1

Customers 4

PP contacts Purchasing for raw material

Purchasing
Customer Calls to place 1 order for a Car

Sales office/Inventory contacts PP

Production Planning
3
Sales office contacts Inventory

Sales

Inventory

Lets add some more Business Processes

Where is my car

Customers

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

I did not order for a TRUCK!!!!

Dear Sir, Your Order

Sales

I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU!

We are SORRY Sir

Sales

Vendors

Sales General Ledger

Purchasing

Customers

A/R

A/P

Production Planning Inventory Shop Floor Execution

 Why Enterprise Architecture ?

Numerous disparate information systems Integrating the data becomes costly Time Money Resources Inconsistencies and duplication of data Lack of timely information Required: Central enterprise definitions Required: Centrally controlled business change

FA Marketing Treasury GL Shop Floor Sales AR AP Purchasing

Payroll HR

Partner Systems
PP

Mfg.

Plants

Eliminates the duplication, discontinuity and redundancy in data Increases the return on investment made on IT implementations Delivers quality information designed for the Enterprise as a whole Faster and cheaper Delivers quality information to produce a quality enterprise Satisfying Partners/Customers Reducing required manpower

ERP

 What is the full form of SAP?

Systems Applications and Products in Data Processing

When was SAP founded?

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
Renamed in 1977 Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)

 Systems Applications and Products in Data Processing

German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

Renamed in 1977 Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung)

SAP is both the name of the Company as well as their ERP Product SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business Three systems developed : R/1, R/2, R/3

Enterprise Resource Planning is evolved through these stages

Enterprise Resource Planning Inter-Enterprise Co-operation Collaborative Business

Create Strategic Value Total Company Value Automation Efficiency and Control

80s R/2

90s R/3

Today mySAP ERP

Evolution of ERP

ERP Rapid Adoption

Companies start to adopt ERP on a massive scale

mySAP ERP
E-Business is now seen as an extension of ERP, not a replacement. SAP is leading the new industry standard for collaborative business applications.

Dot.com Hype: ERP = Old E-Business = New ERP = The Business Software Industry
The approach that SAP established becomes industry standard. New competitors enter the market. Trends seemed to indicate that ERP was an out-offashion model

SAP Invents Real-Time ERP

SAP defines and establishes a new approach to Integrated Standard Business Software.

70s

80s

90s

00s

 SAP R/3 client server architecture evolved in year___________. Which is the latest SAP product?
mySAP ERP mySAP Business Suite mySAP.com with one step business

 SAP R/3 client server architecture evolved in year 1992 Which is the latest SAP product?
mySAP ERP mySAP Business Suite mySAP.com with one step business

19

 The SAP R/3 architecture is based on a 3-tier client/server principle

Presentation Server Application Server Database Server

Dedicated Servers are linked by Communication Networks Perform tasks without sacrificing data integration and processes within the system, as a whole

 The Presentation Server

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

The Database Server

Interface between application server and RDBMS Also holds the vendor specific DB driver

SAP Conceptual Areas

Application Area
(Initiate and execute SAP transactions) (Functional)

Basis Area
(The technical administration of the system) (Authorizations/Ids/etc)

Development Area
(1. A developers workbench 2. Create & Test ABAP/4 programs) (Technical)

Transport Request

Development System (DC)

Quality System (QC)

Production System (IC)

Client 110 100 etc..

 The Logon Client

3 digit number ( 000 to 999) Helps maintain independent sets of data within the same R/3 system

Client mechanism and handling

Hardware

UNIX Systems Bull IBM Digital SNI HP SUN

Bull/Zenith Compaq Data General ...

Digital NCR HP (Intel) Sequent IBM (Intel) SNI

IBM AS/400

IBM S/390

Operating AIX Reliant systems Digital UNIX UNIX (SINIX)

HPHP-UX SOLARIS

Windows NT

OS/400

OS/390

Databases

ADABAS D DB2 for AIX INFORMIXINFORMIX-OnLine ORACLE

ADABAS D MS SQL Server INFORMIXINFORMIX-OnLine ORACLE

DB2 for OS/400

DB2 for OS/390

Dialog SAPGUI Languages

Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java ABAP/4, C, C++, HTML, Java

Operating Systems AIX SINIX SOLARIS HP-UX Digital Unix Windows NT

Supported Hardware IBM SNI SUN Digital HP Bull AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General AS/400

