IS350 Final

Hammer's Observations

"You have to integrate internally in order to integrate externally" "The walls between enterprises dwarf the walls within enterprises" "ERP, a piece in a larger puzzle in SCM"

S/4 HANA

-Is a business suite built on SAP's proprietary operational database system and in-memory computing platform HANA -Will enable new business models such as the Internet of things, digital transformation and big data

Project Charter

-Is a document that formally recognizes the existence of a project and provides a summary of the project objectives and management • Authorizes the project manager to use organizational resources in order to complete the project

Processes in PP

-Material Planning-Production Planning-Manufacturing Execution

Big Data Definitions

-Refers to data sets whose size is beyond the ability of typical database software tools to capture, store, manage and analyze (Trnka, 2014) - Is data whose scale, diversity, and complexity require new architecture, techniques, algorithms, and analytics to manage it and extract value and hidden knowledge from it

SAP HANA to S/4HANA

1. Built on SAP HANA - business suite 2. ERP, CRM, SRM,SCM, PLM co-deployed 3. Actual data (25%) & historical (75%) 4. Predict, recommend & simulate 5. SAP HANA cloud platform extensions 6. SAP HANA multi-tenancy 7. All data: social, text, geo, graph processing 8. Choice of deployment: on-premise, cloud & hybrid

Project Initiation Phase

1. Business case (project charter) 2. Scope 3. Implementation strategy 4. Selection of methodology, hardware/software vendors and consulting partners

Levels of IS/IT Implementation Failure

1. Corresponding failure: Don't meet design objectives (budgetary, efficiency, productivity...) 2. Process failure: Not on time &/or not within budget 3. Interaction failure: System not used by users as designed 4. Expectation failure: Return not what stockholders expected 5. Strategic/competitive failure

Transition Approaches

1. Direct Cutover: Old then new 2. Parallel Transition: New alongside old 3. Phased Transition: new implemented in segments 4. Pilot Transition: old and new together

Vendor selection 7 way approach

1. In house development 2. In house sysytem with vendor supplements 3. Best of breed 4. Customized vendor system 5. Selected vendor modules 6. Full vendor system 7. Cloud

IT Implementation - 6 Stage Model

1. Initiation -scan organizational problems/opportunities and IT solution is undertaken 2. Adoption -ensure to get organizational backing for implementation of the IT application 3. Adaptation -IT application is installed and organizational process is revised and developed 4. Acceptance -organizational members is induced to commit to IT application usage 5. Routinization- usage of IT application is encouraged as a normal activity 6. Infusion -increased organizational effectiveness is obtained by using the IT application

Accelerated SAP (ASAP) Implementation Roadmap or Methodology

1. Project preparation 2. Business blueprint 3. Realization 4. Final preparation 5. Go live and support 6. Continuous change

Solution Manager

A _____________ is a set of tools and functions that help manage software solutions in the R/3 system product family throughout their entire life cycle from initial implementation through operations and continuous improvement.

SAP NetWeaver

A single integration platform •Leverages core SAP's strengths: Proven, missions critical •Integrated out of the box: Low TCO •Delivers the foundations for all application needs: Complete •Built to extend SAP and to integrate non-SAP: Open, standards-based

ERP

An organization that wants to connect its systems with its partners and suppliers needs to have a robust ___________ system in place?

SCM

As ERPs matured, they were found to have significant overlap with ___________ systems?

Implementation Strategies

Big bang: 15 months 41% Phased rollout by site: 30 months 23% Phased rollout by module: 22 months 17% Mini big bang: 17 months 17% Phased rollout by module & site: 25 months 2%

Supply Chain, SAP & RFID Opportunities

Buy processes: -Kanban reordering process -Vendor product tagging -Receiving process - Automating PO goods receipt / Pallet content verification -Tag data included on ASN (shipment notification) for goods receipt Sell processes: Pick I pack material — REID identification I location -Auto run pick transaction when move through pick work station -Automated shipment processing -Auto run shipment transaction — ship out of ERP system Make processes: Work-in-process tracking and auto feedback -Inventory location I identification tracking -Track fixtures -Track tooling -Finished goods product tagging -Employee location tracking I monitoring -Tagged material auto identifies required tooling & fixtures Warehousing: Inventory location I identification tracking -Auto pick I ship I receive transactions -Auto notification to stock retail store shelves based on usage Transportation: Carrier material tracking & identification -Vehicle tracking and identification -Use REID tag sensors to track temperatures of perishable food products in-transit

Planning phase

Deciding who and when to hire, creating a budget, and setting up ways to measure the project outcomes occurs during this specific phase of implementing an ERP system. When?

People

ERP system implementation failures are often caused by lack of attention to the business processes, technology functionality, and ___________ components.

