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Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP). Project Group. Ali KODAL Cagdas GUR Dalvin EBIWARE Ferdad MOTARJEMI Mustafa Gündeğer. What is Enterprise Resource Planning (ERP)? How ERP systems are implemented within companies? Companies before ERP Systems EMU Real Case Example

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Enterprise Resource Planning (ERP)

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  1. Enterprise Resource Planning (ERP) Project Group Ali KODAL Cagdas GUR Dalvin EBIWARE Ferdad MOTARJEMI Mustafa Gündeğer

  2. What is Enterprise Resource Planning (ERP)? • How ERP systems are implemented within companies? • Companies before ERP Systems • EMU Real Case Example • Companies after ERP Systems • EMU Real Case Example • Sap Program Structure in Printing Process • E.M.U. ERP Systems • ERP Software Companies • Istanbul Fast Ferries (IDO) Uses SAP • How Engineers benefits from ERP systems? • SAP shareholders

  3. COMPUTER INTEGRATED MANUFACTURING - CIM • "CIM is the integration of total manufacturing enterprise by using integrated systems and data communication coupled with new managerial philosophies that improve organizational and personnel efficiency."

  4. Subsystemsof CIM operation: • CAD/CAM (Computer-aided design/Computer-aided manufacturing) • ERP (Enterprise resource planning) • CAPP, (Computer-aided process planning) • CNC (computer numerical control) machine tools • DNC, direct numerical control machine tools • FMS, flexible machining systems • ASRS, automated storage and retrieval systems • AGV, automated guided vehicles • Robotics • Automated conveyance systems • Computerized scheduling and production control • CAQ (Computer-aided quality assurance) • A business system integrated by a common database. • Lean Manufacturing

  5. What is Enterprise Resource Planning (ERP)? • ERP is an enterprise-wide information system designed to coordinate all the • resources, • information, • activities needed to complete business processes such as; • orderfulfillment • billing.

  6. How ERP Systems Works? • A typical ERP system would use multiple component of computer software and hardware to achieve integration • ERP delivers a single database that contains all data for the software module

  7. ERP SOLUTIONS QUALITY Increased Increased Decreased Decreased Increased Increased PRODUCTIVITY CUSTOMER SATISFACTION MARKET SHARE COST PROFIT

  8. Solutions of ERP • Financial Management • Inventory Management • Purchasing • Sales Management • Production Planning • Advanced Visual Planning • Manufacturing Management

  9. How ERP systems are implemented within companies? • ERP Software Companies start analysing the prospective company(s), identifing their individual needs. • Setup of ERP systems • For Mid-size companies 5-12 months • Large Companies 6-18 months

  10. Companies before ERP Systems

  11. Example of EMU • Industrial Engineering Faculty wants to buy a new Printer. • For this reason Secretary gives a purchasing order by filling purchasing order forms. • Next slide shows how this purchasing request process flow was working before ERP systems.

  12. New Printer Purchasing Process • Purchase order form for a new printer • Head of Department Confirmation- Faculty Head • Purchase order document sent to E.M.U. Account Office • Account Office Secretary sents the purchase order to the Responsibles • Purchase order- Responsible personal Confirmation • Purchasing department- Manager Confirmation • Transfer to Finance Department Secretary for processing • Finance Department Responsible’s Confirmation • Transfer to Rector’s Office • Rector’s Secretary- Confirmation • Confirmation Transfer, to Purchase Department Secretary • Purchase Responsible personal commends with Purchase:

  13. Example: Before ERP Systems Transfer to Accounting Office Transfer to Finance Departmen Transfer to Accounting Office Transfer to Manager • Secretary’s New printer application

  14. Companies after ERP Systems

  15. Example E.M.U. IE Faculty • Industrial Engineering Faculty wants to buy a new HP Printer. • For this reason Secretary gives a purchasing order with using E.M.U. Online ERP systems. • Next slide shows the purchasing order process flow with ERP Systems.

  16. E.M.U. After ERP Systems

  17. In this real case there the benefits of the ERP systems • Online Data Flow decreases the process time • Fast & Online Confirmation • Less Paperwork • No need for folder storage • Database Security • Less Employee needed • Easy Financial Management • Better Inventory Management

  18. Example E.M.U. IE Faculty • One of instructor gives printing order to the secretary. • Next slides shows the process flow and how the system works step by step.

