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Speakers• Eric Kapinos• Gregory Quinn
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Agenda
• Customer Success Story: Oberto Sausage Company
• Other Success Stories• Preactor and QAD Relationship• Market Challenges• APS Solution Overview• APS Solution Value• Questions & Answers
About Oberto Brands• Brand names include
– Oberto– Lowrey’s – Pacific Gold– Smokecraft Offer a complete portfolio of meat snack (jerky, sausage sticks etc.),
refrigerated sausage and deli products• Family owned business in operation for over 90 years
– Headquartered in Kent, WA• National distribution in all classes of trade• Distribution by distributors and direct shipment to customer• Growing international business
Why Finite Capacity Scheduling?• Large and diverse product base– Over 400 products– Complex manufacturing processes– Freshness is a concern– Potential for efficiency gains with adequate
scheduling model
• QAD ERP did not offer constrained planning useable in Oberto’s repetitive environment – 5 year experience with QAD concluded Oberto’s
needs exceeded software capability
Why Preactor?• P400 APS offered superior value proposition to
alternatives in QAD space– Richest feature set– Least costly– True finite capacity scheduling
• Superior flexibility– Could evolve the scheduling model as needs change
• No change in Preactor code– Tailor the data used
• Large install base, specifically in food processing• Best schedule visualization• In-depth technical support throughout the Preactor
reseller network• Significant reduction in outside consulting costs
Integration to QAD
• Manufacturing orders and product attributes (e.g. allergens) imported from QAD
• Oberto staff developed their own integration to QAD due to heavily customized install– Internally deployed most Preactor functionality
• Maintain product and resource definitions in Preactor– Resident QAD data does not support the
scheduling goals within Preactor
Results• In operation for over two years– Preceded by a 6 month pilot program
• Schedulers elevated from busy work and data management to “real” production scheduling
• 40% reduced work-in-process– Largely due to the bucketless scheduling in Preactor– Not present in the alternative products
• Upgraded to P500 APS– Use the PBX (Preactor BoM Exploder)
Future Plans for Preactor at Oberto• Implement RCCP model to support S&OP process• Drive Preator models even further into product routings and
bills• Implement real-time shop floor feedback and rescheduling
Case study – Boots Contract Manufacturing (CPG)
High Street Pharmacy making their own products as well as suppliers to other companies.
Cosmetics and Medicines. QAD ERP and Preactor
implemented at 10 sites.
Key Benefits Schedules production taking into
account equipment and labor. Reduced changeover time. Increased Efficiency.
Case study – Vector LLC (Electronics)
Amplifiers and optical nodes for cable and radio networks, telemetry devices as well as a wide range of services like design, implementation, training and maintenance of systems.
400 people. QAD ERP.
Key Benefits Can now generate real and feasible
schedules. Reduced lead times by 50%. On-time delivery performance up from
40% to 80%.
Case study – Hall & Woodhouse (Beverage)
Bottling, canning and contract packing.
Flavoured waters, spirits, spirit mixers, soft drinks, alcopops, beers, and ciders.
Key issues were Changeover Times between pack size, and Cleaning regimes required for vessels.
QAD ERP.
Key Benefits No longer dependent on manual
system. Sequence dependent production
hold-ups highlighted. Deals with shelf-life issues.
• Make to specification of container glass moulding machines, moulds, packaging lines, bench-top hydraulic presses, stirrers for molten glass, annealing ovens, cold-end handling and inspection systems, and mould pre-heat chamber ovens.
• Complex manufacturing and assembly across multiple shops or departments.
• QAD Enterprise Applications ERP system.
Case study – Sklostroj Turnov (Discrete Manufacturing)
Benefits Planning time cut from days to minutes. Can see the scheduled completion time of
assemblies and entire order.
• Manufacture various grades of science grade papers and slit to customers requirements.
• Existing planning software could not provide the detail required to manage the plant and staff requirements in the short and long term.
• QAD ERP.
Case study – Whatman International
Benefits Improved customer service. More efficient production. Can now plan months ahead.
Preactor International and QAD
• Preactor has been used by QAD ERP users for many years.• More than 100 companies around the world.• Preactor is a QAD Solution Partner.
• QAD has two options planning and scheduling -– Traditional MRP– QPS
• Preactor for QAD is used for more complex scheduling applications - – Complex constraints.– Sequence dependent changeover times.– Optimization rules.– Links together dependent orders based on Bill of Materials.
QAD Planning and Scheduling Options
Supplier Challenges• Global competition is forcing companies to re-assess their
position in the market.
• There is pressure to compete on agility, quick turn round and on-time delivery.
• But also to reduce costs and lower inventory levels.
• These pressures lead to smaller batch sizes - ‘sequencing’ becomes increasingly important.
• And then to synchronize variable demand with materials flow and capacity.
Demand Driven Manufacturing• Recommended by many experts and analysts in the manufacturing sector
as the way forward for many companies -– Move away from large batch (Economic Batch Quantity, EBQ) make
to stock.– Move towards small batch make to order.
• The goals are to -– increase On-Time Delivery (OTD), – reduce stock, (Finished Goods Inventory, FGI)– reduce throughput time (Lead Time).
• Recent world-wide survey done by Aberdeen Group analysed how well companies are performing in each of these goals.
