Enterprise Enterprise Resource Resource PlanningPlanning (ERP) (ERP)

Ali KODALAli KODAL

Cagdas GURCagdas GUR

Dalvin EBIWAREDalvin EBIWARE

Ferdad MOTARJEMIFerdad MOTARJEMI

Mustafa GündeğerMustafa Gündeğer

Project Group

What is Enterprise Resource Planning (ERP)?What is Enterprise Resource Planning (ERP)? How ERP systems are implemented within How ERP systems are implemented within

companies?companies? Companies before ERP Systems Companies before ERP Systems

EMU Real Case ExampleEMU Real Case Example Companies after ERP SystemsCompanies after ERP Systems

EMU Real Case ExampleEMU Real Case Example Sap Program Structure in Printing ProcessSap Program Structure in Printing Process

E.M.U. ERP SystemsE.M.U. ERP Systems ERP Software CompaniesERP Software Companies Istanbul Fast Ferries (IDO) Uses SAPIstanbul Fast Ferries (IDO) Uses SAP How Engineers benefits from ERP systems?How Engineers benefits from ERP systems? SAP shareholdersSAP shareholders

""CIM CIM is the integration of total is the integration of total manufacturing enterprise by using manufacturing enterprise by using integrated systems and data integrated systems and data communication coupled with new communication coupled with new managerial philosophies that improve managerial philosophies that improve organizational and personnel efficiencyorganizational and personnel efficiency."."

COMPUTER INTEGRATED MANUFACTURING - CIM

SubsystemsSubsystems of of CIM operation:CIM operation:

CAD/CAMCAD/CAM (Computer-aided design/Computer-aided (Computer-aided design/Computer-aided manufacturing) manufacturing)

ERPERP (Enterprise resource planning) (Enterprise resource planning) CAPP,CAPP, (Computer-aided process planning) (Computer-aided process planning) CNC CNC (computer numerical control) machine tools (computer numerical control) machine tools DNCDNC, direct numerical control machine tools , direct numerical control machine tools FMSFMS, flexible machining systems , flexible machining systems ASRSASRS, automated storage and retrieval systems , automated storage and retrieval systems AGVAGV, automated guided vehicles , automated guided vehicles Robotics Robotics Automated conveyance systems Automated conveyance systems Computerized scheduling and production control Computerized scheduling and production control CAQ CAQ (Computer-aided quality assurance) (Computer-aided quality assurance) A business system integrated by a common database. A business system integrated by a common database. Lean ManufacturingLean Manufacturing

What is Enterprise What is Enterprise Resource Planning (ERP)?Resource Planning (ERP)?

ERP is an enterprise-wide information ERP is an enterprise-wide information system designed to coordinate all thesystem designed to coordinate all the resourceresources,s, information, information, activities needed activities needed

to complete business processes such asto complete business processes such as;; orderorder fulfillmentfulfillment billing.billing.

How ERP Systems How ERP Systems Works?Works?

A typical ERP system would use multiple A typical ERP system would use multiple component of computer software and component of computer software and hardware to achieve integrationhardware to achieve integration

ERP delivers a ERP delivers a single databasesingle database that that contains all data for the software modulecontains all data for the software module

Increased

Increased

Decreased

Decreased

Increased

Increased

Solutions of ERPSolutions of ERP Financial ManagementFinancial Management Inventory ManagementInventory Management PurchasingPurchasing Sales ManagementSales Management Production PlanningProduction Planning Advanced Visual PlanningAdvanced Visual Planning Manufacturing ManagementManufacturing Management

How ERP systems are How ERP systems are implemented within implemented within companies?companies?

ERP Software Companies start analysing ERP Software Companies start analysing the prospective company(s), identifing the prospective company(s), identifing their individual needs. their individual needs.

Setup of ERP systemsSetup of ERP systems For Mid-size companies 5-12 months For Mid-size companies 5-12 months Large Companies 6-18 monthsLarge Companies 6-18 months

Companies before ERP Companies before ERP SystemsSystems

Example of EMUExample of EMU

Industrial Engineering Faculty wants to Industrial Engineering Faculty wants to buy a new Printer.buy a new Printer.

For this reason Secretary gives a For this reason Secretary gives a purchasing order by filling purchasing purchasing order by filling purchasing order forms.order forms.

Next slide shows how this purchasing Next slide shows how this purchasing request process flow was working before request process flow was working before ERP systems.ERP systems.

New Printer Purchasing New Printer Purchasing ProcessProcess

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 Responsible’s Confirmation

9. Transfer to Rector’s Office

10.Rector’s Secretary- Confirmation

11.Confirmation Transfer, to Purchase Department Secretary

12.Purchase Responsible personal commends with Purchase:

Secretary’s New printer application

Transfer to Finance

Departmen

Transfer to Accounting Office

Transfer to Manager

Transfer to Accounting Office

Example: Before ERP Systems

Companies after ERP Companies after ERP SystemsSystems

Example E.M.U. IE Faculty Example E.M.U. IE Faculty

Industrial Engineering Faculty wants to Industrial Engineering Faculty wants to buy a new HP Printer.buy a new HP Printer.