Master Production Schedule

Enables marketing to make legitimate delivery commitments to warehouse customers.

Process Integration

From one of SAP NetWeaver components, _____________ can be used to integrate any non-SAP and SAP system.

SAP HANA and S/4 HANA

HANA = High performance analytic appliance, uses in memory database, processes transactions, uses historical, operational, and many types of data. (Business, technology, analytics, and statistics)

SAP HANA

Is SAP's ERP solution for big data

Configuration

Is best known the process of selecting and matching the available SAP business process with a company's business requirements and workflow process.

Big Data

Is data whose scale, diversity, and complexity require new architecture, techniques, algorithms, and analytics to manage it and extract value and hidden knowledge from it.

SAP HANA

Is the key product to SAP's integrated strategy for an "in-memory database"

5 TCODES

MM01- Create Material F110- Parameters for Automatic Payment VA02 Change Sales Order KSB1 Cost Center: Actual Line Items MD04- Display Stock/Requirements Situation

Realization phase

Most resource consuming phase of ASAP implementation

Master Production Schedule (MPS)

Provides basis for•Making good use of manufacturing resources•Making customer delivery promises•Resolving tradeoffs between sales and manufacturing•Attaining strategic objectives in the sales and operations plan (SOP)•Converts into specific schedule for each item

Buy, Sell, Make, Warehousing, Transportation

SAP and RFID technologies facilitate SCM opporotuniteis for _________, _________, _________, _________, and __________ processes.

Integrated Big Data Strategy

SAP is attempting to create an integrated approach for companies to perform all the following operations in one environment •Analytics •Make big data operational •Support applications for high resolution management

Big Data Strategy

SAP is attempting to create an integrated approach that allows companies to perform all the following operations in one environment•Analytics•Make big data operational•Support applications for high resolution management

Money, Goods, and Information

SCM's 3 major focus

Implementation guide (IMG)

The ____________ is a component of the SAP R/3 system that provides detailed steps for configuring and setting the application modules to meet specific business requirements.

ASAP Roadmap

The _____________ provides a framework or methodology for carrying out an R/3 system implementation with its primary purpose being the management of the customization process to ensure that all required activities have been completed for a successful implementation.

General data, accounting data, sales area data

The data in the customer master are divided into the following three segments:

Goods issue

The shipping step concludes with

RFID

The technology that is becoming and increasingly efficient tool for tracking items through a supply chain is _____________?

SaaS, PaaS, IaaS

Three major cloud computing modules

Big Data 4 V's

Volume, Velocity, Variety, and Veracity

Bill of Materials, Inventory, MPS

What are major inputs to MRP process in production planning?

Cloud computing

What is defined as the delivery of a software product to a user via the internet?

Receipt of payment from the customer

What is the final step in the SD (fulfillment process)?

Sales organization, distribution, division

What three organizational elements/structure form a sales area?

MD04

When using an ERP system, which of the following is a key tool (T-Code) to review the current inventory and upcoming productions orders for a specific product?

Sales and Distribution

Which application module helps to optimize all the tasks and activities carried out in sales, delivery, and billing?

Sales and Distribution

Which of the following integrated business processes would include the step that does the issue pick, pack, and ship documents for the warehouse?

Business area

Which of the following is not an organizational element of the sales and distribution view?

Receive customer inquiry, receive customer purchase order, create sales order, prepare ad send shipment, create and send invoice, receive payment

Which of the following is the correct order of the sales and distribution process?

Sales organization, distribution channel, division

Which on of the following combinations of organizational structures is included in the definition of a sales area?

Division

Which or the following organizational levels is associated with a companies product line?

SAP HANA "Business Suite"

Will enable new business models such as the internet of things, digital transformation and big data.

Implementation Guide

provides links to all customizing activities

SAP NetWeaver KM

• "It is impossible to centralize all the information in a single repository" • Knowledge Management provides- One search capability- One unified navigation scheme- One look and feel- One access to KM services on top of distributed repositories • KM consists of- Content Management- Search and Classification

ERP Trends

• Backward, forward and upward integrations • Business Intelligence (BI) • SAP R/3 & RFID Integration • SAP NetWeaver - A single integration platform • Big data, in-memory computing, and SAP HANA & S/4 HANA

Business Intelligence

• Introduced by Gartner Group in 1989 • Is a process for increasing the competitive advantage of a business by intelligent use of available data in decision making • Is a term that combines architectures, applications, and databases • Terms like business performance/process management(BPM), corporate performance management(CPM), and business activity monitoring(BAM) are a part of BI • OLAP is a tool in ERP systems with DW, data mart, data mining

Radio-Frequency IDentification (RFID)

