chapter 01_erp sap overview_erp6
DESCRIPTION
ERP IntrodutionTRANSCRIPT
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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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Enterprise Resource Planning
... synchronization of Company functions...
Manufacturing
Purchase
Sales
Finance
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Enterprise Resource Planning
… and extended to the complete value chain...
Tier II ComponentSupplier
Vehicle OEM
Tier I Component Manufacturer
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Enterprise Resource Planning
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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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
componentsDatabase Layer
components
reside in: reside in: reside in:
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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
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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
S
U
P
P
L
I
E
R
C
U
S
T
O
M
E
R
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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SAP NetWeaver
Existing Systems
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Evolution of SAP ArchitectureSAP ERP 6.0
SAP NetWeaver™ 7.0SAP NetWeaver™ 7.0
Com
posi
te A
pplic
atio
n F
ram
ewor
k
APPLICATION PLATFORM (7.00)
Life Cycle M
gmt
Composite ApplicationsComposite 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 ManagementStrategic Enterprise Management
Self-ServicesSelf-Services
Internet SalesInternet Sales
Switch FrameworkSwitch Framework
Supplier Relationship ManagementSupplier Relationship Management
Enterprise Extensions Industry Extensions
SAP ECC Core (6.0)SAP ECC Core (6.0)
EhP 1 EhP 2
ITS
Integration Broker
J2EE
and more …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 ?