2. What is ERP?
ERP is a high-end sophisticated software solution that
reduces the pressure and workload off the managers and
provides accurate, timely information for taking
appropriate business decisions. Managers with knowledge
of ERP will be able to achieve their targets and goals by
proper implementation of ERP system in their
organization.
In fact managers are expected to translate the business
rules and requirements for mapping them into ERP
software.
Implementation of ERP solutions is one of the largest
drivers of growth in the consultancy business.
4. ERP Helps in
Decision support system (DSS).
Smooth flow of routine process.
Automatic record keeping.
Common inter-department resource pool.
Better planning at all levels.
Data warehousing & various self-service interface for
customers, suppliers & employees.
5. Overall Business Benefits
Information.
Maximizes information throughput.
Provides timely information.
Integrates information throughout supply chain.
Minimizes response time.
Pushes decision making down to lowest levels.
Reduces costs.
Cuts inventory.
Improves operating performance.
6. Department Benefits
o Sales
Increased efficiency.
o Lower
quotes,
responsiveness.
reduced
lead
time,
improved
o Manufacturing.
Concurrent engineering.
o Faster design and production.
o Data Service.
Accurate customer service history and warranty
information.
o Accounts Payable.
Suppliers paid accurately.
7. o Supply Chain Management
Supply Chain Planning, Claim Processing, Commission
calculations, Supplier scheduling, Inspection of goods, order
entry, Inventory.
o Project Manufacturing
Costing, billing, time & expense, activity management.
o Financials
Cash Management, Fixed assets, General ledger,
Accounts Payables, Accounts Receivables.
o Data Warehouse
Self-service interface among Suppliers, Customers,
Employees.
8. Enterprise Architecture - Benefits
Eliminates the duplication, discontinuity and redundancy in data.
Increases the return on investment made on IT implementations.
Delivers quality information designed for the Enterprise as a whole.
Faster and cheaper.
Delivers quality information to produce a quality enterprise.
Reducing required manpower.
Eliminating legacy systems.
Can cause fragmentation.
Foundation of e-Business.
Back-office functions.
Standardization .
Helps obtain and maintain competitive advantage.
Improved interactions with customers and suppliers.
9. Disadvantages
Limited training budget.
Lack of Skills and Experience.
Cost estimate is $ 30,000 to 500,000,000.
Limited technical staff.
Systems difficult to use.
Too rigid system .
Compatibly problem with legacy systems
10. Evolution of ERP
1960’s: Inventory Control Systems
1970’s: MRP: Material Requirement
Planning
1980’s: MRPII: MRP & Distribution
1990’s: MRPII ERP with introduction
of other business functions
CRM’s
Today: Web Enabled ERP – Connecting
ERP Externally
11. What is SAP ???
What is the full form of SAP?
Systems Applications and Products in Data
Processing.
SAP is both the name of the Company as well as
their ERP Product SAP system comprises of a
number of fully integrated modules, which
covers virtually every aspect of the business
Three systems developed : R/1, R/2, R/3
12. History of SAP
Founded in 1972 by Wellenreuther, Hopp, Hector,
Plattner and Tschira
Renamed in 1977
Before 1977 : Systems Analysis and Program Development
(German : Systemanalyse und Programmentwicklung)
SAP is both the name of the Company as well as their ERP Product
SAP system comprises of a number of fully integrated modules,
which covers virtually every aspect of the business
Three systems developed : R/1, R/2, R/3
13. Introduction to SAP
SAP Supports all Kinds of Industries and all
Functions of the Industry
SAP is an Integrated System
This means that all SAP modules are designed to
share information and automatically create
transactions based on various business process.
SAP R/2 is the SAP Mainframe Based Software
Package
SAP R/3 is the SAP Client/ Server – 3 Tier
Architecture Based Software Package
14. SAP is the leader of ERP software vendor.
Enterprise Resource Planning is a back office
application for Enterprise .
21 Industry Vertical Solutions.
80% Fortune 500 Companies Use SAP.
66% Market share in India.
Over 18,500 Customers 76000 installations in 120+
Countries, +2500 installations in India.
