FIU

Engineering Management Program

EGN 5623 - Enterprise Systems Optimization

Fall 2013

Project Proposal

Professor: Dr. Chen Chin-Sheng

Lab instructor: Dr. Shen Qiansan

Student: Tzu Chun Yen

Sangeeta Duhan

Junior Charles

1.  Company Overview

NIKE, Inc. is the largest seller of athletic footwear and apparel in the world. It employs more than 33,000 people, internationally. Nike sells products in more than 180 countries around the world; it reported revenues of $19.2 billion for the fiscal year ending May 31, 2009. Nike designs and sells products in three main product lines; footwear, apparel and equipment. The products are manufactured in approximately 600 contracted factories in 46 countries around the globe. (NIKE-FY07-09, 2010)

1.1 Mission Statement

To bring inspiration and innovation to every athlete* in the world

*If you have a body, you are an athlete


1.2 Vision Statement

For every team to be high-performing, diverse, and inclusive

1.3 Values

Nike has guiding principles which it refers to as its “11 Maxims” which guide employees at all levels as they complete their work at Nike and represent the Nike corporation globally. The 11 Maxims which describe and shape the Nike culture are:

·  "It is our nature to innovate.

·  Nike is a company.

·  Nike is a brand.

·  Simplify and go.

·  The consumer decides.

·  Be a sponge.

·  Evolve immediately.

·  Do the right thing.

·  Master the fundamentals.

·  We are on the offense – always.

·  Remember the man. (The late Bill Bowerman, Nike co-founder)"

1.4 Organizational structure

2.  Project Scope

Nike has set as an important step on their growing operational activities, to integrate their operations into a Supply Change Management System (SAP). This will allow cost reduction, increasing innovation and improving customer service and responsiveness. SAP Supply Chain Management (SAP SCM) enables collaboration, planning, execution, and coordination of the entire supply network.

While internal systems exist for production planning, inventory management, purchasing, customers

and vendors, they are not integrated. The end goal of this project is to fully implement this system, create an automatic communication and live sharing of data within departments, and between external organizational units that comprise the supply chain, from the vendors of raw materials to our end customers.

3.  Products

FG-0020-10 (Nike Hyperfuse)

FG-0021-10 (Nike Pepper Low)

Finished Goods
FG / Description / Sales Org. / Delivering plant / Sales Price / Standard Price / Weight
FG-0020-10 / Nike Hyperfuse / UE12 / MI12 / $110 / $50 / 125 (g)
FG-0021-10 / Nike Pepper Low / UW12 / SD12 / $75 / $30 / 800 (g)
Raw Materials
Name / Description / Moving Price / Weight (g)
RW-01-10 / Laces / $0.1 / 30
RW-02-10 / Rubber / $1 / 500
RW-03-10 / Air Sole / $5 / 200
RW-04-10 / Leather / $4 / 800
Purchase Info Record
Vendor 125001 – Braids & Laces Ltd
Materials / Planned del. time / Purch. Group/ Org / Standard Qty / Net Price ($) / Record number
RW-01-10 / 2 / N12/ US12 / 3000 / 0.1 / 5300000030
Vendor 108000
RW-02-10 / 3 / N12/ US12 / 2000 / 1 / 5300000031
Vendor 125000 – EMCO Sole
RW-03-10 / 3 / N12/ US12 / 500 / 5 / 5300000032
Vendor 102000
RW-04-10 / 3 / N12/ US12 / 1000 / 4 / 5300000033
BOM
FG-0020 (Hyperfuse) / FG-0021 (Pepper Low)
Component / Quantity / Component / Quantity
RW-01-10 / 1 / RW-02-10 / 5
RW-02-10 / 10 / RW-04-10 / 10
RW-03-10 / 1
Routing
For both two finished goods (FG-0020-10 + FG-0021-10)
Operations / Work Center / Control key / Description
0010 / ASSY1000 / ASSY / Cutting and Sewing
0020 / INSP1000 / ASSY / Lasting and Heeling
0030 / PACK1000 / ASSY / Finishing and Treeing

FG-0020 (Group number: 50023073): (1) Time for Setup: 6 minutes for each operation

(2) Time for labor: 7 minutes for each operating

FG-0021(Group number: 50023074): (1) Time for Setup: 6 minutes for each operation

(2) Time for labor: 7 minutes for each operating

Product Version
FG Name / Production version name
FG-0020-10 / PV20
FG-0021-10 / PV21

4.  Customers

______

Customer Master / Sales Area
Customer name / Number / Search Term / Location / Sales Org / Channel / Division
Beantown Bikes / 5000 / 000 / Boston / UE12 / WH / BI
Northwest Bikes / 12000 / 000 / Seattle / UW12 / WH / BI
Nike Running (New) / 25001 / nike / LA / UW12 / WH / BI

Customer number 25001 (Long: -118.3568692/ Lati: 34.0713424)

5.  Vendorss

Vendor Master
Vendor name / Number / Search Term / Location
Rapid Nuts & Bolts / 108000 / 000 / Michigan
Boomtown Tire & Wheel / 102000 / 000 / Ohio
EMCO Sole (New) / 125000 / nike / Nebraska
Braids & Laces Ltd (New) / 125001 / nike / Idaho

Vendor number 125000 (Long: -96.7756103/ Lati: 40.8638228)

Vendor number 125001 (Long: -116.552455/ Lati: 43.544144)

6.  Supply Chain

Transportation Lanes:

(1)  Vendor to Manufacturing Plant:

Vendor 125000(Nebraska) Plant DL12 (Dallas)

Vendor 125001(Idaho) Plant DL12

Vendor 108000(Michigan) Plant DL12

Vendor 102000(Ohio) Plant DL12

(2)  Manufacturing Plant to Distribution Center

Plant DL12 DC MI12 (Miami)

Plant DL12 DC SD12 (San Diego)

(3)  Manufacturing Plant to Customers

Plant DL12 Customer12000 (Seattle)

Plant DL12 Customer 5000 (Boston)

Plant DL12 Customer 25001 (Los Angles)

(4)  Distribution Center to Customers

Customer 5000 Customer 5000

DC MI12 Customer 12000 DC SD12 Customer 12000

Customer 25001 Customer 25001

(5)  Distribution Center to distribution Center (Optional)

DC MI12 DC SD12