manufacturing futures bill keese, svp r&d february 11-12, 2013 west coast user group 1

Manufacturing Futures

Bill Keese, SVP R&DFebruary 11-12, 2013

West Coast User Group

1

Disclaimer• This roadmap is for information only and

represents QAD’s current view of its product direction. None of the information should be interpreted as a commitment on the part of QAD Inc.

• QAD works closely together with customers, user groups and analysts in validating and updating the product direction. The product roadmap is therefore subject to change.

2

3

“An Effective Enterprise is one where every business

process is working at peak efficiency and perfectly

aligned to the company’s strategic goals. ”

Effective Enterprise

New Manufacturing capabilities. “What’s in it for you?”

Review key MFG functions • Understand the key roles in operations• Understand the business processes

involved• Understand what we are delivering• Understand “What’s in it for” each key role

Objectives

New Manufacturing capabilities. “What's in it for you?”

4

5

Role Based access


6

Materials Management • Master Scheduler • Material Planner • Production Scheduler • Buyer (Direct Materials) • Kanban Analyst

Production Operations • Production Manager • Production Controller • Production Supervisor • Shop Floor Operator

Purchasing • Purchasing Manager • Buyer (MRO, CAPEX) • Purchasing Clerk

Affected Roles ERP users in Operations


Inventory • Warehouse Manager • Warehouse Supervisor • Material Handler

•Inbound•Internal•Outbound

Quality • Quality Assurance Mgr • Quality Engineer • Quality Technician

Cost Accounting • Cost Accounting Mgr• Cost Analyst • Cost Accountant

Manufacturing (Process) Engineering • Manufacturing Engineering • Manager Process Engineer • Value Stream Manager

Product Engineering (R&D) • Product Engineering Mgr• Product Engineer • Document Control Clerk

Tools and Assets (EAM)• Plant Engineer • Tool Manager • Tool Engineer • Tool Handler

General• Plant Manager• Operations Manager (VP Manufacturing, Supply

Chain)

Working with disconnected tools

Why are we not synchronized today?

7

Stage

Capability

Scheduler

Production

MaterialsBuyer/Expeditor

Tuesday 9am: Updates today’s production schedule to accommodate rush order

Demand/Inventory Reports

Production Schedule (version C)

System Data+Production Schedule (version B)

System Data+

Production Schedule (version A)

Production Schedule (version A.1 Modified)

MRP Supplier Schedules

Manual Adjustments

Click For Next Point

1

?

Master Scheduler’s Challenge


8

Executives

Profits are slipping and our ROI must

improve; the stockholders are not

happy!

Manufacturing

There are too many changes! Provide

fixed schedules and the correct parts and delivery will improve.

Sales

Service levels are down. I need more

inventory! Whatever it takes to keep the customer happy!

Engineering

There’s a new product introduction

scheduled for the fall! But we need

more time for design!

Finance

There’s too much cash tied up in

inventory!

• Make Supply = Demand- New orders/rescheduling as necessary and

feasible/order splitting- Balance flexibility with stability

• Ensure Smooth Flow and Sensible Sequence- Leveling and sequencing- Not automatic (respects time zones)

• Communicate Problems (and Solutions)- Silence is approval

Master and Production Scheduling Objective:

“Say YES and Mean YES”


9

• Measurements (KPI’s):- Improved Customer Service:

• On time deliveries• Reduced back orders

- Reduced Inventory Levels• Inventory turns• Reduced inventory investment

- Stable Manufacturing Schedule• Increased production efficiency• Reduced set up costs/time, esp. teardowns and resets• Reduced overtime costs

Are Objectives Being Met?


10

• Rebuilds Master Schedule- Aligns Supply and Demand

• Smoothes Demand by Type- Backward/Forward (Daily)- Average (Time Period)

• Production Leveling- EPEI- Capacity Constrained- Allocation

Constraint-Based Master Scheduling Tool


11


1 2

Auto-Level production line schedule - considering:

-Capacity Constraints

-Order Priorities

-Business Rules

MSW – Master Scheduling

Leveling Methods – “Allow me to simulate different plans to achieve an appropriate balance of on-time delivery and capacity and product mix.”

Production Scheduler’s Challenge


13

Manufacturing

Labor/Machine resources not

available for 2nd shift – what are you going

to do about this?

Sales

Drops in a new high priority order due tomorrow, which

order can be moved?

Materials

You can’t change the schedule on short notice and expect the materials to be

available.

Finance

High variances to “plan” (extra set up,

downtime, labor), you need to optimize

your production schedule


1 2

Create an executable production schedule:

- Sequence production orders by key attributes to achieve operational efficiency

- Check material availability to confirm ability to execute schedule & release

PSW – Production Scheduling

Dynamic Component Status & Drill Down – “Enables me to create a production schedule I can be highly confident in to execute – knowing the materials will be there.”


