Window into QAD Product Development

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Window into QAD Product Development

• Carianne Nieuwstraten
• Product Manager
• Midwest User Group - September 28, 2004

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Product Development

• QAD Review
• 2004 Product Development
• Customer Self Service (CSS)
• JIT Sequencing (JIT/S)
• Shared Services Domain
• Distributed Order Management
• Business Intelligence (BI)
• AIM
• Lean
• Vertical Development Projects for eB3
• Project Proposals Under SSC Review

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QAD Snapshot
ABOUT QAD
QAD COMPANY INFORMATION
NASDAQ QADI Founded 1979 IPO 1997 FY05 Est.
Revenue 230-240 million Licensed Sites 5,200
worldwide Customer Renewals 90 Offices 26
countries Employees 1,300 worldwide Headquarters
Santa Barbara, CA Fiscal Year End January 31
A leader in providing ERP and supply chain
execution software applications and services to
global manufacturers in target vertical markets.
QAD GLOBAL FOOTPRINT
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QADs Global Market Presence

• QAD solutions manage the core business processes
  of the manufacturing enterprise
• Focused on 6 manufacturing verticals that
  represent 80 of global manufacturing
• Established in 8,000 sites 10 of global
  manufacturing sites
• Customer base includes 400 multinational
  companies that generate 70 of QADs revenue

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Well-Positioned in Marketplace
Mega Suites(SAP, Oracle, PSFT/JDE)
STRENGTH REACH
Roll-ups(SSA, Epicor, Mapics, Agilsys)
Regional Players(Intentia, IFS, others)
INDUSTRY PRODUCT FOCUS
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strong

• Best financial performance in QAD public history
• Consistent profit for 8th consecutive quarter
• 18 FY04 revenue growth over previous year
• 20 of licenses are new manufacturing plants
• Deep and experienced management team
• Strong net cash position

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confident

• AMR A Friend to the Manufacturer
• Validated by Meta Group as ERP value leader
• Lowest Total Cost of Ownership (TCO)
• Fastest Time To Implement (TTI)
• Highest Net Return On Investment (ROI)
• START Magazine Hottest Companies of 2004
• QADs Lean Manufacturing success deployed at
  more than 80 sites
• Jim Kirkley - QAD CTO ? InfoWorld Top 25 Most
  Influential CTOs

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unique

• ERP Value Leader
• Total Cost of Ownership Leader
• Time to Implement Leader
• Return on Investment Leader

• Focused Suite Leader
• Create space and lead
• Focus has its benefits

• Automotive ERP Leader
• Mid-Market Leader - almost

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Global Manufacturers Choose QAD
CONSUMER PRODUCTS
ELECTRONICS
AUTOMOTIVE
FOOD BEVERAGE
INDUSTRIAL
MEDICAL
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2004 Product DevelopmentCustomer Self Service
(CSS)
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What is the QAD CSS product?
QAD CSS provides a user friendly web-order
entry and visibility system that completely and
seamlessly integrates to MFG/PRO functions online.
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QAD CSS Functionality

• Streamlined order entry processes
• 24 x 7 access via the Internet
• Information availability and accessibility
• Multi-Language, multi-currency capabilities
• Individual personalization features
• Customizable pages for seamless integration
• Automated notifications via email
• Advanced Security model

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Personalization

• Screens can be individually designed per user /
  customer
• The appearance and content of QAD CSS screens
  usually does not require programming
• Individual or Group security controls what
  options and functions are available.

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Customizable

• Easily tailored to corporate presentation UI
• Users can have custom settings
• Seamless integration into corporate website, QAD
  CSS can become another component on an existing
  site

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Availability
CSS 4.1 CSS 4.1.1 CSS 4.1.2 CSS Support MFG/PRO
X X X X eB2
X X X X eB
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Product Roadmap

• Development plans for CSS release 4.1.3 for Oct.
  04 time frame
• Provide ability for QAD customers to install and
  implement CSS without requirement of Services
  engagement.
• Simple installation and implementation tools
• Bug fixes
• Future plans for CSS 4.2 no timeframe yet
• European Accounting certification
• Trade Management certification
• eB2.1 compatability
• GTM certification
• EMT certification
• Credit card processing enhancements
• Oracle certification
• Security enhancements
• RMA module

