Daily PlanDay 5

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Daily Plan-Day 5
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Module Overview

• A Model of Supply Chain Information Flows
• Master Data Management
• Information Visibility and SCM
• Integrated SC Information Systems

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A Model of Supply Chain Information Flows
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A map of supply chain information flows
Supplier Internal
Customer Linkages Production
Logistics Linkages
Strategic decision-making Planning
systems Execution systems
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A map of supply chain information flows
Supplier Internal
Customer Linkages Production
Logistics Linkages
Strategic decision-making Planning
systems Execution systems
Capture and control transactions
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A map of supply chain information flows
Supplier Internal
Customer Linkages Production
Logistics Linkages
Strategic decision-making Planning
systems Execution systems
Set boundaries on what can be done
Plan lower-level activities
Capture and control transactions
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A map of supply chain information flows
Supplier Internal
Customer Linkages Production
Logistics Linkages
Strategic decision-making Planning
systems Execution systems
Set boundaries on what can be done
Plan lower-level activities
Capture and control transactions
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Perspective 1Classic top-down model
Tactical Short-term Execution
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Perspective 2Horizontal supply chain flows
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Master Data Management (MDM)

• Concepts and Terms

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Terms

• Master Data Management is a process (set of
  activities) within an organization that create,
  modify, maintain and control Master Data (pricing
  structures, approved suppliers, controls,
  approved material, approved buying channels,
  usage data) for the Supply Chain processes
  according to standard naming conventions /
  required elements.
• This includes
• Material Master, Material and Services
  Grouping
• Vendor Master, Contract DB
• E-Catalogs, Supplier Performance
• Outline Agreements, Spend Data.

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Procurement Master Data
Search
Select Material
Select Vendor
Select Terms
Select Material
Plan Job
Process and Pay PO
Vendor Master
Material Master
Outline Agreements
BOM
Transaction Data
Fulfill and Invoice PO
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Master Data Typical Issues

• Not enough master contracts with suppliers or
  outline agreements in the system.
• Material number strategies vary throughout the
  organization from everything gets a number to
  only the stocked parts. (UN SPSC)
• Material number search capability is perceived as
  difficult to use unless a user description comes
  close to the description in the system catalog.
• Over half of the purchases (90-100,000 annually)
  have a material number but less than 20 have
  outline agreements in the system.
• Often the pricing is incorrect causing both
  suppliers and buyers to make adjustments before
  work is performed, material delivered or payment
  is made.
• Difficult to find out which supplier offers which
  material or service.
• This situation results in significant friction
  in the P2P process, a distraction of the sourcing
  efforts from larger opportunities with key
  suppliers and is a barrier to further automation
  of the P2P process.

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Terms
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Terms
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Terms

• Master Data and Transaction Data. There are two
  type of data, which can be differentiated by
  their functional purpose
• Master Data that seldom changes, such as customer
  or vendor details and material technical records
  or part numbers.
• Transactional Data that the system uses during
  data processing, such as when receiving goods or
  when changing something in a master data record.

BOM
Payments
Req.
PO
Transaction Data
History on the life of a Req-PO
Invoices
Vendor Master
Material Master
Outline Agreements
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Terms

• A Bill of Material (BOM) for Plant Maintenance
  will display the structural elements of a
  technical object as a list of materials marked as
  maintenance assemblies.
• PM BOM a BOM focus on a piece of equipment or
  functional location.

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Information Visibility and SCM
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Visibility
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What needs to be done?
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What data is involed?
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Integrated SC Information Systems
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A map of supply chaininformation technologies
current view

• Where do such technologies as RFID go? Executive
  dashboard applications?

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Foresight vs. Hindsight
Predictive Analytics
Optimization
Predictive Modeling
Whats the best that can happen?
Forecasting
What will happen next?
Reporting / OLAP
How much and where?
Data Management
Data Access
How many, how often?
What happened?
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Business Intelligence / Analytics
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A map of supply chaininformation technologies
current view
Business Intelligence / Analytics

• Where do such technologies as RFID go? Executive
  dashboard applications?

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Team Exercise1. Review your MDM maturity. Build
a one year plan to improve.