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Implementation of SAP in Getz Pharma

Implementation of SAP in Getz Pharma

Submitted by: Moniza Aslam (56325) M Bilal Sheikh (56426) M Shahzad Meo (56127) Program: BBA-ERP Course: INTO TO MIS ERP Sir MAQSOOD RAZI

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. 10 SAP Quality Management: ...................................................................................................................................................... 8 Deployment and Maintenance Cost: ................................................................................................................................................................................................................................................................................................................................................................................................................ 8 SAP Controlling:......................................................................................... 8 SAP Financial Module: .................................................................... 15 Page 2 ......................Implementation of SAP in Getz Pharma Contents Acknowledgement ......................................................................................................................................................... 9 Product Cost Controlling: ...... 7 Disadvantages of ERP: ......................................................................................................................................................................... 11 HOW ERP IMPLEMENT Questionnaire .................................................................... 10 SAP Sales and Distribution Module: .................................... 11 SAP Production Planning: ............................................................. 5 Mission: ... 6 Values: ....................................................................................................................................... 9 Cost Element Accounting: .............................................................................................................................................. 7 Advantages of ERP: ......................... 6 Enterprise Resource Planning (ERP): ..... 7 Introduction to SAP AG: .................... 7 Implementation: ........................................................................................................................................................... 6 Getz Pharma Enterprise Management on SAP: ......................................... 12 Cost Benefit Analysis: ......................................................................................................................................................................................................................................................................................................................................................................................................................... 8 SAP MODULES: .................................................................................................................................................................................................. 4 Company profile ...................................................................................... 9 Internal Orders: ................................................ 10 SAP Material Management Module (MM):................................................................................................................................................................................................................................................ 9 Cost Center Accounting: ........................................................................................... 7 Introduction to SAP ERP: .................................. 9 Activity Based Costing: .................... 9 Profitability Analysis: ..................................................................................................... 9 SAP Human Capital Management: ....................................................................................................................................................................................................................... 9 Profit Center Accounting: ................................................................................................................................................................................................................................................................................................................................................................................................

.................................................Implementation of SAP in Getz Pharma Recommendations: ................................................................... 15 References:............. 15 Page 3 ........................................................................................................................................................

I have really gained much knowledge from this subject of Management Information System and ERP and the most important point is the methodology of teaching of our teacher who makes the difficult topics very easy for us in a much efficient and précised way. This was assigned to us by our respected teacher SIR. Sincerely. Page 4 .It is an honor for me to prepare this report on Implementation of SAP in Getz Pharma. May Allah bestow His blessings upon him to serve the young generation in the same way forever. MAQOOS RAZI.Implementation of SAP in Getz Pharma Acknowledgement First of all Thanks to Almighty Allah who gave me strength to study.

Malaysia.Getz Pharma has a well-entrenched leadership position with major shares in hepatology. ENT. as well as strong presence in following therapeutic areas:       Pulmonolgy. Vietnam.cardiology and infertility. Infectious diseases. gastroenterology. Hong Kong. Kenya and central Asian States. Getz Pharma is the second highest investor and taxpayer in Pharmaceutical sector of Pakistan that is the good commercial citizenship and governance.Getz pharma had been awarded best performance award in pharmaceuticals from FPCCI for last five successive years for the being uppermost exporter in pharmaceuticals. diabetology. Rheumatology.Getz Pharma is also the second largest contributor to Ministry of Health Central Research Fund (CRF). Orthopedics. Pediatrics.The company provide work for 2. The fact that their products are globally accepted and demanded is the assurance b y the medical community and patient’s globally. Afghanistan. Getz Pharma assembles the products that meet and go beyond the standards of international markets.500 people in Pakistan.Implementation of SAP in Getz Pharma Company profile Getz Pharma is the fifth leading pharmaceutical company of Pakistan and is the most important pharmaceutical exporter from Pakistan. Brands of Getz Pharma holds market leadership in their respective classes including Uniferon and Risek which are the 13th and 20th largest brands of entire pharma industry of Pakistan.Getz Pharma is marketing its products to Philippines. Page 5 .

