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Final Project A case study of The Real-Time Supply Chain System in Company I. Group 2 Members:. 923811 Angela 923824 Ivan 923831 Jimmy. Outline. Introduction As-is Model Problems Discussion To-be Model Conclusion. Outline. Introduction As-is Model Problems Discussion

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final project a case study of the real time supply chain system in company i

Final ProjectA case study ofThe Real-Time Supply Chain System inCompany I

Group 2

Members:

923811 Angela

923824 Ivan

923831 Jimmy

outline
Outline
  • Introduction
  • As-is Model
  • Problems Discussion
  • To-be Model
  • Conclusion
slide3

Outline

  • Introduction
  • As-is Model
  • Problems Discussion
  • To-be Model
  • Conclusion
introduction
Introduction
  • Company I
  • Challenge
  • Purpose
      • Real-Time
      • Cycle Time48hr → 24hr
slide5

Outline

  • Introduction
  • As-is Model
  • Problems Discussion
  • To-be Model
  • Conclusion
as is model
As-is Model

Purchaser

(Company I)

Current Purchasing

System

Warehouse

SAP ERP Sys.

Supplier

EDI 830

Material Incoming Plan

(14D+10W+3M)

Sales

Dept.

RUN MRP

(00:00AM)

Shortage

List

Manufacture

Key-in SAP

(Receiving Qty)

Ready to

deliver

QI Process

Warehouse

(Qty)

Pass

as is model1
As-is Model

Purchaser

(Company I)

Current Purchasing

System

Warehouse

SAP ERP Sys.

Supplier

Material Incoming Plan

(14D+10W+3M)

Sales

Dept.

RUN MRP

(00:00AM)

Shortage

List

Manufacture

Key-in SAP

(Receiving Qty)

Ready to

deliver

QI Process

Warehouse

(Qty)

Pass

as is model2
As-is Model

Purchaser

(Company I)

Current Purchasing

System

Warehouse

SAP ERP Sys.

Supplier

Material Incoming Plan

(14D+10W+3M)

Sales

Dept.

RUN MRP

(00:00AM)

Shortage

List

Manufacture

Key-in SAP

(Receiving Qty)

Ready to

deliver

QI Process

Warehouse

(Qty)

Pass

as is model3
As-is Model

EDI 850

EDI 830

Customer

PO

SAP

DB

Priority

I2 FP

Company I

Web Server

EDI 850

EDI 830

DB

Oracle, SQL….

Supplier

slide10

Outline

  • Introduction
  • As-is Model
  • Problems Discussion
  • To-be Model
  • Conclusion
problems discussion
Problems Discussion
  • Demand Accuracy
  • Supplier Status Visibility
  • Shipment Visibility
  • IQC Status Visibility
  • Two B2B Cycle Gap
demand accuracy

Material Incoming Plan

(14D,10W,3M)

Shortage List

Sales Dept.

New Sales

Orders

EDI

Production

Ready to

deliver

High level inventory

Manual communications

Demand Accuracy

Purchaser

(Company I)

SAP ERP

Sys.

Current Purchasing

System

Supplier

Warehouse

RUN MRP

(00:00 AM)

Variance of

Demand

Key-in SAP

(Receiving Qty)

QI Process

Warehouse

(Qty)

Pass

problems discussion1
Problems Discussion
  • Demand Accuracy
  • Supplier Status Visibility
  • Shipment Visibility
  • IQC Status Visibility
  • Two B2B Cycle Gap
supplier status visibility

New Sales

Orders

Raw

Material

Order

Inquiry

Work

Order

?

Finish

Good

Ready to

deliver

Check inventory via phone

Supplier Status Visibility

Purchaser

(Company I)

SAP ERP

Sys.

Current Purchasing

System

Warehouse

Supplier

RUN MRP

(00:00 AM)

Shortage List

Sales Dept.

Material Incoming Plan

(14D,10W,3M)

Purchaser doesn’t know the inventory and supplier’s production planning

Key-in SAP

(Receiving Qty)

QI Process

Warehouse

(Qty)

Pass

problems discussion2
Problems Discussion
  • Demand Accuracy
  • Supplier Status Visibility
  • Shipment Visibility
  • IQC Status Visibility
  • Two B2B Cycle Gap
shipment visibility

Information flow

?

?

Where the

Material

Shipment Visibility

Purchaser

(Company I)

SAP ERP

Sys.

Current Purchasing

System

Warehouse

Supplier

RUN MRP

(00:00 AM)

Shortage List

Sales Dept.

Material Incoming Plan

(14D,10W,3M)

New sales

orders

Production

EDI

Ready to

deliver

Key-in SAP

(Receiving Qty)

QI Process

Warehouse

GR (Qty)

Pass

Manual communication

problems discussion3
Problems Discussion
  • Demand Accuracy
  • Supplier Status Visibility
  • Shipment Visibility
  • IQC Status Visibility
  • Two B2B Cycle Gap
iqc status visibility

RUN MRP

(00:00 AM)

Shortage List

Sales dept.

Material Incoming Plan

(14D,10W,3M)

Supplier can’t get the result of inspection in the real time

IQC Status Visibility

Purchaser

(Company I)

SAP ERP

Sys.

