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This manufacturing case study provides a hands-on experience of integrated business processes in a simulated environment, covering planning, sales, production, procurement, marketing, and financial accounting.
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Case Study 3:Operate a Manufacturing Company (Introduction) EGN 5621 Enterprise Systems Collaboration Professional (MSEM)Fall, 2012
The objective of this manufacturing case study is to provide a hands-on experience of an integrated business process in the simulated environment, which integrates basic operation functions of planning, sales, production, procurement, marketing, and financial accounting for learning how to run a manufacturing operation and make business decisions. Objective
Corporate Roles Designation • CEO (Team Leader) • Read financial statement • Read price market report • Read summary sales report • Monitor sales and market data • Read inventory Report • Marketing Manager • Plan marketing expense • Read price market report • Monitor sales and market data 3
Corporate Roles Designation • Sales Manager • Change prices • Work with the material manager on forecasting • Read sales and market data • Check summary sales report • Material Manager • Forecast (to create planned independent requirements) • Run MRP • (Automatically) generate POs • Track purchase orders • Release production orders • Monitor production schedule • Check inventory report • Analyze product cost 4
The Virtual Business Environment Simulation of a market Automation of administrative tasks Simulation of the passing of time
Wheat Oats Nuts Raisins Blueberries Strawberries Muesli Cereals
40% wheat 40% oat 20% nut 1 box 1 bag 40% wheat 40% oat 20% raisin 1 box 1 bag 40% wheat 40% oat 20% blueberry 1 box 1 bag 50% wheat 50% oat 1 box 1 bag 35% wheat 35% oat 10% raisin 10% nut 5% strawberry 5% blueberry 1 box 1 bag 40% wheat 40% oat 20% strawberry 1 box 1 bag Your 6 products
$$-P01 $$ $$-P02 $$-R01 $$-F06 $$-R02 $$-F06 $$-F06 $$-R03 $$-R04 Data Model of product $$-F06 $$-R05 $$-R06
North DC10: 2 retailers DC12: 19 retailers West DC10: 3 retailers DC12: 17 retailers South DC10: 7 retailers DC12: 23 retailers German market
Buy only large boxes (1 kg) • Payment delay of 20 steps • More sensitive to price • Less sensitive to advertising • Will have a stronger preference for 3 particular products during the simulation DC10: Hypermarkets
Buy small boxes (0.5 kg) and large boxes (1 kg) • Payment delay of 10 to 15 steps • Will have a stronger preference for 4 particular products during the simulation DC12: Grocery Chains
Only buy small boxes (0.5 kg) • Less price sensitive • Sensitive to advertising • Payment delay of 5 to 15 steps • Will have a stronger preference for 3 particular products during the simulation DC14: Independent grocers(to be used in the Extension Case)
You don’t change the recipe of a product in this mfg introduction game • Customers’ preferences do not change throughout the game; you may like to learn from their past behavior • The company displaying the highest shareholder’s equity at the end of the simulation wins the game • You must behave ethically at all times • The end of game inventory will be value at cost price in the final balance sheet. Therefore, you shouldn’t sell under cost at any time during the game. Major Operation Rules
Develop your team’s operations strategy • Monitor and modify the strategy, when necessary • Use the ERP system efficiently • Do not run out of stock • Be aware of delays and production capacity constraints • Team organization and communication are important. Operations tips
25 min 25 min 25 min 30 steps 30 steps 30 steps Game Layout
Each round will be of 30 steps (approx 1 min per step) • End-of-round inventory is carried over to the next round • You can sell a product only if you have it in stock • You compete against the other teams and importers • Your objective is to maximize profit Game Rules
Create your team : • Max 6 persons : User 1 to User 6 • Up to 26 company : A to Z • Develop your team’s operations strategy • Log in using user name and password given by the instructor Let’s Get Started!
Client 810 Login : $# $ = Team, # = User 1 to User 6 Password: ERPSIM Login Information
Introductory Game: Round 1 25 min 30 steps
You have initial inventory for each finished product (100,000 for each finished product) • You will sell your available products in Q1. • You can’t buy any raw materials in Q1. • You can’t make plan, run MRP, and produce any finished goods in Q1.. • You need to know how to : • Maintain price list and make plan for marketing investment • Watch available stock • Monitor sales orders • Monitor your profit ! The Introductory Game:Round 1 (30 Steps- Days)
We start the simulator for 30 steps The Introductory Game:Round 1 (30 steps – 30 days)
Introductory Game: Round 2 25 min 30 steps
You finished goods will be carried over to the round 2 if your still have inventory at the end of the round 1. • You have initial raw materials which are enough to make 100,000 of your each product. • You can’t buy any raw materials in Q2. • Planned orders for all six finished products have been created by ERPsim. You can produce your products in Q2 by converting planned orders to production orders. • You can’t change the planned orders, and can’t run MRP • You continue to maintain your prices and make investment in market. The Introductory Game:Round 2 (30 Steps- Days)
