Complete Picture eERP eBuz [Compatibility Mode]

8/6/2019 Complete Picture eERP eBuz [Compatibility Mode]

1/71

1/22

Prof V K Kamath We School Bayer 1

E- Commerce

Cost Efficient Integration with

External & Internal Partners

V K Kamath


Development of E - Commerce

Emails mostly point to point connections

Emails over internet

Static Web Pages advertisements etc

Real Time Web Pages One way traffic

Real Time On Line - Interactive Web pages

Integration with ERP eBusiness

Integration with any/ all systems eCommerce

(essentially addresses all Service Industries


2/71

1/22


Web Technology Development - E-Business

Emerged with the development of Java

language web technologies Now .Net, Visual basic, J2EE etc

Cost Effective because thin client is used

Accessibility from anywhere

Instantaneous data upload

Helps avoid physical catalogue printing

Data and Knowledge available to allcommunities

Data & Knowledge available all 24 hrs, 365days


ERP Solution

Business Processes

MM

SD FA

PP

QM

PM

HRIS

OC

PS

AM

CO

Internal Integration of Different Business Processes

Critical success Factor for E-Commerce/ E-Business


3/71

1/22


2001 onward

2000 - 2001

1995 - 1999

Up to 1994

eFinance

eGovernance

eCRM

ePayment

Vendor

eSRM

eProcurement

ePayment

Internal Integration

Internal

Integration +

Limited

External

Integration

Internal

Integration +

SignificantExternal

Integration

HR System

Accounts

Purchase Finance

Customer

Middleware System Integration

Sales & Distribution

Manufacturing

Project Management

Service Management

Quality Mgmt Human Factor

Document Management Systems / Data Acquisition Systems/ Devices Systems/ CAD &

CAM and Other Business Critical Applications


1 Electronic Commerce is buying and selling of products andservices over Electronic media2 It is Electronic Data Interchange (EDI)

3 Exclusive use of Internet for facilitating Data Interchange

4 Security systems is of Utmost importance

5 Electronic Data Interchange could be (a) Web Based or (b)

Web Enabled

6 It has Internet Application components

7 It has Internet Application server

8 It has Web Pages9 In short, we can make a Paperless office


4/71

1/22


10 When used along with ERP systems, we derivemaximum Business Benefits

11 When coupled with ERP systems, we have a Nth Tier

Architecture in the background

12 Web enabled architecture does the user authentication at

the client end

13 Web Based Architecture does user Authentication at the

Application server end

14 These Applications were developed to integrate a single

Customer to a single Suppliers in a seamless manner.

15 Avoids placing a Sales order or a Purchase order using

conventional means of Paper and Pencil (hard copy

exchange). Instead this purpose is served by Data

Interchange through Electronic media. One also receives

the acknowledgement as well.


16 These Capabilities were enhanced to create a VirtualMarket Places.

17 Virtual Market Places would mean that Vendors could

display their Products and Services through Electronic

means on a Host Server. Customers could visit these Host

servers and could scan prospective Suppliers and conduct

Business.

18 These Host servers are known as Portals. One can have

Portals for Trading purpose or for Knowledge

Management.

19 Use of Portals like Google for search and Knowledge arevery popular

20 When one conducts Business through Net (Ecommerce),

the vendors need to display their Goods and services on the

Host Servers. This is called Content Management


5/71

1/22


21 This Content Management is maintained by the HostServer persons. The Vendor pays Annual Maintenance

Charges.

22 The Vendors need to be registered on these Portals.

There is a nominal Charge for Registration.

23 The Vendors have to pay a Transaction fee when a

Purchase order is placed through this system.

24 The Big Revenue for Portals is from Advertisements that

get placed on these portals.


25 In Portals we create a community of vendors andcustomers across the Globe.

26 The success of the Portals is judged by the number ofdefined Vendors & Suppliers (registered), volume ofBusiness in Millions of $ earned through Commissions onthe Purchase orders placed through the system.

27 In cases where there are defined Customers andVendors on a long term Relationships, one need not usePortals. One can make the IT systems at both ends Talk toeach other. This makes a Paperless office system.

28 It was anticipated that the Business Travel would reducewith the advent of Internet. However, the travel hasincreased significantly since the Business Decision makingcycle has significantly reduced.


