Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore

560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184

SAP- INTRODUCTION (An introductory Manual by Global Cynex)

This manual will give an overall of picture of SAP & ERP market and the opportunities awaiting the prospective professionals who want to make it into SAP consultancy which has vast opportunities Introduction to SAP & ERP SAP-History, Evolution & Market position SAP Releases, Versions, Service packs/ Patches, Country specific Add-on components/ settings, Modules-Core modules & Additional modules, New dimension products 4. 4a. Scope & Position of SAP Consultants in the Organizational Structure 4b. Scope of SAP Projects / Employment opportunities 5. SAP R3 System Architecture/ System Landscape in a Live environment and Training Environment 6. Concept of Client in SAP and client copy procedures 7. SAP-Project Implementation Methodology 8. Documentation for learning individual module / Course Curriculum 9. SAPNet / Online Service Support, OSS Note 10. Customizing / Implementation Guide (IMG) brief introduction, Data in SAP: Input data, Transaction data, Output data 11. Profile of Global Cynex and how it is positioned to handle the training of SAP its contact addresses 1. Introduction to SAP & ERP: SAP is a ERP (Enterprise Resource Planning) software: ERP: Definition A packaged business software system that lets a company automate and integrate the majority of its business processes; share common data (ensuring data integrity) and practices across the enterprise and produce and access information in a real-time environment. 2. SAP-History, Evolution & Market position: In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther -- launch a company called SAP Systems Analysis and Program Development in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing. One year later, the first financial accounting software is complete, forming the basis for the continuous development of other software components in what later came to be known as the "R/1 system." "R" stands for real-time data processing. By the end of the decade, intensive examination of SAP's IBM database and dialog control system leads to the birth of SAP R/2. The 1980s: Rapid Growth The SAP R/2 system attains the high level of stability of the previous generation of programs. Keeping in mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies. With this and other innovations in SAP R/2, SAP sees rapid growth. The 1990s: A New Approach to Software and Solutions SAP R/3 is unleashed on the market. The client-server concept, uniform appearance of graphical interfaces, consistent use of relational databases, and the ability to run on computers from different vendors meets with overwhelming approval. With SAP R/3, SAP ushers in a new generation of enterprise software -- from mainframe computing to the three-tier architecture of database, application, and user interface. To this day, the client-server architecture is the standard in business software. 1996: 1,089 new SAP R/3 customers, more than 9,000 installations worldwide. 1997: employee strength 12,900 Around 2000, mySAP strategy announced heralding new direction for company and product portfolio The 2000s: Innovation for the New Millennium: With the Internet, the user becomes the focus of software applications 2004: 84,000 installations worldwide, 1,000 partners, over 25 industry-specific business solutions (IS solutions like Auto, Retail, Pharma, Telecom, Media, Oil & Gas etc.,) and more than 24,450 customers in rd 120 countries. SAP is the world's 3 largest independent software vendor. 1. 2. 3.

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184 Market Position: In India SAP has more than 600 customers and 1000 installations (more than 60% of rd market share) 3 largest market for SAP apart from UK & USA 3. SAP Releases, Versions, Service packs/ Patches, Country specific Add-on components/ settings, Modules-Core modules & Additional modules, New dimension products: 3a) Releases R1, R2 (mainframe version), R3 1990s 3b) SAP versions & Country versions: Version Year of launch Support from SAP up to
2.2X 3.0B, C, E, G, 3.1G, 4.0A 3.0D 3.0F 3.1H 3.1i 4.0B 4.5A 4.5B 4.6A 4.6B 4.6C 4.7 End 1998 End Oct98 End Mar00 End Sep00 Oct00 End Dec03 End Dec03 End Oct99 End Dec03 End Sep00 End Dec03 Q1, 2006 Q3, 2007 (core 4.7) Q3, 2005 (ent extensions 1.1) Country specific (India Version) CIN CIN version Version CIN 2.0C3.0F CIN2.1B3.1H CIN2.2B4.0B CIN 3.0A4.6B CIN 4.0A 4.6C CIN 4.0A4.7 R/3 Remarks/ Support until

1997 1999

Dec 2003 Add-on component/ patch until 4.6C Mar 2006 Packaged along with R/3 / integrated

2000 End 2000 Q1,2003 (R3 Enterprise verion) Latest version: 4.7 SR1Aug 2004

(India specific Chart of Accounts, CAIN instead of INT (International chart of Accounts)

3c) Country specific settings/ customizations available in SAP: i) Installable country versions in Customizing setting (SPROGeneral settings) with relevant chart of accounts (FICO) & HR / Payroll settings ii) Purchase Account Management applicable to certain European countries like (feature needs to be activated in customizing setting) iii) EWT (Extended Withholding Tax) functionality applicable to certain countries 3d) Modules, Sub-Modules: Functional Module Description FI-CO * Finance & Controlling MM* Materials Management SD* Sales & Distribution PP* Production Planning (PP-PI) PM Plant Maintenance QM Quality Management PS Project System HR CO-PA CS EIS WM SAP office & CA (Cross Applications) Human Resources Controlling-Profitability analysis Customer Service Executive Information Systems Warehouse Management Work flow, SAP mail, Configuration,

