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Enterprise

Resource Planning
(ERP)

What is Enterprise Resource Planning


(ERP)?
How ERP systems are implemented within
companies?
Companies before ERP Systems
EMU Real Case Example

Companies after ERP Systems


EMU Real Case Example
Sap Program Structure in Printing Process

E.M.U. ERP Systems


ERP Software Companies
Istanbul Fast Ferries (IDO) Uses SAP
How Engineers benefits from ERP systems?
SAP shareholders

COMPUTER INTEGRATED
MANUFACTURING - CIM
"CIM is the integration of total
manufacturing enterprise by using
integrated systems and data
communication coupled with new
managerial philosophies that improve
organizational and personnel efficiency."

Subsystems of CIM operation:


CAD/CAM (Computer-aided design/Computer-aided
manufacturing)
ERP (Enterprise resource planning)
CAPP, (Computer-aided process planning)
CNC (computer numerical control) machine tools
DNC, direct numerical control machine tools
FMS, flexible machining systems
ASRS, automated storage and retrieval systems
AGV, automated guided vehicles
Robotics
Automated conveyance systems
Computerized scheduling and production control
CAQ (Computer-aided quality assurance)
A business system integrated by a common database.
Lean Manufacturing

What is Enterprise
Resource Planning (ERP)?
ERP is an enterprise-wide information
system designed to coordinate all the
resources,
information,
activities needed
to complete business processes such as;
order fulfillment
billing.

How ERP Systems


Works?
A typical ERP system would use multiple
component of computer software and
hardware to achieve integration
ERP delivers a single database that
contains all data for the software module

n
r
a
e
n
Dr
c
Da
ec
e
n
ers
n
d
rsa
ed
a
e

Solutions of ERP

Financial Management
Inventory Management
Purchasing
Sales Management
Production Planning
Advanced Visual Planning
Manufacturing Management

How ERP systems are


implemented within
companies?
ERP Software Companies start analysing
the prospective company(s), identifing
their individual needs.
Setup of ERP systems

For Mid-size companies 5-12 months


Large Companies 6-18 months

Companies before ERP


Systems

Example of EMU
Industrial Engineering Faculty wants to
buy a new Printer.
For this reason Secretary gives a
purchasing order by filling purchasing
order forms.
Next slide shows how this purchasing
request process flow was working before
ERP systems.

New Printer Purchasing


Process
1. Purchase order form for a new printer
2. Head of Department Confirmation- Faculty Head
3. Purchase order document sent to E.M.U. Account Office
4. Account Office Secretary sents the purchase order to the Responsibles
5. Purchase order- Responsible personal Confirmation
6. Purchasing department- Manager Confirmation
7. Transfer to Finance Department Secretary for processing
8. Finance Department Responsibles Confirmation
9. Transfer to Rectors Office
10. Rectors Secretary- Confirmation
11. Confirmation Transfer, to Purchase Department Secretary
12. Purchase Responsible personal commends with Purchase:

Example: Before ERP Systems


Tran
sf

er to
Ac
Offic countin
g
e

ce
n
a
n
Fi
o
t
fer rtmen
s
n
Tra Depa

Trans
fer to

Secretarys New printer


application

Mana
ger

Transfer to
Accounting Office

Companies after ERP


Systems

Example E.M.U. IE
Faculty
Industrial Engineering Faculty wants to
buy a new HP Printer.
For this reason Secretary gives a
purchasing order with using E.M.U.
Online ERP systems.
Next slide shows the purchasing order
process flow with ERP Systems.

E.M.U. After ERP


Systems

In this real case there the benefits


of the ERP systems

Online Data Flow decreases the process time


Fast & Online Confirmation
Less Paperwork
No need for folder storage
Database Security
Less Employee needed
Easy Financial Management
Better Inventory Management

Example E.M.U. IE
Faculty
One of instructor gives printing order to
the secretary.
Next slides shows the process flow and
how the system works step by step.

SAP Program Structure in Printing Process


Open program
Request Form is selected for Printing Office.
ess
c
o
pr
ng f the
i
t
n
Secretary confirms on the SAP program
pri list o
e
h
t
the r.
en
Th ps to cente
dro ting
n
pri

secretary receives a code from program

signed
After
signin
g th

e pap
er the

form
i

numbe
r is se
instru
nt to in
ctor fi
st
l
l
e
w or k
d a sm ructor and
all pap
er

s sen

t to s
ecret
ary

Printing Process Flow Diagram

Printout Process of IE
Department

Secretary of the department opens SAP page.

User
Password
Sign In

1. security step 1 is for


IE DEPT
2. security step 2 is
for Administrator.

EMU Information Department

Purchasing & Inventory Control Management

Create Request
Editting

Managerial Unit Request

Confirmation
Request List
Printout

After Second step menu is shown

3. Request Form is selected for Printing


Office.
4. Then, title of the request, course code,
instructor name, work category, and
office telephone number is filled by
secretary

Printing Department Request Form

User

Subject of Request
Printout

Materials will be selling in bookstore

Work type

Next
Name Surname
Definitions

Phone

5.Secretary receives a number (code) from program.