• Is generic term for technologies which use RF waves to identify, track or categorize any object • Is fast, reliable, and does not require physical sight or contact between reader and the tagged object

Program, Project, Project Manager & Project Sponsor

• Program - a group of projects managed in a coordinated way to obtain benefits and control not available from managing them individually -Project - a temporary endeavor undertaken to create a unique product, service, or result •Program manager - provides leadership and direction for the project manager heading the project within the program •Project sponsor - provides the direction and funding for a project

ASAP Phase 2: Business Blueprint

•Assess customer requirements through the interviews, questionnaires, and models of the Business Blueprint •Gap analysis •Provide training for project team •Install a development system •Review the Business Blueprint

SD Delivery Scheduling

•Automatic scheduling of essential shipping activities•Calculated using defined activity times•Resulting in scheduled activity dates•Determined using backward and forward scheduling rules

ERP Critical Success Factors

•Clear understating of strategic goals •Top management commitment •Empowered teams with ability to make decisions •Strong project management leadership •Adaptable organization to change •Technical functionality (data, currency...) •Education & training •Multisite issues resolved

SD Sales - Sales Order

•Core of customer order management•No impact to G/L•Reference existing documents•Copies key information from master data •Standard functions-availability check-MRP updating-pricing-credit check-delivery scheduling-export control-shipping & route determination

Material Requirements Planning (MRP)

•Determines timing and amount of raw material orders•A set of techniques utilizing-Bill of Material (BOM)-Inventory data (current status & lead times)-MPS to calculate requirements for raw materials, components, and subassemblies•A time-phased planning tool with a specific algorithm for quantity & capacity by a given day, week or month

ERP & BI

•ERP offers opportunity to store vast volumes of data•Data can be mined•Business/data analytics

Cloud Computing Objectives

•Elasticity: Ability to scale virtual machines resources up ordown •On-demand usage: Ability to add or delete computing power (CPU, memory), and storage according to demand •Pay-per-use: Pay only for what you use •Multitenancy: Ability to have multiple customers access their servers in an isolated manner

MRP Objectives

•Ensure availability of - Raw materials(RM) for production in time- Finished goods (FG) for customers when in demand•Maintain the lowest possible RM and FG•Plan purchasing, delivery & manufacturing schedules •Answers 3 questions-What items are required?-How many are required?-When are they required?

ASAP Phase 1: Project Preparation

•Explain roles and procedures •Prepare the Project Charter •Define schedule, budget, and resources •Provide initial training for project team •Define technical requirements •Prepare executive kickoff meeting

MM Purchase Order (PO)

•External document•A contractual agreement between the buyer and seller for a good or service•Specifies the conditions of the agreement - i.e. quantity, price, and delivery date

MM Vendor Master Data Details

•General Data-Client-level data: Applies to all company codes and purchasing organizations-Name, address, phone numbers, language •Accounting data‒ Currency used, payment terms (i.e., ZB01)‒ Reconciliation account (a vendor is a creditor) •Purchasing data-Data important for purchasing (contact persons, delivery terms)-Maintained at purchasing organization level

Master Production Schedule (MPS)

•Gives production, planning, purchasing, and management of the information to optimize manufacturing•Provides the basis for carrying out detailed material requirements and capacity planning•Enables marketing to make legitimate delivery commitments to warehouse and customers •Supported production strategies in ECC 6.04 include-Make-to-Stock-Make-to-Order-Assemble-to-order

ASAP Phase 3: Realization

•Implement all the business process requirements based on the business blueprint •Customizing- Customize the "Baseline" system, which covers 100 % of the organizational structure and 60% of all daily business operations- Check that this customizing realizes your business processes (first integration test) •Final Test- Check other business processes which are indirectly affected- Design, develop, and test interfaces, reports, and data conversions

Big Bang

•Implementing all targeted functionality (modules) at same time •Makes sense in ERP if carefully planned •Advantages:- Integrated configuration and testing- Better opportunity for changing organizational structure •Disadvantages:- Extreme change- Complex project management- Dangerous

Phased

•Implementing targeted functionality in phases- By module, geography, or business unit- Especially good for large organizations •Advantages:- Less disruptive to business- Projects are easier to manage •Disadvantages- User buy-in wanes- More testing and integration issues

SD Master Data

•Information about customers, materials and business partners•Support the business environment•Support sales order processing

SD Delivery Document

•Initiates the delivery process•Control mechanism for the process•Changes to delivery are allowable - products, quantities

SD Shipping - Delivery Plan

•Initiates the shipping process•Maintains status of each processing design•Re-confirms: availability, credit, foreign trade, delivery scheduling•Facilitates transportation planning

What is Cloud Computing?

