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Transcript of Case Study 2: Operate a Manufacturing Company (I) EGN 5621 Enterprise Systems Collaboration...
![Page 1: Case Study 2: Operate a Manufacturing Company (I) EGN 5621 Enterprise Systems Collaboration (Professional MSEM) Fall, 2011.](https://reader036.fdocuments.in/reader036/viewer/2022062421/56649f415503460f94c60592/html5/thumbnails/1.jpg)
Case Study 2:Case Study 2:Operate a Manufacturing Operate a Manufacturing
Company (I)Company (I)
EGN 5621 Enterprise Systems Collaboration(Professional MSEM)
Fall, 2011
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ObjectiveObjectiveThe objective of the Manufacturing
introductory ERPsim is to provide a quick hands-on experience of an integrated business process through an ERP manufacturing ERPsim, which combines basic operation functions, such as planning, sales, production, procurement, marketing, investment, and financial accounting for learning how to make business strategy and business decisions.
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Corporate Roles DesignationCorporate Roles DesignationCEO (Team Leader)
◦Watch financial statement◦Price market report◦Check summary sales report◦Check sales and market data◦Check inventory Report
Marketing Manager◦Marketing Expense Planning◦Price market report◦Check sales and market data
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Corporate Roles DesignationCorporate Roles DesignationSales & Marketing Manager
◦Change prices◦Check sales and market data◦Check summary sales report
MM Manager◦Forecast – create planned indep. Req.◦MRP run◦Automatic generation of POs◦Purchase Order Tracking◦Release production orders◦Monitor production schedule◦Check inventory Report◦Product cost analysis
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Operations in the Operations in the cash-to-cash cyclecash-to-cash cycle
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The Virtual Business EnvironmentThe Virtual Business Environment
Simulation of a market
Automation of administrative tasksAutomation of administrative tasks
Simulation of the passing of time
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Organizational elementsOrganizational elements
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Organizational elementsOrganizational elements
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Organizational elementsOrganizational elements
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Organizational elementsOrganizational elements
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Data model of the main master Data model of the main master data used in the simulation gamedata used in the simulation game
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Definition of master data (1/2)Definition of master data (1/2)
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Definition of master data (2/2)Definition of master data (2/2)
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List of master data to create for List of master data to create for the simulationthe simulation
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Muesli CerealsMuesli Cereals
Raisins
Oats
Strawberries
Wheat
Blueberries
Nuts
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Your 6 productsYour 6 products
40% wheat40% oat20% nut1 box1 bag
35% wheat35% oat10% raisin10% nut5% strawberry5% blueberry1 box1 bag
50% wheat50% oat1 box1 bag
40% wheat40% oat20% raisin1 box1 bag
40% wheat40% oat20% strawberry1 box1 bag
40% wheat40% oat20% blueberry1 box1 bag
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Data model of product Y$-F06Data model of product Y$-F06
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German marketGerman market
NorthDC10: 2 retailers
DC12: 19 retailers
SouthDC10: 7 retailersDC12: 23 retailers
WestDC10: 3 retailers
DC12: 17 retailers
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Muesli Muesli Manufacturing Manufacturing Association Label Association Label RegulationRegulation
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Input CostInput Cost
at low seasonal priceat low seasonal price
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Number of stores by Number of stores by
geographical areageographical area
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DC10DC10
HypermarketsHypermarketsBuy only large boxes (1 kg)Payment delay of 20 stepsMore sensitive to priceLess sensitive to advertisingWill have a stronger preference for 3
particular products during the simulation
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DC12DC12
Grocery chainsGrocery chainsBuy 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
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DC14 Independent grocersDC14 Independent grocers
(will be used in Extension ERPsim)(will be used in Extension ERPsim)
Only buy small boxes (0.5 kg)Less price sensitiveSensitive to advertisingPayment delay of 5 to 15 stepsWill have a stronger preference for 3
particular products during the simulation
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Number of retailers per Number of retailers per
LocationsLocations
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Risk premium on credit Risk premium on credit ratingsratings
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Review of the major rulesReview of the major rulesYou don’t change the recipe of a product in
the mfg introduction gameCustomers preferences do not change
throughout the game, hence you may 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 timesThe 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.