Respect for Business Associates and Clients: Getz pharma is trying to build and sustain longterm and visible relationship with its business partners it will penetrate the production with reliability and trust. Values: Respect for People: Principles. Focus on Safe Technology: Getz Pharma is a socially responsible pharmaceutical company it is using the technology that adds value to its products and services without causing harm to the environment.Getz pharma is also providing the highest toll manufacturing services to other ethical marketers of health care products. Getz Pharma uses following modules:         Sales & Distribution Material Management (MM) Production Planning Plant Maintenance Quality Assurance / Control Financials Controlling Human Capital Management (SD) (PP) (PM) (QM) (FI) (CO) (HCM) Page 6 . people and system to implement SAP. Getz Pharma Enterprise Management on SAP: Getz Pharma being a leading pharmaceutical company is constantly investing in the state of technology. employees. marketing and reputation so each share is treated with dignity and fairness. now every function in Getz Pharma is running on SAP.Getz Pharma implemented SAP in 2008. suppliers are the quality and services basis of Getz Pharma which are responsible for quality management.Implementation of SAP in Getz Pharma Mission: Mission of Getz pharma is to increase and manufacture and market safe and quality and health care products that will improve health and quality of life. by using SAP entire business model was decoded on to SAP.

Introduction to SAP AG: Five former employees of IBM founded SAP AG in 1972 to create and develop a real time business data system. Reduces possibility of redundancy and mistakes. SAP modules support several functional areas which include:  SAP ERP financials  SAP ERP Operations  SAP ERP Human Capital Management Page 7 .SAP is based on modules programs that are purchased.0. run and installed individually but extract data from the common database. Advantages of ERP:       Build well-organized working environment for employees. Introduction to SAP ERP: SAP ERP is manufactured by SAP AG used by midsize and large business organizations in all sectors it is integrated Enterprise resource Planning software that allows communication between all functions of the company.SAP AG has launched its upgraded its Enterprise resource planning in 2005 as SAP ERP Central Component (ECC) 6. vendors have best past knowledge to deal and take advantage from the system Provides global assimilation. Disadvantages of ERP: May cause project failure if not properly implemented  Inflexibility  Expensive  Take too long to generate ROI (Return On Investment).The purpose to upgrade the ECC was to build and create an environment where all the functions works upon the foundation of central component. which includes finance. Provides genuine information. It not only controls the internal flow of information but also manages the external information. supply chain management. sales and Distribution.manufacturing. Need to be updated once when implemented.customer relationship management.Implementation of SAP in Getz Pharma Enterprise Resource Planning (ERP): Enterprise resource Planning is used to manage and control the information of different functional areas in an organization.

utilities of marketing and sales inventory control and finance and accounting. human resource management. Deployment and Maintenance Cost: Estimated cost of implementing SAP ERP for large companies including hardware. Sales and Distribution (SD). SAP MODULES: Most widely used SAP modules are Human Resource.cost of implementing SAP ERP depends on the size of an organization greater the size higher will be the implementation cost. Financial and Controlling (FICO). SAP Financial Module: One of the most essential modules in SAP is SAP financial module it is designed to deal with finance and accounting needs of an organization and is used to integrate activities within an organization and provide updated information of finance which is useful to make strategic decisions in an organization.Mid sized firms spend approximately $10 to $20 dollars on implementation of SAP ERP. Quality Management (QM) and Plant Management. SAP Finance module has following sub modules:       General Ledger Account Receivables Asset Accounting Account Payable Travel Management Bank Accounting. More than 30.Implementation of SAP in Getz Pharma Implementation: Implementation cost of SAP ERP is very high even then many organizations fail to implement SAP ERP properly they experience several problems . It consists of several modules like product design and development.SAP ERP combines and collects data from several modules in order to provide organizations with Enterprise Resource Planning. Material Management and Product Planning. Each module is integrated to the other one but perform its own business task. software and consulting cost can easily go above$100 million (around $50 million to $500 million) and many `large firms also spend $50 to $100 million on up gradation of its SAP ERP. Flexibility of financial modules can tackle any economic condition. Page 8 .000 best-businesses in 120 countries are running SAP for their financial activities. small companies don’t need to apply SAP ERP until and unless they have possibility of being a mid siz ed firm.

