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Enterprise Enterprise Resource Resource PlanningPlanning (ERP) (ERP)
Ali KODALAli KODAL
Cagdas GURCagdas GUR
Dalvin EBIWAREDalvin EBIWARE
Ferdad MOTARJEMIFerdad MOTARJEMI
Mustafa GündeğerMustafa Gündeğer
Project Group
What is Enterprise Resource Planning (ERP)?What is Enterprise Resource Planning (ERP)? How ERP systems are implemented within How ERP systems are implemented within
companies?companies? Companies before ERP Systems Companies before ERP Systems
EMU Real Case ExampleEMU Real Case Example Companies after ERP SystemsCompanies after ERP Systems
EMU Real Case ExampleEMU Real Case Example Sap Program Structure in Printing ProcessSap Program Structure in Printing Process
E.M.U. ERP SystemsE.M.U. ERP Systems ERP Software CompaniesERP Software Companies Istanbul Fast Ferries (IDO) Uses SAPIstanbul Fast Ferries (IDO) Uses SAP How Engineers benefits from ERP systems?How Engineers benefits from ERP systems? SAP shareholdersSAP shareholders
""CIM CIM is the integration of total is the integration of total manufacturing enterprise by using manufacturing enterprise by using integrated systems and data integrated systems and data communication coupled with new communication coupled with new managerial philosophies that improve managerial philosophies that improve organizational and personnel efficiencyorganizational and personnel efficiency."."
COMPUTER INTEGRATED MANUFACTURING - CIM
SubsystemsSubsystems of of CIM operation:CIM operation:
CAD/CAMCAD/CAM (Computer-aided design/Computer-aided (Computer-aided design/Computer-aided manufacturing) manufacturing)
ERPERP (Enterprise resource planning) (Enterprise resource planning) CAPP,CAPP, (Computer-aided process planning) (Computer-aided process planning) CNC CNC (computer numerical control) machine tools (computer numerical control) machine tools DNCDNC, direct numerical control machine tools , direct numerical control machine tools FMSFMS, flexible machining systems , flexible machining systems ASRSASRS, automated storage and retrieval systems , automated storage and retrieval systems AGVAGV, automated guided vehicles , automated guided vehicles Robotics Robotics Automated conveyance systems Automated conveyance systems Computerized scheduling and production control Computerized scheduling and production control CAQ CAQ (Computer-aided quality assurance) (Computer-aided quality assurance) A business system integrated by a common database. A business system integrated by a common database. Lean ManufacturingLean Manufacturing
What is Enterprise What is Enterprise Resource Planning (ERP)?Resource Planning (ERP)?
ERP is an enterprise-wide information ERP is an enterprise-wide information system designed to coordinate all thesystem designed to coordinate all the resourceresources,s, information, information, activities needed activities needed
to complete business processes such asto complete business processes such as;; orderorder fulfillmentfulfillment billing.billing.
How ERP Systems How ERP Systems Works?Works?
A typical ERP system would use multiple A typical ERP system would use multiple component of computer software and component of computer software and hardware to achieve integrationhardware to achieve integration
ERP delivers a ERP delivers a single databasesingle database that that contains all data for the software modulecontains all data for the software module
Increased
Increased
Decreased
Decreased
Increased
Increased
Solutions of ERPSolutions of ERP Financial ManagementFinancial Management Inventory ManagementInventory Management PurchasingPurchasing Sales ManagementSales Management Production PlanningProduction Planning Advanced Visual PlanningAdvanced Visual Planning Manufacturing ManagementManufacturing Management
How ERP systems are How ERP systems are implemented within implemented within companies?companies?
ERP Software Companies start analysing ERP Software Companies start analysing the prospective company(s), identifing the prospective company(s), identifing their individual needs. their individual needs.
Setup of ERP systemsSetup of ERP systems For Mid-size companies 5-12 months For Mid-size companies 5-12 months Large Companies 6-18 monthsLarge Companies 6-18 months
Companies before ERP Companies before ERP SystemsSystems
Example of EMUExample of EMU
Industrial Engineering Faculty wants to Industrial Engineering Faculty wants to buy a new Printer.buy a new Printer.
