Best Practices That Enable the Effective Enterprise
advertisement
QAD Explore 2012 Best Practices That Enable the Effective Enterprise Hank Canitz Sr. Director Manufacturing Industries, QAD Best Practices That Enable the Effective Enterprise Safe Harbor Statement 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. 2 Best Practices That Enable the Effective Enterprise Agenda • • • • • Manufacturing mega-trends The effective enterprise High potential best practices Key take-a-ways Next steps 3 Best Practices That Enable the Effective Enterprise Manufacturing Mega-Trends 4 Best Practices That Enable the Effective Enterprise What Are Mega-Trends • Long-term, far-reaching transformational processes - Can be predicted with fairly high probability at least 10 years into the future - Have a broad impact • Extends to most regions of the world and many companies - Bring about radical, multidimensional political, social, and economic revolution 5 Best Practices That Enable the Effective Enterprise Decreasing Dependence on Fossil Fuels • The challenge - Global demand increasing while availability is decreasing - Over next 25 years energy consumption will increase by 60% with majority of growth in developing countries • The impact - Strong up & down-steam partnerships will be key - Integrated, efficient, & flexible supply chain delivers a competitive advantage - Efficient & effective production is fundamental 6 Best Practices That Enable the Effective Enterprise The Emergence of Mass Customization • The challenge - In a recent study more than 35% of consumers are interested in purchasing build-to-order products - A polarized economy will develop Commoditized Products High Value Offerings • The impact - To meet CTO requirements manufacturers must adopt: • • • • SC technologies that enable more efficient production Customer-facing technologies, like order configurators More effective management of engineering changes More accurate new product demand projections 7 Best Practices That Enable the Effective Enterprise Knowledge Society • The challenge - Knowledge/data is king - Information has become a mass product and is universally available - Information communication technology (ICT) has unleashed a huge flood of data and information • The impact - Global data management to match customer global data access - Develop global strategies to enable workers with relevant and actionable data - Business intelligence systems, intuitive user interfaces, and management by exception 8 Best Practices That Enable the Effective Enterprise Knowledge Society The Importance of production factors Digital universe set to grow by a factor of 40 by 2020 9 Best Practices That Enable the Effective Enterprise The Effective Enterprise 10 Best Practices That Enable the Effective Enterprise Our Vision – The Effective Enterprise Where every business process is working at peak efficiency and perfectly aligned with a companies strategic goals. 11 Best Practices That Enable the Effective Enterprise The Effective Enterprise • • • • • What does it really mean to you? Speak the language of the CFO Learn from others You can't manage what you don't measure Establish standards 12 Best Practices That Enable the Effective Enterprise Effective Enterprise Indicators QAD KPIs Revenue COGS Net Income Costs R&D SG&A Return on Net Assets/EVA/Value /Free Cash Flow Distribution Inventory Working Capital Net Assets Receivables Cash Fixed Assets 13 Best Practices That Enable the Effective Enterprise KPI Framework and Elements Metrics QAD Analytics Best Practices 14 Best Practices That Enable the Effective Enterprise Example KPI and Metrics Analytics Expedited Orders Inventory Turns Business Intelligence Inventory Accuracy Safety Stock Ops Metrics Stockouts Obsolete Inventory Browses & Reports 15 Best Practices That Enable the Effective Enterprise Example Best Practices & Enabling Solutions Deploy S&OP Feedback Loop Leverage Sophisticated Forecasting Automated Cycle Count QAD Solution And/or Service Improve Planning and Scheduling Manage Overall Material Costs Manage Pricing, Discounts, Rebates Monitor Supplier Performance Manage Outsourced MFG Improve Inventory Bar Coding / RF Lean Manufacturing Techniques Real Time Pick / Put Away 16 Best Practices That Enable the Effective Enterprise Best Practices 17 Best Practices That Enable the Effective Enterprise High Potential Best Practice Areas Trade Promotions Management 18 Best Practices That Enable the Effective Enterprise Best Practice - Pyramid Forecasting • A forecasting technique that enables management to review and adjust forecasts made at an aggregate level and to keep lower level forecasts in balance. (APICS) SUPPLY-SIDE HIERARCHY DEMAND-SIDE HIERARCHY 19 Best Practices That Enable the Effective Enterprise How QAD Enables – QAD Demand Mgt • • • • • • Extensive statistical algorithms Alerts for exceptions Collaborative forecasting Support for S&OP Support for planning bills Enables multi-faced pyramid forecasting 20 Best Practices That Enable the Effective Enterprise QAD Demand Management 6.1 21 Best Practices That Enable the Effective Enterprise Achievable Value • • • • • • Improved DIFOT Inventory level reductions Reduced obsolescence Distribution & transportation savings Improved plant efficiency Improvement in forecast accuracy 10-40% 12-70% 30-50% 5-30% 2-33% 5-20% 22 Best Practices That Enable the Effective Enterprise Best Practice - Preventative Maintenance • The activities, including adjustments, replacements, and basic cleanliness, that forestall machine breakdowns. (APICS) • Purpose is to ensure that production quality is maintained and that delivery schedules are met. • Also to prolong machine life and to maximize machine efficiency. 