Activity Based Costing: It enhances Cost Center Accounting and provides cross-factional view of Cost center Accounting it is used with Product Costing and Profitability Analysis. Product Cost Controlling: Determine manufacturing expenditure and variation. legal. Page 9 . support. Internal Orders: This module is used to collect business transaction information and internal order review for decision making.Implementation of SAP in Getz Pharma SAP Controlling: The SAP CO module works closely with financial module of SAP and it takes data from internal management and provides them review of cost so that management can analyze profitability with the help of that data. distribution and internal measurement. Profitability Analysis: Provide report by product line. it works closely with both functional and business areas of the organization. human resource. Cost Center Accounting: This module provides information related to the cost incurred by an organization. marketing. Cost centers handle finance. Profit Center Accounting: Provide sales and profit report from the market segments and customers. Cost Element Accounting: This module deals with the cost accounting it enable the user cost of each account and works with FI module to provide all information related to revenue and cost within the organization.

It manages and controls all the information of employees like absences. It helps an organization to manage information of your most valuable assets your people. It consists of following sub modules:  Organizational management  Payroll  Personnel Management  Development and Training  Event Management  Personnel Administration  Time Management SAP Sales and Distribution Module: SD module of SAP deals with the sales and billing orders of consumers.Implementation of SAP in Getz Pharma SAP Human Capital Management: SAP HCM is most popular and important module of SAP. Page 10 . it support Supply Chain Management (SCM). It manages all the vendor information. logistics.scheduling agreements. Sales and distribution have following sub-modules:      Output Management Pricing conditions record Material Master Credit Management Customer master SAP Material Management Module (MM): This module deals with logistics and its management. replenishment of stock and inventory management are all controlled by this module.Business Information warehouse(BIW).Supplier Relationship Management(SRM). it help organizations to manage and integrate information about people working in an organization contain all data from hiring. suppliers information.SAP MM module issues a requisition for purchase of material than purchase order is issued for the authorized vendor than SAP MM module generate a receipt for the goods requested from the vendor.SAP MM module issues requisition for purchases of material. training of employees.purchases. shipping and invoice creation works along with Material Management and Product planning modules of SAP.SD module provide overall information of demand and supply of the product.SAP works with these modules because when an invoice is generated it triggers the availability and demand of product which automatically impacts the PP module unavailability of product may impact MM module by making order for the availability of product from vendors to overcome the unavailability. firing till retirement.

stock requirement and correct extent is available on time. inspection.Implementation of SAP in Getz Pharma SAP Quality Management: This module of SAP controls and manages the quality issues. It supports product planning. notifications and certificates and test equipments. Page 11 . long term production planning. billing and requisitions of material. It uses components like Quality Planning. quantity required. Production planning deals with the demand and production. It provides assurance that the product meets the standards of company product terms. supply chain management and quality of assets to make it efficient and effective. SAP Production Planning: It controls master data regarding production in MRP (Material Requirement Planning) it manages information about stock replacement.

What were the steps in implementing the process?         It depends on the methodology you have selected for the implementation. Project Preparation. Following are the steps involved in the entire project. Flexible and detailed reporting was not available. 4. Unable to cover all organizational critical business processes. Page 12 . Selecting the right implementation methodology. Choosing the best people for the entire project.  To have a controlled and well integrated system. Not many features were available. and some features were not fulfilling our requirement. Realization. What was the basic motivation in going for an ERP system?  Real time transaction posting.  Paperless environment.Implementation of SAP in Getz Pharma HOW ERP IMPLEMENT Questionnaire 1. 2. Go-Live & Support. 3. Business Blueprint. Choosing experienced implementation partner. Final Preparation. What were the problems that you faced with the earlier system or process?     The product was not matured.  Implementation of Best Practices. We had selected ASAP methodology and Big-bang approach. What kind of planning was done before implementation?     Preparation of as-Is business processes.