Supported Front ends Win 3.1/ 95 / NT OSF / Motif OS/2 Macintosh Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh

Supported Databases DB2 for AIX Informix Online Oracle 7.1 ADABAS D Oracle 7.1 SQL Server 6.0 ADABAS D

OS/400

Win 95 OS/2

DB2/400

30

SD Sales and Distribution MM Materials Management PP Production Planning

FI Financial Accounting

SD MM PP

FI CO AM

CO Controlling AM Asset Management

SAP R/3
QM
QM Quality Management PM Plant Maintenance WM Warehouse Management

HR PM WM PS WF
HR Human Resources WF Workflow PS Project System

 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)

Module Functionalities

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

Match the following Financial Accounting Controlling Materials Management Inventory Management Shop Floor Control Financial Reporting

Sales & Distribution Production Planning Project System

Profit center Accounting Billing Activity monitoring Asset Management

Match the following Financial Accounting Asset Management & Financial Reporting Profit center Accounting Inventory Management

Controlling Materials Management

Sales & Distribution Production Planning

Billing Shop Floor Control

Project System

Activity monitoring

Module FI Financial Accounting

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

Bank Foreign exchange management Finance information system

Management of secureties and loans

Cash management and forecast

Accounts payable
Payables

Bank accounts Receivables

Accounts receivable

General Ledger
Invoice verification Extended General Ledger
Consolidation

Credit management

Module CO Controlling
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 SD Sales and Distribution

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

SALES INFORMATION SYSTEM

Sales Support

Sales activity

MATERIALS MANAGEMENT

Sales

Inquiry Quotation Contract Scheduling agreement

USD

Delivery free of charge

Subsequent delivery free of charge

Sales order

Returns

Shipping
Delivery

Billing
Debit memo Invoice Credit memo

FINANCIAL ACCOUNTING

Module MM Materials Management

Supports
Procurement Inventory

Key elements
Materials procurement (purchasing) Inventory management Invoice verification Material valuation Vendor evaluation External Services management Purchasing Information System (PurchIS) Inventory Controlling Information system

BASIC DATA
 Material Special stock Batch  Vendor/one-time customer  Purchasing info record  Service specifications  Workflow  Optical archive  Texts Mail Communication  Classification  Documents  Conditions

PURCHASING
 Purchase requisition
  

SD PP PM

Third-party order Requirements

 RFQ/Quotation
  

Purchasing information system Vendor evaluation

MRP Direct requisition Release procedures Material/service Price comparisons Price comparison list Purchase orders Outline agreements Scheduling agreements

 Purchasing
  

Service/ Spare Parts Service / Inspection QM spare parts lot G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project

FI AM CO PS

INVENTORY MANAGEMENT
    

Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

INVOICE VERIFICATION
 

Check and post Price update

Module PP Production Planning

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

SD PP Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system

Project Networks

PS SD

Customers
Sales Shipping Billing

SD

PM SD Maintenance Repairs Plant maintenance QM SD Inbound Raw Material Finished Goods

Vendors

MM SD Purchasing Warehouse Invoice verification

FI

Financial accounting

CO

Cost accounting

HR

Human resources

Module QM Quality Management

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 PS Project System & HR Human Resource

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 WF Work Flow

To integrate SAP R/3 with cross-applications Support tool for all modules Automates business process
As events occur that trigger a process, the Workflow manager initiates a Workflow item Using the process logic, data and documents are incorporated at each step Using the processing rules, the Workflow manager routes the item to the appropriate role (location, person, unit, etc....).

Example:
Posting a PO will trigger automated mail to sales support for customer service.

IS Industry Solutions
Combines SAP R/3 application modules to additional industryspecific functionality Result of the research by industry Centers expertise (ICOE)

SAP for Aerospace & Defense SAP for Media SAP for Automotive SAP for Mill Products SAP for Banking SAP for Mining SAP for Chemicals SAP for Oil & Gas SAP for Consumer Products SAP for Pharmaceuticals SAP for Engineering, Construction & Operations SAP for Professional Services

SAP for Healthcare SAP for Public Sector SAP for High Tech SAP for Retail SAP for Higher Education & Research SAP for Service Providers SAP for Industrial Machinery & Components SAP for Telecommunications SAP for Insurance SAP for Utilities

50

mySAP ERP R/3 Enterprise

Web AS

Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ..

mySAP Business Suite

R/3

SAP NetWeaver

Easing Upgrade Plans & Providing Transition Options Bringing benefits of SAP Netweaver into installed base New Customers have more entry options & receive world class ERP

