ERP= ENTERPRISE RESOURCE PLANNING
Samenvatting ERP Nora Bari 1
,Inhoudsopgave
Abbreviations ..................................................................................................................................................... 7
Schedule ERP ..................................................................................................................................................... 9
ERP= ENTERPRISE RESOURCE PLANNING ............................................................................................. 10
Manage processes with ‘ERP software’ ........................................................................................................... 10
The story (cargo bike): Artevelde ................................................................................................................ 10
Department structure ....................................................................................................................................... 10
Where it all starts… ..................................................................................................................................... 10
Check the stock in the system…= check availability .................................................................................. 11
3 departments involved for this process… (in the SD) ................................................................................ 13
We need to construct a new bicycle ............................................................................................................ 13
Even more departments involved… (SD+ PP) .................................................................................................. 14
SoftwareContract in computer ......................................................................................................................... 15
How everyone works/ needs the system ............................................................................................................ 15
Input from everyone?................................................................................................................................... 16
Some implications… ................................................................................................................................... 16
Software Suppliers?.......................................................................................................................................... 17
Why SAP? ................................................................................................................................................... 17
Notities uit boek ................................................................................................................................................ 17
S&OP .................................................................................................................................................................... 18
The bird’s eye view ........................................................................................................................................... 18
To know... .................................................................................................................................................... 19
Phase 1 of the S&OP: Forecasting .................................................................................................................. 19
Forecasting... Accurate? .............................................................................................................................. 19
Forecasting in ERP / SAP ............................................................................................................................ 20
Forecasting = Roll up process ..................................................................................................................... 20
Example from SAP_GBI_ Forecast on Product Group level ...................................................................... 20
Phase 2 of S&OP: Demand planning ............................................................................................................... 20
Phase 3 of S&OP: Supply planning ................................................................................................................. 22
Phase ................................................................................................................................................................ 22
Supply planning in S&OP ................................................................................................................................ 22
Q 1: Do we have enough raw materials? .................................................................................................... 22
Q 2: Do we have enough Machine capacity? .............................................................................................. 23
Level VS Chase production (production strategies) ....................................................................................... 23
Level or Chase ? ............................................................................................................................................... 24
Q 3: Do we have enough People capacity? ................................................................................................. 24
After supply planning: meetings ....................................................................................................................... 24
Consensus? Insert this data in operations… .................................................................................................... 25
Purchase process ................................................................................................................................................. 26
The process....................................................................................................................................................... 26
Purchase process.............................................................................................................................................. 26
The purchase process from scratch: ............................................................................................................. 26
Selection-choice of supplier & master data ................................................................................................. 27
The selection process ................................................................................................................................... 27
The requirement/ need ................................................................................................................................. 27
Samenvatting ERP Nora Bari 2
, Budget check during selection phase ........................................................................................................... 28
Choosing the supplier .................................................................................................................................. 29
Request for quotation................................................................................................................................... 29
Quotation from Vendor ............................................................................................................................... 29
The transaction process ............................................................................................................................... 30
Purchase order ................................................................................................................................................. 30
Good receipt ............................................................................................................................................... 32
Invoice processing ....................................................................................................................................... 33
Classic invoice verification ......................................................................................................................... 34
Self billing .................................................................................................................................................. 34
Payment initiated out of ERP ...................................................................................................................... 34
Special situations.............................................................................................................................................. 36
Return, backorders and late deliveries. ....................................................................................................... 36
Master data ...................................................................................................................................................... 37
Vendor Master Data..................................................................................................................................... 37
Material Master Data ................................................................................................................................... 38
Material Master Views ................................................................................................................................ 38
Purchasing Information Record ................................................................................................................... 38
Master Data in Use ...................................................................................................................................... 38
In SAP............................................................................................................................................................... 39
MM Organizational Structure (Materials Mgmt.) ....................................................................................... 39
MM Organizational Structure (Purchasing) ................................................................................................ 39
Sales ...................................................................................................................................................................... 40
Sales Order Process ......................................................................................................................................... 40
The pre-sales activities = Selection process… ............................................................................................ 40
The customer has a choice … ...................................................................................................................... 40
