Case Study I

1. Case Study I EGN 5621 Enterprise Systems CollaborationSummer B, 2014

2. Operate a Distribution Company(Operations & Trial Run) EGN 5621 Enterprise Systems Collaboration

3. Each time should have 3-4 participants. • Each team operates a bottle distribution company. • Participants make business decisions to ensure the profitability of their operation, using standard reports. Teams

4. 6 products (boxes of 12x1L and 24x500mL) • 3 areas with distinct marketing accounts • One distribution channel: 18 • Market size of about € 6,000 per company per step North 45 retailers West 40 retailers The (German) Market South 38 retailers

5. The 6 Products

6. 20 min 20 min 20 min 20 steps 20 steps 20 steps The Game Layout Design

7. 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

8. 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 in the same team (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

9. 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

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

11. 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

12. 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

13. 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

14. Participant’s job aid

15. Server: Vichy Client: 495 Application Server: vichy.cob.csuchico.edu System ID: VIC System #: 31 SAP ERPsim Server, and Client for Distribution

16. SAP ERPsim Server, and Client for Distribution

17. Set up teams: • Companies : A to D for Pilot Run and E to H for real. • 3- 4 persons in a team • Userid: $# • Where • $ = Assigned team letter, • # = User 1 to User 4 • Password: ERPSIM Getting Started:

18. Client = 495 Login: $# Where $ = Team, # = User 1 to User 4 Password: ERPSIM You will have to change your password the first time you enter Login information

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

20. Distribution Game: Round 1 20 min 20 steps

21. Check initial inventory

22. Check Financial Statement

23. Check Financial Statement

24. Check Initial Financial Statement

25. 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)

26. Cost, inventory & initial pricing

27. 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)

28. Participant’s job aid & Menu

29. Maintain Prices for DC 18

30. Marketing expenses

31. 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

32. Stock in material overview

33. Check sales summary report

34. Check market report

35. Check sales order report

36. Distribution Game: Round 2 20 min 20 steps

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

38. Participant’s job aid & Menu

39. Create Planned Ind. Requirements

40. Create Planned Ind. Requirements

41. Execute MRP

42. After the MRP run

43. Convert purchase requisitions into purchase orders

44. Track purchase orders

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

46. Distribution Game: Round 3 20 min 20 steps

47. 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 !

48. Participant’s job aid & Menu

49. Forecasting

50. Now start the simulator for the last 20 steps The Distribution Game:Round 3 (20 steps)