Summary Operational
Excellence
Luna Leyman
Artevelde University College
2017-2018
,Table of Contents
Chapter 1: ERP ............................................................................................................................................... 3
What is ERP? .................................................................................................................................................. 3
In the old days ............................................................................................................................................... 3
Introducing ERP ............................................................................................................................................. 4
Master data ................................................................................................................................................... 5
Big data .......................................................................................................................................................... 5
Software suppliers ......................................................................................................................................... 5
Chapter 2: SD ................................................................................................................................................. 7
SD organisational structure ........................................................................................................................... 7
SD master data .............................................................................................................................................. 8
Customer master data ............................................................................................................................... 8
Material master data ................................................................................................................................. 8
Material master data ................................................................................................................................. 9
Condition master data (pricing) ................................................................................................................ 9
Output ..................................................................................................................................................... 10
SD processes ................................................................................................................................................ 10
Generic sales process .............................................................................................................................. 10
Selection process ..................................................................................................................................... 11
Transaction process................................................................................................................................. 12
Characteristics of processes ........................................................................................................................ 14
Chapter 3: MM (purchase department) ...................................................................................................... 16
MM organisational structure ...................................................................................................................... 16
MM master data.......................................................................................................................................... 16
MM processes ............................................................................................................................................. 18
Produce-to-pay process........................................................................................................................... 18
Purchase requisition ................................................................................................................................ 18
Purchase order ........................................................................................................................................ 20
Goods receipt .......................................................................................................................................... 21
Invoice processing ................................................................................................................................... 22
Categories of goods and services ................................................................................................................ 23
Chapter 4: PP (production planning) ........................................................................................................... 25
Production planning .................................................................................................................................... 25
1
, Step 1: forecasting................................................................................................................................... 25
Marketing process ............................................................................................................................... 26
Step 2: SOP (sales & operation plan)....................................................................................................... 26
Step 3: demand management ................................................................................................................. 27
Step 4 & 5: MPS & MRP ........................................................................................................................... 27
Supply planning process ...................................................................................................................... 28
Level vs chase production .................................................................................................................... 28
Step 6: manufacturing execution process ............................................................................................... 29
Production planning and execution ............................................................................................................ 30
PP organisational structure ..................................................................................................................... 30
PP master data ........................................................................................................................................ 30
PP processes ............................................................................................................................................ 32
Production planning and execution .................................................................................................... 32
Output of MRP......................................................................................................................................... 33
Different types of orders ......................................................................................................................... 33
Production process .................................................................................................................................. 33
Release production order ........................................................................................................................ 34
Prepare .................................................................................................................................................... 34
Stage and setup ....................................................................................................................................... 35
Produce ................................................................................................................................................... 35
Complete ................................................................................................................................................. 36
2
, Chapter 1: ERP
What is ERP?
• ERP
❖ Enterprise
❖ Resource
❖ Planning
• Business processes
❖ Different types of businesseses
➢ Service oriented business
➢ Production environmental business
❖ Create organisational structure
❖ Streamline activities and communication
❖ Make process repeatable and robust
❖ Add value
In the old days
• ERP not available
• Process explained
3
Excellence
Luna Leyman
Artevelde University College
2017-2018
,Table of Contents
Chapter 1: ERP ............................................................................................................................................... 3
What is ERP? .................................................................................................................................................. 3
In the old days ............................................................................................................................................... 3
Introducing ERP ............................................................................................................................................. 4
Master data ................................................................................................................................................... 5
Big data .......................................................................................................................................................... 5
Software suppliers ......................................................................................................................................... 5
Chapter 2: SD ................................................................................................................................................. 7
SD organisational structure ........................................................................................................................... 7
SD master data .............................................................................................................................................. 8
Customer master data ............................................................................................................................... 8
Material master data ................................................................................................................................. 8
Material master data ................................................................................................................................. 9
Condition master data (pricing) ................................................................................................................ 9
Output ..................................................................................................................................................... 10
SD processes ................................................................................................................................................ 10
Generic sales process .............................................................................................................................. 10
Selection process ..................................................................................................................................... 11
Transaction process................................................................................................................................. 12
Characteristics of processes ........................................................................................................................ 14
Chapter 3: MM (purchase department) ...................................................................................................... 16
MM organisational structure ...................................................................................................................... 16
MM master data.......................................................................................................................................... 16
MM processes ............................................................................................................................................. 18
Produce-to-pay process........................................................................................................................... 18
Purchase requisition ................................................................................................................................ 18
Purchase order ........................................................................................................................................ 20
Goods receipt .......................................................................................................................................... 21
Invoice processing ................................................................................................................................... 22
Categories of goods and services ................................................................................................................ 23
Chapter 4: PP (production planning) ........................................................................................................... 25
Production planning .................................................................................................................................... 25
1
, Step 1: forecasting................................................................................................................................... 25
Marketing process ............................................................................................................................... 26
Step 2: SOP (sales & operation plan)....................................................................................................... 26
Step 3: demand management ................................................................................................................. 27
Step 4 & 5: MPS & MRP ........................................................................................................................... 27
Supply planning process ...................................................................................................................... 28
Level vs chase production .................................................................................................................... 28
Step 6: manufacturing execution process ............................................................................................... 29
Production planning and execution ............................................................................................................ 30
PP organisational structure ..................................................................................................................... 30
PP master data ........................................................................................................................................ 30
PP processes ............................................................................................................................................ 32
Production planning and execution .................................................................................................... 32
Output of MRP......................................................................................................................................... 33
Different types of orders ......................................................................................................................... 33
Production process .................................................................................................................................. 33
Release production order ........................................................................................................................ 34
Prepare .................................................................................................................................................... 34
Stage and setup ....................................................................................................................................... 35
Produce ................................................................................................................................................... 35
Complete ................................................................................................................................................. 36
2
, Chapter 1: ERP
What is ERP?
• ERP
❖ Enterprise
❖ Resource
❖ Planning
• Business processes
❖ Different types of businesseses
➢ Service oriented business
➢ Production environmental business
❖ Create organisational structure
❖ Streamline activities and communication
❖ Make process repeatable and robust
❖ Add value
In the old days
• ERP not available
• Process explained
3