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2004 Product DevelopmentQAD JIT Sequencing
(JIT/S)
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OEM Communications to Tier-1 JIT Plants
Forecast Long- and Short-Term EDI Schedules
6 months/14 days
10 days
1 day
6 hours
300 minutes
Final Assembly Line Fixed Sequence
Predicted Sequence
Body Shop
Paint
Point of Fit
Broadcasts
EDI Transmissions
Tier-1 Supplier

• Build to fixed sequence broadcast, an earlier
  broadcast, or from EDI schedule release
• Ship to fixed sequence broadcast
• Invoice from point of fit broadcast

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QAD Solutions for Sequenced JIT
ECommerce

• MFG/PRO eB2
• Inventory
• Repetitive schedules, flow schedules, work orders
  for finished and semi-finished goods
• Supplier schedules for finished and
  semi-finished goods, raw materials

• Supply Visualization
• Inventory
• Kanban
• Supplier schedules

• AIM
• Warehouse management

• Lean
• Kanban for finished and semi-finished goods, raw
  materials

• QAD JIT Sequencing
• Sequenced JIT work orders for finished and
  semi-finished goods
• Sequenced packaging and shipment for automotive
  in-line vehicle sequencing

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JIT/S Supports Lights Out Processing

• Background processes provide event-driven
  processing of messages and events

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Customer Order Workbench
Customer order versions from one or more
broadcast points

• Manage customer order demand from multiple
  broadcast points
• View and manage dependent work orders
• Identify and resolve customer communication
  errors

Work orders
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Production Workbench

• Print production labels
• Report production
• Support touchscreen terminals

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QAD JIT Sequencing for Early Adopters

• Early Adopter program underway to provide
• Plant operations management
• Sequenced demand (broadcast, 866, DELJIT)
• Sequenced production
• Production data collection from shop floor
• Sequenced racking/packaging
• Sequenced shipment scheduling and processing
• Event-driven processing
• Deployment with MFG/PRO eB2

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2004 Product DevelopmentShared Services Domain
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QADs
eB2 upgrade status
A World Wide release that is the most compelling
release of MFG/PRO ever!
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MFG/PRO eB2
1121 Upgrade Orders
500 already live
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Existing MFG/PRO versions
up through MFG/PRO eB2

• Per MFG/PRO database
• Single Base (Functional) Currency
• One Chart of Accounts
• One set of control files, e.g., controlling
  document numbering
• One set of master files
• If there are multiple legal business, then
  multiple MFG/PRO databases are implemented for
  accounting and reporting
• Functions available to synchronize data between
  databases, perform GL consolidation etc.

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• QAD Goal
  Provide
  functional support for a global enterprise -
  multiple business entities (i.e., organizations
  or domains) within a single database system

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Domains, Entities and Sites
Database settings, such as users and
infrastructure
Domain 3 USD
Domain 1 EUR
Domain 2 GBP
Site 2
Site 3
Site 4
Site 5
Site 6
Site 1
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A Domain

• Defines Base Currency, Chart of Accounts, GL
  Periods etc.
• Every Domain can be configured independently
  (control files by Domain)
• Security is by Domain
• Nearly all static data is by Domain
• All transaction data is by Domain
• Selected Static Data can be shared between
  Domains using Replication
• Sharing of data can be defined up to field level

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MFG/PRO eB2.1 Availability

• Seven Customers currently in Early Adopter Phase
• AJ Antunes
• Actaris
• Lumenis
• Pasdec Resources
• Petzetakis
• Bell Fruit
• Mark Anthony
• Customers live on eB2.1
• AJ Antunes (December 2003)
• US
• China
• Actaris
• Saudi Arabia
• Portugal
• China
• Lumenis
• US

General Availability Coming Soon!
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2004 Product DevelopmentDistributed Order
Management
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The Quest for the Demand-Driven Supply Chain
Multi-Party Fulfillment Network
Multi-Channel Distribution Network
Fragmented Internal System Landscape
Service Order
VAR
Distributor
VAR
MFG/PRO eB2.1
Purchase Order
VAR
T3
Custom
T2
T1
T3
T2
T3
Oracle 10.7
Cust
Distribution Order
Web
Custom
Cust
SAP R/3 SD
Dist
Manufacturing Order
OEM
Dist
Source AMR Research
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Distributed Order Management

