what's ERP, why SAP and what's its modules, advantages, History and industries.
how it manage Supply chain and integrate with other systems...
that's we're gonna to explain in this presentation.
2. Business without ERP
Customers
Customer
Calls to place
order for a
Car
1
Sales
office/Inventory
contacts PP
3
Sales office
contacts
Inventory
2
Production
Planning
Inventory
3
4
PP contacts
Purchasing for
raw material
Purchasing
Sales
7. MEANS WELL ESTABLISHED ORGANISATION
ACTIVITIES
1) WHEN A TRANSACTION MEANS GIVEN AKEN PLACE
2) WHEN CUSTOMER GET THE SATISFICATION
3) WHERE THE RESOURCES ARE AVAILABLE FOR PEOPLE NEEDS
RESOURCES
1) MONEY
2) MEN
3) MACHINES
4) MATERIAL
PLANNING
PROPER PLANNING AND OPTIMIZATION OF THE VALUABLE RESOURCES MAKE ENTERPRISE
RUN IN TO PROFITS
ENTERPRISE HAVING
8. Enterprise Resource Planning
Benefits:
All applications access common data.
Eliminates the duplication, discontinuity and redundancy in data
Faster and cheaper
The whole system is designed to be real-time and not historical
Satisfying Partners/Customers
Reducing required manpower
Accounting is done automatically by events in sales and production.
Sales can see when products can be delivered.
Delivers quality information to produce a quality enterprise
15. Why SAP
User friendly (layouts and Reports)
Improves productivity
Reduces cost by increasing flexibility.
Supports pest practice.
Optimize IT spending.
Provide immediate access to enterprise information
17. History of SAP
German company founded in 1972 by 5 ex- IBM engineers,
Wellenreuther, Hopp, Hector, Plattner and Tschira
Renamed in 1977 to be Systems Applications and Products in Data Processing
(German : Systeme, Anwendungen, Produkte in der Datenverarbeitung)
Before 1977 : Systems Analysis and Program Development
(German : Systemanalyse und Programmentwicklung)
18. Facts about SAP
10 million users, 30,000 installations, 1000 partners, 21 Industry
solutions. 95% of the top 100 German companies use SAP.
SAP is the fourth largest software company in the world.
SAP today is available in 46 country- specific versions, incorporating
28 languages.
At the heart of SAP R/3 are about 10,000 tables which control the way
the processes are executed.
Three systems developed : R/1, R/2, R/3
20. SAP R/1 , R/2
The R/1 system
Developed for ICI Chemical
Released 1972
Focused on Sales & Distribution and Materials Management
Discontinued after release of R/2
R/2
Basis System
The R/2 system
Reorganized as leading mainframe software for large
multinational corporations
No sales effort planned – reactive only
4,300 copies worldwide in 1993
Mainframe-based to replace user legacy software;
co-existence and migration strategy underway for R/2 and R/3
Keeping in mind its multinational customers, SAP designs SAP
R/2 to handle different languages and currencies.
Note: "R" stands for real-time data processing.
21.
22. SAP R/3 : 3 Tier Architecture
Those SAP R/3 software components that
specialize in the management , storage and
retrieval of data form the Database Layer
The Database Layer
Those SAP R/3 software components that
specialize in processing business
applications form the Application Layer.
The Application Layer
Those SAP R/3 software components that
specialize in interacting with end-users
form the Presentation Layer.
The Presentation Layer
23. SAP R/3 : 3 Tier Architecture
The Database Layer
components are installed on
high-end database server.
The Application Layer
components are installed
across one or more high-
end servers.
Presentation Layer components are installed across many PCs
24.
25. SAP High Tech & Electronics
SAP Consumer Products
SAP Transportation
SAP Public Sector
SAP Telecomm.
SAP Chemicals
SAP Pharmaceuticals
SAP Retail
SAP Banking
SAP Industry Solution
SAP Engineering & Construction
SAP Oil & Gas
SAP Utilities
SAP Health Care
SAP Automotive
SAP Media
SAP Aerospace & Defense
SAP Service Providers
...
