Manufacturing game. ERPsim Simulation Objectives. ERPsim Manufacturing Intro 16/06/2015. Enterprise System Simulation

Transcription

1 Roger Hayen, PhD. Professor of Information Systems Emeritus Baton Simulations Training Partner Phoenix One Ltd. (989) Enterprise System Simulation Manufacturing game ERPsim Simulation Objectives 1. Experience an integrated business process and the impact of real-time information from the enduser perspective 2. Understand how enterprise systems support business strategies and decision-making 3. Develop SAP navigation skills 4. Discuss lessons learned (from the simulation) and strategic, operational or organizational implications for your organization 1

2 Manufacturing Simulation Basics Participants work in teams to: Operate a make-to-stock manufacturing plant Interact with suppliers and customers by sending and receiving orders, scheduling production, delivering products, and completing the whole cash-to-cash cycle Using standard reports, participants have to Make business decisions to ensure the profitability of their operation ERPsim Simulation - Agenda Contents 30 min - Overview and Introductions 30 min - SAP Intro (login, short navigation) 50 min - Play Q1 (with pauses for analytics) 25 min - Debrief Q1, Strategy for Q2 30 min - Play Q2 25 min - Debrief and Strategy for Q3 30 min - Play Q3 min - Short Debrief of Q3 15 min - Strategy for Q4 (if time allows) 30 min - Play Q4 (if time allows) 30 min - Final Debrief and Wrap-up Description of your new company 2

3 Muesli Cereal Product size 1.0 KG Muesli Cereals Raw Materials Wheat Oats Nuts Raisins Blueberries Strawberries Your 6 products -- BOM 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 % raisin % nut 5% strawberry 5% blueberry 1 box 1 bag 3

4 Raw Material Cost, Initial Prices & Initial Stock Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06 Name Nut Muesli 1.0 kg. Blueberry Muesli 1.0 kg. Strawberry Muesli 1.0 kg. Raisin Muesli 1.0 kg. Original Muesli 1.0 kg. Mixed Fruit Muesli 1.0 kg. Raw material Cost Initial price Initial stock 0,000 0,000 0,000 0,000 0,000 0,000 Note: $$ is your unique company code designator Location of the 71 wholesale customers Examples: DC COSTCO, SAM S CLUB want volume at low price DC TARGET, KROGER, H.E.B. want variety Number of Customers (Stores) by Geographical Area DC DC DC 14 Not used in Intro ERPsim Note: These are NOT SAP Sales Areas 4

5 DC (Distribution Channel) Hypermarkets Buy only large boxes (1 kg) Payment delay of 20 days More sensitive to price Less sensitive to advertising Will have a stronger preference for 3 particular products during the simulation DC (Distribution Channel) Grocery Stores Buy large boxes (1 kg) Payment delay of to 15 days Will have a stronger preference for 4 particular products during the simulation Which will they be? (For your team to determine) What s an ERP? PP QM SD FI MM CO PM R/3 SAP ECC Client / Server HR IS AM PS WF 5

6 ABC of Enterprise systems An enterprise system is build around an integrated database A system such as SAP contains tens of thousands data tables When a user creates, changes or views data in the system, he or she performs a transaction Data changed or created by one user can be exploited by all other users (ex. reporting, tracking, execution of orders, etc.) All transactions are traceable, transactions with financial impacts can be reversed, never erased SAP ERP Integration Supply Chain C O N T R O L L I N G Finance Balance sheet Capital Costs Purchasing Manufacturing Sales/Distribution Procurement market Sales market Machines Operating resources Human resources R E S O U R C E S Interacting through SAP transactions Detail Transaction Steps 6

7 Business Processes in the full Cash-to-Cash Cycle CO2C Business Processes CO2C

8 Running a make-to-stock company ERPsim Transaction Steps Learning ERPim 3 ERPsim Transaction Steps 1 2 What is ERPsim? Automated by ERPsim Sales (decisions) Automated by ERPsim Production (decisions) 2 Automated by ERPsim Planning/Procurement (decisions) 3 Automated by ERPsim 1 8

9 Game Layout 30 min 30 days 30 min 30 days 30 min 30 days Big Picture CLOSED LOOP PROCESSES MANGEMENT DECISIONS (SAP Transactions) Customer Request Strategic Decisions Operational Transactions Satisfied Customer FEEDBACK from Application Modules (SAP Reports - Management Information for decision making) Pre-Sales Activities Sales Order Processing Inventory Sourcing Delivery Billing Customer Payment What is ERPsim? Results Viewer Your team s decisions ERPsim Simulator SAP ECC System Automated Transactions Logon with Internet Browser Logon with SAP GUI 9

