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QAD KPI Framework

KPI Framework Document


Version J, March 4, 2012

QAD KPI Framework

QAD Key Performance Indicators (KPIs)

QAD KPI Framework

Customer Service - KPI


Description
- Customer Service is a compound measure of Sales,
Delivery and After Sale performance

Key Metrics
-

Delivery Performance in Full by Order/Line


Transportation Efficiency
Stockouts
Forecast Accuracy
Inventory Accuracy
Service Request Resolution Time

QAD KPI Framework

Customer Service
Metrics

Best Practices

Related Modules

In Full And On Time By Order

Sales & Operations Planning

QAD Customer Management

In Full And On Time By Line

Postponement

QAD Warehousing

Backorders

Consignment Inventory

QAD Demand Management

Stockouts

Forecasting Techniques

QAD Transportation

Forecast Accuracy

Shipment Track and Trace

QAD Service / Support

Order Cycle Time

Spares Management

QAD Field Service Scheduler

Inventory Accuracy

Electronic Orders

QAD Configurator

Order Costs

Bar-coding / RF

QAD Enterprise Operations

Unreimbursed Freight

Wave Picking

QAD Trade Management

Transportation Efficiency

Available to Promise

QAD Customer Self Service

Service Request Resolution Time

Container Management

QAD EDI eCommerce

Pricing, Discounts and Rebates

Data Collection

QAD KPI Framework

Supplier Performance - KPI


Description
- Supplier Performance is an indicator that evaluates
performance of suppliers, usually against a set of
metrics that cover areas such as: the relative cost of
products, quality of products against agreed
specifications, engineering, and purchasing, based on
an agreed set of measurements to drive continuous
improvement in value and operations.

Key Metrics
- Delivery Schedule Adherence
- Supplier Quality
- Purchase Price Variance
5

QAD KPI Framework

Supplier Performance
Metrics

Best Practices

Related Modules

Supplier Delivery Performance

Subcontracting

QAD Supply Chain

Procurement Cost per Order

Carrier Agreements

QAD EDI eCommerce

Supplier Quality Performance

Container Management

QAD Enterprise Asset Mgmt

Formal Disputes

Vendor Managed Inventory

QAD Transportation

Purchase Price Variance

Bar Coding / RF

QAD Supply Chain Portal

Standard Costing

Data Collection

Global Sourcing
MMOG/LE
Consignment Inventory
Supplier Communication

QAD KPI Framework

Manufacturing Efficiency - KPI


Description
- Manufacturing Efficiency is a measurement (usually
expressed as a percentage) of the actual output to the
standard output expected.
- Efficiency measures how well something is performing
relative to existing standards.
- In contrast, productivity measures output relative to a
specific input (e.g., tons/labor hour).

Key Metrics
-

Throughput Ratio
Capacity Utilization
Scrap & Yield Ratio
Warranty and Return Costs
7

QAD KPI Framework

Manufacturing Efficiency
Metrics

Best Practices

Related Modules

Throughput Ratio

Lean Manufacturing

QAD Manufacturing

Capacity Utilization

Tooling Management

QAD Warehousing

Scrap

Preventative Maintenance

QAD Alerts

Yield

Bar Coding / RF

QAD Enterprise Asset Mgmt

Warranty Cost

Manufacturing Bill of Material

QAD Supply Chain Portal

Master Data Accuracy

Rapid Changeovers

QAD Lean Manufacturing

Manufacturing Cost Ratio

MRO Management

QAD MSW / PSW

Overall Equipment Effectiveness

Lead Time Reduction

Data Collection

Subcontracting
MMOG/LE

QAD KPI Framework

Manufacturing Schedule - KPI


Description
- Manufacturing Schedule is a measure of the accuracy
of a manufacturing schedule against requirements
(i.e., how well you are scheduling to build the right
thing at the right time in the right quantity).

Key Metrics
- Schedule Achievement
- Component Availability
- Manufacturing Cost Variance

QAD KPI Framework

Manufacturing Schedule
Metrics

Best Practices

Related Modules

Schedule Achievement

Sales & Operations Planning

QAD Manufacturing

Component Availability

Subcontracting

QAD Enterprise Asset Mgmt

Requirements Plan Accuracy

Net Change MRP

QAD Supply Chain Portal

Production Plan Accuracy

Engineering Change Mgmt

QAD Lean Manufacturing

Manufacturing Cost Variance

Lean Manufacturing

QAD MSW / PSW

Unplanned Maintenance

Preventative Maintenance
Integrated Maintenance Schedule

Tooling Management
Vendor Managed Inventory

10

QAD KPI Framework

Supply Chain Effectiveness - KPI


Description
- Supply Chain Effectiveness is a measurement of how
well all elements (products & services) of the supply
chainfrom raw materials to end-customersare
performing against the expectations set or existing
standards (if available).

Key Metrics
-

Time to Market
Procurement Cost
Delivery Efficiency
Transportation Efficiency
11

QAD KPI Framework

Supply Chain Effectiveness


Metrics

Best Practices

Related Modules

Time to Market

Sales & Operations Planning

QAD Supply Chain

Warehouse Efficiency

Forecasting Techniques

QAD Supply Chain Portal

Transportation Efficiency

Lead Time Reduction

QAD Transportation

Procurement Cost Per Order

Carrier Agreements

QAD Warehousing

Supplier Communication

QAD Alerts

Shipment Track and Trace

QAD EDI eCommerce

Global Sourcing

QAD Quality Management

Consignment Inventory

QAD Distribution Rqmts Plan

Container Management
Subcontracting
Vendor Managed Inventory
MMOG/LE

12

QAD KPI Framework

Inventory Effectiveness - KPI


Description
- Inventory Effectiveness measures the process of having
the right part at the right place at the right time, with
minimal investment that meets the customer requirements.
- Inventory is influenced by lead times, variability of supply,
variability of demand, product complexity, service level
agreements, product substitution, obsolescence and life
cycles, material costs, carrying costs, investment
strategies, cost of money, warehousing space and logistics
(locations, distances, transportation methods).

Key Metrics
- Inventory Turns
- Stockouts
- Inventory Accuracy
13

QAD KPI Framework

Inventory Effectiveness
Metrics

Best Practices

Related Modules

Expedited Orders

Sales & Operations Planning

QAD Manufacturing

Inventory Turns

Forecasting Techniques

QAD Warehousing

Inventory Accuracy

Cycle Counting

QAD Supply Chain Portal

Safety Stock

Dynamic Location Assignment

QAD Demand Management

Stockouts

Wave Picking

QAD Distribution Rqmts Plan

Obsolete Inventory

Container Management

QAD Enterprise Asset Mgmt

Bar Coding / RF

Data Collection

Lean Manufacturing
MRO Management
Postponement
Spares Management
Vendor Managed Inventory

14

QAD KPI Framework

Asset Utilization - KPI


Description
- Asset Utilization is a measure of actual use of fixed assets
divided by the available use of fixed assets. Fixed Assets enable
direct product development, transformation, and delivery of a
companys products or services, as well as indirect support, and,
typically, have greater than one year of service life.
- The supporting processes and best practices ensure availability
of the fixed assets, optimized usage of the fixed assets,
minimized costs, and maximized service life.
- It is implicit and assumed that the output of the fixed asset is
required (there is demand), timely (meets requirements), and of
acceptable quality.

