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![Page 1: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/1.jpg)
Masaryk University
Faculty of Economics and Administration,Department of Corporate EconomyIng.J.Skorkovský,CSc.
* Tasks, problems andreal South African project
![Page 2: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/2.jpg)
*Your main task (not organised set of
processes)
Input check Put-away Cross-docking Transfer
to Production
Consumption registration
Production Output
registrationInventory value
calculation Output check
Delivery
Load-despatch
Production Planning
Sales Order Component replenishment
Purchase Order
Invoicing Payment Finished goods to Inventory
Picking from Inventory
Reporting Statistics
![Page 3: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/3.jpg)
*Your main task (organised set of
processes)
Input check
Put-away
Cross-docking
Transfer to
Production Consumption
registration
Production Output
registration
Inventory valuecalculation
Output checkShipment
Load-despatch
Production Planning
Sales Order Component replenishment
Purchase Order
Invoicing
Payment from Customer
Finished goods to Inventory
Picking from Inventory
Reporting Statistics
Inventory valuecalculation
Inventory valuecalculation
Payment toVendor
![Page 4: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/4.jpg)
*Your main task (possible problems,
bottlenecks,..)
Input check
Put-away
Cross-docking
Transfer to
Production Consumption
registration
Production Output
registration
Inventory valuecalculation
Output checkShipment
Load-despatch
Production Planning
Sales Order Component replenishment
Purchase Order
Invoicing
Payment from Customer
Finished goods to Inventory
Picking from Inventory
Reporting Statistics
Inventory valuecalculation
Inventory valuecalculation
Payment toVendor
![Page 5: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/5.jpg)
*Your main task Search - HOW ??? Measure impacts –HOW ??? and Destroy – HOW ??? And improve - HOW ???
CAUSE->EFFECT RELATIONS
![Page 6: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/6.jpg)
*Methods (not sorted so far )
* Theory of Constraints
* Critical Chain (DBR)
* Ishikawa Fishbone Diagram (Total Quality Management)
* Pareto Analysis , ABC, EOQ, Six Sigma and Ishikawa
* OLAP (On-Line Analytic Processing)
* Kepner –Tregoe methodology
* MaxMax and MaxMin (Hurwitz)
* SWOT, BOSTON and Gartner Magic matrices
* ERP Statistics and Reporting
* Little´s law
* Yield Management
* Linear programming
* Balanced Scorecard
* Production algorithms (MRP,MRP-II, JIT,APS)
* And many, many more…..
![Page 7: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/7.jpg)
* BS and OM
Finances – how should we look to our shareholders ?
Customers – how should we look to our customer ?
Processes – at which business processes must we excel ?
Learning and Growing – how will we sustain our ability to change and improve ?
Project managemen
tTheory of constraints Production
Critical chain Drum –buffer-rope
MRP-MRP-II,JIT,APS
Linear programmi
ng
Cutting, blending
Total quality
management
Pareto, ishikawa
Product postitioning
Little´s law
Boston
Matrix
Gartner QM
Workflow
CONWIP Logistics
EOQ, ABC
Decisionmaking
Kepner-Tregoe
Hurviwtz
Business Intelligence
Yield management
Prospect theory
BS and OM – slide from Balanced Scorecard show (will be presented again in BS context)
![Page 8: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/8.jpg)
* Simplified diagram of ERP usage
ERP Transaction = Entries
DB ERPPartners
Reports Forms
Information
Information(trends)
Knowledge of methods for process management and used metricsDecision
Enterprise
Key knowledgeKey decision
![Page 9: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/9.jpg)
*Basic problem I. (one of many)
We havea huge data
quantity
..and at the same time a minimum information which could be used for decision making !!!!
![Page 10: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/10.jpg)
To solve it we should use finite capacity scheduling (APS)- will be presented later
Op1
Op2
Op3T1
T2
T1+T2=X
Opt=Min(X)
Op1
Op2
Op3T1 = 0
T2 = 0
*Basic problem II. (we need reliable data )
![Page 11: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/11.jpg)
*Basic problem III.
Will be explained in Little´s law presentation
![Page 12: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/12.jpg)
*Basic problem IV.
(Black ->White, Setup time=60 minut)(White->Black, Setup time = 20 minut)
Black
Black
White
White
![Page 13: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/13.jpg)
*Basic problem V-I.(availability
of components)
Op1
Op2
Op3
20 pcs A7 and 20 pcsA8A0
A1 A2
A3
A4 A5
10 pcs A4 adn 10 pcs A5(will be delivered in T1+X time )
T1
T0Lead time A6
A6
A7 A8Op1
Op2
Op3
X= slack
T1
T1+X
![Page 14: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/14.jpg)
*Basic problem V-II. (availability
of components )
APS result ->18.8.->23.8. a 27.8.->10.9
![Page 15: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/15.jpg)
*Basic problem VI-I. (over
budget)
![Page 16: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/16.jpg)
*Basic problem VI-II. (over
budget)
![Page 17: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/17.jpg)
*Basic problem VI-III. (over
budget)
![Page 18: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/18.jpg)
*Wholesale-paper-warehouse management-ERP
![Page 19: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/19.jpg)
* 100 000 Tones per Year
*Carbonless papers
*Cast coated papers and Board
*Coated papers
*House brands
*Office papers
* 5000 locations in HQ and 40 000 M2 warehousing space
* 50000 customers
* 90 vehicles
* FEC trading (Forward Exchange Contracts)
*Hundreds of employees
*Heterogeneous IT system with every day synchronization of data in HQ and subsidiaries
*High volume-low margin type of business
Basic business specification
Products
![Page 20: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/20.jpg)
*One database only (MS SQL)
*Modern IT technology ensuring :*Fast access to data providing on-line information any
time
*Easy upgrades
*Mobile technologies (BAR code readers,..)
