Enterprise Resource Planning (ERP) System Intro to
SAP R/3
Computer system that integrates application programs in accounting, sales, manufacturing, and other functions in the firm – EnterpriseEnterprise-wide resources needed to make, ship, and account for customer orders
Integration accomplished through a database shared by all the application programs Allows firm to achieve endend-toto-end connectivity [internal]
Reasons for Implementing ERP
ERP Systems Case studies show that firms that have implemented ERP systems have made improvements in interinter-functional coordination and business performance at various levels (reduced cycle times, reduced inventory, information sharing). However, ERP systems are extremely complex pieces of software requiring huge investments of financial resources, time and expertise.
Desire to standardize and improve processes Improve the level of systems integration Improve information quality
– Improper implementation could lead to huge problems Hershey’ Hershey’s FoxMeyer Drug
SAP Systems, Applications, and Products in Data Processing (SAP) Name of the company – SAP AG – SAP America
Name of the software – SAP R/2 – Mainframe version – SAP R/3 – Client/Server version
SAP AG
Founded in Germany (1972) World’ World’s fourth largest software provider World’ World’s largest provider of Integrated Business Solutions software Company stock trades on the Frankfurt and New York exchanges
1
SAP R/3 WorldWorld-wide usage Designed to satisfy the information needs for all business sizes (small local to large international) – MultiMulti-lingual – MultiMulti-currency
Designed to satisfy the information needs for various industries (industry solutions)
SAP Oracle
Integrated Business Solutions Software Vendors
– PeopleSoft, J.D. Edwards
Infor Global Solutions Sage Group Lawson Software Microsoft Dynamics
SAP R/3 Enables a company to link its business processes Ties together disparate business functions (integrated business solution) Helps the organization run smoothly RealReal-time environment
Architecture Central relational database (e.g., Oracle, Informix, Microsoft SQL, and many others) Client/Server – threethree-tiered ERP Component – Oriented towards common identifiable business modules (FI, MM, SD, CO, PP, HR) AddAdd-ons: – Customer Relationship Mgmt (CRM) – Supply Chain Mgmt (SCM) – Product Lifecycle Mgmt (PLM)
Relational Database Defines and links thousands of tables of information (25,000+) Advantages – Consistent and accurate data – Common definitions for terms – Shared, but restricted usage (e.g., profiles)
Client/Server Environment Client – Software/hardware combination that can make a request for services from a central repository of resources
Server – Software/hardware combination that can provide services to a group of clients in a controlled environment
– Eliminates data redundancy
2
SAP Enterprise System
Three-Tier SAP Structure PCs, Laptops, etc.
GUI – Graphical User Interface Or Web Interface
Browser Client
Network
– http://portal1.cob.csuchico.edu/
Application server (one or many) Database server (one single location)
Internet Transaction Server
Presentation
Application
Web Server
Application Servers
Database Database
SAP Enterprise System
Business Modules SD
FI
Sales and Distribution
Financial Accounting
MM
CO
Materials Mgmt.
PP
Production Planning
SM
Service Mgmt.
Controlling
R/3
AM
Fixed Assets Mgmt. EC
Enterprise Client / Server Controlling QM Integrated Business PS Quality Project Mgmt. Solution PM WF System Plant Maintenance
Workflow
HR
IS
Human Resources
Industry Solutions
SAP R/3 Advanced Basics Instance – each install of the SAP R/3 software on an individual application server Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits) Most of the infrastructure decisions, including configuration decisions, occur during project implementation
Collections of logically related transactions within identifiable business functions – – – – –
MM (“ (“Buy” Buy”) PP (“ (“Make” Make”) SD (“ (“Sell” Sell”) FI and CO (“ (“Track” Track”) HR
Configuration The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access) DOES NOT involve changes to the underlying software code
3
SAP R/3 Document Principle
Programming Code Modifications Changes to the delivered code ABAP/4 – Advanced Business Application Programming (ABAP) This should be done sparingly and carefully as it can make migration to new versions of the software much more difficult
Internet Demonstration and Evaluation System
Each business transaction that writes data to the database creates a uniquely numbered electronic document Each document contains information such as – Responsible person – Date and time of the transaction – Commercial content
Once created, a document can not be deleted from the database
IDES - Overview of Divisions
Features IDES Group
– Fully developed model company – Based on a standard R/3 system
IDES Industry
– Master data and transaction data
IDES Retail
– Complete Customizing Customizing IDES Banking
– Comprehensive data and process descriptions for crosscross-component business processes
IDES Services
– Online documentation with selfself-learning units on the business processes in the consolidated group
IDES Company Codes - Overview
IDES Subgroups - Overview
IDES Industry
IDES Industry
IDES Europe 4000
IDES Europe
Frankfurt / De London / GB
3000
IDES N. America
2000
IDES N. America New York / USA Toronto / Canada IDES Asia
6000
IDES Mexico
1000 2200 2100
2300
Paris / Fra Lisbon / Por 5000
Barcelona / Esp IDES Asia Tokyo / Japan
Mexico City
4
IDES - Production Industry Engineer-toorder production
JIT assembly production
Make-to-order production
Production by lot size
Repetitive manufacturing
Process manufacturing
SAP for Engineering, Construction & Operations – Elevator and turbine production – Power plant construction
Organizational Structure of 'Accounting'
SAP for Automotive – Manufacturer processes – Supplier industry SAP for Consumer Products – Production of foodstuffs and 'non'non-foodstuffs'
Mass
SAP for High Tech production – PC assembly and SAP for SAP for Pharmaceuticals service Aerospace/Defense Aerospace/Defense – Tablet production SAP for Chemicals – Production and – Paint and solvent maintenance of a production power plant
Organizational Structure of 'Distribution'
CrossCross-section of the Sales Organization Generally, only individual organizational units are ever involved in a concrete business process. E.g.: – Company code Germany – Sales organization Frankfurt – Sales office Frankfurt – Division 'Pumps' – Consumer sales – The credit limit of debtors is monitored in credit control area 1000. 1000.
Organizational Structure of 'Logistics' Shipping point 1000 [VST] 1001 Storage location (SL)
0001
1200
1300
1400
2000
3000 3100 3200 3300 3400 3500
1999
0001 0088
0088 9988
1100
0001
0001
0001
0001
0088
0001
0001
0001
0001
0001
BUK 1000
DD 1200
0001
F 1300
0001
0001
0001
0001
Einkäufergruppe 000 Chef H.
B 1100
3700 3800
0001
Purchasing Organization 1000
HH 1000
0095
0088
0100 0101
Werk [WRK]
3600
3999
S 1400
2000 EKG 001 Dienstleistungen
Heathrow 2000
BUK 2000
EKO 3000 EKG 003 Komponenten & Motorräder
NY 3000
CH A LA SE DA WI OL DE 3100 3200 3300 3400 3500 3600 3700 3800
BUK 3000
5