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WELCOME TO THE WORLD OF

SAP R/3

R B P A S S O C I AT E S -
T E C H T RA I N I N G W I N G
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ERP
E N T E R P R I S E R E S O U RC E S P L A N N I N G
 Pre-ERP: Resource Planning
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In early 90’s the count, track and movement of material, goods, items,
machineries, between the one shop floor to other, one department to other were
made manually by the way of paper, files, sheets, folders and bins. However as
there is rise in the quantity of production, has become difficult to track and keep the
record of all historical data. Hence organization were started in search of suitable
system to count, record and track the data for present and future usage . This has
paved the way for innovation of integrated tool.

 Resources are tracked in files, bins, folders and stock counts,

 Movement of resources between inter-department were manual,
 Tidies job to extract the data for forecasting and planning
 Creation, Maintenance and Movement of information were slow some time may
take several days.
 Management use to miss the real picture as the report always use to have high
level information
 Evolution of MRP
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 ERP (Enterprise Resource Planning) is the evolution of Manufacturing

Requirements Planning (MRP-II). From business perspective, ERP has
expanded from coordination of manufacturing processes to the integration of
enterprise-wide backend processes. From technological aspect, ERP has
evolved from legacy implementation to more flexible tiered client-server
architecture.

The following table summarizes the evolution of ERP from 1960s to 1990s.
 Timeline System
 1960s Inventory Management & Control
 1970s Material Requirement Planning (MRP)
 1980s Manufacturing Requirements Planning (MRP II)
 1990s Enterprise Resource Planning (ERP)
 What is E-R-P?
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 The integration of all computing within an organization such that:
 all major business processes are encompassed and standardized and
 all data is usable by all functional areas of the business

 Enterprise Resource Planning = ERP

 Integrate many business functions into one seamless application
 Usually are applications systems that run on top of a RDBMS
 Replace 100s of legacy systems in organizations who use an ERP

Enterprise Resource Planning or ERP uses multi-module application

software for improving the performance of the internal business processes.
ERP systems often integrates business activities across functional
departments, from product planning, parts purchasing, inventory control,
product distribution, fulfillment, to order tracking. ERP software systems may
include application modules for supporting marketing, finance, accounting and
human resources.
 Enterprise
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 Where a transaction takes place.

 Where customers get the satisfaction.

 Where the resources are available for the peoples needs.

 Resources
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Money

Men

Machin
es

Materia
 Planning
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Proper Planning and Optimization of the valuable resources

make enterprise run into profits.

Need For ERP:

• Integration of Business Processes
• Online information at the corporate office
• Standardization of systems across Locations
• Reduce cash to cash cycle times
• Faster Consolidation at Head office for statutory reporting
 Characteristics of ERP
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 Link all business processes automatically

 Reduce inter processing time (transactions occur one time at the source)

 Maintain complete audit trail of all transactions

 Utilize one common database

 Perform automatic internal conversions (e.g., foreign currency, taxes,

legal “rules” for payroll, product pricing)

 Improve customer service by putting data at the fingertips of any

employee
 Involve users in the entire functional cycle
 Advantages of ERP
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 Fully Integrated Business Functions or Modules that Support Business

Processes
 Helps develop understanding of business processes by tracking

information thru the process

 Standardized Systems Development Life Cycle

 Move Toward Business Process Re-engineering

 Centers Re-engineering Around the Software

 Directly Links to External Systems

 Disadvantages of ERP
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 Involves Additional cost

 New technology and process may cause slow in deliverables

 Cost of training is too high

 Cope up with technological change creates un-comfort of loyal

 Integrated Business Solution Vendors
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 SAP (Systems, Applications, & Products in Data Processing)

 ECC 6.0, All-in-One, Business One

 Oracle Applications

 Oracle, JD Edwards, PeopleSoft, Siebel, Retek

 Microsoft Business Solutions

 Dynamics: Great Plains, Navision, Axapta, Soloman

 The Sage Group

 Sage Software - Accpac ERP, PeachTree

 SSA Global Technologies

 BAAN
 Many Others
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-: Q & A:-
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Session II
 SAP R/3
What is all
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about