Over 12 million users.
15. Evolution of SAP products
mySAP ERP
R/3
R/3
Enterprise
Solutions
mySAP CRM
mySAP SCM
mySAP HR
mySAP PLM
………..
mySAP
Business
Suite
SAP NetWeaver
Web AS
•Easing Upgrade Plans & Providing Transition Options
•Bringing benefits of SAP Netweaver into installed base
•New Customers have more entry options & receive world –class ERP
16. Language
SAP supports multi-national character sets and
languages on the same system, at the same time.
Default languages are English and German.
User
Every SAP user has a user name.
Users of SAP system are client-specific, which means
that having a user identification on one client will
only allow access to that particular client.
17. Password Rules
Letters
Numbers
Easy to remember
3-8 Characters long
No 3 Characters can be the same
Do not start with a ? or an !
Do not use previous 5 passwords
18. Why - SAP R/3 has been
successful
•Multi-Lingual
•Secure
Information
•Integrated
SAP
•Multi-Currency
•Best Business
Practices
•Enterprise-Wide
19. Why - SAP R/3 has been
successful
Real time processing with an integrated suite of client/server
applications.
Comprehensive
Open
Business Process orientation
Fully Integrated business process
Modular Structure
International – yet consistent
Providing maximum flexibility & Scalability
Strong backbone for future technologies.
OSS
24 hr support available.
20. SAP Industry Solution
Aerospace/Defense
Automotive
Banking
Chemicals
Consumer Products
Engineering/Construction
Financial Svc Provider
Healthcare
High Tech
Higher Education/Research
Insurance
Media
Mill Products
Mining
Oil & Gas
Pharmaceuticals
Public Sector
Retail
Service Providers
Telecommunications
Utilities
21. Organizational Structure in
SAP
Production Planning
Financial Accounting
Company
Code
Plant
Controlling
Client
Human Resources
Controlling
Area
Personnel
Area
Sales and Distribution
Sales
Area
Materials Management
Purchasing
Organization
22. SAP AG
Founded in Germany (1972).
World’s fourth largest software provider.
World’s largest provider of Integrated Business
Solutions software.
Company stock trades on the Frankfurt and
New York exchanges.
23. R/2 System Components
RA - Assets Accounting
RF - Financial Accounting
RK - Cost Accounting
RK-P - Projects
RM-INST - Plant Maintenance
RM-MAT - Materials Management
RM-PPS - Production Planning and Control
RM-QSS - Quality Assurance
RP - Human Resources
25. SAP R/3 Basis System
Integrated
solutions
SD
FI
Sales &
Distribution
Financial
Accounting
MM
Open systems
CO
Materials
Mgmt.
Controlling
PP
AA
R/3
Production
Planning
Client / serverQM
architecture Quality
Mgmt.
Asset
Accounting
Client / Server
PS
Designed
for all types
of business
Project
System
PM
WF
Plant
Maintenance
HR
Enterprise data
model
Comprehensive
functionality
Human
Resources
Workflow
IS
Industry
Solutions
Multinational
Euro
Y2K
27. 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.
28. W h a t is a C lie n t?
“ A c lie n t is a n a u to n o m o u s u n it in t h e R /3 S y s t e m w it h
r e g a r d to c o m m e r c ia l la w , o r g a n iz a tio n , a n d d a t a .”
us
er
te r u s e re c o rd s
as
r aut
er M
h o r iz
Us
a tio n
C lie n t
C lie n t
to
Cus
Ap
m
iz in g
t io n
p lic a
c lie n
t-d e p
ende
c u s to
nt
m iz in
g dat
a
tra n s
a c tio
n dat
m ast
a
er da
ta
R
SAP AG
29.
30.
