SAP ERP OVERVIEW

by

M S RAVI PRAKASH

1

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 .

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

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 .

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

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

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

SAP R/3 What is all about Systems Applications & Products in Data Processing .

SAP & Modules SAP Package is strategically divided into 2 main areas. People with domain experience can work on functional modules. Functional & Technical. 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.

4 billion 60.THE SAP COMPANY SAP AG in 2002 revenues: ½7.100 installations 19.654 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 .300 companies run SAP Providing 23 Industry Solutions 28.

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 .

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 .The SAP World SD Sales & Distribution FI Financial Accounting MM Materials Mgmt.

The Database Layer stores and retrieves all data. The Application Layer uses the application logic of SAP programs to collect and process the process requests.3-Tier Client/Server Architecture Communication The Presentation Layer collects user input and creates process requests. .

SAP R/3 Customer Installations by Industry Others 11.8% Consulting & Professional Services 6.5% Worldwide SAP CONSUMER PRODUCTS 10.3% Metal.3% SAP ENGINEERING & CONSTRUCTION 10.4% SAP PHARMA CEUTICALS 3.5% SAP UTILITIES 3.2% SAP TELECOMMUNICATIONS 3.4% SAP PUBLIC SECTOR 3.9% SAP AUTOMOTIVE 4.1% SAP OIL & GAS 3.8% Services 3.3% .0% SAP MEDIA 2.5% SAP BANKING 2.0% SAP RETAIL 6.4% SAP CHEMICALS 9. Paper & Wood Products 2.3% SAP HEALTHCARE 2.3% SAP HIGH TECH & ELECTRONICS 11.

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 .

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 .SAP .

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

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 .

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

Implementation Methodology .

SALES AND DISTRIBUTION .

GENERAL SETTINGS COUNTRY CURRENCY TIME ZONE CALENDER UNITS OF MEASURE FACTORY VENDOR CUSTOMER BASE SALE DELIVERY .

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 .ORGN P.ORGANIZATION STRUCTURE CNTRL AREA COMPANY P.

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 .

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