sap
TRANSCRIPT
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Introduction to SAP
SETHU.PMSJCET SCHOOL OF MANAGEMENT, PALAI
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ERP is a high-end sophisticated software solution that reduces the pressure and workload off the managers and provides accurate, timely information for taking appropriate business decisions. Managers with knowledge of ERP will be able to achieve their targets and goals by proper implementation of ERP system in their organization.
In fact managers are expected to translate the business rules and requirements for mapping them into ERP software.
Implementation of ERP solutions is one of the largest drivers of growth in the consultancy business.
What is ERP?
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SAP BANN
JD Edwards Karen
Microsoft Great Plains (GP) Sage
Engineer Link People Soft
Oracle Client Serve Three
ezijobz MRP(II)
Lease Soft eX.e.ge.Sys
ERP SOFTWARES
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ERP Helps in
Decision support system (DSS). Smooth flow of routine process. Automatic record keeping. Common inter-department resource pool. Better planning at all levels. Data warehousing & various self-service interface for
customers, suppliers & employees.
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Overall Business Benefits
Information.Maximizes information throughput.Provides timely information. Integrates information throughout supply chain.
Minimizes response time. Pushes decision making down to lowest levels. Reduces costs. Cuts inventory. Improves operating performance.
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o SalesIncreased efficiency.
o Lower quotes, reduced lead time, improved responsiveness.
o Manufacturing.Concurrent engineering.
o Faster design and production.
o Data Service.Accurate customer service history and warranty
information.
o Accounts Payable.Suppliers paid accurately.
Department Benefits
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o Supply Chain ManagementSupply Chain Planning, Claim Processing, Commission
calculations, Supplier scheduling, Inspection of goods, order entry, Inventory.
o Project ManufacturingCosting, billing, time & expense, activity management.
o Financials Cash Management, Fixed assets, General ledger,
Accounts Payables, Accounts Receivables. o Data Warehouse
Self-service interface among Suppliers, Customers, Employees.
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Enterprise Architecture - Benefits 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. Reducing required manpower. Eliminating legacy systems. Can cause fragmentation. Foundation of e-Business. Back-office functions. Standardization . Helps obtain and maintain competitive advantage. Improved interactions with customers and suppliers.
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Limited training budget.
Lack of Skills and Experience.
Cost estimate is $ 30,000 to 500,000,000.
Limited technical staff.
Systems difficult to use.
Too rigid system .
Compatibly problem with legacy systems
Disadvantages
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Evolution of ERP
1960’s: Inventory Control Systems 1970’s: MRP: Material Requirement
Planning 1980’s: MRPII: MRP & Distribution 1990’s: MRPII ERP with introduction
of other business functions CRM’s
Today: Web Enabled ERP – Connecting ERP Externally
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What is the full form of SAP? Systems Applications and Products in Data
Processing.
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
What is SAP ???
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History of SAP 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
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Introduction to SAP SAP Supports all Kinds of Industries and all
Functions of the Industry SAP is an Integrated System This means that all SAP modules are designed to
share information and automatically create transactions based on various business process.
SAP R/2 is the SAP Mainframe Based Software Package
SAP R/3 is the SAP Client/ Server – 3 Tier Architecture Based Software Package
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SAP is the leader of ERP software vendor. Enterprise Resource Planning is a back office
application for Enterprise .21 Industry Vertical Solutions.80% Fortune 500 Companies Use SAP.66% Market share in India.Over 18,500 Customers 76000 installations in 120+
Countries, +2500 installations in India.Over 12 million users.
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Evolution of SAP products
R/3
R/3Enterprise
SAP NetWeaver
mySAP ERP
SolutionsmySAP CRMmySAP SCMmySAP HR
mySAP PLM………..
mySAPBusiness
Suite
Web AS
•Easing Upgrade Plans & Providing Transition Options
•Bringing benefits of SAP Netweaver into installed base
•New Customers have more entry options & receive world –class ERP
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User Every SAP user has a user name.
Users of SAP system are client-specific, which means that having a user identification on one client will only allow access to that particular client.