6/71

1/22


29 With the internet systems, there is a drasticreduction in paper or document travel ormovement from One Place to another or use of

paper.

30 Documents delivery has now becomeinstantaneous. This gives us enough time todiscuss business issues.

31 Whether one utilizes Portals or a directinternet connectivity between Vendors andCustomers, the Procurement or Sales cycles havereduced significantly

32 One can conduct all the business processes

through use of Internet technologies33 Pioneers in B2B portals are CommerceOne &

Ariba


34 CommerceOne was the most successful amongstthe two.

35 Both failed miserably since they lacked BusinessModel for revenue generation, customers wereafraid of security robustness etc

36 Dot Com bubble burst in 1999 was a majorreason for collapse of these 2 great Portals.

37 The Portal Business failed but the technologywas fully exploited by all individual customersand Vendors to complete their business cycles.

This was completed by directly interacting witheach others systems. There by establish a

paperless office initially..


7/71

1/22


Value Proposition Digital Economy

Business at Speed of Light

Competition is Keener than before

Look out for Strategic Advantages

Business needs to convert every Event into Opportunity

Open door at every knock

Imperative to reduce Costs in a perpetual manner

Improve Efficiencies to increase Profits & increase MarketShare

Extend your reach both in Buying and Selling throughpartnership with efficient Business Partners


Improve your Buying Process

Conduct your Complex & Time consuming Buying processOn-Line

Include Sourcing of Materials & Services, Tedious PaymentProcesses, Controls & Conviniences

Maximize your advantages for Supply Chain Processes

This On-Line procurement process capabilities bestows great

advantage for STRATEGIC BUYING. Without thistechnological support, very little time was devoted to this


8/71

1/22


Benefits of On-Line Buying

One comprehensive suite for sourcing materials,

integrating Logistics, processing payments with other

critical processes.

Complete Control enables your Business to monitor,

capture, automate & refine every stage of buying

process Saves upto 15% on MRO (Maintenance, Repairs & Operations)

Saves as much as 70% on purchse transaction costs

Saves from 70% to 100% on purchase orders, invoicing etc per

document

Lower product costs throufgh enhanced contract pricing leverage

during supplier negotiations

Substantial reduction in processing time

Reverse Auctions & On-line tendering widens purchasing processes


Benefits of On-Line Buying

Complete Control enables your Business to monitor,

capture, automate & refine every stage of buying

process

Reduction in cycle times to delivery less inventories &

inventory carrying costs

Enables efficient business analysis and improves business

profitability

Intefration with ERP & Legacy systems

Rapid resources deployment


9/71

1/22


Improve Procurement Processes On-Line

Tactical Procurement

Specify

Draw up program of requirements

Analysis of spend categories

Establish criteria for supplier selection

Select

Research supplier marketplace

Send RFI & RFQs

Assess suppliers against defined matrix

Assess quotations

Select suppliers

Contract

Negotiation of terms with suppliers Sign contracts


Improve Procurement Processes On-Line

Operational Procurement

Order Initiate requisition

Approve requisitions

Place & expedite PO

Track order & Deliveries

Initiate Financing & settlements

Monitor Review supplier performance

Collect data on company spending

Service Prepare contract revisions

Keep track of and schedule routine maintenance

V K Kamath


10/71

1/22


Improving Selling Processes More Customers, Sales Growth & Better Customer Intelligence

Shorter Sales Cycle

Tapping into a wider pool of customers on Global Trading Web

Managing and Fulfilling orders more efficiently

Enhancing stronger existing customer base & growing it further

Excellent analytics for what if analysis

Immense cost reduction and efficiencies

Improved response time.

