Karl E. Kurbel Enterprise Resource Planning and Supply Chain Management Functions, Business Processes and Software for Manufacturing Companies < ) Springer
Contents 1 Business Information Systems 1 1.1 The Evolution of ERP and SCM 1 1.2 Business Application Software 3 1.3 Business Processes 8 1.3.1 Processes Versus Functions 8 1.3.2 Basic Concepts of Business Processes 8 1.3.3 Graphical Notations 9 1.4 Production Planning and Control 10 1.4.1 Tasks of Production Planning and Control 11 1.4.2 Production Planning Goals 13 1.4.3 Benefits and Shortcomings of Production Planning 15 1.5 Coping with Mass Data 16 2 MRP: Material Requirements Planning 19 2.1 Master Data for MRP 20 2.1.1 Parts and Product Structures 20 2.1.2 Product Variants 28 2.1.3 More Master Data 32 2.1.4 Dealing with Missing Data 33 2.1.5 A Note on "Numbers" 35 2.2 Master Production Planning 36 2.2.1 Planning for Anonymous Demand 36 2.2.2 Planning for Customer Orders 39 2.3 Planning Primary and Secondary Requirements 42 2.3.1 Consumption-Driven Planning 44 2.3.2 Requirements-Driven Planning 49 2.3.3 MRP in Make-to-Order Production 56 2.4 Outcome of Material Requirements Planning 59 3 MRP II: Manufacturing Resource Planning 61 3.1 Master Data for MRP II 61 3.1.1 Routings... 61 3.1.2 Operating Facilities 63 3.1.3 More Master Data 64 3.1.4 Resource Lists 65 ix
X Contents 3.2 From Closed Loop MRP to MRP II 66 3.3 Lead-Time Scheduling 68 3.3.1 Backward and Forward Scheduling 69 3.3.2 Determining Buffers Through Double Scheduling... 71 3.3.3 Lead-Time Reduction 72 3.3.4 Lead-Time Scheduling in Make-to-Order Production 75 3.4 Capacity Load Leveling 76 3.4.1 Working with Capacity Profiles 77 3.4.2 Capacity Planning in Make-to-Order Production... 80 3.5 Order Release 81 3.5.1 Availability Check 82 3.5.2 Creating Documents 84 3.5.3 Order Release in Make-to-Order Production 84 3.6 Shop-Floor Control 85 3.6.1 Detailed Scheduling 85 3.6.2 Advanced Scheduling Methods 87 3.7 Excursus: Product Costing 89 3.7.1 Make-to-Stock Products 89 3.7.2 Make-to-Order Products 93 4 ERP: Enterprise Resource Planning 95 4.1 The Need for Integration 95 4.2 Mapping the Organization 97 4.2.1 Accounting 98 4.2.2 Materials Management and Production 99 4.2.3 Sales 101 4.2.4 Human Resources 103 4.3 Business Processes 105 4.3.1 Proc urement 105 4.3.2 Order Fulfillment 106 4.3.3 Production 109 4.3.4 Recruitment 111 4.3.5 Other Processes 112 4.3.6 Process Integration 114 4.3.7 Modeling with a Tool 118 4.4 ERP Systems 119 4.4.1 The ERP Market 119 4.4.2 Selecting an ERP System 120 4.5 ERP and the Internet 124 4.5.1 Accessing an ERP System 125 4.5.2 E-Procurement 126 5 Case: SAP ERP 127 5.1 The Evolution of SAP ERP 127 5.2 Functionality of SAP ERP 128 5.2.1 Procurement and Logistics Execution 129 5.2.2 Product Development and Manufacturing 131 5.2.3 Sales and Service 132