6.This number is sent to the instructor and the
instructor fills a short form.
7.After he/she signed the paper the form is sent to the
secretary;
8.Secretary confirms on the SAP program.
9. Accounting office is informed and cost is calculated,
check to see if Industrial Engineering has the
required budget. After approval
10.Then the printing process drops to the list of the
printing center.
11. Inventory management is informed.
12. Purchasing Office is informed simultaneusly.

EMU ERP SYSTEMS


6.00cc SAP
ORACLE 10.2

MM MODULE

Material Management

FI MODULE

Financial Management

CO MODULE

Controlling Operations

AA MODULE

Asset Accounting

FM MODULE

Funds Management

What is SAP MM?


SAP MM (Materials Management)
SAP MM is a module is used for Procurement Handling
and Inventory Management.
The module has two important master data - material
and vendor.
Broadly, the various levels that can be defined for a
SAP MM implementation are:
Client,
Company Code,
Plant,
Storage Location,
Purchase Organization.

Material Management ( MM )
LOGICAL STRUCTURE

vendor

supplier

production

Distribution

customer

SAP FICO
Financial Accounting (FI) Module

The SAP FICO module includes 2 major categories;


Financials (FI)
Controlling (CO)
FI (Financial Accounting) module includes;

Accounts payable
Accounts receivable
General ledger

Controlling (CO) Module


The CO (Controlling) Module has multiple configuration
steps that must be followed for complete implementation
of this module.

Cost Center
Order Management
Commitment Mgt
Profit Analysis
Acty-Based Costing

ERP Software Companies


& Marketshares
Software

Market Share

SAP

15.6

Peoplesoft

4.9

Oracle

4.8

Baan

3.0

CA

3.0

JDE

2.2

SSA

2.1

GEAC

2.0

IBM

1.8

JBA

1.7

Others

59.0

Istanbul Fast Ferries (IDO)


Uses SAP Software

Istanbul Fast Ferries


(IDO)
Annually 91 million passanger
Annually 5,5 million vehicles
Dailly 1,200 navigation capacity
90 Ships
82 Terminals
3,200 personel
314 Million YTL endorsement

PASSANGER
MAINTENANCE

SAP CENTER

FUEL

EMPLOYEE

PASSANGER
PASSANGER

SAP Systems arranges relationship between;

shipping conditions,
route determination,
shipping point,
employee conditions,
fuel supply,
maintenance

Combine these variables in order to


determine optimal transportation mode and
service levels.

Controlling Module (CO)


IDO passanger can send SMS to IDO
SAP system and get the information
about shipping route times.
This process is a service of Controlling
Module.

Istanbul Fast Ferries


SAP SYSTEMs first step
PM

Plant Maintanance

MM MODULE

Material Management

CO-CCA MODULE

Controlling Operations

FI MODULE

Financial Management

FI-AA MODULE

Asset Accounting

FM MODULE

Funds Management

HR-PA

Human Resource- Professional


Association

PM - Plant Maintenance

Equipment and Technical Objects (PM-EQM)


Preventive Maintenance ( PM-PRM)
Maintenance Order Management (PM-WOC)
Work Clearance Management (PM-WCM)
Information System (PM-IS)
Workflow Scenarios (PM/CS)

Istanbul Fast Ferries


SAP SYSTEM 2nd step
TR-CM

Data Adjustment in Cash Management

TR-TM

Treasury Management

HR-PD

Human Resources Performance Evaluation

CO-PA

Profitability Analysis

WF

Work Flow

Istanbul Fast Ferries


BENEFITS OF SAP SYSTEM FOR IDO
Increased efficiency of whole system,
Prevented from the same procedures repetition,
Easy access of any information from the huge
databank,
Easy tracking and control of past transactions,
Standardization of transactions and information
security, and
Measurable timing of transactions and delagation.

How can Engineers benefit


from ERP systems ?

Usesful SAP Modules for


Engineers
MM- Material Management
Better Procurement Handling
Orginized Inventory Management
Easy Purchase Organization
Faster Storage Location

PM Plant Maintenance
Maintenance Order Management
Equipment and Technical Objects Coordination
Preventive Maintenance
Workflow Scenarios
Work Clearance Management

MM Information System

PUR
CHA
SING
SYS
INFO
E
PuT
rchM
a
sing

grou
Vend
p
or
Mat
eria
l gro
up
Mat
eria
l
ABC
an al
ysis

MM

K
C
L
O
O
R
n
ST N
o
OducTti
ro
PC
se
pha

age
Stor
rial
Mate
h
Batc
s
alysi
n
a
ABC
alue
v
k
c
Sto
ning
n
a
l
P
ible
Flex lysis
ana

Material management system is feed


by the information that comes from ;
- purchasing information system and ,
- stock control

OUTPUTS of ERP Systems


DOCUMENTS
Print
er

Proposal

Fax

Orders approval
Delivery plans
Shipping papers

Telex

Warehouse check list


Material document

Mail

Accounting document
Delivery/shipping
document

Teletex
t

Invoice
Dept & credit doc.

EDI

SAP Packet Providers

SAP Packet Providers

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