Manufacturing Product Strategy and Direction Bengt Johansson , CPIM Product Architect Nicole Groves, CPIM Business Analyst Manufacturing R & D Manufacturing Product Strategy and Direction Thank You for Being a QAD Customer! “The purpose of a company is to create a customer. To satisfy the customer is the mission and purpose of every business.” Peter Drucker 2 Manufacturing Product Strategy and Direction 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. 3 Manufacturing Product Strategy and Direction QAD Development Roadmap Cycle QAD Strategic Steering Committee Roadmaps • Vertical Roadmap • Product Roadmap • Product Definition QAD Customers • Collaborative Development • Customer “Visions “ • Customer Requests • Customer Advisory Groups • Field & Support Feedback QAD Product Review Committee Industry Trends and Standards • Vertical Standards • Technical Standards Market Evolution • Industry Analysts • Competitive Analysis • Development Groups • Technology Advances 4 Manufacturing Product Strategy and Direction Building to an Effective Enterprise • This Is What You Have Said - Make Better Planning/Scheduling Decisions • Workbenches - More Automation for Manufacturing • Manage by Exception - Extending/Connecting the Enterprise • Integration / Interoperability - Better Access to Manufacturing Information • Leveraging Mobile Devices - “Next Level” of Manufacturing (Process and Discrete) 5 Manufacturing Product Strategy and Direction Making Better Planning / Scheduling Decisions • Master Scheduling Workbench (MSW) - Aligns Demand and Supply throughout the Planning Horizon • Highlights Supply Shortages • Calculates Projected Inventory - Calculates and Monitors Workload Capacity • Highlights Overloads - Provides Access to Processes and Information to Put Decisions into Action • Shows Immediate Effects 6 Manufacturing Product Strategy and Direction Making Better Planning / Scheduling Decisions • Production Scheduling Workbench (PSW) - Aligns Demand and Supply throughout the Scheduling Horizon • Highlights Supply Shortages • Calculates Projected Inventory - Calculates and Monitors Workload Capacity • Highlights Overloads - Component Availability Check (CAC) • Checks Material Availability before Committing to Production - Provides Access to Processes and Information to Put Decisions into Action • Sequencing (Drag and Drop) • Shows Immediate Effects 7 Planning and Scheduling Workbenches Learn More! Increase Your Manufacturing Efficiency with QAD’s Planning and Scheduling Workbenches Tuesday 8:30 Mediterranean Room Gary Wasserman – QAD Inc 8 Manufacturing Product Strategy and Direction More Manufacturing Automation • Load-Leveling, Constraint-Based Master Scheduler - Order Smoothing - EPEI - Finite Capacity • Builds Master Schedule Automatically - Reduces Manual Effort and Time 9 Manufacturing Product Strategy and Direction Master Scheduling 4 Steps • Demand/Supply Balancing • Production Line Allocation • Order Smoothing • Line Leveling • • • • • Batch or “on demand” MSW By Item and Production Line Leveling Sensitive To Type Of Demand Being Satisfied Sensitive To Order Priority Re-level and/or view with MSW 10 Manufacturing Product Strategy and Direction Master Scheduling - Planning Demand SO, DO, Forecast MPS Review Plan MSW MRP Finite Leveling Engine Review MSW Release PSW 11 Manufacturing Product Strategy and Direction More Manufacturing Automation • Periodic Costing - Compliance Issue with (local) Legal Tax Requirements in Many Countries - Compliance Issue with the IFRS - FiFo, LiFo, Weighted Average Valuation • PO Re-Pricing - Retroactive Pricing 12 Manufacturing Product Strategy and Direction Extending / Connecting the Enterprise • Serialization - Improve Supply Chain Efficiency (Operations) • Trading Partner Regulations - Brand/Product Protection and Safety • Counterfeit Products • Tracking / Tracing - Compliance Issues 13 Serialization Features Packaging Master Data • Define different packaging types • Define packaging structures • Assign default packaging structures per item per origin/destination 14 Serialization Features Serialized Inventory Management • Serial Master & History Data independent from lot inventory • Serialized Packaging Hierarchies • Serialization fully integrated with inventory transactions • Support of specific packaging transactions 15 Manufacturing Product Strategy and Direction Extending / Connecting the Enterprise • Connectivity / Services - Fully Integrated Inventory Transaction APIs - Label / Bar Code Printing Supplier Receiving Inventory Production Packaging Shipping Customer 16 Serialization Features RF UI / Barcode Data Collection • API ready for 3rd party products. - Eagle, Factivity Freedom Radley • Warehousing RFUI expanded • Programmatic (Progress) • QDOCs (QXtend) 17 Serialization Features Label Printing • Label formats by Item, Site, Pack, partner • Printer Definitions • Data to Format Mapping • Print server interface (e.g. Loftware) • Printing from key transactions • Label Reprint 18 Manufacturing Product Strategy and Direction Better Manufacturing Information Access • Business Intelligence - Connects People to Data - Analyzes Data and Disseminates Measurement Information • Provides Visibility to Historical Trends Resulting in Operational Insight • Supports Better, Faster Business Decision-Making - Cut Costs - Identify Opportunities 19 Effective Enterprise - Manufacturing Business Intelligence Available now • Purchasing • Inventory March 2012 • Manufacturing 20 Effective Enterprise - Manufacturing Business Intelligence - Dashboard 21 Manufacturing Product Strategy and Direction Manufacturing to the Next Level Process Industry Projects • Configured Attributes • Quality Extensions • Potency and Concentration - For Early Adopters 22 Effective Enterprise - Manufacturing Configurable Attributes • Challenges: - Disparate and variable Item characteristics - Ever changing regulations - Capture Item/Lot Information at transaction processing • QAD Solution - Flexible definition descriptive attributes - Enable attributes by function - Fully Integrated to Core Operation 23 Effective Enterprise - Manufacturing Configurable Attributes Inventory Management Purchasing Item Profile Attribute Specifications Business Order Attribute Specifications Inventory with Attributes Production Sales and Fulfillment Certification with Attributes Lot Master with Attributes Transaction History with Attributes 24 Effective Enterprise - Manufacturing Color Configurable Attributes Diameter Fiber Content Transportation Inventory Item Profile Requirement Management Attribute Ethanol% Specifications Business Order Kosher Purchasing Attribute Hazardous Class Specifications UL Listing Inventory Production Define Item Attributes ppm granulars with Attributes Default value CE Certification Sales and Lot Master Specifications and tolerances Fulfillment Process Temperature with Attributes Validations Certification Royalty Supplier Item, Customer Item Cost with Attributes Transaction History Clarity with Attributes Trans Fat Content Rating Best Before Date 25 Effective Enterprise - Manufacturing Configurable Attributes Inventory Management Purchasing Production Sales and Fulfillment Item Profile Attribute Specifications Business Order Attribute Specifications Inventory with Attributes Optionally specify business Lot Master order specifications with Attributes Override specification Certification Validated with Attributeswith inventory transactions Transaction History with Attributes 26 Effective Enterprise - Manufacturing Configurable Attributes Inventory Management Business transactions Item Profile Quality Orders CaptureAttribute values Specifications Purchasing Validate specifications Business Order Keep history Attribute Specifications Inventory with Attributes Production Sales and Fulfillment Certification with Attributes Lot Master with Attributes Transaction History with Attributes 27 Effective Enterprise - Manufacturing Configurable Attributes Inventory Management Purchasing Item Profile Attribute Specifications Business Order Attribute Specifications Material Certifications Inventory Item attributes with Attributes Production Lot attributes Printable document Lot Master Sales and Fulfillment Certification with Attributes with Attributes Transaction History with Attributes 28 Manufacturing Product Strategy and Direction Extending / Connecting the Enterprise • Quality Extensions - Establish Improvements in Quality Management Through Inspection Result Processing • Document Quality Test Results - Associated with Attribute Values - Multiple test results • Consistent Product Specifications • Quality Criteria and Supplier Certification • Supplier Performance - Product Traceability • Backward / Forward 29 Effective Enterprise - Manufacturing Quality Extensions Quality Management Inventory Management Purchasing Production Tests with Attributes and Specifications Item and Test Cross Reference Quality Order Results Test Results Test Sample Results Test Sample Unit Results 30 Effective Enterprise - Manufacturing Quality Extensions Quality Management Inventory Management Purchasing Production Tests with Attributes and Specifications Define Quality tests with Order Results attribute specifications Item and Test Cross Reference •Target value Test Results •Specifications •Tolerances Test Sample Results •Capture results at Test •Test Sample Unit •Test sample Results •Test sample unit •Apply to Certification Records 31 Effective Enterprise - Manufacturing Quality Extensions Quality Management Inventory Management Purchasing Production Tests with Attributes and Specifications Item and