ENTERPRISE RESOURCE

PLANNING
MANUFACTURING INDUSTRY
MRP 1 (Material Requirements Planning)
MRP 2 (Manufacturing Resource Planning)
ERP (Enterprise Resource Planning)
Enterprise Resource Planning
ERP covers the techniques and concepts
employed for the integrated management
of business as a whole, from the viewpoint
of the effective use of management
resources to improve the efficiency of the
enterprise.
Subsystems of an ERP System
Strategic and Operational Planning
Manufacturing
Materials Management
Quality Management
Sales & Distribution
Maintenance Management
Logistics Management
Human Resources
Finance
 Advantages of ERP
Business Integration
Flexibility
Better Analysis and Planning capabilities
Use of latest Technology
 ERP MARKET PLACE
1) SAP AG – 46%
2) Oracle Apps – 10%
3) J D Edwards - 7%
4) PeopleSoft – 6%
5) Baan – 5%
6) SSA – 5%
7) JBA – 4%
8) Marcam – 3%
9) Intentia – 2%
10) QAD – 2%
11) Others – 27%
 SAP R/3
SAP – Systems Applications and products
in Business Processing
Founded in 1972 in Walldorf in Germany
R- Real time environment
3- Three tier architecture
 SAP R/3

3 TIER Architecture- 3 functional layers

1) The Database layer- resides on central
servers or mainframe host computers.
2) The Application layer – holds the processing
logic of the system,preparing and formatting
data for individual offices or departments.
3) The Presentation layer- This is typically on
personal computers,handles all the tasks related
to the presentation data,including user interfaces
that enable easy access to complex applications
and data.
SAP R/3-FUNCTIONAL MODULES
1) Financial Accounting
2) Controlling
3) Production Planning
4) Materials Management
5) Plant Maintenance and Service Management
6) Quality Management
7) Project System
8) Sales and Distribution
9) Human Resource Management
 SAP R/3-TECHNICAL MODULES
1) ABAP 4 Workbench
2) SAP BASIS
ABAP – Advanced Business Application
Programming.4th Generation language used only
for SAP.Used to create reports,screens and also
for data transfer.
SAP Basis- SAP System Administration
The BASIS system is the middleware that allows
the application to run on different hardware and
system platforms.
 SAP R/3
1) SAP Easy Access( where the end user
works.)

2) SAP IMG(Implementation guide):This is

the customization screen where the
functional consultant works.The entire
documentation about SAP is stored in the
Reference IMG in the left hand corner.
 SAP R/3-Roadmap to
Implementation
ASAP Methodology(Accelerated SAP
Methodology)
1. PROJECT PREPARATION
a) Initial Project Planning
b) Project Procedure
c) Project Kickoff
d)Technical Requirements
e) Quality check
 ASAP Methodology
2. BUSINESS BLUEPRINT
a) Project Management
b) Organisation Change Management
c) Develop System Environment
d) Define Organisation Structure
e) Business Process Analysis
f) Quality check
 ASAP Methodology
3. REALISATION
a) Project Management
b) Organisation Change Management
c) Baseline Configuration and Confirmation
d) System Mgmnt.
e) Final Configuration and confirmation
f) Develop programs,Interfaces
g) Final Integration,test and Quality Check
 ASAP Methodology
4. FINAL
PREPARATION
a) Proj. Mgmt. 90
80
70
b) Training end users 60
50 East
c) System Mgmt. 40 West
North
30

d) Detailed Project 20
10
Planning 0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

