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Logistical applications and optimizations

Logistical applications and optimizations. overview. Introduction. October 28 - definition of business processes. November 11 - overview of logistical business processes. November 18 - functionality of purchase and supply processes. December 02 - functionality of production processes.

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Logistical applications and optimizations

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  1. Logistical applications and optimizations Logistical applications and optimizations

  2. overview Introduction October 28 - definition of business processes November 11 - overview of logistical business processes November 18 - functionality of purchase and supply processes December 02 - functionality of production processes December 16 - functionality of sales and distribution processes January 20 - special problems within the supply chain handling Logistical applications and optimizations

  3. Review on the last session You have learned about business processes and composed business process • You have seen the different types of business processes • supply chain business processes • logistical crossover business processes • business support processes • You have learned about procedures and tools to • analyse business processes • visualise business processes • document business processes • You have seen the needed components to implement an IT application system • customizing • master data management • user exits and modifications • You have learned • that translating business processes into IT application processes is a very challenging task which needs some experience • That process integration is an important factor for an optimal IT application system • Why to avoid individual developed interfaces if ever possible Logistical applications and optimizations

  4. About this lecture All sessions are split into 2 blocks: from 08:30 to 10:00 and from 10:15 to 11:45 Each session starts with a short review of the last lectures subjects Next I will give you a short theoretical overview of the days subject Next you probably will develop 3 different subjects in a brainstorming sessionin 3 groups Each group will then present the results of their discussions I will present theoretical explanations for the discussed subjects Then I will show a example solution for a potential written test question Finally I will give a summary of the key messages for this session Logistical applications and optimizations

  5. overview Introduction October 28 - definition of business processes November 11 - overview of logistical business processes November 18 - functionality of purchase and supply processes December 02 - functionality of production processes December 16 - functionality of sales and distribution processes January 20 - special problems within the supply chain handling Logistical applications and optimizations

  6. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  7. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  8. Overview of logistical processes, Part 1 Problems and potentials Usage of SCM Tools in chemical industry (November 2008) none considered In use planned Logistical applications and optimizations

  9. Overview of logistical processes, Part 1 Problems and potentials As a consequence many companies do not use the potentials of an appropriate SCM Very often suboptimal SCM processes are implemented by the IT application system Logistical applications and optimizations

  10. Overview of logistical processes, Part 1 Learning targets Understand the main component structure of a supply chain application system Understand the business support components, that are needed in assistance to run a supply chain application system Understand the need for both external and internal collaboration processes Understand the important inputs and outputs of each component Understand the involved acting logical business units Logistical applications and optimizations

  11. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  12. Store Transport Customer Supplier Plant Supply chain processes Supply chain processes represent all main logistical activities for creation of value according to the business definition Logistical applications and optimizations

  13. Store Transport Customer Supplier Plant Raw Material Entry Stores Transport- unit Production1. level Productionn. level A1 A2 C B A3 Supply chain processes Logistical applications and optimizations

  14. Customer A Customer B Customer C Prod. C Transfer Prices B Prod. B A Prod. A Plant A Plant B Supply chain processes Transfer Prices Logistical applications and optimizations

  15. Supply chain processes Business support processes Logistical crossover processes Production planning and scheduling Shipment and distribution Sales Purchasing Logistical applications and optimizations

  16. Core Business Processes and X-over Processes CS APS MITO BW PTP – purchasetopay advanced Planning systems FFG – forecasttofinishedgoods chemistryservices materialinputtooutput OTC – ordertocash businessinformation warehouse AE - asseteffectiveness FAC – finance&accounting coreprocess crossprocess Logistical applications and optimizations

  17. Supply chain processes Sales and operations planning (SOP) Salesorder Forecast Purchase requirements Materials requirements planning (MRP) MRPlists Conversionofplannedorders Plannedorder release of production as process orders MES ProductionPapers Actualproduction Confirmation Goods Receipt Goods Issue TimeandMaterial Productioncontrolling Distribution Logistical applications and optimizations