•Is a general term used to describe a new class of network based computing that takes place over the Internet - A step on from utility computing- A group of integrated and networked hardware, software and Internet infrastructure- Internet for the communication and transport of hardware, software and networking services to clients•Hides the complexity and details of the underlying infrastructure from users and applications by providing very simple graphical interface

Solution Manager

•Is the SAP platform that delivers the ASAP methodology- Seeks to standardize and expedite the typical R/3 implementation- Is used in the configuration process •Has evolved from Accelerated SAP (ASAP) •Can be created from scratch or from a company's standard methodology •Is a set of tools and functions which help manage software solutions throughout their entire life cycle- Runs in a separate system using the SAP web application server platform connected to other SAP systems are connected

MM Vendor Master Data

•Master records must be created for every vendor-Centralized data for both MM and FI in MM and FI modules, or centrally •Is pulled from database when creating PO's

MM Master Data

•Material master (or service master) -step 1 •Vendor master - step 2•Purchase information record - step 3

MM Components & Processes

•Material requirement planning (MRP) •Material procurement •Inventory management •Invoice verification •Material valuation (i.e., standard price, moving average price.....) •External service management for externally procurement

PP Master Data

•Material •Bill of Materials (BOM) •Routing •Work Center •Product Group

Contents of Project Charter

•Mission of project (main goals) •Project objectives (measurable desired outcomes) •Business drivers (environmental forces driving project) •Issues, barriers, or restraining forces that may inhibit the project's success •Project measures (how organization knows when project is completed and/or making progress)

SAP NetWeaver Core Capabilities

•People integration - The organization to bring people together and help them work more efficiently •Information integration - The organization can bring together information from a variety of locations and have it make sense in the context of what your folks do everyday •Process integration - Coordinating the flow of work across departments, divisions, and between companies

ASAP Phase 4: Final Preparation

•Planning for the going live data •Training end users •Testing: integration, volume, and stress •Establishing an internal Help Desk •Cutover to production environment

NIBCO's SAP Implementation Methodology

•Preparation- Final Project plan- scope and cost- Project management and tracking tools developed •Analysis- Document "as-is" process as "to-be" processes- Identify process improvements and changes to fit R/3- Documentation of inputs, outputs, triggers, business activities (processes), roles, change categories, training requirements •Design- Configure R/3- Develop training materials- develop operational, Management and business prototypes •Implementation- data clean up- Determine customization needed across plants

MPS Inputs

•Production plan•Forecast•Customer Orders•Additional independent demand•Inventory•Capacity constraints

CO Master Data

•Profit Center-Responsible for revenue generation and cost containment-Evaluated on profit or return on investment -Enterprises are commonly divided into profit centers based on•Region•Function•Product •Cost Center-Responsible for cost containment, not responsible for revenue generation•One or more value-added activities are performed within each cost center.•Unit that is distinguished, for example, by area of responsibility, location, or type of activity-Copy center-Security department-Maintenance department

Project Staff

•Project manager •Solution experts •Process experts •Technical experts •Geography experts •Change management

IT Implementation

•Refers to a team's strategy and actions for a successful system and contribution to the organization •Is the extent of alignment of the IT and the organization that operates it •Alignment refers to- The requirements of IT are matched by capabilities of the organization- IT mission, objectives and plans are supported by the business mission, objectives and plans

Cloud Computing Characteristics

•Remotely hosted: Services or data are hosted on remote infrastructure •Ubiquitous: Services or data are available from anywhere •Commodified: The result is a utility computing model similar to that of traditional utilities, like gas and electricity •Pay for what you would want!

Business Blueprint

•Requirements gathering- Business Scenario/Process Structure• Organization Structure, Master Data• Business Processes •Arranged by levels- Organization Structure- Confirm Project Scope- Business Scenarios/Processes- IMG Processes and Master Data Configuration

On-Line Analytic Processing (OLAP)

•Requires a multidimensional view ofdatabases •Display data on selected dimensions -Time-Region- Product- Department- Customer

Cloud Computing Models

•Software (SaaS) •Platform (PaaS) •Infrastructure (IaaS) • Services-based application programming interface (API)

ASAP Phase 5: Go Live and Support

•Start of production operation •Setting up support •Verifying the accuracy of the production system •Measuring business benefits •Optimizing performance

Cloud Computing and Services

•The platform provides on demand services, that are always on, anywhere, anytime and any place •Pay for use and as needed, elastic- scale up and down in capacity and functionalities •The hardware and software services are available to- general public, enterprises, corporations and businesses markets

SD Delivery Scheduling - Terminologies

•Transportation lead time - time required to schedule transportation•Pick/Pack time - time required for picking and packing•Load time - time required to load•Transit time - time required to transport goods from shipping point to ship-to