ERP Assignment
Download as DOCX, PDF1 like1,348 views
This document provides an introduction to SAP ERP. It outlines several key business functions and processes that ERP systems integrate, including marketing and sales, supply chain management, accounting and finance, and human resources. It also discusses some SAP-specific planning tools like rough cut capacity planning and sales and operational planning. Key benefits of ERP systems include single system integration, replacing inefficient legacy systems, data access and sharing across departments, and improved business processes.
ERP Assignment
- 1. INTRO TO SAP ERP By MuhammadHussain 20141-17712 Enterprise Goals 1. Resources 2. People 3. ??? ERP Benefits 1. Replace inefficient systems with one that is functionally integrated. Single Integration. 2. Provide a state-of-the-art technical infrastructure to better serve employees and customers. 3. Empower users with more control over systemfunction, service, and scheduling. 4. Utilize a completely web-based system. Allow Portability 5. Eliminate paper and forms where feasible and sensible. Cloud Data 6. Provide easy access to data and information via decentralization. 7. Develop new, more efficient processes that fully leverage the technology investment. 8. Eliminate data redundancy and knowledge silos. 9. Enforce Compliance policy and procedures. SAP= SystemAnalyse Programming(SystemApplicationsProduct) Audit Purpose:IdentifyGaps TCO: Total Costof Ownership ERP HCM PM PM MM SCM CRM FM MIS
- 2. Total Quality Management IdentifyGaps Classification Root Cause of Analysis Corrective Action PreventiveAction Kaizen<Continuous> ERP Failure Ratings80% Do not knowhowto implement Do not knowaboutupdate and upgrades ERP History 1990- CoinedbyGartnerbut the rootsdate back to 1960s. Back thisconceptappliedto INVENTORYMANAGEMENT& CONTROLinthe manufacturingsectorsector Software Engineers createdprogramtomonitorinventory,reconcile balance &reportinbalance By 1970 EvolvedintoMaterial RequirementsPlanningMRP SystemsforProductionprocesses By 1980 move to Manufacturing Resource PlanningMRPII Inventory= Raw Material Semi FinishedGoods FinishedGoods Infoisalso inventory. ERP-SAP Purchase Order Learning Outcomes: The SAP andmanuallycraftedPurchase orderare similar. But whatmakesSAPstand apart isthe use of Automationand IntegrationtoInvoice,andRecipts. AllowsDeliveryDates,Calculationof pricesandnetprices.Full listof vendors. AdjustingConditions Thisalsoallowsdata visualizationandeditingonthe goand portability.
- 4. Chapter 1: BusinessFunctions& Processes- Conceptsin ERP ERP issoftware thatintegratesall businessfunctionsandprocesses. BusinessProcessesare set of activitiesof aparticularbusinessfunctions. BusinessFunctionsbelongto 4 main areas: 1. Marketing and Sales– CustomerRelationshipManagement Marketing & Sales Process Marketing and Sales:BusinessFunctions • Marketinga product • CustomerSupport • TakingSalesandOrders • SalesForecasting • Advertising Marketing and Sales- Mappingfor ERP and Business How does Marketingand Salesfunctionsin ERP System
- 5. Marketingand Salesdevelopsproducts,setsproductprices,promotesproductsthrough advertising Marketing,takescustomerorders,supportscustomers. Createssalesforecasts. To summarize,inputsforMarketingandSalescouldinclude the following: • Customerdata • Orderdata • Salestrenddata • Per-unitcost Companytravel expensepolicyOutputsforMarketingandSalescouldinclude the following: • Salesstrategies • Productpricing • Employmentneeds 2. SupplyChain Management SupplyChainManagementdevelopsproductionplans,ordersraw materialsfromsuppliers, receivesthe rawmaterial intothe facility,manufacturesproducts,maintainsfacilities,andships productsto customers. To summarize,inputsforSupplyChainManagementcouldincludethe following: • Productsalesdata • Productionplans • Inventorylevels • Layoff and recall companypolicy
- 6. Outputsfor SupplyChainManagementcouldinclude the following: • Rawmaterial orders • Packagingorders • Resource expenditure data • Productionandinventoryreports • Hiringinformation SupplyChainManagementdevelopsproductionplans,ordersraw materialsfromsuppliers, receivesthe rawmaterial intothe facility,manufacturesproducts,maintainsfacilities,andships productsto customers. 3. Accounting and Finance AccountingandFinance performsfinancialaccountingtoprovide summariesof operational data inmanagerial reports,andalsoisresponsiblefortaskssuchas controllingaccounts,planning and budgeting,andcash-flowmanagement. To summarize,inputsforAccountingandFinance couldinclude the following: • Paymentsfromcustomers • Accountsreceivabledata • Accountspayable data • Salesdata • Productionandinventorydata Payroll andexpense dataOutputsforAccountingandFinance couldinclude the following: • Paymentstosuppliers
