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Summary Operational Excellence with exam questions

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Contains all slides and notes from all the classes, as well as the a and triple-a questions

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  • November 8, 2023
  • 144
  • 2022/2023
  • Summary
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OPERATIONAL EXCELLENCE
1 ERP (Enterprise Resource Planning) ............................................................................ 4
1.1 Department Structure ..................................................................................................................... 5

2 Sales & Operations Planning .................................................................................... 17
2.1 Phase 1 of the S&OP: Forecasting ................................................................................................. 17

2.1.1 Forecasting … accurate? ................................................................................................................. 18

2.1.2 Forecasting in ERP / SAP ................................................................................................................. 18

2.1.3 Forecasting = Roll up process ......................................................................................................... 19

2.2 Phase 2 of S&OP: Demand planning .............................................................................................. 20

2.3 Phase 3 of S&OP: Supply planning ................................................................................................ 21

2.3.1 Supply planning in S&OP................................................................................................................. 21

2.3.2 Q1: Enough raw materials? ............................................................................................................. 22

2.3.3 Q2: Enough Machine Capacity? ...................................................................................................... 23

2.3.4 Q3: Enough People Capacity? ......................................................................................................... 24

3 Production Planning: most complicated ................................................................... 26
3.1 Forecast Consumption .................................................................................................................. 26

3.2 Netting .......................................................................................................................................... 28

3.2.1 Master Production Schedule .......................................................................................................... 29

3.2.2 Independent versus dependent ...................................................................................................... 29

3.2.3 Production Planning........................................................................................................................ 30

3.2.4 Netting explained at SKU level ........................................................................................................ 30

3.2.5 Replenishing the stock at SKU level ................................................................................................ 31

3.2.6 Replenishment ................................................................................................................................ 31

3.3 From SKU level to raw material level: MRP ................................................................................... 32

4 Sales........................................................................................................................ 34
4.1 The Process ................................................................................................................................... 34

4.1.1 Sales Order Process ........................................................................................................................ 34

4.1.2 The pre-sales activities = Selection process… ................................................................................. 34

4.1.3 Transaction Process ........................................................................................................................ 38

4.2 Master Data .................................................................................................................................. 47

4.2.1 Definition ........................................................................................................................................ 47



1

, 4.2.2 Master data in sales ........................................................................................................................ 47

4.3 In SAP (GBI – Case SD) ................................................................................................................... 52

4.3.1 Global Bike Inc. ............................................................................................................................... 52

4.3.2 Process Integration – Case SD (same as the circles) ....................................................................... 57

4.3.3 Process Integration – Case MM (same as the circles) .................................................................... 58

4.3.4 Document Flow ............................................................................................................................... 58

5 Purchase.................................................................................................................. 60
The Process ............................................................................................................................................... 60

5.1.1 Purchase Process (page 148) .......................................................................................................... 60

5.1.2 Special situations ............................................................................................................................ 73

5.2 Master Data .................................................................................................................................. 74

5.2.1 Vendor Master Data ....................................................................................................................... 74

5.2.2 Material Master Data...................................................................................................................... 75

5.3 In SAP: GBI – Case MM .................................................................................................................. 77

5.3.1 MM Organizational Structure (Materials Mgmt.) ........................................................................... 77

5.3.2 GBI 2.0 Structure for Materials Management ................................................................................ 78

6 The Production Process ............................................................................................ 79
6.1 Overview....................................................................................................................................... 79

6.1.1 Release production order – 3 ways ................................................................................................ 79

6.1.2 Preparation ..................................................................................................................................... 80

6.1.3 Stage and Setup .............................................................................................................................. 82

6.1.4 Produce ........................................................................................................................................... 83

6.1.5 Complete ........................................................................................................................................ 84

6.2 Master Data .................................................................................................................................. 86

6.2.1 PP Master Data ............................................................................................................................... 86

6.2.2 Material Master Views .................................................................................................................... 86

6.2.3 Bill of Materials (BOM) ................................................................................................................... 87

6.2.4 Routing............................................................................................................................................ 88

6.3 In SAP: GBI – Case PP (not to be known for the exam) .................................................................. 90

6.3.1 PP Organizational Structure ............................................................................................................ 90

6.3.2 GBI 2.0 Structure for Production Planning...................................................................................... 91

6.3.3 GBI 2.0 Enterprise Structure in SAP ERP (Logistics) ........................................................................ 91

7 Total Quality Management 1: General Principles of Quality ..................................... 92
7.1 Quality in tme …............................................................................................................................ 93




2

, 7.2 What is quality? ............................................................................................................................ 93

7.3 Quality versus Reliability ............................................................................................................... 94

7.4 Three phases… striving for quality in organizations ...................................................................... 95

7.4.1 Aspects of TQC, ‘Total quality control’ ........................................................................................... 96

7.5 Positioning TQM in an organization .............................................................................................. 97

7.5.1 Processes ........................................................................................................................................ 97

7.5.2 Driving / mastering ......................................................................................................................... 98

7.5.3 Primary Processes > aim for quality.............................................................................................. 100

7.6 Founders of TQM ........................................................................................................................ 103

7.6.1 When can we talk about quality management? ........................................................................... 105

8 Total Quality Management 2: Quality Improvement Techniques ............................ 107
8.1 First way: End-inspection ............................................................................................................ 107

8.2 Better: Process thinking / process Control … ............................................................................... 108

8.2.1 Supply Chain Management ........................................................................................................... 109

8.2.2 How process-control? ................................................................................................................... 109

8.3 Certification ................................................................................................................................ 114

8.3.1 Types of certification .................................................................................................................... 115

8.3.2 ISO ................................................................................................................................................. 116

9 Total Quality Management 3: Continuous Improvement ........................................ 120
9.1 Balanced Scorecard ..................................................................................................................... 120

9.1.1 From Critical success factor to (CSF) Key performance Indicator (KPI’s) (KPI has to be measurable)
122

9.2 Theory of Constraints .................................................................................................................. 123

9.2.1 A constraint................................................................................................................................... 123

9.2.2 Goldratt ......................................................................................................................................... 124

9.3 Lean… Based on Toyota Production System ................................................................................ 124

9.3.1 Six sigma ....................................................................................................................................... 126

9.3.2 EFQM ............................................................................................................................................ 128

9.4 Quality in service industry… ........................................................................................................ 129

9.4.1 Servqual ........................................................................................................................................ 130

9.4.2 Customer Service Assessment scale ............................................................................................. 132

9.5 Customer Service ........................................................................................................................ 132

9.5.1 Elements of customer service? 3 Phases ...................................................................................... 132

9.5.2 Complaints .................................................................................................................................... 133

9.6 From improvement management to innovation management ................................................... 133


3

, 1 ERP (ENTERPRISE RESOURCE PLANNING)


▪ If we want to maximize profits (objective), we should use the resources in the most efficient way → costs
will be lower
▪ Plan the usage of the resources in the most efficient way
▪ Can be anything: procedure, plan on paper, mostly a software

Book: page 1 to 35




Full operational cycle of a company

▪ Three main cycles of a company to bring added value to the company:
o production,
o sales,
o purchase (important!),
o but also production planning (has nothing to do with the SAP terminology) → ERP
▪ SAP: software to do erp, uses other terminology like sales and distribution, production is
production planning




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