Remarks

MRP most important sub-module, PP-PI for Process Industries Now it is very common More suitable for Project based manufacturing / Machine tool manufacturers (ABB, BHEL, Triveni Engg) , Software companies (Infy, Satyam) Payroll most important sub-module

Triveni Engineering Very common with US & Gulf clients (part of Logistics Execution) KMAT (Configurable materials) projects are by an entity itself with certain clients, Workflow configuration very popular with US clients now

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184

*Core modules (SD, MM & PP are the important modules of Logistics i.e., from procurement to sales) Technical: Basis ABAP/4 ALE, EDI, IDoc, BAPI, RFC System Administration of SAP R3 (Advanced Business Application th Programming Language (4 Genration Language) Application Link Enabling, Electronic Data Interchange , Intermediary Documents, Business Application Programming Interface , Remote Functional Call

Features / technical components available in SAP to communicate and exchange information with external SAP R3, R2 / non-SAP systems

3.e) New Dimension Products: SEM (Strategic Enterprise Management), PLM (Product Life Cycle Management) APO (Advanced Planning & Optimization) SRM (Supplier Relationship Management) (Requires SAP Netweaver_ mySAP SCM mySAP CRM

3.f) Other Products: BW- Business Information Warehouse: Needs RFC connection with SAP R3 for data extraction 4.a) Scope & Position of SAP Consultants in the Organizational Structure:

Some SAP team sizes in consultancy organizations: Satyam: 1200, IBM > 1500, Accenture>1500 , Siemens >800, Bristlecone>600, Digital/ HP> 1000, Congnizant>100 (acquired Ygyan), Vmoksha>50. There are more than 30 implementation & supportive SAP consultancy firms 4b) Scope of SAP Projects / Employment opportunities: i) Greenfield (New) & Global implementations (across countries for homogenous business practices-Molex, AT & S, MNC companies). Currently lot of SMB (Small & Medium Business) implementations are going on in India for e.g., Nilkamal Plastics, Jyothi CNC automation, Jupiter Knitting etc., ii) Upgrade to higher versions & Enhancement of existing versions to improve utilization and business efficiency (ABB, AT & S, Alembic etc., ) iii) Support projects (helpdesk support for day to day problems, minor improvements based on tickets using CRM / workflow packages like Remedy, Lotus notes etc., iv) Training of individuals, corporate users etc., Training is also part of implementation v) Newer versions of SAP & New generation products create a demand for consultants

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184 SAP implementation/ upgrade/ support projects are executed under VPN (Virtual Private Network & Bonded warehouse environments) mostly, with stringent SLAs (Service Level Agreements) & IP (Intellectual Property) requirements of the clients 5. SAP R3 System Architecture/ System Landscape: 5a) Live implementation/ support environment: System Landscape consists of DEV, QAS, PROD servers (Development, Quality, Production servers) to ensure that configuration settings/ changes are released / transported to Project Leaders/ Process owners (normally in support environment) and systematically and approved by them from DEV server to QAS server, tested in the QAS server to check the performance (unit and integration testing) before it is released to Production Server. SAP Licenses are maintained by Basis Administrator through OSS userid (Online Support Service Userid which is given by SAP to its customers. Normally it is a 3-tier architecture viz., Central Instance (SAP R3 instance) & Database instance (it can be oracle, MS-SQL) on separate servers connected to Clients / user PCs (which are installed with SAP GUI (Graphical User Interface). This kind of installation is also termed as Distributed System viz., Central instance host and Database instance host separate) Some sample of number of users: ONGC: more than 1000 users, Ericcson>3000 users

5b) Training Environment: System Landscape consists of DEV & PROD servers tied up in a logical loop (no physical DEV, PROD servers will be there) in a single server connected to the clients. It is also a 3-tier architecture but normally Central instance & Database instance are on the same server (Central System host). This installation is termed as Central System In both the above architecture /environment any customizing setting will lead to a pop-up screen (Cutomizing request/ prompt) with a unique identity key (assigned to the consultant by system/ BASIS support team). These customizing settings are then to be released by individual consultant to the project leader/ process owner through Customizing & Transport Organizer (Transaction code SE10-Transport Organizer). Details under Transport Management System (TMS) . Customizing requests will have Source & Target clients and the owner of the request.

