Engage to Empower: A QAD Strategy for

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Nov 18, 2013 (3 years and 11 months ago)

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Engage to Empower: A QAD Strategy for
Reducing Enterprise Costs


QAD EAM (Enterprise Asset Management)


Steve Pitsos,

Director, EAM Product Management

QAD Proprietary

Engage to Empower

Manufacturing Company’s Challenges


Companies are driven to find ways to:


Increase production output


Improve product quality


Reduce cost


Plant Operations

is 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 repair broken equipment than to
maintain it

QAD Proprietary

Engage to Empower

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)


Capital replacement / upgrade of equipment

Asset Lifecycle Management


Cost Analysis / Capital Forecasting


Maximum Utilization at Lowest Cost


Uptime Analysis / Breakdowns


Failure Analysis / Production Impact

Goal of Asset Lifecycle Management

QAD Proprietary

Engage to Empower

Extending the Value of Your QAD Investment


Most companies simply ‘check
-
the
-
box’ if they
have a CMMS/EAM solution in
-
house


The tool satisfies a compliance requirement


Sarbanes
-
Oxley (Finance & Accounting Controls)


CFR 21 Part 11 (Life Sciences)


TS (Automotive)


Customer Tooling (demonstrated care of their
assets through audits)


ISO (customer driven PM program)


OSHA (Risk Management)

QAD Proprietary

Engage to Empower

Extending the Value of Your QAD Investment


Does your company have an EAM strategy?


If production asset
reliability

and
availability

is vital to your
business, you need an asset care strategy!


350,000 manufacturing facilities in the US


MRO spend in the United States is nearly $150B


40% of this is reactive and unplanned (if a company is reactive,
so will your spend be)


If sustainability is vital and important to your business, you need an
asset care strategy!


Commercial energy cost is nearly $400B


38% Manufacturing / 32% Transportation / 30% Buildings



The success of an asset
-
intensive company, and ultimately the bottom line, is dependent
on the effectiveness of it’s maintenance strategy. KnowledgeStorm


Sept 2007

QAD Proprietary

Engage to Empower

Extending the Value of Your QAD Investment


Leading companies are implementing EAM strategies for:


Implementing Production Asset Reliability as a
competitive
advantage


Comprehensive alignment and management of MRO inventories
across the enterprise


Reduction in MRO spending across the enterprise to
improve cash
flow and bottom line performance


Introduction of
sustainability

into the manufacturing process to:


drive energy costs down


reduce carbon emissions


replace hazardous production chemicals with ‘green’ chemicals

It’s an Attitude: “Asset Care” versus “Asset Repair”

QAD Proprietary

Engage to Empower

How We Do It

Plant Operations

How do you do it now?

QAD Proprietary

Engage to Empower

8

Business Challenges

The current economic downturn requires asset intensive industries to
get the maximum value out of the company’s existing assets.




Aberdeen Group, November 2008

QAD Proprietary

Engage to Empower

Business Challenges


Project Controls (Accounting)


No visibility to what projects will actually costs verses budget


Reports are maintained through spreadsheets, which are labor intensive,
time
-
consuming, out
-
of
-
date and inaccurate


Inability to control spending


Plant Maintenance


90% of maintenance activities are fixing broken equipment


Repair maintenance cost 4X more than planned maintenance


Only 50% Overall Equipment Effectiveness (OEE)


MRO


30% of MRO inventory is obsolete


25% of purchases are incorrect or unnecessary


Expensive spare parts cannot be shared between plants

QAD Proprietary

Engage to Empower

QAD Solution
-

EAM


Project Controls (Accounting)


Budget spending control


Project work breakdown structure


Tracks internal and external expenditures


Production Assets and Facility Maintenance


Schedules preventive and predictive maintenance


Tracks internal and external costs associated with repairs


Integrates production into the maintenance process


MRO


Electronic requisitions workflow tied to department budget


Automatic stock replenishment based on stocking levels and demand


Track slow moving and obsolete inventory

QAD Proprietary

Engage to Empower

QAD EAM & QAD
ERP Compared

Enterprise Asset Management

QAD Proprietary

Engage to Empower

ERP Manufacturing Components

Machine & Labor

Scheduling

Production

Work Order

Production

Planning

Bill
-
of
-
Material

Planning

Bill
-
of
-
materials

Operator Instructions

MRP / Material

Releases

Finished

Goods

Cost tracked

to:

Components

Finish Goods

COGS

QAD Proprietary

Engage to Empower

EAM Maintenance & Tooling Components

Maintenance/
Tooling

Work Order

Maintenance

Planning

Bill
-
of
-
Material

Planning

Machine & Labor

Scheduling

Bill
-
of
-
materials

Operator Instructions

Stock

Replenishment

Work Order
Complete /

Release to

Production

Cost tracked

To:

Asset or Tool

for Lifecycle

Analysis

QAD Proprietary

Engage to Empower

EAM Seeks Granular Visibility

Maintenance, Engineering & Tooling Performance

Capital Project Budget Against Spend Performance

Leveraged Purchasing Performance

QAD Proprietary

Engage to Empower

Value & Benefits

Enterprise Asset Management

QAD Proprietary

Engage to Empower

EAM Value & Benefits to Your Company


Value:
Consistent equipment reliability and streamlined
operations processes ensure production can meet sales
requirements at all times.


Benefits:


Increase revenues


Capital Projects
: Well
-
run projects come in on time
and on budget, so revenue objectives can be met


Plant Maintenance
: Reduced equipment downtime
increases production yield

QAD Proprietary

Engage to Empower

EAM Value & Benefits to Your Company


Benefits:


Improve margins


Plant Maintenance
: Efficient equipment reduces
scrap and rework lowering the cost of goods sold


Lower Costs


Plant Maintenance
: Improved maintenance
planning results in lower repair costs and longer
equipment life


MRO Inventory & Purchasing
: Well
-
managed MRO
supply chain means purchasing
-
related costs
decrease & inventory levels are right
-
sized


QAD Proprietary

Engage to Empower

QAD EAM .Net
Product

Enterprise Asset Management

The Next Frontier:

March 2009 Early Adopter Release (v12)

QAD Proprietary

Engage to Empower

Solution Review: QAD EAM

Integrating Project
Engineering, Plant
Maintenance and
MRO into single
solution

QAD Proprietary

Engage to Empower

Solution Review: QAD EAM

Scheduling PM’s
based on actual
production results
in more reliable
equipment

EAM reports on
the effectiveness
of each PM

QAD Proprietary

Engage to Empower

Solution Review: QAD EAM

Reduce inventory
through EAM’s
consignment
capabilities


Track inventory stock outs


Identify and eliminate slow moving
inventory


QAD Proprietary

Engage to Empower

Solution Review: QAD EAM


Control spending through
electronic approval


Visibility into current budget data


Approval via PDA

QAD Proprietary

Engage to Empower

Conclusion & Final
Thoughts

Enterprise Asset Management

QAD Proprietary

Engage to Empower

Conclusion and Final Thoughts


Review your company’s Asset Reliability Strategy and set a new course for
cost reduction and asset performance improvement initiatives


Maintenance & Tooling


MRO / Indirect Purchasing


MRO / Indirect Inventory


Project Accounting (CapEx and OpEx)



Align ERP and EAM initiatives with a common focus on production
operations


Make asset reliability a factor in production planning, scheduling, and execution


Development common communication channels between production,
maintenance & engineering departments


Leverage standardization of maintenance practices, inventory management and
purchasing

QAD Proprietary

Engage to Empower

Conclusion and Final Thoughts


Your Mission & Challenge: ‘Asset Care’ versus ‘Asset Repair’ Strategy


It a Choice! Are you in the business of caring for your production assets or simply
repairing your assets when they fail?


Empower yourself to take the next important steps in developing an EAM strategy
within your organization as a competitive advantage


Empower your organization to execute with success!



In Your Role, you are the Commander of your company ship!


During revenue growth periods, an EAM tool is a weapon for increasing capacity
and gross profit margins


During business downturn periods, an EAM solution is a weapon for cost
containment, managing & controlling spend & improving operating cash flow


QAD Proprietary

Engage to Empower

Questions

Enterprise Asset Management


Steve Pitsos, Director


QAD EAM Product Management


Email: zsp@qad.com


Phone: 678
-
463
-
0759