An overview on ERP & SAP

Description
It is all about ERP & SAP. I have tried to present it in very simple way, and made it like a story..hope it would definitely given a idea for the beginners for SAP profession.

GOBIRAMAN.K Pondicherry

ERP comprises of a commercial software package that promises, the seamless integration of all the information flowing through the company such as financial, accounting, human resources, supply chain and customer information.µ [T.J. Davenport, Harvard Business Review, July Aug., 1998]
FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing Payroll HR

Partner Systems
PP

Mfg.

Plants

Purchasing
Customers 4
PP contacts Purchasing for raw material

Customer Calls to place 1 order for a Car

Sales office/Inventory contacts PP

3

3

Production Planning

2

Sales office contacts Inventory

Sales
4

Inventory

Let¶s add some more Business Processes«««..

5

Customers

Where is my car

What is this confusion

What to manufactur e?? Whom to contact for status? What is Cost and profit

Production Planning

Sales

Shop floor Finance

Purchasing Vendors Inventory
6

I did not order for a TRUCK!!!!

Dear Sir, Your Order«

Sales

7

ERP attempts to integrate all data and processes of an organization into a unified system. ERP are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. ERP systems integrate all facets of the business, including planning, manufacturing, sales, and marketing.

ERP scope has expanded dramatically and usually includes:
y y y y y y y

Manufacturing Supply Chain Management Financials Projects Human Resources Customer Relationship Management Data Warehouse

Large organisations want to implement standard processes and systems across divisions and subsidiaries. ERP offers attractive, integrated solutions.

y

ERP Delivers a single database that contains all data for the software modules across an the organization. People in different department can access the same information through ERP.

y

y ERP systems tie together varied processes using data

from across the organization.
y ERP allows organization to replace multiple complex

computer application with a single integrated system.

y Implementing ERP is very expensive. y Success of the ERP depends on the skill level of the

work force. y The time and the cost incurred for the training of the work force is high. y Organization needs to customize their ERP package which isn t allowed by most ERP Vendor. y Employee resist to change.

ySAP
y RAMCO y PEOPLE SOFT y Oracle y JD Edwards y OPENDA QX y IFS Applications y MAXIMO from IBM y Net ERP

y Batch Master ERP y AccpacAMS Advantage y IBM y Epicor Enterprise y Lawson Financial y MGF/PRO y Movex y Paradigm y SYSPRO & etc.,

SAP is the Market Leader in ERP Software Solutions. The Name SAP being a German co, where SAP stands for System, Applications and Products in Data Processing . Founded in 1972, SAP is one of the leading international providers of business software and, based on market capitalization, They are the world's 3rd-largest independent software manufacturer. Who have more than 109,000 customers in over 120 countries and employ 53,000 people at locations in more than 50 countries.

y 74% of Fortune

500 Co., run SAP software. y SAP is listed on Several stock exchanges, including Frankfurt and NYSE. y Organic Growth Spend 1.6 billon Euro on 2009 in R&D.

17

SAP is a real-time, fully-integrated, and flexible organizational business process solution. This means that when data is entered into the SAP system, it is: y Immediately processed and stored. y Automatically processed across the different business processes. y Up-to-date and available to others immediately.

SAP is a Fully-Integrated System y SAP is an integrated system which means that all of the different business processes within Order to Cash, Requisition to Pay and Accounting to Reporting are linked together.

y

Data is stored in central database and shared by different applications. The same information is accessed by everyone depending upon authorization levels.

Integrate people, data and business processes within and between organizations.

In SAP we have three layer concept: y PRESENTATION LAYER y APPLICATION LAYER y DATABASE LAYER

In SAP R/1 all the 3 layers were integrated. In SAP R/2 Layer 2 & 3 was integrated and layer 1 was acting separately. In SAP R/3 all the 3 layers were performing separately.

One -tier configuration Presentation

Two -tier configuration

Three -tier configuration

Presentation processes

Application
Application processes

Database
Database processes

Database , application , presentation processes

Database , application processes

y The Presentation Server
y GUI only y At workstation y Very light y Sends requests to application server y Obtains screens from application server and displays

y The Database Server
y Interface between application server and

RDBMS(Relational Database Management System) y Also holds the vendor specific DB driver
23

24

y Financial Modules y Financial Accounting (FI), Controlling (CO), Investment

Management (IM) Treasury (TR), Enterprise Control (EC)
y Logistics Modules y Materials Management (MM), Sales and Distribution (SD),

Production Planning and Control (PP), Product Data Management (PDM), Quality Management (QM), Plant Maintenance (PM), Service Management (SM), Project System (PS)
y Human Resource Management Modules y Personnel Management, Organizational Management, Payroll

Accounting, Time Management, Personnel Development, Training and Event Management
y Cross Application Modules y Workflow (WF), SAP Office

1. 2. 3. 4. 5. 6. 7. 8.

Determination of Requirements Determination of the source of supply Vendor Selection PO Processing PO Monitoring Goods Receipt Invoice Verification Payment Processing

Outline Agreement Purchase Requisition Demand Vendor Scheduling Agreement

Accounts Payable

Invoice Verification

Goods Receipt & Inventory Mgmt.

Purchase Order

Schedule/Release

Goods Issue

Shop Floor

Order Settlement

Goods Receipt

Sales Order processing 2. Inventory Sourcing 3. Shipping 4. Billing
1.

Customer Order

Picking

Packing

Accounts Receivable

Billing

Goods Issue

Now most of the organizations using ERP as SAP & SAP becomes the software backbone. And contributes for an excellent performance support, for an end-toend operation process in all key areas. Which has also made a revolution in the growth of the Commerce & trade by helping all companies of all dimensions to perform better



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