Global Bike Inc. (GBI) 2.0 - Advanced Business Processes
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Transcript of Global Bike Inc. (GBI) 2.0 - Advanced Business Processes
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Global Bike Inc. (GBI) 2.0: Advanced Business ProcessesSimha R. Magal, Ph.D.Professor of Management (MIS) and Director, ERP ProgramSeidman College of Business, Grand Valley State UniversityGrand Rapids, MI, USA
SAP UNIVERSITY ALLIANCES ACADEMIC CONFERENCEINDIA July 16-17,2010
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Agenda
GBI 2.0Development processThe companyTeaching materials
GBI ProcessesCore processesAdditional processes
Discussion
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GBI 2.0
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GBI 2.0: Development
Project Sponsor: SAP UAP
Project TeamSimha R. Magal, Ph.D., Seidman College of Business, Grand Valley State U.Stefan Weidner, Otto von Guericke University, Magdeburg, GermanyJeffrey Word, Ph.D., SAP
Supported byInterns
Grand Valley State University ERP ProgramOtto von Guericke University
FundingWest Michigan CIO councilWiley
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GBI 2.0: Development
ObjectivesEngineer a teaching environment to facilitate two levels of learning
Beginner level– realistic single-company code enterprise with multiple master dataAdvanced level– multi-company code teaching environment with single master data
Create stable, flexible, and extensible foundation for future SAP UA curriculaGBI 2.1………GBI 3.0
Provide extensive background material, figures and examples to allow “almost real-life”business experience for studentsCover all SAP ERP modules and processes included in the TERP 10 certification academy
and later other SAP solutions
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GBI 2.0: Development
Development processExtensive research on industry, products, processes, etc.Systems and transports
Sandbox systemDevelopment systemProduction system
Master data importsLSMWeCatts
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GBI 2.0: Development
DocumentationEnterprise structure configurationProcess ConfigurationSAP transport requestsMaster Data Configuration and Import filesUCC System/Client/Request Import Document
TestingGlobal testing
Expansion (3.0 +)Additional processes and capabilitiesAdditional systems
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GBI 2.0: The Company
NarrativeJohn Davis
Grew up on trail bikes in the Rocky mountains of the USWon numerous championshipsUnhappy with available bikes; built his own in his basement1990: started making bikes for othersStarted Frankenstein Bikes
Peter SchwarzGrew up on road bikes in the Black Forest region of GermanyEngineer: designed ultra light bike frame from carbon composite materialStarted Heidelberg CompositesPartnered with a local company to manufacture frames
Both shared a passion for performance and an obsession with bicycle designTwist of fate
Met in 2000Recognized shared passion and complementary business modelsMerged to form Global Bike, Incorporated in 2001
Extendable!
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GBI 2.0: The Company
StrategyJohn and Peter are Co-CEOsGBI is a process centric organizationJohn is responsible for (in terms of reporting)
Sales, Marketing, Service and Support, IT, Finance, and Human ResourcesJohn sells products and brings in money
Peter is responsible forResearch, Design, Procurement, and Manufacturing GroupsPeter builds products and spends money
World class bicycle company serving both the professional and “prosumer” in touring andoff-road racing. Focus on:
QualityToughnessPerformance
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GBI 2.0: The Company
Global Bike Inc.
