orcan_alper
TRANSCRIPT
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MODERN LIFE OF INFORMATION
SYSTEM TOOLS
ALPER ODABAIOLUANALYST PROGRAMMER
ORCAN ALPARINFORMATION TECHNOLOGIES SPECIALIST
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AGENDA
PART IENTERPRISE RESOURCEPLANNING:ERPSUPPLY CHAIN
MANAGEMENT: SCMADVANCED PLANNING ANDSCHEDULING: APS
PART II
SAP APOORACLE SCPMANUGISTICSI2
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ERP SYSTEMS
ERP systems are seen as optimization and
integration tools of business processes across
the supply chain within and beyond
organizational boundaries, implemented throughmodern information management systems
EXTERNAL
SUPPLIERS
EXTERNAL
SUPPLIERS
EXTERNAL
SUPPLIERS
EXTERNAL
CUSTOMERS
EXTERNAL
CUSTOMERS
EXTERNAL
CUSTOMERS
ERPINTERNAL
SUPPLIERS
INTERNAL
CUSTOMERS
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ERP EVOLUTION
Material Requirements Planning (MRP)
Inter-enterprise Integration (XRP)
Customer-Centric Integration (CRP)
Enterprise Integration (ERP)
Wave 1:
Wave 3:
Wave 4:
Wave 5:
Goal: Improve/optimizemanufacturing efficiency
Goal: Customer value,effectiveness
Goal: Firm-wide efficiency,cost cutting
Goal: Crossenterprise
value
Manufacturing Resources Planning (MRP II)
Wave 2:
Goal: Capacity Requiremnt Planning& Simulative Planning Functions
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ERP BENEFITS
Improving information quality
Reducing costs through retooling
common business functionsImproving responsiveness and time-to-
market through an effectivestructuring of
operations
Renovating old systems and processes
Improving integrity and availability of
data across the business
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ERP MODULES
FI: Financial AccountingCO: Controlling
SD: Sales & Distribution
MM: Materials Management
PP: Production Planning
PM: Plant MaintenanceQM: Quality Management
HR: Human Resources
AM: Asset Management
PS: Project System
WF: WorkflowAPO: Advanced Purchase &
Optimization
IS: Industry Solutions
Customer/Employee
ProductionPlanning
IntegratedLogistics
Accounting &Financials
Sales &Distribution
(Order Entry)
Human
Resources
Enterprise Architecture
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BEFORE ERP
Customers
Customer
Demographic
FilesSales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back Not in stock
We ordered the parts
We Need parts #XX
We ordered the parts
Sends report
Sends report
Sends report
Ships parts
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AFTER ERP
Database
Customers Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory Data
If no parts,
order is placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data exchange;
Books invoice against PO
Books inventory
against PO
Ships parts
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ERP PROGRAMMINGDEVELOPMENT
Master data migration batchinput,
Purchase/production/
maintenance/service order print
out programs and layouts,Add-on functionality
developments,
Enhancement developments,
Interfacing with external systems
Source code modifications(repairs)
Query and Reporting,
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SUPPLY CHAINMANAGEMENT: SCM
The management of upstreamand downstream relationshipswith suppliers and customers to
deliver superior customer valueat less cost to the supply chainas a whole.
MANAGEMENT
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SUPPLY CHAINMANAGEMENT: SCM
A network of connected andinterdependent organizationsmutually and co-operatively working
together to control, manage andimprove the flow of materials andinformation from supplier to endusers.
MORE ACCURATE
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SUPPLY CHAINMANAGEMENT: SCM
Supply Chain Management is theintegration of key businessprocesses from end user throughoriginal suppliers that provides
products, services, and informationthat add value for customers andother stakeholders.
GSCF GLOBAL SUPPLY CHAINFORUM
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SCM PRODUCT LIFE
BuyingBuying
SellingSelling
MakingMaking
MovingMoving
Warehousing
Warehousing
SCM is management of product life from buying,
making, moving, and warehousing to selling
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SCM COLLABORATION
DemandForecasting
Optimizingproduct mix
CapacityPlanning
ResourcePlanning
Shop FloorControl
Shop FloorControl
WarehousingManagementWarehousingManagement
OrderingAdministration
ProductionPlanning
DemandManagement
ShippingOptimization
Status ManagementStatus Management
Tactical
Tactical
Operational
Operational
Transcctional
Transcctional
Collaborationon Forecasting
Collaborationon Capacity
Planning
AnalyzingSupplyChain
Collaborationon Resource
Planning
InventoryTracking
InventoryPlanning
AnalyzingSupplyChain
ShippmentTracking
Order &Shipments
Collaborationon Forecasting
Matchingdemand-supply
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SUCCESSFUL SCM
Market Saturation Driven: Focusing on generating highprofit margins through strong brands, marketing anddistribution.