For this reason Secretary gives a For this reason Secretary gives a purchasing order by filling purchasing purchasing order by filling purchasing order forms.order forms.
Next slide shows how this purchasing Next slide shows how this purchasing request process flow was working before request process flow was working before ERP systems.ERP systems.
New Printer Purchasing New Printer Purchasing ProcessProcess
1. Purchase order form for a new printer
2. Head of Department Confirmation- Faculty Head
3. Purchase order document sent to E.M.U. Account Office
4. Account Office Secretary sents the purchase order to the Responsibles
5. Purchase order- Responsible personal Confirmation
6. Purchasing department- Manager Confirmation
7. Transfer to Finance Department Secretary for processing
8. Finance Department Responsible’s Confirmation
9. Transfer to Rector’s Office
10.Rector’s Secretary- Confirmation
11.Confirmation Transfer, to Purchase Department Secretary
12.Purchase Responsible personal commends with Purchase:
Secretary’s New printer application
Transfer to Finance
Departmen
Transfer to Accounting Office
Transfer to Manager
Transfer to Accounting Office
Example: Before ERP Systems
Companies after ERP Companies after ERP SystemsSystems
Example E.M.U. IE Faculty Example E.M.U. IE Faculty
Industrial Engineering Faculty wants to Industrial Engineering Faculty wants to buy a new HP Printer.buy a new HP Printer.
For this reason Secretary gives a For this reason Secretary gives a purchasing order with using E.M.U. purchasing order with using E.M.U. Online ERP systems.Online ERP systems.
Next slide shows the purchasing order Next slide shows the purchasing order process flow with ERP Systems.process flow with ERP Systems.
E.M.U. After ERP SystemsE.M.U. After ERP Systems
SAP SYSTEM ONLINEHEAD OF DEPARTMENT
REQUEST OF NEW HP PRINTER
CONFIRMATION
SAP SYSTEM ONLINEPURCHASE
RESPONSIBLE
FINANCIAL ACCOUNTING
SAP SYSTEM ONLINE PURCHASEING MANAGER
CONFIRMATION
SECRETARY
SAP SYSTEM ONLINEFINANCE DEPARTMENT
CONFIRMATION SAP SYSTEM ONLINE
RECTORS OFFICECONFIRMATION
SAP SYSTEM ONLINEPURCHASE DEPARTMENT
PURCHASE OF NEW
HP PRINTER
Online Data Flow decreases the process timeOnline Data Flow decreases the process time Fast & Online ConfirmationFast & Online Confirmation Less PaperworkLess Paperwork No need for folder storageNo need for folder storage Database SecurityDatabase Security Less Employee needed Less Employee needed Easy Financial ManagementEasy Financial Management Better Inventory ManagementBetter Inventory Management
In this real case there the benefits of the ERP systems
Example E.M.U. IE FacultyExample E.M.U. IE Faculty
One of instructor gives printing order to One of instructor gives printing order to the secretary.the secretary.
Next slides shows the process flow and Next slides shows the process flow and how the system works step by step.how the system works step by step.
SAPSAP Program Structure in Printing ProcessProgram Structure in Printing Process
number is sent to instructor and
instructor filled a small paper work
Secretary confirms on the SAP program
secretary receives a code from program
After signing the paper the form is sent to secretary
Open program
Request Form is selected for Printing Office.
Then the printing process
drops to the list of th
e
printing center.
signed
Printing Process Flow DiagramPrinting Process Flow Diagram
Secretary of the department opens SAP page.
Printout Process of IE DepartmentPrintout Process of IE Department
1.security step 1 is for IE DEPT
2. security step 2 is for Administrator.
User
Password
Sign In
EMU Information Department
After Second step menu is shownAfter Second step menu is shown
Purchasing & Inventory Control Management
Managerial Unit Request
Printout
Request List
Confirmation
Create Request
Editting
3. 3. Request Form is selected forRequest Form is selected for Printing Printing Office. Office.
