ERP & Quality Control
What is ERP?
ERP: enterprise resource planning
Computer software used within organisations to support all processes in the
company.
Supply chain analytics
Make it possible for companies to collect, asses and respond to the data
generated by their supply chain. They can make quick adjustments en long-
term strategy changes that will provide a competitive advantage
3 departments:
1. SD – Sales & distribution = sales department
2. MM – Materials Management = Purchase department
3. PP – Production Planning = Production department
Scheme
Very important to understand
Practical problems
Right communication
Waiting time Solution: ERP software
…
E – enterprise – for companies
R – resource – people + materials
P – planning – plan the sequence better
How works ERP
1. Contract in computer
2. Automatic search in stock
3. Automatic calculation delivery date
4. Automatic order parts
5. Automatic start of production
6. Automatic stock keeping
, Sales
department
Purchase Logistic
department s
ER
P
Production Bookkeeping
department department
HR
department
Implications
SOD = Segregation of duties
o Everybody has his own responsibility in the ERP system so we need to
make sure that not everybody can access an other department.
Master Data Management
o Having a person responsible for MDM
No double entries
Understand significance of every field
Correct sequence of entrance
A lot of data in 1 database
o Opportunities for analysis
o Big data
o Online analytical processing tools (OLAP)
,Sales & Operations Planning
S & OP = sales and operations planning, plan what we will have to sell
Think about how many we have to have in stock
How many should we produce upfront
We do that calculation out of the system
Think about what is going to happen in the future
Phase 1 of the S&OP: 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?
o Marketeer: develop new customers, markets and products, allow the
existing ones to grow. A dreamer, one with big ideas.
o Demand planner: create realistic and achievable demand, in such wat
that the rest of the logistical and production can get organised in time.
He carries the responsibility of delivering a forecast in numbers.
Forecast accurate?
Forecasts are always wrong
Forecasting in ERP/SAP
Forecast models
Trend
Seasonal
Trend an seasonal
Constant
Selecting a model
Automatically
Manually
, Forecasting = Roll up process
F.ex.: if a bakery have to make a
forecast of how many breads he
will sell per week. This is why he
will start from the number he sells
today (500 brown breads, 300
white breads …) and he will roll it
up, not going to keep calculating
in terms of breads but in terms of
kg. We want a big number of what
we think we would sell.
From SKU (stock keeping unit)
level to a forecast on product
group level.
Phase 2 of S&OP: Demand Planning
Its only in the second phase we want to force down. Just knowing that we need 500kg
breads next week is not enough, how many brown? How many whites? …
From product group level back to SKU level
Central concept in the second phase: Come to a number on SKU-level =
independent demand. The demand of the market.
Independent demand: the demand of the market for the product or services of a
company.
What is ERP?
ERP: enterprise resource planning
Computer software used within organisations to support all processes in the
company.
Supply chain analytics
Make it possible for companies to collect, asses and respond to the data
generated by their supply chain. They can make quick adjustments en long-
term strategy changes that will provide a competitive advantage
3 departments:
1. SD – Sales & distribution = sales department
2. MM – Materials Management = Purchase department
3. PP – Production Planning = Production department
Scheme
Very important to understand
Practical problems
Right communication
Waiting time Solution: ERP software
…
E – enterprise – for companies
R – resource – people + materials
P – planning – plan the sequence better
How works ERP
1. Contract in computer
2. Automatic search in stock
3. Automatic calculation delivery date
4. Automatic order parts
5. Automatic start of production
6. Automatic stock keeping
, Sales
department
Purchase Logistic
department s
ER
P
Production Bookkeeping
department department
HR
department
Implications
SOD = Segregation of duties
o Everybody has his own responsibility in the ERP system so we need to
make sure that not everybody can access an other department.
Master Data Management
o Having a person responsible for MDM
No double entries
Understand significance of every field
Correct sequence of entrance
A lot of data in 1 database
o Opportunities for analysis
o Big data
o Online analytical processing tools (OLAP)
,Sales & Operations Planning
S & OP = sales and operations planning, plan what we will have to sell
Think about how many we have to have in stock
How many should we produce upfront
We do that calculation out of the system
Think about what is going to happen in the future
Phase 1 of the S&OP: 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?
o Marketeer: develop new customers, markets and products, allow the
existing ones to grow. A dreamer, one with big ideas.
o Demand planner: create realistic and achievable demand, in such wat
that the rest of the logistical and production can get organised in time.
He carries the responsibility of delivering a forecast in numbers.
Forecast accurate?
Forecasts are always wrong
Forecasting in ERP/SAP
Forecast models
Trend
Seasonal
Trend an seasonal
Constant
Selecting a model
Automatically
Manually
, Forecasting = Roll up process
F.ex.: if a bakery have to make a
forecast of how many breads he
will sell per week. This is why he
will start from the number he sells
today (500 brown breads, 300
white breads …) and he will roll it
up, not going to keep calculating
in terms of breads but in terms of
kg. We want a big number of what
we think we would sell.
From SKU (stock keeping unit)
level to a forecast on product
group level.
Phase 2 of S&OP: Demand Planning
Its only in the second phase we want to force down. Just knowing that we need 500kg
breads next week is not enough, how many brown? How many whites? …
From product group level back to SKU level
Central concept in the second phase: Come to a number on SKU-level =
independent demand. The demand of the market.
Independent demand: the demand of the market for the product or services of a
company.
