ERPsim ManufacturingIntro 16/06/2015 - phx-one.com€¦ · ERPsim ManufacturingIntro 16/06/2015 1 ... ERPsim is owned by Polyvalor and Valorisation Gestion and ... More info at erpsim.hec.ca

ERPsim Manufacturing Intro 16/06/2015

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Version : August 2012-2015 © Baton Simulations. 2012-2015. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca

Enterprise System SimulationRoger Hayen, PhD.Professor of Information Systems Emeritus Baton Simulations Training PartnerPhoenix One [email protected](989) 944-1445


Manufacturing game


ERPsim Simulation Objectives

1. Experience an integrated business process and the impact of real-time information from the end-user perspective

2. Understand how enterprise systems support business strategies and decision-making

3. Develop SAP navigation skills

4. Discuss lessons learned (from the simulation) and strategic, operational or organizational implications for your organization


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Manufacturing Simulation Basics

• Participants work in teams to:• Operate a make-to-stock manufacturing plant

• Interact with suppliers and customers by sending and receiving orders, scheduling production, delivering products, and completing the whole cash-to-cash cycle

• Using standard reports, participants have to • Make business decisions to ensure the profitability of their

operation


ERPsim Simulation - Agenda

Contents30 min - Overview and Introductions

30 min - SAP Intro (login, short navigation)

50 min - Play Q1 (with pauses for analytics)

25 min - Debrief Q1, Strategy for Q2

30 min - Play Q2

25 min - Debrief and Strategy for Q3

30 min - Play Q3

10 min - Short Debrief of Q3

15 min - Strategy for Q4 (if time allows)

30 min - Play Q4 (if time allows)

30 min - Final Debrief and Wrap-up

Description of your new company


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Version : August 2012-2015 © Baton Simulations, 2012-2015. ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca

Muesli Cereal Product size

1.0 KG


Muesli Cereals – Raw Materials

Raisins

Oats

Strawberries

Wheat

Blueberries

Nuts


Your 6 products -- BOM

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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Raw Material Cost, Initial Prices & Initial Stock

Note: $$ is your unique company code designator

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 € 1.96 € 1.97 € 1.38 € 1.36 € 1.76

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


Location of the 71 wholesale customers

Examples:

DC10 – COSTCO, SAM’S CLUB – want volume at low price

DC12 – TARGET, KROGER, H.E.B. –want variety


Number of Customers (Stores) by Geographical Area

Note: These are NOT SAP Sales Areas

DC 10 DC 12 DC 14

Not used in Intro ERPsim


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DC10 (Distribution Channel)Hypermarkets

• Buy only large boxes (1 kg)

• Payment delay of 20 days

• More sensitive to price

• Less sensitive to advertising

• Will have a stronger preference for 3 particular products during the simulation


DC12 (Distribution Channel)Grocery Stores

• Buy large boxes (1 kg)

• Payment delay of 10 to 15 days

• Will have a stronger preference for 4 particular products during the simulation• Which will they be? (For your team to determine)

What’s an ERP?

R/3Client / Server

FI

CO

AM

PS

WF

IS

MM

HR

SD

PP

QM

PM

R/3Client / Server

FI

CO

AM

PS

WF

IS

MM

HR

SD

PP

QM

PM

SAP ECC


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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


C O N T R O L L I N G

R E S O U R C E S

Purchasing Manufacturing Sales/Distribution

Procurementmarket

Procurementmarket

SalesmarketSales

market

Balance sheetFinance Capital Costs

Machines Operating resources Human resources

SAP ERP Integration Supply Chain


Interacting through SAP transactions

Detail Transaction

Steps


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Business Processes in the fullCash-to-Cash Cycle

1

2

3

3


CO2C Business Processes

CO2C

7‐ 21


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Running a make-to-stock company…

ERPsim Transaction

Steps


Learning ERPim …

1

2

3

ERPsim Transaction

Steps


Sales (decisions)

Automated by ERPsim

Automated by ERPsim

Planning/Procurement (decisions)

Automated by ERPsim

Production (decisions)

Automated by ERPsim

What is ERPsim ?

