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Final Project A case study of The Real-Time Supply Chain System in Company I

Final Project A case study of The Real-Time Supply Chain System in Company I. Group 2 Members:. 923811 Angela 923824 Ivan 923831 Jimmy. Outline. Introduction As-is Model Problems Discussion To-be Model Conclusion. Outline. Introduction As-is Model Problems Discussion

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Final Project A case study of The Real-Time Supply Chain System in Company I

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  1. Final ProjectA case study ofThe Real-Time Supply Chain System inCompany I Group 2 Members: 923811 Angela 923824 Ivan 923831 Jimmy

  2. Outline • Introduction • As-is Model • Problems Discussion • To-be Model • Conclusion

  3. Outline • Introduction • As-is Model • Problems Discussion • To-be Model • Conclusion

  4. Introduction • Company I • Challenge • Purpose • Real-Time • Cycle Time48hr → 24hr

  5. Outline • Introduction • As-is Model • Problems Discussion • To-be Model • Conclusion

  6. As-is Model Purchaser (Company I) Current Purchasing System Warehouse SAP ERP Sys. Supplier EDI 830 Material Incoming Plan (14D+10W+3M) Sales Dept. RUN MRP (00:00AM) Shortage List Manufacture Key-in SAP (Receiving Qty) Ready to deliver QI Process Warehouse (Qty) Pass

  7. As-is Model Purchaser (Company I) Current Purchasing System Warehouse SAP ERP Sys. Supplier Material Incoming Plan (14D+10W+3M) Sales Dept. RUN MRP (00:00AM) Shortage List Manufacture Key-in SAP (Receiving Qty) Ready to deliver QI Process Warehouse (Qty) Pass

  8. As-is Model Purchaser (Company I) Current Purchasing System Warehouse SAP ERP Sys. Supplier Material Incoming Plan (14D+10W+3M) Sales Dept. RUN MRP (00:00AM) Shortage List Manufacture Key-in SAP (Receiving Qty) Ready to deliver QI Process Warehouse (Qty) Pass

  9. As-is Model EDI 850 EDI 830 Customer PO SAP DB Priority I2 FP Company I Web Server EDI 850 EDI 830 DB Oracle, SQL…. Supplier

  10. Outline • Introduction • As-is Model • Problems Discussion • To-be Model • Conclusion

  11. Problems Discussion • Demand Accuracy • Supplier Status Visibility • Shipment Visibility • IQC Status Visibility • Two B2B Cycle Gap

  12. Material Incoming Plan (14D,10W,3M) Shortage List Sales Dept. New Sales Orders EDI Production Ready to deliver High level inventory Manual communications Demand Accuracy Purchaser (Company I) SAP ERP Sys. Current Purchasing System Supplier Warehouse RUN MRP (00:00 AM) Variance of Demand Key-in SAP (Receiving Qty) QI Process Warehouse (Qty) Pass

  13. Problems Discussion • Demand Accuracy • Supplier Status Visibility • Shipment Visibility • IQC Status Visibility • Two B2B Cycle Gap

  14. New Sales Orders Raw Material Order Inquiry Work Order ? Finish Good Ready to deliver Check inventory via phone Supplier Status Visibility Purchaser (Company I) SAP ERP Sys. Current Purchasing System Warehouse Supplier RUN MRP (00:00 AM) Shortage List Sales Dept. Material Incoming Plan (14D,10W,3M) Purchaser doesn’t know the inventory and supplier’s production planning Key-in SAP (Receiving Qty) QI Process Warehouse (Qty) Pass

  15. Problems Discussion • Demand Accuracy • Supplier Status Visibility • Shipment Visibility • IQC Status Visibility • Two B2B Cycle Gap

  16. Information flow ? ? Where the Material Shipment Visibility Purchaser (Company I) SAP ERP Sys. Current Purchasing System Warehouse Supplier RUN MRP (00:00 AM) Shortage List Sales Dept. Material Incoming Plan (14D,10W,3M) New sales orders Production EDI Ready to deliver Key-in SAP (Receiving Qty) QI Process Warehouse GR (Qty) Pass Manual communication

  17. Problems Discussion • Demand Accuracy • Supplier Status Visibility • Shipment Visibility • IQC Status Visibility • Two B2B Cycle Gap

  18. RUN MRP (00:00 AM) Shortage List Sales dept. Material Incoming Plan (14D,10W,3M) Supplier can’t get the result of inspection in the real time IQC Status Visibility Purchaser (Company I) SAP ERP Sys. Current Purchasing System Warehouse Supplier New sales orders QI Process EDI Key-in SAP (Receiving Qty) Ready to deliver QI Process IQC reject Warehouse (Qty) Pass Replenishment Delay Manual communication

