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 / WholesaleFG -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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