Giving New Eyes to MFG/PRO® through Integrated, Real-time Automated Data Collection

1. Giving New Eyes to MFG/PRO® through Integrated, Real-time Automated Data Collection Rod Rego, Furlani’s Food CorporationRay Agrusti, Eagle Consulting and Development

2. Overview • Premise: • Enterprise systems operate at peak effectiveness when using data that is real time, accurate and validated by the system’s own standards. • Evidence: • Furlani’s Food Corporation and Eagle Consulting and Development will use the Furlani’s implementation to provide many examples of how this optimum combination translates to specific benefits.

3. About Furlani’s • Furlani’s Food Corporation: • What we make: • High-quality bakery products including garlic toast, garlic loaves and garlic breadsticks • Our physical facilities • A fully automated, HACCP-compliant plant totaling 140,000 square feet, including two freezers and a cooler • A raw materials and packaging warehouse totaling 50,000 square feet • Our customers • Frozen Grocery, Bakeries & Deli’s, Club Stores and Foodservice markets throughout Canada and the US.

4. Why Furlani’s decided to implement a bar code solution

5. To meet external requirements • Customer Audits • Some customers prefer but do not yet require, complete on-line lot tracking back to supplier lots and vice versa (whereas we were tracking supplier lots manually) • On-line lot tracking and mock recalls • Keep pace with requirements from larger customers such as Wal-Mart, Pizza Hut and Pizza Pizza • Compliance • Keep pace with on-going and anticipated Bio-Terrorism regulatory legislation, FDA requirements, US Customs and Border Protection, Department of Homeland Security (majority of customer sales to the US) and also the CFIA (Canadian Food Inspection Agency) recall requirements

6. To achieve savings • Eliminate intentional production overruns • Such overruns occur when inventory quantity accuracy or lot accuracy is in question • Achieve better tracking and management of Lot Expiration for stock rotation and reduction of write-offs (date-sensitive product)

7. To increase productivity • More accurate production reporting • allows us to assess efficiency of our production lines, track product loss, and make necessary improvements • More accurate labor reporting • in future, employee ID scanning into Handhelds to report labor by employee ID, and properly account for employee crewing changes • Improved productivity and accountability • better productivity and accountability by Warehouse Operators and tracking of their physical and system transactions by use of User IDs on Handhelds using a modified 3.21.14 report

8. To improve accuracy • Increased inventory accuracy by item, quantity for financial purposes (in addition to lot and location) • Fewer physical inventory counts and lower magnitude G/L inventory adjustments • More accurate actual labor hours (reported by department and production line) and labor variances in the future

9. To leverage our MFG/PRO capabilities • Locations • We wanted the ability to add significantly more system locations for a rigorous Cycle Counting program with Pallet position = System Location • Lot tracking and Work Orders • We wanted to use the Work Order Module to efficiently and effectively track Supplier Lots and reflect Issued/ Staged product to a Work Order vs. manual Supplier Lot tracking

10. Why Furlani’s choseEagle’s solution:RF Express™ for MFG/PRO

11. Technical considerations • RF Express™ for MFG/PRO: • Is an online, real-time, PROGRESS-based data collection and bar coding solution • Provides a seamless, plug-and-play integration with MFG/PRO • Enables all Eagle customers to enjoy the benefits of simplified data entry, portable terminals, barcode scanning/labeling, as well as integrated scale weight transactions and the ability to print portable bar code labels • Makes it possible to enable or disable functionality on a site-specific basis.

12. Technical considerations (continued) • RF Express™ for MFG/PRO: • Does not require any side databases or separate server platform (multi-site implementations do not require a separate server for each physical site) • That means there is one less database and/or server to maintain on an ongoing basis • Operates in Linux, NT and UNIX environments • Supports both Progress and Oracle databases • Utilizes real-time record locks that do not require the review of Failure Logs before exporting transactions; RF Express for MFG/PRO calls MFG/PRO’s own subroutines and achieves the same record lock capabilities

13. Technical considerations (continued) • RF Express™ for MFG/PRO: • Supports a wide array of devices, including: • RF handheld networks • IEEE 802.11B/g Direct Sequence • Spread spectrum (2.4 GHz) • Fixed shop floor stations with wands and laser scanners • RFID tags • Fixed RF printers • Portable RF printers • Scales • Industrial ink jet sprayers • Thermal transfer printers • Bumpy bar codes