SAP R/3

my SAP Solutions

my SAP Business Suite

Financials HR Corporate Services

Operations

mySAP PLM

mySAP SCM

mySAP Financials
mySAP CRM mySAP SRM

mySAP HR Corporate Services Operations

Adaptive Business Solutions

SAP R/3

mySAP PLM

mySAP SCM

mySAP mySAP SRM mySAP Financials mySAP HR Corporate Services Operations CRM

SAP NetWeaver Application Platform ( Web As) People Integration (Portal) Information Integration( BI,MDM) Process Integration (XI)

 mySAP CRM mySAP SRM mySAP SCM mySAP PLM SAP Netweaver

57

Who What

Marketing

Sales

Service

Executives

Service
Use a CRM Solution to complete the Cycle

Engage

Fulfill Transact

Workplace Which way How

Internet Mobile Telephony

Operational

Analytical

Collaborative

mySAP.com Portal Users OLTP R/3 System

CRM System

BW As one big logical box Internet

Telephone Callers Mobile Clients

APO

Enterprise

B2C Scenario Internetselling

Consumer

BBP Scenario

Business Partner

B2R Scenario

Reseller

 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 customers products and installations to facilitate service and anticipate customer requirements

Suite of tools tailored to the needs of the offline mobile sales force Provides an integrated view of customers, prospects, products, services, competitors, activities, opportunities, quotations, orders, etc. Heavy cross-referencing for easy navigation

Facilitates the sales process by Effectively managing customers and prospects Providing appropriate customer, product and competitive information Determining product and pricing configurations Managing sales projects across sales teams Generating presentation and proposals

65

Key Components of mySAP SRM

mySAP SRM eProcurement mySAP SCE Supplier Collaboration Engine

Enterprise Buyer Prof 3.5

Business Inf. Whouse 3.0B Requisite Bugs Eye 3.5 Requisite eMerge 3.5 Enterprise Portal 5.0

Supplier self services 1.0 Bidding Engine 3.5 User Management 3.0

Exchange Infrastructure

Content Integrator

 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

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

70

SAP APO (Advanced Planning and Optimizing)

Flexible and Adaptive Planning, Integration with CRM, SRM and PLM

SAP ICH (inventory Collaboration Hub)

Collaboration with Suppliers

SAP EM (Event Management)

Monitor, alert and resolve exceptions

SAP R/3
Dominant source of Master Data in SAP SCM, destination of transaction data like planning outputs or Availability Checks for Execution systems

SAP SCM Transaction Data Core Interface Master Data

Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Planning system where selective Master data maintained and sourced from R/3

Core interface SAP CRM, SAP SRM and SAP PLM

Planning Outputs include Forecasts, SNP or PPDS Planned Orders, Stock Transfers and Production Orders

Legacy Systems

BAPI

i2 Technologies (Tradematrix SCM) Forecasting Demand Planner/Demand Management Demand Fulfillment Supply Chain Planning Factory Planning

SAP SCM

ORACLE APS

Manugistics (Networks SCM) Demand Management Fulfillment Management Master Planning

Demand Planner

Oracle Demand Planner Oracle GOP (Global Order Promising) Oracle ASCP (Advanced SCP) Oracle Manufacturing Scheduling

ATP and Fulfillment Material and Resource planning Manufacturing Planning

SAP GATP (Global ATP) SAP SNP (Supply Network Planning) PP/DS (Production Planning and Detailed Scheduling) TP/VS (Transportation Planning/Vehicle Scheduling)

Manufacturing Planning and Scheduling

Transportation

TMS (Transportation Management Solutions)

Oracle Transportation

Logistics Management Solutions

75

77

Business Drivers
Document Mgmt Call Center Market Analysis

Extended Value Network Increased Market Dynamics

Integration costs are high

Long integration projects IT environments become increasingly rigid Lots of heterogeneous systems

SCM

ERP E-sales

Pressure on IT increases
Must leverage existing investments Must support new business processes quicker

Trading E-procurement Technical systems

Must reduce total cost of ownership (TCO)

PLM

Reduce Complexity Minimize the number of connections

through hubs
Document Mgmt Call Center Market Analysis

Use only one platform to integrate all people, information, and systems

Reduce Cost Integration

SCM ERP

Deliver .NET and J2EE interoperability Deliver adaptors for ISV products Deliver products, not projects
E-sales

