MODERN LIFE OF INFORMATION SYSTEM TOOLS

1
MODERN LIFE OF INFORMATION SYSTEM TOOLS

• ALPER ODABASIOGLU
• ANALYST PROGRAMMER

ORCAN ALPAR INFORMATION TECHNOLOGIES SPECIALIST
2
AGENDA

• PART I
• ENTERPRISE RESOURCE PLANNINGERP
• SUPPLY CHAIN MANAGEMENT SCM
• ADVANCED PLANNING AND SCHEDULING APS
• PART II
• SAP APO
• ORACLE SCP
• MANUGISTICS
• I2

3
ENTERPRISE RESOURCEPLANNING ERP

• A packaged business software system that enables
  a company to manage the efficient and effective
  use of resources (materials, human resources,
  finance, etc.) by providing a total, integrated
  solution for the organizations
  information-processing needs

4
ERP SYSTEMS

• ERP systems are seen as optimization and
  integration tools of business processes across
  the supply chain within and beyond organizational
  boundaries, implemented through modern
  information management systems

5
ERP EVOLUTION
Wave 5
Goal Cross enterprise value
Inter-enterprise Integration (XRP)
Wave 4
Customer-Centric Integration (CRP)
Goal Customer value, effectiveness
Wave 3
Enterprise Integration (ERP)
Goal Firm-wide efficiency, cost cutting
Wave 2
Manufacturing Resources Planning (MRP II)
Goal Capacity Requiremnt Planning Simulative
Planning Functions
Wave 1
Material Requirements Planning (MRP)
Goal Improve/optimize manufacturing efficiency
6
ERP BENEFITS

• Improving information quality
• Reducing costs through retooling common business
  functions
• Improving 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
ERP MODULES

• FI Financial Accounting
• CO Controlling
• SD Sales Distribution
• MM Materials Management
• PP Production Planning
• PM Plant Maintenance
• QM Quality Management
• HR Human Resources
• AM Asset Management
• PS Project System
• WF Workflow
• APO Advanced Purchase Optimization
• IS Industry Solutions

Production Planning
Integrated Logistics
Sales Distribution (Order Entry)
Customer/ Employee
Accounting Financials
Human Resources
Enterprise Architecture
8
BEFORE ERP
9
AFTER ERP
10
ERP PROGRAMMING DEVELOPMENT

• Master data migration batch input,
• 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
SUPPLY CHAIN MANAGEMENT SCM

• The management of upstream and downstream
  relationships with suppliers and customers to
  deliver superior customer value at less cost to
  the supply chain as a whole.
• MANAGEMENT

12
SUPPLY CHAIN MANAGEMENT SCM

• A network of connected and interdependent
  organizations mutually and co-operatively working
  together to control, manage and improve the flow
  of materials and information from supplier to end
  users.
• MORE ACCURATE

13
SUPPLY CHAIN MANAGEMENT SCM

• Supply Chain Management is the integration of
  key business processes from end user through
  original suppliers that provides products,
  services, and information that add value for
  customers and other stakeholders.
• GSCF GLOBAL SUPPLY CHAIN FORUM

14
SCM PRODUCT LIFE

• SCM is management of product life from buying,
  making, moving, and warehousing to selling

15
SCM COLLABORATION
Tactical
Tactical
Demand Forecasting
Optimizing product mix
Collaboration on Forecasting
Collaboration on Forecasting
Matching demand -supply
Capacity Planning
Collaboration on Capacity Planning
Resource Planning
Analyzing Supply Chain
Operational
Operational
Production Planning
Demand Management
Shipping Optimization
Analyzing Supply Chain
Inventory Planning
Status Management
Shippment Tracking
Collaboration on Resource Planning
Transcctional
Transcctional
Shop Floor Control
Warehousing Management
Ordering Administration
Order Shipments
Inventory Tracking
16
SUCCESSFUL SCM

• Market Saturation Driven Focusing on generating
  high profit margins through strong brands,
  marketing and distribution.
• Operationally Agile Configuring assets and
  operations to react nimbly to emerging consumer
  trends along lines of product category or
  geographic region.
• Freshness Oriented Concentraing on earning a
  premium by providing the consumer with product
  that is fresher than competitive offerings.