The market to order (M2O) - process............................................................................................................... 40
A request (Inquiry) ........................................................................................................................................... 41
Quotation.......................................................................................................................................................... 41
Credit Check ..................................................................................................................................................... 41
Generic sales process ....................................................................................................................................... 41
From Opportunity to Order .............................................................................................................................. 42
Transaction process… ...................................................................................................................................... 42
Order to cash process ................................................................................................................................... 42
CODP = Customer Order Decoupling Point ................................................................................................... 43
OTC process in MTO and MTS environment ................................................................................................... 43
Difference between MTO and MTS: impact of CODP ..................................................................................... 44
Planning strategy- Backward Scheduling ( MTS) ............................................................................................ 44
Planning strategy- Forward scheduling (MTO) ............................................................................................... 45
When to start picking/transport ................................................................................................................... 45
Order to Cash: EDI = electronic Data Interchange ................................................................................... 45
Warning: in MTO? ........................................................................................................................................... 45
Check availability ........................................................................................................................................ 45
Check the stock…........................................................................................................................................ 46
Order to cash: pick and pack ....................................................................................................................... 46
Shipping....................................................................................................................................................... 47
Goods leave the warehouse .............................................................................................................................. 47
Billing ............................................................................................................................................................... 47
Billing Documents ....................................................................................................................................... 48
Samenvatting ERP Nora Bari 3
, Billing Methods ........................................................................................................................................... 49
Characteristics of processes- Three sub-processes- 3 way match ................................................................... 49
Segregation of duties ........................................................................................................................................ 49
Payment ............................................................................................................................................................ 49
Sales Order Process ......................................................................................................................................... 50
Master Data ..................................................................................................................................................... 50
Master data < definition............................................................................................................................... 50
Master data in sales ..................................................................................................................................... 50
SD Master Data ........................................................................................................................................... 51
Customer Master Data ................................................................................................................................. 51
Material master data .................................................................................................................................... 52
Accounting view … importance .................................................................................................................. 53
Condition Master Data (Pricing) ................................................................................................................. 53
Output .......................................................................................................................................................... 54
In SAP............................................................................................................................................................... 54
Document Flow ........................................................................................................................................... 60
Production planning process .............................................................................................................................. 62
Steering done by S&OP .................................................................................................................................... 62
Forecast consumption ...................................................................................................................................... 62
Forecast consumption explained ...................................................................................................................... 63
Why that hope? ................................................................................................................................................. 63
Netting .............................................................................................................................................................. 64
There is a stock & production/purchase in ‘pipeline’ ...................................................................................... 64
Master Production Schedule ............................................................................................................................ 65
Independent versus dependent.......................................................................................................................... 65
Production planning ......................................................................................................................................... 66
Netting explained at SKU level......................................................................................................................... 66
Replenishing the stock at SKU level ................................................................................................................. 66
Replenishment ............................................................................................................................................. 66
From SKU level to raw material level: MRP ................................................................................................... 67
MRP: BOM explosion ...................................................................................................................................... 67
Create PO or PO! ............................................................................................................................................ 68
Production process .............................................................................................................................................. 68
Overview .......................................................................................................................................................... 68
Step 1: Release production order- 3 ways ........................................................................................................ 69
1. Release production order ................................................................................................................... 70
2. Preparation ......................................................................................................................................... 71
3. Stage and setup .................................................................................................................................. 72
4. Produce .............................................................................................................................................. 73
OEE = Overall Equipment Efficiency .............................................................................................................. 73
5 S ? .................................................................................................................................................................. 73
5. Complete ........................................................................................................................................... 73
Complete ˃Yield booking ........................................................................................................................... 74
Complete˃Consumption booking ................................................................................................................ 74
Complete ˃Integration ................................................................................................................................. 74
Complete ˃Quality approval ....................................................................................................................... 75
