Pierre-Majorique LÉGER Jacques ROBERT Gilbert BABIN Robert PELLERIN Bret WAGNER

Version : August 2011 © Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca

Copyright © 2011 HEC Montréal ERP Simulation Game

Distribution GameVersion 2011-2012

About ERPsim

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

About ERPsim Lab

• The mission of ERPsim Lab is to conduct research, development and transfer in the field of serious games in information technology.

• It has created ERP business simulations that are used in more than 50 universities worldwide and, through its commercial arm, Baton Simulation Pty, in many large corporations.

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

ERPsim Lab: Development team

• Research team• Prof. Pierre-Majorique Léger, Ph.D., Director ERPsim Lab (HEC

Montréal)• Prof. Gilbert Babin, Ph.D. (HEC Montréal)• Prof. Jacques Robert, Ph.D. (HEC Montréal)• Prof. Robert Pellerin, Ph.D. (École Polytechnique de Montréal)• Prof. Bret Wagner, Ph.D. (Western Michigan University)

• Technical team• Derick Lyle, MBA, Assistant Director ERPsim Lab• Virginie Boulay, M.Sc.• Alexandre Rimthong, M.Sc.

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Sales

Automated by ERPsim

Automated by ERPsim

Planning

Automated by ERPsim

Procurement

Automated by ERPsim

What is ERPsim ?

Watch this video clip for more information about ERPsim: http://www.youtube.com/watch?v=qzqiRsuY4gg

Introduction to the distribution game

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

ERP Simulation Games:Pedagogical objectives• To show how the ERP system

supports business strategies• To develop a hands-on

understanding of the concepts underlying enterprise systems

• To experience the tangible benefits of enterprise integration firsthand

• To develop technical skills at taking decision using an enterprise software

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Distribution game

• In groups of at most 4 participants, each team operates a bottle distribution company.

• Using standard reports, participants have to make business decisions to ensure the profitability of their operation

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

German market

North45 retailers

South38 retailers

West40 retailers

• 6 products (boxes of 12x1L and 24x500mL)• 3 areas with distinct marketing accounts• One distribution channel : 14• Market size of about € 6,000 per company per step

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

6 products

Product Code Product Description Units in box Cost of boxes$$-F01 1L ClearPure 12 bottles 11.99 $$-F02 1L Spritz 12 bottles 14.99 $$-F03 1L Lemon Spritz 12 bottles 16.99 $$-F04 500mL ClearPure 24 bottles 16.99 $$-F05 500mL Spritz 24 bottles 19.99 $$-F06 500mL Lemon Spritz 24 bottles 22.99

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Game layout

20 steps25 min

20 steps25 min

20 steps25 min

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Rules of the game

• Each round will be of 20 steps (a bit more than 1 min per step)

• End-of-round inventory is carried over to the next round

• You can sell a product only if you have it in stock• You compete against the other teams and

importers• Your objective is to maximize profit

SAP Navigation

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

ABC of Enterprise systems

• An enterprise system is build around an integrated database• A system such as SAP contains tens of thousands data

tables• When a user creates, changes or views data in the system,

he or she performs a transaction• Data changed or created by one user can be exploited by all

other users (ex. reporting, tracking, execution of orders, etc.)• All transactions are traceable, transactions with financial

impacts can be reversed, never erased

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

User interface

• Users interact with the enterprise system through transactions.

• A large number of pre-programmed transactions exist in SAP

• Each transaction has a transaction code – one can call a transaction if one knows the transaction code

• The SAP menu allows to browse and find the desired transaction

• One can create a user menu or a list of favourites with the commonly used transactions

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

SAP Menu & NavigationExtras / Settings / Display technical names

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Reports and queries

• Reports and queries are transactions that allow users to view existing data

• A typical query is performed as follows:• In the first page of the transaction, you must enter the

selection criteria for the query (ex. Company code, product code, etc.)