4.4. T Then, title of the request, course code, hen, title of the request, course code, instructor name, work category, and instructor name, work category, and office telephone number is filled by office telephone number is filled by secretary secretary
Name Surname Phone
Definitions
Next
Materials will be selling in bookstorePrintout
Subject of Request
Printing Department Request Form
Work type
User
5.S5.Secretary receives a number (code) from program. ecretary receives a number (code) from program. 6.T6.This number is sent tohis number is sent to the the instructor and instructor and the the
instructor fillinstructor fillss a a short form.short form.7.7.After he/she signed the paper the form is sent to After he/she signed the paper the form is sent to the the
secretarysecretary;; 8.Secretary8.Secretary confirm confirmss on the SAP program. on the SAP program. 9. Accounting office is informed and cost is calculated, 9. Accounting office is informed and cost is calculated,
check to see if Industrial Engineering has the check to see if Industrial Engineering has the required budget. After approvalrequired budget. After approval
10.Then the printing process drops to the list of the 10.Then the printing process drops to the list of the printing center.printing center.
11. Inventory management is informed.11. Inventory management is informed.12. Purchasing Office is informed simultaneusly.12. Purchasing Office is informed simultaneusly.
EMU ERP SYSTEMS
• 6.00cc SAP
• ORACLE 10.2
MM MODULE Material Management
FI MODULE Financial Management
CO MODULE Controlling Operations
AA MODULE Asset Accounting
FM MODULE Funds Management
What is SAP MM?What is SAP MM? SAP MM (Materials Management)SAP MM (Materials Management)
SAP MM iSAP MM is a module is used for Procurement Handling s a module is used for Procurement Handling and Inventory Management. and Inventory Management.
The module has two important master data - The module has two important master data - materialmaterial and and vendorvendor. .
Broadly, the various levels that can be defined for a Broadly, the various levels that can be defined for a SAP MM implementation are: SAP MM implementation are: Client, Client, Company Code, Company Code, Plant, Plant, Storage LocationStorage Location,, Purchase Organization. Purchase Organization.
Material ManagementMaterial Management ( (MMMM))LOGICAL STRUCTURELOGICAL STRUCTURE
vendor
supplier
production
Distribution
customer
SAP FICO SAP FICO
Financial Accounting Financial Accounting (FI) Module(FI) Module
The SAP FICO module includes 2 major categoriesThe SAP FICO module includes 2 major categories;; Financials (FI) Financials (FI) Controlling (CO)Controlling (CO)
FIFI (Financial Accounting) module (Financial Accounting) module includesincludes;; AAccounts payableccounts payable AAccounts receivableccounts receivable GGeneral ledgereneral ledger
ControllingControlling (CO) Module (CO) Module
The The CO CO (Controlling) Module has multiple configuration (Controlling) Module has multiple configuration steps that must be followed for complete implementation steps that must be followed for complete implementation of this module. of this module.
Cost CenterCost Center Order ManagementOrder Management Commitment MgtCommitment Mgt Profit Analysis Profit Analysis Acty-Based CostingActy-Based Costing
ERP Software CompaniesERP Software Companies& Marketshares& Marketshares
SAP; 15,6
Peoplesoft; 4,9
Oracle ; 4,8
Baan; 3
CA; 3
JDE; 2,2
SSA; 2,1
GEAC; 2
IBM; 1,8
JBA; 1,7
Others ; 59
Software Market Share
SAP 15.6
Peoplesoft 4.9
Oracle 4.8
Baan 3.0
CA 3.0
JDE 2.2
SSA 2.1
GEAC 2.0
IBM 1.8
JBA 1.7
Others 59.0
Istanbul Fast Ferries (IDO) Istanbul Fast Ferries (IDO) Uses SAP SoftwareUses SAP Software
Istanbul Fast Ferries Istanbul Fast Ferries (IDO)(IDO)
• Annually 91 million passanger
• Annually 5,5 million vehicles
• Dailly 1,200 navigation capacity
• 90 Ships
• 82 Terminals
• 3,200 personel
• 314 Million YTL endorsement
MAINTENANCE
FUEL
PASSANGER
PASSANGER
PASSANGER
EMPLOYEE
SAP CENTER
SAP Systems arranges SAP Systems arranges relationship betweenrelationship between;;
shipping conditionshipping conditionss, , route determination, route determination, shipping pointshipping point, , employee conditions, employee conditions, fuel supply, fuel supply, maintenance maintenance
CombineCombine t these variableshese variables in order to in order to determine optimaldetermine optimal transportationtransportation mode and mode and service levels. service levels.