• global
• order integration
• and coordination with

local execution
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First StepMFG/PRO eB2.1
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MFG/PRO eB2.1 Shared Services Domain Solution
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Next StepDistributed Order Management
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Distributed Order Management

• Broker order transactions
• Global inventory levels or product availability
• Global credit status, availability, risk
  evaluation
• Global pricing retrieval
• Global order visibility

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Sonic Enterprise Service Bus
QAD Enterprise Solution
XML/EDI
CSS for external orders with GLOBAL VISIBILITY
Central Order CAPTURE with GLOBAL VISIBILITY
Distributed Order Management - Business Rules,
X-ref
eB2.1
eB2.1
Plant 1 Chicago Logical Partition by Domain
DC 2 New York Logical Partition by Domain
Plant 3 Seattle Logical Partition by Domain
BU 4 Paris Logical Partition by Domain
Plant 5 London Logical Partition by Domain
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2004 Product DevelopmentBusiness Intelligence
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What is BI ..

• BI stands for Business Intelligence
• Numerous interpretations
• Analysis of data
• Drill-down from summary level to details
• Ad-hoc Reporting Query
• Reporting with hyperlinks to details

BOTTOM LINE Business Intelligence is about
EMPOWERING EMPLOYEES to be able to make
INFORMED DECISIONS QUICKLY.
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What is QAD BI?
Tool to enable better informed decisions Bring
focus, find underlying causes, then focus
attention with exception flags Discover hidden
strengths and successes, emphasize and leverage
positive results Gain knowledge that will help
your organization
Data Transformer Extract, Transformation and
Load (ETL) Progress Data Warehouse Business
Models 7 Pre-defined Models (Over 150
Measures/KPIs) Cognos Analytics Cognos Powerplay
Cubes for Analysis and Drill-down
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QAD BI
QAD BI Data Transformer ETL Data Warehouse
Sales Analysis
Financial Controlling
Inventory Performance
Manufacturing Performance
Vendor Rating
Service Performance
Forecasting
QAD BI Cognos Analytics
QAD BI - Business Model
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QAD BI Business Model Value

• Return on investment
• Implementation speed is an important factor
• You want return on investment as soon as possible
• The extra burden of the project on your
  organization must be short
• 7 predefined models based on MFG/PRO
• Over 150 Key Performance Indicators (KPI) such
  as
• Inventory turns and run-out times
• Production load and efficiency
• Days sales outstanding
• The result is a short implementation time based
  on business standards

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Product Roadmap

• Multiple Sources
• Reporting
• Analytics
• Metrics Management

REPORTING ANALYTICS
Low Cost Capabilities

• Multiple Sources
• Reporting
• Analytics

REPORTING
Single Site ENTERPRISE / Domain
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Product Availability

• QAD BI version 1.0.1 available now.
• US English
• Standard support eB and eB2
• MFG/PRO should be running on Progress dB
• QAD BI Windows Platform
• MFG/PRO Unix/Windows
• BI product plans
• Support for MFG/PRO 9.0
• Support for additional data sources
• Language Support
• French
• Spanish
• German
• Dutch
• eB2.1 compatability

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2004 Product DevelopmentLean
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Product Overview

• Product Description
• Provides pull replenishment techniques and buffer
  management with an integrated visualization tool
• Product History
• Introduced KANBAN sizing
• MFG/PRO eB, Sept. 2000
• Provided KANBAN transaction and Flow scheduling
• MFG/PRO eB2, Sept. 2002
• Introduced Pull replenishment
• MFG/PRO eB2 SP3, July 2003

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Product Value

• Product Value
• Focus on eliminating waste and continuous
  improvement
• Allows decreased inventory, lead times, operating
  cost
• Improve demand accuracy and data integrity
• Provides increased agility, quality, floor space

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Key Accounts
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Lean Manufacturing Product Plan
Demand Flow Management
Kanban Management
Lean Scheduling and Production
Standard Work Elements
Line Design and Optimization
Pull Replenishment
Advanced Flow Management
Extended Enterprise Signaling
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Key Features QAD Lean

• Enhanced pull techniques with Kanban
• Average demand calculation
• More sophisticated buffer quantity and sizing
  logic
• Dynamic safety stock
• Advanced level pull logic
• Every Part Every Interval (EPE I) for level
  loading
• Kanban loop simulation
• Buffer management
• Includes performance evaluation and adjustment
  logic
• Kanban-based activity management with integrated
  visualization product (KV)

