1. Enterprise Operations Overview & Strategic Planning EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013 Enterprise Operations Overview & Strategic Planning EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013

2. Enterprise Operations Overview EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013

3. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.3 Enterprise Operations Planning OP Execution Execution Detailed OP Planning High-Level OP Planning Forecasting Sales and Operations Planning Demand Management MPSMRP Sales Information System CO/PA Manufacturing Execution Sales Process Procurement Process Strategy Planning - Vision - Goals & Objectives - Strategy - Product Portfolio and Roadmap Warehouse Management

4. Enterprise Strategy Planning EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013

5. Enterprise Planning Process Business Process platform

6. Enterprise Planning stages and Levels Source: Freyburger Planning Levels Top Management Division Cost Center Planning Stages Vision, Goals, & Milestones Actions & Quantities (cost, time, & peformance) Approval & Rejection Budget Finance Approval Controlling

7. Factors which impacts Business Planning

8. Business Planning Process

9. Planning Areas ◦Finance ◦ Cost center planning ◦ Assets planning ◦ Profitability planning ◦ Liquidity & investiment planning ◦Demand and Production ◦Marketing & Sales ◦Maintenance ◦Human Resources ◦Etc.

10. Linking the Component Plans Source: Gluchowski, Gabriel, Dittmar Revenue Plan Sales Plan Production Plan price trend bill explosion Financial Plan Investment Plan Capacity Plan Personnel Plan Procurement Plan Cost Projection Overhead Costs Planned Profit interest amortization machine hourly rate personnel costs costs of supply work shedule rate of turnover

11. Planning Example of Global Company

12. Intra-Enterprise Systems Integration Vertical Integration Corporate Planning Accounting Supplier Management, Production Planning, Cost Planning, … Supplier Accounting PurchasingProd.SalesPersonnel Warehouse Accounting Customer Invoices Employee Salary Administration II: Amount-Oriented Processing Administration I: Value-Oriented Processing Disposition and Planning Analysis and Controlling Strategic Enterprise Management Horizontal Integration Source: Mertens, P., Meier, M.: Integrierte Informationsverarbeitung (2009), 1. Top Management Middle Management Lower Management

13. Enterprise Strategy Pyramid

14. Enterprise Strategic Planning SAP Implementation EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013 Enterprise Strategic Planning SAP Implementation EGN 5622 Enterprise Systems Integration (Professional MSEM) Fall, 2013

15. R/3 SAP Module View Integrated Solution Client / Server Open Systems Financial Accounting Controlling Fixed Assets Mgmt. Project System Workflow Industry Solutions Production Planning Sales & Distribution Materials Mgmt. Plant Management Quality Maintenance Human Resources

16. SAP Access Navigation

17. SAP BPI Client, Userid, Password SAP R/3 Exercises Client: 615 Application server: madrid.cob.csuchico.edu System number: 01 System ID: MDR Userid: bpi-025 to bpi-047 Initial password:

18. Enterprise Structure Plant (P0_ _) Client (615) Chart of Accounts (C0_ _) Company Code (0 _ _) Fiscal Year Variant (K1) Credit Control Area (C0_ _) Purchasing Org. (P0 _ _) Purchasing Group (0_ _) Shipping Point (S0_ _) Sales Org. (S0 _ _) Distribution Channel (RE/WH) Division (01) Sales Area Controlling Area (C0 _ _) SL10SL20 SL30 Work center (WC0 _ _) Cost centers

19. Check Company Code/Chart Account:

20. Check company code/Fiscal Year Variant

21. Check Credit Control Area

22. Check Plant

23. Check Storage Locations

24. Check Purchasing Organization

26. Check Financial Accounts

27. Check Vendor List

28. Check Standard Hierarchy of Cost Center

29. Exercises: 1.Suppose you purchase raw materials from your vendor Pen Parts. Please list required quantities and total costs of raw materials for making 10,000 of EPN0_ _. 2.What is your work center? - Number of individuals - Capacity utilization rate - Total capacity of your work center 3.How many hours are required to make 10,000 pieces of EPEN0_ _? What is the difference if the efficiency level is 85%? (Hint: for setup time, you only need to count it when you start to do the first EPN0 _ _. 4.If the setup and labor cost is $20/hour. What is the total manufacturing cost for making 10,000 pieces of EPEN0_ _. (Hint: Mfg cost = raw materials cost + lab cost)