Presentation is loading. Please wait.

Presentation is loading. Please wait.

Case Study 4: Operate a Manufacturing Company (Extension)

Similar presentations


Presentation on theme: "Case Study 4: Operate a Manufacturing Company (Extension)"— Presentation transcript:

1 Case Study 4: Operate a Manufacturing Company (Extension)
EGN Enterprise Systems Collaboration Summer B, 2012

2 What’s New in Mfg Extension?
Company can design own products based on specified rules Distribution channel 14 is available Company can make investment to improve production capacity Reduce set-up time Increase production capacity No starting inventory. Each company should do planning, run MRP, and convert purchase requisitions to POs before starting game.

3 What’s New in Mfg Extension?
Depreciation of fixed assets is assessed Fixed overheads are assessed Inventory storage cost for excess stock is assessed

4 1. Develop New Products At beginning of the game, each company has six finished products with a preset recipe for each product. You can change the recipe of a product during the simulation by changing its bill of material with T- code ZCS02. During simulation, your company always has six BOMs of finished products. If your company still has inventory of the finished product, the system doesn’t allow you to change its BOM. Your new product must meet the guideline for recipes. When the system accepts your changes in BOM, it will change the description in the material master to match the new content and weight. 4 4

5 Muesli Manufacturing Association Label Regulation

6 List of Master Data Created for the Simulation
Alphanumeric codes 6 Finished products $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06 6 Raw materials $$-R01 $$-R02 $$-R03 $$-R04 $$-R05 $$-R06 4 Packaging materials $$-P01 $$-P02 $$-P03 $$-P04 2 Vendors V01 V02 6 Bill of materials 1 Work center $$ 6 Routings 3 x 6 price lists (DC 10, 12, and 14) 6 info-records and 6 source lists for raw materials V01-$$-R01 V01-$$-R02 V01-$$-R03 V01-$$-R04 V01-$$-R05 V01-$$-R06 4 info-records and 4 source lists for packaging materials V02-$$-P01 V02-$$-P02 V02-$$-P03 V04-$$-P04 1 profit center 1 coster center

7 Change BOM for New Product
7 7

8 Change BOM for New Product
8 8

9 2. Distribution Channel 14 Only buy small boxes (0.5 kg)
Less price sensitive Sensitive to advertising Payment delay of 5 to 15 steps Will have a stronger preference for 3 particular products during the simulation 9 9

10 3. Investment for Improvement of Production Capacity
Reduce set-up time The default set-up time is 12 hours for changing product in your production line. If you want to keep product variety and wish to run small production batches, you can make investment to reduce the set-up time. The following table shows the set-up time as a function of your investment. If your investment is zero, the set-up time is 12 hours. If you invest 44,117.75, then the set-up time reduces to 10.5 hours. 10 10

11 Investment for Reducing Set-up Time
11 11

12 Investment for Reducing Set-up Time in the First Quater
In the first quarter, every company must invest 5,000 euros to reduce set-up time. After the first investment, it’s your company decision if to make more investment. 12 12

13 Investment in SAP to Reduce Set-up Time
Use T-code: FB50 G/L Account: (Weizen bank) D/C: credit Amount: 5,000 (first investment) G/L Account: (Lean manufacturing expense) D/C: debit Amount: ,000 (first investment) Cost center: $$ 13 13

14 Investment for Reducing Set-up Time in SAP
14 14

15 Investment for Increasing Production Capacity
Your company can make investment into production equipments to increase your production capacity. This may be your strategic weapon. When you start the simulation, you have 5 million euro production equipment with a production capacity of 21,000 boxes per day. 15 15

16 Increase Production Capacity
For an investment of 100,000 euros you can increase production capacity by 400 boxes per day. In order to obtain a daily capacity of 25,000 boxes, you need to invest 1 million euros. Formula for capacity improvement: Total daily capacity = 21,000 + (0.004 x additional machinery investment). 16 16

