West Coast User Group
Manufacturing Futures
Bill Keese, SVP R&D
February 11-12, 2013
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
New Manufacturing capabilities. “What’s in it for you?”
Effective Enterprise
“An Effective Enterprise is one where
every business process is working
at peak efficiency and perfectly
aligned to the company’s
strategic goals. ”
3
New Manufacturing capabilities. “What's in it for you?”
Objectives
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
4
New Manufacturing capabilities. “What's in it for you?”
Role Based access
5
New Manufacturing capabilities. “What's in it for you?”
Affected Roles ERP users in Operations
General
• Plant Manager
• Operations Manager (VP Manufacturing, Supply Chain)
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
Inventory
• Warehouse Manager
• Warehouse Supervisor
• Material Handler
•Inbound
•Internal
•Outbound
Manufacturing (Process)
Engineering
• Manufacturing Engineering
• Manager Process Engineer
• Value Stream Manager
Product Engineering (R&D)
• Product Engineering Mgr
Quality
• Product Engineer
• Quality Assurance Mgr • Document Control Clerk
• Quality Engineer
• Quality Technician
Tools and Assets (EAM)
• Plant Engineer
• Tool Manager
Cost Accounting
• Cost Accounting Mgr
• Tool Engineer
• Cost Analyst
• Tool Handler
• Cost Accountant
6
1
Why are we not synchronized today?
Click For Next Point
Working with disconnected tools
Stage
Capability
Tuesday 9am: Updates
today’s production
schedule to accommodate
rush order
Demand/Inventory Reports
MRP
Supplier Schedules
?
Production Schedule
(version C)
Manual Adjustments
System Data
+
Production Schedule
(version B)
System Data
+
Production Schedule
(version A.1 Modified)
Production Schedule
(version A)
7
New Manufacturing capabilities. “What’s in it for you?”
Master Scheduler’s Challenge
Executives
Finance
Profits are slipping and
our ROI must improve;
the stockholders are
not happy!
There’s too much
cash tied up in
inventory!
Manufacturing
Engineering
There are too many
changes! Provide
fixed schedules and
the correct parts and
delivery will improve.
There’s a new
product introduction
scheduled for the fall!
But we need more
time for design!
Sales
Service levels are
down. I need more
inventory! Whatever it
takes to keep the
customer happy!
8
New Manufacturing capabilities. “What’s in it for you?”
Master and Production Scheduling Objective:
“Say YES and Mean YES”
• 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
9
New Manufacturing capabilities. “What’s in it for you?”
Are Objectives Being Met?
• 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
10
New Manufacturing capabilities. “What’s in it for you?”
Constraint-Based Master Scheduling Tool
• Rebuilds Master Schedule
- Aligns Supply and Demand
• Smoothes Demand by Type
- Backward/Forward (Daily)
- Average (Time Period)
• Production Leveling
- EPEI
- Capacity Constrained
- Allocation
11
MSW – Master Scheduling
Auto-Level
production line
schedule considering:
-Capacity Constraints
-Order Priorities
-Business Rules
Leveling Methods – “Allow
me to simulate different
plans to achieve an
appropriate balance of ontime delivery and capacity
and product mix.”
1
2
Click For Next Point
New Manufacturing capabilities. “What’s in it for you?”
Production Scheduler’s Challenge
Manufacturing
Finance
Labor/Machine
resources not
available for 2nd shift –
what are you going to
do about this?
High variances to
“plan” (extra set up,
downtime, labor), you
need to optimize your
production schedule
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.
13
PSW – Production Scheduling
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
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
Click For Next Point
PSW – Production Scheduling
Establish schedule
meeting both
maintenance and
scheduling needs:
- Review planned
maintenance orders for
responsible resources
and start dialogue
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.”
1
2
Click For Next Point
New Manufacturing capabilities. “What’s in it for you?”
New Features for the Schedulers
•
•
•
•
•
•
•
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
16
New Manufacturing capabilities. “What’s in it for you?”
New Features for Production Control
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
•
•
•
•
•
•
17
New Manufacturing capabilities. “What’s in it for you?”
Material Planner’s Challenge
Manufacturing
Finance
Carry more safety
stock in case of low
yields/ schedule
changes. We have to
meet our schedules!
Inventory turn over is
too low/ Inventory
Investment is too high.
