guidance• Program status reporting• Program forecasting

• Project Management• QAD Execution Management• Project reporting • QAD budget management

• Prescriptive Guidance• Education/Leadership• Support BPO’s throughout

• Chair of Steering Committee• Business sponsor of program• Final decision maker

• Business representation• Functional representation• Decision making/approval

• Internal resource alignment• Communication• Manages customer tasks• Total budget management

• Business Process Owner (BPO)• Data ownership/validation• Decision maker

Critical Success Factors for Wave 2EQMS Case Study: Transformation from Manual to EQMS

• Follow Prescriptive Approach- Leverage best practice- Utilize standard functionality as the rule- Six Month Rule: Use system for six months

before attempting change

• Strong project governance and reporting

• Constant communication is key

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Critical Success FactorsEQMS Case Study: Transformation from Manual to EQMS

• Executive champion support• Effective Change Control / Management• Project governance adherence• Use standard functionality and

embedded best practices• Tailor through Extensibility in

QAD CEBOS EQMS 2019

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Critical Success FactorsEQMS Case Study: Transformation from Manual to EQMS

• Key Stakeholder availability and readiness• On-time data gathering and preparation• Testing agenda, protocols, and scripts

from Business and Quality• Timely risk identification and management• Contingency planning

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SummaryEQMS Case Study: Transformation from Manual to EQMS

• Paper-based, dispersed information• Needed “one source of truth” for processes• Journey included lessons learned – more than once• Wave 2-Phase 1 was rapid and clean

- Unfortunately - key inputs missed• Now defining processes ready for adoption, rollout• Planning for next steps will be more detailed up front

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Next StepsEQMS Case Study: Transformation from Manual to EQMS

• Define what challenges need to be solved• Identify 2-3 measureable KPIs for the project• Ensure Quality and Ops are represented in the Core Team• Involve representatives of people who will actually be using

the system – early!

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Highlighted SessionsEQMS Case Study: Transformation from Manual to EQMS

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A Case for QualityDavid Rendel, QAD CEBOSTuesday 3:00 PM – 4:00 PMRhythms 1

The Value of APQPMichael MallenWednesday 4:15 PM – 5:15 PMRhythms 1

QAD Demo Theatre Closed Loop Quality

David RendelWednesday 3:00 PM – 4:00 PM Oak Alley

Questions and AnswersEQMS Case Study: Transformation from Manual to EQMS

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Kim Duschrkl@qad.com

+1 609.330.4237

Michael Wintersmwinters@ppg.com

+1 323.394.0235

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Thank You!EQMS Case Study: Transformation from Manual to EQMS

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