Co-CEO John Davis
Co-CEO Peter Schwarz
Global Bike US Global Bike DE
Dallas Miami San Diego Hamburg Heidelberg
Organizational Structure
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GBI 2.0: The Company
GBI
BIKEBicycles
TOURTouring
DXTRDeluxe touring
bike
DXTR 1000Black
DXTR 2000Silver
DXTR 3000Red
PRTRProfessionaltouring bike
PRTR 1000Black
PRTR 2000Silver
PRTR 3000Red
ORBKOff Road
ORMN 1000Men’s standard
ORWM 1000Women’sstandard
ACCRAccessories
PROTProtective
PADSPads
EPAD 1000Elbow pads
KPAD 1000Knee pads
HLMTHelmets
OHMT 1000Of f roadhelmet
RHMT 1000Road helmets
UTILUtilities
SHRT 1000T-shirt
RKIT 1000Repair kit
PUMP 1000Air pump
CAGE 1000Water bottle
cage
BOTL 1000Water bottle
FAID 1000First aid kit
Products
Naming conventionAAAA N###
To support 1000 users
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GBI 2.0: The CompanyCustomerNumber Customer Name Street City Stat
e
1000 Rocky Mountain Bikes Fiddler's GreenCircle Denver CO
2000 Big Apple Bikes Morton ST New York City NY
3000 Philly Bikes West Chester Pike Philadelphia PA
4000 Peachtree Bikes Summit Boulevard Atlanta GA
5000 Beantown Bikes Van de Graaff Drive Boston MA
6000 Windy City Bikes Highland Parkway Chicago IL
7000 Furniture City Bikes W Fulton Grand Rapids MI
8000 Motown Bikes One Towne Square Detroit MI
9000 SoCal Bikes Von Karman Ave Irvine CA
10000 Silicon Valley Bikes Hillview Ave Palo Alto CA
11000 DC Bikes Pennsylvania Ave WashingtonDC DC
12000 Northwest Bikes 108th Ave Seattle WA
Customers
Addresses areSAP offices!
NumberingNN###
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GBI 2.0: The Company
Vendors
VendorNumber Vendor Name Street City State
101000 Olympic Protective Gear Summit Boulevard Atlanta GA
102000 Boomtown Tire & Wheel Walnut ST Cincinnati OH
103000 Dallas Bike Basics N O'Connor Blvd Irving TX
104000 Lightbulb Accessory Kits Thornall St Edison NJ
105000 Space Bike Composites Richmond Ave Houston TX
106000 Night Rider Aluminum Products S Front St LaCrosse WI
107000 Spy Gear Greensboro Dr. McLean VA
108000 Rapids Nuts n Bolts Eagleview Blvd Grand Rapids MI
109000 Green Blazers Seats 68th Parkway SW Portland OR
110000 Fun n the Sun Seats n Bars Blue Lagoon Dr. Miami FL
111000 Sunny Side Up Tire N. Scottsdale Road Scottsdale AZ
112000 Redwood Kits Palomar Airport Rd. Carlsbad CA
Addresses areSAP offices!
NumberingNNNNN###
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GBI 2.0: The Company
Information ArchitecturePrior 2009
GBI divisions running multiple, independent IT environments2009
GBI integrated shared services for all IT functions in the Dallas OfficeAll ERP Functions centralizedPrimary Objectives:– Reduce Costs– Deliver Best-in-Class Technology to all divisions
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GBI 2.0: The Company
Key ProcessesProcurement (buy)Fulfillment (sell)Production (make)Inventory and Warehouse Management (store)Material Planning (plan)Enterprise Asset Management (maintain)Customer Service (service)HCM (people)Financial Accounting (track)Management Accounting (track)Lifecycle data Management (design)Program and Project Management (projects)BI / SEM
SAP ERP / TERP 10
“Mile wide and inch deep”
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GBI 2.0: The Company
Source: Magal and Word, Integrated Business Processeswith ERP Systems, Wiley, 2010
© 2010 John Wiley and Sons
Processes areall integrated
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GBI 2.0: The Company
Enterprise StructureFinancial
Client GBIOperating Concern (global) GL##
CA Europe EU##CA North Am. NA## CA Asia AS##
Chart of Accounts (global) GL##
CoA US##
CC US##
CA## CoA DE##
CC DE##
GB## AU## JP##
Business Area – Bicycles BI##
Extendable!
