EGN 5623 Enterprise Systems Optimization

PROFESSIONAL MSEM

SAP SCM Design & Implementation

GLOBAL BIKE COMPANY

(GBI-011)

Team Members:

Alexander Hurtado

Franibel Valette

Heidi Riesgo

Boni Canovas

Executive Summary

Global Bike International (GBI) is an international manufacturer of quality bicycles with operation in Germany and the US. This company produces one brand of bicycle with three styles, a standard, a comfort bike and an Elite bike. The company has a close relationship with its three suppliers who supply all the raw materials needed for manufacturing needs.

This project intended to design, implement, and ultimately optimize a Supply Chain Management (SCM) System using SAP Advanced Planner and Optimizer (APO). The project aims to implement a SAP system to connect and optimize the movement of goods or materials between vendors, plants, distribution center, and customer. The modeling and implementation of the supply chain is presented to GBI.

At the end of this project our team successfully completed the design, implementation and deployment activities for its multi-tier supply network operation. However, some minor errors were found throughout the implementation. None of them were catastrophic errors and we were able to continue to the end of the implementation.

Table of Content

1. Company Overview 6

1.1 Mission Statement 6

1.2 Vision Statement 6

1.3 Values 6

2. Project Scope 7

2.1 Design and Implementation 7

2.2 Strategy 7

2.3 Constraints 7

3. Business Process 8

3.1 Operation Mode 8

3.2 Business Network 8

3.2.1 Plant: 8

3.2.2 Vendors: 8

3.2.3 Customers: 9

3.2.4 DCs: 9

3.2.5 Finished Products: 9

3.2.6 Semi-finished products: 9

3.2.7 Raw material: 9

3.3 Sales Process 10

3.4 Production Process 12

3.5 Procurement Process 13

3.6 Products and Materials 14

4. System Modeling 15

4.1 IDEF0 15

4.1.1 IDEF A0 15

4.1.2 IDEF0 High Level 16

4.1.3 IDEF A1 17

4.1.4 IDEF A2 18

4.1.5 IDEF A3 19

4.1.6 IDEF A4 20

4.1.7 IDEF A5 21

4.2 Object Model 22

4.3 Dynamic Models 23

5. SAP Implementation 26

6. Conclusion 101


List of Figures

Figure 3.11: Global Bike Business Process 8

Figure 3.31: Sales Process 11

Figure 3.41: Production Process 12

Figure 3.51: Procurement Process 13

Figure 3.61: Products and Materials Process 14

List of Tables

Table 1.31: Material Prices and Description 10

1.  Company Overview

Global Bike International (GBI) is an international manufacturer of quality bicycles with operation in Germany and the US. The US operation had 1 plant with 2 distribution centers. GBI produces one brand of bicycle with three styles, a standard, a comfort bike and an Elite bike. The company has a close relationship with its three suppliers Great Lakes Bike Supply, International Bike Supplier and Shen Bikes & Associates who supply all the raw materials needed for manufacturing needs.

1.1  Mission Statement

To create a stable and reliable bicycle retail network.

1.2  Vision Statement

To deliver leading edge bicycles in a prompt and efficient manner utilizing creative ideas and solutions.

1.3  Values

Global Bike’s values integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. Global Bike holds accountability to its customers, shareholders, partners, and employees by honoring its commitments, providing results, and striving for the highest quality.

2.  Project Scope

The objective of this project is to design, implement, and ultimately optimize a Supply Chain Management (SCM) System using SAP Advanced Planner and Optimizer (APO). The project aims to implement a SAP system to connect and optimize the movement of goods or materials between vendors, plants, distribution center, and customer. The modeling and implementation of the supply chain is presented to Global Bike International Company (GBI).