Broadens options through innovative offerings

Complete control on Finish goods inventory

Improved product life cycle management


Improving Selling Processes Immense reduction in paper and administrative work

Efficient cycle time management from requisition to payment

Quick reach to customers through Call centers & Service centers

Elimination of non value added activities

High degree of data integrity

Integration with payment gateways

Adequate security on Net transactions


11/71

1/22


Enhancing Selling Processes

Collaborate with Trading Partners Management of Supply Chain System

Accurate & continuous monitoring of Supply Chain system

Supply & Demand management with help of tradingpartners

Tools to track and evaluate customers buying patterns

Partnerships with logistics partners for reliability

Create your own Market Place Create market leadership

Create communities and link with global counterparts

Cost reduction on account of economies of scale

Global reach through the global trading web Paperless office

Quick access and excellent response time


Case Study Electronic Industry


12/71

1/22


Electronic Industry Challenges to address Things move very fast

Critical success factors: Speed, direct access to all supply chain partners,

Collaborative Solutions with Stakeholders Co-ordinate product sourcing

Facilitate bills of Material

Accurate forecast

Get on-line information on Production requirements & replenishments on day

by day basis across global markets

Understand all pain points in Supply Chain management

Stream liningthe complex processes of bringing electronic products to

Marketplace

Execution of business transactions on secured web services/ services

providers


Electronic Industry Supply Chain pain points

Product Development

Shorter Product Development cycles

Cost efficiency

Innovations

Dynamism

Flexibility

Time to market

Procurement

Process disconnect

Lack of integrated planning

Lack of decision support

Lack of visibility

Maverick buying

Inability to coordinate across CEMs

Inability to tap into Larger supplier base due to lack of structured content


13/71

1/22


Electronic Industry Supply Chain pain points

Supply Chain Planning

Competitive Prices Reliability

Shorter lead times

Real time visibility into companies systems

Sales & Marketing Streamlining Demand creation across multiple sales channels

Matching demand creation with multi-enterprise supply


Electronic Industry Supply Chain pain points Order Promising & Logistics

Performing real time evaluation of all supply chain constraints

Offering pre-sales fulfillment information & options

Committing to accurate delivery dates

Sourcing multiple items from diseparate suppliers & delivering

Balancing customer service with net landed costs

Real time visibility into order status

Manage demand variability with supply availibilty

Detecting and managing exceptions in high velocity/ high volume environments

Service Planning & Scheduling Globalization

Channel complexities

More demanding customers

Faster product life cycles

Reverse logistics


14/71

1/22


E-Business Services Offerings

Supply Chain Collaboration

Design Collaboration Maintenance, Repairs & Operations

Request for Quotation

Direct Material Procurement

Auctions

Spot Buying

Quality Assurance Checks on Suppliers

Inventory Management Services Financial Settlement Services


E-Business Services Offerings Supply Chain Collaboration Supply Chain Planning

Helps planning for all types of Constraints

Strategic Planning examines future locates optimally locatedplants, capacities, best distribution centers for target markets

Demand Management estimates & manages supplies/demand

Supply planning matches available supplies with demand

Production planning & Scheduling planning with finite capacities what, when, where, how, by whom.

Order Management Strategic Sourcing links procurement to design & Supply Chains

Supply Chain execution links trading partners in Supply Chain

Sources optimal sourcing strategy for commodities/ supplies

Contract negotiation power to negotiate effectively

Purchase planning power to plan collaboratively for timing & Qty

Streamlined Order Management - smoothening/ shortening orderMgt


15/71

1/22


E-Business Services Offerings Design Collaboration

Design Collaboration Enables real time sharing of design and

specifications with functional and assembly simulation capabilities. Design Manager useful in new design : developmental costs, eliminate

redundancies in suppliers and parts.

Design Planner focus on maximizing revenue, market share, product

margins by optimizing product mix & Life cycle management decisions.

.

Maintenance, Repairs & Operations These are best addressed

by doing on line trading of standard goods & services at a

virtual matrketplace

Request for Quotation

Create requests in online method

Track email notifications to/ from suppliers

Correspond on line with suppliers


E-Business Services Offerings Direct Material Procurement

Use of unified traditional EDIs

EDI over the internet, RosettaNett & WEeb based EDI,

EDI interfaces directly with back end ERP systems & maximizes the power of in-

house applications

Procure over the Intranet or function as a service provider

Auctions

Effective on line Austion and Reverse auction transactions vis internet

Suppliers & Buyers are alike able to find each other easily.

Spot Buying

Buyers ans Sellers retain their autonomy whilst negotiation of price, quantuty and

timeto meet aggregate demand & supply Used by companies that need flexible inventory mgt

Examples:Analog devices, ASIC parts, logic chips, diodes, transistorsand switches

For sellers, this offers a good opportunity to liquiidate inventories

For buyers, it helps quick spot buying of urgencies to meet sales targets, prototype

building and an opportunity to buy quick;ly at an attractive prices

Open and scalable market place


16/71

1/22


E-Business Services Offerings

Quality Assurance Checks on Suppliers Strategic partnerships with QC related vendors across globe available easily

Covers suppliers, buyers, distributors as part of Supply Chain management Peace of mind when transacting valuable goods and services with third party

as well.