Samenvatting ERP Nora Bari 4
Samenvatting ERP Nora Bari 1
,Inhoudsopgave
Abbreviations ..................................................................................................................................................... 7
Schedule ERP ..................................................................................................................................................... 9
ERP= ENTERPRISE RESOURCE PLANNING ............................................................................................. 10
Manage processes with ‘ERP software’ ........................................................................................................... 10
The story (cargo bike): Artevelde ................................................................................................................ 10
Department structure ....................................................................................................................................... 10
Where it all starts… ..................................................................................................................................... 10
Check the stock in the system…= check availability .................................................................................. 11
3 departments involved for this process… (in the SD) ................................................................................ 13
We need to construct a new bicycle ............................................................................................................ 13
Even more departments involved… (SD+ PP) .................................................................................................. 14
SoftwareContract in computer ......................................................................................................................... 15
How everyone works/ needs the system ............................................................................................................ 15
Input from everyone?................................................................................................................................... 16
Some implications… ................................................................................................................................... 16
Software Suppliers?.......................................................................................................................................... 17
Why SAP? ................................................................................................................................................... 17
Notities uit boek ................................................................................................................................................ 17
S&OP .................................................................................................................................................................... 18
The bird’s eye view ........................................................................................................................................... 18
To know... .................................................................................................................................................... 19
Phase 1 of the S&OP: Forecasting .................................................................................................................. 19
Forecasting... Accurate? .............................................................................................................................. 19
Forecasting in ERP / SAP ............................................................................................................................ 20
Forecasting = Roll up process ..................................................................................................................... 20
Example from SAP_GBI_ Forecast on Product Group level ...................................................................... 20
Phase 2 of S&OP: Demand planning ............................................................................................................... 20
Phase 3 of S&OP: Supply planning ................................................................................................................. 22
Phase ................................................................................................................................................................ 22
Supply planning in S&OP ................................................................................................................................ 22
Q 1: Do we have enough raw materials? .................................................................................................... 22
Q 2: Do we have enough Machine capacity? .............................................................................................. 23
Level VS Chase production (production strategies) ....................................................................................... 23
Level or Chase ? ............................................................................................................................................... 24
Q 3: Do we have enough People capacity? ................................................................................................. 24
After supply planning: meetings ....................................................................................................................... 24
Consensus? Insert this data in operations… .................................................................................................... 25
Purchase process ................................................................................................................................................. 26
The process....................................................................................................................................................... 26
Purchase process.............................................................................................................................................. 26
The purchase process from scratch: ............................................................................................................. 26
Selection-choice of supplier & master data ................................................................................................. 27
The selection process ................................................................................................................................... 27
The requirement/ need ................................................................................................................................. 27
Samenvatting ERP Nora Bari 2
, Budget check during selection phase ........................................................................................................... 28
Choosing the supplier .................................................................................................................................. 29
Request for quotation................................................................................................................................... 29
Quotation from Vendor ............................................................................................................................... 29
The transaction process ............................................................................................................................... 30
Purchase order ................................................................................................................................................. 30
Good receipt ............................................................................................................................................... 32
Invoice processing ....................................................................................................................................... 33
Classic invoice verification ......................................................................................................................... 34
Self billing .................................................................................................................................................. 34
Payment initiated out of ERP ...................................................................................................................... 34
Special situations.............................................................................................................................................. 36
Return, backorders and late deliveries. ....................................................................................................... 36
Master data ...................................................................................................................................................... 37
Vendor Master Data..................................................................................................................................... 37
Material Master Data ................................................................................................................................... 38
Material Master Views ................................................................................................................................ 38
Purchasing Information Record ................................................................................................................... 38
Master Data in Use ...................................................................................................................................... 38
In SAP............................................................................................................................................................... 39
MM Organizational Structure (Materials Mgmt.) ....................................................................................... 39
MM Organizational Structure (Purchasing) ................................................................................................ 39
Sales ...................................................................................................................................................................... 40
Sales Order Process ......................................................................................................................................... 40
The pre-sales activities = Selection process… ............................................................................................ 40
The customer has a choice … ...................................................................................................................... 40