2.1  Design and Implementation

The basic Global Bike International Company requires expansion; therefore, a vendor and a customer will be added to the ERP and the SCM Systems. Tools like the IDEF models, object model and dynamic models will aid the team to succeed during the design phase. The IDEF models will capture how the company works. The object and dynamic models define all the data needed to run the company within SAP ERP and SAP SCM.

The master data as well as the configuration, integration models and transactional data to both systems will be created, modified, and transferred. In order to test the system, the supply network planning will be run using heuristics in the APO module of SAP SCM. Last, the shipment will be deployed with the Transportation Load Builder (TLB).

2.2  Strategy

GBI strives to expand its sales and growth by working with suppliers to get the best possible price for raw materials and passing those saving on to the consumer. In order to do this, we intent to create reasonable cross-location plans for the flow of materials along the supply chain, taking into account constrains and penalty costs.

2.3  Constraints

Among the most significant constraints we have allocated the availability of materials, work center, storage, and transportation.

3.  Business Process

3.1  Operation Mode

The Operation Mode of Global Bike Co. is Make-To-Stock.

Figure 3.11: Global Bike Business Process

3.2  Business Network

3.2.1  Plant:

11A1 (USA) with 1 assembly line in the plant:

3.2.2  Vendors:

US – 100307 Shen Bikes & Associates – Miami, FL

US - 100012 Great Lakes Bike Supply – Mount Pleasant (Michigan – MI)

US - 100112 International Bike Supplier – Albany (New York – NY)

3.2.3  Customers:

US – 303 Chen Bikes & Associates Customer: Lake Worth, FL

US – 12 Mt Baker Biking Company – Bellingham (Washington – WA)

US – 112 King Bike Company – Tupelo (Mississippi – MS)

3.2.4  DCs:

US - 11A2 Bike DC1 – San Diego (California – Ca)

US - 11A3 Bike DC2 – Miami (Florida – Fl)

3.2.5  Finished Products:

FG – 0011 - 11 Elite Bike

FG – 0020 – 11 Ridge Front Std

FG – 0021 – 11 Ridge Front Komfort

3.2.6  Semi-finished products:

SF – 0010 – 11 Front Wheel

SF – 0020 – 11 Rear Wheel

SF – 0030 – 11 Saddle

SF – 0031 – 11 Komfort Saddle

SF – 0040 – 11 Handle

SF – 0050 – 11 Handle Bar

3.2.7  Raw material:

RM – 0011 – 11 Front Wheel Assembly

RM – 0022 – 11 Rear Wheel Assembly

RM – 0090 – 11 Post

RM – 0100 - 11 Seat

RM – 0101 - 11 Komfort Seat

RM – 0110 - 11 Clip

RM – 0120 - 11 Bell

RM – 0130 - 11 Clasp

RM – 0140 - 11 Hi bar

RM – 0150 - 11 Pedal

RM – 0160 - 11 Break Kit

3.3  Sales Process

There are two distribution channels:

·  Internet Sales

·  Wholesale

The pricing is different in each distribution channel. They are shown in the

Table 1.31: Material Prices and Description

Material / Description / Internet Sale / Wholesale
FG -0011-11 / Elite Bike
FG-0020-11 / Ridge Front Std / 390 USD / 399 USD
FG-0021-11 / Ridge Front Komfort / 450 USD / 549 USD

Figure 3.31: Sales Process

3.4  Production Process

Figure 3.41: Production Process

3.5  Procurement Process

Figure 3.51: Procurement Process

3.6  Products and Materials

Figure 3.61: Products and Materials Process

4.  System Modeling

4.1  IDEF0

4.1.1  IDEF A0

4.1.2  IDEF0 High Level

4.1.3  IDEF A1

Perform Supply Chain Planning:


4.1.4  IDEF A2

Perform Demand Planning:

4.1.5  IDEF A3

Perform Supply Network Planning:


4.1.6  IDEF A4

Run Deployment:

4.1.7  IDEF A5

Preform Transportation Planning:

4.2  Object Model

4.3  Dynamic Models

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