Key Metrics
-

Production Yield
Overall Equipment Effectiveness
Unplanned Downtime
Maintenance Spend
15

eld and

QAD KPI Framework

Asset Utilization
Metrics

Best Practices

Production Yield

Rapid Changeovers

Overall Equipment Effectiveness

MRO Management

Unplanned Downtime

Preventative Maintenance

Planned Downtime

Mean Time Between Failures Tracking

Maintenance Spend

Integrated Maintenance Schedule

Maintenance Cost / Asset Value

Tooling Management

Related Modules
QAD Enterprise Asset Mgmt

Maintenance Outsourcing

16

QAD KPI Framework

Financial Compliance - KPI


Description
- The goal of Financial Compliance is to ensure that all accounting
transactions are treated in accordance to Generally Accepted Accounting
Practices (GAAP) prevailing for the relevant country, and that all
transactions are recorded accurately and can be audited.
- Additionally, Financial Compliance addresses controls and separation of
duty in pursuit of the aforementioned, to ensure only authorized personnel
can perform actions and, that where it would be improper, they are
prohibited from doing so (e.g. avoiding the ability of an employee to both set
up vendors and make payments to vendors).
- For QAD, the goal is also to ensure that Financial Compliance is delivered
in the most effective and economical manner possible automating
processes and embedding controls within IT systems.

Key Metrics
-

Financial Close Cycle Time


Segregation of Duties
Days Sales Outstanding
Days Payables Outstanding

17

QAD KPI Framework

Financial Compliance
Metrics

Best Practices

Related Modules

Days Sales Outstanding

Business Process Documentation

QAD Financials

Bad Debt

Electronic Payments

QAD Compliance

Days Payables Outstanding

Electronic Signatures

QAD Alerts

Financial Reporting Man Days

Shared Financial Services

Closing Cycle Time

Credit Management

Segregation of Duties

Collections Management

Approval Cycle Time

Segregation of Duties

18

QAD KPI Framework

Industry Compliance - KPI


Description
- Industry Compliance is a set of metrics associated with
regulations related to the industry, geography of operation,
or market that the customer serves.
- Some of these regulations take the form of guidelines put
in place by: industry bodies, internationally certified and
recognized standards, and regional/geographic
regulations.
- Typically, compliance to regulations requires that
processes are deployed in a controlled and documented
fashion. Often, compliance requires auditing or validation
by an outside party.

Key Metrics
- Quality
- Environmental & Sustainability
19

QAD KPI Framework

Industry Compliance
Metrics

Best Practices

Related Modules

Quality

Segregation of Duties

QAD Financials

Materials Guidelines (MMOG/LE)

Business Process Documentation

QAD Compliance

System (cGMP) Validation

Corrective And Preventative Action

QAD Process Maps

Electronic Signatures

QAD Quality Management

Traceability

QAD Trade Management

Attribute Management
Trade Compliance
MMOG/LE

20

QAD KPI Framework

IT Effectiveness - KPI
Description
- Information Technology (IT) Effectiveness is defined as a
combination of two key attributes: efficiency of IT operations
(Operational Efficiency) and the competitive advantage the business
gains through IT-enabled solutions (IT Innovation).
- Operational Efficiency is measured as the cost of the deployment,
management and support of IT systems in the business, at a
requisite level of availability, together with the alignment of those IT
systems to support business process and operational needs.
- IT Innovation is measured as the gains in competitive advantage an
enterprise enjoys resulting from business improvements enabled by
IT solutions.

Key Metrics
-

IT Budget / Total Revenue


Availability of Critical Systems
Service Level Adherence
Number of New Projects / Enhancements

21

QAD KPI Framework

IT Effectiveness
Metrics

Best Practices

Related Modules

IT Spend / Revenue

IT Outsourcing

QAD Enterprise Asset Mgmt

Systems Availability

IT Enterprise Monitoring

QAD Service / Support

Service Level Adherence


Projects / Enhancements
Service Request Resolution Time

User Satisfaction
System Response Time

22

Metrics

23

Metrics

Approval Cycle Time


Description
- The average time it takes
to approve a requisition,
process or journal entry.

Best Practices
Shared Financial Services

Measurement
- The number of days (or
hours) for all approvals /
number of approvals

QAD Metric Sources


- BI
- Ops Metrics
- Browses / Reports

24

Metrics

Backorders
Description
- The % of orders that
cannot be delivered at the
scheduled time, but will be
delivered at a later date

Measurement
- # of undeliverable orders /
total orders*100

QAD Metric Sources


- Ops Metrics

Best Practices
Consignment Inventory
Forecasting Techniques
Available To Promise
Inventory Visibility
Lead Time Reduction
Postponement
Spares Management

25

Metrics

Bad Debt

Description
-

Credit Management
Collections Management

Measurement
-

The goal may vary by industry but


the ultimate goal is to have no
write-offs or receivables.
Better screening, customer
approvals process, credit policies,
credit processes can all help
remedy this situation.

Best Practices

Total Yearly AR Written Off

QAD Metric Sources


-

BI v3.5
Ops Metrics
Browses/Reports

26

Metrics

Capacity Utilization

Description
-

Best Practices
Rough Cut Master Schedule
Preventative Maintenance
Rapid Changeovers

Measurement
-

The extent to which an enterprise


actually uses its installed productive
capacity.
It refers to the relationship between
actual output that 'is' produced with the
installed equipment and the potential
output which 'could' be produced with
it, if capacity was fully used.
Used Capacity / Planned Capacity
can be measured at bottlenecks only.

QAD Metric Sources


-

BI v3.6 / 3.7
Ops Metrics
Browses/Reports

27

Metrics

Closing Cycle Time

Description
-

Measurement
-

An organization's ability to
complete its accounting cycles
and produce financial statements
for internal management and
external legal reporting.

Best Practices
Business Process Documentation

Shared Financial Services


Electronic Signatures

Time period, measured in days,


from end of accounting period to
release of financial statements

QAD Metric Sources


-

BI
Ops Metrics
Browses/Reports

28

Metrics

Component Availability

Description
-

Measurement
-

The availability of component


inventory for the manufacture of a
specific parent order or group of
orders or schedules.
Unplanned component availability
issue frequency as measured by
number of events per period /
Total running Orders, or number of
Orders impacted / Total running
Orders.

Best Practices
Cycle Counting
Master Data Accuracy
Net Change MRP
Consignment Inventory

QAD Metric Sources


-

BI
Ops Metrics = No
Browses/Reports

29

Metrics

Days Payables Outstanding


Description
- Measurement of the
average payment period
(time from receipt of goods
to cash payment). How
long it takes an
organization to pay its
creditors.

Measurement

Best Practices
Shared Financial Services
Electronic Payments
Pay on Receipt
Collaborative Messaging
Alerts & Email Notification

- Accounts Payables
Balance/(COGS/365)

QAD Metric Sources


- BI v3.5
- Ops Metrics
- Browses/Reports
30

Metrics

Days Sales Outstanding


Description
- Measurement of the average
collection period (time from
invoicing to cash receipt).
How long, on average,
customers take to pay for
your goods or services.

Measurement
- [Annual Gross Accounts
Receivables] / [Total Annual
Sales * Days in Period]

QAD Metric Sources


- BI v3.5
- Ops Metrics = No
- Browses/Reports

Best Practices
Shared Financial Services
Electronic Payments
Pay on Receipt
Credit Management
Collections Management
Collaborative Messaging
Alerts & Email Notification

31

Metrics

Expedited Orders
Description
- The number of orders that
are required to be expedited.
A high number indicates that
orders are being required
within normal lead times due
to poor or ineffective
planning.