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Advanced Flow Management - Key Features

• Kanban sequence enforcement (Consume Fill
  Consume cycle)
• Automated loop resizing
• Support inbound and outbound EDI with suppliers
  (ASNs)
• Customer requests
• Provide Heijunka box capabilities (includes
  improved handling of customer demands vs.
  supermarket replenishments vs. MPS)

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2004 Product DevelopmentAIM
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Internal Logistic Stream

• Inventory reduction
• Data accuracy
• Obsolescence Mgt.
• Space optimization
• Lead time Reduction
• Task Efficiency
• Increased Productivity
• Transportation / transfers
• Supplier/customer partnership

Enterprise
Customer
Stocks RM
Stocks FG
Receipt Control Bulk Packing
Packing Dispatch
WIP
Secu Stk
Secu Stk
Consignment Stock
Consignment Stock
Site 2
Warehouse 1
Warehouse 2
Distribution centre
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Warehousing Key Challenges

• Warehousing Diversity
• Paper Handling
• Warehouse Organization
• Space Optimization
• Inventory Carrying Costs
• Standard MFG/PRO Module Vs. Interfaced Solution
• Standard interface between ERP and WMS does not
  exist!
• Standard Module
• Eliminates need for different applications or
  servers
• Integrated with MFG/PRO Inventory module
• Reduced Implementation Lead Time and Cost (AIM
  Consultant is a MFG/PRO Consultant)

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Advanced Inventory Management

• Objectives
• Optimize use of available storage space
• Efficient use of resources in warehouse
• Automated task manager
• Sophisticated control of warehouse within MFG/PRO
• Put-away/picking logic

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We developed a script incorporating our most
obscure requirements. QADs AIM Warehouse
Management module proved to be just the robust
solution we needed in terms of deep logistic
functionality together with the broader ERP
capabilities our new business model required.
Serge Guizzetti Operations Support Manager for
the Logistics Division
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AIM Status and Product Roadmap

• Functionality added in April 2004
• Customer and Supplier Consignment support
• DO Receipt enhancements
• New reports and maintenance functions
• eB2.1 compatability
• Planned for October 2004
• Batch picking
• New MFG/PRO SPs supported
• Future plans
• Wave Planning
• RF Containerization
• RF Truck Loading
• Truck Shipment
• RF Barcode Identifiers

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2004 Product DevelopmentVertical Development
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Mission
Key customers and QAD representatives collaborate
to define, prioritize and drive development of
industry specific enhancements to QAD products
which will be supported, maintained, and
distributed through normal QAD channels.
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Automotive Solutions eB3

• Complete
• Subcontract Shipping Enhancements
• Trade Sales (EMT for Schedules)
• Separate Manufacturing and Shipping Calendars
• Customer Schedule Netting logic Enhancement
• In Process
• Supplier Schedule Activity Enhancement
• A/R Self Billing Enhancement- European
  Enhancement
• Production Scheduling Workbench
• Consignment Pending Voucher Fix
• Consignment Average Costing

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E/I Solutions eB3

• Complete
• Item Replacement
• Item Supersede
• Up Sell/Cross Sell
• Call Center
• Memo Type Defaulting
• Installed Base Hierarchy
• BOM Clone/Deactivate
• In Process
• Obsolete Inventory Analysis
• Product Line Realignment
• Contract Tracking Management
• Contact and E-mail Efficiency
• Advanced Flow Management

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Medical Solutions eB3

• Enhanced Security
• All customers
• Sarbanes Oxley infrastructure
• Part 11 (Medical, Food Beverage)
• Audit Trails
• Sarbanes Oxley infrastructure
• Part 11 (Medical, Food Beverage)
• Electronic Signatures
• Part 11 (Medical, Food Beverage)

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In SSC Review
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Solutions in review with SSC

• Demand Management (Forecasting and Planning)
• Configurator (EI)
• Load Optimizations (CP)
• CAPA (Medical)
• Warranty (Auto)
• Enhance MFG/PRO Financials (Approved for eB3)
• Financial Shared Services
• Holding customer meetings to create Customer
  Advisory/DG

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Thank You!czn_at_qad.comPhone 503-236-0025