Enterprise Systems Collaboration

1. Enterprise Systems Collaboration EGN 5621 Enterprise Systems CollaborationSummer B, 2012

2. To learn how the ERP system supports business strategies. • To develop technical skills of making decisions using an enterprise software • To acquire a hands-on understanding of the concepts underlying enterprise systems operation • To appreciate first hand, the tangible benefits of enterprise systems integration Course Objectives

3. You (your team) will operate a company in a simulated business environment to compete with several other competitors (i.e., other teams). • You (each team) will decide on business strategies and make business decisions toward maximum operation profit for your company, using an enterprise information system. The Operations Scenario

4. CEO (Team Leader) • Watch financial statement • Review price market report • Check summary sales report • Check inventory Report • Marketing Manager • Marketing Expense Planning • Review Price market report • Review summary sales report • Sales Manager • Change product prices • Check sales order report • Check summary sales report • MM Manager • Forecast – create planned indep. Req. • MRP run • Automatic generation of POs • Purchase Order Tracking • Check inventory Report Corporate Roles Designation

5. Simulation of a market Automation of administrative tasks Simulation of the passing of time The Virtual Business Environment

6. The Integrated ERP Environment Automated Business Processes

7. Automated Sales Automated Procurement Automated Planning The Simulated ERP Environment Watch this video clip for more information about ERPsim: http://www.youtube.com/watch?v=qzqiRsuY4gg Automated

8. Three Case Studies

9. Covers the following processes and operations: • Planning and Purchasing • Sales and Marketing The Distribution Case

10. Covers the following processes and operations: • Planning and Purchasing • Transfers and logistics (Pull or push mode) • Sales • The focus is set on data analysis • Overstock, out of stocks and wrong allocations of products can be costly to the team • Students must analyse data to understand the market and make better decisions The Logistics Case

11. Covers the following processes and operations: • Planning and Purchasing • Production • Sales and Marketing • Master Data (BOM) • Allows for the reversal of the business cycle The Manufacturing Case

12. Covers the following processes and operations: • Planning and Purchasing • Production • Sales and Marketing • Master Data (BOM) • Advanced Options • Warehousing Costs • Production improvement • Automatic asset depreciation posting • Interest, Bank Loans, and Credit Rating Management The Manufacturing Case Extended

13. Operate a Distribution Company(Pilot & Operation-Run) EGN 5621 Enterprise Systems CollaborationSummer B, 2012

14. Each time should have 4 participants at most. • Each team operates a bottle distribution company. • Participants make business decisions to ensure the profitability of their operation, using standard reports. Teams

15. 6 products (boxes of 12x1L and 24x500mL) • 3 areas with distinct marketing accounts • One distribution channel: 14 • Market size of about € 6,000 per company per step North 45 retailers West 40 retailers The (German) Market South 38 retailers

16. The 6 Products

17. 25 min 25 min 25 min 20 steps 20 steps 20 steps The Game Layout Design

18. Each round will be of 20 steps (a bit more than 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 Rules of the game

19. An enterprise system is built around an integrated database • A system such as SAP contains tens of thousands of data tables • When a user creates, changes or views data in the system, he or she performs a transaction • Data changed or created by one user can be exploited by all other users (ex. reporting, tracking, execution of orders, etc.) • All transactions are traceable, transactions with financial impacts can be reversed, never erased ABC of the Enterprise system

20. Users interact with the enterprise system through transactions. • A large number of pre-programmed transactions exist in SAP • Each transaction has a transaction code – one can call a transaction if one knows the transaction code • The SAP menuallows to browse and find the desired transaction • One can create a user menu or a list of favorites with the commonly used transactions User interface

21. Extras / Settings / Display Technical Names SAP Menu & Navigation

22. Reports and queries are transactions that allow users to view existing data • A typical query is performed as follows: • In the first page of the transaction, you must enter the selection criteria for the query (ex. Company code, product code, etc.) • Then, click on to execute the query • A table containing the requested data will appear • The display and layout can sometimes be modified Reports and queries

23. Some transactions are designed to change or create new data (change forecast, release purchasing orders, change sale price, etc.) • The interface varies according to data required by the system • The system will not allow you to save information if all the compulsory fields have not been filled • You must save/release/confirm before exiting the transaction Entering new data

24. Use the navigation buttons to go back or get out of a transaction • You can open up to 6 sessions. Click on to open a new session • Delete , search , select all , view , enter . Other useful buttons

25. Participant’s job aid

26. Set up teams: • Max 4 persons: User 1 to User 4 • Up to 26 companies : A to Z • Log in using user name and password given by the instructor. Getting Started:

27. Client: 610 Login: intro_$ # Where $ = Team, # = User 1 to User 4 For example: intro_A1 Password: ERPSIM You will have to change your password the first time you enter Login information

28. Distribution Game: Round 1 25 min 20 steps

29. Cost, inventory & initial pricing

30. Initial Financial Status: • 11000 Fix Assets 250,000 • 70000 Common Stock (500,000) • 113300 Bank Cash Account 146,060 • 792000 Finished Goods 103,940 The Distribution Game:Quarter 1 (20 virtual steps)

31. You need to maintain the price of your 6 products and invest in marketing. • Need to know the following in order to make decisions: • Maintain price list • See available stock • Monitor sales orders • Monitor competitors The Distribution Case: Round 1 (20 steps)

32. Participant’s job aid & Menu

33. Maintain Prices for DC 14

34. Marketing expenses

35. Enter your daily marketing budget for each product and for each region • The impact of marketing in one region depends on your share of all marketing expenses in this region • Marketing induces customers to find your product “more desirable” • The daily marketing budget can be changed at any time On marketing

36. Stock in material overview

37. Check sales summary report

38. Check market report

39. Check sales order report

40. Now start the simulator for 20 steps The Distribution Game:Round 1 (20 steps)

41. Distribution Game: Round 2 25 min 20 steps

42. You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold. It’s time to replenish !

43. Participant’s job aid & Menu

44. Execute MRP

45. After the MRP run

46. Convert purchase requisitions into purchase orders

47. Track purchase orders

48. Now start the simulator for 20 steps The Distribution Game:Round 2 (20 steps)

49. Distribution Game: Round 3 25 min 20 steps

50. You need to replenish. Change your forecast to adapt the replenishment levels to your needs • What do you need to know in order to make that decision ? It’s time to replenish !