Visteon-Shanghai Joint Venture Turns to QAD to Enable Lean Manufacturing

Visteon-Shanghai Joint Venture Turns to QAD to Enable Lean Manufacturing
CARPINTERIA, Calif.–June 5, 2006–QAD Inc. (NASDAQ:QADI), a leading provider of enterprise software solutions for global manufacturers, has announced that Yanfeng Visteon Automotive Trim Systems LTD has deployed enterprise software applications from QAD to enable lean manufacturing operations and achieve exceptional inventory and manpower efficiencies. The implementation of QAD's Global Enterprise Edition (GXE) has enabled Yanfeng Visteon to gain dramatic reductions in material inventory, substantial reductions in stock space, and enhanced data for logistical support and personnel savings.

Yanfeng Visteon, a joint venture between SAIC Motor Corporation Limited, one of China's largest automotive manufacturers, and Visteon International Holdings Corporation, one of the world's preeminent automotive component manufacturers, is the leading supplier of spare parts for cars and trucks within China.

Like North American auto and truck manufacturers, the joint-venture company has been faced with the need to change its business processes to reduce inventory costs, enable higher productivity, and meet the requirements associated with sequencing assembly projects. The company's streamlining of operations using QAD provides cost as well as competitive benefits.

QAD's software and expertise in lean systems has allowed Yanfeng Visteon to gain a critical advantage over other Chinese companies. Using QAD GXE, Yanfeng Visteon has cut materials inventory, reduced stock area, and cut logistics staff, enabling the company to achieve efficiencies that are unmatched by other enterprise solutions available today, as noted by company executives.

Based on Toyota standards for lean manufacturing that are widely accepted by the automotive industry, QAD's Lean Manufacturing solution helps manufacturers effectively use Kanban systems to align inventory with demand for pull-based replenishment. It integrates electronic representation of Kanban processes with core ERP functions to provide comprehensive level loading, tracking, and visibility of production, and supports electronic Kanban as well as physical card-based visual systems.

Even distant suppliers can follow the progress of parts as they flow through the manufacturing process, and manufacturers can gauge — and control — the cost of supplies and inventory holdings.

QAD Lean Manufacturing helps streamline supply chain communication so that companies can understand real customer demand and calibrate production to take advantage of advanced manufacturing techniques such as continuous flow, pull replenishment, and Kanban visualization. The software also delivers leading-edge functionality for business-critical concerns such as shared services, regulatory compliance, enterprise integration, industry compliance, and much more. Bringing centralized control of data for global operations, QAD GXE delivers flexibility and efficiencies across the supply chain.

"Our mantra of `globalize to stabilize' manufacturing is as important inside China as it is beyond the main continent," said Pamela Lopker, QAD chairman and president. "As Chinese companies seek to gain competitive advantages over other manufacturing operations in their country, the ability to deploy lean, pull-based systems can bring great returns."

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies. QAD applications 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, industrial, and life science products use QAD applications at approximately 5,500 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone 805-684-6614, or visit the QAD Web site at: www.qad.com.