orcan_alper

8/8/2019 ORCAN_ALPER

1/49

MODERN LIFE OF INFORMATION

SYSTEM TOOLS

ALPER ODABAIOLUANALYST PROGRAMMER

ORCAN ALPARINFORMATION TECHNOLOGIES SPECIALIST


2/49

AGENDA

PART IENTERPRISE RESOURCEPLANNING:ERPSUPPLY CHAIN

MANAGEMENT: SCMADVANCED PLANNING ANDSCHEDULING: APS

PART II

SAP APOORACLE SCPMANUGISTICSI2


3/49


4/49

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


5/49

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


6/49

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


7/49

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


8/49

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


9/49

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


10/49

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,


11/49

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


12/49


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


13/49


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


14/49

SCM PRODUCT LIFE

BuyingBuying

SellingSelling

MakingMaking

MovingMoving

Warehousing

Warehousing

SCM is management of product life from buying,

making, moving, and warehousing to selling


15/49

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


16/49

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.
http://hydra.gsa.gov/pbs/firstimpressions/takingaction/images/4.jpg


17/49

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).
http://hydra.gsa.gov/pbs/firstimpressions/takingaction/images/4.jpg


18/49

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.


19/49

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


20/49

APS FUNCTIONALITIES


21/49

APS ERP ARCHITECTURE


22/49

APS DEMAND PLANNING


23/49

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


24/49

APS PRODUCTION PLANNINGMETHODS


25/49

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


26/49

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.


27/49

APS SCM SOFTWARES

SAP - Advanced Planner and Optimizer (APO)Oracle - Supply Chain Planning (SCP)

Manugisticsi2


28/49

SAP ADVANCED PLANNER ANDOPTIMIZER: APO

Developed by SAP AGRuns on a separate dedicated server.

Used as planning system
http://www.tecnet.pt/sap/logo.gif


29/49

SAP APO SCREENSHOT


30/49

SAP APO COMPONENTS

Demand Planning

Supply Network PlanningProduction Planning andDetailed SchedulingTransportation Planning and Vehicle Scheduling

Global ATPMulti Level Supply and Demand Matching


31/49

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.


32/49

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


33/49

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


34/49

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.


35/49

SCP COMPONENTS

Supply Chain Planning,Oracle Demand Planning

Oracle Master SchedulingSupply Chain Execution,Oracle Advanced Supply

Chain Planning


36/49

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.


37/49

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.


38/49

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


39/49

MANUGISTICS COMPONENTS

Sales and OperationsPlanning,

Order Management,

Manufacturing Planningand Scheduling,

ProcurementManagement.


40/49


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.


41/49


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.


42/49

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.


43/49

I2 COMPONENTS

Fulfillment Optimization,

Logistics Optimization,Production Optimization,Spend Optimization.


44/49

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.


45/49

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.


46/49

CONCLUSION

ERPTransaction Oriented DesignGreat Planning CapabilitiesSeparate Constraints Consideration

Long Duration of Queries

SCMSimulateous Consideration ofConstraintsEasy to Get AnswersMany Visible EnhancementProvides More Functionality


47/49

FUTURE WORK

Data Consistency Problembetween ERP and SCM

I2 SAP ALE (ApplicationLink Enabling)SIS (Specialized IntegrationSoftware) - CrossWorlds Inc.

Rapid Convergence betweenERP and SCM


48/49

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


49/49

QUESTIONS & ANSWERS

YOUR

ATTENTION

THAN
http://images.google.com/imgres?imgurl=http://www.valuepatent.ch/img/exclamation.jpg&imgrefurl=http://www.valuepatent.ch/credits.html&h=144&w=163&sz=14&tbnid=nSdp8OSwAfsJ:&tbnh=81&tbnw=91&start=94&prev=/images%3Fq%3DEXCLAMATION%26start%3D80%26hl%3Dtr%26lr%3D%26sa%3DN

orcan_alper

Documents