10th August 2001N. R. S. Raghavan, [email protected] ERP/SCM INTEGRATION N. R. Srinivasa...
-
Upload
henry-lane -
Category
Documents
-
view
275 -
download
0
Transcript of 10th August 2001N. R. S. Raghavan, [email protected] ERP/SCM INTEGRATION N. R. Srinivasa...
10th August 2001 N. R. S. Raghavan, [email protected]
ERP/SCM INTEGRATIONERP/SCM INTEGRATION
N. R. Srinivasa RaghavanAssistant Professor
Department of Management StudiesIISc
10th August 2001 N. R. S. Raghavan, [email protected]
The E-QuationsThe E-Quations
E-SCM = E-PROCUREMENT +
E-MANUFACTURING + E-PLANNING
E-DISTRIBUTION
E-SRM = E-SCM + E-ERP + E-CRM + E-SEM + E-LOGISTICS + E-PDM
10th August 2001 N. R. S. Raghavan, [email protected]
Information Systems in SCMInformation Systems in SCM
*ODP * Shipping * CRM*Inventory Assignment * Pricing + Inventory *Payrolls etc.
*Fin. Mgmt. *Cust.Serv. Mmt.*Cost/Asset Mgmt. * Productivity Mmt. *Vendor Mgmt. *Quality Mmt.
*VRP& Schg *Invy.Control *NPD *SCN Design *FMS *Virtual/Vertical Integration
*StgcAlliance
formulation*Devp of
Core Competence
StrategicPlaning
Decision OPTAnalysis Tools
MgmtControl
ERP
10th August 2001 N. R. S. Raghavan, [email protected]
Integration @ what levels?Integration @ what levels?
Transaction level
Management control level
Decision analysis level
Strategic planning level
10th August 2001 N. R. S. Raghavan, [email protected]
Need for Integration: Strategic Need for Integration: Strategic motivationmotivation
IExcessInventory
LateDeliveries
Poor usageof capacities
Premiumtransportation
costs
Revenue
Expenses
Assets
InfeasiblePlan
Premiumpurchase
costs
Quality costsQuality issues
Late Resynch-ronisation
Demand plan & PDN plan notsynchronizer.
PDN.plan &Capacity plan not
synchronizer.
Prod.plan &Purchase plan not
synchronizer.-R
OA
Unnecessary Prod./Purchase
10th August 2001 N. R. S. Raghavan, [email protected]
Need for Integration: Operational Need for Integration: Operational motivationmotivation
Supplier
Factory
Distribution Centers
Customers
Lockout forcesprodn. to be shut
B/D of logisticsoperations
M/C 2010 is down. Will be up again in 3 days
Sudden 20% raise in retail demand
10th August 2001 N. R. S. Raghavan, [email protected]
Solutions due to ERP are myopicSolutions due to ERP are myopic
An ERP System would react by:-
*Adapting the schedule of machine 2010 and reschedule other manufacturing orders.
* Send orders through EDI to the distribution centre
*Arrange for alternate fleet to route finished goods.
Impact on total supply chain is ignored
10th August 2001 N. R. S. Raghavan, [email protected]
S/W Modules covering the SCP S/W Modules covering the SCP
SOURCE MAKE DISTRIBUTE SALES
STRATEGIC NETWORK PLANNING
MASTER PLANNING
MRP
Prodn.Planning
Scheduling
Dristbn.Planning
Transport Planning
DemandPlanning
Demand
&ATP
Longterm
Mediumterm
Shortterm
10th August 2001 N. R. S. Raghavan, [email protected]
Global SCN FormulationGlobal SCN Formulation
Maximize Sum of the global after tax discounted yearly profits ($,Rs,etc)
S.t., for every planning period: Supplier's capacity Production capacity at plants and DC's Transportation capacity of channels Customer demand constraints, BOM Minimum profit for SBU's on a country basis
Solution: MILP: Use ILOG/CPLEX/NEOS etc.
10th August 2001 N. R. S. Raghavan, [email protected]
Global SCN Formulation: Data Global SCN Formulation: Data requirementsrequirements
Average capacities available at various entities (at any granularity desired: eg. Machine-Shopfloor-Factory)
Availability and utilization of logistics fleet Estimates/Forecasts of customer demand by region,
product etc Average per unit costs incurred for various
resources BOM
All obtainable from OLTP systems
10th August 2001 N. R. S. Raghavan, [email protected]
ATP ComputationsATP Computations* Provide promised dates for customers
- influences leadtime + on time delivery
* Generate fast & reliable order promises (esp. in E- business environment)
* Helps in retaining customers & increasing market share
* Complexity increases as :
# of parts increase; PLC decr.; #of customers increase;flexible pricing policies;demand gets uncertain.
Should be based on status of ALL SCN facilities
10th August 2001 N. R. S. Raghavan, [email protected]
SchedulingScheduling
* Generate detailed prodn./procurement/tptn schedules for all
facilities over a rlatively short interval of time.
