3. What is ERP?
ERP covers the techniques and concepts
employed for the integrated management of
business as a whole, from the viewpoint of the
effective use of management resources, to
improve the efficiency of an enterprise.ERP
software packages are integrated covering all
enterprise business functions.
4. Why do we need ERP?
To enable improve business performance
Cycle time reduction , Increased business agility ,Inventory reduction , Order
fulfillment improvement
To support business growth requirement
New products/product lines, new customers ; Global requirements including multiple
languages and currencies.
To provide flexible, integrated, real-time decision
support.
Improved responsiveness across the organization.
To eliminate limitation in legacy systems
Century dating issues ,Fragmentation of data and processing ,Inflexibility to change,
Insupportable technologies.
To take advantage of the untapped mid-market
Increased functionality at a reasonable cost,Client/server open systems technology,Vertical
market solutions.
5. Advantages Of ERP !
The indirect advantages include:
Better corporate image.
Improved customer goodwill.
Customer satisfaction.
The direct advantages include:
Improved efficiency.
Information integration.
Better decision making.
Faster response time to customer queries.
Business Integration.
Flexibility
Better Analysis and Planning Capabilities
Use of Latest Technology.
6. The cost of ERP Software, planning,
customization, configuration, testing,
implementation, etc is too high.
There maybe additional indirect costs like new IT
infrastructure, upgrading the WAN links, etc.
Migration of existing data to the new ERP systems
is always difficult to achieve as with integrating
ERP systems with other stand alone software
systems.
Disadvantages Of ERP !
7. Basis
ABAP/4 Programming
PS (Project Systems)
FI (Financial Accounting)
CO (Controlling)
HR (Human Resource)
SD (Sales and Distribution)
Logistics Information System
MM (Materials Management)
PM (Plant Maintenance)
PP (Production Planning)
QM - Quality Management
BW (Business Warehousing)
CRM (Customer Relationship Management).
Modules Of SAP !
10. Three-Tier ERP (SAP) Hierarchy
Access to Database:
(Read / Write data)
Database
Application
Presentation
Processing of data
using application logic
Presentation of the
processed data to
the user
Input / Output
of data to users
Central Database
(Storage of all data)
17. Sample SAP System Landscape
Development Testing Production
Databas
e
Servers
Applicatio
n
Servers
Presentation
Servers
18. Object Migration
Program A
Table A
Screen A
Program A
Table A
Screen A
Program A
Table A
Screen A
Development QA Testing Production
Corrections and Transport
19. Object Migration
Program A
Version 1
Program A
Version 2
Program A
Version 3
Program A
Version 1
Program A
Version 2
Program A
Version 3
Originals
Development QA Testing
Corrections
and
Transport
?
?
23. ASAP METHODOLOGY
• A=Accelerated
• This methodology explains steps & procedures to
follow for successful implementation of SAP in
Companies
24. SAP Partner & SAP Customer
• SAP Partner means SAP Consultancy firm
responsible for implementation of SAP.
• SAP Customer means the company where
SAP being implemented.
25. ASAP METHODOLOGY
1. Preparation
2. Business Blueprint
3. Configuration/Realization
4. Final Preparation
5. Go-Live & Support
6. (For all stages, Documentation is
MUST.)
28. PREPARATION
• Agreement between SAP Partner and SAP Customer
• Scoping – Types & No. of SAP Consultants required to
execute the Project
• Formation of Steering Committee (Top most authorities of
Customer & Partner as Members of Committee) – for
smooth functioning of Project execution
• Kick-Off Meeting (First Meeting of Project Team)
29. BUSINESS BLUEPRINT
• Module-wise
• 100% Information about
Customer
• Preparation of Flow Cycle
• Several Workshops to
understand Business
Process
• Gap Analysis: AS IS & TO
BE
• AS IS: List-out Business
Process and output of
current system
• TO BE: Mapping AS IS in
SAP. Any Gap, List.
• Rectify Gap through ABAP
Consultant
• Questions & Answers
Database (Checklist)
31. FINAL PREPARATION
• Additional Configuration work which was
not highlighted in Business Blueprint
• Legal System Migration Work-uploading
data from non-SAP to SAP
• Testing Configurations
• Training End Users
• Planning & preparation of Cut-over
activities-lock SAP system not to make any
changes
32. GO-LIVE & SUPPORT
• Deciding Go-Live
• UAT-User Acceptance Test (should be
prepared for all modules and sub-
modules): Sign-off by End users certifying
that no Support Issues/Remarks.
33. User Acceptance Test format (G L Entries)
Sl.
No
T-Code Input Expected
Output
Remarks/
Issues
OK Sign-Off
1. F-02 Rent A/c Dr
To Bank A/c
Display
Journal
entry &
post to
GLs
No amount
tolerances
Issues
to be
solved
Once it is
solved,
End user
will sign
as OK
36. Different Phases Of SAP
Implementation
Pre evaluation Screening
Evaluation Package
Project Planning
GAP analysis
Reengineering
Team training
Testing
Post implementation
37. How should we implement ERP
systems
Obtain the right mix of
People ,
Processes
Technology !!
