ERP Moves to Real Time via Production Execution Glenn Graney, QAD Director Industrial and High TechTuesday, May 7

Personnel CheckERP and QAD Production Execution

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Glenn GraneyQAD - Director Industrial

and High Tech

Safe HarborERP and QAD Production Execution

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This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties. Actual results and events may differ materially from those set forth in these forward-looking statements. These risks and uncertainties are detailed in QAD’s SEC filings, including its latest Annual Report on Form 10-K and in particular the section titled “Risk Factors” therein and other periodic reports subsequently filed by QAD with the Securities and Exchange Commission.

This presentation contains references to certain financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accountingprinciples generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s results. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.

This presentation 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.

QAD undertakes no obligation to update forward-looking statements.

Definition of Real Time for Manufacturing is RelativeERP and QAD Production Execution

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“the actual time during which a process or event occurs”

Traditional manufacturing “real” time• Subseconds: shop floor safety• Seconds: APP response• Minutes: material delivery• Hours: machine changeover• Days: production runs• Weeks: production schedules

Traditional ERP / Operational Scenarios Are < RealERP and QAD Production Execution

• Legacy ERP planning cycles may be batch• Operations receive “periodic” updates

- Disconnected plans / schedules are outdated- Manual execution activity via spreadsheets- Multiple versions of the truth

• Legacy Manufacturing Execution Systems (MES) - “Logical lags” built into system integration- Data exchange is limited to aggregate- Fall short of real time- Reconcile / reconcile / reconcile

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There Are Real Advantages to Real TimeERP and QAD Production Execution

• Trends can happen in real time versus post processing

• Conversations in real time result in collaboration

• Recommendations in real time make for timely more impactful decision making

• Collecting and analyzing real time data results in real time insight

Labs Process – Customer Collaborative in Real Time ERP and QAD Production Execution

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Educate / Evaluate

Research /Monitor

Productize / IntegrateInnovate

IMPETUSIndustry buzz

Competition

Customer request

CRITERIARelevance

Customer perception

Commercial attractiveness

Addressability

Maturity

INVESTIGATIONVendor vetting

Skilled Resources

Offering positioning

Integration scenarios

COLLABORATIONMinimum viable

functionality

Engage around known customer

interest

Expand solicitation to additional

targets

SOLIDIFYMinimum viable

architecture

Technology / vendor

finalization

Pricing models

INCORPORATEFinalized pricing

Sales training

Demo / presales materials

Multi-generation delivery

Globalization

Identification Consideration / Prioritization Evaluation Experimentation Iteration Productization

QAD ProductionExecution

What is Production Execution?ERP and QAD Production Execution

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Traditional ERP / QAD Capability• Material and Production Planning • PSW schedule management• Business / Financial level

operation and execution

Manufacturing Shop Floor• Operational execution of manufacturing processes• Association of operators with equipment• Equipment operation and monitoring• Automated and manual data capture

Clipboard and on-line data

collection

QAD Automation SolutionsShop floor material and production transaction capability

Controllers & isolated factory

LAN’s

QAD

• Operators associated with work centers

• Operators record downtime / events at work centers

• Production orders assigned to work centers

• Work center status impacts production order progress

• Operators record production against production orders

• Operator labor associated with work orders

Functionality Deals with Status ERP and QAD Production Execution

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Work Center•Available / unscheduled•Running / stopped / idle

Operator•Active / logged in •Current associations

Production Order•Released / active / complete•Running / quantity progress

Integrated Order Status Between ERP and OperationsERP and QAD Production Execution

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Enterprise Resource Planning

QAD MSW / PSW Workbenches are the master for released and planned orders

Access points on shop floor allow for line-side •Order status changes•Order data capture•Work center status changes•Operator associations

Live Production Order status coordination through standard transactions and API’s

Secure Access and Operator AuthenticationERP and QAD Production Execution

• Simplified login scenarios• Operator id managed within QAD

- Does not require a full QAD user license and traditional QAD menu structure

- Coordinated with shop floor personnel list- Operator training verified for equipment and

Production Orders• Directed login for dedicated work center access points• Flexible login scenarios

- Kiosk orientation for shared terminals- Supervisor / maintenance / quality identification at shared terminal

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Production Order Status in Real TimeERP and QAD Production Execution

• Managed Production Orders via MSW/PSW• Simple operator-accessible line-side interface• Simple production reporting

- Order status- Order progress

• Operator associations- Operator(s) with equipment- Operator(s) with order(s)

