Chapter 01 erp sap overview erp6

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ERP / SAP Overview | Dec-2008 © 2005 IBM Corporation

ERP / SAP Overview

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© 2005 IBM Corporation2 Dec-2008ERP / SAP Overview |

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. Evolution of SAP Architecture to ERP6 Judge the use of ABAP programming language.

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Enterprise Resource Planning

ERP Overview

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... synchronization of Company functions...

Manufacturing

Purchase

Sales

Finance

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… and extended to the complete value chain...

Tier II ComponentSupplier

Vehicle OEM

Tier I Component Manufacturer

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Administrative registration

Processes monitoring & feedback

Decision support and analysis

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

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What is an ERP solution...?

…Integrated across the primary and support processes

MarketingManufacturing

Materials

Distribution

Finance

Engineering Sales

Human Resources

Planning and

Execution

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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

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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 !!!

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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.

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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.

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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

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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

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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

ERPERP

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SAP R/3 Overview

Systems Applications and Products in Data Processing

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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

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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/2Basis 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.

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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

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Database servers:Specialized systems with fast and large hard drives.

Application servers:Specialized systemsmultiple CPUs andvast amounts of RAM.

Presentation servers:Systems capable ofproviding a graphicalinterface.

Presentation Layer components

Application Layer components

Database Layer components

reside in: reside in: reside in:

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The Database Layercomponents are installed onhigh-end database server.

The Application Layercomponents are installedacross one or more high-end servers.

Presentation Layer components are installed across many PCs

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SAP R/3 Overview

Sales &Distribution

SD

MM

PP

QM

PM

HR

FI

CO

TR

PS

WF

IS

MaterialsMgmt.

ProductPlanning

QualityMgmt.

Plant Mainte-nance

HumanResources

FinancialAccounting

Controlling

Treasury

ProjectSystem

Workflow

IndustrySolutions

Client/ServerABAP/4

R/3

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IntegrationPP

MM

FICO

SD

FI

Which modules are involved?

PlannedRequirement

MRP

Requirement on component level

PurchaseOrder

GoodsReceipt

InvoiceVerification

AccountsPayable

PlannedOrder

ProductionOrder

Productioncompleted

OrderSettlement

CustomerOrder

Shipping

Invoicing

AccountReceivable

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Integration

SUPPLIER

CUSTOMER

S A P R / 3S A P R / 3

Procurement Production Distribution

Finance and Accounting

MMMM PPPP SDSD

FIFI COCO

All business processes throughout the supply chain are executed in one system sharing all information

Workflow

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mySAP Technology

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SAP NetWeaver

Existing Systems

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Evolution of SAP ArchitectureSAP ERP 6.0

SAP NetWeaver™ 7.0

Com

posi

te A

pplic

atio

n Fr

amew

ork

APPLICATION PLATFORM (7.00)

Life Cycle M

gmt

Composite Applications

PEOPLE INTEGRATIONMulti Channel Access

Portal Collaboration

INFORMATION INTEGRATION

Master Data Mgmt

Bus. Intelligence Knowledge Mgmt

PROCESS INTEGRATIONBusiness

Process Mgmt

ABAP

DB and OS Abstraction

Strategic Enterprise Management

Self-ServicesInternet Sales

Switch FrameworkSwitch Framework

Supplier Relationship Management

Enterprise Extensions Industry Extensions

SAP ECC Core (6.0)

EhP 1 EhP 2

ITS

Integration Broker

J2EE

and more …

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Enhancement Packages

SAP NetWeaver

SAP ERP 6.0

Enhancement Packages

What Are Enhancement Packages? Optionally installed and activated software innovations for SAP ERP 6.0

Software innovations include; UI simplifications, functional enhancements, industry specific capabilities and enterprise services

Cumulative in nature; current enhancement packages contain all contents of earlier packages

Enhancement packages are not support packages

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Improved Software LifecycleInstallation of new functionality separated from activation via Switch Framework

Content of enhancement packages• From a functional view each SAP enhancement package contains several

“Business Functions”.• From a technical view each SAP enhancement package contains new

versions of existing software components, grouped by a “technical usage”.

Selective Installation• Install the parts that are required for the selected Business Function. If installed:

• No UI or process change until a business function is activated via Switch Framework• Less Adjustment effort due to selective update of software components• No implications on the underlying NetWeaver platform, in addition enhancement

packages contain most current Support Package Stack

Selective Activation• Activate the business functions you need. If activated:

• End-user training is limited to the activated business function(s) • Testing is simplified with templates, provided for every business function

Support Packages

EnhancementPackages

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SAP R/3 : Components

ABAPPrograms

Configuration

Organization Structure

Key Data Elements

Functionality Configurations

ApplicationMaster Data

Transaction Data

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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

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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.

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SAP R/3 scope

Why do we need ABAP Development ?

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SAP Solution

SAP R/3 scope

Specific company requirements

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SAP Solution

SAP R/3 scope

Specific company requirements

Non SAPapplications

New FunctionalityDevelopment

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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.

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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 ?

Chapter 01 erp sap overview erp6

Software

Transcript of Chapter 01 erp sap overview erp6