Test Cross Reference Quality Order Results Define Item Testing Test Results •Assemble test sequences •Pass/Fail Test Sample Results •Observation Test Sample Unit Results 32 Effective Enterprise - Manufacturing Quality Extensions Quality Management Inventory Management Purchasing Production Tests with Attributes and Specifications Quality Orders Item and detail Test •Results with every Cross Reference •Linked to original document •Inventory Lot •Certification •APIs for data collection Quality Order Results Test Results Test Sample Results Test Sample Unit Results 33 Effective Enterprise - Manufacturing Lot Trace – Backward (Supplier Data) 34 Effective Enterprise - Manufacturing Lot Trace – Forward (Customer Data) 35 Manufacturing Product Strategy and Direction Manufacturing to the Next Level • Mixed Mode Manufacturing Environments - Single Solution Design - Integrated Features - Consolidated • Business Processes • Consistent UI 36 Manufacturing Product Strategy and Direction Mixed Factory Environments • Hybrid Mode - Batch/Process • Mixed Mode - Work Orders - Repetitive - Flow • Lean/Kanban One Factory One System Hybrid Mode Mixed Mode 37 Manufacturing Product Strategy and Direction Production Orders – The Next Level Planning Scheduling Freeze BOM / Routing Batch Balancing Report Labor Component Availability Check Scrap Allocate Material Print Picklist Backflush Close Order Produce Issue Material Transfer Material Subcontract Processing Production Accounting Print Shop Papers Release Order Receive FG Manufacturing Product Strategy and Direction Manufacturing to the Next Level • MRP/Gross Requirements Calculation - Material Planning for Lean Production Environments (Pull Systems) • Provide forecasts to suppliers for mid/long term • Capacity planning for kanban production - Component Demand • Average Demand Calculation • Kanban Sizing and Kanban Workbenches - Process - Loop • Mid and Long Term Material plans for suppliers and subcontractors 39 Manufacturing Product Strategy and Direction MRP /Gross Requirements Calculation • Plans order release date for gross Conventional MRP plans orders with requirement due dates to satisfy the requirement due date Order Policy: POQ, FOQ, LFL Inventory Supply inventory to be consumed by the requirement. Planned Order Release Date Backward Scheduling Requirement Due Date Planned Order Due Date Planned Order Release Date Signal Replenishment for inventory consumed by the requirement. MRP with gross requirements calculation plans order release dates based on the projected consumption of inventory using the requirement due date Order Policy: GRC Shipping Forward Scheduling Planned Order Due Date Requirement Due Date Inventory Shipping 40 Manufacturing Product Strategy and Direction Lean – Continual Improvement • Kanban Sizing Workbenches 41 Manufacturing Product Strategy and Direction Manufacturing to the Next Level • Lean Transactions - Cumulative Orders - Accountability - Improved Integration (Closed Loop) • Move Loop Modeling - Model flow of material from Supermarkets to a customer, subcontractor, warehouse or process. • Dispatching - Calculate Dock Dates - Create Supplier Shipping Schedules - Dispatch to subcontractors 42 Manufacturing Product Strategy and Direction Subcontract and Supply – The Next Level Provide financial accounting for materials Support high volume of shipments and materials to multiple subcontractors Provide schedules to subcontractors to manage limited warehouse space Promote the efficient and uninterrupted flow of materials to subcontractors 43 Manufacturing Product Strategy and Direction Manufacturing to the Next Level • Subcontract Supply Subsystem - Manage Subcontract Supply based on subcontract schedules - Automatic creation of supply orders based on BOM • Supplied WIP Items • Raw Materials - Plan Components for Outbound Shipment • Pick / Ship (Sub-Location) • Ownership Accountability • Subcontractor Sends Kanbans - Drop Ships 44 Manufacturing Product Strategy and Direction Building to an Effective Enterprise : Summary Automotive Consumer Products Food and Beverage High Technology Industrial Manufacturing Life Sciences Periodic Costing H H H H H H Information Requirements H H H H H H Business Intelligence H H H H H H MSW/PSW H H H H H H Kanban Workbenches H H L H H H/L Extended Attributes H H H H H H Serialization H H H H H H Quality Extensions H H H H H H Connectivity / Services H H H H H H Constraint-Based MS H H H H H H Lean Material Planning / Extensions H H L H H H/L Subcontract Manufacturing H H M/L H H M/L Retro-Pricing H M M M H L Enhancement 45 Manufacturing Product Strategy and Direction Questions www.qad.com Manufacturing Product Strategy and Direction For More Information, Please Contact Bengt Johansson, CPIM bjj@qad.com Nicole Groves, CPIM ncg@qad.com © QAD Inc 47