Measurement
- # orders expedited in period

QAD Metric Sources

Best Practices
Available To Promise
Forecasting Techniques
Consignment Inventory
Net Change MRP
Trade Compliance
Collaborative Messaging
Alerts & Email Notification

- BI
- Ops Metrics
- Browses/Reports

32

Metrics

Financial Reporting Man Days


Description
- Number of FTE days
required to complete the
Monthly or Yearly Financial
Reports.

Best Practices
Shared Financial Services
Business Process Documentation

Measurement
- Total number of hours
spent creating financial
reports by all involved / 8.

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports
33

Metrics

Forecast Accuracy

Description
-

Measurement
-

The ratio of calculated forecast to


actual demand or Mean Absolute
Deviation (MAD) on a line item
level between SKU forecasts and
actual sales as a % of total sales
forecasts for a particular period.

Best Practices
Forecasting Techniques
Sales & Operations Planning
Postponement

The ratio of calculated forecast to


actual demand or Mean Absolute
Deviation (MAD) on a line item
level between SKU forecasts and
actual sales as a % of total sales
forecasts for a particular period.
A low number will lead to poor
planning and either the over or
under-ordering of replenishment
inventory.

QAD Metric Sources


-

Browses/Reports

34

Metrics

Formal Disputes
Description
- No. of disputes in which
resolution couldnt be
achieved within the normal
prescribed process.

Measurement
- No. of disputes in which
resolution couldnt be
achieved within the normal
prescribed process.

Best Practices
Pricing, Discounts and Rebates

Subcontracting
Bar Coding / RF
Collaborative Messaging
Alerts & Email Notification

QAD Metric Sources


- BI v3.7/Future
- Ops Metrics
- Browses/Reports
35

Metrics

In Full and On Time By Order


Description
- This measure considers
the performance of the
order management process
from the time the order is
taken through to the time
the product is delivered to
the customer.

Measurement
- Total number of orders
delivered in full on time /
total number of orders
scheduled * 100

QAD Metric Sources

Best Practices
Forecasting Techniques
Available To Promise
Electronic Orders
Consignment Inventory
Postponement
Container Management
Spares Management
Bar Coding / RF

- BI
36

Metrics

In Full And On Time By Line


Description
- This measure considers the
performance of the order
management process from
the time the order is taken
through to the time the
product is delivered to the
customer.

Measurement
- Total number of lines
delivered in full on time /
Total number of lines
scheduled for delivery *
100%

QAD Metric Sources

Best Practices
Forecasting Techniques
Available To Promise
Electronic Orders
Consignment Inventory
Postponement
Container Management
Spares Management
Bar Coding / RF

- BI

37

Metrics

IT Spend / Revenue
Description
- Measures the ratio of IT
growth to business growth.
When IT growth is less than
business growth it can
indicate economies of scale,
improved efficiencies or
underinvestment.

Best Practices
IT Outsourcing
IT Enterprise Monitoring

Measurement
- (IT Spend (Current Yr)
/(Revenue (Current Yr)

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

38

Metrics

Inventory Accuracy

Description
-

Best Practices
Cycle Counting
Bar Coding / RF
Master Data Accuracy
Vendor Managed Inventory

Measurement
-

The accuracy of the book or


system inventory versus the
actual counted inventory (usually
expressed as a %).
For MRP to be effective inventory
accuracy should typically be at or
above 98%.
A lower number indicates that
planning will be ineffective, fill
rates low, and inventory values
higher than actually required due
to large buffer stocks to support
sales.
Actual count/System Count, or
Actual $/System $

QAD Metric Sources


-

BI
Ops Metrics = Yes
Browses/Reports

39

Metrics

Inventory Turns
Description
- The number of times that a
companys inventory cycles
or turns over per
measurement period
(month, quarter, year).

Measurement
- Annual Cost of Goods
Sold/Average Inventory
value.

Best Practices
Vendor Managed Inventory
Consignment Inventory
Forecasting Techniques
Postponement
Cross Docking
Lean Manufacturing
Lead Time Reduction

QAD Metric Sources


- BI v3.5
- Ops Metrics
- Browses/Reports
40

Metrics

Maintenance Cost / Asset Value


Description
- Total maintenance cost
divided by replacement
value of production
equipment value.

Measurement

Best Practices
Preventative Maintenance
MRO Management
Mean Time Between Failures Tracking

- Total maintenance cost /


replacement value of
production equipment
value.

QAD Metric Sources


- BI v3.7
- Ops Metrics
- Browses/Reports
41

Metrics

Maintenance Spend
Description
- Labor, materials spend for
Maintenance as % of
COGS or total Operating
costs.

Best Practices
Mean Time Between Failures Tracking

MRO Management
Preventative Maintenance

Measurement
- Total Maintenance
Spend/Total COGS (or total
operating costs)

QAD Metric Sources


- BI v3.7
- Ops Metrics
- Browses/Reports
42

Metrics

Manufacturing Cost Ratio


Description
- Includes quality-related
costs, direct and indirect
labor, equipment repair and
maintenance, other
manufacturing support and
overhead, and other costs
directly associated with
manufacturing operations

Measurement
- Budgeted (or Planned)
manufacturing Cost / Actual
Manufacturing Cost

Best Practices
Lean Manufacturing
Standard Costing
Engineering Change Mgmt
Subcontracting
Master Data Accuracy
Tooling Management

QAD Metric Sources


- BI v3.5
- Ops Metrics
- Browses/Reports

43

Metrics

Manufacturing Cost Variance


Description
- The analysis of differences
between actual
manufacturing product cost
to standard or budgeted
manufacturing cost.

Best Practices
Standard Costing
Master Data Accuracy

Measurement
- Planned Order Cost / Actual
Order Cost
- Actual Cost / Std Cost
(Smaller=Better)

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

44

Metrics

Master Data Accuracy


Description
- Items, BOMS, Routings,
Capacity

Best Practices
Engineering Change Mgmt

Measurement
- (Completeness and
Correctness of Items,
BOMS, Routings,
Capacity)/ total number.

QAD Metric Sources


- BI
- Ops Metrics = Yes
- Browses/Reports

45

Metrics

Materials Guidelines (MMOG/LE)

Description
-

Measurement
-

The global standard for supply chain


management processes that reduces
costs from errors, waste, and workload
for suppliers and customers.
It provides industry best practices for
the materials management process in
your facility and is intended to establish
a common definition of materials
practices to facilitate effective
communication between trading
partners.
Follow standard process for
assessment of materials management
within guidelines of MMOG/LE.

Best Practices
Bar Coding / RF
Cycle Counting
Lean Manufacturing
Supplier Communication
Global Sourcing

QAD Metric Sources


-

BI
Ops Metrics
Browses/Reports

46

Metrics

IT Projects / Enhancements
Description
- Resources and/or time
involved in Enhancements
including new projects, new
functionality, and
enhancements to existing
capabilities vs. Total IT
resources/time

Best Practices
IT Outsourcing
IT Enterprise Monitoring

Measurement
- IT Time spent on
Enhancements/Total IT Time

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

47

Metrics

Obsolete Inventory
Description
- The relative measure of the
currently obsolete or inactive
assets held by an entity.
- A high or increasing $ value
indicates that excess obsolete
or inactive inventory is being
carried possibly due to poor
engineering change control or
very poor planning.

Best Practices
Forecasting Techniques
Engineering Change Mgmt
Master Data Accuracy
Cycle Counting

Measurement
- Obsolete or Inactive Assets
represented as a $ value or as
% of total inventory.