  18. LongTerm MidTerm ShortTerm Supply chain planning Purchase Production Distribution Sale SupplyChainCockpit Monitor NetworkDesign(ND) Demand Planning (DP) SupplyNetworkPlanning (SNP) Procurement Planning Production Planning & DetailedScheduling(PP/DS) Distribution Planning&Deployment Transport. Planning & VehicleScheduling (TP/VS) Global ATP Logistical applications and optimizations

  19. PlanningHorizon DemandPlanning(DP) SupplyNetworkPlanning (SNP) Production Planning (PP) Detailed Scheduling (DS) Deployment TransportPlanning(TP/ VS) Supply chain planning Logistical applications and optimizations

  20. Supply chain planning model Externalcustomer Plant B Plant C External customer Plant A Internal customer External customer External customer Plant E Plant D Supplier Customer Plant External customer Logistical applications and optimizations

  21. One-to-one Communication Excessive Inventory (Bullwhip-Effect) ManualCommunication Asynchronous Planning Cycles Assumption bases Planning From sequential supply chains... 2nd Supplier 1st Supplier Manufacturer Retailer Logistical applications and optimizations

  22. ….. to networked Supply Chains. Transportation Exchange Carrier Customer • Collaboration • One-to-many Communication • Synchronous/asynchronous Communication • Synchronized Planning Cycles • Automated Decisions • Tracking and Tracing • Technological Openness Retailer 1stSupplier 2 nd Supplier Trade Exchange Logistical applications and optimizations

  23. Advantages of Collaboration Logistical applications and optimizations

  24. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  25. Business support processes Business Support Processes represent all non logistical activities to support the main logistical activities Controlling Budgeting Invoicing Logistical applications and optimizations

  26. Info Cube Info Cube Info Cube Info Cube Info Cube CC-Cube CC-Cube CC-Cube CC-Cube Business support processes, strategic planning and reporting Cluster Business Warehouse Cluster B Cluster C Cluster D ClusterA ERP Systems ... Logistical applications and optimizations

  27. Practical part: developing the subjects • Group A: Please design the SC Model for • 4 Plants A,B,C,D • A, B, D have own Customers • C, B have own Suppliers • A supplies C and B, B supplies C and D • Please design as an sequential model • Please design as a network model • Group B: Please design the SC Model for • 4 Plants A,B,C,D • A, C have own Customers • C, B, D have own Suppliers • A supplies C and B and D, C supplies B and D • Please design as an sequential model • Please design as a network model • you have 20 minutes for group discussion and writing down your ideas • afterwards each group has 5 minutes for the presentation of your ideas • your are free to use any presentation medium Logistical applications and optimizations

  28. Example solution for a potential test task, Part 1 • design the SC model for • 4 Plants A,B,C,D • A, B, D have own Customers • A, C, B have own Suppliers • A supplies C and B, C and B supply D Plant C Plant D Plant A Plant B Logistical applications and optimizations

  29. Summary and key messages, Part 1 The SC components are sales, purchase, production and distribution SC planning processes effect all SC components There are models and tools to describe SC processes SC networks are the basis for collaboration Business support processes are mainly calculation, budgeting and reporting • Literature • Stadtler, Kilger – Supply chain management and advanced planning, Springer Verlag, Berlin Heidelberg, 2000 • Dangelmaier, Busch (Hrsg.) – (in german) Integriertes Supply Chain Management, Gabler Verlag, Wiesbaden, 5/2004 Logistical applications and optimizations

  30. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  31. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  32. Overview of logistical processes, Part 2 Problems and potentials There are many logistical processes, which do not belong to the main SC processes, but effect all those components The integration of these components assure the most effective use of the supply chain Distribution of information in case of disturbances is a challenge a high potential Logistical applications and optimizations

  33. Overview of logistical processes, Part 2 Learning targets Understand the structure of logistical crossover processes Understand the applications tasks to assure process integration Understand the important inputs and outputs of each component Understand the involved acting logical business units Logistical applications and optimizations

  34. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  35. Logistical crossover processes Logistical crossover business processes represent all logistical activities to support the main logistical activities Logistical applications and optimizations