38. People
Project Structure
Should be aligned to processes.
Process
Implementation Process (outlined in detail)
Adapt your processes to those of the ERP.
Technology
Hardware
Software
Integrated Systems
39. Critical Factors For Successful ERP
Implimentation
Commitment from Top-Management.
A Good Project Leader.
Strong Project Management.
End-User Involvement.
Team.
A Positive Attitude & Open-Mindedness.
40. Pre-selection Process
Package Evaluation
Project Planning
Gap Analysis Re-engineering Configuration
Implementation
Team Training Testing End- user Training
Going Live
Post – implementation
Phase
SAP implementation Life Cycle
41. Pre Evaluation Screening
Decision for perfect package
Number of ERP vendors
Screening eliminates the packages that are not at
all suitable for the company’s business processes.
Selection is done on best few package available.
42. Package Evaluation
Package is selected on the basis of different
parameter.
Test and certify the package and also check the
coordination with different department
Selected package will determine the success or
failure of the project.
Package must be user friendly
Regular up gradation should available.
Cost
43. Project Planning
Designs the implementation process.
Resources are identified.
Implementation team is selected and task
allocated.
Special arrangement for contegencies.
44. Re-Engineering
Implementation is going to involve a significant
change in number of employees and their job
responsibilities.
Process become more automated and efficient.
45. Team Training
Takes place along with the process of
implementation.
Company trains its employees to implement and
later, run the system.
Employee become self sufficient to implement the
software after the vendors and consultant have
left.
46. Testing
This phase is performed to find the weak link
so that it can be rectified before its
implementation.
47. Going Live
The work is complete, data conversion is done,
databases are up and running, the
configuration is complete & testing is done.
The system is officially proclaimed.
Once the system is live the old system is
removed.
48. End User Training
The employee who is going to use the system are
identified and trained.
49. Post Implementation
This is the maintenance phase.
Employees who are trained enough to handle
problems those crops up time to time.
The post implementation will need a different set
of roles and skills than those with less integrated
kind of systems.
An organization can get the maximum value of
these inputs if it successfully adopts and
effectively uses the system.
51. ERP
Integration
Integrate people, data and business processes
within and between organizations.
Collaboration, non-redundancy, consistency
and internal process optimization.
59. SAP Project System (SAP PS)
Project System provides tools to track project milestone, costs
and resources. SAP's Project System module contains tight
integration to the Controlling, Human Resources, and
Logistics modules. It utilizes personnel records from HR,
rolls costs into Controlling and links to materials or
customers in the Logistics modules.
Two key objects that define the Project in SAP are:
Work Breakdown Structure - defines tasks and assign resources to those tasks
Network - defines the dependencies within the Work Breakdown Structure (WBS)
Common processes in Project System include:
Tracking costs against WBS elements. These costs can either be from personnel
time charged against the project or from materials and/or services procured to
support the project.
Tracking milestones against key dates defined in the project.
60. This is brief review of the components and processes
associated with the SAP PS module.The following diagram
illustrates the hierarchy of objects within an SAP Project:
65. Where does a CRM solution fit?
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
66. CRM Component Landscape
OLTP
R/3 System
BW
APO
Mobile Clients
Internet
mySAP.com
Portal Users
As one big
logical box
CRM System
Telephone
Callers
67. CRM Internet Sales
B2C Scenario Consumer
BBP Scenario Business Partner
B2R Scenario Reseller
Internet-
selling
Enterprise
68. Marketing
Covers mainly activities, like
Lead Generation
Customer Segmentation
Campaign Management
External List management
Product Proposals.
69. Sales
Processing of the sale – from inquiry, quotation and order
through to invoice creation
Here territories can be maintained
Incentive & Commission Management
70. Service
Service Planning & Forecasting
Customer Service & Support
Resource Planning & Optimization
Service Operation Management.
71. Service module within CRM
Service Planning
Proactively engage customers with the correct resources at the most beneficial
times
Customer Care
Provide customer with 24/7 accessibility from all communication channels with
precise and consistent informationon
Installed Base Management
Maintain an accurate, up-to-date record of a customer’s products and installations
to facilitate service and anticipate customer requirements
72. Examples where CRM is used
Interaction Center- Call Center
Mobile Client App. – Laptops
People-Centric UI - Portal
74. The R/3 Sales and Distribution system is
a complete solution for handling sales,
shipping and billing tasks in any
industry, and is a fully integrated
component of the R/3 System.
