3. Enterprise Resource Planning (ERP) System. Reasons for Implementing ERP SAP. ERP Systems. Intro to

Enterprise Resource Planning (ERP) System Intro to SAP R/3 ƒ Computer system that integrates application programs in accounting, sales, manufacturin...
0 downloads 4 Views 458KB Size
Enterprise Resource Planning (ERP) System Intro to

SAP R/3

ƒ 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

ƒ Integration accomplished through a database shared by all the application programs ƒ Allows firm to achieve endend-toto-end connectivity [internal]

Reasons for Implementing ERP

ERP Systems ƒ 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). ƒ However, ERP systems are extremely complex pieces of software requiring huge investments of financial resources, time and expertise.

ƒ Desire to standardize and improve processes ƒ Improve the level of systems integration ƒ Improve information quality

– Improper implementation could lead to huge problems ƒ Hershey’ Hershey’s ƒ FoxMeyer Drug

SAP ƒ Systems, Applications, and Products in Data Processing (SAP) ƒ Name of the company – SAP AG – SAP America

ƒ Name of the software – SAP R/2 – Mainframe version – SAP R/3 – Client/Server version

SAP AG ƒ ƒ ƒ

Founded in Germany (1972) World’ World’s fourth largest software provider World’ World’s largest provider of Integrated Business Solutions software ƒ Company stock trades on the Frankfurt and New York exchanges

1

SAP R/3 ƒ WorldWorld-wide usage ƒ Designed to satisfy the information needs for all business sizes (small local to large international) – MultiMulti-lingual – MultiMulti-currency

ƒ Designed to satisfy the information needs for various industries (industry solutions)

ƒ SAP ƒ Oracle

Integrated Business Solutions Software Vendors

– PeopleSoft, J.D. Edwards

ƒ ƒ ƒ ƒ

Infor Global Solutions Sage Group Lawson Software Microsoft Dynamics

SAP R/3 ƒ Enables a company to link its business processes ƒ Ties together disparate business functions (integrated business solution) ƒ Helps the organization run smoothly ƒ RealReal-time environment

Architecture ƒ Central relational database (e.g., Oracle, Informix, Microsoft SQL, and many others) ƒ Client/Server – threethree-tiered ƒ ERP Component – Oriented towards common identifiable business modules (FI, MM, SD, CO, PP, HR) ƒ AddAdd-ons: – Customer Relationship Mgmt (CRM) – Supply Chain Mgmt (SCM) – Product Lifecycle Mgmt (PLM)

Relational Database ƒ Defines and links thousands of tables of information (25,000+) ƒ Advantages – Consistent and accurate data – Common definitions for terms – Shared, but restricted usage (e.g., profiles)

Client/Server Environment ƒ Client – Software/hardware combination that can make a request for services from a central repository of resources

ƒ 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.

ƒ GUI – Graphical User Interface ƒ Or Web Interface

Browser Client

Network

– http://portal1.cob.csuchico.edu/

ƒ Application server (one or many) ƒ 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 ƒ Instance – each install of the SAP R/3 software on an individual application server ƒ Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits) ƒ Most of the infrastructure decisions, including configuration decisions, occur during project implementation

ƒ 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 ƒ 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) ƒ DOES NOT involve changes to the underlying software code

3

SAP R/3 Document Principle

Programming Code Modifications ƒ Changes to the delivered code ƒ ABAP/4 – Advanced Business Application Programming (ABAP) ƒ 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

ƒ Each business transaction that writes data to the database creates a uniquely numbered electronic document ƒ Each document contains information such as – Responsible person – Date and time of the transaction – Commercial content

ƒ 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

ƒ SAP for Engineering, Construction & Operations – Elevator and turbine production – Power plant construction

Organizational Structure of 'Accounting'

ƒ SAP for Automotive – Manufacturer processes – Supplier industry ƒ SAP for Consumer Products – Production of foodstuffs and 'non'non-foodstuffs'

Mass

ƒ SAP for High Tech production – PC assembly and ƒ SAP for ƒ SAP for Pharmaceuticals service Aerospace/Defense Aerospace/Defense – Tablet production ƒ 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

Suggest Documents