Operationally Agile: Configuring assets and operations
to react nimbly to emerging consumer trends along linesof product category or geographic region.
Freshness Oriented: Concentraing on earning apremium by providing the consumer with product that isfresher than competitive offerings.
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SUCCESSFUL SCM
Consumer Customizer: Using mass customization tobuild and maintained close relationships with endconsumers through direct sales.
Logistics Optimizer: Emphasing a balance of supplychain efficiency and effectiveness.
Trade Focused: Prioritizing low price, best value forthe consumer (as with logistics optimizer strategy butfocusing less on brand than on dedicated service to tradecustomers).
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ADVANCE PLANNING ANDSCHEDULING: APS
Encompasses a range of toolsand techniques within asoftware system that has
applications in manufacturingand logistics. It analyses theimplications of alternativedecisions, highlights problemsand consequences, and
generates optimal plans andschedules for transfer toexecution tools.
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APS FEATURES
Combines finite capacityscheduling and memory-resident fast planning
Determines a plan thatconsiders all demand needsand supply limitations(feasible plan)
Optimizes the plan, basedon mathematical modelingtechniques
Recommends a best overallsolution that considers bothmaterial and resourceavailability
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APS FUNCTIONALITIES
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APS ERP ARCHITECTURE
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APS DEMAND PLANNING
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APS PRODUCTION PLANNINGFEATURES
Combines finite capacity schedulingand memory-resident fast planning
Plans simultaneous materialrequirements and schedules capacityat operation level for the short-termhorizon
Takes order sequences into accountOptimizes machine schedules
(sequences, lead times)Transfers the planning results toexecution system
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APS PRODUCTION PLANNINGMETHODS
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APS ERP DIFFERENCES
The assumption that the supplylead times are known constantsand do not vary with flow andworkload,
The system requires with fixedprocesses or routings, ignoringalternative routing that could beused,
The sequencing logic prioritisesorders only by period or datewhen other options such as loadlevelling or minimal tool changesmay be preferred
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APS ERP DIFFERENCES
All work is loaded underassumption of infinite capacitywhen in reality, working capacity isalways constrained by time andresources available,
The process of scheduleregeneration takes considerabletime to calculate, review andprocess the recommended actions.This leads to regenerate material
requirements on a once permonthly basis, when industry isseeking daily changes to bepassed down the supply chain.
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APS SCM SOFTWARES
SAP - Advanced Planner and Optimizer (APO)Oracle - Supply Chain Planning (SCP)
Manugisticsi2
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SAP ADVANCED PLANNER ANDOPTIMIZER: APO
Developed by SAP AGRuns on a separate dedicated server.
Used as planning system
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SAP APO SCREENSHOT
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SAP APO COMPONENTS
Demand Planning
Supply Network PlanningProduction Planning andDetailed SchedulingTransportation Planning and Vehicle Scheduling
Global ATPMulti Level Supply and Demand Matching
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SAP APO COMPONENTS
Demand Planning:
Generating the forecast of
market demand.
Supply Network Planning:
Takes the data from DP and
tries to allocate them over thenetwork defined.
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SAP APO COMPONENTS
Production Planning and DetailedScheduling:
(PP/DS) produces detailed plan of the SNP
resulted plan and plans multi-siteproduction.
Transportation Planning and VehicleScheduling:
(TP/VS) enables the transportation plannerto efficiently plan the available capacity ofvehicles with the goals of planning moreefficient loading capacity and lowering costs
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SAP APO COMPONENTS
Global Available to Promise (GATP):
Global ATP can be used in heterogeneoussystem landscapes to provide necessaryinformation
Multi Level Supply and DemandMatching:
Matching a large set of prioritized
customer demands and forecasts to a setof supplies while taking into account thecurrent production capacities andtransportation capabilities
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ORACLE SUPPLY CHAINPLANNING: SCP
Supply chain management tools beside the ERPsystems.