Inventory Management Services

Takes care of what, when and how much to stock in a ever changing market

of electronic components

Keeps u informed on obsolete components

Real time on line global visibility

Dynamic setting on max min stock levels

Automatic generation of notifications to vendors and 3rdparty

Detailed reports on all types of materials and their status


E-Business Services Offerings Shipment Logistics Track and- Trace Services

Different facets of Logistics is integrated

Gives seamless visbility on what is happening

Shipping information Exchange

Track and Trace at any time anywhere

Freight management and interface with banks and finalialinstitution

Integration with other logistic partners and freight forwardingagents

Integartion with the material handling of delicate parts,dangerous materials, explosives etc

Financial Settlement Services Linking with banks and financial institutions with payment

gateways


17/71

1/22

PLANT MAINTENANCE

33Prof V K Kamath We School Bayer

Need for Plant Maintenance

Technical Assets

Main functions are

- Inspection

- Preventive Maintenance- Repair



18/71

1/22

CLIENT

Co. Code

PLANT1 PLANT2 PLANT3

PLANNING

PLANTPLANNING

PLANT

PM - Organization Structure


Contents of a Functional Location

Functional location

master record

Location data

PM data

Multilingual texts

Equipment usage

Classification

Documents



19/71

1/22

PLANT1

INDUSTRIAL DECORATIVE OTHERS RESIN

ADMIN.

OFFICED.G. ROOM GODOWN

PM - Functional Locations


INDUSTRIAL

R M

GODOWN

HIGH SPEED

DISPENSOR

AREA

BEADMILLSANDMILL

AREA

CHILLING

PLANT

BM 1 BM 2 BM 3

MOTOR GEAR BOX STARTER



20/71


21/71

1/22

Object Links

Connections between Technical Objects

- Analyzing Malfunctions

- Preventive Maintenance

What will be affected

What should be shutdown

E.g. Utility Cooling Water Pump


Cooling Pump Machine 3

Machine 5

Machine 4

Machine 1

Machine 2



22/71

1/22

Central Workshop

Electrical

Technicians D.G. OperatorsMechanical

Fitters

PM Work Centers


Maintenance Task List Structure

Strategy, maintenance planning

group, work center, equipment

Allocation of maintenance packages

Work center, description, time,

control key, external processing

data, maintenance packages

Task list header

Operation

Maintenance

packages

Operation, time, work center,

description, control keySub-operation

Quantity, BOM item,

item category, quantity unit

Quantity, category

Material

Maintenance

resources



23/71

1/22

Maintenance OrderMaintenance Plan

MAINTENANCE

STRATEGY

MAINTENANCE

PACKAGES:

-Time based

-Performance based

- Counter based

SCHEDULED

CALLS

MAINTENANCE

ORDERS

MAINTENANCE

ITEMS

-FUNCT LOCATIONS

-EQUIPMENT

-ASSEMBLIES

ACTIVITIES:

-Equipment Tasklists

-Function Loc. Tasklists

-General Tasklists

Maintenance

Strategy

MAINTENANCE

SCHEDULE

Elements in Maintenance Planning


Process Flow in PM

PM Organization

PM Objects

PlantsPM Planner

Work Centers

(Workshops)

Capacities

FunctionalLocations

Equipment

Assemblies

Direct order

creation

CompletionInformation

Resources

Material Internal ExternalServices Services

PM HistoryDowntimes

Costs ....