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184

6. Concept of Client in SAP & Basic Customizing settings required to set-up Organizational Structures: CLIENT in SAP terms is different from Client-Server concept in the sense that SAP Client is the highest level at which the data is retained. It holds the data of underlying companies, Controlling Area, Business Area, Chart of Accounts, Sales Organization, Plant, Warehouse etc., of the underlying companies. But there are still some settings like Calendar which are common across clients. Standard Clients supplied along with SAP Client no 000 001 066 Standard Client Description Client no 800 810 820 IDES Demo Client (separate license required) Description

Earlywatch client

Clients 000, 001, and 066 are part of the R/3 delivery system. Customers are not allowed to work in 000 & 006. Although one may work in client 001, SAP recommends that you create a new client as a copy of client 000 and work in this new client. Each new client in the ASAP three-system landscape is created from client 000 with the client copy tool. After post-installation activities are completed in the development system, the client copy tool is used to create clients CUST and TEST. At some point in the implementation process, the quality assurance system is installed and requires at least one client, the quality assurance test or QTST client. In addition, a

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184 training client or TRNG may be required. During the final stages of implementation, the production system is installed and the production client PROD is created. ASAP-System Landscape Methodology (1) ASAP-System Landscape Methodology (2)

Basis Administrator will copy the Client 000 (allowed namespace 002 to 999) to DEV, QAS, PRD servers. 7. Project Implementation Methodology: SAP recommended Methodology is ASAP (Accelerated SAP) Stages of ASAP methodology depicted in the pictorial below

Key ASAP Deliverables as depicted below

A model Go-Live Project:

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184

In terms of implementation approach we can classify it into Big-bang implementation & Phased implementation approach. Companies follow Big-bang approach (Implementation of All modules at all locations totally migrating from legacy system to SAP R3) at one stroke e.g., TVS motors, In Phased approach or they go for few core modules in Phase I at one location / multiple locations and remaining additional modules at other locations at a later phase e.g., Triveni Engg, Navin Flourine etc., 8. Documentation for learning individual module / Course Curriculum: 7.a) Training Material organized by Global Cynex 7.b) SAP-Introduction document organized by Global Cynex 7.c) Learning documentation list given in separate Annexure for individual module 9. SAPNet/ Online Service Support, OSS Note SAPNet - R/3 Frontend (formerly Online Service System (OSS)) provides the infrastructure for SAP's R/3 Service & Support and is the primary medium for problem management. It is the technological link between customers, SAP partners and SAP. Beyond this, SAPNet - R/3 Frontend provides access to valuable information about known problems and helps you resolve them on your own or with the help of the SAP Support Team. SAP customers have free access to SAPNet - R/3 Frontend wherever they are 24 hours a day. They can also access through web-browser at http://service.sap.com/login with the required userid and password. The following are examples of tasks that can now be performed via SAPNet: . Searching for SAP information . Requesting new SAPNet users . Searching for R/3 notes . Requesting SSCR keys. . Downloading SAP patches 10. Customizing / Implementation Guide (IMG) -brief introduction, Data in SAP: Input data, Transaction data, Output data: Customizing of SAP R3 refers to tailoring a standard ERP package to suit a customers business processes or mapping of SAP to customers business processes. Customizing (IMG settings) can be broadly modularized into Reference IMG (Standard SAP settings), Enterprise IMG (settings relevant to the customer/ organization), Project IMG (settings relevant to only particular project) This is done by both Functional & Technical consultants by i) setting up structural framework or Definition /Assignment for various organizational elements like Finance Controlling, Sales & Distribution, Materials Management, Production Planning etc., ii) Critical customization settings done to turn ON & OFF certain screens and fields and to control data flow during transactions iii) There are also some vital settings like Setting Valuation Area, Activating Batch Management/ Split Valuation where he shouldnt make a mistake iv) Consultants should also device fool proof methods to avoid replication of master data when implemented across plants and companies for a client

Address : SG Softech (Ind) Pvt Ltd, 1St Floor, Honnam Complex, 8/12, South Cross Road, Basavanagudi, Bangalore 560 004, Tel : +91-8051203956 / 51312183, Fax: +91-80-51312184 Assignment of user roles and profiles: SAP has more than 500 standard user roles and profiles (like Purchasing Manager, Invoice Clerk etc.,) who are authorized to only certain transaction codes. Basis Administrator assigns the user roles and profiles based on both functional and technical consultants requirements Data in SAP can be broadly sub-divided into Input data, Transaction data & Output data: Input Data: Inputted by users while performing their business functions like creating a master data, raising a Sales/ Purchase Order/ Invoice/ Credit Memo/ Debit Memo/ Stock Transport Order etc., Transaction Data: This is internally generated System data controlled by Customizing settings and structural settings Output Data: Output Data generated by SAP through Standard Reports, SAPscript, SMARTFORMS & custom ABAP reports. IS (Information Systems) Module deals with standard reporting needs for all the modules 11. Profile of Global Cynex and how it is positioned to handle the training of SAP its contact addresses: GLOBALCYNEX, INC., was established in 1998, to provide the technical assistance to corporations in order to achieve their data processing goals in various fields. Global Cynex is armed with Release 4.7 SR1 latest in the market with a structured approach, excellent infrastructure & practical orientation with live project simulation. Future plans include tie-ups with consulting houses for development projects, placement assistance etc., For the profile of Global Cynex please visit the website at http://www.globalcynex.com/
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