SAP Overview

ATOZ Soltech, Coimbatore.

Objectives

The participants will be able to:

Recognize the evolution of ERP solutions.

Appraise the concept, benefit and use of ERP solution.

Define the SAP R/3 Overview.

Identify the different SAP R/3 Functional modules/areas.

Distinguish the components of SAP R/3.

Judge the use of ABAP programming language.

Enterprise Resource Planning

ERP Overview

Enterprise Resource Planning

... synchronization of Company functions...

Manufacturing

Purchase

Sales

Finance

Enterprise Resource Planning

and extended to the complete value chain...

Tier II Component

Supplier

Vehicle OEM

Tier I Component

Manufacturer

Enterprise Resource Planning

Administrative

registration

Processes monitoring &

feedback

Decision support and

analysis

... delivering administrative and decision support with...

What is an ERP solution...?

Integrated across the primary and support processes

Marketing Manufacturing

Materials

Distribution

Finance

Engineering Sales

Human Resources

Planning

and

Execution

The ERP application

An integrated suite of business applications, which..

Closely links, monitors, and controls primary enterprise resources like manpower,

machine, material, methods, market and money.

Enables corporates to readily change their processes to adapt to the ever changing

business scenario.

Provides expertise in industry specific business processes.

Entails

Parameterization / Configuration

Designing & Customization

Testing and Implementation

Training

Why clients buy ERP?

Corporate Initiatives

Strategic initiatives

A requisite capability in a competitive global business

Operational initiative

A foundation for performance and cost improvement

via integration

Organizational initiative

To initiate a major organizational change within the company

Technology

IT is making the transition from a supporting operational entity to becoming a strategic

competitive tool.

Because others are buying it !!!

Recent business trends favoring ERP growth

Business Process Reengineering ( BPR )

Most large companies are attempting to cut in-house development costs, improve

customer service, and speed products to market by reorganizing their existing

business processes.

Software Pricing

Licensing and pricing of mainframe based packaged applications are tied to the size of

mainframe system on which the applications run, but now customers are now

demanding user-based licensing options and major corporate applications like SAP

provide this instead of the conventional platform-based pricing technique.

Recent business trends favoring ERP growth

Globalization

As businesses are becoming more global in scope, people are demanding packaged

corporate applications that are available in a variety of languages with support for

multiple currencies.

Integration

As more and more companies are going for BPR, there is increase in demand for

integrated solution e.g.. different applications sharing a common database and thus

enabling data definitions and business rules to be applied across an entire

organization with the facility of doing modifications at one location only.

Business process benefits clients expect from an ERP project

Global process/ Product management

Integrated Supply Chain Management

Leverage purchasing and vendor management

Order cycle time/ customer service improvement

Inventory reductions

Reduced information systems costs on an ongoing basis

Improved business management through worldwide integration and information

Logistics and Distribution Sales & Customer Service

Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer Logistics

Major ERP vendors

SAP R/3

Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier, but are subsets of Oracle now )

Peoplesoft

JD Edwards

Baan

What results can be expected from an ERP culture?

Reduced working capital requirements

Improved customer service

Improved direct labor productivity

Reduced purchase costs

Reduced obsolescence

Reduced overtime

Having the figures to make decisions

Having accountability throughout the organization

Improved quality of life

ERP

SAP R/3 Overview

Systems Applications and Products in Data Processing

SAP AG At a Glance

Founded in Germany in 1972

Market Leader in Industrial Enterprise Application (IEA) About 56% market share in the ERP market.

Employs more than 38,400 people in more than 50 countries.

As the world's third-largest independent software provider, SAP delivers

business solutions to more than 36,200 customers in more than 120 countries

around the world.

Strength lies in its high degree of integration, mainly for large, global corporate

enterprises

Significant presence in Global Fortune 500 companies

SAP R/1 , R/2

The R/1 system Developed for ICI Chemical

Released 1972

Focused on Sales & Distribution and Materials Management

Discontinued after release of R/2

R/2

Basis System

The R/2 system Reorganized as leading mainframe software for large multinational

corporations

No sales effort planned reactive only

4,300 copies worldwide in 1993

Mainframe-based to replace user legacy software;

co-existence and migration strategy underway for R/2 and R/3

Keeping in mind its multinational customers, SAP designs SAP

R/2 to handle different languages and currencies.

Note: "R" stands for real-time data processing.