Language SAP supports multi-national character sets and
languages on the same system, at the same time.
Default languages are English and German.
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Password Rules
Letters Numbers Easy to remember 3-8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords
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•Integrated
•Enterprise-Wide•Best Business Practices
SAP•Multi-Currency
•Multi-Lingual
•Secure Information
Why - SAP R/3 has been successful
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Real time processing with an integrated suite of client/server applications. Comprehensive Open Business Process orientation Fully Integrated business process Modular Structure International – yet consistent Providing maximum flexibility & Scalability Strong backbone for future technologies.OSS 24 hr support available.
Why - SAP R/3 has been successful
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Aerospace/DefenseAutomotiveBankingChemicalsConsumer ProductsEngineering/Construction Financial Svc ProviderHealthcareHigh TechHigher Education/ResearchInsurance
Media Mill Products Mining Oil & Gas Pharmaceuticals Public Sector Retail Service Providers Telecommunications Utilities
SAP Industry Solution
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Human ResourcesControlling Client
CompanyCode
PurchasingOrganization
PersonnelArea
Production Planning
Sales and Distribution Materials Management
Financial Accounting
SalesArea
ControllingArea
Plant
Organizational Structure in SAP
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SAP AGFounded in Germany (1972).World’s fourth largest software provider. World’s largest provider of Integrated
Business Solutions software.Company stock trades on the Frankfurt and
New York exchanges.
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R/2 System Components
RA - Assets Accounting RF - Financial Accounting RK - Cost Accounting RK-P - Projects RM-INST - Plant Maintenance RM-MAT - Materials Management RM-PPS - Production Planning and Control RM-QSS - Quality Assurance RP - Human Resources
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Two Tier Client/Server System
User PCs
Database andApplication
Server
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R/3R/3Client / ServerClient / Server
COControllingCOControlling
AAAssetAccounting
AAAssetAccounting
PSProjectSystem
PSProjectSystem
WFWorkflowWFWorkflow
ISIndustrySolutions
ISIndustrySolutions
MMMaterialsMgmt.
MMMaterialsMgmt.
HRHumanResources
HRHumanResources
SDSales &Distribution
SDSales &Distribution
PPProductionPlanning
PPProductionPlanning
QMQualityMgmt.
QMQualityMgmt.
FIFinancial Accounting
FIFinancial Accounting
PMPlantMaintenance
PMPlantMaintenance
Integrated solutions
Open systems
Client / serverarchitecture
Enterprise datamodel
Designed for all typesof business
MultinationalEuro Y2K
Comprehensivefunctionality
SAP R/3 Basis System
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Three-tier Client/Server Architecture
USER PCsUSER PCs
ApplicationServer
ApplicationServer
ApplicationServer
ApplicationServer
DatabaseServer
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Client/Server Environment
Client Software/hardware combination that can make a request
for services from a central repository of resources.
Server Software/hardware combination that can provide services
to a group of clients in a controlled environment.
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SAP AG
R
What is a Client?
“A client is an autonomous unit in the R/3 System withregard to commercial law, organization, and data.”
ClientClient
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Common Client Roles
CUST
QTST
PROD
Development &Development &CustomizingCustomizing
Quality AssuranceQuality Assurance
ProductionProduction
Configuring of client settings andcreation of new functionality
Functionality testing andverification of configuration
Productive activities and businessdata
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Additional Client Roles
SAND
PPRD
SandboxSandbox
TestTest
TrainingTraining
Pre-productionPre-production
Sampling of customizingtransactions and settings
Testing of configuration settingswith data
Configured environment for theload of legacy data prior to thestart of productive activities
TRNG End-user customer trainingenvironment
TEST
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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
SAP R/3 Architecture 3 Tier Client / Server
Architecture
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Overview of Presentation & Database Servers
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
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SAP – system landscape
Server
Client
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SAP technology environment
SAP Application ModulesSAP Application Modules
R/3 Data RepositoryR/3 Data Repository
DatabaseDatabase
UserInterfaceUserInterface
CommunicationsCommunications
Enterprise NetworkEnterprise Network
Operating SystemOperating System
Hardware Platform and EnvironmentHardware Platform and Environment
PlatformIndependent
PlatformDependent(Basis)
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R/3 Technology Environment
DB2/390
ADABAS DDB2 for AIXINFORMIX-OnLineORACLE
Windows 3.1, Windows 95, Windows NT,OSF/Motif, OS/2 Presentation Manager (PM),Macintosh, Java
ADABAS DMS SQL Server INFORMIX-OnLineORACLE
ABAP/4, C, C++, HTML, Java, ActiveX-Controls
DB2/400
OS/390AIXDigital UNIXHP-UX
ReliantUNIX (SINIX)SOLARIS
Windows NT OS/400
Hardware Bull/ZenithCompaqData General...