PM Orders

PM Reqts./

Notifications

(Malfunction reports)PM Planning

(Maintenance and

inspection releases)



24/71

1/22

Planned Maintenance

Order

Notifications

Emergency

Demand

Material

Availability

Stock

ReservationsPurchase

Requisitions

Create

Maint. Orders

Safety

Considerations

Capacity

Demand

(Labor)

Special

ToolsSpecial

Instructions Delivery Schedule

of Material/Services

Release the

Maint. Order

Schedule the

Maint. Order

1. Manual

2. Automatic

Material

Reservations

Requisition

to Purch. Order

PP/ PM

Planning & Scheduling


Order

Project

Asset

Completion confirmation

Invoice receipt

Goods receipt

Purchase orders

Material issue

Externalprocessing

Costs

Task list

BOMMaterials

Maintenance Order Functions

Capacity planning

Operations

Work centers

Object list

Objects

Shop papers

Cost center

Planning

Execution

Settlement



25/71

1/22

Structure of a PM Notification

date/time/reported by

descriptionPM object: functional location

equipment

assembly

location data

account assignment data

breakdown/availability data

Activities

Maintenance

tasks

damage location

damage

cause of damage

Notification

items

Notification

activity

performed by

dates

task description


Maintenance Processing Cycle



26/71

1/22

PM Overview Diagram

Create

Work

Orders

Notifications

Planned

Work Orders

Schedule

WOs

Parts/Supplies

LaborPreventive/Predictive

Maint. WOs

Master Data

Close and

Settle WO

Reporting

Special

Tools

Pre-definedwork steps

Emergencies

ExternalServices

MaterialRequisitions

Shop

Papers


Maintenance Orders

Notifications

Vendor

Locations

Cost

Supplies

Parts

People

Plants

Special ToolsRepair Steps

Equipment

Factory Calendar



27/71

1/22

Maintenance History


Maintenance Information Analysis

Equipment breakdown

Maintenance cost

Like equipment analysis

MTTB



28/71

1/22

Provides up to date cost figures for bettermaintenance decision making

Real time information flows between PMand other systems

Integration between PM system and othersystems such as human resources,purchasing, payables, and payroll etc.

Eliminates the need to pull data fromdifference systems for reporting purposes

Lower software maintenance cost Lower software implementation cost

Plant Maintenance - Benefits


Enterprise wide Maintenance System

Facilitates the centralization of Maint.

Operations for multiple plants

Facilitates the consolidation and reduction of

Maint. spare parts

Provides consistencies in Maint. operations

Provides real time feedback of Maint. Cost

data to company financials system

Eliminates the manual efforts involved in

reporting Maint. cost to corporate financials

Reduces the effort involved in Maint. Analysis

across plants/units

Benefits



29/71

1/22

Materials Management


Purchasing

User DepartmentMRP Purchase Requisition

Outline/Quota

agreement

exists

Purchase Department

Assign and Process PR,

Create P.O automatically

Send Request for

Quotation to vendors

with aid of source list

yes

no



30/71

1/22

Receipt of Quotations &Entry of quotation in system

Price comparison list

Vendor Selection with aid of

Vendor Evaluation module

Release of Purchase Order

as per Release Procedure

Purchasing


Goods Receipt

Material arrives at the gate

Goods receipt posted

Material returned

back to SupplierP.Order exists for

material received ?

Material sent to

Quality Inspection

Is Quality & QTY

within defined limits

Stock & G/L updated

yesno

no



31/71

1/22

Goods Issue requisition from

User dept

Goods Issue requirement from

Production order

Goods Issue posted &

Material Issued

Material cost to receiving

Cost center/Asset/ Order/ G/LStock value and quantity updated

Goods Issue


Invoice Verification

Receipt of invoice in purchasing

Invoice Verification with ref to

P.O/ GR/ Service or without ref.

IS Value

O.K ?