For this reason Secretary gives a For this reason Secretary gives a purchasing order with using E.M.U. purchasing order with using E.M.U. Online ERP systems.Online ERP systems.

Next slide shows the purchasing order Next slide shows the purchasing order process flow with ERP Systems.process flow with ERP Systems.

E.M.U. After ERP SystemsE.M.U. After ERP Systems

SAP SYSTEM ONLINEHEAD OF DEPARTMENT

REQUEST OF NEW HP PRINTER

CONFIRMATION

SAP SYSTEM ONLINEPURCHASE

RESPONSIBLE

FINANCIAL ACCOUNTING

SAP SYSTEM ONLINE PURCHASEING MANAGER

CONFIRMATION

SECRETARY

SAP SYSTEM ONLINEFINANCE DEPARTMENT

CONFIRMATION SAP SYSTEM ONLINE

RECTORS OFFICECONFIRMATION

SAP SYSTEM ONLINEPURCHASE DEPARTMENT

PURCHASE OF NEW

HP PRINTER

Online Data Flow decreases the process timeOnline Data Flow decreases the process time Fast & Online ConfirmationFast & Online Confirmation Less PaperworkLess Paperwork No need for folder storageNo need for folder storage Database SecurityDatabase Security Less Employee needed Less Employee needed Easy Financial ManagementEasy Financial Management Better Inventory ManagementBetter Inventory Management

In this real case there the benefits of the ERP systems

Example E.M.U. IE FacultyExample E.M.U. IE Faculty

One of instructor gives printing order to One of instructor gives printing order to the secretary.the secretary.

Next slides shows the process flow and Next slides shows the process flow and how the system works step by step.how the system works step by step.

SAPSAP Program Structure in Printing ProcessProgram Structure in Printing Process

number is sent to instructor and

instructor filled a small paper work

Secretary confirms on the SAP program

secretary receives a code from program

After signing the paper the form is sent to secretary

Open program

Request Form is selected for Printing Office.

Then the printing process

drops to the list of th

e

printing center.

signed

Printing Process Flow DiagramPrinting Process Flow Diagram

Secretary of the department opens SAP page.

Printout Process of IE DepartmentPrintout Process of IE Department

1.security step 1 is for IE DEPT

2. security step 2 is for Administrator.

User

Password

Sign In

EMU Information Department

After Second step menu is shownAfter Second step menu is shown

Purchasing & Inventory Control Management

Managerial Unit Request

Printout

Request List

Confirmation

Create Request

Editting

3. 3. Request Form is selected forRequest Form is selected for Printing Printing Office. Office.

4.4. T Then, title of the request, course code, hen, title of the request, course code, instructor name, work category, and instructor name, work category, and office telephone number is filled by office telephone number is filled by secretary secretary

Name Surname Phone

Definitions

Next

Materials will be selling in bookstorePrintout

Subject of Request

Printing Department Request Form

Work type

User

5.S5.Secretary receives a number (code) from program. ecretary receives a number (code) from program. 6.T6.This number is sent tohis number is sent to the the instructor and instructor and the the

instructor fillinstructor fillss a a short form.short form.7.7.After he/she signed the paper the form is sent to After he/she signed the paper the form is sent to the the

secretarysecretary;; 8.Secretary8.Secretary confirm confirmss on the SAP program. on the SAP program. 9. Accounting office is informed and cost is calculated, 9. Accounting office is informed and cost is calculated,

check to see if Industrial Engineering has the check to see if Industrial Engineering has the required budget. After approvalrequired budget. After approval

10.Then the printing process drops to the list of the 10.Then the printing process drops to the list of the printing center.printing center.

11. Inventory management is informed.11. Inventory management is informed.12. Purchasing Office is informed simultaneusly.12. Purchasing Office is informed simultaneusly.

EMU ERP SYSTEMS

• 6.00cc SAP

• ORACLE 10.2

MM MODULE Material Management

FI MODULE Financial Management

CO MODULE Controlling Operations

AA MODULE Asset Accounting

FM MODULE Funds Management

What is SAP MM?What is SAP MM? SAP MM (Materials Management)SAP MM (Materials Management)

SAP MM iSAP MM is a module is used for Procurement Handling s a module is used for Procurement Handling and Inventory Management. and Inventory Management.

The module has two important master data - The module has two important master data - materialmaterial and and vendorvendor. .

Broadly, the various levels that can be defined for a Broadly, the various levels that can be defined for a SAP MM implementation are: SAP MM implementation are: Client, Client, Company Code, Company Code, Plant, Plant, Storage LocationStorage Location,, Purchase Organization. Purchase Organization.