Need to reduce
inventory levels.
Suppliers
Cannot ship when
requested. Is it ok to
ship late? And please
send us a forecast for
the next 3 months
Materials
Subcontractors
What is the supply
plan for sending me
materials?
No shelf space for
excess materials. You
need to reduce safety
stock
18
New Manufacturing capabilities. “What’s in it for you?”
Material Planner – Day In the Life
“I need to check the
shortages for the parts I
manage and determine
what I can or need to do
about the shortages.”
Material
Shortages
Material Delays –
expiring inventory
Shifting demand
priorities
Monitor
Material
Shortages
Internal Supply Chain Synchronization
19
1
Material Planner – Day In the Life
Order Component Status (Shortage)
Both the Scheduler and the Buyer
have visibility of the material
shortage and the impact to the
production schedule
2
Click For Next Point
New Manufacturing capabilities. “What’s in it for you?”
Material Planner – Day In the Life
“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.”
Too Many Cards
In Kanban Loop
GRC - Resize
21
New Manufacturing capabilities. “What’s in it for you?”
GRC
22
New Manufacturing capabilities. “What’s in it for you?”
Material Planner – Day In the Life
“ We are ramping up a new
subcontract supplier and I
need to give them a supply
schedule for materials
supplied by us.”
Subcontractor
Supplied
Company
Materials
Subcontract
Supply
23
Subcontract Supply*
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.”
1
2
Click For Next Point
Manufacturing Summit – Subtle changes Big Impact
New Features for the Material Planner
• 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.
25
1
New Manufacturing capabilities. “What’s in it for you?”
Click For Next Point
Real-Time Synchronization
•
•
Planning &
Scheduling WB’s
Visualized with in WB’s & Role Based Collections
Enabled through the CAC Component Check
Availability Engine (MRE) not (MRP)
Shortage Monitor /
Purchase Direct
Manage Materials
by Resource
Release Production
by Resource
CAC ENGINE
26
In core product
New Manufacturing capabilities. “What’s in it for you?”(No additional cost)
”Make more effective planning decisions”
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
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
27
New Manufacturing capabilities. “What's in it for you?”
Affected Roles ERP users in Operations
General
• Plant Manager
• Operations Manager (VP Manufacturing,
…
Materials Management
Inventory
• Warehouse Manager
• Master Scheduler
• Material Planner
• Warehouse Supervisor
• Production Scheduler
• Material Handler
• Buyer (Direct Materials)
•Inbound
• Kanban Analyst
•Internal
•Outbound
Production Operations
• Production Manager
Quality
• Quality Assurance Mgr
• Production Controller
• Quality Engineer
• Production Supervisor
• Shop Floor Operator
• Quality Technician
Purchasing
• Purchasing Manager
• Buyer (MRO, CAPEX)
• Purchasing Clerk
Cost Accounting
• Cost Accounting Mgr
• Cost Analyst
• Cost Accountant
Supply Chain)
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
28
New Manufacturing capabilities. “What’s in it for you?”
Shop Floor Operator’s Challenge
Supervisor
Production Control
We must meet to
day’s schedule. You
need to be more
productive.
Schedule change
due to material
shortage. Make these
items first.
Product
Engineering
Quality
Why are we having
defects? How many
are you finding.?
Show me the SPC
chart
Tool Maintenance
We need access to
the machine for two
hours for repairs
We need to
implement a new
revision. Use this new
spec.
29
New Manufacturing capabilities. “What’s in it for you?”
Day in Life Shop Floor Operator
•
•
•
•
•
•
Set up machines, tooling
Inspect & Monitor machines
Record Production Activity
Product Quality Control
Packaging End-of-Line
Move Materials
30
New Manufacturing capabilities. “What’s in it for you?”
Shop Floor Operator– Day In the Life
“What’s my schedule
today? Do I have the
materials and tools I need?
What do I set up first?”
Daily
Production
Schedule
View
Production
Schedule
Internal Supply Chain Synchronization
31
New Manufacturing capabilities. “What’s in it for you?”
Production Operation Activity Collection
32
New Manufacturing capabilities. “What’s in it for you?”
New Features for Shop Floor Operator
• 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
33
In core product
New Manufacturing capabilities. “What’s in it for you?”(No additional cost)
”Make users in shop floor more productive”
•
•
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
…
Many enhancements to streamline material handling activities,
will reduce handling time, increase inventory accuracy
34
New Manufacturing capabilities. “What's in it for you?”