10 What is ERPsim? ERPsim Simulator Cloud-based Processes Your team s decisions SAP ECC System Business Analytics Muesli Organization Structure Company Code $$ Germany (Deutschland) Sales Organizations (Level 1) $$ Sales Org $ Distribution Channels (Level 2) Hypermarkets Grocery Stores Plants (Level 1) $$ -- Factory $ Storage Location (Sloc) (Level 2) 02 Finished Goods 88 Raw Material How data are stored and accessed in SAP ECC Muesli Organization Structure Muesli SE $$ Company Sales Org $$ Plant $$ Hypermarkets DC Grocery Stores DC Finish Goods 02 Raw Material 88

11 Review of the major rules You may not change the recipe (aka material master) of a product Customers preferences do not change throughout the game, hence you may learn from their past behavior The company displaying the highest net income at the end of the simulation wins the game You must behave ethically at all times The end of game inventory will be valued at cost price in the final balance sheet. Therefore, you should not sell under cost at any time during the game. 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 Have fun! Rules of the Game Each round/quarter will be 30 virtual days (approx 1 min per day) 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 11

12 SAP Navigation User interface Users interact with the enterprise system through transactions. A large number of pre-programmed transactions exist in SAP ERP Each transaction has a transaction code one can call or execute a transaction directly if one knows the transaction code The SAP menu allows you to browse and find the desired transaction One can create a user menu or a list of favorites with the commonly used transactions SAP Menu & Navigation Command Box Main SAP Menu Bar Standard Toolbar Title Bar Application Toolbar Navigation Panel Note: Standard Toolbar appears with all screens Status Bar

13 SAP Menu & Navigation Using Main SAP Menu Bar select: Extras / Settings / Display technical names Note: Tcodes that begin with Z are unique to ERPsim Reports and queries Reports and queries are transactions that allow users to view existing data A typical query is performed as follows: In the first page of the transaction, you must enter the selection criteria for the query (ex. company code, product code, etc.) (org structure, as needed) Then, click on to execute the query A table containing the requested data will appear The display and layout can sometimes be modified Entering new data Some transactions are designed to change or create new data (change forecast, release purchasing orders, change sale price, etc.) The interface varies according to data required by the system The system will not allow you to save information if all the compulsory (aka obligatory) fields have not been filled You must save/release/confirm before exiting the transaction 13

14 Other useful buttons Use the navigation buttons to go back or get out of a transaction You can open up to 6 sessions. Click on to open a new session Delete, search, select all, view, enter. Participant s job aid Let s get started! 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 assigned by your instructor This uses the $$ notation where a $ is a single letter assigned uniquely to your team 14

15 Connect SAPGUI to SAP ECC If server not available, click Create new system icon Locate SAP Logon and launch it If available, double click Name of server to launch system logon Specify Logon SAP ECC System Click Next to specify SAP ECC System server Specify Logon SAP ECC System Fill out the following Description: ERPsim3 Application Server: erp3.batonsimulations.com Instance Number: 00 System ID: DEV SAP Routing String: *leave empty* Click Finish to return to SAP Logon dialog box, then double click the Name of your new entry in the Logon dialog box to launch the SAP ECC server 15

16 Logon SAP ECC System Enter Client Number as provided by instructor User: As Indicated on Job Aid Initial password: ERPSIM (all caps.) Press Enter When prompted, write new password twice Logon SAP ERP System Complete Logon by specifying new password When prompted, enter new password twice We suggest you use welcome Password IS case-sensitive Click Enter (green check mark) to compete password entry Logon SAP ERP System SAP Easy Access menu displays Logon is complete 16

17 SAP Menu & Navigation Command Box (used with Tcodes) Displays on Main Toolbar Team Roles Each participant plays one or more roles so that all business activities are covered: Procurement Sales Shipping & Receiving Accounting Roles Inventory (Warehousing) Production Planning Production Execution Introductory Game: Round 1 30 min 30 days 17

18 The Introductory game: Round 1 (30 days) You need to maintain the price of your 6 products and spend for 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 Check product costing 46 18

19 Maintain Prices for DC & 46 Marketing expense Each Day Recommended total maximum of 00 per day 47 Stock (inventory) in material overview 47 19

20 Check sales summary report Internal Company Info 48 Check sales order report 48 Check market report End each 5 Days External Company Info 48 20

21 Check financial statements 49 BA Dashboard - Excel (Example only) Using Excel with data obtained directly from SAP ERP Sales Order Report (ZVA05) as Export 49 BA Dashboard - Excel (Example only) Using Excel with data obtained directly from SAP ERP Sales Order Report (ZMARKET) as Export 49 21