Increase company performance

Increase ease of use, scalability and adaptability

Trading E-procurement Technical systems PLM

Increase business process flexibility by using an Enterprise Services Architecture

Unifies and aligns people, information and business processes

Integrates across technologies and organizational boundaries A safe choice with full .NET and J2EE interoperability

The Business foundation for SAP and partners

 Powers business-ready solutions that reduce custom integration Its Enterprise Services Architecture increases business process flexibility

SAP Mobile Infrastructure

Tight coupling and alignment with SAP business solutions

SAP NetWeaver
People Integration Composite Application Framework
Multi-channel Access Portal Collaboration

SAP Enterprise Portal

Business packages Collaboration

SAP Business information Warehouse

Business content Tight integration to Sap Open architecture (Crystal, Accentual )

Life cycle Management

Information Integration
Bus. Intelligence Knowledge Mgmt Master Data Management

Master Data Management

Coming in 2003

Process Integration
Integration Broker Business Process Management

SAP Exchange Infrastructure

Proxy generation and mapping tools Integration directory SAPs ability to execute

Application Platform
J2EE ABAP Multi-channel Access

SAP Web Application Server

Proven, scalable, comprehensive toolsets Leverage existing infrastructure/skillets

87

Organizational Structure in SAP

Production Planning

Financial Accounting

Plant

Company Code

Controlling
Controlling Area

Client

Human Resources
Personnel Area

Sales and Distribution

Materials Management

Sales Area

Purchasing Organization

SAP Organizational Structure: Cardinality

Client

Chart of Accounts
Purchasing Group

Company Code

Purchasing Org.

Plant

Sales Organ.

Shipping Point

Storage Location

Distribution Channel

Sales Office

Sales Group

Loading Point

Division

96

99

103

110

Logon pad with different systems

Steps to add transaction to favorites Step I: Select the transaction you want to add to favorites Step II: Right click on the transaction you want to add to favorites Step III: Select Add to favorites.

119

 Variants Calendar
Public Holidays Holiday Calendar Factory Calendar

Unit of Measurements Currencies

Currency codes Conversions (quotations) Exchange Rate Type Rates Rounding rules

 Define Public Holidays Define Holiday Calendar A combination of a yearly 12-month calendar and a list of all public holidays that fall within a calendar year. Gives an overview of all working days and all days off for a calendar year. It can be created to cover a validity period of several years. Can be defined according to the country or region in which they are to be implemented, and adapted to suit individual business requirements

 Define Factory Calendar Calendar in which working days are numbered sequentially. Defined on the basis of a public holiday calendar. Validity period of a factory calendar must be within the validity period of the public holiday calendar. The weekdays that are working days must also be specified in this calendar. Examples:
Monday through Friday are working days. Saturday, Sunday and public holidays are non-working days.

 Enables calculations with quantities and physical units. Units of measurement are needed for internal conversions (such as kilogram <-> gram, but also centimeter <-> inch). The international system of units (SI) is used for this. UOMs are held centrally in the SAP System for all applications. Conversion factors are stored in the system with a unique internal key. Unit of measurement can be created according to requirements. CAUTION: Extra care to be taken for any creation as this global setting can affect the whole system performance

 Legal means of payment in a country. You can manage ledgers in two parallel currencies in addition to the local currency

 Currency codes

SAP maintains about 187 currencies. If any transaction in a new currency will happen for the organization, that currency to be maintained
Standard quotation

Can specify direct or indirect quotation. System by default will take direct quotes.
Conversion factors

Mention the conversion for currency to currency. For example, INR To Yen will 1:100
Rounding rules

ensures that the amounts in this currency are always rounded to this unit

 Exchange Rate Type is used for different business purposes where multiple rates can be maintained for a pair of currencies The following exchange rate types exist Buying rate (G) Bank selling rate (B) Average rate (M) Historical exchange rate Key date exchange rate Default exchange rate types can be maintained in document types For posting and clearing, the system uses the exchange rate type M (average rate). This exchange rate type must be entered in the system and you must also enter the exchange rates for this type.

 Exchange rates in the system for the following purposes

Posting and Clearing To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing. Exchange Rate Differences To determine gains or losses from exchange rate differences. Foreign Currency Valuation To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations. Valuation of Purchase Documents, Sales documents and Commitments

Exchange rates maintained for a exchange rate type

for an effective date between two currencies