Posting of Invoice Release of payment by FI Dept

Send invoice Back to Supplier

yes

P.O History and G/L updated

no



32/71


33/71

1/22

ERP Solution

Business Processes

MM

SD FA

PP

QM

PM

HRIS

OC

PS

AM

CO


Process Chain - MM

User Department

Purchase

RM / PM Stores QM DepartmentFI For Invoice

MRP



34/71

1/22

Main functions

Purchasing Inventory Management


Material Valuation

Vendor Evaluation

External ServiceManagement


Purchasing - Master Records

Material Master

Vendor Master

Purchasing Info-record

Source List

Quota Arrangement

Service Master



35/71

1/22

Procurement in Materials Management

Determination of requirements Source determination

Vendor Selection

Purchase Order Processing

Purchase Order Follow up

Goods Receipt and Inventory

Management



Material Master Data

Central source for material-

specific data

Integration of all data in a single

database object

Eliminates redundant data storage



36/71

1/22

Accounting

Materials planning control

Purchasing

Storage

Forecasting

Sales and Distribution

Quality Management

hat Information does the material Master contain


Vendor Master

Name

Address

Contact Person

Currency

Terms of Payment

Represents an Account Payable

Maintained by Purchasing &Accounts



37/71

1/22

Material

Master

Vendor

MasterPrice,

Source

Determination



Current Price and Pricing conditions

Information on Material and the

Vendor supplying the material

Availability period

Vendor Evaluation Record

Order Unit & Planned dely. time

Tolerance Limits for over and under

deliveries Number of last PO




38/71

1/22

Source list

It specifies allowed sources of supply

for a Material within a Plant

Period for which source is Valid

Definition of source as fixed / block


Quota Arrangement

Material, Plant

Procurement (in-house,

external)

Vendor

Quota in % Lot size

Max. release quantity



39/71

1/22

Out line Agreements

An outline agreement is a long termarrangement with a vendor regarding

supply of materials

Types of outline agreement a) Contracts

b) Scheduling

agreement

Contract types a) Quantity b) Value


Optimizing the Purchasing Process

Purchase requisition is assigned to a source

automatically.

Generate RFQs, Purchase orders and

scheduling agreement delivery schedules from

requisitions

Generate purchase orders with source

determination.



40/71

1/22

Inventory Management

Manage Stocks on quantity & Value basis

Planning, Enter and check Goods movement

Carry out Physical Inventory


Inventory Management in the ERP System

Financial Accounting

Controlling

Asset accounting



41/71

1/22

Inventory Management


Goods Receipt

Goods Issue

Reservations

Physical Inventory

Inventory Management Functions



42/71

1/22

Material Master Data

Material Types

Units of Measure

Stocks

Batch Data

Valuation Data

Special Stocks Data

Master Data --- Inventory Management


Data Relevant for Inventory Management

Work scheduling Info for producing material e.g.

production unit, delivery tolerances

Accounting - Types of price control, valuation class

MRP - Safety stock, availability stock, Reorder level

Purchasing Delivery tolerances

Quality Management - Indicator for goods receipt via

quality inspection, sampling on percentage basis



43/71

1/22

Material Type

Number Assignment

Data in views

Type of procurement

Type of Inventory Management

a)By value & Quantity

b) By quantity only

c) Neither by Quantity nor by value

Ex. Raw, Semi-finished, Finished, Trading, Stock,

Non-stock, Packaging, Pipeline


Types of Stocks

Total Valuated Stock

Unrestricted Use stock

Stock in Quality Inspection

Blocked Stock

Restricted- Use- Stock

Stock in Transfer

Reserved Stock Negative Stock



44/71

1/22

Special Stocks

Stock at Vendor (Sub-contracting)

Consignment Stock

Returnable Packaging

Sales Order Stock

Project Stock


Material Valuation

Price Control - Standard, Moving Average

Split Valuation

Procurement

Origin

Status (Old or New)

Batch

Quality Revaluation



45/71

1/22

Special Procurement Types

Consignment

Subcontracting

Stock Transfer via Stock transport order

Third-Party Processing

Returnable transport packaging

Pipe line handling


MM Inventory Sampling

Area of Inventory Sampling

Method of Inventory Sampling



46/71

1/22

Entering invoices and credit memos

Checking the accuracy of invoices with respectto contents, prices and calculation

Executing the accounting postings resulting froman invoice

Updating data in the SAP system e.g materialprices

Checking invoices that were blocked becausethey varied from that of P.O

Preliminary Posting

Release of blocked invoices


External Services Management Service Master Database

Planned Services

Unplanned Services

Service Entry Sheet

Acceptance of Services performed

Checking and approving invoices

submitted by vendors for services

performed

Monitoring the performance of services



47/71

1/22

Vendor Evaluation

Overall score

Main criteria e.g Price,Quality,Delivery,General support/services , External service,Max no of main criteria :99