1 2

Establish schedule meeting both maintenance and scheduling needs:

- Review planned maintenance orders for responsible resources and start dialogue

PSW – Production Scheduling

EAM Integration – “Enables me to see maintenance planning around my resources - to start a dialogue - and monitor progress of when the work will be complete.”

• Assign Need Date to orders• Master Schedule by Quantity to Complete• Production Schedule by Quantity to Start• Schedule Work Orders on Production Lines• Default BOM’s and Routings by Production Line• Create schedules for work orders• Schedule Management

- Consume Oldest Orders first, or Use Consumption Window

• Kanban/Lean Scheduling using Repetitive, MSW/PSW

New Features for the Schedulers


16

• Allocate /Pick Orders prior to Release• Issue or Backflush by component• Pick and Issue or Pick and Transfer by

item • Order or Bulk Picklists• Improved Order Sheets• Use same functions to manage Work

Orders or Repetitive Schedules• Work Center and Production Line Reserve

Locations• Location Availability Check

New Features for Production Control

17


Material Planner’s Challenge


18

Manufacturing

Carry more safety stock in case of low

yields/ schedule changes. We have to meet our schedules!

Suppliers

Cannot ship when requested. Is it ok to

ship late? And please send us a

forecast for the next 3 months

Materials

No shelf space for excess materials. You need to reduce

safety stock

Finance

Inventory turn over is too low/ Inventory Investment is too

high. Need to reduce inventory

levels.

Subcontractors

What is the supply plan for sending me

materials?

Material Planner – Day In the Life


19

Material Shortages

Monitor Material

Shortages

Internal Supply Chain Synchronization

“I need to check the shortages for the parts I manage and determine what I can or need to do about the shortages.”

Material Delays – expiring inventory

Shifting demand priorities


1 2

Material Planner – Day In the LifeOrder Component Status (Shortage)Both the Scheduler and the Buyer have visibility of the material shortage and the impact to the production schedule



21

GRC - ResizeToo Many Cards In

Kanban Loop

“Continuous improvement shows I have placed too

many kanban cards in the loop. I need to revise the

number of kanban cards in the loop so that they are correct for next month.”

GRC


22



23

Subcontract Supply

Subcontractor Supplied Company Materials

“ We are ramping up a new subcontract supplier and I need to give them a

supply schedule for materials supplied by us.”


1 2

Create subcontract supply plan:

- Shows supplier what materials supplied when

- Provides Inventory Traceability

- Provides for company or supplier ownership of material

Automatic supply plan creation - “Enables me to help synchronize suppliers, track what inventory is sitting at suppliers and debit or credit expenses related to materials supplied to supplier.”

Subcontract Supply*

• New GRC order Policy for planning Kanban items

• Use Gross Requirements or MPS as source for Average Demand Calculation

• Model Subcontract Supply loops for supplying materials to subcontractors with Kanbans –

• Size Kanban loops using Workbenches or in batch mode.

New Features for the Material Planner

Manufacturing Summit – Subtle changes Big Impact

25

Production

Real-Time SynchronizationNew Manufacturing capabilities. “What’s in it for you?”

26

Scheduler

MaterialsExpeditor

/Buyer

• Visualized with in WB’s & Role Based Collections• Enabled through the CAC Component Check

Availability Engine (MRE) not (MRP)

1


Planning & Scheduling WB’s

Shortage Monitor /Purchase Direct

Manage Materials by Resource

Release Production by Resource

CAC ENGINE

http://www.istockphoto.com/stock-photo-10683614-supervisor-at-auto-workshop.php

http://www.istockphoto.com/stock-photo-15000959-warehouse-manager-and-worker.php

http://www.istockphoto.com/stock-photo-14397964-industry-warehouse.php

27

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• Constraint-based master scheduler function complements MRP calculation

”Make more effective planning decisions”


Improved automation in master scheduling activities & improved visibility of demand, supply, and capacity allows master and production schedulers to focus more on exceptions and make better informed decisions faster

In core product(No additional

cost)

28














Chain) …

Shop Floor Operator’s Challenge


29

Supervisor

We must meet to day’s schedule. You

need to be more productive.

Quality

Why are we having defects? How many

are you finding.? Show me the SPC

chart

Product Engineering

We need to implement a new revision. Use this

new spec.

Production Control

Schedule change due to material shortage. Make

these items first.

Tool Maintenance

We need access to the machine for two

hours for repairs


• Set up machines, tooling• Inspect & Monitor machines• Record Production Activity• Product Quality Control• Packaging End-of-Line• Move Materials

Day in Life Shop Floor Operator


30

Shop Floor Operator– Day In the Life


31

DailyProduction Schedule

View Production Schedule

Internal Supply Chain Synchronization

“What’s my schedule today? Do I have the

materials and tools I need? What do I set up first?”