* Specify start & end time of various activities
* Identify bottlenecks & provide efficient means of prompt
delivery of customer desired products & right place & time
objectives* makespan. *sum of lateness/tardiness * sum of flow times * sum of set up times * max.lateness/tardiness
10th August 2001 N. R. S. Raghavan, [email protected]
Phases in SchedulingPhases in Scheduling
1. Model building-ILP, queueing model, NLP
2. Extracting required data from ERP system- (set up time,cycle time
m/c breakdown data, resource requirements)
3. Generating scenarios (input cases)
4. Iterative creation/adjustment of schedules
5. Approve a scenario
6. Executing the schedule via ERP system.
10th August 2001 N. R. S. Raghavan, [email protected]
SCM Solutions: i2 RHYTHMSCM Solutions: i2 RHYTHM
Source Make Deliver Sales
SC Strategist
SC Planner
Factoryplaner
Optimalscheduler
Tptn.-Modeler
-Optimizer-Manager
Demandplanner
Demandfulfillment
Long term
Mid term
Shortterm
10th August 2001 N. R. S. Raghavan, [email protected]
SCM Solutions: J. D. Edward'sSCM Solutions: J. D. Edward's
Source Make Deliver Sales
Enterprise Planning
Production and Distribution Planning
Production Scheduling
P&DP
Demandplanner
P&DP
Long term
Mid term
Shortterm Vehicle
Routing
10th August 2001 N. R. S. Raghavan, [email protected]
SCM Solutions: SAP's APOSCM Solutions: SAP's APO
Source Make Deliver Sales
Supply Network Planning
ProductionPlanning and
Detailed Scheduling
Demandplanning
Global ATP
Long term
Mid term
Shortterm
Deployment
10th August 2001 N. R. S. Raghavan, [email protected]
Integration IssuesIntegration Issues
SCM solutions need to be integrated in existing IT Systems
SCM
OLTP/ERP D/W
SCM cannot replace ERP.On the contrary, they extendplanning tasks
10th August 2001 N. R. S. Raghavan, [email protected]
Integration with ERPIntegration with ERP
* ERP has transactional data
* SCM solution regularly has to talk to several ERP/OLTP
systems of various SC entities.
Two models required
A. Integration model-(what)
Defines - Which objects are exchanged (eg.BOM’s, routings,
inventory levels, Customer Order, PO, etc)
- Their origin
- Which planning tasks performed on which system.
10th August 2001 N. R. S. Raghavan, [email protected]
B. Data exhange model (how) Specifies how the flow of data & info between systems is organized. Most solutions provide a macro language to define these models
An SCM solution should:* Match data items from ERP system & structure it
* Provide Import/Export formats (eg.ASCII format with fixed field size or csv files)
Integration with ERP (contd)Integration with ERP (contd)
10th August 2001 N. R. S. Raghavan, [email protected]
Data exchange modelData exchange model
Two types - Initial transfer Incremental transfer
Master data(Long term changes,new facility, new shifts, new suppliers, etc.)
Transactional data(for implementation ofplans)
10th August 2001 N. R. S. Raghavan, [email protected]
Data exchange model (contd.)Data exchange model (contd.)
BOM,
Inv.levels,routing,..
Masterdata
Transactionaldata
Model building
ERP SCM
Model adjustment
Planningdata
Initial tranfer
Incremental tranfer
Incrementaltranfer
10th August 2001 N. R. S. Raghavan, [email protected]
Integration with D/WIntegration with D/W
ERP D/W
Real time dataTransactional purposes
Historical snap shotsDecision support purposesKDD/Data mining/OLAP
D/W are mainly used in demand planning:Finding patterns in demand using stats
OLAP tools help in fast and powerful reporting on data
10th August 2001 N. R. S. Raghavan, [email protected]
Data warehouses and SCMData warehouses and SCM
Collect data from various companies; Ensure consistency of data from disparate
transactional
systems
Historical data
D/WOLAP tools
KDDdata mining
tools
Modelbuilding
Time seriesanalysis
SCM
10th August 2001 N. R. S. Raghavan, [email protected]
Classification of SCM integration technichesClassification of SCM integration techniches
Sta
ndar
dT
echn
olog
y
Ven
dor
spec
ific
te
chno
logy
Standard middleware
pdteg.CORBA
Vendor specificmiddlewareeg.i2 RhythmLink
Internalinterfaceseg.SAP R/3, APO
Open only for pdts of vendor Open for other systems
10th August 2001 N. R. S. Raghavan, [email protected]
SCM Solution Providers: A GlanceSCM Solution Providers: A Glance
Dynasis i2 logility Manugistics JD Edwards Web Planner
ElectronicsAutomotiveMech. Engg.MetalsPharmaChemicalsPaper/PrintOil and GasFMCGTextilesFoodTransportation
INDUSTRY FOCUS A/C TO VENDORINSTALLATIONS EXISTING A/C TO VENDOR