Enterprise Business Processes and Reporting

(IS 6214)

MBS MIMAS

12th Jan 2011

Fergal CartonBusiness Information Systems

Last week• ERP system sample screens• ERP and control• Evolution of ERP• Integration is a question of design• Cucina project overview• Notes on Arbutus breads• First IS 6216 class on Friday 7th Jan, Lab 1.111

This week• How managers work• Managers require information• ERP reports and getting “one truth”• Main ERP modules and demos• Types of data• Latency and response times in entreprise reporting• Refresh rates• The requirement for real time information• Recipe and inventory data for Cucina

How managers do their work

• What is happening? Actual

• What should be happening? Plan

• What therefore would happen if? What-if?

• Adjust plan and/or change actual Manage

Plan

Buy

Make

Deliver

Bill and collect

Approve & Pay

Report results

Sell

Install

Maintain

Recruit

Manage

Reward

Manufacturing

Finance Sales / CS HR

Market

DevelopBudget

Management informationProduct

s

Cash Customers

People

•Integrated data (single point of entry)

Managers require information

Different types of report exist:

• Scheduled reports (produced periodically)

• Exception reports (produced when something unusual happens)

• Demand (ad-hoc) reports (specific reports requested by a user)

ERP Reports

Why is “one truth” so hard?

• Eg. Up to date picture of revenue?

– Easy bit: • all product shipped to date

– Hard bit:• Spares, loaners, replacement machines, …• Deduct any current credit notes• Add any outstanding debts from previous invoices• Apportion revenue from service contract (12 months)• Allow for discount to be applied if paid on time• Currency exchange rate fluctuations …• …

– Revenue recognition “rules”

Production planning and forecastIn theory, it’s simple– Sales forecast future demand for products– Production plan to meet forecast sales

But, in real life, there are many contingencies:

– Sales tend to be optimistic– Most businesses exhibit seasonality– Customers are unpredictable– Forecasts are based on average prices– Yield may be poor due to quality issues– …

Key modules

SAP demos• Sales (order to cash)

– http://www.youtube.com/watch?v=Qa0gRHw66XM– http://www.youtube.com/watch?v=LCtqrSEcpU4&feature=related

• Financials– http://www.youtube.com/watch?v=ObIpO0X5iPA&feature=related

Type of data : Cucina

• What are the types of data you have for Cucina?

Type of data : static

• What are the types of data you have for Cucina?

Ingredient Unit CIA

200

Flour g 200Olive Oil ml 10Salt g 6Sugar g 2Yeast g 4Water ml 275

Material Unit Inve

nto

ry 3

1/12

/08

Supplier Co

st p

er U

nit

Flour Kg 40 Farino Fratelli 0.65Olive Oil L 30 Farino Fratelli 9.45Salt Kg 5 Musgrave's 1.25Sugar Kg 6 Musgrave's 1.10Yeast Kg 5 Musgrave's 32.00

ID Name Address 1 Address 2666803 Topaz Blackrock Castle Filling Station Blackrock 821638 Topaz Riverstick Dunkettle Road Riverstick671102 Topaz Marina Marina Service Station Center Park Road495450 Topaz Straight Road O'Reilly's Carrigrohane Road917750 Topaz Lady's Well O'Reilly's Service Station Leitrim Street299088 Topaz Wilton Wilton Motors Wilton

Code Description Unit weight (g)CIA200 Ciabatta (200g) 200CIA200-P Ciabatta Panino (200g) 200CIA300 Ciabatta (300g) 300CIA300-WW Ciabatta Whole Wheat (300g) 300CIA300-M Ciabatta Marjoram (300g) 300CIA300-L Ciabatta Latte (300g) 300FOC190 Focaccia (190g) 190FOC240 Focaccia (240g) 240FOC85 Baby Focaccia (85g) 85FOC80-G 5"Garlic Focaccia (80g) 80FOC80-CO 5"Cheese & Onion Focaccia (80g) 80FOC80-TH 5"Tomato & Herb Focaccia (80g) 80FOC300-TH 8"Tomato & Herb Focaccia (300g) 300

Type of data : dynamic

• What are the types of data you have for Cucina?

Date Customer Product Qty (cases)01/11/2008 Topaz Douglas Ciabatta (200g) 3

(weekly order, every Sat) Ciabatta Panino (200g) 2Ciabatta Whole Wheat (300g) 1Ciabatta Latte (300g) 1Focaccia (190g) 4Focaccia (240g) 2Baby Focaccia (85g) 15"Garlic Focaccia (80g) 1

Type of data: soft information

• Data collection - – Grapevine– factory tours (talking and observing)

• Data storage -– managers’ minds– special reports

• Data usage:– ad-hoc basis– decision making

Latency in performance reporting

• Refresh rates can create latency across four levels

– ERP to DW eg. every 8 hours DW updated with fresh sales transactions

– The time it takes for the refresh to execute can lengthen eg. 2/3 hours

– Running a query on the DW can take some time to complete eg. 10

mins

– Report display on user machine can slow down eg. 10 minutes

– Total latency of 11/12 hours can be critical at quarter end

– Decision making not supported in information cannot be trusted

Response times

• Response times are a function of :– response time, – Infrastructure elements, – Database sizing– Transaction processing – Interfaces – Reporting– Other processing demands– Peak times– …

ExtractionCleaningTransformationLoading

Relational Databaseon a dedicated Server

De normalised, data

Static Reporting

Scrutinising

MultidimensionalData CubesOLAP tools

Data Warehouse

Source Systems

Discovering

Data Mining…….

Data StagingArea

Exploiting the DW data

Refreshing databases

• Timing

• Criticality of information

• Volume of data

• Response time

• Real-time requirement

• Level of aggregation / granularity

Refresh Optimization

Accounting

UnknownProcesses

ExternalData Sources

InternalData Sources

DataWarehouse

ETLTools

Valid Time Lag

Load Time Lag

Fact andDimensionChanges

PrimarilyDimensionChanges

Determining the Refresh Frequency

• Maximize net refresh benefit

• Value of data timeliness

• Cost of refresh

• Satisfy data warehouse and source system constraints

Life cycle of the DW

Operational DatabasesOperational Databases Warehouse DatabaseWarehouse Database

First time loadFirst time load

RefreshRefresh

RefreshRefresh

RefreshRefresh

Purge or ArchivePurge or Archive

Real time information

• Up to date

• On-line

• Actual data

• Live feed

• Decisions made on what basis?

Real time requirement?

• Historical sales or accounting data, not real-time

• Sales as quarter end approaches

• Inventory levels for MRP

• Exchange rates, when is Visa rate calculated?

• Real-time processing: card transactions down