Sub criteria e.g. Price level, Price history,Goods receipt,quality audit etc

Max no of sub-criteria : 20

Scoring Range

Weighting of scores




48/71

1/22

Production Planning


Need for Production Planning

1 Elimination of routine tasks for the persons responsible for productionscheduling

2 Functions of PP:

* Production Planning* Production Execution

* Production Control



49/71

1/22

Client

Company

Code

Plant 1

Planning Plant

Organization Structure - Prodn Planning

Plant 2 Plant 3

Planning Plant


Organization Structure Prod Plng

Planning Plant

Work Centre Planner Group MRP Controller



50/71

1/22

PP - BD Basic Data for Production

1 Materials Type

2 BOM

3 Work Centres

4 Routings


Bill of Material

1 Simple BOM

2 Variant BOM

3 Multiple BOM

4 One time BOM

5 Configurable BOM



51/71

1/22

PP - SOP Sales & Operations Planning

1 Product Groups

2 Forecasting - via interfaces with MM, SD,

and PIS (Purchasing Info System)

3 Sales Plan

4 Production Plan

5 Dis-aggregation of Sales & Production

Plans


SOP Planning Features

1 Consistent Planning

2 Level by Level Planning

3 Delta Planning

4 Planning Types and Macros

5 Events

6 Transferring SOP data to other

applications



52/71

1/22

PP - Master Planning

1 Identification of Schedule Items, Resources

reqd., start and finish times

2 Demand Management

3 Planning with and without Final Assembly

4 Selection of Planning & Production strategy

5 Production Strategies - Made-to-order, Made-to-

stock, Make in lots etc.


Planning Strategies

1 Make-to-Stock Production

2 Production by Lot Size for Sales and StockOrders

3 Planning with Final Assembly

4 Planning Without Final Assembly

5 Planning with Planning Material

6 Planning at Assembly Level / Planning atPhantom Assembly Level



53/71

1/22

Planning Strategies

1 Make-to-Order Production2 Make-to-Order Production with Configuration

3 Make-to-Order Production for Material Variants

4 Planning Material Variants Without Final

Assembly

5 Planning Material Variants Using Planning

Materials


PP - MRP Material Reqments Planning

1 Method of planning is based on exception

reporting (Matl whose stock has changed)

2 Consumption based planning including reorder

point planning and forecast based planning &

MRP for each production plant

3 Lot-Sizing - Lot-for-lot, Fixed lot size,

Replenishment upto maximum stock levelspecified in material master



54/71

1/22

PP - CRP Capacity Reqmts Planning

1 Deals with capacity categories at a W.C andavailable capacity to meet the loads

2`Scheduling at rough-cut level is carried out usingorder floats, tear down time, setup time,interoperation time etc.