Material ManagementMaterial Management ( (MMMM))LOGICAL STRUCTURELOGICAL STRUCTURE

vendor

supplier

production

Distribution

customer

SAP FICO SAP FICO

Financial Accounting Financial Accounting (FI) Module(FI) Module

The SAP FICO module includes 2 major categoriesThe SAP FICO module includes 2 major categories;; Financials (FI) Financials (FI) Controlling (CO)Controlling (CO)

FIFI (Financial Accounting) module (Financial Accounting) module includesincludes;; AAccounts payableccounts payable AAccounts receivableccounts receivable GGeneral ledgereneral ledger

ControllingControlling (CO) Module (CO) Module

The The CO CO (Controlling) Module has multiple configuration (Controlling) Module has multiple configuration steps that must be followed for complete implementation steps that must be followed for complete implementation of this module. of this module.

Cost CenterCost Center Order ManagementOrder Management Commitment MgtCommitment Mgt Profit Analysis Profit Analysis Acty-Based CostingActy-Based Costing

ERP Software CompaniesERP Software Companies& Marketshares& Marketshares

SAP; 15,6

Peoplesoft; 4,9

Oracle ; 4,8

Baan; 3

CA; 3

JDE; 2,2

SSA; 2,1

GEAC; 2

IBM; 1,8

JBA; 1,7

Others ; 59

Software Market Share

SAP 15.6

Peoplesoft 4.9

Oracle 4.8

Baan 3.0

CA 3.0

JDE 2.2

SSA 2.1

GEAC 2.0

IBM 1.8

JBA 1.7

Others 59.0

Istanbul Fast Ferries (IDO) Istanbul Fast Ferries (IDO) Uses SAP SoftwareUses SAP Software

Istanbul Fast Ferries Istanbul Fast Ferries (IDO)(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

MAINTENANCE

FUEL

PASSANGER

PASSANGER

PASSANGER

EMPLOYEE

SAP CENTER

SAP Systems arranges SAP Systems arranges relationship betweenrelationship between;;

shipping conditionshipping conditionss, , route determination, route determination, shipping pointshipping point, , employee conditions, employee conditions, fuel supply, fuel supply, maintenance maintenance

CombineCombine t these variableshese variables in order to in order to determine optimaldetermine optimal transportationtransportation mode and mode and service levels. service levels.

Controlling Module (CO) Controlling Module (CO)

IDO passanger can send SMS to IDO IDO passanger can send SMS to IDO SAP system and get the information SAP system and get the information about shipping route times.about shipping route times.

This process is a service of Controlling This process is a service of Controlling Module.Module.

Istanbul Fast FerriesIstanbul Fast FerriesSAP SYSTEM’s first stepSAP SYSTEM’s first step

PM Plant Maintanance

MM MODULE Material Management

CO-CCA MODULE Controlling Operations

FI MODULE Financial Management

• FI-AA MODULE Asset Accounting

• FM MODULE Funds Management

HR-PA Human Resource- Professional Association

PM - Plant MaintenancePM - Plant Maintenance Equipment and Technical Objects (PM-EQM)Equipment and Technical Objects (PM-EQM) Preventive Maintenance ( PM-PRM)Preventive Maintenance ( PM-PRM) Maintenance Order Management (PM-WOC)Maintenance Order Management (PM-WOC) Work Clearance Management (PM-WCM)Work Clearance Management (PM-WCM) Information System (PM-IS)Information System (PM-IS) Workflow Scenarios (PM/CS)Workflow Scenarios (PM/CS)

Istanbul Fast FerriesIstanbul Fast FerriesSAP SYSTEM 2nd stepSAP SYSTEM 2nd step

TR-CM Data Adjustment in Cash Management

TR-TM Treasury Management

HR-PD Human Resources Performance Evaluation

CO-PA Profitability Analysis

WF Work Flow

Istanbul Fast FerriesIstanbul 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 How can Engineers benefit from ERP systems ?from ERP systems ?

Usesful SAP Modules for Usesful SAP Modules for EngineersEngineers

MM- Material ManagementMM- Material Management Better Procurement HandlingBetter Procurement Handling Orginized Inventory ManagementOrginized Inventory Management Easy Purchase OrganizationEasy Purchase Organization Faster Storage LocationFaster Storage Location

PM – Plant MaintenancePM – Plant Maintenance Maintenance Order ManagementMaintenance Order Management Equipment and Technical Objects CoordinationEquipment and Technical Objects Coordination Preventive MaintenancePreventive Maintenance Workflow Scenarios Workflow Scenarios Work Clearance ManagementWork Clearance Management

PURCHASING INFO SYSTEM STOCK

CONTROL

MM

Purchasing groupVendorMaterial groupMaterial

ABC analysis

Production

phase

Storage

Material

Batch

ABC analysis

Stock value

Planning

Flexible

analysis

MM Information System

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

- - purchasing information system andpurchasing information system and,,- - stock controlstock control

Mail

Fax

Telex

Teletext

Printer

EDI

OUTPUTS of ERP Systems

DOCUMENTS

Proposal

Orders approval

Delivery plans

Shipping papers

Warehouse check list

Material document

Accounting document

Delivery/shipping document

Invoice

Dept & credit doc.

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