SAP

Chapter 06SAP

Introduction

System Application and Product (System Analysis and Program Development)

• SAP Project Implementation is one of the components of Project Management and required a great degree of project related Knowledge such as Project Management, Change Management, Risk Analysis and Review Programs.

• Accelerated SAP(ASAP) is not only a SAP implementation solution but it also supports a comprehensive project plan. Like Project Management, ASAP Methodology also integrates several components and comprises of MS Project templates providing complete work breakdown structures and resource assignments.

SAP Overview

Phase of Implementation (ASAP Methodology)

1. Project Preparation2. Business Blueprint3. Realization4. Final Preparation5. Go Live & Support

Project Preparation

• Define your project goals and objectives.• Clarify the scope of your implementation.• Define your project schedule, budget plan, and

implementation sequence.• Establish the project organization and relevant

committees and assign resources

Components discussed during this section:

• Initial Project Planning • Project Procedures • Project Team Members & their Training • Project Kickoff • Technical Requirements • Quality Check

Business Blueprint

• Create a blueprint using the Question & Answer database (Q&Adb)

• Establishes how your business processes and organizational structure are to be represented in the SAP System.

• Refine the original project goals and objectives and Revise the overall project schedule in this phase.

Components discussed during this section:

• Project Management • Organizational Change Management • Training • Develop System Environment • Organizational Structure Definition • Business Process Analysis • Business Process Definition • Quality Check

Realization

• Configure the requirements contained in the Business Blueprint.

• Baseline configuration (major scope) is followed by final configuration (remaining scope).

• Conduct integration tests and drawing up end user documentation.

Components discussed during this section:

• Baseline Configuration and Confirmation • System Management • Final Configuration and Confirmation • Development of external Programs &

Interfaces • Unit Testing & Documentation • Final Integration Test • Business Scenarios & Process Documentation • End User Training & Documentation • Quality Check

Baseline Configuration• The purpose of this phase is to implement all the

business & process requirements based on business blue print.

• Base Line Configuration comprises the priority requirements of the enterprise, ensuring that they can be implemented quickly. This phase can be completed without programming or enhancements to SAP systems.

• Final Configuration is a transportation process that expands that base line solution

Final Preparation

• Complete your preparations including testing, end user training, system management and cutover activities.

• ensure that all the prerequisites for your system to go live have been fulfilled.

Components discussed during this section:

• System Management • Stress & Volume Tests • Cutover Strategies & Plans • End User Training • Quality Check

Go Live & Support

• Move from a pre-production environment to the live system.

• The most important elements include setting up production support, monitoring system transactions and optimizing overall system performance.

• This phase is further divided as: 1) Application Production Support and Maintenance 2) Project Implementation End

Continuous Improvement Phase

• SAP has main five phases described as above this phase can be also helpful to project improvements.

• Towards continuous improvement and to overcome the organizational, business & technology changes the followings are covered under this phase: 1) Post go-Live Support 2) Improve System performance

SAP Modules

• The real-time functionality of the SAP modules allows for better decision making and strategic planning.

• The FI Module incorporates with other SAP Modules such as MM (Materials Management), PP (Production Planning), SD (Sales and Distribution), PM (Plant Maintenance), and PS (Project Systems).

• The FI Module also assimilates with HR (Human Resources) that includes PM (Personnel Management), Time Management, Travel Management, Payroll. Document transactions occurring within the precise modules generate account postings by means of account determination tables.

SAP FI (Financial Accounting) Module:

• It has the competence of meeting all the accounting and financial needs of an organization. Along with other managers, Financial Managers within your business and same module can review the financial position of the company in real time as contrasted to legacy systems which necessitate overnight updates before financial statements frequently and can be generated for management review.

This SAP module delivers regulatory ‘books of record’ including:

• General ledger • Book close • Tax • Accounts receivable • Accounts payable • Asset Management (SAP AM) • Consolidation • Special ledgers

SAP CO (Controlling) Module • It endow with supporting information to

Management for the purpose of planning, reporting, as well as monitoring the operations of their business. Management decision-making can be achieved with the level of information provided by this module.

• The Cost Element Accounting component provides information which includes both the costs and revenue for an organization. These postings are updated automatically from FI to CO.

This SAP Module which allows you to manage your internal cost/management accounting including:

• Cost elements • Cost centres • Profit centres • Internal orders • Activity based costing • Product costing

SAP PS (Project System)Module

This SAP Module is where you can manage your projects, large and small including:

• Make to order • Plant shut downs (as a project) • Third party billing (on the back of a project)

SAP HR(Human Resource)Module

This SAP Module includes:• Employment history • Payroll • Training • Career management • Succession planning

SAP PM(Plant Maintenance)Module

This SAP module is where equipment are maintained(e.g. a machine, an oil rig, an aircraft etc), including:

• Labour • Material • Down time and outages

SAP MM(Material Management)Module

This Module underpins the supply chain including:• Requisitions • Purchase orders • Goods receipts • Accounts payable • Inventory management • BOM’s • Master raw materials, finished goods etc

SAP QM(Quality Management)Module

This module improves quality of goods including:• Planning • Execution • Inspections • Certificates

SAP PP(Production Planning)Module

This module manages production process including:• Capacity planning • Master production scheduling • Material requirements planning • Shop floor

SAP SD(Sales & Distribution)Module

This module manages order to deliver including:• RFQ • Sales orders • Pricing • Picking (and other warehouse processes) • Packing • Shipping

SAP BW(Business(Data)Warehouse)Module

This module includes main function as following:• Data extraction from source systems • Some technical and functional transformation of the

data • Storage of the data in what are called Information

providers • Reporting (which uses Information providers)

Sample Business Blueprint

SAP now are moving away from describing their system as

a set of SAP Modules, and now are using the term ‘solutions’, which is much better, as follows:

• Financials • Human Resources • Customer Relationship Management • Supplier Relationship Management • Product Lifecycle Management • Supply Chain Management • Business Intelligence