75. Sales and Distribution Processing
MATERIALSMANAGEMENT
F I N A N C I A L A C C O U N T I N G
Sales
activity
SALESINFORMATIONSYSTEM
Sales Support
Sales
Shipping
Billing
Subsequent
delivery free
of charge
Inquiry
Quotation Contract
Delivery
free of
charge
Sales
order
Returns
Scheduling
agreementUSD
Delivery
InvoiceDebit memo Credit memo
76. SAP R/3 Integration Model
Sales &
Distribution
Production
Planning
Materials
Management
Finance &
Controlling
Customer
Vendor
Sales Order
Shipment
Receivable Accounts / Cash Receipt
Credit Limit
Transfer of Requirements
Goods Issue
Accounts Payable
Invoice
Accounting Document
Production Cost
Production Order
Production Order Receipt
78. Sub-modules in HR
Personnel Management
Personnel Administration
Recruitment
Personnel Development
Benefits Administration
Compensation Management
Personnel Cost Planning
HR Funds & Position Management
Management of Global Employees
Payroll
Training & Events Management
Organizational Management
Time Management
Shift Planning
Administration
Incentive Wages
Time Sheet
Travel Management
79. Personnel Administration
Hire employees with or without integration to Recruitment
and Organizational Management Component
Central repository for employee master data which can be
accessed by all other sub-modules of HR
Other employee actions like transfer, promotion,
confirmation, leaving etc.
Automatic creation of employee actions using dynamic
actions
Integration with all other sub-modules of HR
Employee self service to view / modify certain employee
master data.
80. Personnel Development
• Development planning for individual position / employee as
well as for a department
• Qualifications catalog – repository to store skill sets required
and existing in the organization.
• Career planning of an employee considering criteria like
qualifications, preferences of employee, potentials,
designations and even dislikes
• Design predefined career paths which can also be used in
individual’s career plan
• Profile matching with requirement
• Integration with training sub-module
81. Recruitment
• Web application for employment opportunities with
application status check
• Employee self-service on employment opportunities with
application status check for internal applicants
• Create and process vacancies with / without integration to
organizational management
• Central repository for applicant master data
• Hold proposed pay-scale information for applicants
• Sequential follow up of applicant activities / automatic
creation of applicant activities
• Bulk processing of applicant master data depending on
applicant status
• SAP Business Workflow for recruitment processes
82. • Transfer applicant master data of selected applicants to
employee master data in HR- PA administration as employee
master data.
• Applicant correspondence by mail or letters
• Check for previous applicant
• Integration with HR-PA administration for internal
applicants
Recruitment (Contd.)
83. Benefits Administration
• Benefits Enrollment & Administration
• Eligibility monitoring of employees for benefits enrollment
• Different benefit plans : enrollment to plans and termination
• Benefits – USA
• Benefits Asia
• Integration with SAP's international payroll module
• Cost Summary (employer and employee) of benefits
enrollments
• Data transfer to service provider
• Standard Employee Self Service functionality for employees
to enroll for benefit plans.
84. Personnel Cost Planning
• Planning and administration of personnel costs based on
either projected pay, actual basic salary of employees or
payroll results
• Planning with various scenarios and comparison between
scenarios
• Integration with Controlling module of Accounting
85. • Model the functional and reporting structure of an enterprise
in organizational management.
• Organizational Plan and Manpower plan with various Plan
versions and statuses.
• Creation of vacancies in integration with PA - Recruitment
module
• Graphical representation of Organizational structure
• Organizational reassignment of an employee.
• Integration with PA Personnel Administration, Personnel
development, Cost planning.
Organizational Management
86. Time Management
• Recording and maintaining of
time data for an employee.
• Interface with selected external
time recording systems as well as
flat file transfer, or manual time
recording directly in system.
• Processing attendance and
absence data.
• Shift Planning for organizational
units considering employee
preferences.
• Calculation of incentive wages
depending on time data entered
for e.g. piecework wages and
time wages.
87. Travel Management
• Travel Planning
• Trip Data
• Approval of Trips
• Accounting business trips
• Reporting results of trip cost accounting
88. Payroll
• Payroll Process
• Payroll Data
• Country Grouping
• Payroll Area
• Processing Payroll Run
• Payroll log
• Retroactive Accounting
• Remuneration Statement
• Bank Transfer
• Posting to FI
89. Training and Events Management
• External & Internal Training Events.
• Resources taken into consideration while planning.
• Attendee pre-booking, booking, cancellation, rebooking
for a particular training event.
• Appraisals for Training event and Attendee both.
• Follow up of Training Event.
• Internal cost allocation and billing.
• Other features like - broacher, mail notification to
attendees.
92. HR Structures: Syntax
Organizational Personnel Enterprise
Organizational
unit (O)
Position (S)
Job (C)
Person (P)
Employee group
(activ, externe, …)
Employee subgroup
(employé, Exe, …)
Pers. area (New
York, Cali, …)
Pers.subarea
(Sales, Service)
94. • 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
96. • 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
97. Guidelines To Create Account And Get
Hands On Experince Of SAP
Read Article for instructions to create account
http://ierp.us/sap/ides/free-online-sap-ides-ecc-6-0-access/
Then Go to following links to get your account created
Go to http://www.ides.consolut.eu/user_request
It will redirect you to
http://www.ides.consolut.eu/sap/bc/gui/sap/its/zuser_req