case study i egn 5621 enterprise systems collaboration (professional msem) fall, 2011
TRANSCRIPT
Case Study ICase Study I
EGN 5621 Enterprise Systems Collaboration(Professional MSEM)
Fall, 2011
Operate a Distribution Operate a Distribution CompanyCompany
(Operations & Trial Run)(Operations & Trial Run)
EGN 5621 Enterprise Systems Collaboration(Professional MSEM)
Fall, 2011
TeamsTeams
Each time should have 4-6 participants.
Each team operates a bottle distribution company.
Participants make business decisions to ensure the profitability of their operation, using standard reports.
The (German) MarketThe (German) Market
North45 retailers
South38 retailers
West40 retailers
• 6 products (boxes of 12x1L and 24x500mL)• 3 areas with distinct marketing accounts• One distribution channel: 14• Market size of about € 6,000 per company per step
The 6 Products The 6 Products
Product Code Product Description Units in box Cost of boxes
$$-F01 1L ClearPure 12 bottles 11.99 $$-F02 1L Spritz 12 bottles 14.99 $$-F03 1L Lemon Spritz 12 bottles 16.99 $$-F04 500mL ClearPure 24 bottles 16.99 $$-F05 500mL Spritz 24 bottles 19.99 $$-F06 500mL Lemon Spritz 24 bottles 22.99
The Game Layout DesignThe Game Layout Design
20 steps
25 min20 steps
25 min20 steps
25 min
Rules of the gameRules of the game
Each round will be of 20 steps (a bit more than 1 min per step)
End-of-round inventory is carried over to the next round
You can sell a product only if you have it in stock
You compete against the other teams and importers
Your objective is to maximize profit
ABC of the Enterprise systemABC of the Enterprise systemAn enterprise system is built around an
integrated databaseA system such as SAP contains tens of
thousands of data tablesWhen a user creates, changes or views data in
the system, he or she performs a transactionData changed or created by one user can be
exploited by all other users (ex. reporting, tracking, execution of orders, etc.)
All transactions are traceable, transactions with financial impacts can be reversed, never erased
User interfaceUser interfaceUsers interact with the enterprise system
through transactions. A large number of pre-programmed
transactions exist in SAPEach transaction has a transaction code –
one can call a transaction if one knows the transaction code
The SAP menu allows to browse and find the desired transaction
One can create a user menu or a list of favorites with the commonly used transactions
SAP Menu & NavigationSAP Menu & Navigation
Extras / Settings / Display Technical Names
Reports and queriesReports and queries
Reports and queries are transactions that allow users to view existing data
A typical query is performed as follows:In the first page of the transaction, you must
enter the selection criteria for the query (ex. Company code, product code, etc.)
Then, click on to execute the queryA table containing the requested data will
appearThe display and layout can sometimes be
modified
Entering new dataEntering new dataSome transactions are designed to
change or create new data (change forecast, release purchasing orders, change sale price, etc.)
The interface varies according to data required by the system
The system will not allow you to save information if all the compulsory fields have not been filled
You must save/release/confirm before exiting the transaction
Other useful buttonsOther useful buttonsUse the navigation buttons to go back or
get out of a transactionYou can open up to 6 sessions. Click on
to open a new sessionDelete , search , select all , view
, enter .
