QAD Enterprise Asset Management (EAM) MMUG Midwest Users Group March 16 - 18, 2008 John Woodburn Solution Consultant [email protected].

QAD Enterprise Asset Management (EAM)

MMUG Midwest User’s Group

March 16 - 18, 2008

John Woodburn

Solution Consultant

[email protected]

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Manufacturing Company’s Challenges

Companies are driven to find ways to:

– Increase production output

– Improve product quality

– Reduce cost

Plant Operations are responsible for a company’s most critical assets, its production equipment. Reliable equipment will:

– Maximize production performance

– Minimize scrap / rework

– Lower cost• Costs 4X more to fix broken equipment than

to maintain it

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How QAD EAM Supports Manufacturing

QAD EAM is responsible for the management of the manufacturing assets including;

– The design, construction and commissioning

– Operations and maintenance (preventive and repairs)

– Replacement / upgrade of equipment

Asset Lifecycle Management

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The Solution

QAD Enterprise Asset Management

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QAD EAM for Plant Operations

The QAD EAM suite provides three solutions:

– Project Controls Management

– Plant Maintenance

– MRO Supply Chain

• MRO Inventory

• MRO Purchasing

Plant Operations

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Project Controls Management

Types: Capital, Prototype, Expense, etc

On-Time Delivery

– Properly managed projects bring assets on line quicker

Within Budget

– A manager must have visibility and control of spending against a project

Plant Operations

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Plant Operations

Plant Maintenance

Goal: Maximize manufacturing equipment utilization and minimize repair costs

Equipment breakdowns directly contributes to loss production, missed shipment dates and increased cost

Comprehensive preventive maintenance program and increased positive control of corrective maintenance results in improved equipmentreliability

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Plant Operations

MRO Inventory

Support Production

– By ensuring critical spare parts are on-hand when needed, production downtime can be minimized

Lower MRO Inventory

– A better understanding of critical spare parts requirements will lead to right sizing inventory, minimizing investment

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Plant Operations

MRO Purchasing

Goal: Source critical spare parts from approved suppliers as quickly as possible at the lowest possible cost

Improve Purchasing Efficiency & Control

– Better purchasing control has helped companies reduce spending by

sharing parts between sites and avoiding unnecessary purchases

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Fully Integrated with QAD

Enterprise Application 2007

QAD Enterprise Asset Management

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Master Tables

Cost CenterAccount / Sub-AccountProjectsBudgetsAccounting Calendar

Bill to AddressShip to AddressCurrency / Exchange RatesSuppliersTermsStandard Clauses

ACCOUNTING

PURCHASING

QAD Financials QAD EAM

Master Tables

Cost CenterAccount / Sub-AccountProjectsBudgetsAccounting Calendar

Bill to AddressShip to AddressCurrency / Exchange RatesSuppliersTermsStandard Clauses

ACCOUNTING

PURCHASING

Downloaded / Updated viaAutomatically

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Purchase Requisition

Purchase Order

Purchase Order

PO ReceiptPO Receipt

MRO Inventory

ReceiptsPending Voucher

Unposted GL

Expense

QAD EAM QAD eB2.1

EAM PO’s can be receivedvia EAM or QAD

Unposted GL

Purchasing Integration

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Production Driven Maintenance (PDM)Scheduling Preventive Maintenance Based on Equipment Usage

Table: opt_hist

Work Center = L100Machine = 60

Tool = T50Part = F105Qty = 5,000

Equipment Mapping

MFGPRO EAM L100 + 60 = Press-A T50 = Die-10

UOM Conversion

Part F105 = 2 cycles per 5,000 parts = 10,000 cycles Equipment (Press-A)

Sub-component A

Sub-component B

Tool / Die (Die-10)

EAM Equipment Structure

QAD eB2.1 QAD EAM

Create PM Work Orders

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Getting ResultsQAD Enterprise Asset Management

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Background

Formed in 1995 as joint venture between Monsanto and Akzo Nobel. In 1997, Monsanto spun off its investment in Flexsys to Solutia Inc.

Flexsys is a chemical manufacturing company. Its products help cure and protect the rubber, increase durability and fatigue life, control color and provide heat resistance.

Manufacturing plants in US, Brazil, UK, Belgium, France, Germany, Italy, Malaysia and Japan

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Why Focus on Maintenance

Prior to 2003, Flexsys had been focusing on eliminating waste by adopting “Oliver Wight Class A” standards

Although Flexsys achieved “Class A” certification, production performance remained below Class A levels

– Production output in relation to plant capacity was around 75%

– Class A levels required production output to be in excess of 90%

One of the reasons was poor equipment reliability!

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By the Numbers… Then and Now

20032006

Production Scheduling Efficiency 83% 95%

Overall Equipment Effectiveness (OEE) 80%88%

Maintenance related Down Time 10% - 15% <5%

Reduction in Maintenance Budget 12%

Percentage of Reactionary Repairs 90% 11%

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Product Demo

QAD Enterprise Asset Management