Final Project A case study of The Real-Time Supply Chain System in Company I Group 2 Members: 923811 Angela 923824 Ivan 923831 Jimmy

Final Project A case study of The Real-Time Supply Chain System in

Company I Group 2 Members:

923811 Angela923824 Ivan923831 Jimmy

Outline

• Introduction

• As-is Model

• Problems Discussion

• To-be Model

• Conclusion

Outline

• Introduction

• As-is Model


• To-be Model

• Conclusion

Introduction

• Company I

• Challenge

• Purpose• Real-Time• Cycle Time 48hr → 24hr

Outline

• Introduction

• As-is Model


• To-be Model

• Conclusion

As-is ModelCurrent Purchasing SystemSAP ERP Sys. Warehouse Supplier

Ready to deliver

Key-in SAP(Receiving Qty)

RUN MRP(00:00AM)

Shortage List

QI Process

PassWarehouse (Qty)

Purchaser(Company I)

EDI 830EDI 830Material Incoming Plan

(14D+10W+3M)Material Incoming Plan

(14D+10W+3M)

Manufacture

Sales Dept.

QI Process

Pass

As-is Model

Material Incoming Plan (14D+10W+3M)


Manufacture

Current Purchasing SystemSAP ERP Sys. Warehouse Supplier


Ready to deliver


RUN MRP(00:00AM)

Shortage List

Warehouse (Qty)

Sales Dept.

As-is Model

QI Process

Pass



Manufacture

Current Purchasing SystemSAP ERP Sys. Warehouse Supplier


Ready to deliver


RUN MRP(00:00AM)

Shortage List

Warehouse (Qty)

Sales Dept.

As-is Model

SAPDB

EDI 850EDI 830

EDI 850EDI 830

Customer

DB

Oracle, SQL….Supplier

I2 FP

Web ServerEDI 850EDI 830

EDI 850EDI 830

POPriority

Company I

Outline

• Introduction

• As-is Model


• To-be Model

• Conclusion

Problems Discussion

• Demand Accuracy• Supplier Status Visibility• Shipment Visibility• IQC Status Visibility • Two B2B Cycle Gap

Demand AccuracyCurrent Purchasing

SystemSAP ERP

Sys. Warehouse Supplier


RUN MRP(00:00 AM)

QI Process

PassWarehouse (Qty)

Manual communicationsManual communications

Variance of

Demand

High level inventory

Ready to deliver

New SalesOrders ProductionEDI

Shortage ListMaterial Incoming Plan

(14D,10W,3M)Material Incoming Plan

(14D,10W,3M) Sales Dept.


Problems Discussion


Supplier Status VisibilitySupplier


RUN MRP(00:00 AM) Shortage List

QI Process

PassWarehouse (Qty)

Check inventory via phoneCheck inventory via phone

Material Incoming Plan (14D,10W,3M)


??

Purchaser doesn’t know the Purchaser doesn’t know the inventory and supplier’s inventory and supplier’s production planningproduction planning

Ready to deliver

RawRawMaterialMaterial

WorkWorkOrderOrder

FinishFinishGoodGood

OrderOrderInquiryInquiry

New SalesOrders

Sales Dept.

SAP ERP Sys.

Current Purchasing SystemWarehouse


Problems Discussion


Shipment Visibility

Manual communicationManual communication

Ready todeliver



QI Process

PassWarehouse GR (Qty)



?? ??Where theWhere the MaterialMaterial

SupplierSAP ERP

Sys.Current Purchasing

SystemWarehouse

Sales Dept.

New salesorders ProductionEDI

Information flow


Problems Discussion


IQC Status Visibility

Manual communicationManual communication

Ready todeliver


QI Process

PassWarehouse (Qty)

IQC rejectIQC reject

ReplenishmentReplenishment

SupplierSAP ERP

Sys.Current Purchasing

SystemWarehouse




Sales dept.

New salesorders

Supplier can’t get the Supplier can’t get the result of inspection result of inspection in the real timein the real time

Delay

QI ProcessEDI


Problems Discussion


GapGap

Two B2B Cycle Gap

Ready todeliver

Firstreceiving

Key-in SAP(Receiving

Qty)

RUN MRP(00:00 AM)

Shortage List

(In Transit)

SupplierSAP ERP

Sys.



Current Purchasing SystemWarehouse

Sales dept.

Update MRP Data ??