31. SAP R/3 Architecture
3 Tier Client / Server
Architecture
The SAP R/3 architecture is based on a 3-tier
client/server principle
Presentation Server
Application Server
Database Server
Dedicated Servers are linked by Communication
Networks
32. Overview of Presentation &
Database Servers
The Presentation Server
GUI only
At workstation
Very light
Sends requests to application server
Obtains screens from application server and
displays
The Database Server
Interface between application server and RDBMS
Also holds the vendor specific DB driver
35. R/3 Technology
Environment
Hardware
UNIX Systems
Bull
IBM
Digital
SNI
HP
SUN
Operating
systems
AIX
Reliant
Digital UNIX UNIX (SINIX)
HP-UX
SOLARIS
Databases
ADABAS D
DB2 for AIX
INFORMIX-OnLine
ORACLE
Dialog
SAPGUI
Bull/Zenith
Compaq
Data General
...
Digital
NCR
HP (Intel) Sequent
IBM (Intel) SNI
Windows NT
ADABAS D
MS SQL Server
INFORMIX-OnLine
ORACLE
Windows 3.1, Windows 95, Windows NT,
OSF/Motif, OS/2 Presentation Manager (PM),
Macintosh, Java
IBM
AS/400
IBM
S/390
OS/400
OS/390
DB2/400
DB2/390
Windows NT,
Windows 95,
PM, Java
Languages
ABAP/4, C, C++, HTML, Java, ActiveX-Controls
37. Typical Client Server Architectures
Presentation
Central System
Two - tier
Distributed System
Two - tier
Client/Server
Three - tier
Client/Server
Multi-layer
Cooperative
Client/Server
Application
Database
38. R/3 System Configurations
Central System
2-Tier Configuration
SAP
3-Tier Configuration
Web-enabled
Presentation
Presentation
Application
Internet
Transaction
Service/Web
Service
Database,
Application,
Presentation
Database and
Application
Database
In a central R/3 System configuration, one host is responsible for all processing
tasks.
39. R/3 System Configurations
Central Systems
2-Tier Configuration
SAP
3-Tier Configuration
Web-enabled
Presentation
Presentation
Application
Internet
Transaction
Service/Web
Service
Database,
Application,
Presentation
Database and
Application
Database
Two-tier R/3 System configurations are usually implemented using special
presentation servers that are responsible solely for formatting the graphical interface.
Many R/3 System users use PCs with Microsoft Windows -installed, for example, as
presentation servers.
40. R/3 System Configurations
Central Systems
2-Tier Configuration
SAP
3-Tier Configuration
Web-enabled
Presentation
Presentation
Application
Internet
Transaction
Service/Web
Service
Database,
Application,
Presentation
Database and
Application
Database
An alternative two-tier configuration is to install powerful desktop systems and to use
these for presentation and applications (two-tier client/server). This type of configuration
is particularly useful for expensive applications (such as simulations) or for software
developers.
41. R/3 System Configurations
Central Systems
2-Tier Configuration
SAP
3-Tier Configuration
Web-enabled
Presentation
Presentation
Application
Internet
Transaction
Service/Web
Service
Database,
Application,
Presentation
Database and
Application
Database
In a three-tier configuration, you use your own host for the three tiers. Using data from the
database server, several different application servers can operate at the same time. To
ensure that the load on individual servers is as even as possible and to achieve optimal
performance, you can use special application servers for individual application areas such as
sales planning, distribution or financial accounting.
42. R/3 System Configurations
Central Systems
2-Tier Configuration
SAP
3-Tier Configuration
Web-enabled
Presentation
Presentation
Application
Internet
Transaction
Service/Web
Service
Database,
Application,
Presentation
Database and
Application
Database
To web-enable the SAP Applications, a Web Server and an ITS (Internet Transaction Server)
are needed. The web-service and the services for the ITS can run on one server or on two
dedicated servers. The presentation in this configuration is provided by an Internet
Browser. The new SAP Web platform is NetWeaver.