Business
Information
Ware-
house
Sales
Force
Auto-
mation
B2B
Procurement
Advanced
Planner &
Optimizer
R/3
26. SAP R/3 Conceptual Areas
Application Area
(Initiate and execute
SAP transactions)
(Functional)
Basis Area
(The technical
administration of
the system)
(Authorizations/Ids)
Development Area
1. A developer’s
Workbench
2. Create & Test
ABAP/4 programs)
ADVANCED
BUSINESS
APPLICATION
PROGRAMING
SAP Conceptual Areas
27. System Landscape in R/3
ProductionDevelopment Quality Assurance
Transport group Transport group
PRODQTST TRNGTEST CUST
SAND
28. Mapping of business processes
Proven approach
Reduced costs
Ensured quality and know-how transfer
Efficient use of resources
Reusable for subsequent implementation phases
Accelerated SAP
SAP Implementation Methodology
29. PROJECT
PREPARATION
Define Goals & objective
Clarify Scope
Strategy, schedule
Resources
BUSINESS
BLUEPRINT
Requirement workshops
Document business process
Define Baseline scope
Refine overall schedule
REALISATION System Implementation
Testing
Release it for production
FINAL PREPARATION
Testing
End user training
System management
Cut over activities
GO LIVE & SUPPORT Pre production to live production
Support organisation
ASAP tools are tailor-made for:
an effective, fast, and well-organized SAP R/3 implementation.
31. SAP R/3 Application Modules
Financial accounting (FI)
Controlling (CO)
Asset management (AM)
Materials management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality management (QM)
Plant maintenance (PM) & Customer Service (CS)
Project system (PS)
Human resources (HR)
Workflow (WF)
32. MM
Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification
PP
BOM/Work Center
Routing/ MRP
Capacity Evaluations
Production Orders
QM in production
SD
Inquiry processing
Sales Order Processing
Delivery Processing
Billing
FI
General Ledger
Accounts Payable
Accounts receivable
Cash management
CO
Cost Center Accounting
Product Costing
Order Contribution Analysis
SC Modules
Financial Modules
33. • External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
with a user-defined Chart of Accounts
• Key elements
• General ledger
• Accounts payable
• Accounts receivable
• Asset Management
• Special Purpose Ledger (FI-SL)
• Legal consolidation
• Accounting Information System
Module FI – Financial Accounting
34. Financial Accounting
Consolidation
Extended General Ledger
Payables
Receivables
Bank
accounts
General Ledger
Cash management
and forecast
Foreign exchange
management
Management
of secureties
and loans
Finance information
system
Bank
Invoice
verification
Accounts
payable
Credit
management
Accounts
receivable
35. • Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting
• Product cost Planning
• Product Costing
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling
Module CO – Controlling
36. • Optimize tasks/activities in
• Sales
• Delivery
• Billing
• Key elements of the SD application module include :
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Warehouse management
• Billing
• Credit Management
• Sales Information system
Module SD – Sales and Distribution
40. Materials Management
Service /
spare parts
Material
Special stock
Batch
Vendor/one-time
customer
Purchasing
info record
Service
specifications
Workflow
Optical archive
Texts
Mail
Communication
Classification
Documents
Conditions
BASIC DATA
Purchasinginformationsystem
Vendorevaluation
Purchase requisition
PURCHASING
MRP
Direct requisition
Release procedures
RFQ/Quotation
Material/service
Price comparisons
Price comparison list
Purchasing
Purchase orders
Outline agreements
Scheduling agreements
Goods receipt/issue
Transfer posting
Quantities and values
Physical inventory
Storage bins
Check and post
Price update
INVENTORY MANAGEMENT
INVOICE VERIFICATION
SD
PP
PM
QM
FI
AM
CO
PS
Third-party
order
Requirements
Inspection lot
Fixed assets
Cost center /
Budget
Project
G/L accounts
Cash management
and forecast
Service/
Spare Parts
41. • To plan and control the manufacturing activities
• Key elements
• Bill of Material (BOM)
• Routings
• Work Centers
• Sales and Operations planning (SOP)
• Master Production Scheduling (MPS) – Capacity Planning
• Materials Requirement Planning (MRP)
• Shop Floor Control (SFC)
• Production orders
• Product costing, activity-based costing
• Work in process
• Kanban
• Production planning for process industries (PP-PI)
• Repetitive Manufacturing
Module PP – Production Planning
45. • Supports
• Quality planning
• Inspection
• Control for manufacturing
• Costing
• Procurement
• Key elements
• Quality planning
• Quality during procurement, production, distribution
• Quality Management Information - Quality inspection
• Information System (QMIS)
Module QM – Quality Management
46. • PS – Project Systems
• Support planning, control, & monitoring of long term highly complex
projects with defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