Systems Applications & Products in Data

Processing
Presence Of SAP
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SAP

Baan

People soft

Oracle apps

J D Edwards

Etc
 SAP Customers
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IBM TATA’s
COMPAQ Dr.Reddy’s Labs
Hewlett Packard Ranbaxy

AMD L& T
Reliance Industries
Boeing
Glaxo
Mercedez
Mahindra & Mahindra
Toyota
Hero Honda
Lucent
Growel
Hitachi Colgate Palmolive
Nike
 Consulting Companies
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 Accenture Services
 SAP India
 Price Water House Coopers
 KPMG
 Siemens
 Delloitte
 Cap Gemini
 Intelli Group
 TCS
 IBM
 HCL
 Mahindra Satyam,
 Cognigent
 I-Gate
 Other
 Who is SAP?, Y SAP
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 SAP AG
 Founded in Walldorf, Germany in 1972
 World’s Largest Business Software Company
 World’s Third-largest Independent Software Provider
 Company Statistics
 38,400 employees in more then 50 countries
 1500 Business Partners
 36,200 customers in more then 120 countries
 12 million users
 100,600 installations
 World-wide usage
 Designed to satisfy the information needs of the business (small-local to large
international)
 Multi-lingual
 Multi-currency

 Designed to satisfy the information needs for all industries

 WHAT’ S SAP?
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 SAP is an widely accepted world No1 ERP Software

 SAP, started in 1972 by five former IBM employees in Mannheim, Germany,

 It is the world's largest inter-enterprise software company and the world's Third-
largest independent software supplier, overall.

 The original name for SAP was German: Systeme, Anwendungen, Produkte,
German for "Systems Applications and Products."

 The original SAP idea was to provide customers with the ability to interact with a
common corporate database for a comprehensive range of applications.

 Gradually, the applications have been assembled and today many corporations,
including IBM and Microsoft
 SAP & It’s Characteristics
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 SAP Package is strategically divided into 2 main areas.

- Functional

- Technical.
 People with domain experience can work on functional modules.

 Technical modules are like ABAP/4 & Basis.

 Cross Applications are used for ALE Purpose.

 SAP AREAS
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SAP
Technical Functional TF

In Functional area we have around 64 modules all are

enabled for web reporting via Web Application Server.

SAP Logon Basics

SAP Milestones over 30 years
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-: Q & A:-
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Session III
 The SAP R/3 Architecture
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 SAP R/3 works on Three Tier Architecture

User Terminal Application Server Database Server

Data Creation Managing

Modification User Data Storage
Retrieval Requests
 SAP Architecture
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PCs, Laptops, etc.
Browser Client

Network

Web Server
Internet
Presentation Transaction
Server

Application Application
Servers

Database
Database

11th Feb 2012

3-Tier Client/Server Architecture

Communication

The Presentation Layer

collects user input and
creates process requests.

The Application Layer

uses the application logic of
SAP programs to collect and
process the process requests.

The Database Layer

stores and retrieves all data.

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 The SAP World
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SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials
Mgmt. Controlling
PP AM

R/3
Production Fixed Assets
Planning Mgmt.

QM PS
Quality
Manage-
Client / Server Project
System
ment PM
WF
Plant Main- Workflow
tenance
HR IS
Human Industry
Resources Solutions
 SAP Business Suite
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SD FI
MM SAP PLM
CO
PP AM
SAP R/3 SAP SAP SAP
Client/Server SRM ERP CRM
QM ABAP PS
PM Basis WF
SAP SCM
HR IS

SAP NetWeaver
 SAP Solutions for Companies of All Sizes
Large Medium Company / Small Company /
Company Subsidiary34 Subsidiary