22 Plan Round 1 Initial Pricing for Distribution Channels and Describe your plan for changing your prices throughout the quarter: Distribution Channel Material Material Description Price $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli Describe your plan for changing your prices throughout the quarter: 49 Plan Round 1 Initial Marketing Plan (Daily Amounts) Material Material Description North South West $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06 1kg Nut Muesli 1kg Blueberry Muesli 1kg Strawberry Muesli 1kg Raisin Muesli 1kg Original Muesli 1kg Mixed Muesli Describe your plan for changing your marketing (advertising) amounts throughout the quarter: 49 Plan Round 1 Team member responsibility assignments: Responsibility Maintain prices Maintain marketing expenses (advertising) Monitor inventory Check sales order report Monitor sales summary report Monitor market report Analyze sales summary & market results Monitor financial results Team member assignment 49 22

23 The Introductory game: Round 1 (30 days) Logon to SAP ECC client and enter initial data values for prices and marketing The Introductory game: Round 1 (30 days) We start the simulator for 30 days Debriefing Round 1 23

24 Overall Team Performance Introductory game: Round 2 30 min 30 days Participant s Job Aid & Menu 24

25 Release production order Note: Sequence of release establishes sequence of manufacturing! 50 Check production schedule 51 Parameters of the game 25

26 Plan Round 2 Initial Pricing for Distribution Channels and Describe your plan for changing your prices throughout the quarter: Distribution Material Material Description Channel Price $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli Describe your plan for changing your prices throughout the quarter: 49 Plan Round 2 Initial Marketing Plan (Daily Amounts) Material Material Description North South West $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 1kg Nut Muesli 1kg Blueberry Muesli 1kg Strawberry Muesli 1kg Raisin Muesli 1kg Original Muesli $$-F06 1kg Mixed Muesli Describe your plan for changing your marketing (advertising) amounts throughout the quarter: 2 Describe your plan for releasing Production Orders: 49 Plan Round 2 Team member responsibility assignments: Responsibility Maintain prices Maintain marketing expenses (advertising) Monitor inventory Check sales order report Monitor sales summary report Monitor market report Analyze sales summary & market results Monitor financial results Release production Team member assignment 26

27 The Introductory game: Round 2 (30 days) Logon to SAP ECC client and change values for prices and marketing and prepare to release Production Orders The Introductory game: Round 2 (30 days) We start the simulator for 30 days Introductory game: Round 3 30 min 30 steps 27

28 PO2P 56 Participant s job aid & Menu 28

29 Forecasting 53 Execute MRP 54 After the MRP run 29

30 Convert purchase requisitions into purchase orders 55 Track purchase orders 56 Plan Round 3 Initial Pricing for Distribution Channels and Describe your plan for changing your prices throughout the quarter: Distribution Material Material Description Channel Price $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli $$-F01 1kg Nut Muesli $$-F02 1kg Blueberry Muesli $$-F03 1kg Strawberry Muesli $$-F04 1kg Raisin Muesli $$-F05 1kg Original Muesli $$-F06 1kg Mixed Muesli Describe your plan for changing your prices throughout the quarter: 49 30

31 Plan Round 3 Initial Marketing Plan (Daily Amounts) Material Material Description North South West $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 1kg Nut Muesli 1kg Blueberry Muesli 1kg Strawberry Muesli 1kg Raisin Muesli 1kg Original Muesli $$-F06 1kg Mixed Muesli Describe your plan for changing your marketing (advertising) amounts throughout the quarter: Describe your plan for releasing Production Orders: 49 Plan Round 3 Forecast Sales: Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06 Material Description 1kg Nut Muesli 1kg Blueberry Muesli 1kg Strawberry Muesli 1kg Raisin Muesli 1kg Original Muesli 1kg Mixed Muesli Planned Independent Requirements 49 Plan Round 3 Team member responsibility assignments: Responsibility Team member assignment Maintain prices Maintain marketing expenses (advertising) Monitor inventory Check sales order report Monitor sales summary report Monitor market report Analyze sales summary & market results Monitor financial results Release production Execute MRP run Execute convert POs Monitor POs Do forecast 31

32 The Introductory game: Round 3 (30 days) Logon to SAP ECC client and change decision values and enter Sales Forecast The Introductory game: Round 3 (30 steps) We start the simulator for 30 days The Introductory game: Round 4 (30 days) Logon to SAP ECC client and change decision values 32

33 The Introductory game: Round 4 (30 steps) We start the simulator for the last 30 days Debriefing Conclusion 1. What were YOUR individual key learning moments? 2. How does decision-making and collaboration with real-time analytics differ from the way you currently operate? 3. What skills /competencies become critical in an integrated process environment? 4. What behaviors must management encourage/discourage to maximize value realization? 33