3 Capacity available at a W.C can be plotted on timeaxis to show capacity availability

4 Cap. Req. calculations on basis of planned andproduction orders.


Elements of Capacity Evaluation

1 Available Capacity

2 Scheduling

3 Capacity Requirements

4 Capacity Load Reduction



55/71

1/22

PP - SFC Shop Floor Control

1 Order Creation

2 Order Processing

3 Order Completion

4`Order Settlement


Product Costing

1 Product Costing with Quantity Structure

2 Product Costing without Quantity Structure

3 Cost of Goods Manufactured

direct material costs

material overhead

direct production costs

production overhead

special production costs



56/71

1/22

Product Costing

1 Cost of Goods Sold

cost of goods manufactured

sales and administration costs

2 Results of Product Costing used in:

Variance calculation

Scrap calculation

WIP calculation


Product Costing

1 Contribution margin accounting

2 Material valuation

3 Calculation of cost of goods manufactured

4 Stock valuation

5 Sales and Distribution

6 Price setting

7 Profitability analysis

8 Configured materials



57/71

1/22

SAP

SALES &

DISTRIBUTION


Organizational Structure

SD-FI Integration

Sales Organization 1SD Legal Entity

Sales Organization2SD Legal Entity

Sales Organization 3SD Legal Entity

Company Code

FI Legal Entity



58/71

1/22


SD Structure

Distribution Channel 1 Distribution Channel 2Type title here

Distribution Channel 3Type title here

Sales OrganizationType title here



SD Stucture

Division 1 Division 2 Division 3

Sales Organization



59/71

1/22


Sales Area

Division 1 Division 2

Distribution Channel1

Division 1

Distribution Channel 2

Sales Organization 1



Sales Structure

Sales Employees Sales Employees

Sales Grp 1 Sales Grp 2

Sales Office 1

Sales Grp 2

Sales Office 2 Sales Office 3

Sales Area 1



60/71

1/22


SD-FI-MM Integration

Sales Organization 1Highest Orgn. Unit of SD

Plant 1Highest Orgn. Unit of MM

Company Code



SD-MM Integration

Plant 1

Sales Organization 1 Distribution

channel 1



61/71

1/22


Shipping Stucture

Shipp ing Poin t 1 Shipp ing Poin t 2 Storage Location 1 Storage Location 2

Plant 1


Documentation Flow

Sales Cycle (Document Flow): Enquiry

Quotation

Sales Contract / Schedule Agreement

Sales Order / Release Order

Delivery Document

Shipments

Billing Document



62/71

1/22

Sales Agreements

Contract

Rate Contract

Quantity contract

Service contract

Rental Contract

Create Release Orders


Sales Agreements

Schedule Agreements

Create Deliveries



63/71

1/22

Sales Document Structure

Header Level Partner Function

Pricing

Assignment of Org. Units

Item Level Item Categories

Schedule Line Categories

Pricing / Partner Function / Org. Unit Assgnt.

Wrt. Sales Area / Sale Offices / Sales Group


Document Functions

Actual Processes Enquiry / Quotation:

Probability of Order

Passes the x% requirement to

MRP

Credit Check (Dynamic)



64/71

1/22

Document Functions

Actual Processes: Sales Order

Automatic Pricing

Availability Check

Passes requirement to MRP

Credit Check (Dynamic / Static)

Delivery Scheduling

Route / Plant / Shipping Point Determination


Document Functions

Actual Processes Delivery Document:

Shipping Point is the major organizational unit

Picking Location Determination

Picking

Packing

Shipments

Grouping of Delivery / Collective Shipment

Goods Issue



65/71

1/22

Document Functions

Actual Processes Billing Document:

Generates Invoice / Collective Invoice / Split Invoice

Generates Credit Memo / Debit Memo / Cancellation

Document

Account Assignment

Milestone Billing / Periodic Billing

WRT Sales / Delivery document


Customer Master Record

With Ref. To Sales Area and Company Code

General, Co. Code and SD Data

General Data:

Address, Unloading Pts., Contact Person, Control Data

etc.

Co. Code Data:

Finance related info

SD Data:

Sales, Shipping, billing, O/P, Partner Fn.



66/71

1/22

Material Master Record

With Ref. To Plant, Storage Location, Sales Organization

Basic, Sale and Material related data

Basic Data:

Physical Dimension, Description, Net Weight, Gross

Weight, Material Grp etc.

Sales Data:

Division, Plant, Loading Grp, Transportation Grp,

Account Assignment Grp, Shipping Cond. etc

Material Data: Storage cond, Costing, Stock Value, MRP Data etc.


Pricing

Pricing Elements Basic Price

Discounts

Freight

Taxes



67/71

1/22

Pricing Processes

Field Catalogues

Condition Tables

Access Sequence

Condition Type

Condition Record

Validity Period

Scales

Pricing Procedure

Exclusion Group

Pricing Reports

Pricing Agreements: Rebate Agreements

Promotions / Sales Deal


Return Process

Create Return Order wrt. Sales Order /Without reference to any Doc.

Create Return Delivery and Goods Issue toupdate Stock

Create Free of Cost Sales Order WRT

Return Order - Replacement Create Credit Memo Request

Create Credit Memo



68/71

1/22

Partner Function

Sale - to - Party

Ship - to - Party

Bill - to - Party

Payer

Employee Responsible

Account Groups

Partner Determination


Output Determination

Output Type / Medium of Output

Assignment O/P Determination Procedure

to Account Group

Assignment O/P to Partner Function or

Organizational Unit



69/71

1/22

Special Business Processes

Consignment Stock

Make - to - Order

Configurable Product

Third Party Orders

Service Management

Batch Management


Sales Information Structure



70/71

1/22

Sales Information System

4InformationStructures

4Characteristics

4Key figures

4Updating rules

4Standard Analysis

4Flexible Analysis

4Early WarningSystem

4Planning

4forecasting


Delivery Scheduling

Material Availability Date

Transportation Planning Time

Loading Time

Pick Pack Time

Transit Time



71/71

1/22

Transportation Scheduling

Route Determination depends on: Transportation Group

Weight Group

Shipping Condition

Transportation Zone