QAD Metric Sources


- BI v3.7
- Ops Metrics
- Browses/Reports

48

Metrics

Order Costs

Description
-

Measurement
-

The aggregation of all order cost


elements.
A high or increasing number would
indicate there are many inefficiencies
creeping in to maintain high fill rates.
Cost of Sales will increase and reduce
margins as a result.
The aggregation of the following cost
elements: Create Customer Order
Costs, Order Entry and Maintenance
Costs, EDI Costs, Installation Planning
Costs, Order Fulfillment Costs,
Distribution Costs, Transportation
Costs, Installation Costs, Customer
Invoicing / Accounting Costs.

Best Practices
Pricing, Discounts and Rebates

Wave Picking
Electronic Orders
Consignment Inventory
Bar coding / RF

QAD Metric Sources


-

BI
Ops Metrics
Browses/Reports

49

Metrics

Order Cycle Time


Description
- The time it takes to fill a
customer order measured from
when an order is first received
to when it ships. An increasing
number would indicate that a
decrease in fill rates will follow
or inventory will start to climb.
Lead time is always a factor in
calculating safety stocks.

Best Practices
Consignment Inventory
Trade Compliance
Wave Picking
Electronic Orders

Measurement
- The time it takes to fill a
customer order measured from
when an order is first received
to when it ships.

QAD Metric Sources

Credit Management
Postponement
Bar Code / RF

- BI v3.7
- Ops Metrics = Yes
- Browses/Reports

50

Metrics

Overall Equipment Effectiveness

Description
-

A compounded metric that provides a


snapshot of the current production
efficiency for a machine, line or cell.
OEE considers the availability of the
work center, the output performance of
the work center, and the quality of the
output

Measurement
-

Preventative Maintenance
MRO Management
Integrated Maintenance Schedule

Availability x Performance x Quality

Best Practices

Availability > (Operating Time /


Planned Production Time) x 100
Performance > ((Total Pieces /
Operating Time)/ Ideal Run Rate) x
100
Quality > (Good Pieces / Total
pieces) x 100

Mean Time Between Failure Tracking

QAD Metric Sources


-

BI v3.6 / 3.7
Ops Metrics
Browses/Reports

51

Metrics

Planned Downtime

Description
-

Best Practices
Mean Time Between Failure Tracking

MRO Management
Integrated Maintenance Schedule

Preventative Maintenance

Measurement
-

Planned as part of Preventive


Maintenance. The activities, including
adjustments, replacements, and basic
cleanliness, that forestall machine
breakdowns.
The purpose is to ensure that
production quality is maintained and
that delivery schedules are met.
In addition, a machine that is well cared
for will last longer and cause fewer
problems. PM is typically 1/4 the cost
of failure or breakdown maintenance
Planned Downtime/Total time available

QAD Metric Sources


-

BI
Ops Metrics = Yes
Browses/Reports

52

Metrics

Procurement Cost Per Order


Description
- The business functions of
procurement planning,
purchasing, inventory
control, traffic, receiving,
incoming inspection, and
salvage operations per
purchase order.

Measurement
- Total Cost of Procurement /
Total number of Purchase
Orders

Best Practices
Vendor Managed Inventory
Carrier Agreements
Shipment Consolidation
Electronic Orders
Global Sourcing
Subcontracting
Supplier Communication

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

53

Metrics

Production Plan Accuracy


Description
- Absolute comparison of
production plan for
manufacturing as compared to
actual requirements, where over
and under are both considered
"inaccurate".

Measurement

Best Practices
Sales & Operations Planning
Forecast Techniques
Demand Visibility

- The ratio of calculated


production plan to actual
production output or Mean
Absolute Deviation (MAD) on a
line item level between SKU
plan and actual as a % for a
particular period.

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

54

Metrics

Purchase Price Variance


Description
- The purchase price variance is
the difference between the
actual price paid to buy an item
and its standard price, multiplied
by the actual number of units
purchased.
- A positive variance means that
actual costs have increased,
and a negative variance means
that actual costs have declined.

Best Practices
Standard Costing
Pricing, Discounts and Rebates

Carrier Agreements
Master Data Accuracy

Measurement
- (Actual price - Standard price) x
Actual quantity = Purchase price
variance.

QAD Metric Sources


- BI v3.7/Future
- Ops Metrics
- Browses/Reports

55

Metrics

Quality
Description
- The totality of features and
characteristics of a product
or service that bears its
ability to satisfy stated or
implied needs.

Measurement
- Measurement of defects,
deficiencies, and significant
variations by the adherence
to measurable standards
that satisfy user or customer
requirements.

Best Practices
Business Process Documentation
Corrective And Preventative Action

Master Data Accuracy


Electronic Documentation

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

56

Metrics

Requirements Plan Accuracy


Description
- Absolute comparison of
planned material requirements
for manufacturing as compared
to actual requirements, where
over and under are both
considered "inaccurate".

Measurement

Best Practices
Sales & Operations Planning
Forecasting Techniques
Inventory Visibility
Net Change MRP

- The ratio of material


requirements plan to actual
requirements or Mean Absolute
Deviation (MAD) on a line item
level between SKU plan and
actual as a % for a particular
period.

QAD Metric Sources


- BI

57

Metrics

Safety Stock
Description
- A term used to describe a level
of stock that is maintained
above the cycle stock to buffer
against stock-outs.
- Safety stock (also called buffer
stock) is a term used by
logisticians to describe a level of
extra stock that is maintained to
mitigate risk of stockouts
(shortfall in raw material or
packaging) due to uncertainties
in supply and demand.

Best Practices
Safety Stock Optimization
Forecasting Techniques
Consignment Inventory
Cycle Counting

Measurement
- # or $ at SKU level above the
stock needed to cover
replenishment or lead time

QAD Metric Sources


- BI

58

Metrics

Schedule Achievement
Description
- The percentage of time that
a plant achieves its
production schedule.

Measurement
- The absolute variance of
actual production to
scheduled production.
- Past Due Hours / Total
planned hours (expressed at
the beginning of the
scheduling period)

Best Practices
Master Data Accuracy
Engineering Change Mgmt
Lean Manufacturing
Tooling Management
Preventative Maintenance
Subcontracting

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

59

Metrics

Scrap
Description
- Material outside of
specifications and
possessing characteristics
that make rework
impractical.

Best Practices
Preventative Maintenance
Tooling Management

Measurement
- Actual Scrap% / Planned
Scrap% (Smaller=Better);
Rework hours / Total hours
(Smaller=Better)

QAD Metric Sources


- BI v3.6 / 3.7
- Ops Metrics
- Browses/Reports

60

Metrics

Segregation of Duties
Description
- Segregation of duties includes
the separation of responsibilities
related to custody of assets,
record keeping, authorization
and reconciliation in each
business process. Ideally, no
individual employee should
handle more than one of the
above functions in a process.

Best Practices
Segregation of Duties
Business Process Documentation

Measurement
- Number of non-compliant
instances

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

61

Metrics

Service Level Adherence


Description
- The agreement between IT
and their customers which
forms the basis for quality of
the service at an acceptable
cost

Best Practices
IT Outsourcing
IT Enterprise Monitoring

Measurement
- Typical metrics include
system availability, system
response time, time to
resolve service requests,
and call center response
time by severity level.

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

62

Metrics

Service Request Resolution Time


Description
- Average time (in hours or
minutes) from request to
resolution of service
request.

