ERP Exam 2
Make to Order
- need to fill customer order
Make to stock
- need to increase inventory
DC10 Hypermarkets
-Buy only large boxes (1 kg) -Payment delay of 20 steps -More sensitive to price -Less sensitive to advertising -Will have a stronger preference for 3 particular products during the simulation
DC12 Grocery chains
-Buy small boxes (0.5 kg) and large boxes (1 kg) -Payment delay of 10 to 15 steps -Will have a stronger preference for 4 particular products during the simulation
Bill of materials (BOM)
-Identifies components needed to make material -Defined at plant level - each plant could have own -Used in: material planning, production, & procurement
Stock Transport Orders (STOs)
-In the STO process one plant "purchases" the materials and another plant "sells" them. -Review the scenario in chapter 9 involving an STO
Work Centers
-Location where value added work needed to produce materials is carried out -Machines, group of machines, production line, person
Conditions
-Pricing, discounts, freight
Purchasing Group
A buyer or group of buyers responsible for certain materials or groups of materials -internal to the company or external
Plant
A location... -That holds valuated stock (for distribution) *Can be assigned to one CC only *A CC can have many plants
Storage Location
A place, within a plant, where materials are stored *A plant must have at least one storage location *A storage location can belong to only one plant
Goods Movement
A transaction that causes a change in stock (value or status) Categories of Goods Movement Specific Movement types
Organizational Data
Client Company code (CC) Plant Storage location (S Loc) Purchasing organization (P Org) Purchasing group
Vendor Master
Data needed to do business with vendors Data needed to execute transactions related to vendors (along with org data)
Types of Manufacturing
Discrete Repetitive Process
Three models for Purchasing Organization...
Enterprise-Level Company-Level Plant-Level
Goods Receipt
From vendor or production process Increase in quantity and value of stock
What is the first step in the procurement process where accounting documents are created?
Goods Receipt
Purchasing Organization
Identify and select vendors Negotiate general conditions of purchase and contracts for one or more plants or companies. Determine pricing conditions
Reporting
Instance level reporting (status) Process level reporting -Lists and reports -Purchasing Information System
Production Strategies
Make to stock Make to Order
Master Data
Material Master Vendor Master Purchasing info record Conditions
Process
Not manufactured in individual units - hard to tell components once mixed Paint, soft drinks
ERPsim 6 products
Nut, Raisin, blueberry, strawberry, original, and mixed
Stock Transfer
Physical movement of material between storage locations
What happens if independent requirement (forecasting) is updated to 0 and MRP is rerun?What stays and what disappears?
PldORd disappears Stock/PrdOrd Stays
ERPsim: how is the marketing broken up?
Product and geographic region
Purchasing Info Record
Relationship between 1 vendor and 1 material Discounts, free goods, conditions, pricing
Sales Organization
Responsible for distributing goods and services *Highest level of aggregation in sales-related reporting A company code must have at least one sales organization
Distribution Channel
Responsible for getting materials to customers Wholesale sales, retail sales, Internet sales *A sales organization must have at least one distribution channel
Transfer Posting
Results in a change in material status
Sales Area (3parts)
Sales organization Distribution channel Division
Basic Fulfillment Process
Sales- recieve customer purchase order and create sales order Warehouse- Prepare shipment (pick and pack) and send shipment Accounting- Create and send invoice and receive payment
Repetitive
Same or similar products are produced over long period of time
Component Assignment
Specifies relationship between BOM & routing
Instance level reporting (status)
Status of a Requisition, Purchase Order
Product Routing
Steps necessary to produce a material -Operations -Sequence -Work Center -Time
Discrete
Tangible products - Batches of different materials
Goods Issue
To sales order or internal consumption Decrease in warehouse stock
Company code to company code transfer
Transfer between 2 plants in different company codes
Plant to Plant transfer
Transfer between 2 plants in same company code
Storage location to storage location transfer
Transfer between 2 storage locations within same plant
Division
Used to consolidate materials with similar characteristics *A sales organization must have at least one division *Can be assigned to multiple sales organizations
3-way Invoice Verification for Payment
Vendor invoice Purchase order Material document
Process Integration
Walk through the 2 scenarios that we walked through in class (in the chapter slides) Understand how the processes are integrated together and how to a certain extent and be able to explain this
Basic Procurement Process
Warehouse- Create purchase requisition Purchasing- Create and send purchase order Warehouse- Receive materials Accounting- receive invoice and send payment -requisition is needed for PO
Basic Production Process
Warehouse- request production Production- authorize production Warehouse-issue raw materials Production- create product Warehouse- receive finished goods
Stock Requirements List
What is PldOrd? -Planned Order What is POitem? -Purchase Order What is IndReq? -Materials Planning (MRP) What is PrdOrd? -Production Order What is Stock? -Current Stock
