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SAP Manufacturing Game Part 1: Running a make-to-stock company

Collaborate and optimize your manufacturing operations using the end-to-end power of SAP. Welcome to your new job!

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SAP Manufacturing Game Part 1: Running a make-to-stock company

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  1. Manufacturing game Part 1

  2. Running a make-to-stock company…

  3. Collaborating using the end-to-end power of SAP !

  4. Description of your new company

  5. Welcome to your new job ! http://www.youtube.com/watch?v=XYFJASoYGps

  6. Location of the 26 companies

  7. Muesli Cereals Wheat Oats Nuts Raisins Blueberries Strawberries

  8. Product size 1.0 KG 0.5 KG

  9. Your 6 products 40% wheat 40% oat 20% nut 1 box 1 bag 40% wheat 40% oat 20% raisin 1 box 1 bag 40% wheat 40% oat 20% blueberry 1 box 1 bag 50% wheat 50% oat 1 box 1 bag 35% wheat 35% oat 10% raisin 10% nut 5% strawberry 5% blueberry 1 box 1 bag 40% wheat 40% oat 20% strawberry 1 box 1 bag

  10. Muesli Manufacturing Association Label Regulation

  11. Operations in the cash-to-cash cycle

  12. Input Costat low seasonal price

  13. Number of stores by geographical area

  14. DC10Hypermarkets • Buy only large boxes (1 kg) • Payment delay of 20 days • More sensitive to price • Less sensitive to advertising • Will have a stronger preference for 3 particular products during the simulation

  15. DC12Grocery chains • Buy small boxes (0.5 kg) and large boxes (1 kg) • Payment delay of 10 to 15 days • Will have a stronger preference for 4 particular products during the simulation

  16. DC14Independent grocers • Only buy small boxes (0.5 kg) • Less price sensitive • Sensitive to advertising • Payment delay of 5 to 10 days • Will have a stronger preference for 2particular products during the simulation

  17. Number of retailers per Länders

  18. Risk premium on credit ratings

  19. Production improvements

  20. Warehousing costautomatically charged • Each team has 3 warehouse storage areas: • Finished product - space for 250,000 boxes • Raw materials - space for 250,000 kg • Packaging - space for 1,000,000 boxes and space for 1,000,000 bags • Additional warehouse space can be rented: • 100,000 boxes (or part thereof), @ € 200/day (less than € 0.01 per box per step) • 100,000 kg (or part thereof), @ € 350/day (more expensive because it's raw food product) • 100,000 boxes AND/OR bags (or part thereof), @ € 50 day

  21. Fixed costs per week

  22. Review of the major rules • You may not change the recipe of a product if you are still carrying inventory • Customers preferences do not change throughout the game, hence you may learn from their past behavior • The company displaying the highest shareholder’s equity at the end of the simulation wins the game • You must behave ethically at all times • The end of game inventory will be value at cost price in the final balance sheet. Therefore, you shouldn’t sell under cost at any time during the game.

  23. Elements of a winning strategy • Use the ERP system efficiently • Do not run out of stock • Delays, production capacities and liquidity constraints are important elements of the game • Exploration and exploitation • Team organization is more important than you think • Have fun!

  24. Introductory Game: Round 1 30 min 30 steps

  25. Cost, inventory & initial pricing

  26. The Introductory game:Round 1 (30 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 • Monitor your profit !

  27. Participant’s job aid & Menu

  28. Check product costing

  29. Maintain Prices for DC 10 & 12

  30. Marketing expense

  31. Stock in material overview

  32. Check sales summary report

  33. Check sales order report

  34. Check market report

  35. Check financial statements

  36. The Introductory game:Round 1 (30 steps) We start the simulator for 30 steps

  37. Introductory game: Round 2 30 min 30 steps

  38. Participant’s job aid & Menu

  39. Release production order

  40. Check production schedule

  41. Parameters of the game

  42. The Introductory game:Round 2 (30 steps) We start the simulator for 30 steps

  43. Introductory game: Round 3 30 min 30 steps

  44. Participant’s job aid & Menu

  45. Forecasting

  46. Execute MRP

  47. After the MRP run

  48. Convert purchase requisitions into purchase orders

  49. Track purchase orders

  50. The Introductory game:Round 3 (30 steps) We start the simulator for the last 30 steps

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