SAP-Enterprise ApplicationPresented by: Khushboo Choudhary

ERP� Stands for ENTERPRISE RESOURCE PLANNING.

� An Extension of MRP (Material Requirements Planning) and CIM (Computer Integrated Manufacturing).

It is a company-wide computer software system used to

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� It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores.

� SAP by definition is also name of the ERP software as well as the name of the company.

Typical enterprise business process

� Enterprise software system can be broadly classified into two types:

I. Decentralized

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I. Decentralized systems

II. Centralized systems – also called ERP

Why ERP is required?

� Enterprise-wide systemwhich integrates the businessfunctionsandprocessesof anorganization.

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functionsandprocessesof anorganization.

� Utilizes a Common Information System.

� It helps in effective forecasting, planning and scheduling.� It gives a Competitive Advantage.

ERP CHARACTERSTICS

Integrated System

Real Time

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Best Practice

Process Oriented

Customizing

(Configuration)

SAP� Stands for SYSTEM, APPLICATIONS, AND PRODUCTS

in DATA PROCESSING.

� SAP is the Market Leader in ERP Software Solutions.

� Global Software product engineered on MULTILINGUAL and

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� Global Software product engineered on MULTILINGUAL and MULTINATIONAL platforms.

� An Integrated Enterprise Resource Planner.

� The system comprises of a number of fully integrated modules.

SAP is a Centralized Enterprise Management System.

� Founded in Germany (1972)

� World’s fourth largest software provider

� World’s largest provider

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� World’s largest provider of Integrated Business Solutions software

� Company stock trades on the Frankfurt and New York exchanges

� Name of the company� SAP AG� SAP America

� Name of the software� SAP R/2 – Mainframe version� SAP R/3 – Client/Server version� My SAP ERP

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� My SAP ERP

� The concept of Client/Server version is still very popular despite the growing popularity of other environments and architectures.

Client/server environment

� The Communication and Interchange of data between the requesting and supplying machine is known as the Client/Sever Relationship.

� Enables a company to link it’s business processes in Real-time, Scalable and flexible environment.

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� 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

Major ERP VendorsDifferent ERP Software Solutions Vendors in the Market

are:I. SAP II. RAMCOIII. BAANIV. IBM

Oracle Applications

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V. Oracle ApplicationsVI. MicroSoft DynamicsVII. CAVIII. JDEIX. PeopleSoftX. JD EdwardsXI. SSA Global Technologies

Advantages

� Integration among different functional areas to ensure proper communication, productivity and efficiency.

� Order tracking, from acceptance through fulfillment.

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through fulfillment.� Permits control of business

processes that cross functional boundaries.

� Reduces the risk of loss of sensitive data.

� Provides control over various business process.

Disadvantages

� Customization of the ERP software is limited.

� ERP systems can be very Expensive.

� ERPs are often seen as too rigid and too difficult to adept to the specific workflow and business process of some companies.

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some companies.

� Resistance in sharing sensitive Internal Information between departments.

SAP Business Modules

� Financial Accounting (FI)

� Sales and Distribution (SD)

� Materials Management (MM)

� Warehouse Management (LE – WM)

Production Planning (PP)

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� Production Planning (PP)

� Project System (PS)

� Personnel Development (PA – PD)

� Enterprise Controlling (EC)� Personnel Administration and Payroll Accounting (PA)

SAP technical overview

IN SAP “techno “ speak, the WebAS or Basis system is the middleware or Software that functions as a conversion or translation layer between the technology ad business/application layers of a computing solution and allows the

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computing solution and allows the various SAP applications to run on different hardware and system platforms. Some of these available platforms, as well as their technology and business - enabling layers are displayed.

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SAP WebAS/Basis available platforms

Basis tools

� Remote Functions Calls (RFCs)

� Common Program Interface Communications (CPI – C)

� Electronic Data Interchange (EDI)

� Object Linking and Embedding (OLE)

� Application Link Enabling (ALE)

16 Basis Tools

Overview of mm module

“Material Management is the management of the flow of materials into an organization to the point, where those material are converted into firm’s end products”.

SAP MM Module is one of the most important SAP Modules where MM stands for Materials Management – underpins the supply chain, including

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the supply chain, including

I. Requisitions

II. Purchase orders

III. Good Receipts

IV. Account payable

V. Inventory management

Why need MM..???

� Amount spend on material is higher than other inputs.

� Material offer considerable scope for reducing cost and improving profit.

� Material add value to the product.

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� Material add value to the product.

� Efficiency of any organization depend upon the availability of right material, in right quantity at right time.

� Quality of end product depend on material.

Material Management Component

� Consumption Based Planning (CBP)

� Purchasing

� External Service Management

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� External Service Management

� Inventory Management

� Logistic Invoice Verification

� Vendor Evaluation

MMMaterialsmgmt6

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Source

1 Determine Requirements

Goods receipt andinventory management

PlanRqmts.

InvoicePurchaseorder

Invoice verification

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Purchaseorder

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5

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Order follow-up

Order processing

Vendor selection3

Sourcedetermination

inventory management

Benefits of MM

� Material cost can be lowered down

� Controlling of indirect cost

� Risk of inventory loss minimized

� Reduction in loss of time of direct labor

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� Reduction in loss of time of direct labor

� Control of manufacturing cycle

� Material congestion in storage places avoided

� Improvement in delivery of the product

Process flow

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Process flow in MM

SAP Industry Solution

• Aerospace/Defense

• Automotive

• Banking

• Chemicals

• Consumer Products

• Media• Mill Products• Mining• Oil & Gas• Pharmaceuticals

Public Sector

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• Consumer Products

• Engineering/Construction

• Financial Svc Provider

• Healthcare

• High Tech

• Higher Education/Research

• Public Sector• Retail• Service Providers• Telecommunications• Utilities

…so on …

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Thank you..!!

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