43. Basis System: Three-Tier
Computer HierarchyCentral Database
(Storage of all data)
Access to Database:
(Read / Write data)
Database
Input / Output
of data to users
Application
Presentation
Processing of data
using application logic
Presentation of the
processed data to
the user
45. SAP R/3 Application
Modules
Financial accounting (FI)
Controlling (CO)
Asset management (AM)
Materials management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality management (QM)
Plant maintenance (PM) & Customer Service (CS)
Project system (PS)
Human resources (HR)
Workflow (WF)
46. Module Functionalities
MM
Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification
PP
BOM/Work Center/Routing
MRP
Capacity Evaluations
Production Orders
QM in production
FI
General Ledger
Accounts Payable
Accounts receivable
Cash management
SD
Inquiry processing
Sales Order Processing
Delivery Processing
Billing
CO
Cost Center Accounting
Product Costing
Order Contribution Analysis
47. Module FI – Financial Accounting
• External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
Key elements
• General ledger
• Accounts payable
• Accounts receivable
• Asset Management
• Special Purpose Ledger (FI-SL)
• Legal consolidation
• Accounting Information System
48. Financial Accounting
Foreign exchange
management
Finance information
system
Management
of secureties
and loans
Bank
Cash management
and forecast
Accounts
payable
Bank
accounts
Payables
Accounts
receivable
Receivables
General Ledger
Invoice
verification
Extended General Ledger
Consolidation
Credit
management
49. Module CO – Controlling
• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting
• Product cost Planning
• Product Costing
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling
50. Module SD – Sales and Distributio
• Optimize tasks/activities in
• Sales
• Delivery
• Billing
• Key elements of the SD application module include :
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Warehouse management
• Billing
• Credit Management
• Sales Information system
52. Module MM – Materials
Management
• Supports
• Procurement
• Inventory
• Key elements
• Materials procurement (purchasing)
• Inventory management
• Invoice verification
• Material valuation
• Vendor evaluation
• External Services management
• Purchasing Information System (Purchasing)
• Inventory Controlling Information system
53. Materials Management
Vendor/one-time
customer
Purchasing
info record
Service
specifications
Workflow
Optical archive
Purchase requisition
Material/service
Price comparisons
Price comparison list
Purchasing
PP
Third-party
order
Requirements
Purchase orders
Outline agreements
Scheduling agreements
Service/
Spare Parts
Service /
Inspection
QM spare parts lot
PM
FI
INVENTORY MANAGEMENT
Classification
Conditions
SD
RFQ/Quotation
Texts
Mail
Communication
Documents
MRP
Direct requisition
Release procedures
Vendor evaluation
Material
Special stock
Batch
PURCHASING
Purchasing information system
BASIC DATA
Goods receipt/issue
Transfer posting
Quantities and values
Physical inventory
Storage bins
AM
CO
INVOICE VERIFICATION
Check and post
Price update
PS
G/L accounts
Cash management
and forecast
Fixed assets
Cost center /
Budget
Project
54. Module PP – Production Planning
• To plan and control the manufacturing activities
• Key elements
• Bill of Material (BOM)
• Routings
• Work Centers
• Sales and Operations planning (SOP)
• Master Production Scheduling (MPS) – Capacity Planning
• Materials Requirement Planning (MRP)
• Shop Floor Control (SFC)
• Production orders
• Product costing, activity-based costing
• Work in process
• Production planning for process industries (PP-PI)
• Repetitive Manufacturing
55. Production Planning
PP
SD
Sales
Shipping
Billing
Sales and Operations
Planning
Demand management /
MPS
Material requirements
planning
Purchasing
Warehouse
Invoice
verification
Detailed Schedeling and
Planning
Capacity planning
Shop floor control
Costing
Information system
Customers
SD
MM
SD
Vendors
FI
Financial
accounting
CO
Cost
accounting
HR
Human
resources
PS
SD
Project
Networks
PM
SD
Maintenance
Repairs
Plant
maintenance
QM
SD
Inbound Raw
Material
Finished Goods
56. Module QM – Quality Management
• Supports
• Quality planning
• Inspection
• Control for manufacturing
• Costing
• Procurement
• Key elements
• Quality planning
• Quality during procurement, production, distribution
• Quality Management Information - Quality inspection
• Information System (QMIS)
57. Module PS – Project Systems
• PS – Project Systems
• Support planning, control, & monitoring of long term highly
complex projects with defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
• Network Management
• Activity monitoring, Material
Capacities Scheduling
Planning, Milestones,
• Project Management Information System
58. Module HR – Human
Resource
•HR – Human Resource
•Key elements
•Recruitment
•Payroll & Time management
•Travel Expense accounting & Benefits
•Workforce planning & Training administration
•Organization management
59. Module IS – Industry Solutions
• Combines SAP R/3 application modules to additional industryspecific functionality
• Result of the research by industry Centers expertise (ICOE)
62. Sales Process — Trading Goods
Customer Order
Accounts Receivable
Picking
Packing
Billing
Goods Issue
63. Sales Process Finished Goods
Availability
Check
Goods Issue
Customer Order
Final Payment
Partial Payment
Billing
64. Sales Process Finished Goods
Availability Check
- Insufficient Independent
Demand
Customer Order
Dependent
Demand
MRP Run
Production
Scheduling
Purchasing
66. mySAP
The future of ERP software must include CRM, SCM,
SEM, BW, KM, Web-enable …
mySAP is the future or extended of SAP
ERP software
TEI
ERP
MRP II
MRP
70. SAP NetWeaver
The core capabilities of SAP NetWeaver are the
integration of people, information, and process.