Allow modelling the facilities and lanesconnecting the facilities.
Allow recording estimations of demand andseeing how that demand would play through thedistribution network.
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SCP COMPONENTS
Supply Chain Planning,Oracle Demand Planning
Oracle Master SchedulingSupply Chain Execution,Oracle Advanced Supply
Chain Planning
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SCP COMPONENTS
Demand Planning:
(ODP) generates demand forecaststhat form the basis of plans from long-
term strategic business plans toforecasts that feed the masterproduction schedule.
Oracle Master Scheduling
Is an anticipated shipment schedule; itis the statement of demand, which isrecognized for a particular planningrun.
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SCP COMPONENTS
Supply Chain Execution:
Backbone of a business closelyfollow the planning processes and
cannot afford to lag behind.
Oracle Advanced Supply ChainPlanning:
Provides planning across the entiresupply chain in a single planning run.Just like MRP, it provides the optionsof constraint-based and optimized
planning.
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MANUGISTICS
Designed to address the supply chainmanagement processes.
Help manage the many facets of a supply chainfrom strategic network design to operational
planning.Runs on separate server
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MANUGISTICS COMPONENTS
Sales and OperationsPlanning,
Order Management,
Manufacturing Planningand Scheduling,
ProcurementManagement.
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MANUGISTICS COMPONENTS
Sales and Operations Planning:
(S&OP) solution is designed to helpcompanies maximize customersatisfaction and meet profitabilitygoals by achieving an optimal balanceof demand and supply.
Order Management:
Consolidates orders into a singleinterface for submission, tracking,routing, fulfillment, and status queries.
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MANUGISTICS COMPONENTS
Manufacturing Planning andScheduling:
Engines designed to meet the specificneeds of different manufacturingenvironments and that function togetherseamlessly with the business goals.
Procurement Management:
Help companies consolidate purchaseorder management, no matter the numberof existing purchasing applications, tohelp realize savings from economies of
scale.
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I2
Runs on a separate dedicated server and hasan open architecture known as Supply ChainOperating Services (SCOS) connects multiplelegacy, ERP, and transportation systems in real
time.i2 Six has integration capability with other corefunctions housed in enterprises supply chainand ERP applications.
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I2 COMPONENTS
Fulfillment Optimization,
Logistics Optimization,Production Optimization,Spend Optimization.
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I2 COMPONENTS
Fulfillment Optimization:
The integration of planning andexecution including distributedorder management, inventorymanagement and supply chainevent management.
Logistics Optimization:
Tries to optimize logisticsprocesses while deliveringproducts on time and on budget.
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I2 COMPONENTS
Production Optimization:
Predicts demand and plan supply tomeet that demand, designs and
validates a supply chain strategybefore deployment, monitors andmanages their customer demand withchannels and customers.
Spend Optimization:
For rationalizing all parts andmaterials that will be bought.
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CONCLUSION
ERPTransaction Oriented DesignGreat Planning CapabilitiesSeparate Constraints Consideration
Long Duration of Queries
SCMSimulateous Consideration ofConstraintsEasy to Get AnswersMany Visible EnhancementProvides More Functionality
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FUTURE WORK
Data Consistency Problembetween ERP and SCM
I2 SAP ALE (ApplicationLink Enabling)SIS (Specialized IntegrationSoftware) - CrossWorlds Inc.
Rapid Convergence betweenERP and SCM
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REFERENCES
A Process Change-Oriented Model for ERP Application, Majed Al-Mashari
Cut Costs, Realize Potential with SAP SIs SCM Approach, SAP WhitePaper
ERP vs SCM: What's the difference, ERP Fans White Paper
ERP and APS Applications for Operations Management, Juha Salmi
Enhancing ERP-Architectures for Business Networking, Roland Klueber,Rainer Alt
SCM Infodays @ SAP Denmark, Dirk Treusch
Advanced Planning and Scheduling (APS) and Extension Systems,Infotech
E-Business Application Software, Dr. Anol Bhattacherjee
ERP/MRP II Replace or Enhance, Charles J. Murgiano,The Impact of ERP on Supply Chain Management, Henk A. Akkermans,
Paul Bogerd, Enver Yucesan
Distributed Decision Making in Supply Chain Management, ChristophSchneeweiss
Program Related White Papers, SAP ORACLE MANUGISTICS I2
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QUESTIONS & ANSWERS
YOUR
ATTENTION
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