  36. Life-Cycle Data Management Document Management Product Structure Management Recipe Management Integration Change and Configuration Management Asset Life-Cycle Management Technical Assets Management Preventive and Predictive Maintenance Maintenance Execution Work Clearance Management Quality management in the SC Program and Project Management Program Management Project Planning Project Execution Interfaces Life-Cycle Collaboration and Analytics DesignCollaboration CollaborativeProjectManagement Quality Collaboration Enterprise Portal Content Analytics Quality Management Audit Management Quality Control Quality Improvement Environment, Health and Safety Basic Data andTools ProductSafety HazardousSubstanceManagement Dangerous Goods Management Waste Management Industrial Hygiene and Safety Occupational Health Logistical applications and optimizations

  37. Procurement Production Sales Service Quality management in the SC • Q Info • Technical delivery terms and conditions • Inspection lots • Fault reports • In-process inspection • Batch classification • Quality control charts • Quality reports • Inspection lots/Delivery • Certificates • Customer reports • Service reports Logistical applications and optimizations

  38. Quality management reporting in the SC Quality reports can be evaluated according to different criteria. For instance, an overview of problems occurring with one material can be provided. Questions such as what happened during production or have complaints been received from customers can be answered easily. Logistical applications and optimizations

  39. Quality management reporting in the SC Logistical applications and optimizations

  40. Sample management in the SC Logistical applications and optimizations

  41. Inspection orders in the SC Outward stock movement Goods receipt Manually Deadline monitoringbatch Periodically In-process Create inspection lot Print inspection instruction/labels Record results Usage decisionsubsequent action Logistical applications and optimizations

  42. R & D in the supply chain A manufacturer of chemicals has to > comply with the respective laws be able to provide seamless information about the properties of the products that leaves no room for doubt > > provide foresighted information about handling > take preventive action against emergencies have clearly structured development routines, production procedures and supply chains > Logistical applications and optimizations

  43. Core Phase R & D in the supply chain Regarding R&D, the product life cycle management consists of Strategic R&D planning Phases Operational R&D handling Compliance of R&D requirements in the running system Logistical applications and optimizations

  44. R & D in the supply chain Requirements for an Operational R&D handling > R&D handling is more than writing down structures and recipies > IT support of the total actual R&D process > Document the results of the R&D activities > Implementation of subsequent settings in the ERP environment Logistical applications and optimizations

  45. Overview of logistical processes Part 1 Supply chain processes Business support processes Short break Part 2 Logistical crossover processes Applications tasks to assure process integration Logistical applications and optimizations

  46. Applications tasks to assure process integration Lacking exchange of information is one of the main problems, why business processes do not run optimal. Very often you will find human factors as a reason JIT manufacturing and outsourcing are creating many more shipments to a wider variety of destinations. The likelihood of breakdowns increases. Logistical applications and optimizations

  47. Applications tasks to assure process integration Which logistical consequences emerge through a missing Process integration?  Work Arounds  Badly designed Process flows  Additional Manual effort for coordination Which costs arise through a missing Process integration?  Costs for individual Interfaces  Costs for necessary modifications What should already be considered during a project planning ?  Cost analysis for the Process Integration  Detailed functional Process analysis  Preliminary Study Logistical applications and optimizations

  48. Applications tasks to assure process integration • Process Integration is surely not given by creating interfaces between individual solutions afterwards, Process Integration is part of the System planning process • Process Integration is more than a try to connect two different Plugs, but rather a complex Challenge where the interactive details of a lot of components have to be identified and where the following implementation has to be kept in mind Logistical applications and optimizations

  49. What isSupply Chain Event Management (SCEM)? SCEM is a solution to MONITOR and CONTROL Supply Chain Processes. It enables to react to events • immediately, • over heterogenious systems, • over company boundaries. Logistical applications and optimizations

  50. What isSupply Chain Event Management (SCEM)? SC Event Management consists of four steps: Define: Event Profiles for business processes Monitor: Event Messages Notify:Actual and coming Problems by As-Is Comparison Control: by manual Interference, automatically, Logistical applications and optimizations • SAP AG 2001, SCEM, Andreas Otto 51

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