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Elements of a winning Elements of a winning strategystrategyUse the ERP system efficientlyDo not run out of stockDelays and production capacity
constraints are important elements of the game
Team organization is more important than you think
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Game layoutGame layout
30 steps30 min
30 steps30 min
30 steps30 min
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Rules of the gameRules of the game
• 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
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Participant’s job aidParticipant’s job aid
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Let’s get started!Let’s get started!• Create your team : • Max 4 persons : User 1 to User 4• Up to 26 company : A to Z
• Log in using user name and passwords giving by your teacher
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Login informationLogin information
Client 265
Login : intro_$#$ = Team, # = User 1 to User 4
Password: ERPSIM
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SAP Menu & NavigationSAP Menu & Navigation
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Introductory Game: Introductory Game: Round 1Round 1
30 steps30 min
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Cost, inventory & initial pricingCost, inventory & initial pricing
Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06
Name
Nut Muesli1.0 kg.
BlueberryMuesli1.0 kg.
StrawberryMuesli1.0 kg.
Raisin Muesli1.0 kg.
OriginalMuesli1.0 kg.
Mixed FruitMuesli1.0 kg.
Raw material Cost € 1.53 € 1.97 € 1.97 € 1.38 € 1.36 € 1.76
Standard cost € 2.48 € 3.09 € 3.09 € 2.50 € 2.65 € 2.89
Initial price 1012
€ 4.24€ 4.49
€ 5.18€ 5.43
€ 5.18€ 5.43
€ 3.92€ 4.17
€ 3.87€ 4.12
€ 4.75€ 5.00
Initial stock 100,000 100,000 100,000 100,000 100,000 100,000
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The Introductory game:The Introductory game:Round 1 (30 steps- days)Round 1 (30 steps- days)• You have initial inventory for each finished product (100,000 for each)• 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 maintain the price of your 6 products and invest in
marketing.• You need to know how to : • Maintain price list and make plan for marketing investment• Watch available stock• Monitor sales orders• Monitor your profit !
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Participant’s job aid & MenuParticipant’s job aid & Menu
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Check product costingCheck product costing
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Maintain Prices for DC 10 & 12Maintain Prices for DC 10 & 12
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Marketing expenseMarketing expense
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Stock in material overviewStock in material overview
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Check sales summary reportCheck sales summary report
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Check sales order reportCheck sales order report
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Check market reportCheck market report
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Check Financial StatementsCheck Financial Statements
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The Introductory game:The Introductory game:Round 1 (30 steps – 30 days)Round 1 (30 steps – 30 days)
We start the simulator for 30 steps
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Introductory game: Introductory game: Round 2Round 2
30 steps30 min
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The Introductory game:The Introductory game:Round 2 (30 steps- days)Round 2 (30 steps- days)
• You finished goods will be carried over to the round 2 if your still have inventory in 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.• You can produce your products in Q2 by converting planned orders
to production orders.• You continue to maintain your prices and make investment in
market.
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Parameters of the gameParameters of the game
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Participant’s job aid & MenuParticipant’s job aid & Menu
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Release production orderRelease production order
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Release Production Orders (CO41)Release Production Orders (CO41)
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Check Production ScheduleCheck Production Schedule
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The Introductory game:The Introductory game:Round 2 (30 steps - days)Round 2 (30 steps - days)
We start the simulator for 30 steps
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Introductory game: Introductory game: Round 3Round 3
30 steps30 min
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The Introductory game:The Introductory game:Round 3 (30 steps- days)Round 3 (30 steps- days)
• You finished goods and raw materials will be carried over to the round 2 if your still have inventory in the end of the round 2.
• You can buy any raw materials in Q3.• You can produce your products in Q3.• You need to create independent requirement plan for your products,
run MRP to create purchase requisitions and planned orders, convert purchase requisitions to production orders, and
• release planned orders to production orders.• You continue to maintain your prices and make investment in
market.
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Participant’s job aid & MenuParticipant’s job aid & Menu
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Create Planned Independent Create Planned Independent Requirement for 6 Finished Requirement for 6 Finished Products (MD61)Products (MD61)
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Forecasting salesForecasting sales
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Execute MRPExecute MRP
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After the MRP runAfter the MRP run
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Automatic Creation of Purchase Automatic Creation of Purchase Orders from Requirement (ME59)Orders from Requirement (ME59)
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Convert purchase requisitions into Convert purchase requisitions into purchase orderspurchase orders
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Track purchase ordersTrack purchase orders
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Purchase Order Tracking(ZME2N)Purchase Order Tracking(ZME2N)
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Raw material cost per PORaw material cost per PO
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Collective Conversion of Planned Collective Conversion of Planned Order (CO41)Order (CO41)
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Release production orderRelease production order
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Release Production Orders (CO41)Release Production Orders (CO41)
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Check Production ScheduleCheck Production Schedule
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The Introductory game:The Introductory game:Round 3 (30 steps – 30 days)Round 3 (30 steps – 30 days)
We start the simulator for the last 30 steps