Enterprise Resource Planning (ERP)

Project Group
Ali KODAL Cagdas GUR Dalvin EBIWARE Ferdad MOTARJEMI Mustafa Gndeer

 What is Enterprise Resource Planning (ERP)? How ERP systems are implemented within companies?
Companies before ERP Systems
Companies after ERP Systems
EMU Real Case Example 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

COMPUTER INTEGRATED MANUFACTURING - CIM

"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."

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

I n c r I e n D a c e s D r c e e I e r d c n I a e r c n s a e r c e s a e r d e s a e d e s a d e s d e d

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 Responsibles Confirmation 9. Transfer to Rectors Office

10. Rectors Secretary- Confirmation

11. Confirmation Transfer, to Purchase Department Secretary 12. Purchase Responsible personal commends with Purchase:

Example: Before ERP Systems

Transfer to Accounting Office

Secretarys New printer application

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

SECRETARY REQUEST OF NEW HP PRINTER SAP SYSTEM ONLINE HEAD OF DEPARTMENT CONFIRMATION

CONFIRMATION

SAP SYSTEM ONLINE PURCHASEING MANAGER

FINANCIAL ACCOUNTING

SAP SYSTEM ONLINE PURCHASE RESPONSIBLE

SAP SYSTEM ONLINE FINANCE DEPARTMENT

CONFIRMATION

SAP SYSTEM ONLINE RECTORS OFFICE

CONFIRMATION

PURCHASE OF NEW HP PRINTER

SAP SYSTEM ONLINE PURCHASE DEPARTMENT

In this real case there the benefits of the 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

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

Open program Request Form is selected for Printing Office. secretary receives a code from program Secretary confirms on the SAP program

signed

Printing Process Flow Diagram

Printout Process of IE Department

Secretary of the department opens SAP page.

User Password Sign In

1. security step 1 is for IE DEPT 2. security step 2 is for Administrator.

EMU Information Department

Purchasing & Inventory Control Management

Create Request Editting Confirmation Request List Printout Managerial Unit Request

After Second step menu is shown

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

Printing Department Request Form Subject of Request Printout

User

Materials will be selling in bookstore

Work type

Next

Name Surname
Definitions

Phone

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 MODULE

Material Management

FI MODULE
CO MODULE AA MODULE FM MODULE

Financial Management
Controlling Operations Asset Accounting 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

supplier

Distribution

vendor

production

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 SAP Market Share 15.6

Peoplesoft
SAP; 15,6 Peoplesoft; 4,9 Oracle ; 4,8 Baan; 3 Others ; 59 CA; 3 JDE; 2,2 SSA; 2,1 GEAC; 2 IBM; 1,8 JBA; 1,7

4.9
4.8 3.0 3.0 2.2 2.1 2.0

Oracle Baan CA JDE SSA GEAC

IBM
JBA Others

1.8
1.7 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

PASSANGER
MAINTENANCE

SAP CENTER

EMPLOYEE

FUEL

PASSANGER
PASSANGER

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 SYSTEMs first step

PM
MM MODULE CO-CCA MODULE

Plant Maintanance
Material Management Controlling Operations

FI MODULE

FI-AA MODULE FM MODULE

Financial Management
Asset Accounting Funds Management

HR-PA

Human 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-CM TR-TM HR-PD CO-PA Data Adjustment in Cash Management Treasury Management Human Resources Performance Evaluation Profitability Analysis

WF

Work 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

MM Information System

MM

Material management system is feed by the information that comes from;

- purchasing information system and, - stock control

OUTPUTS of ERP Systems

DOCUMENTS
Printer
Proposal Orders approval

Fax

Delivery plans
Shipping papers Warehouse check list Material document

Telex

Mail

Accounting document
Delivery/shipping document Invoice Dept & credit doc.

Teletext

EDI

SAP Packet Providers

SAP Packet Providers