• Simple equipment status- Automated data capture / status- Operator-reported equipment status

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Foundation Provides Transaction History / Audit TrailERP and QAD Production Execution

• Production order transactions- Time-stamped operation durations- Basis for costing / performance KPIs

• Operator transaction- Operator associations with equipment- Operator associations with orders- Basis for labor tracking and performance KPIs

• Equipment transactions- Equipment association with orders- Downtime and reason code capture- Basis for OEE and performance KPIs

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QAD Production Execution Operational ProcessesERP and QAD Production Execution

• Line-side delivery of documents- Setup diagrams- Quality / inspection documents

• Operator request center- Supervisor intervention scenarios- Material and pallet movement- Quality / maintenance personnel requests

• Material management integration - Component material from BOM- QAD Automation Solutions integration - Label printing and inventory transactions

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QAD Production Execution – Functional IntegrationERP and QAD Production Execution

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QAD Production Execution

QAD MSW/PSW

QAD Production Execution Apps(Enterprise Platform)

QAD’s ERP

Event data

Configuration Data

Production Orders

QAD CEBOS QMS

QAD Automation

Solutions

QAD EAMConfiguration Data

QAD Production ExecutionERP and QAD Production Execution

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Range of Operational Scenarios in Exhibition HallERP and QAD Production Execution

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IoT spoken here!• Full PLC Connectivity• Fully automated

production reporting• Integrated material

replenishment

RUN

STOP

RESETFAULT

PRODUCTION COUNT

9,999,999X

CLOSE

Integrated device capability• Operator association via

scanned badge• Scale-generated

production counts

Record

Scale Count

9,99910.2 gramsGross Weight:

CLOSE

Simplified operator production reporting• Simplified real time

operator production reporting via touch screen

• Integrated label printing and material handling

QAD Production Execution – Shared ExperienceERP and QAD Production Execution

• Tier 1 automotive supplier• QAD Production Execution go-live April 1

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“The solution really pushed the integration between QAD modules such as QMS, EE and AS. Of particular note is the integration between Production Execution and the scheduling workbenches. It greatly simplifies schedulers’ ability to keep up in real time with the shop floor.”

- IT Director

“The QAD Production Execution development team has been great to work with both at the project management level and tactically. They have listened to our needs and concerns and worked hard to ensure both a good long term solution while satisfying the requirements we expressed.”

- Supply Chain Manager

Increased Value from QAD Production ExecutionERP and QAD Production Execution

• Better operational decision making - Shared awareness of active status- Collaboration between operations and planning functions- Improved time to knowledge- Information foundation for actionable analytics

• Less paper – less paper – less paper- Operator productivity - Noninvasive data capture

• Less is more- Centralized solution has tangible benefits- Uniform data access / reporting - Reduced points of failure

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Summary: Moving Your Enterprise to Real TimeERP and QAD Production Execution

• ERP extends operationally- Avoids the trap of integration and bolt-ons- Reduces IT risk of life-cycle management

• Technology adoption based on desired outcomes- Advancement in connectivity- Modern data management- Digital thread versus hierarchal aggregation

• Organizational collaboration at the pace of production

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Questions and AnswersERP and QAD Production Execution

• Glenn Graney• gfg@qad.com• 434-433-0487

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Highlighted SessionsERP and QAD Production Execution

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Customer Case Study: QAD EE Deployment to

Caterpillar Foundry

Henry Laprun, James Shaw, Tony NicholsonCaterpillar Wednesday 11:00 AM - 12:00 PMRhythms 2/3

How to Accelerate the Digital Transformation

Using QAD Manufacturing

Guido VanDenBroeck and Brent Shooltz, QADWednesday 11:00 AM - 12:00 PMWaterbury Ballroom

eQMS Case Study: Transformation from

Manual to eQMS

Kim Dusch, QAD CEBOSMichael Winters, PPG AerospaceWednesday 1:30 PM - 2:30 PMRhythms 2/3

Highlighted SessionsERP and QAD Production Execution

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The Next Generation of Demand Planning:

Intelligent and Real-Time

Shaun Phillips, QAD DynaSysWednesday 3:00 PM – 4:00 PMRhythms 1

QAD Product Configurator

Integration with OpenRules

Joe St. Clair, Saint-GobainThursday 9:45 AM – 10:45 AMRhythms 2/3

Utilizing QAD Easy On Boarding Tools and

Documentation

Kevin Schram, WelbiltThursday 11:00 AM – 12:00 PMRhythms 1

Thank You!ERP and QAD Production Execution

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