SAP ERP OVERVIEW

by

M S RAVI PRAKASH

WELCOME TO THE WORLD OF SAP R/3

ERP
Enterprise Resources Planning

Enterprise
Where a transaction takes place. Where customers get the satisfaction. Where the resources are available for the peoples needs.

Evolution of ERP
1960s: Inventory Control 1970s: Material Requirement Planning (MRP) 1980s: Manufacturing Resources Planning (MRP-II) 1990s: Enterprise Resource Planning (ERP)

Resources
Money Men Machines Materials

Planning
Proper Planning and Optimization of the valuable resources make enterprise run into profits.
Definition for ERP

A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise.

Need for ERP

Integration of Business Processes Online information at the corporate office Standardization of systems across Locations Reduce cash to cash cycle times Faster Consolidation at Head office for statutory reporting

Problems Tackled by ERP Systems

Material Shortages Productivity Enhancements Customer Service Cash Management Inventory Problems Quality Problems

ERP Products
SAP BAAN Oracle APPS People Soft JD Edwards Marshall Etc..

Domain Share Of SAP

SAP Baan People soft Oracle apps JD Edwards Etc

SAP & Competitors

SAP R/3 had competition with Software giants like Oracle Corp, People Soft & Bann. Oracle with its E-biz suit packed to excel with 142 modules. People Soft with its extra ordinary performance in HR has stormed the market. But finally failed to gain the confidence of Big Enterprises. Result is SAP Has become giant in ERP.

Few SAP Customers

IBM COMPAQ Hewlett Packard AMD Boeing Mercedez Toyota Lucent Hitachi Nike TATA s Dr.Reddy s Labs Ranbaxy L& T Reliance Industries Glaxo Mahindra & Mahindra Hero Honda Growel Colgate Palmolive

Consulting Companies
Price Water House Coopers. KPMG. Siemens. Delloitte. Accenture. Cap Gemini. IntelliGroup TCS.

SAP R/3 What is all about

Systems Applications & Products in Data Processing

SAP & Modules

SAP Package is strategically divided into 2 main areas. Functional & Technical. People with domain experience can work on functional modules. 2 Technical modules are ABAP/4 & Basis. Cross Applications are used for ALE Purpose.

SAP AREAS

SAP
Technical Functional TF

In Functional area we have around 64 modules all are enabled for web reporting via Web Application Server.

THE SAP COMPANY

SAP AG in 2002 revenues: 7.4 billion 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003) 12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners

SAP Milestones over 30 years

The SAP R/3 Architecture

SAP R/3 works on Three Tier Architecture
User Terminal Application Server Database Server

Data Creation Modification Retrieval

Managing User Requests

Data Storage

The SAP World

SD
Sales & Distribution

FI
Financial Accounting

MM
Materials Mgmt.

CO
Controlling

PP
Production Planning

AM

R/3
Client / Server
PM WF

Fixed Assets Mgmt.

QM
Quality ManageManage-ment

PS
Project System

Plant Main-tenance Main-

Workflow

HR
Human Resources

IS
Industry Solutions

3-Tier Client/Server Architecture

Communication The Presentation Layer collects user input and creates process requests. The Application Layer uses the application logic of SAP programs to collect and process the process requests. The Database Layer stores and retrieves all data.

SAP R/3 Customer Installations by Industry

Others 11.5% SAP BANKING 2.0% SAP MEDIA 2.3% SAP HEALTHCARE 2.3% Metal, Paper & Wood Products 2.8% Services 3.1% SAP OIL & GAS 3.2% SAP TELECOMMUNICATIONS 3.4% SAP PHARMA CEUTICALS 3.4% SAP PUBLIC SECTOR 3.4% SAP CHEMICALS 9.5% SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8% Consulting & Professional Services 6.0% SAP RETAIL 6.3% SAP HIGH TECH & ELECTRONICS 11.3% SAP ENGINEERING & CONSTRUCTION 10.5%

Worldwide

SAP CONSUMER PRODUCTS 10.3%

Industry Solutions

2Aerospace and Defense 2Apparel and Footwear 2Automotive 2Chemicals 2Consumer Products
Trade Promotion Management Key Account Management

2Distributor Reseller Management 2Financial Services

Banking Insurances Collections and Disbursement Incentives & Commission Management Claims Management Asset & Liabilities Management Financial Service Provider

2Healthcare 2High Tech 2Media 2Oil&Gas 2Pharmaceuticals 2Public Sector 2Real Estate 2Retail
Agency Business Category Management Store Management

2Service Providers 2Telco

SAP - characteristics
Highly Integrated solution covering entire business processes Technically capable of utilizing the network infrastructure Open system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systems Workflow enabled business processes Enables to exploit the power of Intranet and Internet

Common SAP objectives

Cost Control & increased profitability Increased productivity of all resources man, material & money Process Standardization Transparency in operations, resulting in better communication Shift from post-mortem scenario to predictive scenario

Results of Integration
Focus on Business Processes Elimination of Redundant Data (Common Constant Data) Easier Corporate Consolidation Better Managerial Control Elimination of Interfaces Faster reaction to changing structures

Success factors for SAP implementation

Top Management Commitment & communication down-the-line Empowerment Change management Training Compliance to methodology

SAP IMPLEMENTATION - PHASES

Project Planning Business Process Study & Analysis Installation Training Business Requirement mapping Configuration Modifications / Interfaces Data Conversion Documentation Testing Go-Live Post production support

Implementation Methodology

SALES AND DISTRIBUTION

GENERAL SETTINGS
COUNTRY CURRENCY TIME ZONE CALENDER UNITS OF MEASURE

FACTORY VENDOR CUSTOMER

BASE

SALE

DELIVERY

ORGANIZATION STRUCTURE
CNTRL AREA COMPANY P.ORGN P.GRP SALES ORGN DIS CHNL SALES AREA DIVISION COMPANY-CODE PLANT SHPNG PT SALES OFF SALES GRP EMP EMP

CREDIT CNTRL AREA

SALES ORGN+DIST CHNL

MASTER DATA
Organizational Master Customer Master Record Material Master Record CMIR Condition Master

SALES CYCLE
INQUIRY QUOTATION

SCHEDULING AGREEMNETS
ORDER DELIVERY PGI BILLLING REL TO ACCOUNTS

CONTRACTS

INVENTORY ACCOUNTS

BASIC FUNCTIONS
Condition Technique for Pricing Condition Tables Access Sequence Condition Type Pricing Procedure Pricing Procedure Determination Condition Records Pricing: Condition Exclusion Free Goods Determination

BASIC FUCNTIONS
Partner Determination Out Put Determination Material Determination Product Proposal Item Proposal Incompletion Procedure Availability Check Credit Management Number Ranges

SHIPPING
Delivery Document Types Schedule Category Schedule Line category Determination Shipping point Determination Storage Location Determination

BILLING
Billing Documents Billing Plans(Periodic,Milestone) Cancellation of Invoices Invoice lists

SPECIAL FUNCTIONALITIES
Third Party Order Individual Purchase Order Consignment Sales

Special Topics
REBATE PROCESSING VARIANT CONFIGURATION TRANSFER ORDER INTEGRATION DATA TRANFER TECHNIQUE REPORTS

ADDITIONALS
DAY TO DAY NOTES(SOFT COPY) PRESENTATIONS EVALUATIONS DISCUSSIONS

THANK YOU