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ERP Comprehensive Summary

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ERP Comprehensive Summary Passed first exam chance. Only learned from this summary! lessons + notes

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  • March 16, 2022
  • 46
  • 2021/2022
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By: sachablomme0 • 2 year ago

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ERP = ENTERPRISE RESOURCE PLANNING


WHAT IS ERP?
1: sales deparktment: what do you want?
2: client: I order a cargo bike with flexible rood in red… → an agree = sales order
3: check the stock / chech availability 2 options:

the bike is available in WHS the bike is not available in WHS
The cargo bike is being shipped to Be Produce a new bike
→ do we have all the parts?
Send invoice & receive payment Yes: start production: PP No: buy parts/raw mat.: MM
• 3 departments involved: Sales, Logistics & • Even more departments involved: Sales, Logistics,
Finance Finance, purchase & production

EXAMEN: Wat is 3-way match?
De drie sub processen, de documentatie moet exact overeenkomen met het physical proces
en financial proces (invoice). Want als dat niet klopt, verlies je betaling!!!

PRACTICAL PROBLEMS?
• The right communication
• Reduce waiting time
OPLOSSING → ERP
Sales departement gaat informatie instoppen (naam klant, adres, …) = master data
Purchase department → leveranciers, merken..
Production department, Finance ook allemaal
Op een duur gaat het stysteem vanzelf een beetje aan het werk, stock bijhouden, duur
productie bijhouden + plannen, kan zelf orders plaatsen…

How?
• Contract in computer
o Customers, bicycle types
• Automatic search in stock
• Automatic calculation delivery date
o Based on availability & production time
• Automatic order parts
o Via system, vendors in system, parts in system
• Automatic start of production steering
• Automatic stock keeping

,How everyone works/ needs the system
2 operational processes




Supporting processes
People feed the system > Only correct input of data will lead to success !! → SOD

→ SOD: Segresation of duties → verantwoordelijkheid splitsen & verantwoordelijken
opstellen zodat er minder fouten gemaakt worden. Fraude tegengaan, door elk proces
andere verantwoordelijken aan te stellen.

SOME IMPLICATIONS
1. Segregation of duties – SOD
• 3 different persons per transaction: 3-way match / 3 sub processes
2. Master data management → Often done by a separate team!! MDM-department
• WHY?
o No double entries
o Understand significance of every field
o Correct sequence of entrance
3. A lot of DATA in 1 database
• Opportunities for analysis
• BIG DATA
• Online Analytical Processing tools (OLAP)

EXAMEN: WAAROM ZOU JE EEN APART TEAM INHUREN OM MASTER DATE IN TE GEVEN?
Nadeel: geld
Voordeel: specialisatie, geen dubbele ingaven
Je kan maken dat alleen de verantwoordelijken zijn departement kan aanpassen zonder
andere zaken aan te passen.

Why SAP?
• German = professionalism
• World wide usage
• For all industries
• Advantage for future job opportunities
• Market leader in enterprise software

,SALES & OPERATIONS PLANNING
S&OP = Sales and Operations Planning
The bird’s eye view → Coordination of all processes → See what is coming…
- How many products do we need to produce
- for today’s demand?
- For future demand
- What stocks do we need to keep?
- How quickly do we need to buy raw materials?
- How many raw materials do we need in stock?
- …

1.1. PHASE 1 OF THE S&OP: FORECASTING
Forecasting =
• Try to make a forecast of future sales
• Different ways:
o Put real sales in the system & Extrapolate for the future
o Own forecasting on basis of research
• Who? Marketeer (dreamer) + demand planner (more realistic, is het haalbaar?)
• Marketer: develop new customers, markets and products; allow the existing ones to
grow.
• Demand Planner: create realistic and achievable demand, in such a way that the rest of
the logistical and production can get organised in time.
• The demand planner carries the responsibility of delivering a forecast in numbers.

FORECASTING... ACCURATE?
• Forecasting is the foundation of a reliable SOP
• Accurate forecasts are essential in the manufacturing sector
• Overstocked & understocked warehouses result in the same thing: a loss in profits.
• Forecasts are ALWAYS WRONG

Supply chain planning, to a large degree, starts with forecasting. Matching supply and
demand is an important goal for most firms and is at the heart of operational planning. It is
also of significant importance as the overly optimistic Cisco found in 2001 when it took a
$2.2 Billion inventory write-down because of their ability to “forecast demand with near-
scientific precision” 1. Since most production systems can’t respond to consumer demand
instantaneously, some estimate, or forecast, of future demand is required so that the
efficient and effective operational plans can be made.

Forecasts are always wrong, but some are “more wrong” than others. Forecasting the
demand for innovative products, fashion goods, and the like is generally more difficult than
forecasting demand for more “commodity-like” products that are sold on a daily basis.
Aggregate forecasts of a group of similar products are generally more accurate than
individual forecasts of the individual products that make up the group. Finally, the longer the
forecast into the future, the less reliable the forecast will be.

, FORECASTING IN ERP / SAP
• Forecasting Models
o Trend
o Seasonal
o Trend and Seasonal
o Constant
• Selecting a Model
o Automatically
o Manually

FORECASTING = ROLL UP PROCESS




➢ Outstanding orders
➢ Already committed call off
contracts



stock keeping unit: black, white & red

From SKU- level to a From product group
forecast on product group level level back to SKU level



1.2. PHASE 2 OF S&OP: DEMAND PLANNING
Demand planning =
• Central concept = independent demand.
• Independent demand: The demand of the market for the product or services of a
company.

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