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Next Edition for Manufacturing & Supply Chain Enhancing Core Product for Batch-Process Industry

Next Edition for Manufacturing & Supply Chain Enhancing Core Product for Batch-Process Industry. SoCal + Bay Area User Groups Robin Ward Vita Tech Bengt Johansson QAD Supply Chain & Manufacturing March, 2009. Building for. You. Building for You. Minor Releases

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Next Edition for Manufacturing & Supply Chain Enhancing Core Product for Batch-Process Industry

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  1. Next Edition for Manufacturing & Supply ChainEnhancing Core Product for Batch-Process Industry SoCal + Bay Area User Groups Robin Ward Vita Tech Bengt Johansson QAD Supply Chain & Manufacturing March, 2009

  2. Building for You

  3. Building for You • Minor Releases • QAD 2009 / 2009.1 / 2010 / 2010.1 • Standard Edition • Enterprise Edition • New versions complementary products • Next Major Release • Codename “Deming” after William Edwards Deming • Only Enterprise Edition • Planned for 2011

  4. Deming Release • Named after W. Edwards Deming • Deming made a significant contribution to Japan's later renown for innovative high-quality products and its economic power • Planned for 2011 • Based on Enterprise Edition • Main themes: • The Perfect Lean Market • Further increase the functional depth of QAD Manufacturing • Improvements related to the Process Industry • Developed in close cooperation with customers

  5. It is all for You

  6. Deming Manufacturing Enhancement Areas • Perfect Lean Market • Expansion of Lean Capabilities • Extending the Value Stream Model • Total Quality Management in Supply Chain • Convergence/Reconciliation/Standardization of Manufacturing solutions • Combining strengths of various solution into one elegant Manufacturing framework • Enhance the Manufacturing User Experience • Simplified Implementation • Streamline Operations • Decision Support / Role-Based Workbenches • Improved Visibility • Process Industry Extensions • Pharmaceutical/Biotech • Food and Beverage • Chemical

  7. Perfect Lean Market - Manufacturing Enhancements • MPS Calculation • QPS Master Schedule Workbench • QPS Production Schedule Workbench • Manufacturing Execution – Mixed Mode • And much more….

  8. Master Scheduling Calculation • Automatic Master Scheduling Calculation • Build an 80% accurate MPS • Balance Supply / Demand • Spread over Production Lines • Order Smoothing • Line leveling • Configurable Rules

  9. QPS Workbenches • QPS Master Scheduling Workbench • QPS Production Scheduling Workbench • Component Availability Check • QPS will be the only tool for production scheduling

  10. Master Scheduling Workbench Capacity / Load Production Plan Supply / Demand More Item, Order, Demand info

  11. Manufacturing Execution - Mixed Mode • Basis for MAJOR restructuring of manufacturing • Eliminate as many differences as possible between WO and Repetitive • WO on Production Line • Repetitive picklists on WO • WO Issue on Repetitive • Common Shopfloor Reporting, Backflushing • Repetitive CUM-order for WO • Kanban integrated with Repetitive • More Flexibility • Greater Control • Easier to use and implement • Lean Principles

  12. Enhancements for Process Manufacturers

  13. Listening to You

  14. Commitment to Innovation QAD Strategic Steering Committee QADCustomers QAD Product Review Committee IndustryStandards VerticalMarket AnalystsResearch Industry Roadmap ProductRoadmap Product Definition CompetitiveAnalysis INSIGHT™ CustomerRequests QAD Field Feedback QAD SupportFeedback QADPRC CustomerAdvisory Groups Development Groups Technical Foundation Collaborative Development

  15. Listening to You QAD has been researching Customer Requests coming from visits and Enhancement Requests reported to us More then 20 QAD Customers / Partners have been participating in defining and prioritizing which key features process manufacturers need to be competitive today and in the future Based on this feedback project started to increase functional depth of QAD Supply Chain & Manufacturing capabilities

  16. Process Manufacturing Advisory Board Initial Involvement: Met April 2008 at QAD Headquarters (10 companies) QAD Identified Business Requirements Team Prioritized Deliverables QAD Created Timeline Ongoing Conference Calls: Periodic Conference Calls Explorer Meetings

  17. Process... the Final Frontier. These are the voyages of the star(ship) of Enterprise Resource Planning (QAD). Its five-year mission (hopefully less): to explore strange new worlds (verticals), to seek out new life (functionality) and new civilizations (customers), to boldly go where no man has gone before.