Best Practices
IT Enterprise Monitoring

Measurement
- Average time (in hours or
minutes) from request to
resolution of service
request.

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports
63

Metrics

Stockouts
Description
- Stockouts indicate where
demand (dependent or
independent) cannot be met
due to the absence of the
required inventory.
- A stockout indicates at best a
delayed sales order or delayed
production or potential missed
sale altogether.

Measurement
- # orders (or lines or items)
unfilled/total # orders (or lines or
items) in period

Best Practices
Forecasting Techniques
Safety Stock Optimization
Spares Management
Cycle Counting
Consignment Inventory
Lean Manufacturing

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

64

Metrics

Supplier Delivery Performance


Description
- Monitoring and evaluating
key suppliers on delivery,
based on an agreed set of
measurements.

Measurement
- ((On Time receipts x In Full
receipts x Accurate
Documentation x Perfect
Condition receipts) / Total
receipts) x 100.

Best Practices
Electronic Orders
Advanced Shipment Notices
Subcontracting
Supplier Communications
Alerts & Email Notifications

QAD Metric Sources


- BI v3.7/Future
- Ops Metrics
- Browses/Reports

65

Metrics

Supplier Quality Performance


Description
- Costs that would disappear if
systems, processes, and
products were perfect.

Measurement

Best Practices
Alerts & Email Notification
Business Process Documentation

- ((Cost of Source return +


appraisal*1 cost) / Estimated
Source returns cost ) x 100
[*1 Appraisal Cost = costs
incurred to determine the
degree of conformance to
quality requirements]

QAD Metric Sources


- BI v3.7
- Ops Metrics
- Browses/Reports

66

Metrics

System Response Time


Description
- Average time from keystroke to
system responding with
expected conclusion (e.g. when
entering a record - the time from
keystroke to acceptance of the
data and displaying it in the field

Best Practices
IT Outsourcing
IT Enterprise Monitoring

Measurement
- Average time from keystroke to
system responding with
expected conclusion (e.g. when
entering a record - the time from
keystroke to acceptance of the
data and displaying it in the field

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

67

Metrics

System Validation (cGMP Validation)


Description
- CGMP are the Current Good
Manufacturing Practices
followed by the Life Science
Industry to ensure that the
products produced meet
specific requirements for
identity, strength, quality, and
purity

Best Practices
Business Process Documentation

Measurement
- Audits and self assessments
of practices, policies, and
processes help determine
compliance.

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

68

Metrics

Systems Availability
Description
- Availability of systems to
the users, after
consideration of any
planned downtime for
system maintenance,
upgrade.

Best Practices
IT Outsourcing
IT Enterprise Monitoring

Measurement
- Planned uptime = service
hours planned downtime

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports
69

Metrics

Throughput Ratio
Description
- A comparison of the actual
throughput in units or hours,
as compared to the standard
units or hours

Measurement
- Actual Units produced
/Planned Units produced
(Larger=Better);
- OR Actual Hours produced /
Standard Hours produced
(Larger=Better) with Hours =
standard labor hours per unit
of product

Best Practices
Lean Manufacturing
Preventative Maintenance
Engineering Change Mgmt
Master Data Accuracy

QAD Metric Sources


- BI v3.6 / 3.7
- Ops Metrics = Yes
- Browses/Reports

70

Metrics

Time to Market
Description
- What is the actual Time taken
(days) from Designing to
Launching (deliver to shelf or
primary customer) a product in
market against the expected
time that was estimated
expressed in %age.

Measurement
- Actual Time taken (days) from
Designing to Launching (deliver
to shelf or primary customer) a
product in market against the
expected time that was
estimated expressed in %age.

Best Practices
Supplier Communication
Rapid Changeovers
Lead Time Reduction
Global Sourcing
Engineering Change Mgmt

QAD Metric Sources


- BI
- Ops Metrics
- Browses / Reports

71

Metrics

Transportation Efficiency
Description
- The accuracy of
transportation costs
budgeted vs. actual costs.

Measurement
- (Actual Transportation*2
Cost / Standard
Transportation Cost) x 100
[*2 Transportation Cost =
Freight + Overheads]

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports

Best Practices
Carrier Agreements
Trade Compliance
Carrier / Route Optimization
Container Management
Electronic Documentation
Shipment Track & Trace
Shipment Consolidation

72

Metrics

Unplanned Downtime
Description
- Time when a resource is
scheduled for operation but
is not producing for
reasons such as
maintenance, repair, setup,
or stockout

Best Practices
Preventative Maintenance
MRO Management
Alerts & Email Notification

Measurement
- (All Downtime - Planned
downtime)/Total Time
Available

QAD Metric Sources


- BI
- Ops Metrics
- Browses/Reports
73

Metrics

Unplanned Maintenance
Description
- Time or cost of reactive
maintenance due to process
equipment underperforming.
- Unplanned maintenance can
be 4 to 5 times the time/cost
of Preventive/Planned
Maintenance.

Best Practices
Preventative Maintenance

Measurement
- Ratio of Unplanned
Maintenance time or cost as
compared to total
maintenance time or cost.

QAD Metric Sources


- BI
- Ops Metrics
- Browses /Reports

74

Metrics

Unreimbursed Freight
Description
- Freight charges not paid by
customer. Could indicate
that expedited freight is
being used (to cover other
deficiencies), or that lowercost modes of transport
could be used by effective
freight/rate-shopping.

Best Practices
Forecasting Techniques
Available To Promise

Measurement
- Total freight costs,
transportation costs, or
logistics costs not paid by
customers.

QAD Metric Sources


- BI
- Ops Metrics
- Browses / Reports

75

Metrics

User Satisfaction
Description
- Satisfaction of users based
on feedback surveys, or #
of complaints,

Best Practices
IT Enterprise Monitoring

Measurement
- User Satisfaction Survey
- Help Tickets per User

QAD Metric Sources


- Ops Metrics
- Browses / Reports

76

Metrics

Warranty Cost
Description
- All costs associated with
warranty (sellers assurance
to the buyer that a product or
service is as represented) on
a products, including
replacement, return
expense, and all associated
material, labor, and
overhead expenditures

Best Practices
Spares Management
Corrective And Preventative Action

Field Service Scheduling


Depot Repair

Measurement
- Aggregation of all warranty
related costs

QAD Metric Sources


- BI
- Ops Metrics = Yes
- Browses/Reports

77

Metrics

Yield
Description
- Defined as the number of
units coming out of a
process divided by the
number of units going into
that process over a
specified period of time.

Best Practices
Preventative Maintenance
Tooling Management
Master Data Accuracy

Measurement
- Number of output/Number
of units input *100

QAD Metric Sources


- BI
- Ops Metrics
- Browses / Reports
78

Metrics

Warehouse Efficiency

Description
-

Best Practices
Wave Picking
Cross Docking
Dynamic Location Assignment

Bar Coding / RF

Measurement
-

Actual labor expended compared


to standard labor in warehouse
tasks such as receiving, putaway/stocking, shipping;
Or could be in units. Less than
100% efficiency indicates lower
performance than desired. If labor
- then "standard" is numerator,
actual is denominator; If units,
then actual is numerator
If labor - Standard labor/Actual
labor; If units - actual
units/standard units

QAD Metric Sources


-

BI
Ops Metrics
Browses / Reports

79

Best Practices

80

Best Practices

Advanced Shipment Notice


Description
- An electronic document derived from a shipper
document and sent by a supplier to a customer when
a shipment leaves the supplier site, informing the
customer that the shipment is on the way.

