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

 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

 "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." COMPUTER INTEGRATED MANUFACTURING - CIM

Subsystems of 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

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;  order fulfillment  billing.

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

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Solutions of ERP  Financial Management  Inventory Management  Purchasing  Sales Management  Production Planning  Advanced Visual Planning  Manufacturing Management

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

Companies before ERP Systems

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.

New Printer Purchasing Process 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 Systems

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.

E.M.U. After 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 In this real case there the benefits of the ERP systems

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.

 SAP Program 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 the printing center. signed

Printing Process Flow Diagram

Secretary of the department opens SAP page. Printout 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 shown Purchasing & Inventory Control Management Managerial Unit Request Printout Request List Confirmation Create Request Editting

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

Name Surname Phone Definitions Next Materials will be selling in bookstorePrintout Subject of Request Printing Department Request Form Work type User

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.

EMU ERP SYSTEMS 6.00cc SAP ORACLE 10.2 MM MODULEMaterial Management FI MODULEFinancial Management CO MODULEControlling Operations AA MODULEAsset Accounting FM MODULE Funds Management

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.

Material Management (MM) LOGICAL STRUCTURE  vendor  supplier  production  Distribution  customer

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

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

ERP Software Companies & Marketshares Software Market Share SAP15.6 Peoplesoft4.9 Oracle 4.8 Baan3.0 CA3.0 JDE2.2 SSA2.1 GEAC2.0 IBM1.8 JBA1.7 Others 59.0

Istanbul Fast Ferries (IDO) Uses SAP Software

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

MAINTENANCE FUEL PASSANGER EMPLOYEE SAP CENTER

SAP Systems arranges relationship between;  shipping conditions,  route determination,  shipping point,  employee conditions,  fuel supply,  maintenance Combine these variables in order to determine optimal transportation mode and service levels.

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.

Istanbul Fast Ferries SAP SYSTEM’s first step PMPlant Maintanance MM MODULEMaterial Management CO-CCA MODULEControlling Operations FI MODULEFinancial Management FI-AA MODULEAsset Accounting FM MODULE Funds Management HR-PAHuman Resource- Professional Association

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)

Istanbul Fast Ferries SAP SYSTEM 2nd step TR-CMData Adjustment in Cash Management TR-TMTreasury Management HR-PDHuman Resources Performance Evaluation CO-PAProfitability Analysis WFWork Flow

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.

How can Engineers benefit from ERP systems ?

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

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

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

Mail 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.

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