17
SUCCESSFUL SCM

• Consumer Customizer Using mass customization to
  build and maintained close relationships with end
  consumers through direct sales.
• Logistics Optimizer Emphasing a balance of
  supply chain efficiency and effectiveness.
• Trade Focused Prioritizing low price, best
  value for the consumer (as with logistics
  optimizer strategy but focusing less on brand
  than on dedicated service to trade customers).

18
ADVANCE PLANNING AND SCHEDULING APS

• Encompasses a range of tools and techniques
  within a software system that has applications in
  manufacturing and logistics. It analyses the
  implications of alternative decisions, highlights
  problems and consequences, and generates optimal
  plans and schedules for transfer to execution
  tools.

19
APS FEATURES

• Combines finite capacity scheduling and
  memory-resident fast planning
• Determines a plan that considers all demand
  needs and supply limitations (feasible plan)
• Optimizes the plan, based on mathematical
  modeling techniques
• Recommends a best overall solution that
  considers both material and resource availability

20
APS FUNCTIONALITIES
21
APS ERP ARCHITECTURE
22
APS DEMAND PLANNING
23
APS PRODUCTION PLANNING FEATURES

• Combines finite capacity scheduling and
  memory-resident fast planning
• Plans simultaneous material requirements and
  schedules capacity at operation level for the
  short-term horizon
• Takes order sequences into account
• Optimizes machine schedules (sequences, lead
  times)
• Transfers the planning results to execution
  system

24
APS PRODUCTION PLANNING METHODS
25
APS ERP DIFFERENCES

• The assumption that the supply lead times are
  known constants and do not vary with flow and
  workload,
• The system requires with fixed processes or
  routings, ignoring alternative routing that could
  be used,
• The sequencing logic prioritises orders only by
  period or date when other options such as load
  levelling or minimal tool changes may be preferred

26
APS ERP DIFFERENCES

• All work is loaded under assumption of infinite
  capacity when in reality, working capacity is
  always constrained by time and resources
  available,
• The process of schedule regeneration takes
  considerable time to calculate, review and
  process the recommended actions. This leads to
  regenerate material requirements on a once per
  monthly basis, when industry is seeking daily
  changes to be passed down the supply chain.

27
APS SCM SOFTWARES

• SAP - Advanced Planner and Optimizer (APO)
• Oracle - Supply Chain Planning (SCP)
• Manugistics
• i2

28
SAP ADVANCED PLANNER AND OPTIMIZER APO

• Developed by SAP AG
• Runs on a separate dedicated server.
• Used as planning system

29
SAP APO SCREENSHOT
30
SAP APO COMPONENTS

• Demand Planning
• Supply Network Planning
• Production Planning and
• Detailed Scheduling
• Transportation Planning and Vehicle Scheduling
• Global ATP
• Multi Level Supply and Demand Matching

31
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 the network defined.

32
SAP APO COMPONENTS

• Production Planning and Detailed Scheduling
• (PP/DS) produces detailed plan of the SNP
  resulted plan and plans multi-site production.
• Transportation Planning and Vehicle Scheduling
• (TP/VS) enables the transportation planner to
  efficiently plan the available capacity of
  vehicles with the goals of planning more
  efficient loading capacity and lowering costs

33
SAP APO COMPONENTS

• Global Available to Promise (GATP)
• Global ATP can be used in heterogeneous system
  landscapes to provide necessary information
• Multi Level Supply and Demand Matching
• Matching a large set of prioritized customer
  demands and forecasts to a set of supplies while
  taking into account the current production
  capacities and transportation capabilities

34
ORACLE SUPPLY CHAIN PLANNING SCP

• Supply chain management tools beside the ERP
  systems.
• Allow modelling the facilities and lanes
  connecting the facilities.
• Allow recording estimations of demand and seeing
  how that demand would play through the
  distribution network.