1

2

3


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Game Layout

30 days

30 min

30 days

30 min

30 days30 min

44123 3


“Big Picture”

Operational Transactions

Strategic Decisions

FEEDBACKfrom

ApplicationModules

(SAP Reports -

Management Information for decision

making)

DeliveryDeliverySales Order Processing

Sales Order Processing

Inventory Sourcing

Inventory Sourcing

Pre-Sales Activities

Pre-Sales Activities BillingBilling Customer

Payment

Customer Payment

Customer Request Satisfied

Customer

DeliveryDeliverySales Order Processing

Sales Order Processing

Inventory Sourcing

Inventory Sourcing

Pre-Sales Activities

Pre-Sales Activities BillingBilling Customer

Payment

Customer Payment

SatisfiedCustomer

RequestCustomer

CLOSED LOOPPROCESSES

MANGEMENT DECISIONS

(SAP Transactions)


What is ERPsim ?

ERPsim Simulator

SAP ECCSystem

Your team’s decisions

AutomatedTransactionsResults

Viewer

Logon with SAP GUI

Logon with InternetBrowser


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What is ERPsim ?

ERPsim Simulator

SAP ECCSystem

Your team’s decisions

BusinessAnalytics

Cloud-basedProcesses


Muesli Organization Structure• Company Code

• $$ – – Germany (Deutschland)

• Sales Organizations (Level 1)• $$ – Sales Org $

• Distribution Channels (Level 2)• 10 – Hypermarkets• 12 – Grocery Stores

• Plants (Level 1)• $$ -- Factory $

• Storage Location (Sloc) (Level 2)• 02 – Finished Goods• 88 – Raw Material

How data are stored and accessed in SAP ECC


Muesli Organization Structure

Muesli SE$$

Sales Org$$

HypermarketsDC 10

Grocery StoresDC 12

Plant$$

Finish Goods02

Raw Material88

Company


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Review of the major rules

• You may not change the recipe (aka material master) of a product

• Customers preferences do not change throughout the game, hence you may learn from their past behavior

• The company displaying the highest net income at the end of the simulation wins the game

• You must behave ethically at all times• The end of game inventory will be valued at cost price

in the final balance sheet. Therefore, you should notsell under cost at any time during the game.


Elements of a winning strategy

• Use the ERP system efficiently

• Do not run out of stock

• Delays, production capacities and liquidity constraints are important elements of the game

• Exploration and exploitation

• Team organization is more important than you think

• Have fun!


Rules of the Game

• Each round/quarter will be 30 virtual days (approx1 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


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SAP Navigation


User interface

• Users interact with the enterprise system through transactions.

• A large number of pre-programmed transactions exist in SAP ERP

• Each transaction has a transaction code – one can call or execute a transaction directly if one knows the transaction code

• The SAP menu allows you to browse and find the desired transaction

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


SAP Menu & NavigationMain SAP Menu Bar

Standard Toolbar

Title Bar

Application Toolbar

Navigation Panel

Note: Standard Toolbar appears with all screensStatus Bar

Command Box


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SAP Menu & NavigationUsing Main SAP Menu Bar select:Extras / Settings / Display technical names

Note: Tcodes that begin with “Z” are unique to ERPsim


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.) (org structure, as needed)

• 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 (aka obligatory) fields have not been filled

• You must save/release/confirm before exiting the transaction


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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 assigned by your instructor

• This uses the $$ notation where a $ is a single letter assigned uniquely to your team


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Connect SAPGUI to SAP ECC

Locate SAP Logon and launch it

If server not available, click Create new system icon

If available, double click Name of server to launch system logon


Specify Logon SAP ECC System

Click Next to specify SAP ECC System server


Specify Logon SAP ECC System

Fill out the following

• Description: ERPsim3• Application Server:

erp3.batonsimulations.com• Instance Number: 00• System ID: DEV• SAP Routing String: *leave

empty*

Click Finish to return to SAP Logon dialog box, then double click the Name of your new entry in the Logon dialog box to launch the SAP ECC server


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Logon SAP ECC System

User: As Indicated on Job Aid

Initial password: ERPSIM (all caps.)Press “Enter”When prompted, write new password twice

Enter Client Number as provided by instructor


Logon SAP ERP System

When prompted, enter new password – twice

We suggest you use “welcome”Password IS case-sensitive

Click Enter (green check mark) to compete password entry

Complete Logon by specifying new password


Logon SAP ERP SystemSAP Easy Access menu displays – Logon is complete


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SAP Menu & NavigationCommand Box (used with Tcodes)Displays on Main Toolbar


Team RolesEach participant plays one or more roles so that all business activities are covered:

Roles

Procurement

Shipping & Receiving

Inventory(Warehousing)

Production Execution

Production Planning

Accounting

Sales

Introductory Game: Round 1

30 days30 min


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The Introductory game:Round 1 (30 days)

• You need to maintain the price of your 6 products and spend for 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

