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Summary Lessons ERP
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This is an thorough summary of all the lessons ERP that you have on ArteveldeHogeschool.
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Samenvatting ERP:ERP
H1: ERP, what is that?
ERP
- Entreprise resource planning
3 big circles (departments or operational circles)
- Sales & distribution (sales department)
- Materials management (purchase department)
- Production planning (production department)
Sales department:
- Where it all starts
- ‘what do you want’ (pre-sales)
o Black touring bicycle
o Black helmet
o Knee pads
o …
- Front office process
o Direct contact with the customer
- Parties agree:
o Make sales order
- Step 1 ‘what do you want’
o Selection process
▪ Customer could walk away without a bicycle
- Step 2 ‘parties agree’
o Transaction process
▪ Transaction is done and customer promises to pay
- Check the stock
o Check availability
o 2 options
▪ The bike is available in the warehouse
• Pick & pack (the cargo bike is being shipped)
• Post goods issue (delivery → change of ownership is
happening)
• Send invoice & receive payment
▪ The bike is not available in the warehouse
• We need to construct a new bicycle
• Do we have all parts?
o Yes
▪ Start production (production department)
, o No
▪ Buy parts / raw materials (purchase
department)
- 3 departments involved:
o Sales
o Logistics
o Finance
- Even more departments can get involved (if we don’t have the parts)
o Sales
o Logistics
o Purchase
o Production
o Finance
- In the process there were 3 sub processes → 3 way-match
o When you make an order, the contract that we make needs to match with
what the customer has ordered but also with the invoice → All 3 documents
need to match 100%
- Practical problems?
o The right communication
▪ Reduce waiting time
o Solution?
▪ ERP
,o ERP
▪ How?
• Contract in computer (customer, bicycle type)
• Automatic search in stock
• Automatic calculation delivery date (based on availability &
production time)
• Automatic order parts (via system, vendors in system, parts in
system)
• Automatic start of production steering
• Automatic stock keeping
o Enterprise
▪ For companies
o Resource
▪ People and materials
o Planning
▪ Plan the sequence better
o
▪Everyone is working in the same database
▪SOD → segregation of duties
• Everyone has his own responsibilities / tasks → not everyone
can see everything in the software → everyone has his own
login with his own functions that he needs)
o Some implications
▪ SOD
• 3 different persons per transaction
• Each transaction here needs to be done by someone else →
making sure that there is no mistake (3-way match)
▪ Master data management
• Data can’t be changed all the time → only by people that know
what they are doing → master data management (not allowed
to do other actions → fraud)
, ▪ A lot of data in 1 database
• Opportunities for analysis
o Developing new strategies for your company through
scanning the data
• Big data
• Online analytical processing tools (OLAP)
Why SAP?
- German = professionalism
- Worldwide usage
- For all industries
- Advantage for future job opportunities
- Market leader in enterprise software
H2: Sales & operations planning:
S & OP
- Sales and operations planning
- The bird’s eye view
- Coordination of all processes
- A complete overview of the 3 main ‘activities’
Phase 1 of the S&OP: Forecasting
- Try to make a forecast of future sales
- Different ways
o Put real sales (historical numbers) in the system & extrapolate for the future
o Own forecasting on basis of research
- Who?
o Marketeer (dreamer)
▪ Develop new customers, markets and products, allow the existing
ones to grow
o Demand planner (realistic guy)
▪ Create realistic and achievable demand, in such a way that the rest of
the logistics and production can get organized in time
▪ The demand planner carries the responsibility of delivering a forecast
in numbers
- Accurate?
o Forecasting is the foundation of a reliable S&OP
o Accurate forecasts are essential in the manufacturing sector
o Overstocked & understocked warehouses result in the same thing → a loss in
profits
o Forecasts are always wrong!
- Forecasting in ERP / SAP
o Forecasting models:
▪ Trend
▪ Seasonal
▪ Trend and seasonal
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