Double Count

Material Incoming Plan (14D, 10W, 3M)Material Incoming Plan (14D, 10W, 3M)

Ready todeliver

Shortage list(afternoon)

RUN MRP(afternoon)

Unchanged data

Second receiving

Key-in SAP(Qty)

To-Be Purchasing Process Model

(1)Forecast and Forecast Commitment Process(2)Pull Signal Status Process(3)Hub Inventory Status Process

construct the Real-Time Supply Chain System for exchanging the information

Forecast (14D,10W+3M)

Forecast Commit

Actual delivery time

Forecast

POStatus

PullSignal

Product,WIP,raw material

Company ICompany I

PO Bal Qty / Invoice Price

Received qty, rejected qty

Less than Safety inventory

PO status

Delivery status

Pull Signal with lot#

Order Commit (ETD/ETA)

PO Qty / Price Variance

PO Status

Data Flow

QI Status

BufferPolicy

Supplier

Real-Time Supply Chain System

(1)Forecast and Forecast Commitment Process

Real-Time Supply Chain System Supplier

Run MRP

Update MRPData

Purchase Dept.

ERP

SAP MRP System

New SO

6 M Forecast

(14D,10W,3M)

Warehouse

Know whether the supplier can satisfy the

future demand or not.

Prevent the shortage in advance.Reduce the safety inventory

ConsolidateDemand

Feedback how many demands they can commit according to MPS

ForecastCommit

XML

①

②

(2)Pull Signal Status Process

MRP System

checkKey-in SAPReceived QTY

Real-Time Supply Chain System SupplierSAP MRP System

Expected Time to Deliver (ETD)Expected Time to Arrive (ETA)

Expected delivery quantity

Quantity of goods and the departing time

Prepare shipment

Bar Bar CodeCode

Pull Signal Pull Signal StatusStatus

Prepare for receiving

Prepare replenishment

ERP

Update

This mechanism makes replenishment more efficient

Company I can get the in-transit qty, ETD, ETA and so on.

Purchase Dept. Warehouse

Warehouse Key-in SAP

QI Process

Defective items

Rejected QTY①

②

③

(3)Hub Inventory Status Process

HubHubInventoryInventory

StatusStatus ProductProduct、、WIWIPP 、、 Raw Raw MaterialMaterial

ERP

Real-Time Supply Chain System SupplierSAP MRP SystemPurchase Dept. Warehouse

Company I monitors the inventory to prevent the shortage.

This can also help Inventec response customer’s inquiry quickly.

WarehouseSFC system

Raw Material WIP, Product

Mapping

PO# and SO#

Mapping Table

know the status ofappointed key component

Product,WIP,Raw Material, and the status

of PO

Query

The Architecture of Real-Time Supply Chain System

Aggregation Server

IIS,Mail Server,etc.

Hub ServerUser Xagent Server

SAP

XAgent

SAP

Client

SAP DB

SAP App Server

FirewallProxy Server

FirewallProxy Server

internet

JDBC XAgent

Oracle JDBCOracle

Oracle ERP

Existing system

New system

Company I

Supplier

Integrate non-homogeneous OS and DB

XML

XML

User

query

Control Xagents to collect data from the DB and update data to the corresponding fields

Information Flow

SAP

a. Forecasting Planb. Actual Demand Planc. Material #

Xagent

Agg. Server

Analysis Report

Xagent links to the database and collect the data

Oracle

Xagent

a. on-hand qtyb. WIP qtyc. Allocate forecast qtyd. Commitment plane. Item# cross-reference

Temp

Xagent

XMLXagent sends the data into the supplier’s database directly

Also, the supplier feedbacks the information by Xagent

1. Time Trigger ex:MRP2. Event Trigger3. Pulling (when data

change)

Expected Benefit

1. Prevents the shortage in advance

2. Makes replenishment more efficient

3. Gets the in-transit qty, ETD, ETA and so on

4. Decreases cycle time

5. Reduces supplier’s safety inventory

6. Improves customer service

Conclusion

• In the project, Company I and the supplier try to plan collaboratively ,find out the problem timely, and solve the problem in advance. And they use the real-time supply chain system to exchange the information

•This project is proceeding now. Success of this project depends on the cooperation of both sides in the managerial and technical aspects. Then, it can make the information system align around business processes.

Documents

Final Project A case study of The Real-Time Supply Chain System in Company I Group 2 Members: 923811 Angela 923824 Ivan 923831 Jimmy