Production Operation Activity Collection


32

• New UI’s for transactions. Work from a schedule to report activity.

• More intuitive UI flow , fewer transactions• Report Repetitive and Work Orders from

same UI• View schedules to be consumed.• Detail Allocations support component lot

backflush reporting.• Integrated Kanban/repetitive transactions

New Features for Shop Floor Operator


33

34

• Many enhancements to streamline receiving and picking processes• Ability to capture all material handling actions in real-time.

Key benefits or features• Packaging setup and ability to uniquely identify packs will reduce time in data collection• Label printing services integrated with material flow reduces costs• …

”Make users in shop floor more productive”


Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy


cost)

35














Chain) …


Material Handling

36

Receive

Put-Away / Store

Pick / Move

Make

InspectPack

Pick / Move / Ship

• Unloading• Match & Receive • Transfer / Put-Away• Picking • Packaging & Labeling• Weighing / shipment data• Loading / dispatch shipments• Cycle counting• Account for all material

handling

Day in Life Material Handler


37

38

• New/enhanced Functionality- Packaging- Serialized data management- Warehouse – serialized inventory - Label printing services- Communication and reporting- Data Collection services

• Foundations- Native API’s for all key Inventory Transactions

• Expanded QXtend coverage• Ease of integration & support for data collection

Serialization - Building Blocks


39

With serialization material / packaging handling…- streamlines receiving and picking processes- Ensures all data collection of material handling can be done in real-time

Key benefits or features- Decrease transaction time / cost of material handling- Improved Inventory Record Accuracy- Improved quality in planning & scheduling- Increase Customer Performance / Reduce customer complaints- Comply with standards trading partners

”More productive material handling”


Many enhancements to streamline material handling activities, will reduce handling time, increase inventory accuracy, increase quality while managing data with higher granularity to track & trace inventory in the supply chain

In core product(No additional cost)

40














Chain) …

• Monitor changes in BOM / engineering data

• Write/Update Test/Inspection Procedures

• Perform Test/Inspections • Document results of testing and

inspections• Root cause / Track & Trace• Recommend corrective actions

Day in Life Quality Technician


41

• New Quality module • Extend use of item attributes• Expanded to support

- Multiple tests for an item - Multiple test records for a quality order - Multiple test samples for a test record

• Automation in creation Quality Order/events

• Create Certificate of Analysis

Quality


42

43

• New features integrates and automates receiving and inspection processes• Ability to capture all inspections data in real-time• Capture Multiple Test criteria / results of test samples• Quality Documents (Items and test specifications ; test records, QO’s and CoA)• Integrated with new item Attributes

Key benefits or features- Decrease transaction time / reduce cost of tests- Improved quality Recording Accuracy- Ensuring non-conformance is detected at its origin within the same system- Improved track & trace capabilities (inventory transactions & attribute historical

data)

”Make Quality Technicians more productive”


Many enhancements to streamline inspection with material handling & shop floor activities, will ensure compliance with quality policies and ensure have non-conformance data available in real-time


cost)

44

• Provides a Flexible Capability to define descriptive attributes by Item to meet ever-changing Industry and regulatory needs.

• Provides ability to support item lot and serialization track and trace independently from each based on multiple packaging levels

• All fully integrated with order entry, receipts & shipments ensuring real-time data.

Key benefits or features• Scalable and flexible capability supports current and new Industry Requirements across different niches• Reduces Customizations and eliminates the need for 3rd Party Integrations or double entries, or Excel • Attribute specifications, capturing values b and validations by attribute during receipts, picking and

issuing

”Support for Industry Compliance”


Serialization enables support for California ePedigree ActAttributes will simplify implementation Compliance requirements leveraging real-time data for decision-making Reduce customizations


cost)

• QAD Item Attributes and Quality Control assist the Effective Enterprise by: - Supporting customer, quality, regulatory

compliance- Eliminating manual or external processes for

managing extended/unique item attributes- Allowing combining and splitting lots- Eliminating need for external quality tracking - Improving tracking and tracing

Item Attributes, Quality Control and the Effective Enterprise

45


46














Chain) …

• 3 to 5 early Adopters- Multiple Industries- Knowledge Transfer - Managed by R&D

• 3 to 15 – Limited Availability - Multiple Regions- Internationalized - Managed by Services

• General Availability- Regional

Introduction Process


47

What’s In it for You?

48

manufacturing futures bill keese, svp r&d february 11-12, 2013 west coast user group 1

Documents

new product introduction

product roadmap

product direction

supply chain slide

purchasing manager buyer

engineering theres

demand new ordersrescheduling

key roles