  19. Problems Discussion • Demand Accuracy • Supplier Status Visibility • Shipment Visibility • IQC Status Visibility • Two B2B Cycle Gap

  20. ? Update MRP Data Gap Unchanged data Shortage list (afternoon) RUN MRP (afternoon) Material Incoming Plan (14D, 10W, 3M) Key-in SAP (Qty) Ready to deliver Second receiving Two B2B Cycle Gap Current Purchasing System SAP ERP Sys. Warehouse Supplier Shortage List Sales dept. RUN MRP (00:00 AM) Material Incoming Plan (14D,10W,3M) Key-in SAP (Receiving Qty) Ready to deliver (In Transit) First receiving Double Count

  21. To-Be Purchasing Process Model (1)Forecast and Forecast Commitment Process(2)Pull Signal Status Process(3)Hub Inventory Status Process construct the Real-Time Supply Chain Systemfor exchanging the information

  22. Data Flow Real-Time Supply Chain System Company I Supplier Forecast (14D,10W+3M) Forecast Forecast Commit Pull Signal with lot# Order Commit (ETD/ETA) PO Status Actual delivery time PO Status Pull Signal PO Bal Qty / Invoice Price PO Qty / Price Variance QI Status Received qty, rejected qty Product,WIP,raw material Less than Safety inventory Buffer Policy PO status Delivery status

  23. Forecast Commit XML Feedback how many demands they can commit according to MPS (1)Forecast and Forecast Commitment Process Warehouse SAP MRP System Real-Time Supply Chain System Supplier Purchase Dept. ① Run MRP Consolidate Demand 6 M Forecast(14D,10W,3M) Know whether the supplier can satisfy the future demand or not. New SO ② ERP Update MRP Data Prevent the shortage in advance. Reduce the safety inventory

  24. Prepare for receiving Key-in SAPReceived QTY check Defective items Quantity of goods and the departing time QI Process Rejected QTY Bar Code Warehouse Key-in SAP Prepare shipment Prepare replenishment (2)Pull Signal Status Process Warehouse SAP MRP System Real-Time Supply Chain System Supplier Purchase Dept. Update MRP System ② Expected Time to Deliver (ETD) Expected Time to Arrive (ETA) Expected delivery quantity ERP Pull Signal Status ① ③ This mechanism makes replenishment more efficient Company I can get the in-transit qty, ETD, ETA and so on.

  25. Raw Material WIP, Product Mapping Table Mapping PO# and SO# Product,WIP, Raw Material, and the status of PO know the status of appointed key component Query Product、WIP、Raw Material (3)Hub Inventory Status Process Warehouse SAP MRP System Real-Time Supply Chain System Supplier Purchase Dept. SFC system Warehouse  Company I monitors the inventory to prevent the shortage.  This can also help Inventec response customer’s inquiry quickly. ERP Hub Inventory Status

  26. Integrate non-homogeneous OS and DB Company I SAP DB User Hub Server Xagent Server IIS,Mail Server,etc. query SAP XAgent SAP Client Aggregation Server XML SAP App Server Control Xagents to collect data from the DB and update data to the corresponding fields Proxy Server Firewall internet User Proxy Server Firewall Supplier XML Oracle ERP JDBC XAgent Existing system Oracle Oracle JDBC New system The Architecture of Real-Time Supply Chain System

  27. Temp Xagent Analysis Report Information Flow a. Forecasting Planb. Actual Demand Planc. Material # Xagent links to the database and collect the data Xagent XML SAP Xagent sends the data into the supplier’s database directly Agg. Server Xagent Oracle a. on-hand qtyb. WIP qtyc. Allocate forecast qtyd. Commitment plane. Item# cross-reference Also, the supplier feedbacks the information by Xagent • Time Trigger ex:MRP • Event Trigger • Pulling (when data change)

  28. Expected Benefit 1. Prevents the shortage in advance 2. Makes replenishment more efficient 3. Gets the in-transit qty, ETD, ETA and so on 4. Decreases cycle time 5. Reduces supplier’s safety inventory 6. Improves customer service

  29. Conclusion • In the project, Company I and the supplier try to plan collaboratively ,find out the problem timely, and solve the problem in advance. And they use the real-time supply chain system to exchange the information • This project is proceeding now. Success of this project • depends on the cooperation of both sides in the • managerial and technical aspects. Then, it can make • the information system align around business • processes.

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