Participant’s job aidParticipant’s job aid
SAP ERPsim Server, and Client for SAP ERPsim Server, and Client for DistributionDistribution
Server: Vichy
Client: 530
Application Server: vichy.cob.csuchico.edu
System ID: VICSystem #: 31
SAP ERPsim Server, and Client for SAP ERPsim Server, and Client for DistributionDistribution
Getting Started:Getting Started:Set up teams: • Companies : A to F• 4- 6 persons in a team
Userid: intro_$ #◦Where ◦ $ = Assigned team letter, ◦ # = User 1 to User 6
Password: ERPSIM
Login informationLogin information
Client will be provided by the instructor
Login: intro_$ #Where
$ = Team, # = User 1 to
User 6
Password: ERPSIMYou will have to change your password the first time you enter
25 min
20 steps20 steps
Distribution Game: Distribution Game: Round 1Round 1
Cost, inventory & initial Cost, inventory & initial pricingpricing
Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06
Name 1L ClearPure 1L Spritz 1L Lemon Spritz
500mL ClearPure 500mL Spritz 500mL Lemon
Spritz
Size 1L 1L 1L 500mL 500mL 500mL
Number of bottles in package 12 12 12 24 24 24
Cost €11.99 €14.99 €16.99 €16.99 €19.99 €22.99
Initial price €14.99 €17.99 €19.99 €19.99 €22.99 €25.99
Initial stock 1,000 1,000 1,000 1,000 1,000 1,000
The Distribution Game:The Distribution Game:Quarter 1 (20 virtual steps)Quarter 1 (20 virtual steps)
Initial Financial Status:◦11000 Fix Assets 250,000◦70000 Common Stock (500,000)◦113300 Bank Cash Account 146,060◦792000 Finished Goods 103,940
The Distribution Case: Round 1 The Distribution Case: Round 1 (20 steps)(20 steps)You need to maintain the price of your 6 products
and invest in marketing.Need to know the following in order to make
decisions:◦ Maintain price list◦ See available stock◦ Monitor sales orders◦ Monitor competitors
Participant’s job aid & MenuParticipant’s job aid & Menu
Maintain Prices for DC 14Maintain Prices for DC 14
Marketing expensesMarketing expenses
On marketingOn marketing
Enter your daily marketing budget for each product and for each region
The impact of marketing in one region depends on your share of all marketing expenses in this region
Marketing induces customers to find your product “more desirable”
The daily marketing budget can be changed at any time
Stock in material overviewStock in material overview
Check sales summary reportCheck sales summary report
Check market reportCheck market report
Check sales order reportCheck sales order report
The Distribution Game:The Distribution Game:Round 1 Round 1 (20 steps)(20 steps)
Now start the simulator for 20 steps
25 min
20 steps20 steps
Distribution Game: Distribution Game: Round 2Round 2
It’s time to replenish !It’s time to replenish !
You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold.
Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06
Name 1L ClearPure 1L Spritz 1L Lemon Spritz 500mL ClearPure 500mL Spritz 500mL Lemon
Spritz
Initial forecast 1,000 1,000 1,000 1,000 1,000 1,000
Replenishment lead time Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps
Participant’s job aid & MenuParticipant’s job aid & Menu
Execute MRPExecute MRP
After the MRP runAfter the MRP run
Convert purchase requisitions into Convert purchase requisitions into purchase orderspurchase orders
Track purchase ordersTrack purchase orders
The Distribution Game:The Distribution Game:Round 2Round 2 (20 steps) (20 steps)
Now start the simulator for 20 steps
25 min
20 steps20 steps
Distribution Game: Distribution Game: Round 3Round 3
It’s time to replenish !It’s time to replenish !
You need to replenish. Change your forecast to adapt the replenishment levels to your needs
What do you need to know in order to make that decision ?
Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06
Name 1L ClearPure 1L Spritz 1L Lemon Spritz
500mL ClearPure 500mL Spritz 500mL Lemon
Spritz
Initial forecast 1,000 1,000 1,000 1,000 1,000 1,000
Replenishment lead time 3 steps 3 steps 3 steps 3 steps 3 steps 3 steps
Participant’s job aid & MenuParticipant’s job aid & Menu
ForecastingForecasting
The Distribution Game:The Distribution Game:Round 3Round 3 (20 steps) (20 steps)
Now start the simulator for the last
20 steps
Cash managementCash management
You started with 146,060 in cashYou can reimburse your bank loan at
anytime and save on interest paymentYou can use all your cash to stock products,
but …If you run out of cash, your bank loan will be
extended but you credit rating will go down and your interest payments will go up
Holding to much stock reduce your ability to response to customers’ preferences
45
Premium on credit ratingsPremium on credit ratingsCre dit ra tings Risk PremiumAAA 0.00% AA+ AA- A BBB+ BBB BBB- BB+ BB CC 10.00%
Check financial dataCheck financial data
47
Financialstatements
Productcosting
Analysis of Your Distribution Analysis of Your Distribution OperationOperation