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GBI 2.0: The Company
Client GBICC US##
DallasDL##
MiamiMI##
S. DiegoSD##
CA##
TorontoTO##
SP DL##
SLocRM##
MI## SD## HD## HH##
AU##
PerthPE##
Central Purchasing Organization (global) GL##
Purchasing Org. US##
CC DE##
Heidelb.HD##
HamburgHH##
SF##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
TG##
FG##
MI##
RM##
SF##
FG##
MI##
TG##
FG##
MI##
TO##
TG##
FG##
MI##
PE##
CA##
Purchasing Group North AmericaN##
PO DE##
PGr EuropeN##
AU##
AsiaAS##
Enterprise StructureLogistics
Extendable!
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GBI 2.0: The Company
Credit Control Area (global) GL##
CC US##
SO EastUE##
SO WestUW##
CC CA##
SO EastCE##
SO WestCW##
CC DE##
SO SouthDS##
SO NorthDN##
CC GB##
SO SouthGS##
SO NorthGN##
CC AU##
SO SouthAS##
SO NorthAN##
Distribution Channel Wholesale WH
Distribution Channel Internet IN
Enterprise StructureSales and Distribution
Extendable!
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GBI 2.0: The Company
Enterprise StructureHCM (US)
Client GBI
Company Code US##
Personnel Area Dallas DL##
PersonnelSubarea
Miami MI##
MaterialsManagement
MM##
SD##
EmployeeSubgroup
Employee Group 1Active
Employee Group 2Retiree
Employee Group 9External
11Hourly Wage
12Salary scale
13Executive
91Senior Consultant
10Intern
90Junior Consultant
21Honorary
20Pensioner
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GBI 2.0 Teaching Material
Single Company Code
InfrastructureOne company code
US00 / DE 00Common general ledgerUnique master data
### (1000 copies)
ExercisesMaster Data
ReviewProcesses
ExecuteFinancial impact
Limited understanding due to common GL
Multi company Code
Infrastructure99 company codes (01 – 99)
US## / DE##Unique general ledgerUnique master data
000 -> 0##
ExercisesMaster data
ReviewCreate
ProcessesExecute
Financial impactMore complete understanding due to unique GL
Available:January 2011
Available:August 2010!
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GBI 2.0 Teaching Material
One company / One client / One story (on UA Portal on SCN)
Multiple options for teaching material
UAP materials (UA Portal on SCN)ExercisesSolutions (to exercises)Case studiesInstructor notes (for case studies)
Wiley materialsText book
Explanation of conceptsReal world ExamplesGBI examples / scenariosDemos
ExercisesMaster dataProcess executionVariations and extensions
Supporting materialsIM, power point, test bank,solutions to exercises)
Available:August 1, 2010
Available:August 2010
(Prelim version)
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CORE PROCESSES
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Core Processes
Financial Accounting (G/L accounting)
Procurement (Materials Management)
Fulfillment (Sales and Distribution)
Production (Production Planning and Execution)
Management Accounting (cost center accounting, internal orders)
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Financial Accounting
Create GLentries
Reviewfinancials
ScenarioInvest in GBIPurchase assets andconsumablesPay mortgage
AssumptionNot tied to any process
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Procurement
Createpurchaserequisition
Create andsend purchase
order
Receive goodsfrom vendor
Receiveinvoice from
vendor
Send paymentto vendor
ScenarioPurchase trading goodsProcure to stock
AssumptionWe know how much to buy
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Fulfillment
Pre-salesactivity
Processcustomerales order
Pick, pack,ship goods to
customerSend invoiceto customer
Receivepayment from
customer
ScenarioSell what was purchasedSell from stock
Assumption:We have what enough ininventory
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Production
Create plannedorder
Createproduction
order
Issue materialto production
order frominventory
Produce andconfirm
production
Receivematerials fromproduction to
inventory
ScenarioProduce a bikeMake to stock
Assumption:We know how many tomakeWe have needed rawmaterials in inventory
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CO – Cost Center Accounting
Create anassessment
cycle
PostExpense toCost Center
