Easy OnBoarding EAM Project Controls Set Up Process

Easy On-Boarding EAM – Project Controls Set Up Process

Easy On-Boarding Course Overview • • EAM Overview EAM Modules Introduction to EAM Project Controls Set Up Processes

Easy On-Boarding QAD EAM Overview • Enterprise Asset Management - Manage the physical assets of a business - Includes design, construction, commissioning, operation, maintenance, improvement and replacement of plant, equipment and facilities • Control MRO spend - Maintenance Spend - Non Production spend

Easy On-Boarding QAD ERP and QAD EAM • QAD ERP - Manufacturing components • QAD EAM - Maintenance components

Easy On-Boarding Successful Manufacturing Components MRP / Material Releases Production Planning Bill-of-Material Planning Production Work Order Bill-of-materials Machine and Labor Scheduling Operator Instructions Finished Goods Cost tracked to: Components Finish Goods COGS

Easy On-Boarding Successful Maintenance Components Stock Replenishment Maintenance Planning Bill-of-Material Planning Maintenance/ Tooling Work Order Bill-of-materials Operator Instructions Machine and Labor Scheduling Work Order Complete / Release to Production Cost tracked To: Asset or Tool for Lifecycle Analysis

Easy On-Boarding Domain (Business) Space QAD ERP “Core Product” Production Making Products - Purchase Ingredients - Consume Ingredients - Sell a Product Tracking all Financials “Cost of Goods Sold” QAD EAM Enterprise Asset Management Operations Keeping the Plant Running - Purchase Repair Parts - Consume Parts - Maintain the Facility Tracking Indirect Costs “Cost of Ownership” EAM-OV-070

Easy On-Boarding QAD EAM Overview • Manages the assets of a business • For Plant Equipment and Facilities includes - design construction commissioning operation maintenance replacement Plant Operations Project Controls Management QAD ERP EAM-OV-060

QAD EAM Modules

Easy On-Boarding QAD EAM Overview – Modules • Maintenance - Equipment Efficiency - Plant Reliability • Inventory - Right Size MRO/Indirect Inventory - The right parts when you need them • Purchasing - Control MRO/Indirect Spend - Comply with Corporate Financial Manual Approvals • Project Controls - Manage Project Spend - Track True Acquisition Cost of Assets EAM-OV-080

Easy On-Boarding EAM Modules Purchasing Inventory Maintenance Project Controls EAM-OV-130

Easy On-Boarding Introduction to EAM Project Controls

Easy On-Boarding Project Controls Overview • Manage project accounting to consistently deliver on time and on budget • Track “Acquisition Costs” • Monitor and control spending Plant Operations - Against budget - By project, job or sub-job - Reallocate budgets from one project to another • Track scheduled payments and reimbursements EAM-OV-390

Easy On-Boarding Who uses EAM Project Controls? • • Finance Engineering Maintenance Inventory Purchasing Quality Fixed Asset Accounting Even sometimes – Manufacturing EAM-OV-320

Easy On-Boarding Important to Know • Types of Projects • Project / Jobs Setup and Controls EAM-OV-420

Easy On-Boarding Key Concepts – Four Types of Projects • Capital - Profit enhancements - Increase capacity - Replacement • Expense Key Characteristic: Results in New Asset(s) Key Characteristic: No Assets created - Annual rebuilds - Marketing / Legal / etc. • Customer Funded - Tooling - Prototype - Very common in Automotive Verticals • ETO (Engineer to Order) Key Characteristics: -Customer owns Asset -Customer pays you to build new production line to produce a part for them. -Customer will reimburse you for the cost to build the new production equipment. -When project is complete, the production line stays at your facility, BUT you do not own the production equipment – the customer does. Key Characteristics: -Build equipment to customer specifications -Scheduled reimbursement payments from customer -At completion of project, ship equipment to customer EAM-OV-430

Easy On-Boarding Project / Job Setup and Controls • Projects - Project level budget Project authorization Special Requisition Authorization by Project Audit traceability • Jobs - Work breakdown to smaller, more controllable components - Parent / Child Hierarchy - Budget, Lock, and Close functions at Job Level - Job Level Requisition Approval Groups EAM-OV-460

Easy On-Boarding Project Costs Collected • Purchasing - External Materials - Sub-Contractor Services • Labour • Internal Materials • Manual GL EAM-OV-460

EAM Project Controls Set Up Process 19

Easy On-Boarding Section Objectives • Define project accounting. • Set up business segments.

Project Controls Overview • Manage project accounting to consistently deliver on time and on budget • Track “Acquisition Costs” • Monitor and control spending - Against budget - By project, job or sub-job - Reallocate budgets from one project to another • Track scheduled payments and reimbursements Plant Operations

Easy On-Boarding Project Accounting • EAM downloads a project number from QAD ERP. • All project management is controlled in EAM. • Financial Transactions feed to QAD ERP. - Purchase receipts (material and contract labor) Material issues from EAM inventory Labor transactions Other (Manual GLs, such as interest expense) • Shared Tables / Information QAD ERP application Project Master EAM Project

Easy On-Boarding Project Accounting Features • Examples of types of projects: - Capital • Profit enhancements • Increase capacity • Replacement - Expense • Annual rebuilds • Marketing / Legal / etc. - Customer • Tooling • Prototype • Very common in Automotive Verticals

Easy On-Boarding Project Accounting Features • Project reporting - Consolidate projects based on business segment • Business segment can represent a plant or group of plants. With customer-funded projects, the business segment may be a client. - Report spending by fiscal year and lifetime - EAM Project Accounting Reports

Easy On-Boarding Project Accounting Features • Project controls - Record level security - Job hierarchy • Enables project engineers to break a project into smaller, more controllable components - Project authorization • Restricts internal and external spending until the project has been electronically authorized - Lock (stop spending) project or job • Prevents further spending against the job while final receipts against open purchase orders are processed - Audit traceability

Easy On-Boarding Project Accounting Features • Project administration - Copy project • Reduce the effort of creating similar projects repeatedly - Budget reallocation • Enables budgeted dollars to be reallocated from one project to another - Create equipment from project • Bridges the process of turning over the asset to operations

Easy On-Boarding Project Controls Process Flows 27

Project Controls Setup – Key Settings • Domain Settings - “Reopen Project? ” Flag - GL Options for Project Number • Site Settings - Accounting Defaults - Approvals on/off and hierarchies • MFG/PRO Interface Settings • Registry Settings - Business Segment Format - Job Format

Project Controls Setup – Key Settings • User ID - Project Approval Limits - Project Req Limits - Security • Project Approval Groups • Project Requisition Approval Groups • Record Level Control – OWNER Groups

Easy On-Boarding Questions? 30