QAD MES Strategy and Direction Phil Friedman vice-president

QAD MES Strategy and Direction Phil Friedman vice-president solutions marketing Bengt Johansson – product architect R&D

MES Strategy and Direction Agenda Definition and architecture Alignment to ERP QAD strategy and direction QAD Version 1.0 - Capabilities - Partners alignment MES in the cloud Partnering with our customer 2

MES Strategy and Direction Definition and Architecture 3

MES Strategy and Direction MES Definition An information technology system(s) that manage(s) manufacturing operations in factories. International standards and models have refined the scope of such systems. Activities typically include: - Management of product definitions Management of resources Scheduling Dispatching of production orders Execution of production orders Collection of production data Production performance analysis Production track and trace 4

MES Strategy and Direction MES Goal Improve productivity and reduce cycle-time--the total time to produce an order. By integrating an MES with ERP software, factory managers can be proactive about ensuring the delivery of quality products in a timely, cost effective manner 5

MES Strategy and Direction Alignment to ERP 6

MES Strategy and Direction Manufacturing Architecture ERP Manufacturing Engineering Planning Replenishment Shipping Shop Floor Module Schedule & Release Production Reporting Quality Management MES PLC 7

MES Strategy and Direction Components of MES SCADA - Supervisory Control And Data Acquisition SPC - Statistical Process Control LIMS - Laboratory Information Management System ASRS - Automatic Storage and Retrieval System QMS - Quality Management System Shop Floor Data Collection Process Control PLC communication Plus 8

MES Strategy and Direction MES and ERP Transaction volumes Uptime System of record Data visibility across the plant/company Specialty machines, variety 9

MES Strategy and Direction QAD Strategy and Direction 10

MES Strategy and Direction Strategy Build key functionality into core product Tightly couple with QAD’s ERP solution Leverage strategic partners - Shop floor data collection - Quality Open API’s for integration - E.g. LIMS - SCADA 11

MES Strategy and Direction Strategy Extensions Via Partners & API’s MES applications Communicating with machine or PLC Automation – Process Control Mass data collection – SPC Shop Floor Services 12

MES Strategy and Direction QAD MES Version 1.0 13

MES Strategy and Direction MES – Shop Floor Current Functionality MSW/PSW WO (Advanced) Repetitive Kanban Warehousing Quality Management Traceability Reports BI QXtend QDOC 14

MES Strategy and Direction MES Direction MSW/PSW Scheduling and releasing WO Repetitive Quality Management Warehousing Traceability Reporting BI APIs Serialization Quality Management Operator Workbench Shop Floor Connector Manufacturing Intelligence Today In Process Planned Strategic Partner API’s and connectors Automation – Process Control MES applications Communicating with machine or Mass data collection – SPC Shop Floor Services PLC 2011 2011 2012 2013 2013 2014 2015 2015 2016 2017 2017 2018 2019 2019 2020 15

MES Strategy and Direction MES Version 1.0 ERP Shop Floor Module Schedule & Release Shop Floor Reporting Operator Workbench Manufacturing Intelligence Serialization Quality Management Shop Floor Connector MES PLC 16

MES Strategy and Direction MES – In-Process and Planned Serialization - Inventory serialization Packaging Label printing APIs & barcode reading Process manufacturing - Data collection Quality management Item and lot attributes Potency, concentration, catch weight Traceability – genealogy 17

MES Strategy and Direction Operator Workbench Visualize all info needed to do the job - Schedule Order info Product specs, drawings Operation instructions, Videos, SOP Capture data at the source - Produced output Material usage Time labor machine Test results 18

MES Strategy and Direction Operator Workbench Operator Workbench Work Order BOM Routing Testing Drawing Instructions Video Operating Procedures Completion 19

Manufacturing Intelligence, Dashboards, Visualization Order-Job Status Resource Status OEE, productivity, availability, quality KPI, trending Demonstrated throughput Display boards Desktops Mobile 20

MES Strategy and Direction Connectors Targeted software suppliers Pre defined data transfer capabilities - Bi directional - Ability to easily transfer data Leverage Q-Xtend 21

MES Strategy and Direction Open API’s For Integration Support multiple requirements and solutions Outbound examples - BOM - Pick list - Routing Inbound examples - Quality / LIMS - Time and material / labor - Receipts 22

MES Strategy and Direction Partner Strategy 23

MES Strategy and Direction Partner Strategy Leverage strategic partners - Shop floor data collection - Quality Connectors for targeted suppliers - Industry and customer focused Open API’s for integration - I.e. LIMS - SCADA 24

MES Strategy and Direction Strategic Partners Shop floor data collection - Vendor neutral, but targeted - Eagle – Factivity – Freedom – Radley Quality - Cebos 25

MES Strategy and Direction MES In The Cloud 26

MES Strategy and Direction Enabling MES in the cloud Manufacturing Site Barcode Printers RF Terminals QAD On Demand Data Center RFID Cloud Capability to run offline I.e. Data Collection Store and forward when recovered 27

MES Strategy and Direction Partnering With Our Customers 28

MES Strategy and Direction Commitment to Innovation Industry Standards QAD Strategic Steering Committee QAD Product Review Committee Analysts Research Vertical Market Competitive Analysis Industry roadmap Product roadmap Product definition INSIGHT Customer Requests QAD Customers QAD Field Feedback QAD Support Feedback QAD PRC Customer Advisory Groups Development groups Technical foundation Collaborative development 29

MES Strategy and Direction Metrics Affected Process Benefit Value One-screen visibility to detailed load vs. capacity, QOH, demand & supply data Significant reduction in scheduling time Reduced lead times Improved customer service -70 to 75% Color-coded alerts & visibility into detailed demand information Improved customer service Reduced scheduling time Reduced inventory 5 to 10% Enables load balancing against available capacity and highlights imbalances Improved resource utilization Improved customer service 10 to 20% Visibility to alternate production resources More efficient production scheduling process 10 to 20% -5 to 10% 5 to 10% -70 to 75% -5 to 20% 5 to 10% 30

MES Strategy and Direction Next Steps Engage with QAD R&D and Marketing teams to help define and prioritize our roadmap Please attend Work bench presentation - Wednesday 4:00 – Manufacturing efficiency Stop by the Expo and see the partner products mentioned in this session: Eagle Factivity Freedom Radley 31

MES Strategy and Direction Questions & Answers Phil Friedman [email protected] Bengt Johansson [email protected] 32

www.qad.com QAD Inc 33