case study i
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Case Study I. EGN 5621 Enterprise Systems Collaboration Summer B, 2014. Operate a Distribution Company (Operations & Trial Run). EGN 5621 Enterprise Systems Collaboration. Each time should have 3-4 participants. Each team operates a bottle distribution company. - PowerPoint PPT PresentationTRANSCRIPT
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Case Study ICase Study I
EGN 5621 Enterprise Systems CollaborationSummer B, 2014
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Operate a Distribution Operate a Distribution CompanyCompany
(Operations & Trial Run)(Operations & Trial Run)
EGN 5621 Enterprise Systems Collaboration
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TeamsTeams
Each time should have 3-4 participants.
Each team operates a bottle distribution company.
Participants make business decisions to ensure the profitability of their operation, using standard reports.
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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: 18• Market size of about € 6,000 per company per step
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The 6 Products The 6 Products
Product Code Product Description Units in box Cost of boxes
$$-B01 1L ClearPure 12 bottles 11.99 $$-B02 1L Spritz 12 bottles 14.99 $$-B03 1L Lemon Spritz 12 bottles 16.99 $$-B04 500mL ClearPure 24 bottles 16.99 $$-B05 500mL Spritz 24 bottles 19.99 $$-B06 500mL Lemon Spritz 24 bottles 22.99
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The Game Layout DesignThe Game Layout Design
20 steps
20 min20 steps
20 min20 steps
20 min
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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
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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 in the same team (ex. reporting, tracking, execution of orders, etc.)
All transactions are traceable, transactions with financial impacts can be reversed, never erased
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User interfaceUser interface• Users interact with the enterprise system
through transactions. • A large number of pre-programmed
transactions exist in SAP• Each 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
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SAP Menu & NavigationSAP Menu & Navigation
Extras / Settings / Display Technical Names
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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 query• A table containing the requested data will
appear• The display and layout can sometimes be
modified
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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
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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 .
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Participant’s job aidParticipant’s job aid
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SAP ERPsim Server, and Client for SAP ERPsim Server, and Client for DistributionDistribution
Server: Vichy
Client: 495
Application Server: vichy.cob.csuchico.edu
System ID: VICSystem #: 31
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SAP ERPsim Server, and Client for SAP ERPsim Server, and Client for DistributionDistribution
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Getting Started:Getting Started:Set up teams: • Companies : A to D for Pilot Run and E to H for real.• 3- 4 persons in a team
Userid: $#◦Where ◦ $ = Assigned team letter, ◦ # = User 1 to User 4
Password: ERPSIM
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Login informationLogin information
Client = 495
Login: $#Where
$ = Team, # = User 1 to
User 4
Password: ERPSIMYou will have to change your password the first time you enter
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The Distribution Game:The Distribution Game:Round 1 Round 1 (20 steps)(20 steps)
Now start the simulator for 20 steps
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20 min
20 steps20 steps
Distribution Game: Distribution Game: Round 1Round 1
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Check initial inventory Check initial inventory
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Check Financial StatementCheck Financial Statement
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Check Financial StatementCheck Financial Statement
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Check Initial Financial StatementCheck Initial Financial Statement
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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
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Cost, inventory & initial Cost, inventory & initial pricingpricing
Material $$-B01 $$-B02 $$-B03 $$-B04 $$-B05 $$-B06
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
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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
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Participant’s job aid & MenuParticipant’s job aid & Menu
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Maintain Prices for DC 18Maintain Prices for DC 18
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Marketing expensesMarketing expenses
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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
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Stock in material overviewStock in material overview
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Check sales summary reportCheck sales summary report
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Check market reportCheck market report
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Check sales order reportCheck sales order report
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20 min
20 steps20 steps
Distribution Game: Distribution Game: Round 2Round 2
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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 $$-B01 $$-B02 $$-B03 $$-B04 $$-B05 $$-B06
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
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Participant’s job aid & MenuParticipant’s job aid & Menu
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Create Planned Ind. RequirementsCreate Planned Ind. Requirements
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Create Planned Ind. RequirementsCreate Planned Ind. Requirements
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Execute MRPExecute MRP
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After the MRP runAfter the MRP run
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Convert purchase requisitions into Convert purchase requisitions into purchase orderspurchase orders
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Track purchase ordersTrack purchase orders
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The Distribution Game:The Distribution Game:Round 2Round 2 (20 steps) (20 steps)
Now start the simulator for 20 steps
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20 min
20 steps20 steps
Distribution Game: Distribution Game: Round 3Round 3
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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 $$-B01 $$-B02 $$-B03 $$-B04 $$-B05 $$-B06
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
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Participant’s job aid & MenuParticipant’s job aid & Menu
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ForecastingForecasting
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The Distribution Game:The Distribution Game:Round 3Round 3 (20 steps) (20 steps)
Now start the simulator for the last
20 steps
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Cash managementCash management
• You started with 146,060 in cash• You can reimburse your bank loan at
anytime and save on interest payment• You 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
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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%
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Check financial dataCheck financial data
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Financialstatements
Productcosting
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Analysis of Your Distribution Analysis of Your Distribution OperationOperation