23 Best Practices That Enable the Effective Enterprise How QAD Enables – QAD EAM • Ensures a consistent maintenance work order process • Captures maintenance labor and costs • Improves maintenance labor utilization through planned preventative maintenance • Allows scheduling of preventative and predictive maintenance based on elapsed time or actual throughput • Provides for mean time between failure (MTBF) calculations and reporting • Breakdown alerts 24 Best Practices That Enable the Effective Enterprise QAD EAM 25 Best Practices That Enable the Effective Enterprise Achievable Value • Improved production scheduling efficiency • Improved overall equipment effectiveness (OEE) • Reduced maintenance related down time • Reduced percentage of reactionary repairs • Reduction in maintenance budget 26 Best Practices That Enable the Effective Enterprise Best Practice - Lead Time Reduction • Reducing the total time required to manufacture an item, exclusive of lower level purchasing lead time. (APICS) • For make-to-order (MTO) or configure-toorder (CTO), it is the length of time between the release of the order to the production process and shipment to the final customer. 27 Best Practices That Enable the Effective Enterprise How QAD Enables - QAD Configurator A powerful application designed to simplify processing of configure-to-order products - Captures engineering knowledge - Guides through the selling process - Automatically generates work orders and routings 28 Best Practices That Enable the Effective Enterprise Intuitive, Informative, Intelligent • Guided sales - Flexible questionnaire design - Powerful price calculations • Instant conversion of customer requirements into manufacturing requirements - Product configuration rules - Seamless integration 29 Best Practices That Enable the Effective Enterprise Achievable Value • Decrease costs - Reduction of: • quotation handling time • order entry time • order error rates and correction time • Increase revenue - Attraction of new customers • Ability to - Increased customer retention - Streamline quotation and order entry processes - Bridge communication gap between sales & engineering • Ability to - Provide competitive advantage by allowing customers to “have it their way” - Allows engineering to focus on design and innovation 30 Best Practices That Enable the Effective Enterprise Best Practice - Trade Promotions Mgt Sales & Marketing, Supply Chain, Finance Optimize Monitor Supply Chain Collaborate Localize Sales & Marketing, Supply Chain, Finance Execute Finance 31 Best Practices That Enable the Effective Enterprise Why is TPM Important? • Averages 20% of gross sales • TPM facts - Comprises as much as 70% of marketing budgets - Ranks as the 2nd highest cost behind CGS - $8B wasted every year in deduction management - Deduction investigation average $260 per event • Customers often tell us - Can’t tell what value they are getting - Or if one promotion was more effective than another 32 Best Practices That Enable the Effective Enterprise How QAD Enables – QAD TPM • Next generation of trade, promotions management solution from QAD - Powerful promotion planning - Efficient deduction resolution - Automated claims processing - Tight integration with financials - Robust reporting/analytical tools 33 Best Practices That Enable the Effective Enterprise QAD Integrated Solution DM Forecasts Enterprise Edition Groups Profiles Budgets Pricing Sales Orders Deductions Accruals TPM Promotions Rebates Claims BI Reporting 34 Best Practices That Enable the Effective Enterprise QAD Trade Promotions Management 35 Best Practices That Enable the Effective Enterprise Deal Profiles – Immediate Discount Discount Type: Percentage or Amount Combination Type: Combinable or Exclusive Quantity Type: The type of quantity to be used in determining quantity breaks in the price list detail (Amount or Quantity) 36 Best Practices That Enable the Effective Enterprise Achievable Value • Shortened planning cycle • Improve pricing, invoicing, and accounting accuracy • Improved ability to determine profitability of customers and products • Shortened deduction investigation and resolution time • Reduced outstanding claims and rebates • Improved ability to make better promotion spending decisions • Improved sales forecasts accuracy 37 Best Practices That Enable the Effective Enterprise Key Take-A-Ways and Next Steps 38 Best Practices That Enable the Effective Enterprise Key Take-A-Ways Financial Model QAD Solution or Service Best Practices QAD KPIs Metrics 39 Best Practices That Enable the Effective Enterprise Next Steps Schedule a Discovery/Vision Engagement Conduct Discovery Meetings Key Performance Indicators Conduct Vision Workshop Propose Alternatives Deliver Q-Scan Assessments Deliver Implementations Assess / Plan Standards 40 Best Practices That Enable the Effective Enterprise Questions & Answers Hank Canitz Sr. Director Manufacturing Industries hcc@qad.com 41 www.qad.com © QAD Inc 2012 42