Contents xi 5.2.4 Financials 132 5.2.5 Human Capital Management 133 5.2.6 Analytics 134 5.2.7 Corporate Services 135 5.3 Implementing Business Processes with SAP ERP 137 5.3.1 The Model Company: Global Bike International... 138 5.3.2 Procurement 139 5.3.3 Order Fullillment 144 5.3.4 Production 151 5.3.5 Representing Organizational Units in EPCs 156 6 ERP System Implementation 159 6.1 Implementation Process and Methodology 160 6.1.1 Implementation Methodology 160 6.1.2 AS AP: A Vendor-Specific Process Model 160 6.1.3 Implementation Cost: Total Cost of Ownership... 165 6.2 Customizing 167 6.2.1 Forms of Customizing 167 6.2.2 Disadvantages of Individual Solutions 169 6.3 Vendor-Specific Customizing: SAP ERP 170 6.3.1 General Settings 172 6.3.2 Organizational Structures 172 6.3.3 Process and Functional Settings 174 6.3.4 UserExits 180 6.4 SAP ERP Technology 181 6.4.1 History and Background 182 6.4.2 SAPNetWeaver 184 7 Manufacturing Systems 189 7.1 Manufacturing Execution Systems 189 7.1.1 Finite Capacity Scheduling: Manufacturing Leitstand 193 7.1.2 Production Data Acquisition: PDA, MDA, and TDA 200 7.1.3 Quality Management 205 7.2 Engineering Information Systems 206 7.2.1 CAx Systems 206 7.2.2 PDM: Product Data Management 216 8 SCM: Supply Chain Management 221 8.1 Motivation for Supply Chain Management 221 8.2 Coordination and Cooperation 224 8.2.1 Industrial Dynamics 224 8.2.2 The Bullwhip Effect 227 8.2.3 Cooperation and Trust in Supply Chains 229 8.3 Modeling Intercompany Business Processes: SCOR Model... 232 8.3.1 Overview 233 8.3.2 SCOR Processes 233 8.3.3 Process Decomposition 234 8.3.4 Modeling a Supply Chain 236 8.3.5 Supply Chain Performance and Risks 239
xii Contents 8.4 Tasks of an SCM System 241 8.4.1 Strategie Level 241 8.4.2 Planning Level 243 8.4.3 Execution Level 244 9 SCM Data Structures and Advanced Planning 249 9.1 Data Structures for Supply Chain Management 249 9.1.1 Master Data 249 9.1.2 Transaction Data 255 9.1.3 Pegging 256 9.2 Advanced SCM Planning Approaches 259 9.2.1 APS: Advanced Planning and Scheduling 259 9.2.2 Planning Locations 261 9.2.3 Planning Inventory and Orders 264 9.2.4 Planning Supply Networks 267 10 Case: SAP SCM 273 10.1 SAP Advanced Planner and Optimizer 274 10.1.1 Supply Chain Engineer, Cockpit, and Alerts... 275 10.1.2 Demand Planning 276 10.1.3 Supply Network Planning 279 10.1.4 Production Planning and Detailed Scheduling (PP/DS) 290 10.1.5 Global Available-to-Promise (Global ATP).... 294 10.1.6 Transportation Planning and Vehicle Scheduling 297 10.2 Core Interface (CIF) 297 10.3 Other SAP SCM Modules 299 10.3.1 Supply Network Collaboration 299 10.3.2 Forecasting and Replenishment 303 10.3.3 Event Management 304 10.3.4 Extended Warehouse Management 304 11 Current and Future Trends 307 11.1 Service-Oriented Architecture 307 11.2 On-Demand Solutions 310 11.2.1 Software-as-a-Service and Cloud Computing... 311 11.2.2 ERP on Demand 313 11.2.3 Case: SAP Business ByDesign 314 11.3 Alternative Approaches 319 11.3.1 Open-Source ERP 319 11.3.2 Vision: Federated ERP 320 11.4 The "Internet of Things" 322 11.4.1 Background and Technology 323 11.4.2 RFID Applications in Business 328 11.4.3 Business Benefits and Challenges 332 Appendix: Data Models 337 References 345 Index 351