Customer Adoption of QAD Lean Manufacturing Solution Gains Momentum.DETROIT -- Automotive, Electronics, Industrial and Other Manufacturers Worldwide Adopt QAD QAD Quality Assurance Division
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QAD Inc. (Nasdaq:QADI), a leading provider of enterprise solutions for global manufacturers, continues to see momentum for a host of lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. capabilities its software provides customers. For the first half of QAD's 2005 fiscal year (February 2004-July 2004), the company has generated more than a 60-percent increase in the number of customers adopting QAD Lean Manufacturing, compared with customer adoption during the first half of fiscal year 2004. Additionally, the company has generated more than 120-percent year over year growth in the number of customers for the 12 months ending July 2004 compared with the previous 12 months. Today, more than 80 customer sites have added QAD Lean Manufacturing functions to their deployment of QAD MFG/PRO eB2 software. QAD Lean Manufacturing helps manufacturers effectively use kanban Meaning "visible record" in Japanese, it is a system of notification from one process to the other in a manufacturing system. Kanban cards, which may be multicolored based on priority, are stored in a bin or container that holds the items. They describe the parts, supplier and quantity. systems to align inventory with demand for pull-based replenishment.
Based on Toyota standards for lean manufacturing that are widely accepted by the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , QAD's Lean Manufacturing solution integrates electronic representation of kanban processes with core ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. functions to provide comprehensive level loading, tracking and visibility of production. The solution supports electronic kanban Electronic Kanban (sometimes referred to as eKanban) is a signaling system that utilizes a mix of technology to trigger the movement of materials within a manufacturing or production facility. as well as physical card-based visual systems. Even suppliers operating abroad can follow the progress of parts as they flow through the manufacturing process, and manufacturers can gauge - and control - the cost of buffer supplies and inventory holdings. QAD Lean Manufacturing helps streamline supply chain communication so that companies can understand real customer demand and calibrate To adjust or bring into balance. Scanners, CRTs and similar peripherals may require periodic adjustment. Unlike digital devices, the electronic components within these analog devices may change from their original specification. See color calibration and tweak. production to take advantage of advanced manufacturing techniques such as continuous flow, pull replenishment and kanban visualization.
QAD Lean Manufacturing includes:
--Set-up and management of supermarkets, so manufacturers can control inventory quantity and initiate pull-based replenishment. Supermarket quantities can be established manually, calculated automatically based on flexible, user-defined parameters, or modeled using workbench tools. In addition, enhanced kanban card management gives manufacturers complete flexibility in viewing kanban cards Kanban Cards are a key component of Kanban, a signaling system common in Lean production, that utilizes cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production facility. and loops to plan updates.
--Calculation of safety stock based on parameters such as quantity, or automatically calculated through a selection of formulas based on measurements such as number of days that the system uses and average demand. The amount of inventory is tightly managed with automated techniques for continuous improvement.
--Load leveling tools calculate a suggested daily level schedule by shift for each item based on the established process volume, mix analysis, pitch and other parameters. Buffer performance is evaluated and adjusted automatically.
--Production initiated by customized signals. Kanban loops can be set up with automatic accumulators based on order quantity or specified time intervals, so that the system automatically authorizes production. Limited-use cards can be created and automatically deactivated, for short-term tasks or unique demand.
--Real-time visibility into electronic kanban signals. Integration with QAD MFGx.net Supply Visualization provides authorized internal or external suppliers with secure insight into kanban status.
"Lean is essential to our vision for the manufacturing sector, and the latest enhancements to QAD MFG/PRO underscore our commitment to trimming the time it typically takes for a manufacturer to receive, process and respond to demand," said Pamela Lopker, QAD president and chairman of the board. "We've seen the advantages lean manufacturing offers individual companies and we are passionate about its potential impact on the supply chain. For more than 20 years, QAD has combined the best thinking in manufacturing theory with leading-edge technology to provide global manufacturers with solutions to their real-world problems."
Customers Adopt QAD Lean Manufacturing Solution
Since QAD Lean Manufacturing was introduced in late 2002, manufacturers have added these functions to their deployment of QAD MFG/PRO eB2 software at more than 80 sites worldwide. Adoption has been particularly strong in several of the six vertical markets QAD serves, including automotive, electronics and industrial. Three-quarters of early adopters of QAD Lean Manufacturing have purchased and are undertaking deployment, most extensively in Asia Pacific and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , followed by Europe, Middle East and Africa. QAD anticipates future momentum in keeping with these initial trends.