Current Purchasing

System

Warehouse

Supplier

New sales

orders

QI Process

EDI

Key-in SAP

(Receiving Qty)

Ready to

deliver

QI Process

IQC reject

Warehouse

(Qty)

Pass

Replenishment

Delay

Manual communication

problems discussion4
Problems Discussion
  • Demand Accuracy
  • Supplier Status Visibility
  • Shipment Visibility
  • IQC Status Visibility
  • Two B2B Cycle Gap
two b2b cycle gap

?

Update

MRP Data

Gap

Unchanged

data

Shortage list

(afternoon)

RUN MRP

(afternoon)

Material Incoming Plan (14D, 10W, 3M)

Key-in SAP

(Qty)

Ready to

deliver

Second

receiving

Two B2B Cycle Gap

Current Purchasing

System

SAP ERP

Sys.

Warehouse

Supplier

Shortage List

Sales dept.

RUN MRP

(00:00 AM)

Material Incoming Plan

(14D,10W,3M)

Key-in SAP

(Receiving

Qty)

Ready to

deliver

(In Transit)

First

receiving

Double Count

to be purchasing process model

To-Be Purchasing Process Model

(1)Forecast and Forecast Commitment Process(2)Pull Signal Status Process(3)Hub Inventory Status Process

construct the Real-Time Supply Chain Systemfor exchanging the information

data flow
Data Flow

Real-Time Supply Chain System

Company I

Supplier

Forecast (14D,10W+3M)

Forecast

Forecast Commit

Pull Signal with lot#

Order Commit (ETD/ETA)

PO

Status

Actual delivery time

PO Status

Pull

Signal

PO Bal Qty / Invoice Price

PO Qty / Price Variance

QI

Status

Received qty, rejected qty

Product,WIP,raw material

Less than Safety inventory

Buffer

Policy

PO status

Delivery status

1 forecast and forecast commitment process

Forecast

Commit

XML

Feedback how many demands they can commit according to MPS

(1)Forecast and Forecast Commitment Process

Warehouse

SAP MRP System

Real-Time Supply Chain System

Supplier

Purchase Dept.

Run MRP

Consolidate

Demand

6 M Forecast(14D,10W,3M)

Know whether the supplier can satisfy the future demand or not.

New SO

ERP

Update MRP

Data

Prevent the shortage in advance.

Reduce the safety inventory

2 pull signal status process

Prepare for receiving

Key-in SAPReceived QTY

check

Defective items

Quantity of goods and the departing time

QI

Process

Rejected QTY

Bar Code

Warehouse

Key-in SAP

Prepare shipment

Prepare replenishment

(2)Pull Signal Status Process

Warehouse

SAP MRP System

Real-Time Supply Chain System

Supplier

Purchase Dept.

Update

MRP System

Expected Time to Deliver (ETD)

Expected Time to Arrive (ETA)

Expected delivery quantity

ERP

Pull Signal

Status

This mechanism makes replenishment more efficient

Company I can get the in-transit qty, ETD, ETA and so on.

3 hub inventory status process

Raw Material WIP, Product

Mapping Table

Mapping

PO# and SO#

Product,WIP,

Raw Material, and the status of PO

know the

status of

appointed

key component

Query

Product、WIP、Raw Material

(3)Hub Inventory Status Process

Warehouse

SAP MRP System

Real-Time Supply Chain System

Supplier

Purchase Dept.

SFC system

Warehouse

 Company I monitors the inventory to prevent the shortage.

 This can also help Inventec response customer’s inquiry quickly.

ERP

Hub

Inventory

Status

the architecture of real time supply chain system

Integrate non-homogeneous OS and DB

Company I

SAP DB

User

Hub Server

Xagent Server

IIS,Mail Server,etc.

query

SAP

XAgent

SAP

Client

Aggregation Server

XML

SAP App Server

Control Xagents to collect data from the DB

and update data to the corresponding fields

Proxy Server

Firewall

internet

User

Proxy Server

Firewall

Supplier

XML

Oracle ERP

JDBC XAgent

Existing system

Oracle

Oracle JDBC

New system

The Architecture of Real-Time Supply Chain System
information flow

Temp

Xagent

Analysis Report

Information Flow

a. Forecasting Planb. Actual Demand Planc. Material #

Xagent links to the database and

collect the data

Xagent

XML

SAP

Xagent sends the data into the supplier’s database directly

Agg. Server

Xagent

Oracle

a. on-hand qtyb. WIP qtyc. Allocate forecast qtyd. Commitment plane. Item# cross-reference

Also, the supplier feedbacks the information by Xagent

  • Time Trigger ex:MRP
  • Event Trigger
  • Pulling (when data change)
expected benefit
Expected Benefit

1. Prevents the shortage in advance

2. Makes replenishment more efficient

3. Gets the in-transit qty, ETD, ETA and so on

4. Decreases cycle time

5. Reduces supplier’s safety inventory

6. Improves customer service

conclusion
Conclusion
  • In the project, Company I and the supplier try to plan collaboratively ,find out the problem timely, and solve the problem in advance. And they use the real-time supply chain system to exchange the information
  • This project is proceeding now. Success of this project
  • depends on the cooperation of both sides in the
  • managerial and technical aspects. Then, it can make
  • the information system align around business
  • processes.