NCRSequentSNI
DigitalHP (Intel)IBM (Intel)
BullDigitalHP
IBMSNISUN
UNIX Systems
IBMAS/400
Operatingsystems
DialogSAPGUI
Languages
Windows NT,Windows 95,PM, Java
Databases
IBMS/390
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R/3 System: Hardware/Software Views
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Typical Client Server Architectures
Central System
Two - tierDistributed
System
Two - tierClient/Server
Three - tierClient/Server
Multi-layerCooperative
Client/Server
Presentation Application
Database
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Database and Application
R/3 System ConfigurationsCentral System
SAP2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Database,
Application,
Presentation Database
Application
Presentation
Internet Transaction Service/Web Service
In a central R/3 System configuration, one host is responsible for all processing tasks.
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Database and Application
R/3 System ConfigurationsCentral Systems
SAP2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Database,
Application,
Presentation Database
Application
Presentation
Internet Transaction Service/Web Service
Two‑tier R/3 System configurations are usually implemented using special presentation servers that are responsible solely for formatting the graphical interface. Many R/3 System users use PCs with Microsoft Windows ‑installed, for example, as presentation servers.
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An alternative two‑tier configuration is to install powerful desktop systems and to use these for presentation and applications (two‑tier client/server). This type of configuration is particularly useful for expensive applications (such as simulations) or for software developers.
Database and Application
R/3 System ConfigurationsCentral Systems
SAP2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Database,
Application,
Presentation Database
Application
Presentation
Internet Transaction Service/Web Service
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In a three‑tier configuration, you use your own host for the three tiers. Using data from the database server, several different application servers can operate at the same time. To ensure that the load on individual servers is as even as possible and to achieve optimal performance, you can use special application servers for individual application areas such as sales planning, distribution or financial accounting.
Database and Application
R/3 System ConfigurationsCentral Systems
SAP2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Database,
Application,
Presentation Database
Application
Presentation
Internet Transaction Service/Web Service
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Database and Application
R/3 System ConfigurationsCentral Systems
SAP2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Database,
Application,
Presentation Database
Application
Presentation
Internet Transaction Service/Web Service
To web‑enable the SAP Applications, a Web Server and an ITS (Internet Transaction Server) are needed. The web‑service and the services for the ITS can run on one server or on two dedicated servers. The presentation in this configuration is provided by an Internet Browser. The new SAP Web platform is NetWeaver.