In people integration, it simply means that it enables you
to bring people together and help them work more
efficiently.
Information integration means you can bring together
information from a variety of locations and have it make
sense in the context of what your folks do everyday.
Process integration means coordinating the flow of work
across departments, divisions, and between companies
71. SAP Enterprise Portal: helps create software that brings
together all the data and software tools that a person needs
to do her job in one consistent user interface.
SAP Mobile Infrastructure: universal translator for
mobile devices.
SAP Business Intelligence: provides tool for information
integration, so what your people see is consistent and
accurate.
SAP Master Data Management: is a system for
harmonizing information that is distributed across a wide
variety of applications .
SAP Exchange Infrastructure: Integrates processes and
help applications talk to one another
72. Logging On – SAP Gui
To log on to an R/3 system with the SAP Gui, you need
the proprietary SAP Gui (Graphical User Interface)
software loaded on your system and an internet
connection
Internet Connection
Account on
SAP R/3 System
in Missouri
PC with SAP Gui
73. SAP Gui Configuration
First, you need to tell the SAP Gui which system you
want to log into:
If you don’t have
any systems defined,
click on New Item
74. System Definition
(provided by UCC)
Text description (free)
Address of system (e.g.
sapd.umsystem.edu)
SAP Router usually
not required
System ID
Logical name of system
System Number
Frequently 00, but not always
R/3 System Selected
76. Logging On
Enter Client
Enter User (R/3 Account)
Enter Password (R/3 Account)
Don’t worry about language—
English will default in
77. Logging On
On the first time logging in to
a new account, you will have
to change the password—try
To remember your new
Password WITHOUT WRITING
IT DOWN!
78. SAP vs. MS Office
Database and
Application
Server
Nothing is saved on your PC. Only things saved on our
server in Missouri are saved, and they are saved for good.
79. Benefits of SAP
R/3 Business Application
Modules
Seamless integration across functions and locations
Efficient co-ordination of demand, supply and production
Addresses all businesses environments – MTO, MTS,ATO etc.
Built in best business practices
Covers Multi-Country, Multi-Company, Multi-Plant and MultiLanguage implementation
Country versions to address local requirements – Legal, statutory
etc.
Better control and monitoring of business e.g. authorisations, reports
Centralised control over de-centralised multi-location operations
Handles Mutiple - valuation schemes, accounting system, operating
system, RDBMS
80.
81. Quiz
1. What does SAP stand for?
2. What does ERP stand for?
3. What is the difference between SAP R/2 and SAP
R/3?
4. What business application module is the FI
module?
5. Is the FI module an R/2 or R/3 business application
module?
82. Quiz - Answers
1.
2.
3.
4.
5.
System, Application, and Products in Data
Processing
Enterprise Resource Planning
SAP R/2 is the SAP Mainframe Based Software
Package and SAP R/3 is the SAP Client/ Server – 3
Tier Architecture Based Software Package
Financial Accounting
R/3 – the R/2 Financial Accounting model is RF