• Network Management
• Activity monitoring, Material Planning, Milestones, Capacities
Scheduling
• Project Management Information System
• HR – Human Resource
• Key elements
• Recruitment
• Payroll & Time management
• Travel Expense accounting & Benefits
• Workforce planning & Training administration
• Organization management
Module PS – Project System & HR – Human Resource
47. Evolution of SAP products
SAP R/3
my SAP
Solutions
my SAP
Business
Suite
50. mySAP Business Suite
MySAP PLM MySAP SCM
Operations
Corporate Services
mySAP HR
mySAP Financials
Application Platform ( Web As)
People Integration (Portal)
Information Integration( BI,MDM)
Process Integration (XI)
SAP NetWeaver
MySAP CRM MySAP SRM
51. For CRM solution
Who Sales ServiceMarketing Executives
What Service
Transact
Fulfill
Engage
Which way Internet Mobile Telephony
How Operational CollaborativeAnalytical
Workplace
Use a CRM
Solution to
complete
the Cycle
52. Key Components of mySAP SRM
• Strategic Sourcing
•Sourcing analytics: Helps provide analytics based on supplier location, line of
business
•Supplier evaluation: Helps you evaluate the supplier base within the
organization systems and external market places to identify and select supplier
to ensure reliable & uninterrupted supply
•Request for quotation and auctions: Provides electronic auctioning and bidding
tools to compress sourcing cycle times
•Contract management: Helps create and manage value and quantity contracts
• Operational Procurement
•Self-service procurement: Enables decentralizing procurement process within
organization, without diluting the control
•Plan-driven procurement: Enables automatic purchase order generation for
stock materials across the integrated supply chain
•Services procurement: Enables service procurement process to be
managed online
53. Key Components of mySAP
SRM….Contd.
• Supplier Enablement
•Supplier portal: Provides portal features for suppliers to manage their product
data and orders
•Supplier connectivity: Provides capability to connect multiple suppliers through
XM_-based document exchange
• Content Management
•Content consolidation: Provides capability to consolidate product and vendor
information
•Catalog content management: Provides capability to manage OCI compatible
catalog with tools for data import, data edit and a search engine
55. Typical SAP SCM Solution-scape
Core Interface
SAP R/3
Dominant source of
Master Data in SAP
SCM, destination of
transaction data like
planning outputs or
Availability Checks for
Execution systems
Planning system where
selective Master data
maintained and
sourced from R/3
SAP
SCM
Planning Outputs
include Forecasts,
SNP or PPDS Planned
Orders, Stock
Transfers and
Production Orders
Module includea
Demand Planning, SNP
& Deployment, PPDS,
GATP, TPVS and TLB
Transaction Data
Master Data
Legacy
Systems
BAPI
SAP CRM,
SAP SRM
and
SAP PLM
Core interface
58. SAP NetWeaver in Detail
SAP NetWeaver
People Integration
Application Platform
Process Integration
Information Integration
Multi-channel Access
Portal Collaboration
Master Data Management
Bus. Intelligence Knowledge Mgmt
Integration
Broker
Business Process
Management
Multi-channel Access
J2EE ABAP
CompositeApplicationFramework
LifecycleManagement
SAP Mobile Infrastructure
Tight coupling and alignment with SAP business solutions
SAP Enterprise Portal
Business packages
Collaboration
SAP Business information Warehouse
Business content
Tight integration to Sap
Open architecture (Crystal, Accentual )
Master Data Management
Coming in 2003
SAP Exchange Infrastructure
Proxy generation and mapping tools
Integration directory
SAP’s ability to execute
SAP Web Application Server
Proven, scalable, comprehensive toolsets
Leverage existing infrastructure/skillets
63. The purchasing organization is further subdivided
into purchasing groups (buyer groups), which are
responsible for day-to-day buying activities.
An organizational unit responsible
for procuring materials or services
for one or more plants and for
negotiating general conditions of
purchase with vendors.
1- Distribution Center
2- Production Facility ( Goods and
Services)
3- Maintenance Plant
This level represents an
independent accounting unit within
a client. Each company code has its
own balance sheet and its own
profit and loss statement.
A grouping or combination of legal,
organizational, business and/or
administrative units with a common
purpose.
Client
800
Company Code
1000
Plant 1000
Purchase
Organization 1000
Purchase Group
100
Purchase Group
101
Plant 1100
Company Code
2000
Plant 2000
Storage Location
2010
Batch
30042012
Organization Structure (MM perspective)
Purchase
Organizatio
n 3000
64.
65. Variants
Calendar
Public Holidays
Holiday Calendar
Factory Calendar
Unit of Measurements
Currencies
Currency codes (SAP maintains about 187 currencies)
Exchange Rate Type
Rounding rules
Global Settings (at Country level)