Definition of Class
Mean Class Performance
Best-in-Class: Top 20% of aggregate performance score
97% On Time Delivery (OTD) 4 Days Finished Goods Inventory (FGI) 9 Days Lead Time
Industry Average:
Middle 50% of aggregate performance scorer
87% On Time Delivery (OTD) 14 Days Finished Goods Inventory (FGI) 33 Days Lead Time
Laggard: Bottom 30% of aggregate performance score
75% On Time Delivery (OTD) 32 Days Finished Goods Inventory (FGI) 75 Days Lead Time
Defining Best-in-Class Performance
Source: Aberdeen Group
Best in Class Manufacturers Combine IT Packages
57%
25%
95%95%
50%60%
0%
25%
50%
75%
100%
ERP & APS MES &APS
Industry Average LaggardBest-in-Class
Source: Aberdeen Group
• Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term periods. Characterized by:– Software using advanced mathematics or logic– Optimization or simulation– Consider a range of constraints and business rules to provide real-time planning
and scheduling, decision support, ATP and CTP– Generate and evaluate multiple scenarios
Excerpted from APICS Dictionary 12th Edition(2008)
What is APS?
Planning• What to make• When to make it• How much to make• Where to make it• Materials Required• Resources Required
Scheduling• How best to make it
– Execute against plan
• Sequencing• Synchronization• Priorities, constraints and
conflicts• Monitoring execution• Managing change
How Much or How Best?
• Planning systems are ‘bucketed’ (monthly, weekly, daily) and cannot preserve operational sequences within the time bucket.
• True scheduling systems are bucketless, preserving sequencing and capable of producing work-to or dispatch lists for each resource.
How do you recognize the difference?
• Planning systems do not provide the ability to model complex constraints of a real system.
• Planning systems do not give you real time control over individual resources and individual orders.
• True scheduling systems do provide real-time control at shop floor level with models that reflect the real operating constraints.
Why should I worry?
LESS FIRE-FIGHTING !!LESS FIRE-FIGHTING !!
How will APS Help?
Operations are planned only when resources are available.
Materials are ordered for delivery when operations can start.
Provides visibility - deliveries can be predicted with more confidence.
• Proven decision support tool for detailed sequencing.• Takes the orders with associated operation steps that require one
or more (finite) resources to be carried out.• Resources defined such as machines, process lines, operators,
tools, tanks, etc.• Sequences the operations to produce a ‘good’, achievable schedule
and generates work-to lists for each resource.• Provides a ‘what if?’ environment for the planner to ‘see’ the
impact of the options before decisions are made.
Preactor for QAD is APS
Preactor for QAD - Overview• This provides the planner with a
complete picture of -– Demand.– Capacity.– Resource usage.– Operation sequence.– Expected completion time for each
operation in a Gantt chart. • The planner can drag and drop
operations, change priorities and manipulate the schedule in whichever way needed to meet business objectives.
• Then see the impact on all orders before committing changes back to QAD.
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Preactor for QAD - Overview• Forward, Backward or Bi-directional
loading of operations onto resources.• Additional Optimization rules to
introduce preferred sequencing, minimizing changeovers, campaigning etc
• Multiple constraints for each operational step such as machines, staff, tools, tanks, processing lines etc
• Rule based pegging of dependent orders which can be purchase orders, sales orders and manufacturing orders
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Preactor for QAD - Overview
• Drag and Drop interaction with the schedule through the interactive Gantt Chart
• Ad-hoc capable to promise• Shift Pattern templates, breakdowns,
overtime etc• Schedule Analysis tools to compare
alternative schedules
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Preactor for QAD - Overview• Provides QAD’s materials planning system
(MRP) and customer service available to promise with an accurate and obtainable production schedule.
• Procurement is then tasked with supporting the production plan by committing to the existing purchase orders found in QAD and considered by the Preactor planning system and generating any new purchase required by the updated production plan.
• Customer Service is also given the ability to sell product based on a realistic and obtainable production plan visible through standard QAD master schedule reports.
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Preactor for QAD Solution
• Includes – Preactor 400 APS Master Scheduling System.– Integration piece for connection to QAD Enterprise
Applications® Standard Edition (SE) and Enterprise Edition (EE).
• Integration will also work with eB, eB2, eB2.1 and for earlier versions of MFG/PRO® as well.
International Support• Preactor for QAD is available worldwide
through accredited system implementers.• Available to provide customization, training and
go live support services.• Local language.
• Interactive decision support tool for companies to become leaner and more agile.
• Quantitative benefits – based on more than 150 documented case studies:-– Reduce raw material inventory by 50%– Increase productivity by 25%– Reduce work-in-process by 50%– Improve delivery performance by 80%– Reduce scheduling overhead by 80%
• Works well in discrete, process, hybrid and repetitive environments.
Opportunities with Preactor for QAD
Key Differentiators of Preactor for QAD
• Best-in-Breed solution – more than 2,500 companies use Preactor located in 65 countries.
• Proven in almost every sector of manufacturing.
• Built-in integration to QAD EA providing two way data flow for close synchronization.
• Can cope with even the most complex of planning and scheduling application.
• Local resellers available worldwide for implementation and support.
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For More Information North America
Greg Quinn 814.880.1642 [email protected]
EMEA Valerie Goulevitch +33 6 1322 5136 [email protected]
Elsewhere Mike Novels +44 1249 650316 [email protected]