customer satisfaction and other indicators before and after implementation? After implementing SAP our system and business became more efficient by which not only our internal environment was benefited but it also become beneficial for our external factors. it reduced our cost and provided our business with business process monitoring.  We selected modules with demo of particular module and our existing scenarios. If a purchase order is created but not approved within a certain timeframe that will create an alert – and potentially save the company money. Financial. which provides alerts when a process breaks or slows down.It increased confidence in financial reporting and address changing financial compliance requirement. What is the cost of maintaining and implementing ERP? The cost is actually very high but if the internal team is capable and trained enough you can control that cost. operational.  We had to change some of our existing business processes according to best practices proposed by the ERP. we achieved 90% of what we were expecting. How you selected the ERP and Modules?  We had approached the top companies around the world in our business domain  We had reviewed their success stories that how ERP helped them in achieving their goals. 7. Page 13 .  We selected ERP with user reviews of people already running that ERP. Evaluation of the current implemented process (Success and problems)?  After the implantation of ERP we had gained over 100 % improvement in our processes efficiencies. 9.Implementation of SAP in Getz Pharma 5. 6. Did you achieve the outcomes you expected?  Yes. 8.

Implementation of SAP in Getz Pharma 10.  Some of the major modules of ERP are listed below. Companies hesitate in huge investments. ERP enforce you to change yourself. Advance Planning and Optimization.  There might be a possibility that employee turnover may increase if the company does not compensate the employees after ERP implementation. Page 14 .  Employee feel empowered after having working experience of ERP. Warehouse Management. Why is it so difficult to implement ERP?     Because people don’t want to change themselves. How many modules are there in SAP/ORACLE/MICROSOFT DYNAMICS?  ERP covers almost every functional area of any enterprise. How many are implemented and why?      We have implemented all from above list except. 11.ERP it self do not create competitive advantage but it provide basis which managers can utilize to outperform competitor. What was and what is your employee ratio before and after implementation of this process?  This can vary from company to company but job functions and roles of employees are changed after ERP implementation.Impotance of Top-level management support ERP and data warehouses as a ‘bolt on’ is very beneficial for an enterprise. Expertises are very limited. 14. 13. What was the IT Infrastructure? It depends on the current IT infrastructure of the organization but there is a possibility that you have to invest significantly in the infrastructure. 12. Those which are not implemented and why? Right now these are not required. How can businesses use ERP for competitive advantage? For some organizations it is necessary to implement ERP while other use it as competitive advantage.  Financial / Controlling 15.

Company has achieved its corporate objectives and had improved operational efficiency and productivity and has solve complex business challenges. Integrated environment. financial controls and managed risk. 17. Properly secured data.Time period (for how long is ERP implemented)?  It depends on the scope of the project but it should not take more than 1.php http://www. Centrally maintained information.com/default.erpexecutive.We had implemented in six months Cost Benefit Analysis: From the above information the cost or investment in the project of implementing SAP is high but its benefits are higher than the investment made.SAP has also increased profitability. Easy access on information.getzpharma. By implementing SAP in Getz Pharma new ways are provided to employees in order to access the enterprise information required for their daily activities which had increased the efficiency and accessibility.What are the benefits?       There are numerous of benefits. Paperless environment.5 years to implement.com/2011/03/deliver-more-benefits-at-lower-cost-with-sap-applicationlifecyle-management/ http://www. References: http://www.  Train their employees about updated changes so that employees become more familiar to the system. Recommendations: In order to make business process more effectively and get more benefits from imlpemnetd system following things should be considered:  Update the system to get more benefits.Implementation of SAP in Getz Pharma 16.com/content/ru65767m114x1213 Page 15 .  Evaluate business process needs in order to make improvements.springerlink.