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
, 4.2.2 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
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
6.1.3 Stage and Setup .............................................................................................................................. 82
6.1.4 Produce ........................................................................................................................................... 83
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
8.3.1 Types of certification .................................................................................................................... 115
8.3.2 ISO ................................................................................................................................................. 116
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
9.3 Lean… Based on Toyota Production System ................................................................................ 124
9.3.1 Six sigma ....................................................................................................................................... 126
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
4
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