Required Modules
- QAD Customer Management

81

Best Practices

Alerts & Email Notification


The capability to send an email notification when
an activity occurs that is outside the normal
operating range.
Modules Required
- None

82

Best Practices

Attribute Management
The ability to track attributes, such as size color,
style, assay, milk content, etc, for an item.
Attributes are used for Quality Analysis
Required Modules
- QAD Manufacturing
- QAD Quality Management

83

Best Practices

Available To Promise
ATP is the uncommitted portion of a companys inventory
and planned production maintained in the master
schedule to support customer-order promising.
Available-to-Promise (ATP) provides an availability and
feasibility check concerning a customer request or a
customer order where three outputs can be
distinguished:
- 1. the soonest delivery date concerning the customer request
- 2. the confirmation of desired delivery date, item quantity, and
item configuration
- 3. the selection of alternative, but deliverable product variants in
case the desired delivery parameters cannot be fulfilled.

Required Modules
- QAD Customer Management

84

Best Practices

Bar Coding / RF
Bar Code is a series of alternating bars and
spaces printed or stamped on parts, containers,
labels, or other media representing encoded
information that can be read electronically.
Used to minimize handling time and maximize
data accuracy
Product serial number is often used as identifier.
Required Modules
- QAD Manufacturing
- Data Collection
85

Best Practices

Business Process Documentation


The documentation of business processes on a
graphical display.
Used for understanding business process flows.
Required Modules
- Process Maps

86

Best Practices

Carrier Agreements
Carrier agreements are agreements between a
company and its domestic and global carriers (for
both, inbound raw materials and outbound finished
goods) specifying service levels, payment terms,
and other conditions.
Such agreements can be established as part of a
larger initiative to decrease raw material and
finished goods inventory, while improving customer
service.
Required Modules
- QAD Transportation

87

Best Practices

Collaborative Messaging
The ability to provide messaging capabilities
with customers and suppliers, usually related to
orders and shipments.
Required Modules
- None

88

Best Practices

Collections Management
Is the set of capabilities to collect accounts
receivable in a timely manner.
Includes Dunning Letters and reminders.
Required Modules
- QAD Finance

89

Best Practices

Consignment Inventory
Describes the process where a supplier places
material at a customer location without receiving
payment until after the goods are used or sold.
Required Modules
- QAD Consignment
d1
- QAD Customer Management (Customer)
- QAD Supply Chain (Supplier)

90

Slide 90
d1

Consignment is not one of the Modules listed in KPI Framework


dbv, 14/03/2012

Best Practices

Container Management
The ability to track the quantity, quality and
location of containers to ensure that the
customer-approved container is available at the
right time, avoiding disruptions in the production
and shipping process.
An effective container management
process/system can avoid extraordinary costs by
preventing material damage, lost containers,
and production down-time.
Required Modules
- QAD Customer Management
91

Best Practices

Corrective And Preventative Action


A concept within Good Manufacturing Practice
(GMP), CAPA focuses on the systematic
investigation of discrepancies (failures and/or
deviations) in an attempt to prevent their recurrence.
To ensure that corrective and preventive actions are
effective, the systematic investigation of the failure
incidence is pivotal in identifying the corrective and
preventive actions undertaken.
CAPA is part of the overall quality management
system (QMS).
Required Modules
d2

- Quality (CEBOS or Pilgrim)

92

Slide 92
d2

CEBOS or Pilgrim are not specific modules in KPI Framework


dbv, 14/03/2012

Best Practices

Credit Management
Is the capability to check credit and manage
orders based on credit guidelines.
Includes approval processes based on levels of
authority.
Required Modules
- QAD Customer Management

93

Best Practices

Cross Docking
Cross docking actively links the receiving and
shipping processes. In a DC, both cross docking
(no storage) and traditional (with storage)
operations might take place.
Cross docking minimizes the need to put
incoming inventory into storage and the number
of touches for each order.
Required Modules
- QAD Warehousing
94

Best Practices

Cycle Counting
A physical inventory technique where inventories
are counted on a periodic basis rather than once
a year - can be taken when an item reaches its
reorder point, when new stock is received, or on
a regular basis.
High-value, fast-moving stock is generally
counted more frequently than low-value, slowmoving items.
Required Modules
- QAD Manufacturing
95

Best Practices

Demand Visibility
The ability to see the sources of demand:
manufacturing, services parts and other
independent demand.
Required Modules
- QAD Customer Management
- QAD Demand Management

96

Best Practices

Depot Repairs
The ability to efficiently handle returns for
warranty or refurbishment, including spare parts
planning.
Includes tracking of lot and serial numbers.
Related to Mean Time Between Failure Analysis.
Related Modules
- QAD Service / Support

97

Best Practices

Dynamic Location Assignment


The assignment of a stocking location when
goods are received.
Requires real time inventory control, stock
locator, and rules based picking logic
Required Modules
- QAD Supply Chain
- QAD Warehousing

98

Best Practices

Electronic Documentation
Is the accumulation and sharing of
documentation related to products and
shipments.
Required Modules
- QAD Customer Management
- QAD Manufacturing
- QAD Transportation

99

Best Practices

Electronic Orders
Is the capability to receive and send orders
electronically, usually through EDI transactions.
Includes the ability to change and check on
order status as well as Advance Shipment
Notices (ASN)
Required Modules
- QAD Customer Management
- QAD Manufacturing
- QAD EDI
100

Best Practices

Electronic Payments
EDI transaction and network services for the
transfer of funds.
Requires specific bank drivers and secure
communications.
Required Modules
- QAD Finance
- QAD EDI

101

Best Practices

Electronic Signatures (21CFR part 11)


The capability to provide authorization
electronically rather than by paper.
Requires a secure, auditable system.
Required Modules
- QAD Compliance

102

Best Practices

Engineering Change Management


The effective management and implementation
of engineering changes ensures the correct part
or level is produced and delivered to the
customer and minimizes obsolescence and
warranty costs.
Required Modules
- QAD Manufacturing

103

Best Practices

Field Service Scheduling


The ability to efficiently schedule field service
engineers for installation or repairs.
Required Modules
- QAD Service / Support
- QAD Field Service Scheduling

104

Best Practices

Forecasting Techniques
An estimate of future demand for an item at a particular
site, stated in terms of quantity per week. Enables
purchase or manufacture of necessary products in
appropriate quantities in advance.
Created by mathematical means using historical data.
-

Includes Collaborative Forecasting , Planning & Scheduling


Includes Family Level Planning
Includes Pyramid Forecasting
Includes Forecast Consumption
Includes Consensus Forecast Input

Required Modules
- QAD Customer Management
- QAD Demand Management

105

Best Practices

Global Sourcing
The ability to source materials and products
globally.
Requires visibility into all sources of demand
and consistent naming and bills of material
Required Modules
- QAD Supply Chain
- QAD Distribution Requirements Planning

106

Best Practices

Integrated Maintenance Schedule


Integrated Maintenance and Production
schedules insures that machinery is available at
the appropriate time for manufacturing of goods.
Includes Tooling Management.
Required Modules
- QAD Enterprise Asset Management

107

Best Practices

Inventory Visibility
The ability to see inventory levels at all locations
globally.
Includes the ability to see allocations placed on
that inventory.
Required Modules
- QAD Manufacturing