14. Cost considerations • Less hardware and software are required because RF Express for MFG/PRO uses the existing database and existing server • Reduced database/server ongoing maintenance

15. Industry acceptance and usage • Eagle has provided solutions to the MFG/PRO community since 1992 • Eagle’s solution is currently installed at 800 customers and over 3,000 sites worldwide. • Eagle is used only by QAD MFG/PRO customers, so all of those installations are also QAD MFG/PRO installations. • Eagle’s customer list includes Fortune 500 companies worldwide, in every vertical served by QAD. • That experience means Eagle adds value in addressing vertical-specific requirements including regulatory compliance, automaker certifications, retailer requirements, and more.

16. Customer satisfaction • Eagle consistently achieves “Excellent” customer ratings not only on its product, but on its responsiveness, support and service. • For specific customer comments, visit Eagle’s booth for a copy of “What Our Customers Say”

17. Implementation Nuts and BoltsRF Express™ for MFG/PRO

18. Recalls – finished goods to raw/packaging • For F/G to Dough or Spread and also Components Recall: • i) input the F/G W/O and/or Item Number and review output for W/O Issues ("iss-wo" transaction type) • -> will give Packaging (with Lot numbers) W/O Issues and Dough and Spread (with Lot and Pallet numbers) W/O Issues • ii) go back to the Selection criteria in 3.21.14 and input the Pallet number(s) for the Dough and Spread (which were issued or "iss-wo" to the F/G W/O) and which were displayed in i) previously • -> this will show the Dough or Spread Work Orders and Lots • iii) go back to the Selection criteria in 3.21.14 and input the Dough or Spread W/Os that were displayed in ii) previously • -> this will show the Lots of the Raw Material components that were issued to this Dough or Spread W/O

19. Customized QAD Report - Recalls • xxtrrp01.p a03 3.21.14 * Transactions by Item Report 03/30/05 • Item Number: To: • Effective Date: To: • Date: To: • Order: To: • Site: To: • Sales/Job: To: • Lot: To: • Reference: To: • Transaction Type: • Location: Output: email • Batch ID:

20. Key Process Points –RF Express™ for MFG/PRO

21. Receiving of packaging into inventory

22. Ingredients racks – pallet positions with location bar codes

23. Packaging warehouse with retro-reflective ceiling cards

24. Filling a work order picklist to transfer to the production line

25. Production reporting - finished goods

26. Transfer of finished goods production from the production line to the stretch wrapper

27. Scanning from stretch wrapper to finished goods inventory

28. Finished goods freezer with retro-reflective ceiling cards

29. Filling a sales order pick list to ship a sales order in the freezer

30. Manual Documents no longer needed- RF Express™ for MFG/PRO

31. Manual Documents no longer needed –Spread Room Production (Mixers)

32. Manual Documents no longer needed –Batch Control Sheet (Dough Mixers/Q.A.)

33. Manual Documents no longer needed –Batch Control Sheet (Lead Hands/Q.A.)

34. Manual Documents no longer needed –Product Control Sheet/Tickets (Production)

35. Manual Documents no longer needed –Production by Shift/Line (Lead Hands)

36. Manual Documents no longer needed –Product Control Sheet (Shipping)

37. Manual Documents no longer needed –Shipping Tally Sheet

38. Next steps • Begin reporting actual labor hours in MFG/PRO through RF Express or MFG/PRO • Bar code employee IDs and scan in/out employee crew changes on lines • Accurately account for downtime by employee • Allow the utilization of Shop Floor Efficiency Reports (by Work Center, Work Order, and Employee) in MFG/PRO

39. Rod Rego Dir. of Finance & Special Projects Furlani's Food Corporation 1700 Aimco Blvd. Mississauga L4W 1V1 905-602-6102, x298 905-602-9415 (fax) rodr@furlanis.com www.furlanis.com Contact Information Ray Agrusti Senior Project Manager Eagle Consulting and Development 135 Kinnelon Road Suite 204 Kinnelon, NJ 07405 973-838-5006 973-492-2758 (fax) ragrusti@eaglecondev.com www.eaglecondev.com

40. Questions…