ProcessCost Center
ReportCarry Out
Assessment
ProcessCost Center
Report
ScenarioAllocate accumulatedcosts to cost objects
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CO – Internal Orders
Create InternalOrder
CommitmentManagement
VerifyCommitment
Post GoodsReceipt
View Effects ofGoods Receipt
Settle Order toCost Center
Check Balanceof Internal
Orders
ScenarioAllocate costs associatedwith temporary activity(picnic)
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ADDITIONAL PROCESSES
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Additional Processes
Warehouse Management
Material Planning
Integrated Processes
Customer Service
Enterprise Asset Management
Financial Accounting (Asset accounting)
Human Capital Management (Recruitment and Hiring)
Management Accounting (Profitability analysis, profit center accounting, product,cost accounting)
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Warehouse Management - 1
CreatePurchase
Order
Receivegoods from
vendor
Createtransfer
requirement
CreateTransferOrder
ConfirmTransferOrder
Receiveinvoice from
Vendor
MakePayment to
Vendor
ScenarioPurchase for delivery toSan Diego WH
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Warehouse Management - 2
Create StockTransportOrder (DL)
Pick, Pack,Ship goods
(DL)
Receivegoods (SD)
CreateTransfer
Requirement
CreateTransferOrder
ConfirmTransferOrder
ScenarioTransfer from Dallas plantto San Diego WH
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Warehouse Management - 3
Create SalesOrder
CreateOutboundDelivery
CreateTransfer
Requirement
CreateTransfer
Order
ConfirmTransfer
Order
Ship Goods(GoodsIssue)
Send invoiceand receive
payment
ScenarioFill customer order fromSan Diego WH
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Material Planning
Create Salesand Operations
(SOP) Plan
DisaggregateSOP
Transfer data toDemand
ManagementComplete MPSand MRP runs
Deal withplanned ordersand purchaserequisitions
ScenarioPlan production of FGPlan production of SFGPlan procurement of RM
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Integrated ProcessesFulfillment + Procurement +Production
Source: Magal and Word, Essentials of Business Processesand Information Systems, Wiley, 2009
© 2009 John Wiley and Sons
ScenarioMake to orderProcure to orderCustomer ordertriggers fulfillmentLack of inventoryof bikes triggersproductionLack of inventoryof RM triggersprocurement
Assumption:Assumptionsabout availabilityof materials isremoved
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Integrated Processes
Three ScenariosFulfillment + Production + Procurement (previous slide)Fulfillment + Production + Procurement + Warehouse ManagementFulfillment + Production + Procurement + WM + Material Planning
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Customer Service
CreateService
Notification
Create &Release
Service Order
IssueMaterials to
Order
ConfirmIssuedService
TechnicallyComplete
Service Order
Settle Costs
BusinessComplete
Service Order
ScenarioRepair bicycle underwarrantyCosts will be settled to aninternal cost center
Additional ScenarioRepair bicycle out ofwarrantyBill the customer forrepairs
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Enterprise Asset Management
CreateMaintenance
Request
CreateMaintenance
Order
ReleaseOrder
WithdrawalMaterial for
Order
CompletionConfirmation
TechnicallyComplete
Settle Cost
BusinessComplete
ScenarioPlanned maintenanceReplace an air filter on aventilation fanAccumulate labor andmaterial costsSettle costs to an internalcost center
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FI – Asset Accounting
PurchaseAsset
Complete aDepreciation
RunReview
Financials
ScenarioPurchase and depreciatean assetAutomobile for one of theCEOs
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HCM - Recruiting
CreatePosition
Create anadvertisement
CreateApplicants
Perform ProfileMatchup
Select and hire
TransferEmployee
Data
ScenarioRecruit for an openpositionSelect a suitable candidateHire the candidate
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Discussion
Questions?
Comments?
Suggestions?
Ideas?
Criticisms?
Praise?