Overview and Case 2 Orientation

Overview and Case 2 Orientation - Overview and Case Study...

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Unformatted text preview: Overview and Case Study 2: Overview and Case Study 2: ERPsim Manufacturing (I) EGN 5621 Enterprise Systems Collaboration Fall, 2011 Objective Objective The objective of the Manufacturing introductory ERPsim is to provide a quick hands­on experience of an integrated business process through an ERP manufacturing ERPsim, which combines basic operation functions, such as planning, sales, production, procurement, marketing, investment, and financial accounting for learning how to make business strategy and business decisions. Corporate Roles Designation Corporate Roles Designation CEO (Team Leader) ◦ Watch financial statement ◦ Price market report ◦ Check summary sales report ◦ Check sales and market data ◦ Check inventory Report Marketing Manager ◦ Marketing Expense Planning ◦ Price market report ◦ Check sales and market data Sales Manager ◦ Change price ◦ Check summary sales report ◦ Check sales and market data MM Manager ◦ Forecast – create planned indep. Req. ◦ MRP run ◦ Automatic generation of POs ◦ Purchase Order Tracking ◦ Check inventory Report 3 Operations in the Operations in the cash­to­cash cycle The Virtual Business Environment The Virtual Business Environment Simulation of a market Automation of administrative tasks Simulation of the passing of time Organizational elements Organizational elements Organizational elements Organizational elements Organizational elements Organizational elements Organizational elements Organizational elements Data model of the main master data used Data model of the main master data used in the simulation game Definition of master data (1/2) Definition of master data (1/2) Definition of master data (2/2) Definition of master data (2/2) List of master data to create for the List of master data to create for the simulation Muesli Cereals Muesli Wheat Nuts Blueberries Oats Raisins Strawberries Your 6 products Your 6 products 40% wheat 40% oat 20% nut 1 box 1 bag 40% wheat 40% oat 20% blueberry 1 box 1 bag 40% wheat 40% oat 20% strawberry 1 box 1 bag 40% wheat 40% oat 20% raisin 1 box 1 bag 50% wheat 50% oat 1 box 1 bag 35% wheat 35% oat 10% raisin 10% nut 5% strawberry 5% blueberry 1 box 1 bag Data model of product Y$$­F06 Data model of product Y$$­F06 German market German North DC10: 2 retailers DC12: 19 retailers West DC10: 3 retailers DC12: 17 retailers South DC10: 7 retailers DC12: 23 retailers Muesli Manufacturing Muesli Manufacturing Association Label Regulation Input Cost Input Cost at low seasonal price Number of stores by Number of stores by geographical area DC10 DC10 Hypermarkets Buy only large boxes (1 kg) Payment delay of 20 steps More sensitive to price Less sensitive to advertising Will have a stronger preference for 3 particular products during the simulation DC12 DC12 Grocery chains Buy small boxes (0.5 kg) and large boxes (1 kg) Payment delay of 10 to 15 steps Will have a stronger preference for 4 particular products during the simulation DC14 Independent grocers DC14 Independent grocers (will be used in Extension ERPsim) Only buy small boxes (0.5 kg) Less price sensitive Sensitive to advertising Payment delay of 5 to 15 steps Will have a stronger preference for 3 particular products during the simulation Number of retailers per Number of retailers per Locations Risk premium on credit Risk premium on credit ratings Production improvements Production improvements (will be used in extension ERPsim) Warehousing cost Warehousing cost automatically charged Each team has 3 warehouse storage areas: ◦ Finished product ­ space for 250,000 boxes ◦ Raw materials ­ space for 250,000 kg ◦ Packaging ­ space for 1,000,000 boxes and space for 1,000,000 bags Additional warehouse space can be rented: ◦ 100,000 boxes (or part thereof), @ € 200/step (less than € 0.01 per box per step) ◦ 100,000 kg (or part thereof), @ € 350/step (more expensive because it's raw food product) ◦ 100,000 boxes AND/OR bags (or part thereof), @ € 50 step Fixed costs per week Fixed costs per week Review of the major rules Review of the major rules You may not change the recipe of a product if you are still carrying inventory Customers preferences do not change throughout the game, hence you may learn from their past behavior The company displaying the highest shareholder’s equity at the end of the simulation wins the game You must behave ethically at all times The end of game inventory will be value at cost price in the final balance sheet. Therefore, you shouldn’t sell under cost at any time during the game. Elements of a winning strategy 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 Game layout Game 30 min 30 steps 30 min 30 steps 30 min 30 steps Rules of the game Rules • • • • • Each round will be of 30 steps (approx 1 min per step) 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 Participant’s job aid Participant’s Let’s get started! Let’s • 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 giving by your teacher Client 265 Login : intro_$# $ = Team, # = User 1 to User 4 Password: ERPSIM Login information Login SAP Menu & Navigation SAP Menu & Navigation Introductory Game: Round 1 Round 30 min 30 steps Cost, inventory & initial pricing Cost, Material $$-F01 $$-F02 Nut Muesli 1.0 kg. Blueberry Muesli 1.0 kg. Raw material Cost € 1.53 € 1.97 € 1.97 Standard cost € 2.48 € 3.09 Initial price 10 12 € 4.24 € 4.49 100,000 Name Initial stock $$-F03 $$-F04 $$-F05 $$-F06 Original Muesli 1.0 kg. Mixed Fruit Muesli 1.0 kg. € 1.38 € 1.36 € 1.76 € 3.09 € 2.50 € 2.65 € 2.89 € 5.18 € 5.43 € 5.18 € 5.43 € 3.92 € 4.17 € 3.87 € 4.12 € 4.75 € 5.00 100,000 100,000 100,000 100,000 100,000 Strawberry Raisin Muesli Muesli 1.0 kg. 1.0 kg. The Introductory game: The Introductory game: Round 1 (30 steps­ 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 Participant’s Check product costing Check Maintain Prices for DC 10 & 12 Maintain Marketing expense Marketing expense Stock in material overview Stock Check sales summary report Check Check sales order report Check Check market report Check Check financial statements Check The Introductory game: The Introductory game: Round 1 (30 steps – 30 days) We start the simulator for 30 steps Introductory game: Round 2 Round 30 min 30 steps Participant’s job aid & Menu Participant’s Release production order Release production order Check production schedule Check production schedule Parameters of the game Parameters of the game The Introductory game: The Introductory game: Round 2 (30 steps ­ days) We start the simulator for 30 steps Introductory game: Round 3 Round 30 min 30 steps Participant’s job aid & Menu Participant’s Raw material cost per PO Raw material cost per PO Forecasting Forecasting Execute MRP Execute After the MRP run After the MRP run Convert purchase requisitions into Convert purchase requisitions into purchase orders The Introductory game: The Introductory game: Round 3 (30 steps – 30 days) We start the simulator for the last 30 steps Track purchase orders Track Profit center analysis Profit center analysis Liquidity planning Liquidity planning ...
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This note was uploaded on 12/11/2011 for the course EGN 5621 taught by Professor Staff during the Fall '11 term at FIU.

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