ERPsim Introductory Game.pptx

© Léger et al. 2009. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2009

Manufacturing gamePart 1 - Chapter 1

Introduction

What’s an ERP?

Key ERP Concepts

• Process• Sales• Production• Procurement• …

• Integration• Inventory• Accounting• …

Components of ERP

• Organizational Data• Plants, Company Codes, Distribution Channels, etc.

• Master Data• Customers, Vendors, Materials, etc.

• Transaction Data• Sales Orders, Invoices, Purchase Orders, Goods

Movements, etc.• Reporting

Each team of 3 to 4 players…

Running a make-to-stock company…

Collaborating using the end-to-end power of SAP !

Description of your new company

Welcome to your new job !

http://www.youtube.com/watch?v=XYFJASoYGps

Manufacturing gamePart 1 - Chapter 2Introductory game

Introductory game

Objective

• The objective of the introductory game is to provide a quick hands-on experience of an integrated business process in order to get an overview of both the ERP simulation game and of the SAP system.

Your 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

German market

NorthDC10: 2 retailersDC12: 19 retailers

SouthDC10: 7 retailers

DC12: 23 retailers

WestDC10: 3 retailers

DC12: 17 retailers

Game layout

30 days30 min

Rules of the game

• Each round will be of 30 virtual days (approx 1 min per day)

• 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

SAP Navigation

ABC of Enterprise systems

• An enterprise system is build around an integrated database• A system such as SAP contains tens of thousands 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 (ex. reporting, tracking, execution of orders, etc.)• All transactions are traceable, transactions with financial

impacts can be reversed, never erased

User interface

• 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 menu allows to browse and find the desired transaction

• One can create a user menu or a list of favourites with the commonly used transactions

SAP Menu & Navigation

Extras / Settings / Display technical names

Reports and queries

• 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

Entering new data

• 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

Other useful buttons

• 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 .

Participant’s job aid

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 on your Job aid.

• For now, we will be working in:• Client 420

• Later, we will be working in: other clients…

Login information

Client will be provided by the instructor

Login : intro_$ #Where

$ = Team, # = User 1 to User

ERPSIM

SAP Menu & Navigation

Introductory Game: Round 1

30 days30 min

Sales Process Overview

• Master data• Customers• Products (Finished Goods)• Pricing

• Process steps (fully automated)• Sales Order• Goods issue / delivery• Invoice• Customer payment

• Reporting• Sales order tracking, Inventory, Market Report

Cost, inventory & initial pricing

Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06

NameNut Muesli

1.0 kg.Blueberry

Muesli1.0 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

€ 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

The Introductory game:Round 1 (30 virtual days)• You need to maintain the price of your 6 products and invest in

marketing.• What do you need to know in order to make that decision ?• You need to know how to :

• Maintain price list• See available stock• Monitor sales orders• Monitor competitors• Monitor your profit !

Participant’s job aid & Menu

Check product costing

Maintain Prices for DC 10 & 12

Marketing expense

Stock in material overview

Check sales summary report

Check sales order report

Check market report

Check financial statements

The Introductory game:Round 1 (30 virtual days)

We start the simulator for 30 (virtual) days

Basic BI with ERPsim data in MS Access

How to use ERPsimData.accdb• Step 1:

• Download the ACCESS file ERPsimData.accdb from the site provided by your instructor

• Save the file ERPsimData.accdb on your hard drive

• You may open it to check its content

How to use ERPsimData.accdb• Step 2:

• Use Pivot Table in Excel to analyze data

• Open an Excel file• In the Excel file, on the

“Data” tab, click on the “From Access” button.

• Look for ERPsimData.accdb on your hard drive

• Select the query or table you want to analyze

How to use ERPsimData.accdb• Step 2 (cont’d):

• Select Pivot Table report

• Select the fields you want to use in your report

Exploring data

Large variations insales per day

Introductory game: Round 2

30 days30 min

Production Process Overview

• Master data• Finished products• Bill of material• Raw material

• Process steps• Create planned order• Release production order• Confirm production order• Goods movements

• Transaction data• Planned orders• Production orders

• Reporting• Production scheduling

Your 6 products (Master Data)

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

Finishedproducts

Rawmaterials

Production schedule

Confirmproduction

Create planned

Releaseproduction

Business Process

Understanding the Steps

• A planned order is a document created during the forecasting process. This document has no real consequence yet. It can be erased or changed.

• A planned order can be released completed or partially into a production order.

• A production order instructs the shop floor to proceed with production. It cannot be erased, rescheduled, or changed.

• Release of the production order triggers the goods movement of the raw material to the shop floor.

• Once production is completed, the production confirmation confirms the consumption of the raw materials and the goods movement of the finished products to the warehouse.

Release production order

Check production schedule

Parameters of the game

Things to Keep In Mind

• A production order of 50,000 boxes will take two days to be confirmed (25,000 boxes per day in the intro game).

• If you release too many production orders simultaneously, you will fix your future production for many days.

• Try to remain flexible, release production orders for only a few days at time and keep an eye on the market to figure out what to do next …

We start the simulator for 30 (virtual) days

Introductory game: Round 3

30 days30 min

Procurement Process Overview

• Master data• Vendors• Raw materials• Purchase Info Records

• Process steps• Create purchase requisition• Convert / Create purchase order• Goods receipt• Invoice receipt• Vendor Payment

• Reporting• Purchase order tracking, Inventory

Business Process

Procurementprocess

Convertto POPO

tracking

Requisitions

Vendors

Purchase Order

Create Purchase

Requisition

Understanding the Steps

• A purchase requisition is a document identifying a need for a material or service. This document has no real consequence yet. It can be erased or changed.

• Purchase requisitions can be converted individually or collectively into a purchase orders.

• A purchase order represents a binding agreement to purchase a certain quantity of materials from a specific vendor at a specific price.

• The goods receipt represents the physical delivery of goods from the vendor.

• The invoice receipt represents the “bill” sent by a vendor, and the vendor payment represents information about the payment to the vendor based on the goods and invoice receipt.

A Note About Forecasts & MRP

• Forecasting & MRP are not specifically part of the procurement process.

• They can act as a “catalyst” for both the procurement and production processes.

• We will go into more detail about forecasting, MRP, and their relationship to the procurement and production processes when we explore inventory integration concepts.

Forecasting

Execute MRP

After the MRP run

Convert purchase requisitions into purchase orders

Track purchase orders

We start the simulator for the last 30 (virtual) days

Debriefing

Conclusion

• The objective of this chapter was to provide a quick overview of the ERP simulation and an introduction to the navigation in SAP.

• The next chapters present an extended version of this simulation and a more detailed description of the underlying business process and decision support tools.

ERPsim Introductory Game.pptx

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