108

Best Practices

IT Enterprise Monitoring
The monitoring of system performance and
service levels in order to maintain a certain level
of performance.
Required Modules
- Performance Monitoring Q-Scan

d3

109

Slide 109
d3

Not a Module in KPI Framework


dbv, 14/03/2012

Best Practices

IT Outsourcing
A technique to outsource some or all IT tasks.
Requires a Service Level Agreement between
parties.
Required Modules
- None

110

Best Practices

Lead Time Reduction


Lead time is the time in calendar days required
to perform an activity. May include time needed
for purchasing, order preparation, queuing,
transportation, receiving, and inspection.
Various techniques may be used to reduce
purchasing and manufacturing Lead Times and
thus inventory levels.
Required Modules
- QAD Supply Chain
- QAD Manufacturing
111

Best Practices

Lean Manufacturing
A philosophy of production that emphasizes minimizing the
resources used, including time, in manufacturing activities.
It involves identifying and eliminating non-value-added
activities in design, production, and supply chain
management, and results in highly flexible, automated
processes. Kanbans and flow schedules are example of lean
manufacturing techniques.
The typical enabler for lean improvement is through the use of
Value Stream Mapping (VSM). VSM is the process of walking
and drawing the process steps (material and information) for
one product family from beginning to end, typically within a
single facility, to create a current state map.
Required Modules
- Lean Manufacturing

112

Best Practices

Maintenance Outsourcing
The outsourcing of plant maintenance.
Requires a Service Level Agreement between
parties.
Required Modules
- QAD Enterprise Asset Management

113

Best Practices

Manufacturing Bill of Material


A bill of material designed for manufacturing
efficiency has as few levels as possible.
Required Modules
- QAD Manufacturing

114

Best Practices

Master Data Accuracy


Is the ability to accurately record how a product
is made, including materials, processes and
attributes.
Requires capabilities to identify where master
data may be incorrect.
Required Modules
- QAD Manufacturing

115

Best Practices

Mean Time Between Failure Tracking


The average time interval between failures for
repairable product for a defined unit of measure
(e.g., operating hours, cycles, miles).
Required Modules
- QAD Enterprise Asset Management

116

Best Practices

MMOG/LE
MMOG/LE is the global standard for automotive
supply chain management processes that
reduces costs from errors, waste, and workload
for suppliers and customers.
Required Modules
- MMOG/LE Q-Scan
d4

117

Slide 117
d4

Not a Module in KPI Framwork


dbv, 14/03/2012

Best Practices

MRO Management
MRO items are used in support of general
operations and maintenance such as
maintenance supplies, spare parts, and
consumables used in the manufacturing process
and supporting operations.
These materials are usually managed by a
separate planning and purchasing system due to
the high number of part numbers involved.
Required Modules
- QAD Enterprise Asset Management
118

Best Practices

Net Change MRP


An approach in which the material requirements
plan is continually retained in the computer.
Whenever a change is needed in requirements,
open order inventory status, or bill of material, a
partial explosion and netting is made for only
those parts affected by the change.
Required Modules
- QAD Manufacturing

119

Best Practices

Pay on Receipt
Electronic Invoice processing based on receipt
of goods.
Requires that a process exists for making
adjustments at a later date.
Required Modules
- QAD Financials

120

Best Practices

Postponement (Final Assembly Scheduling)


Postponement (delayed differentiation) is a supply chain
technique where a product is kept as long as possible in a
generic state.
Differentiation of the generic product into a specific end
product is shifted closer to the consumer by postponing
identity changes, such as assembly or packaging, to the last
possible supply chain location.
This allows keeping safety stock of one generic product
instead of multiple specific end products.
This technique is associated with Two Level Master
Scheduling where planning is done at the option level.
Required Modules
- QAD Manufacturing
- QAD Customer Management
- QAD Configurator

121

Best Practices

Preventative Maintenance
Preventive Maintenance are actions taken to
keep an item in a specified operating condition
by performing service at regular intervals.
Required Modules
- QAD Enterprise Asset Management

122

Best Practices

Pricing, Discounts and Rebates


The ability to manage various pricing schemes,
monitor discounting practices and handle
rebates in a timely manner.
Required Modules
- QAD Trade Management

123

Best Practices

Rapid Changeovers
Rapid Changeovers require small setup times in
order to have small production batches and
small WIP inventory.
Required Modules
- QAD Manufacturing

124

Best Practices

Remanufacturing
The ability to refurbish used products
Includes the ability to plan for inconsistent
replacement of parts.
Required Modules
- QAD Manufacturing

125

Best Practices

Rough Cut Master Scheduling


Is a technique, using a Bill of Resources, to
check whether there is enough capacity for a
given master schedule.
Required Modules
- QAD Manufacturing

d5

126

Slide 126
d5

KPI Framework has Manufacturing and Manufacuring Scheduling. Should this be scheduling?
dbv, 14/03/2012

Best Practices

Safety Stock Optimization


Is the periodic review of Safety Stock to
determine whether it is meeting the goals of
customer service and inventory levels.
Required Modules
- QAD Manufacturing

127

Best Practices

Sales & Operations Planning


Sales and Operations Planning (S&OP) is a process to
develop tactical plans that provide management the
ability to strategically direct its businesses by integrating
customer focused marketing plans for new and existing
products with the management of the supply chain.
This monthly process brings together all the plans for the
business (sales, distribution, inventory, production,
procurement) into one integrated set of plans. This set of
plans typically covers at an aggregate (product family)
level a period of 8 to 18 months with monthly periods
and further years with half-year periods.
Required Modules
- QAD Enterprise Operations
128

Best Practices

Segregation of Duties
The concept of having more than one person
required to complete a task in order to prevent
losses from fraud and error.
Required Modules
- QAD Financials
- QAD Compliance

129

Best Practices

Shared Financial Services


The ability to centralize financial services such
as Accounts Payable and Receivable.
For global companies, requires adequate
networking, software, cross training and
processes.
Required Modules
- QAD Financials

130

Best Practices

Shipment Consolidation
The consolidation of shipments by Carrier or
Customer in order to save shipping costs.
Required Modules
- QAD Transportation

131

Best Practices

Shipment Track and Trace


The ability to find the location and to trace the
path of shipments.
Required Modules
- QAD Transportation

132

Best Practices

Spares Management
The ability to plan for inventory of spare and
replacement parts by location.
Requires history and forecast information by
part.
Required Modules
- QAD Service / Support

133

Best Practices

Standard Costing
Standard Costing is a method where standard
costs are assigned to a product based on
purchase, manufacturing and freight costs.
Actual Costs are gathered and compared to the
Standard Cost and Variances are researched.
Modules Required
- QAD Manufacturing
- QAD Supply Chain
- QAD Financials
134

Best Practices

Subcontracting
Subcontracting is the capability to send some or
all manufacturing to a third party.
Requires controls for quality and schedule
adherence.
Also requires systems for planning subcontract
requirements.
Required Modules
- QAD Supply Chain

135

Best Practices

Supplier Communication
The methods of communication for day-to-day
operations defined and documented in order to
clarify roles and responsibilities, expectations,
and commitments and to avoid the possibility of
misunderstandings and conflict.
Required Modules
- Supply Chain Portal

136

Best Practices

Tooling Management
The ability to plan for correct tooling to support
manufacturing.
Requires information on tooling life and
availability.
Required Modules
- QAD Manufacturing
- QAD Enterprise Asset Management

137

Best Practices

Traceability
The ability to trace the customer of lot or
serialized products
The ability to trace the source and lot / serial
number of component items
Required Modules
- QAD Manufacturing