  19. SAPProgram Structure in Printing Process Open program Request Form is selected for Printing Office. secretary receives a code from program Then the printing process drops to the list of the printing center. Secretary confirms on the SAP program signed After signing the paper the form is sent to secretary number is sent to instructor and instructor filled a small paper work

  20. Printing Process Flow Diagram

  21. Printout Process of IE Department Secretary of the department opens SAP page. • security step 1 is for • IEDEPT • 2. security step 2 is for Administrator. User Password Sign In EMU Information Department

  22. After Second step menu is shown Purchasing & Inventory Control Management Create Request Editting Managerial Unit Request Confirmation Request List Printout

  23. 3. Request Form is selected forPrinting Office. 4. Then, title of the request, course code, instructor name, work category, and office telephone number is filled by secretary

  24. Printing Department Request Form User Subject of Request Printout Materials will be selling in bookstore Work type Next Phone Name Surname Definitions

  25. 5.Secretary receives a number (code) from program. 6.This number is sent to the instructor and the instructor fills a short form. 7.After he/she signed the paper the form is sent to the secretary; 8.Secretary confirms on the SAP program. 9. Accounting office is informed and cost is calculated, check to see if Industrial Engineering has the required budget. After approval 10.Then the printing process drops to the list of the printing center. 11. Inventory management is informed. 12. Purchasing Office is informed simultaneusly.

  26. 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

  27. What is SAP MM?SAP MM (Materials Management) • SAP MM is a module is used for Procurement Handling and Inventory Management. • The module has two important master data - material and vendor. • Broadly, the various levels that can be defined for a SAP MM implementation are: • Client, • Company Code, • Plant, • Storage Location, • Purchase Organization.

  28. Material Management (MM)LOGICAL STRUCTURE • supplier • Distribution • vendor • customer • production

  29. SAP FICO Financial Accounting (FI) Module • The SAP FICO module includes 2 major categories; • Financials (FI) • Controlling (CO) FI(Financial Accounting) module includes; • Accounts payable • Accounts receivable • General ledger

  30. Controlling (CO) Module The CO (Controlling) Module has multiple configuration steps that must be followed for complete implementation of this module. • Cost Center • Order Management • Commitment Mgt • Profit Analysis • Acty-Based Costing

  31. ERP Software Companies& Marketshares SoftwareMarket Share SAP15.6 Peoplesoft4.9 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

  32. Istanbul Fast Ferries (IDO) Uses SAP Software

  33. Istanbul Fast Ferries (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

  34. PASSANGER MAINTENANCE SAP CENTER FUEL EMPLOYEE PASSANGER PASSANGER

  35. SAP Systems arranges relationship between; • shipping conditions, • route determination, • shipping point, • employee conditions, • fuel supply, • maintenance Combine these variables in order to determine optimaltransportationmode and service levels.

  36. Controlling Module (CO) • IDO passanger can send SMS to IDO SAP system and get the information about shipping route times. • This process is a service of Controlling Module.

  37. Istanbul Fast FerriesSAP 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

  38. PM - Plant Maintenance • Equipment and Technical Objects (PM-EQM) • Preventive Maintenance ( PM-PRM) • Maintenance Order Management (PM-WOC) • Work Clearance Management (PM-WCM) • Information System (PM-IS) • Workflow Scenarios (PM/CS)

  39. Istanbul Fast FerriesSAP 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

  40. Istanbul 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.

  41. How can Engineers benefit from ERP systems ?

  42. Usesful SAP Modules for Engineers • MM- Material Management • Better Procurement Handling • Orginized Inventory Management • Easy Purchase Organization • Faster Storage Location • PM – Plant Maintenance • Maintenance Order Management • Equipment and Technical Objects Coordination • Preventive Maintenance • Workflow Scenarios • Work Clearance Management

  43. MM Information System STOCK CONTROL PURCHASING INFO SYSTEM Production phase Storage Material Batch ABC analysis Stock value Planning Flexible analysis Purchasing group Vendor Material group Material ABC analysis MM

  44. Material management system is feed by the information that comes from;- purchasing information system and,- stock control

  45. OUTPUTS of ERP Systems DOCUMENTS Printer Fax Proposal Orders approval Delivery plans Shipping papers Warehouse check list Material document Accounting document Delivery/shipping document Invoice Dept & credit doc. Telex Mail Teletext EDI

  46. SAP Packet Providers

  47. SAP Packet Providers

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