  18. Process Manufacturing Industries • Pharmaceutical & Biotechnology • Processed Food & Beverages • Chemical Products Industry • Consumer Packaged Goods (Personal Care, Tobacco etc.) • Other Industrials (Metal, Paper, Recycling,...)

  19. Main Characteristics • Variable & Unstable Material Characteristics • Amorphous materials • Quality Control & Quality Assurance • Highly Regulated Industry • Formulas or recipes • Batch Manufacturing • Complex Manufacturing • Packaging, Labeling, Picking, Shipments, Transportation – “CPG”

  20. Variability – AI - Potency & Batch Balancing • Potency/ Purity / Strength / Concentration Level/ Assay% • Formula Definition • Formula Adjustments / Batch Balancing Aspirin (Acetylsalicylic acid) -A: Salicylic Acid -E: Sodium -E: Acetyl Chloride Spiraea Ulmaria

  21. Instability – Shelf Life-Based Attributes • Date Driven Characteristics • Quality • Health & Safety • Planning • Logistics

  22. “Stuff” not “Things” – Multiple UOM • Alternate UOM • Dual UOM (Catch Weight)

  23. Quality – Lot Classifications, Lot Measurement, Lot Reference • Extended Attributes • Grade, Color, Grain Size,… • pH, Moisture Content, Hardness,… • Origin of Goods (Supplier, Country of Origin, Allergen, Chemical Content … • Include in processing & validations

  24. Quality - Lot Track & Tracing • Item & lot attributes • Lot Track & Trace • Lot Control • Returns & Recalls

  25. Raw Materials Bulk Product Mixing/ Blending Batch/Process Manufacturing • Recipe-based Production • Attribute-based Production • Retrieval WO Productivity Data

  26. Complex Process Manufacturing • Mixed-Mode Manufacturing • WO Stream – Linked multi-stages • Co-By-Products & Recycled Goods • Flexible Packaging Alternatives • Rule-based Formulas/Processes • Capacity & availability Tanks & Vessels • Quality Assurance/Compliancy Regulations

  27. Consumer Goods – Packaging, Picking & Shipment • Packaging • Packaging BOM • Plan & Schedule Packaging • Packaging and Labeling • Extended attribute-based Picking & Shipping logic

  28. Product Development Plan • PHASE 1 • Potency & Batch Balancing • Alternate UOM in Supply Chain • Recipe-Based Formulas & WO’s • WO for Batch-Process Mfg • Backward & Forward Lot Traceability • PHASE 3 • Shelf Life Mgmt & Planning • Enhancements PCC, QM • Enhancements Co/By-Products • Packing, Picking & Shipment • Integration with MES, LIMS, QMS (Foundations Team) • Recall & Returns (TBD with Customer Management-SSM) • PHASE 2 • Dual UOM in Supply Chain • Catch Weight (Sell/Ship/Invoice) • Enhanced Manufacturing Improvements • Supplier Qualification & Origin of Goods • Lot Classifications & Planning/WO Execution • Configurable/User-definable Attributes • PHASE 4 • Early Adopter/ • Go-to-Market Preparations March 2009 September2009 March 2010 September 2010

  29. Working together with You

  30. Focused Work Groups • 3 Focus Groups until end-of-2008 • Potency & Batch Balancing • Batch Manufacturing (Improving WO Execution) • Lot Traceability (Forward/Backward Lot Traceability) • Objectives • To fully understand specific requirements, current practices, business scenarios & gaps • To help define Use-/Test-cases and set-up test environments • To agree on conceptual solution design • To help during development process & assist with testing software • Current Activities • Fully understand impact all business requirements in scope of focused group • Work out Business & Test Scenarios • Define & agree on conceptual solution designs Ensure Market Acceptance & Accelerate Product Development