Affected Roles ERP users in Operations
General
• Plant Manager
• Operations Manager (VP Manufacturing,
…
Materials Management
Inventory
• Warehouse Manager
• Master Scheduler
• Material Planner
• Warehouse Supervisor
• Production Scheduler
• Material Handler
• Buyer (Direct Materials)
•Inbound
• Kanban Analyst
•Internal
•Outbound
Production Operations
• Production Manager
Quality
• Quality Assurance Mgr
• Production Controller
• Quality Engineer
• Production Supervisor
• Shop Floor Operator
• Quality Technician
Purchasing
• Purchasing Manager
• Buyer (MRO, CAPEX)
• Purchasing Clerk
Cost Accounting
• Cost Accounting Mgr
• Cost Analyst
• Cost Accountant
Supply Chain)
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
35
New Manufacturing capabilities. “What’s in it for you?”
Material Handling
Pick / Move
Make
Receive
Inspect
Put-Away / Store
Pack
Pick / Move / Ship
36
New Manufacturing capabilities. “What’s in it for you?”
Day in Life Material Handler
•
•
•
•
•
•
•
•
•
Unloading
Match & Receive
Transfer / Put-Away
Picking
Packaging & Labeling
Weighing / shipment data
Loading / dispatch shipments
Cycle counting
Account for all material handling
37
New Manufacturing capabilities. “What’s in it for you?”
Serialization - Building Blocks
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
38
In core product
New Manufacturing capabilities. “What’s in it for you?” (No additional cost)
”More productive material handling”
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
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
39
New Manufacturing capabilities. “What's in it for you?”
Affected Roles ERP users in Operations
General
• Plant Manager
• Operations Manager (VP Manufacturing,
…
Materials Management
Inventory
• Warehouse Manager
• Master Scheduler
• Material Planner
• Warehouse Supervisor
• Production Scheduler
• Material Handler
• Buyer (Direct Materials)
•Inbound
• Kanban Analyst
•Internal
•Outbound
Production Operations
• Production Manager
Quality
• Quality Assurance Mgr
• Production Controller
• Quality Engineer
• Production Supervisor
• Shop Floor Operator
• Quality Technician
Purchasing
• Purchasing Manager
• Buyer (MRO, CAPEX)
• Purchasing Clerk
Cost Accounting
• Cost Accounting Mgr
• Cost Analyst
• Cost Accountant
Supply Chain)
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
40
New Manufacturing capabilities. “What's in it for you?”
Day in Life Quality Technician
• 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
41
New Manufacturing capabilities. “What’s in it for you?”
Quality
• 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
42
In core product
New Manufacturing capabilities. “What’s in it for you?”(No additional cost)
”Make Quality Technicians more productive”
•
•
•
•
•
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)
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
43
In core product
New Manufacturing capabilities. “What’s in it for you?”(No additional cost)
”Support for Industry Compliance”
•
•
•
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
Serialization enables support for California ePedigree Act
Attributes will simplify implementation Compliance requirements
leveraging real-time data for decision-making
Reduce customizations
44
New Manufacturing capabilities. “What’s in it for you?”
Item Attributes, Quality Control and the
Effective Enterprise
• 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
45
New Manufacturing capabilities. “What's in it for you?”
Affected Roles ERP users in Operations
General
• Plant Manager
• Operations Manager (VP Manufacturing,
…
Materials Management
Inventory
• Warehouse Manager
• Master Scheduler
• Material Planner
• Warehouse Supervisor
• Production Scheduler
• Material Handler
• Buyer (Direct Materials)
•Inbound
• Kanban Analyst
•Internal
•Outbound
Production Operations
• Production Manager
Quality
• Quality Assurance Mgr
• Production Controller
• Quality Engineer
• Production Supervisor
• Shop Floor Operator
• Quality Technician
Purchasing
• Purchasing Manager
• Buyer (MRO, CAPEX)
• Purchasing Clerk
Cost Accounting
• Cost Accounting Mgr
• Cost Analyst
• Cost Accountant
Supply Chain)
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
46
New Manufacturing capabilities. “What’s in it for you?”
Introduction Process
• 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
47
What’s In it for You?
48