Operate a Manufacturing Company (Case Study 2) (Rounds 2 and 4) Part 2 EGN 5621 Enterprise Systems...
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Transcript of Operate a Manufacturing Company (Case Study 2) (Rounds 2 and 4) Part 2 EGN 5621 Enterprise Systems...
Operate a Manufacturing Operate a Manufacturing Company (Case Study 2)Company (Case Study 2)
(Rounds 2 and 4)(Rounds 2 and 4)Part 2Part 2
EGN 5621 Enterprise Systems CollaborationFall, 2011
New product developmentNew product development
New product developmentNew product development
Review of the major rulesReview of the major rulesYou may not change the recipe of a product
if you are still carrying inventoryCustomers 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 timesThe 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.
Elements of a winning strategyElements of a winning strategy
Use the ERP system efficientlyDo not run out of stockDo not lose your production capacitySetup right prices for different products
at different distribution channelsTeam organization is more important
DC10: HypermarketsDC10: Hypermarkets
Buy only large boxes (1 kg)Payment delay of 20 stepsMore sensitive to priceLess sensitive to advertisingWill have a stronger preference for 3
particular products during the simulation
DC12: Grocery chainsDC12: Grocery chains
Buy small boxes (0.5 kg) and large boxes (1 kg)
Payment delay of 10 to 15 steps
Will have a stronger preference for 4 particular products during the simulation
DC14: Independent grocersDC14: Independent grocersOnly buy small boxes (0.5 kg)Less price sensitiveSensitive to advertisingPayment delay of 5 to 15 stepsWill have a stronger preference for 3
particular products during the simulation
Production improvementsProduction improvements
Warehousing cost, Warehousing cost, automatically automatically chargedcharged
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 bagsAdditional warehouse space can be rented:
◦100,000 boxes (or part thereof), @ € 200/step (less than € 0.01 per box per step)
◦100,000 kg (or part thereof), @ € 350/step (more expensive because it's raw food product)
◦100,000 boxes AND/OR bags (or part thereof), @ € 50 step
Risk premium on credit ratingsRisk premium on credit ratings
Production planning decisionProduction planning decision
Lot size decision (MM02)Lot size decision (MM02)
Procurement decisionProcurement decision
Production execution decisionProduction execution decision
Production improvement decisionProduction improvement decision
Pricing decisionPricing decision
Marketing decisionMarketing decision
Tasks for the Manufacturing Case Tasks for the Manufacturing Case Study (Rounds 2 and 4)Study (Rounds 2 and 4)
No Roles Functions Transaction Code
1 CEO Financial statement F.01Price market report ZMarketSummary sales report ZVC2
Sales & Marketing Sales order report ZVA05Summary sales report ZVC2Price market report ZMarketMarketing expense ZADSChange price VK32
3 Production & Planning Forecast – create planned independent Requirements
MD61
MRP run MD01Release production orders CO41Modify BOM ZCS02Monitor production schedule ZCOOISProduct cost analysis ZCK11Check RM cost per Prod. order ZKSB1
4 Procurement Management Automatic generate of POs ME59Track PO report ZME2NMRP results display MD07
Warehouse Management Check stock level MD04Inventory report ZMB52
2
Raw material cost per PORaw material cost per PO
Check Production Cost (ZCK11)Check Production Cost (ZCK11)