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Basis System: Three-Tier Computer Hierarchy
Input / Outputof data to users
Access to Database:(Read / Write data)
Central Database(Storage of all data)
Database
Application
Presentation
Processing of datausing application logic
Presentation of theprocessed data tothe user
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Database Server
Application Servers
HR
Inte
rnet
FI
Presentation Servers
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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)
SAP R/3 Application Modules
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MMMaterial Procurement
Inventory ManagementBatch ManagementGoods inspection
Invoice Verification
PPBOM/Work Center/Routing
MRPCapacity Evaluations
Production OrdersQM in production
SDInquiry processing
Sales Order ProcessingDelivery Processing
Billing
FIGeneral Ledger
Accounts PayableAccounts receivableCash management
COCost Center Accounting
Product CostingOrder Contribution Analysis
Module Functionalities
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• External reporting of • General ledger
• Accounts receivable/payable
• Sub-ledger 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
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Consolidation
Extended General Ledger
PayablesReceivables
Bankaccounts
General Ledger
Cash managementand forecast
Foreign exchangemanagement
Managementof securetiesand loans
Finance informationsystem
Bank
Invoiceverification
Accountspayable
Creditmanagement
Accountsreceivable
Financial Accounting
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• 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
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• 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
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Sales and Distribution Processing M
A T
E R
I A L
S M
A N
A G
E M
E N
T
F I N A N C I A L A C C O U N T I N G
Salesactivity
S A
L E
S
I N
F O
R M
A T
I O
N
S Y
S T
E M
Sales Support
Sales
Shipping
Billing
Subsequentdelivery free
of charge
Inquiry
Quotation Contract
Delivery free ofcharge
Salesorder Returns Scheduling
agreementUSD
Delivery
InvoiceDebit memo Credit memo
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• Supports • Procurement
• Inventory
• Key elements
• Materials procurement (purchasing)
• Inventory management
• Invoice verification
• Material valuation
• Vendor evaluation
• External Services management
• Purchasing Information System (Purchasing)
• Inventory Controlling Information system
Module MM – Materials Management
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Materials Management
Service /spare parts
Material Special stockBatch
Vendor/one-timecustomer
Purchasinginfo record
Servicespecifications
Workflow
Optical archive
TextsMailCommunication
Classification
Documents
Conditions
BASIC DATABASIC DATA
Pu
rch
asin
g i
nfo
rmat
ion
sys
tem
Ven
do
r ev
alu
atio
n
Purchase requisitionPURCHASINGPURCHASING
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 MANAGEMENTINVENTORY MANAGEMENT
INVOICE VERIFICATIONINVOICE VERIFICATION
SD
PP
PM
QM
FI
AM
CO
PS
Third-partyorder
Requirements
Inspection lot
Fixed assets
Cost center /Budget
Project
G/L accountsCash managementand forecast
Service/ Spare Parts
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• 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 • Production planning for process industries (PP-PI)• Repetitive Manufacturing
Module PP – Production Planning
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FI CO HRCostaccounting
Financialaccounting
Humanresources
ProjectNetworks
MaintenanceRepairsPlant maintenance
Inbound Raw Material
Finished Goods
Sales and Operations PlanningDemand management / MPSMaterial requirements planning
Detailed Schedeling and PlanningCapacity planningShop floor controlCostingInformation system
PurchasingWarehouseInvoice verification
SalesShippingBilling
Customers
Vendors
SDPP
SDSD
SDMM SDQM
SDPM
SDPS
Production Planning
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• 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
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• 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
Module PS – Project Systems
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Module HR – Human Resource•HR – Human Resource
• Key elements• Recruitment• Payroll & Time management• Travel Expense accounting & Benefits• Workforce planning & Training administration• Organization management
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• Combines SAP R/3 application modules to additional industry-
specific functionality
• Result of the research by industry Centers expertise (ICOE)
Module IS – Industry Solutions
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Procurement ProcessOutlineAgreement
Demand
Purchase Requisition Vendor
Purchase OrderGoods Receipt
& Inventory Mgmt.