The market to order (M2O) - process............................................................................................................... 40
A request (Inquiry) ........................................................................................................................................... 41
Quotation.......................................................................................................................................................... 41
Credit Check ..................................................................................................................................................... 41
Generic sales process ....................................................................................................................................... 41
From Opportunity to Order .............................................................................................................................. 42
Transaction process… ...................................................................................................................................... 42
Order to cash process ................................................................................................................................... 42
CODP = Customer Order Decoupling Point ................................................................................................... 43
OTC process in MTO and MTS environment ................................................................................................... 43
Difference between MTO and MTS: impact of CODP ..................................................................................... 44
Planning strategy- Backward Scheduling ( MTS) ............................................................................................ 44
Planning strategy- Forward scheduling (MTO) ............................................................................................... 45
When to start picking/transport ................................................................................................................... 45
Order to Cash: EDI = electronic Data Interchange ................................................................................... 45
Warning: in MTO? ........................................................................................................................................... 45
Check availability ........................................................................................................................................ 45
Check the stock…........................................................................................................................................ 46
Order to cash: pick and pack ....................................................................................................................... 46
Shipping....................................................................................................................................................... 47
Goods leave the warehouse .............................................................................................................................. 47
Billing ............................................................................................................................................................... 47
Billing Documents ....................................................................................................................................... 48
Samenvatting ERP Nora Bari 3
, Billing Methods ........................................................................................................................................... 49
Characteristics of processes- Three sub-processes- 3 way match ................................................................... 49
Segregation of duties ........................................................................................................................................ 49
Payment ............................................................................................................................................................ 49
Sales Order Process ......................................................................................................................................... 50
Master Data ..................................................................................................................................................... 50
Master data < definition............................................................................................................................... 50
Master data in sales ..................................................................................................................................... 50
SD Master Data ........................................................................................................................................... 51
Customer Master Data ................................................................................................................................. 51
Material master data .................................................................................................................................... 52
Accounting view … importance .................................................................................................................. 53
Condition Master Data (Pricing) ................................................................................................................. 53
Output .......................................................................................................................................................... 54
In SAP............................................................................................................................................................... 54
Document Flow ........................................................................................................................................... 60
Production planning process .............................................................................................................................. 62
Steering done by S&OP .................................................................................................................................... 62
Forecast consumption ...................................................................................................................................... 62
Forecast consumption explained ...................................................................................................................... 63
Why that hope? ................................................................................................................................................. 63
Netting .............................................................................................................................................................. 64
There is a stock & production/purchase in ‘pipeline’ ...................................................................................... 64
Master Production Schedule ............................................................................................................................ 65
Independent versus dependent.......................................................................................................................... 65
Production planning ......................................................................................................................................... 66
Netting explained at SKU level......................................................................................................................... 66
Replenishing the stock at SKU level ................................................................................................................. 66
Replenishment ............................................................................................................................................. 66
From SKU level to raw material level: MRP ................................................................................................... 67
MRP: BOM explosion ...................................................................................................................................... 67
Create PO or PO! ............................................................................................................................................ 68
Production process .............................................................................................................................................. 68
Overview .......................................................................................................................................................... 68
Step 1: Release production order- 3 ways ........................................................................................................ 69
1. Release production order ................................................................................................................... 70
2. Preparation ......................................................................................................................................... 71
3. Stage and setup .................................................................................................................................. 72
4. Produce .............................................................................................................................................. 73
OEE = Overall Equipment Efficiency .............................................................................................................. 73
5 S ? .................................................................................................................................................................. 73
5. Complete ........................................................................................................................................... 73
Complete ˃Yield booking ........................................................................................................................... 74
Complete˃Consumption booking ................................................................................................................ 74
Complete ˃Integration ................................................................................................................................. 74
Complete ˃Quality approval ....................................................................................................................... 75
Samenvatting ERP Nora Bari 4
