QAD Enterprise Asset Management (EAM)

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QAD Enterprise Asset Management (EAM)

MMUG Midwest User’s Group

March 16
-

18, 2008

John Woodburn

Solution Consultant

xjw@qad.com


QAD Proprietary

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

QAD Proprietary

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

QAD Proprietary


The Solution

QAD Enterprise Asset Management

QAD Proprietary

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

QAD Proprietary

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

QAD Proprietary

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 equipment

reliability

QAD Proprietary

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


QAD Proprietary

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

QAD Proprietary


Fully Integrated with QAD
Enterprise Application 2007


QAD Enterprise Asset Management

QAD Proprietary

Master Tables


Cost Center

Account / Sub
-
Account

Projects

Budgets

Accounting Calendar



Bill to Address

Ship to Address

Currency / Exchange
Rates

Suppliers

Terms

Standard Clauses


A

C

C

O

U

N

T

I

N

G


P

U

R

C

H

A

S

I

N

G

QAD Financials

QAD EAM

Master Tables


Cost Center

Account / Sub
-
Account

Projects

Budgets

Accounting Calendar



Bill to Address

Ship to Address

Currency / Exchange
Rates

Suppliers

Terms

Standard Clauses


A

C

C

O

U

N

T

I

N

G


P

U

R

C

H

A

S

I

N

G

Downloaded /

Updated via

Automatically


QAD Proprietary

Purchase

Requisition

Purchase

Order

Purchase

Order

PO Receipt

PO Receipt

MRO

Inventory

Receipts

Pending Voucher

Unposted GL

Expense

QAD EAM

QAD eB2.1

EAM PO’s can be received

via EAM or QAD

Unposted GL

Purchasing Integration

QAD Proprietary

Production Driven Maintenance (PDM)

Scheduling Preventive Maintenance Based on Equipment Usage

Table: opt_hist

Work Center = L100

Machine = 60

Tool = T50

Part = F105

Qty = 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

QAD Proprietary


Getting Results

QAD Enterprise Asset Management

QAD Proprietary

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


QAD Proprietary

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
!

QAD Proprietary

By the Numbers… Then and Now








2003


2006

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%

QAD Proprietary


Product Demo

QAD Enterprise Asset Management