AccountsPayable Invoice
Verification
Scheduling Agreement
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Production Process
Goods Issue Shop Floor
Goods ReceiptOrder Settlement
Schedule/Release
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Sales Process — Trading Goods
Customer Order Picking
Goods IssueBillingAccounts Receivable
Packing
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Sales Process Finished Goods
Customer Order
AvailabilityCheck
Goods Issue
BillingPartial PaymentFinal Payment
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Sales Process Finished Goods
Customer Order
Availability Check - Insufficient -
IndependentDemand
MRP Run
ProductionScheduling
Purchasing
DependentDemand
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Process Flow
Goods Issueto Shop Floor
GoodsReceipt
Production
Goods IssueBillingAccounts Receivable
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The future of ERP software must include CRM, SCM, SEM, BW, KM, Web-enable …
mySAP is the future or extended of SAP ERP software
MRP
MRP II
ERP
TEI
mySAP
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Web EnableCustomer Relationship Management (CRM)Supply Chain Management (SCM)Strategic Enterprise Management (SEM)Business Information Warehouse (BIW)Knowledge Management (KM)
ERP Extension
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SAP R/3
CRM SCMSEM
BW
KW
• mySAP Business Information Warehouse• mySAP Customer Relationship Management• mySAP Knowledge Management • mySAP Supply Chain Management• mySAP Strategic Enterprise Management
mySAP Components
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(
mySAP ERP
mySAP PLM
mySAP SRM
mySAP SCM
mySAP CRM
SAP NetWeaver
mySAP Business Suite
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The core capabilities of SAP NetWeaver are the integration of people, information, and process.
In people integration, it simply means that it enables you to bring people together and help them work more efficiently.
Information integration means you can bring together information from a variety of locations and have it make sense in the context of what your folks do everyday.
Process integration means coordinating the flow of work across departments, divisions, and between companies
SAP NetWeaver
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SAP Enterprise Portal: helps create software that brings together all the data and software tools that a person needs to do her job in one consistent user interface.
SAP Mobile Infrastructure: universal translator for mobile devices.
SAP Business Intelligence: provides tool for information integration, so what your people see is consistent and accurate.
SAP Master Data Management: is a system for harmonizing information that is distributed across a wide variety of applications .
SAP Exchange Infrastructure: Integrates processes and help applications talk to one another
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Logging On – SAP Gui
To log on to an R/3 system with the SAP Gui, you need the proprietary SAP Gui (Graphical User Interface) software loaded on your system and an internet connection
Account onSAP R/3 System
in Missouri
Internet Connection
PC with SAP Gui
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SAP Gui Configuration
First, you need to tell the SAP Gui which system you want to log into:
If you don’t haveany systems defined,click on New Item
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System Definition (provided by UCC)
Text description (free)
Address of system (e.g.sapd.umsystem.edu)
SAP Router usually not required
R/3 System Selected
System NumberFrequently 00, but not always
System IDLogical name of system
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76
Configured SAP Gui
Select System: double-click or Logon button
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Logging On
Enter Client
Enter User (R/3 Account)
Enter Password (R/3 Account)
Don’t worry about language—English will default in
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Logging On
On the first time logging in toa new account, you will haveto change the password—tryTo remember your newPassword WITHOUT WRITINGIT DOWN!
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SAP vs. MS Office
Database andApplication
Server
Nothing is saved on your PC. Only things saved on ourserver in Missouri are saved, and they are saved for good.
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Benefits of SAP R/3 Business Application Modules Seamless integration across functions and locations Efficient co-ordination of demand, supply and production Addresses all businesses environments – MTO, MTS,ATO etc. Built in best business practices Covers Multi-Country, Multi-Company, Multi-Plant and Multi-
Language implementation Country versions to address local requirements – Legal, statutory
etc. Better control and monitoring of business e.g. authorisations, reports Centralised control over de-centralised multi-location operations Handles Mutiple - valuation schemes, accounting system, operating
system, RDBMS
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Quiz
1. What does SAP stand for?2. What does ERP stand for?3. What is the difference between SAP
R/2 and SAP R/3?4. What business application module is
the FI module?5. Is the FI module an R/2 or R/3
business application module?
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Quiz - Answers
1. System, Application, and Products in Data Processing
2. Enterprise Resource Planning3. SAP R/2 is the SAP Mainframe Based Software
Package and SAP R/3 is the SAP Client/ Server – 3 Tier Architecture Based Software Package
4. Financial Accounting5. R/3 – the R/2 Financial Accounting model is RF
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Links
http://www.cio.com/forums/erp/ http://www.intelligententerprise.c
om/ http://www.sap.com/ http://www.oracle.com/ http://www.peoplesoft.com/ http://www.jdedwards.com/ http://www.baan.com/