46


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Maintain Prices for DC 10 & 12

46


Marketing expense

47

Each Day

Recommended total maximum of 1000 per day


Stock (inventory) in material overview

47


20


Check sales summary report

48

Internal Company

Info


Check sales order report

48


Check market report

48

External Company

Info

End each

5 Days


21


Check financial statements

49


BA Dashboard - Excel

49

Using Excel with data obtained

directly from SAP ERP Sales Order

Report (ZVA05) as Export

(Example only)


BA Dashboard - Excel

49

Using Excel with data obtained

directly from SAP ERP Sales Order

Report (ZMARKET) as Export

(Example only)


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Plan Round 1

49

Material Material Description

DistributionChannel

Price

$$-F01 1kg Nut Muesli10

$$-F02 1kg Blueberry Muesli10

$$-F03 1kg Strawberry Muesli10

$$-F04 1kg Raisin Muesli10

$$-F05 1kg Original Muesli10

$$-F06 1kg Mixed Muesli10

$$-F01 1kg Nut Muesli12

$$-F02 1kg Blueberry Muesli12

$$-F03 1kg Strawberry Muesli12

$$-F04 1kg Raisin Muesli12

$$-F05 1kg Original Muesli12

$$-F06 1kg Mixed Muesli12

Initial Pricing for Distribution Channels 10 and 12Describe your plan for changing your prices throughout the quarter:

Describe your plan for changing your prices throughout the quarter:


Plan Round 1

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Material Material Description North South West

$$-F01 1kg Nut Muesli

$$-F02 1kg Blueberry Muesli

$$-F03 1kg Strawberry Muesli

$$-F04 1kg Raisin Muesli

$$-F05 1kg Original Muesli

$$-F06 1kg Mixed Muesli

Initial Marketing Plan (Daily Amounts)

Describe your plan for changing your marketing (advertising) amounts throughout the quarter:


Plan Round 1

49

Responsibility Team member assignment

Maintain prices

Maintain marketing expenses (advertising)Monitor inventory


Monitor sales summary report

Monitor market report

Analyze sales summary & market resultsMonitor financial results

Team member responsibility assignments:


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Logon to SAP ECC client and enter initial data values for

prices and marketing



We start the simulator for 30 days

Debriefing Round 1


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Overall Team Performance

Introductory game: Round 2

30 days30 min


Participant’s Job Aid & Menu


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Release production order

50Note: Sequence of release establishes sequence of manufacturing!


Check production schedule

51


Parameters of the game


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Plan Round 2

49


DistributionChannel Price

$$-F01 1kg Nut Muesli 10

$$-F02 1kg Blueberry Muesli 10

$$-F03 1kg Strawberry Muesli 10

$$-F04 1kg Raisin Muesli 10

$$-F05 1kg Original Muesli 10

$$-F06 1kg Mixed Muesli 10










Plan Round 2

49









Describe your plan for releasing Production Orders:


2


Plan Round 2


Maintain prices





Analyze sales summary & market results

Monitor financial results

Release production



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Logon to SAP ECC client and change values for prices and

marketing and prepare to release Production Orders




Introductory game: Round 3

30 steps30 min


28


PO2P

56


Participant’s job aid & Menu


29


Forecasting

53


Execute MRP

54


After the MRP run


30


Convert purchase requisitions into purchase orders

55


Track purchase orders

56


Plan Round 3

49


DistributionChannel Price
















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Plan Round 3

49









Describe your plan for releasing Production Orders:



Plan Round 3

49


Planned Independent

Requirements







Forecast Sales:


Plan Round 3



Maintain prices





Analyze sales summary & market results

Monitor financial results

Release production

Execute MRP run

Execute convert POs

Monitor POs

Do forecast


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Logon to SAP ECC client and change decision values and

enter Sales Forecast


The Introductory game:Round 3 (30 steps)




Logon to SAP ECC client and change decision values


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The Introductory game:Round 4 (30 steps)

We start the simulator for the last 30 days

Debriefing


Conclusion

1. What were YOUR individual key learning moments?2. How does decision-making and collaboration with real-time analytics

differ from the way you currently operate? 3. What skills /competencies become critical in an integrated process

environment?4. What behaviors must management encourage/discourage to maximize

value realization?

Documents

ERPsim ManufacturingIntro 16/06/2015 - phx-one.com€¦ · ERPsim ManufacturingIntro 16/06/2015 1 ... ERPsim is owned by Polyvalor and Valorisation Gestion and ... More info at erpsim.hec.ca