138

Best Practices

Trade Compliance
The ability to check whether shipment
destinations are allowed by local laws and the
ability to produce documentation for customers
and legal authorities.
Required Modules
- QAD Transportation

139

Best Practices

Vendor Managed Inventory


VMI is a technique for planning and control of
inventory, in which the supplier has access to the
customers inventory data and is responsible for
maintaining the inventory level required by the
customer.
Re-supply is performed by the vendor through
regularly scheduled reviews of the on-site inventory.
The on-site inventory is counted, damaged or
outdated goods are removed, and the inventory is
restocked to predefined levels.
Required Modules
- QAD Supply Chain Portal

140

Best Practices

Wave Picking
Wave picking is a practice used in many Distribution Center
operations to increase labor picking productivity and reduce
the labor cost per pick.
In some DCs, orders are scheduled to be picked when they
are received. In contrast to that, Wave picking consolidates
orders into waves where multiple orders with similar
characteristics are picked at one time. Orders can be
consolidated by customer, geography, or any other criteria
that makes sense for the DC operation.
In an operation where freight consolidation for shipping is
important, wave picking can help consolidate less-thantruckload (LTL) shipments into truckload (TL) shipments.
Required Modules
- QAD Warehousing

141

Best Practices

Yield Management
The capability to monitor and correct activities
that result in reduced yields from manufacturing
operations.
Yield is usually associated with Quality
Management.
Required Modules
- QAD Manufacturing
- Quality Management

142

Modules

143

Modules

QAD Alerts
Alerts and notifications ensure information flows
to responsible individuals

144

Modules

QAD Business Intelligence


Promotes fact-based decisions by unifying data
from multiple sources using an included ETL
(Extract, Transform, Load) tool, allowing decision
makers to access, analyze, and share critical
information using a browser based portal.

145

Modules

QAD Business Process Management


Controls the flow of business processes
throughout the organization.

146

Modules

QAD Compliance (Enhanced Controls)


Provides strict enforcement of the authenticity,
integrity, auditing, and confidentiality of
electronic records and supports eSignature.

147

Modules

QAD Configurator
A complete rules-based product configuration
suite supports configurations from quoting and
order entry all the way through production
planning, shop floor control, serialization, and
order fulfillment and after sale service and
support.

148

Modules

QAD Customer Management


Provides improved responsiveness through
collaboration and management of customers
and demand

149

Modules

QAD Customer Relationship Management


Provides a fully functional sales and marketing
automation toolset designed to improve sales
and marketing productivity including
communications and scheduling tools; pipeline
and forecast management; and customer
service.

150

Modules

QAD Customer Self Service


Provides a web storefront for self-service sales
transactions and inquiries that enable suppliers
to automatically take orders while reducing
processing cost, time to deliver and with a higher
degree of accuracy.

151

Modules

Data Collection
QAD Supports a variety of shop floor and
warehousing Data Collection Bar Coding and
Radio Frequency third party products

152

Modules

Data Collection - Eagle


Integrates critical automated data collection and
bar coding functions.

153

Modules

Data Collection - Radley


Integrates critical automated data collection and
bar coding functions.

154

Modules

QAD Demand Management


Tools to build and manage forecasts, either
collaboratively or individually, based on
mathematical models that utilize demand history.

155

Modules

QAD Distribution Requirements Planning


Supports the planning of inventory at distributed
distribution centers using a variety of planning
methods using Distribution Orders

156

Modules

QAD EDI eCommerce


Provides a streamlined method for managing
EDI communications between trading partners,
including an end-to-end integration broker for
B2B communications.

157

Modules

QAD Enterprise Asset Management


Supports all plant maintenance activities,
including preventive maintenance and predictive
management, work orders and service requests
to ensure equipment is reliable and ready to go
at all times, and to ensure compliance with
regulatory mandates regarding product safety
and cleanliness standards.

158

Modules

QAD Enterprise Operations


Supports the highest level of S&OP and
integrates with planning and scheduling

159

Modules

QAD Field Service Scheduler


Helps reduce costs and improve customer
service by improving service engineers
productivity and optimizing other resources in
the field.

160

Modules

QAD Financials
Addresses complex regulatory requirements,
strict segregation of duties, and more controls as
required by larger, more complex enterprises;
includes sophisticated budget modeling
capabilities, advanced reporting, multiple
reporting layers that simplify complex MultiGAAP reporting requirements and enhanced
audit capabilities.

161

Modules

QAD Lean Manufacturing


Supports companies adopting lean principles,
QADs integrated Lean Manufacturing supports
Kanban, TAKT time calculations and visual
control methods.

162

Modules

QAD Manufacturing
Enables companies to reduce costs and
increase throughput using the latest
manufacturing scheduling techniques, including
the capability to support Lean principles

163

Modules

QAD Manufacturing Scheduling Workbench


QAD Product Scheduling Workbench

Supports visual master scheduling and


production scheduling

164

Modules

QAD Quality Management


Supports product quality, including inspection
and testing, incoming inspection of purchased
items and inventory sampling. This includes
definitions of standard testing procedures and
manages inventory sampling plans and quality
work orders.

165

Modules

Quality - CEBOS
Provides the functionality to meet ongoing
quality system requirements, while automatically
sharing data across the entire quality and
business system. MQ1 allows end users to
configure to their business process requirements
ensuring they can meet not only internationally
recognized compliance requirements, such as
ISO and FDA requirements, but also those of
specific customers.

166

Modules

QAD Process Maps


Process Maps provide graphic representations
of workflows that can include links to programs,
browses, and documentation or other maps.

167

Modules

QAD Qxtend
A simple message based integration tool that runs
over middleware or peer-to-peer.
QXtend features a full set of APIs to most
transactions addressed by QAD.
QXtend has a documented set of mapped
transactions that simplify integration tasks defined in
QDocs.
QXtend is the backbone for Application-toApplication integration to the QAD Enterprise
Applications Suite, as well as opening up the
application to other sources.
QXtend allows automated and rules-based data
synchronization tasks and eliminates the burden of
maintaining custom interfaces.
168

Modules

QAD Service / Support Management


Provides the capability for after-sale service and
support.
Manages Warranty Tracking, Services Calls, and
Returns and Repairs

169

Modules

QAD Supply Chain


Helps companies improve management of
supply and suppliers through real-time
collaboration

170

Modules

QAD Supply Chain Portal


Collaborative portal communicates demand
changes in real-time and tracks the flow of
orders and shipments using ASNs.

171

Modules

QAD Trade Management


Enables the ability to drive, manage and
reconcile on-going product promotion events
with key retailers to ensure that spending
generates appropriate sales; manages rebates,
chargebacks, and promotional activities.

172

Modules

QAD Transportation Management


Provides a complete set of tools to optimize
shipments by air, sea, parcel, truckload or less
than truckload; provides international
documentation and assists in compliance with
denied party regulations.

173

Modules

QAD Warehousing
Supports the requirements of organizations with
larger or more sophisticated warehouses, QAD
Warehousing provides automated task
management, RF based picking, wave
management, batch picking, location find/audit,
put-away, picking, cross docking, quality control,
replenishment, transfers and advanced cycle
counting activities, including full support for
global inventory views in multiple physical
warehouses across multiple domains.

174

QAD KPI Framework

QAD Key Performance Indicators (KPIs)

Customer
Service

Supplier
Performance

Manufacturing
Schedule

Manufacturing
Efficiency

Supply Chain
Effectiveness

Inventory
Effectiveness

Asset
Utilization

Financial
Compliance

Industry
Compliance

IT
Effectiveness

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