On 12th December 12 2002, Northrop Grumman acquired TRW Inc. An 80.1% stake (later increased to more than 90%) in TRW Automotive Holdings, including the former LucasVarity Automotive, was spun off to operations are dependent on real-time information, and to meet their needs we've standardized on QAD solutions at 40 sites in 15 countries worldwide," said Chuck Fox, director information systems, North America, TRW TRW The Real World (TV reality show)
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Companies that have deployed QAD Lean Manufacturing have been able to produce to demand and more accurately calculate required inventory, reducing costs associated with carrying inventory at the proper location and levels, as well as costs resulting from rushing -- or halting -- production to keep pace with demand and overcome bottlenecks and delays.
"QAD has assembled a powerful set of lean manufacturing tools that work well in our automotive manufacturing environment," said Jerry Powell, director of materials control systems -- Europe, DURA Automotive Systems Dura Automotive Systems (Pink Sheets: DRRAQ), headquartered in Rochester Hills, Michigan, USA was ranked in the 2006 Fortune 1000. It is engaged in the business of manufacturing and distribution of automotive components. , Inc. "For example, kanban can be applied in many different ways, and therefore it long has been considered difficult to integrate into ERP systems. QAD has developed a very flexible and adaptable system that can be used at all points in the supply chain and the manufacturing process. At DURA, supplier and internal process scheduling process scheduling - multitasking now is fully managed using kanbans."
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3. William Dameron, IT director, Speedline Technologies, "Our success depends upon the principals of lean manufacturing. On our ever-continuing path to improvement and the elimination of waste QAD, has been an invaluable partner. As part of our core system MFG/PRO eB2 is helping Speedline Technologies achieve its lean initiatives." Speedline Technologies is the global leader for single-source process knowledge, solutions, and service to the PCB PCB: see polychlorinated biphenyl.
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Dameron added, "The kanban module within MFG/PRO has made it possible for us to quickly and efficiently pull materials through our supply chain. QAD has a clear vision of its direction and more importantly, the direction of its customers."
Lean Manufacturing Future Enhancements
The new enhancements are part of QAD's ongoing commitment to help global manufacturers initiate lean manufacturing easily and quickly. Future capabilities QAD will introduce include further refinement of kanban process controls, production line design and material routing optimization for greater control of the physical flow of material on factory floor. In addition, QAD is working to add extended enterprise signaling capabilities enabling trading partners to send and receive kanban signals regardless of the ERP applications each party uses.
Services and Support
In conjunction with the introduction of lean manufacturing functions, QAD Global Services provides a full range of services and support to assist global manufacturers with design and implementation of QAD Lean Manufacturing, as well as training and performance tuning Performance tuning is the improvement of system performance. This is typically a computer application, but the same methods can be applied to economic markets, bureaucracies or other complex systems. to ensure QAD systems deliver optimal results as customers' business evolves.
QAD enterprise applications leverage advances in Internet and enabling technologies to provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. Manufacturers of automotive, consumer products, electronics, food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. , industrial and medical products use QAD applications at approximately 5,200 licensed sites in more than 80 countries and in as many as 26 languages. For more information about QAD, telephone +1 805 684 6614, or visit the QAD Web site at: www.qad.com. To receive any of QAD's press releases via facsimile, contact +1 800 356 0747, or outside the U.S. contact +1 213 253 5647.
"QAD" and "MFG/PRO" are registered trademarks of QAD Inc. All other products or company names herein may be trademarks of their respective owners.
Note to Investors: This press release contains certain forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made under the "safe harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain strong licensing demand; the ability to sustain customer renewal rates at current levels; the publication of opinions by industry analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; difficulties relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc integration of a new business; the entry of new competitors and their technological advances; delays in localizing the company's products for new markets; delays in sales as a result of lengthy sales cycles; changes in operating expenses Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , pricing, timing of new product releases, the method of product distribution or product mix; general economic conditions, exchange rate fluctuations and the global political environment. In addition, revenue and earnings in the enterprise resource planning See ERP.
(application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP), e-business and distributed order management software industries are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future growth. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K Form 10-K
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See 10-K. for the fiscal year ended January 31, 2004.