17 Investment for Improving Production Capacity in SAP
Use T-code: FB50 G/L Account: (Weizen bank) D/C: credit Amount: Your investment G/L Account: (Machinery & equipment) D/C: debit Amount: Your investment 17 17

18 Investment to Improve Production Capacity in SAP
18 18

19 4. No Starting Inventory. Each company should plan and complete the following steps before simulation: - Planning for finished products (T-code: MD61), - Run MRP (T-code, MD01), and - Convert purchase requisitions to Purchase orders (T-code:ME59N) - Convert planned orders to production order after raw and packing materials are available (T-code CO41)

20 Create Planned Independent Requirement for 6 Finished Products (MD61)

21 Create Planned Independent Requirement for 6 Finished Products (MD61)

22 Execute MRP

23 Create Purchase Orders from Purchase Requisitions (ME59N)

24 Convert Purchase Requisitions into Purchase Orders

25 Convert Planned Orders to Production Orders
After simulation started and you received required raw and packaging materials, your planning manager needs to convert planned orders to production orders (T- code: CO41). You can only release those planned orders to production orders with which the +in your inventory.

26 Collective Conversion of Planned Order (CO41)

27 Release Production Order

28 Release Production Orders (CO41)

29 5. Depreciation of fixed assets
Depreciation of fixed assets is assessed (ZCK11) Annual depreciation is calculated as 5% of building value and 10% of machinery value at 5 million.

30 5. Depreciation of fixed assets
Depreciation of fixed assets is assessed (ZCK11)

31 6. Fixed Mfg Overhead Fixed mfg overhead is assessed (T-code: ZCK11)

32 7. Inventory Storage Cost
Each team has 2 warehouse storage areas: Finished product (02) - space for 250,000 boxes Raw materials (88) - space for 250,000 kg of raw materials and space for 500,000 boxes and space for 500,000 bags Additional warehouse space can be rented: 100,000 boxes of finished products (or part € 200/step (less than € 0.01 per box per step) 100,000 kg (or part € 350/step (more expensive because it's raw food product) 100,000 boxes AND/OR bags (or part € 50 step The cost of additional storage will be automatically billed, and paid immediately.

33 Corporate Roles Designation
CEO Check Financial Statement Make investment for production Check summary sales report Check price market report Market & Sales Manager Check sales order report Check price market report Maintain and change market expenditure Change selling prices for finished goods 33 33

34 Corporate Roles Designation
Production and Planning Manager Create planned independent requirement Run MRP Release production orders Modify BOM Monitor production schedule Check product costs, including overhead costs Check raw materials cost per production order MM Manager Convert purchase requisitions to purchase orders Track PO report Check MRP results Check individual stock level Check inventory report 34 34

35 Tasks for the Manufacturing Case Study
No Roles Functions Transaction Code 1 CEO Check financial statement F.01 Create GL Post (Investment) FB50 Check Price market report ZMarket Check Summary sales report ZVC2 Sales & Marketing Manager Check Sales order report ZVA05 Maintain marketing expense ZADS Change selling price for FG VK32 3 Production & Planning Manager Create planned independent Requirements MD61 Run MRP MD01 Release production orders CO41 Modify BOM ZCS02 Monitor production schedule ZCOOIS Check finished product cost ZCK11 Check RM cost per Prod. order ZKSB1 4 MM Manager Automatically generate POs ME59N Track PO report ZME2N Display MRP results MD07 Warehouse Management Check stock level MD04 Check Inventory report ZMB52 2

36 Rules of the Game Each round will be of 30 steps (approx 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

37 Participant’s Job Aid & Menu for Mfg Extension

38 Participant’s Job Aid & Menu for Mfg Extension

39 Game Layout 30 steps 30 min

40 Login Information Client 155 Login : ext_$# $ = Team,
# = User 1 to User 4 Password: ERPSIM

41 User Menu for Mfg Extension

42 User Menu for Mfg Extension


Download ppt "Case Study 4: Operate a Manufacturing Company (Extension)"

Similar presentations


Ads by Google