- 7. • Financial reports • Customercreditdata 4. Human Resource Management Human Resourcesrecruits,hires,trains, andcompensatesemployees,ensurescompliance with governmentregulations,andoverseesthe evaluationof employees. To summarize,inputsforHumanResourcescouldincludethe following: • Personnel forecasts SkillsdataOutputsforHuman Resourcescouldincludethe following: • Regulationcompliance • Employee trainingandcertification • Skillsdatabase • Employee evaluationandcompensation
- 8. WM 1: DisplayStorage Bin WM 2: RunBin StatusReport
- 9. Intro to SAP ERP Learning Outcomes Rough Cut Planning This is a planning tool to expedite the process of production planning. Itis the coordination plan that balances out the sales/marketing and production plans; whereby matching the capacities of productions and sales and demand. This allows meeting the demands without the excess or inadequacy of inventory of products/goods. InSAP RCCP can be customized and preview is available. This can scheduleparameter details. Master Data, The next step is to create the rough-cut planning profile on transaction MC35. In this example, I’ll create the rough-cut planning profile for a material, however, it is also possible to create it for a product group (if all the materialsare using the same work center) of for an info structure, case you are using flexible planning. Sales & Operational Planning
- 10. The S&OP cycle is monthly with a set calendar of meetings culminating in a senior management sales and operations planning meeting. The preparation meetings utilize the outputs of the ERP system. The first step in the S&OP cycleis to extract sales history, production history, and inventory levels. These are measured against plan to highlight variances and to establish accountability. The sales history is utilized to generate a sales forecast, using the forecasting module of the ERP System. This is frequently a consensus process. With a consensus forecast generated it is reviewed in a sales planning meeting with action items generated to increase sales in strategically important areas. Based on these sales plans the forecast can be revised The purpose of Sales and Operations Planning is to establish proper production rates and operational capacity to affect: Inventory levels Customer backlog levels Work force stability The Sales and Operations Planning is also establish to extend planning horizon sufficient to manage: Labor Equipment Facilities Materials Finances
- 11. Tasks Create Sales & Operational Plan Procedure > Production>SOP>Disaggregation>Transfer PG to demand Planning Demand Management Procedure Logistics>Production>Production Planning>Demand Management> Planned IndependentRequirements> Displays Logistics SOP Disaggregation Transfer PG to Demand Planning
- 12. Is the tool used to disaggregateplanning data fromhigh- level plans down to the detailed planning level. Manage and analyze demand streams to feed operational planning and drive greater productivity and customer satisfaction Match supply more closely with demand using SAP software for demand management to improve efficiency, productivity, and customer satisfaction levels. Collect internal and external demand streams, analyze their input, and use the resulting insight to create rational demand plans and update them as needed. Integrate internal and external demand data across sales and supply functions as a foundation for trade promotion activities and other means of demand shaping. In SAP For this task, planning for the Deluxe Touring ProductGroup will be broken down into individual components that belong to this group. Transferring SOP to Demand Management Logistics Production Production Planning
- 14. FI Case Study Chapter7: ProcessModeling,ProcessImprovement,andERPImplementation FreightonBoard FreightonReceiptorFreighton Rail??? <Deliverytofactory> MKT sendsquerytoPPC< PPCsends itsQA to production. AfterreceivingcommitmentfromQA & Production. MarketingmakesDecision&informs customers.