e) Cutover activities
f) Quality check
 ASAP Methodology
5. GO LIVE
a) Product Support (Maintenance)
b) Project End.
 ASAP METHODOLOGY
The Accelerated SAP (ASAP) implementation
methodology requires that detailed
questionnaires be completed. We must also
document our current processes and workflow in
order to complete customer input (CI) templates.
All of the information we compile flows into the
Question and Answer database. In a few weeks
all of this input will result in the actual Blueprint
for Human ../Resources and Payroll – a major
milestone
ENTERPRISE STRUCTURE
Enterprise Structure is simply a way to
look at the organisation and how it and its
employees should be organized within the
software. In defining the HR Enterprise
Structure for the SAP system, we have to
consider Organization Structure (areas,
departments), Employee Structure (all
groups of employees), and Pay Structure
(payrolls and cycles).
 INFOTYPES IN SAP HR
Infotype - A set of data grouped together
according to subject matter. For example,
there is an Addresses Infotype in HR
ENTERPRISE STRUCTURE
Personnel Areas: The Personnel area
represents a specific area of the enterprise
and is organized according to aspects of
Personnel Time Mgmnt.and payroll.A
Personnel area is divided into several
Personnel sub-areas.
 ENTERPRISE STRUCTURE
Personnel Sub-areas:
A personnel sub-area represents a specific area of
the company organized according to certain
aspects of personnel,time mgmnt.and
payroll.The following business sub tasks belong
to the PSA.
1.Defining of pay scale and wage type structure
2.Defining planned working hours.
3.Defining appraisal criteria.
 ENTERPRISE STRUCTURE
Employee Groups:
The employee group allows you to divide your
employee into groups and allows you to define
their realtionship to the enterprise.The following
essential org.features can be carried out.
 Generating default values when entering data
e.g.the payroll accounting area or the basic pay
of the employee.
 Generating a selection criterion for evaluations.
 Generating a unit for the authorization check.
 ENTERPRISE STRUCTURE
Employee Sub-Group
The emp. Sub-group represents a sub division of
the employee group. When you define emp.sub-
group,you have essentially begun to set up your
Personnel structure.The following business
subtasks are assigned to emp.sub-groups:
 Specification of processing in Payroll accounting
 Specification of validity of primary wage types
 Specification of validity of work schedules
 Specification of validity of pay scale groups
 Specification of validity of time quota types
 ENTERPRISE STRUCTURE
Employee sub group
e.g Emp.group: Active
Emp.sub-group: Industrailworker,pay scale
emp., trainees,executive empl.
 ENTERPRISE STRUCTURE
Assignment
Assignment of Personnel area to company
code
Aloocation of each of the personnel areas to
the company code.When we create a
personnel no.,the corresponding company
code is allocated to it in the infotype
org.assignment(0001).
 ENTERPRISE STRUCTURE
Assign Emp.Group to emp.sub-group
Assign emp.sub groups to their respective
emp.groups.I addition,you determine
whether the emp.group/emp.sub-group
conditions are allowed for the country
groupings.
 SAP HR-BENEFITS
Benefit Areas
Benefit areas allow you to have separate
administration of different benefit plan pools.
 A benefit area can be administered in one
currency at a time only.For each currency,you
must have a min. of 1 benefit area.
 If benefit plans are to be administered by diff
benefit offices in the org.you can use diff.benefit
areas to make this distinction.
 If there are subsidiaries in the same country,then
you can create diff.benefit area for each benefit
pool.
 SAP HR-BENEFITS
Assign currency to each benefit area
Specify currency for each benefit area.
E.g.
B.A. Country Grouping Currency
01 10 USA USD
 SAP HR -BENEFITS
Benefit Plan Types
These are the diff plan types that you require for the plan
categories
The following plan categories are provided by SAP:
 Health Plans
 Insurance Plans
 Savings Plan
 Stock Purchase Options
 Flexible spending accounts
 Credit plans
 Miscellaneous plans
 SAP HR-Benefits
Benefit Plan status
Benefit plan status includes:
 Active: Employees can enroll in a plan
 Locked: Employees can no longer enroll in plan
because it is being phased out,but the plan is
still active due to continued participation.
 Closed: Plans have expired but a record needs
to be kept.
 Test: Plan is only for testing purposes and is not
available to employee in any form.
 SAP HR - BENEFITS
Employee Groupings
You can define emp groupings to determine how
plan related amounts vary based on
emp.data.You have to determine the possible
ways in which these amnts can differ between
groups of employees.You do not specify actual
amnts.The emp.groupings defined depend on
the complexity of the plans and on the company
policy.
 SAP HR -BENEFITS
Employee Criteria Groups
Emp.criteria groups are to determine how plan
related amnts.are to differ according to
emp.age,salary,seniority.You define
emp.criteria group as under:
1. Define parameter group that will include
individual criteria group.
2. To each parameter group,assign the individual
salary group,age group and seniority group.
 SAP HR –BENEFITS
Parameter groups:
Define which groups you require in two stages:
1. You consider which costs,credits,
coverage and employer & emp.contributions for
your plans vary according to the age,salary
and seniority of employees.

2.You determine the diff.ways in which you need to

divide your employees according to diff.value
ranges for these criteria.
 SAP HR-Benefits
Parameter Groups(contd.)
It is not possible to define overlaps of ranges for a
criterion within a single parameter group.If you
require diff.emp.groupings for diff.plans,you
need to create a separate parameter group.
E.G
The cost of an ICICI life Insurance plan varies
depending on the age and salary of employees.
The cost of the standard LIC plan also varies by
these criteria but would be diff.from ICICI.
 SAP HR-BENEFITS
Salary Groups
A salary group defines a spacific salary span
by associating high and low values within
a salary group identifier.