  31. Current Activities with Work Groups • Work Group 1.1 Potency & Batch Balancing • Work Group 1.2 Enhancements in Formulas & Work Orders • Work Group 1.3 Improved Lot Traceability Capabilities

  32. Item, Item-Site Maintenance Extended Attributes Enabled Target Potency Potency Tolerance Potency Enforcement Customer Item, Supplier Item Maintenance Target Potency Potency Tolerance Potency Enforcement Unit of Measure Master table Rounding factor Improved UM Maintenacemfg Formula Maintenance Specific Target Potency values Potency Tolerance Potency Enforcement Component Type, Active, Excipient, Standard WG1.1 - Potency & Master Data

  33. Master Data - Items

  34. Unit of Measure

  35. Master Data - Formula

  36. WG1.1 - Potency & Material Management • Inventory • Lot Potency • Effective Quantity vs. Physical Quantity • Planning and Costing in Effective Quantities • Inventory movement in Physical Quantities • Inventory Potency Adjustment • New Transaction • PO Potency aware • Target potency • PO Receipt • Potency enforcement • Physical Quantity + Potency

  37. Purchase Orders Receipts

  38. WG1.1 – Potency & WO Batch Balancing • Potency - Planning (MRP), Inventory Valuation • Effective Quantities • Inventory transaction in Physical Quantities • Work Order Batch Balancing • Potency enforcement at allocation • Single and Multiple Active Ingredients • Auto Batch Balancing / WO BOM Adjustments at Work Order Release • Manual Batch Balancing on demand • Before Release • After Release

  39. Formula • Batch Total = 1000 Kg • Active Total = 180 Kg @ 80% • Excipient Total = 175 Kg Ratio: 0.2 | 0.686 | 0.114

  40. Planned Work Order BOM • Batch Total = 3000 Kg • Active Total = 540 Kg @ 80% (= 675 Kg Physical) • Excipient Total = 525 Kg Ratio: 0.2 | 0.686 | 0.114

  41. Work Order BOM after Batch Balancing • Batch Total = 3000 Kg • Active Total = 540 Kg @ 85% (= 635.59 Kg Physical) • Excipient Total = 564.71 Kg Ratio: 0.2 | 0.686 | 0.114 • Delta = 39.71 Kg less Phys Qty Active / More in Excipients

  42. WG1.2 - Enhancements in Formulas & Work Orders • Formulas • Scalable/Non-Scalable Component • Alternate UM for components • Recipe-style Process/Formula Definitions • Work Orders • Recipe-style Work Order Instructions • What-If Analysis • Capturing Data in Alternate UM during WO Component Issue / Allocations • Enabling Potency & Batch Balancing in al WO Functions • Manual WO Component Allocation • New Transaction, Similar to SO Manual Allocation • WO Productivity Reports • WO Variance Reports to analyze Productivity, Utilization & Yield • WO BOM “snap-shot” for auditing and “As-Planned” vs “As-Built” analysis

  43. WO Manual Allocations

  44. WO Detail Browse

  45. WG1.3 – Lot Trace Enhancements • Improve tools for Lot Trace Analysis • Backward Lot Traceability • Forward Lot Traceability • Objective • To better fulfill Regulatory Compliancy • Decrease time spent in “recall management” • Improve operational excellence

  46. Phase 1 Project Deliveries • Potency & Batch Balancing • Formula & WO Process Improvements • Enhanced Lot Traceability Capabilities

  47. Benefits • Opportunity to have a voice in your industry’s ERP functionality. • Educational Experience! • Good Opportunity to Network! • It’s fun!

  48. Next planned activities Work Groups • WG 2.1 – Extended Attributes • WG 2.2 – Dual UOM • WG 2.3 – Quality • WG 2.4 –Next Edition Manufacturing

  49. Conclusions • QAD invests to enhance its products for Process Manufacturers • QAD builds together with YOU • We will be ready in March 2011

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