*Quick response to business partner requirements
*Multidimensional analytic tool->reporting to support decision making process
*Efficient warehousing (inbound and outbound operations)
*On-line reporting (warehouse status, accounting, cost control,…..)
Basic requirement
![Page 21: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/21.jpg)
* Isolated Data Islands
21
Management
Marketing
Accounting
Customers
BanksReplenishment
planning - Vendors
Sales Representatives
Customer
Orders
Production Island
Accounting Island
Marketing& SalesIslands
QualityManagement
Island
Island of Deliveries
Inventory -warehousingQuality Management
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* Management Marketing
Accounting
CustomersCredit limits,
rebates, consignment stock
Shareholders
Planning
Internal Sales
(paper shop)
Customer
support
One CompanyDatabase
One Solution One Database All Microsoft
Sales Representatives
Purchase-Vendors
FEC, transport,..
Reporting
Warehouse
(pickers and pullers)
![Page 23: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/23.jpg)
Communications limits (band width, stable connection…)
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*Receipt bins (area where lorries are unloaded)
*Put-away to bins (racks) based on zones definition
*Capacities of the bins (racks) – (weight, size)
*Cross docking (from inbound are directly to outbound area)
*Transfer between location (HQ and subsidiaries)
*Picking slips (from rack to shipment area)
*Shipments area (bins, cages)
*Transport planning
*Credit limits and overdue payment check
*Invoices, Credit memos,….
*Claim management
Efficient warehousing –(only a few examples)
![Page 25: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/25.jpg)
*Warehousing
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*Warehousing
![Page 28: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/28.jpg)
* Design (S=Sheets, R=Reels, G=Graphics, C=Cutting, G=Guillotine) – only for home study !!
B0 receiving bin
EST WEST bins in – shipment area (cages)
G zone
S zone R zone
G1
G2
C zone 6
5
4
3
2
1
Broken Bulkrack
2 (
3)
pale
ttes
in e
ach
bin
Adjustment bin
= palette
![Page 29: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/29.jpg)
*Project management
*Budget <->Quote and contract
*Planning of resources and task control
*Planning tools – see following slides
*Reporting (time-capacity usage, costs,…)
*Change management
*Project Risks
*Consignment stock
* CPM,PERT,CCPM – will be mentioned later
![Page 30: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/30.jpg)
*Resource Planner tool
![Page 31: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/31.jpg)
*Resource Planner tool
![Page 32: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/32.jpg)
*Resource Planner tool
![Page 33: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/33.jpg)
Customer
*Consignment stock (benefits)
CustomerWholesaler
Wholesaler
Partial invoice after 1 month (one palette)
Partial invoice after 2 months(one palette)
Final invoice after 3 months
Requests
Transfer
Remainingstock
= palette
![Page 34: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/34.jpg)
*Forward Exchange Contract (home study only)
A special type of foreign currency transaction. Forward contracts are agreements between two parties to exchange two designated currencies at a specific time in the future. These contracts always take place on a date after the date that the spot contract settles, and are used to protect the buyer from fluctuations in currency prices.
Opened from Purchase order (MS Dynamics NAV 2013)
![Page 35: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/35.jpg)
*Staff training
*Study materials
*Key users – roles, processes
*Training :planning
*Examination
*Change management
![Page 36: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/36.jpg)
*Project Management I.
*Budget (financial and resource capacities)
*Data transfers (old sysetm- >new system)
*Setup of the ERP system (MS Dynamics NAV)
*Tests
*Evaluation od customized solution
*Change management
*Sharp start
*Closing project –evaluation
![Page 37: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/37.jpg)
Formulate problem
Define goalCreate model
Experiments
Evaluate model
Formulate cognition
Model application
Verification of validity
Real system
Use knowledge
Gain knowledge
Steps in the model based problems solving process
* Source : Nyhuis,Wiendahl, Fundamentals of Production Logistics
![Page 38: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/38.jpg)
*Implementation
*Data transfer
*Setup of the system
*Role Tailored Clients- profiles, Approvals
*Tests
*Evaluation
*Change management
*Sharp start (Namibia and SA)
*Closing project
*Next stages
![Page 39: Masaryk University Faculty of Economics and Administration, Department of Corporate Economy Ing.J.Skorkovský,CSc.](https://reader036.fdocuments.in/reader036/viewer/2022062518/56649f4d5503460f94c6d22c/html5/thumbnails/39.jpg)