• Then, click on to execute the query• A table containing the requested data will appear• The display and layout can sometimes be modified

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Entering new data

• Some transactions are designed to change or create new data (change forecast, release purchasing orders, change sale price, etc.)

• The interface varies according to data required by the system

• The system will not allow you to save information if all the compulsory fields have not been filled

• You must save/release/confirm before exiting the transaction

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Other useful buttons

• Use the navigation buttons to go back or get out of a transaction

• You can open up to 6 sessions. Click on to open a new session

• Delete , search , select all , view , enter .

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Participant’s job aid

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Let’s get started!

• Set up teams: • Max 4 persons : User 1 to User 4• Up to 26 companies : A to Z

• Log in using user name and password by your instructor.

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Login information

Client will be provided by the instructor

Login: intro_$ #Where

$ = Team, # = User 1 to User

4

Password: ERPSIMYou will have to change your password the first time you enter

Distribution Game: Round 1

20 steps25 min

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Cost, inventory & initial pricing

Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06

Name 1L ClearPure 1L Spritz 1L Lemon Spritz

500mL ClearPure 500mL Spritz 500mL Lemon

Spritz

Size 1L 1L 1L 500mL 500mL 500mL

Number of bottles in package 12 12 12 24 24 24

Cost €11.99 €14.99 €16.99 €16.99 €19.99 €22.99

Initial price €14.99 €17.99 €19.99 €19.99 €22.99 €25.99

Initial stock 1,000 1,000 1,000 1,000 1,000 1,000

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

The Distribution Game:Round 1 (20 steps)• You need to maintain the price of your 6 products and invest in

marketing.• What do you need to know in order to make that decision ?• You need to know how to :

• Maintain price list• See available stock• Monitor sales orders• Monitor competitors

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Participant’s job aid & Menu

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Maintain Prices for DC 14

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Marketing expenses

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

On marketing

• Enter your daily marketing budget for each product and for each region

• The impact of marketing in one region depends on your share of all marketing expenses in this region

• Marketing induces customers to find your product “more desirable”

• The daily marketing budget can be changed at any time

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Stock in material overview

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Check sales summary report

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Check market report

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Check sales order report

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

The Distribution Game:Round 1 (20 steps)

We start the simulator for 20 steps

Distribution Game: Round 2

20 steps25 min

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

It’s time to replenish !

• You need to replenish. Replenishment will allow you to purchase the same quantity that you have sold.

Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06

Name 1L ClearPure 1L Spritz 1L Lemon Spritz

500mL ClearPure 500mL Spritz 500mL Lemon

Spritz

Initial forecast 1,000 1,000 1,000 1,000 1,000 1,000

Replenishment lead time Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps Up to 3 steps

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Participant’s job aid & Menu

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Execute MRP

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

After the MRP run

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Convert purchase requisitions into purchase orders

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Track purchase orders

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

The Distribution Game:Round 2 (20 steps)

We start the simulator for 20 steps

Distribution Game: Round 3

20 steps25 min

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

It’s time to replenish !

• You need to replenish. Change your forecast to adapt the replenishment levels to your needs

• What do you need to know in order to make that decision ?

Material $$-F01 $$-F02 $$-F03 $$-F04 $$-F05 $$-F06

Name 1L ClearPure 1L Spritz 1L Lemon Spritz

500mL ClearPure 500mL Spritz 500mL Lemon

Spritz

Initial forecast 1,000 1,000 1,000 1,000 1,000 1,000

Replenishment lead time 3 steps 3 steps 3 steps 3 steps 3 steps 3 steps

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Participant’s job aid & Menu

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

Forecasting

© Léger et al. 2011 ERPsim is proprietary technology developed by researchers at HEC Montréal, École Polytechnique de Montréal and Western Michigan Univ. ERPsim is owned by Polyvalor and Valorisation Gestion and commericialized by Baton Simulations. More info at erpsim.hec.ca Version : August 2011

The Distribution Game:Round 3 (20 steps)

We start the simulator for the last 20 steps

Debriefing