Controlling Module (CO) Controlling Module (CO)
IDO passanger can send SMS to IDO IDO passanger can send SMS to IDO SAP system and get the information SAP system and get the information about shipping route times.about shipping route times.
This process is a service of Controlling This process is a service of Controlling Module.Module.
Istanbul Fast FerriesIstanbul Fast FerriesSAP SYSTEM’s first stepSAP SYSTEM’s first step
PM Plant Maintanance
MM MODULE Material Management
CO-CCA MODULE Controlling Operations
FI MODULE Financial Management
• FI-AA MODULE Asset Accounting
• FM MODULE Funds Management
HR-PA Human Resource- Professional Association
PM - Plant MaintenancePM - Plant Maintenance Equipment and Technical Objects (PM-EQM)Equipment and Technical Objects (PM-EQM) Preventive Maintenance ( PM-PRM)Preventive Maintenance ( PM-PRM) Maintenance Order Management (PM-WOC)Maintenance Order Management (PM-WOC) Work Clearance Management (PM-WCM)Work Clearance Management (PM-WCM) Information System (PM-IS)Information System (PM-IS) Workflow Scenarios (PM/CS)Workflow Scenarios (PM/CS)
Istanbul Fast FerriesIstanbul Fast FerriesSAP SYSTEM 2nd stepSAP SYSTEM 2nd step
TR-CM Data Adjustment in Cash Management
TR-TM Treasury Management
HR-PD Human Resources Performance Evaluation
CO-PA Profitability Analysis
WF Work Flow
Istanbul Fast FerriesIstanbul Fast Ferries
BENEFITS OF SAP SYSTEM FOR IDO
Increased efficiency of whole system, Prevented from the same procedures repetition, Easy access of any information from the huge
databank, Easy tracking and control of past transactions, Standardization of transactions and information
security, and Measurable timing of transactions and delagation.
How can Engineers benefit How can Engineers benefit from ERP systems ?from ERP systems ?
Usesful SAP Modules for Usesful SAP Modules for EngineersEngineers
MM- Material ManagementMM- Material Management Better Procurement HandlingBetter Procurement Handling Orginized Inventory ManagementOrginized Inventory Management Easy Purchase OrganizationEasy Purchase Organization Faster Storage LocationFaster Storage Location
PM – Plant MaintenancePM – Plant Maintenance Maintenance Order ManagementMaintenance Order Management Equipment and Technical Objects CoordinationEquipment and Technical Objects Coordination Preventive MaintenancePreventive Maintenance Workflow Scenarios Workflow Scenarios Work Clearance ManagementWork Clearance Management
PURCHASING INFO SYSTEM STOCK
CONTROL
MM
Purchasing groupVendorMaterial groupMaterial
ABC analysis
Production
phase
Storage
Material
Batch
ABC analysis
Stock value
Planning
Flexible
analysis
MM Information System
Material management system is feed Material management system is feed by the information that comes fromby the information that comes from;;
- - purchasing information system andpurchasing information system and,,- - stock controlstock control
Fax
Telex
Teletext
Printer
EDI
OUTPUTS of ERP Systems
DOCUMENTS
Proposal
Orders approval
Delivery plans
Shipping papers
Warehouse check list
Material document
Accounting document
Delivery/shipping document
Invoice
Dept & credit doc.
SAP Packet Providers
SAP Packet Providers
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