Seamless Communication thanks to Exchange Infrastructure

Same look and feel

SAP ERP SAP All-In-One and SAP Business One

The E-Business Business By Design Installed and
platform – full industry Technically designed running in a day.
functionality for all for smaller companies All necessary
requirements easy to install & maintain functionality
extensive functionality
 SAP R/3 Customer Installations by
Industry
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SAP HIGH TECH &
Others 11.5% ELECTRONICS 11.3%
SAP BANKING 2.0%
SAP MEDIA 2.3% SAP ENGINEERING &
SAP HEALTHCARE 2.3% CONSTRUCTION 10.5%
Metal, Paper & Wood
Products 2.8%
Services 3.1%
SAP OIL & GAS 3.2%
SAP TELECOM-
Worldwide SAP CONSUMER
MUNICATIONS 3.4% PRODUCTS 10.3%

SAP PHARMA -
CEUTICALS 3.4%
SAP PUBLIC SECTOR 3.4%
SAP CHEMICALS 9.5%
SAP UTILITIES 3.9%

SAP AUTOMOTIVE 4.8% SAP RETAIL 6.3%

Consulting & Professional Services 6.0%
Industry Solutions

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 Industry Solutions
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Aerospace and Defense Healthcare
Apparel and Footwear High Tech
Automotive Media
Chemicals Oil&Gas
Consumer Products Pharmaceuticals
 Trade Promotion Management Public Sector
 Key Account Management Real Estate
Distributor Reseller Management Retail
Financial Services  Agency Business
 Banking  Category Management
 Insurances  Store Management
 Collections and Disbursement Service Providers
 Incentives & Commission Management Telco
 Claims Management
 Asset & Liabilities Management
 Financial Service Provider
Global and Local Customers - A Selection
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 SAP - characteristics
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 Highly Integrated solution covering entire business processes

 Technically capable of utilizing the network infrastructure

 Open system to ensure freedom to choose

 Provides multiple ways of configuring business processes

 Solutions in areas where currently no systems

 Workflow enabled business processes

 Enables to exploit the power of Intranet and Internet

 Common SAP objectives
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 Cost Control & increased profitability

 Increased productivity of all resources – man, material & money

 Process Standardization

 Transparency in operations, resulting in better communication

 Shift from post-mortem scenario to predictive scenario

 Results of Integration
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 Focus on Business Processes

 Elimination of Redundant Data (Common Constant Data)
 Easier Corporate Consolidation
 Better Managerial Control
 Elimination of Interfaces
 Faster reaction to changing structures
Success factors for SAP implementation
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 Top Management Commitment & communication down-the-line

 Empowerment

 Change management

 Training

 Compliance to methodology
Implementation Methodology
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 SAP IMPLEMENTATION - PHASES
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The implementation of your SAP System covers the following

phases:
 Project Preparation

In this phase you plan your project and lay the foundations for
successful implementation. It is at this stage that you make the
strategic decisions crucial to your project:
 Define your project goals and objectives
 Clarify the scope of your implementation
 Define your project schedule, budget plan, and implementation
sequence
 Establish the project organization and relevant committees and
assign resources
 SAP IMPLEMENTATION - PHASES
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 Business Blueprint

In this phase you create a blueprint using the

Question & Answer database (Q&Adb), which documents your
enterprise’s requirements and establishes how your business processes
and organizational structure are to be represented in the SAP System.
You also refine the original project goals and objectives and revise the
overall project schedule in this phase.
 Realization

In this phase, you configure the requirements contained in the Business

Blueprint. Baseline configuration (major scope) is followed by final
configuration (remaining scope), which can consist of up to four cycles.
Other key focal areas of this phase are conducting integration tests and
 SAP IMPLEMENTATION - PHASES
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 Final Preparation

In this phase you complete your preparations, including testing, end

user training, system management, and cutover activities. You also
need to resolve all open issues in this phase. At this stage you need
to ensure that all the prerequisites for your system to go live have
been fulfilled.
 Go Live & Support

In this phase you move from a pre-production environment to the

live system. The most important elements include setting up
production support, monitoring system transactions, and optimizing
overall system performance.
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-:Q & A:-