35
SCP COMPONENTS

• Supply Chain Planning,
• Oracle Demand Planning
• Oracle Master Scheduling
• Supply Chain Execution,
• Oracle Advanced Supply Chain Planning

36
SCP COMPONENTS

• Demand Planning
• (ODP) generates demand forecasts that form the
  basis of plans from long-term strategic business
  plans to forecasts that feed the master
  production schedule.
• Oracle Master Scheduling
• Is an anticipated shipment schedule it is the
  statement of demand, which is recognized for a
  particular planning run.

37
SCP COMPONENTS

• Supply Chain Execution
• Backbone of a business closely follow the
  planning processes and cannot afford to lag
  behind.
• Oracle Advanced Supply Chain Planning
• Provides planning across the entire supply chain
  in a single planning run. Just like MRP, it
  provides the options of constraint-based and
  optimized planning.

38
MANUGISTICS

• Designed to address the supply chain management
  processes.
• Help manage the many facets of a supply chain
  from strategic network design to operational
  planning.
• Runs on separate server

39
MANUGISTICS COMPONENTS

• Sales and Operations Planning,
• Order Management,
• Manufacturing Planning and Scheduling,
• Procurement Management.

40
MANUGISTICS COMPONENTS

• Sales and Operations Planning
• (SOP) solution is designed to help companies
  maximize customer satisfaction and meet
  profitability goals by achieving an optimal
  balance of demand and supply.
• Order Management
• Consolidates orders into a single interface for
  submission, tracking, routing, fulfillment, and
  status queries.

41
MANUGISTICS COMPONENTS

• Manufacturing Planning and Scheduling
• Engines designed to meet the specific needs of
  different manufacturing environments and that
  function together seamlessly with the business
  goals.
• Procurement Management
• Help companies consolidate purchase order
  management, no matter the number of existing
  purchasing applications, to help realize savings
  from economies of scale.

42
I2

• Runs on a separate dedicated server and has an
  open architecture known as Supply Chain Operating
  Services (SCOS) connects multiple legacy, ERP,
  and transportation systems in real time.
• i2 Six has integration capability with other
  core functions housed in enterprises supply
  chain and ERP applications.

43
I2 COMPONENTS

• Fulfillment Optimization,
• Logistics Optimization,
• Production Optimization,
• Spend Optimization.

44
I2 COMPONENTS

• Fulfillment Optimization
• The integration of planning and execution
  including distributed order management, inventory
  management and supply chain event management.
• Logistics Optimization
• Tries to optimize logistics processes while
  delivering products on time and on budget.

45
I2 COMPONENTS

• Production Optimization
• Predicts demand and plan supply to meet that
  demand, designs and validates a supply chain
  strategy before deployment, monitors and manages
  their customer demand with channels and
  customers.
• Spend Optimization
• For rationalizing all parts and materials that
  will be bought.

46
CONCLUSION

• ERP
• Transaction Oriented Design
• Great Planning Capabilities
• Separate Constraints Consideration
• Long Duration of Queries
• SCM
• Simulateous Consideration of Constraints
• Easy to Get Answers
• Many Visible Enhancement
• Provides More Functionality

47
FUTURE WORK

• Data Consistency Problem between ERP and SCM
• I2 SAP ALE (Application Link Enabling)
• SIS (Specialized Integration Software) -
  CrossWorlds Inc.
• Rapid Convergence between ERP and SCM

48
REFERENCES

• A Process Change-Oriented Model for ERP
  Application, Majed Al-Mashari
• Cut Costs, Realize Potential with SAP SIs SCM
  Approach, SAP White Paper
• 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 _at_ 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, Christoph Schneeweiss
• Program Related White Papers, SAP ORACLE
  MANUGISTICS I2

49
QUESTIONS ANSWERS
THAN

• YOUR
• ATTENTION