SAP R/3 : 3 Tier Architecture

Those SAP R/3 software components that

specialize in the management , storage and

retrieval of data form the Database Layer

The Database Layer

Those SAP R/3 software components that

specialize in processing business

applications form the Application Layer.

The Application Layer

Those SAP R/3 software components that

specialize in interacting with end-users

form the Presentation Layer.

The Presentation Layer

SAP R/3 : 3 Tier Architecture

Database servers:

Specialized systems

with fast and large

hard drives.

Application servers:

Specialized systems

multiple CPUs and

vast amounts of RAM.

Presentation servers:

Systems capable of

providing a graphical

interface.

Presentation Layer

components

Application Layer

components

Database Layer

components

reside in: reside in: reside in:

SAP R/3 : 3 Tier Architecture

The Database Layer

components are installed on

high-end database server.

The Application Layer

components are installed

across one or more high-

end servers.

Presentation Layer components are installed across many PCs

SAP R/3 Overview

Sales & Distribution

SD

MM

PP

QM

PM

HR

FI

CO

TR

PS

WF

IS

Materials Mgmt.

Product Planning

Quality Mgmt.

Plant Mainte- nance

Human Resources

Financial Accounting

Controlling

Treasury

Project System

Workflow

Industry Solutions

Client/Server ABAP/4

R/3

SAP R/3 Overview

R/3 Client / Server

ABAP/4

FI

CO

AM

PS

WF

IS

MM

HR

SD

PP

QM

PM

Integration PP

MM

FI CO

SD

FI

Which modules are involved?

Planned Requirement

MRP

Requirement

on component

level

Purchase Order

Goods Receipt

Invoice Verification

Accounts Payable

Planned Order

Production Order

Production completed

Order Settlement

Customer Order

Shipping

Invoicing

Account Receivable

Integration

S

U

P

P

L

I

E

R

C

U

S

T

O

M

E

R

S A P R / 3

Procurement Production Distribution

Finance and Accounting

MM PP SD

FI CO

All business processes throughout the supply chain are executed in

one system sharing all information

Workflow

Mapping of business processes

Proven approach

Reduced costs

Ensured quality and know-how transfer

Efficient use of resources

Reusable for subsequent implementation phases

Accelerated SAP - SAP Implementation Methodology

mySAP Technology

SAP NetWeaver

Existing Systems

SAP R/3 : Components

ABAP

Programs

Configuration

Organization Structure

Key Data Elements

Functionality Configurations

Application Master Data

Transaction Data

What is Customization ?

Customization

The adaptation of application software to customer-specific needs is

accomplished in two ways :

Coding

Programming customer-specific code that replaces or complements

components of the application

Configuration

Rendering the application appropriate to a specific customer by specifying

data on which the application operates

ABAP Programming

SAP R/3 applications are written in the ABAP (Advanced Business

Application Programming) programming language, and run within the

application layer of the R/3 System.

ABAP programs communicate with the database management system of the

central relational database (RDBMS), and with the graphical user interface

(SAP GUI) at presentation level.

SAP R/3 scope

Why do we need ABAP Development ?

SAP Solution

SAP R/3 scope

Specific company

requirements

SAP Solution

SAP R/3 scope

Specific company

requirements

Non SAP

applications

New Functionality

Development

Summary

Materials Requirement Planning (MRP-I) began as a technique for developing enterprise-wide business solutions by providing automated tools for forecasting demands and planning according to the forecast.

ERP is an integrated suite of Applications to meet corporate needs.

Some major ERP vendors are : SAP R/3, Oracle, Baan

SAP AG was founded in Germany in 1972 and it is a Market Leader in Industrial Enterprise Application (IEA).

SAP NetWeaver is a vision, or paradigm, of total integration of :

People

Information

Business Processes

Applications

SAP has a 3 tier architecture comprising of the Presentation layer, Application layer and the Database layer.

The SAP solution is divided in different areas or Functional Modules like SD, MM, PP, QM, PM, FI, CO etc. which are reorganized under services in mySAP Business Suite.

R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System.

Questions

What is MRP ?

What is ERP ?

When was SAP AG founded ?

What are the 3 layers of the SAP R/3 ?

What is SAP Netweaver ?

What are the different functional modules of SAP ?

What programming language is used for SAP applications ?

Why do we need ABAP developments ?

Thank You