Enterprise Resource Planning Dr. Djamal Ziani

ERP Business Functions And SAP System CHAPTER 2

Outline Overview of ERP business functions Exchange data between business functions Business Process SAP modules

ERP System

Business functions

Marketing and Sales

Supply Chain Management

Accounting and Finance

Human resource

Functional Model: Business Function Flow  Information flow : Down Top communication  Material & Production flow: Horizontal communication Top Management Marketing SalesManufacturingLogisticsFinance & Accounting Information Flow Material & Product Flow

In a process-oriented company, the flow of information and management activity are “horizontal”—across functions

Business Process: Definition A specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs. Davenport, 1993

Business Process vs Function Holistic: Global

Typical business processes Procurement Process Sales Process Production Process Etc…

Procurement Business Process Outline Agreement Demand Purchase Requisition Vendor Purchase Order Goods Receipt & Inventory Mgmt. Accounts Payable Invoice Verification Scheduling Agreement

Production Business Process Goods Issue Shop Floor Goods Receipt Order Settlement Schedule/Release

Sales Process: Trading goods Customer OrderPicking Goods Issue BillingAccounts Receivable Packing

Sales Process: Finished Product Customer Order Availability Check Goods Issue BillingPartial Payment Final Payment

Sales Process: Finished Product (using MRP) Customer Order Availability Check - Insufficient - Independent Demand MRP Run Production Scheduling Purchasing Dependent Demand

SAP Modules

SAP modules FI Financial Accounting: accounts receivable, accounts payable and other sub- ledger accounts. CO Controlling--represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. AM Asset Management: depreciation and investment management. PS Project System-- planning, and monitoring of long-term, highly complex projects. WF Workflow--links the integrated SAP application modules with cross-application technologies, tools and services IS Industry Solutions--combine the SAP application modules and additional industry-specific functionality such as banking, oil and gas, pharmaceuticals, etc. HR Human Resources--is a complete integrated system for supporting the planning and control of personnel activities.

SAP modules PM Plant Maintenance: In a complex manufacturing process maintenance. Equipment must be services and rebuilt. Affect the production plans. MM Materials Management--supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc. QM Quality Management: quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement. PP Production Planning: plan and control the manufacturing activities of a company. includes; bills of material, routings, work centers, operations planning, master production scheduling, material requirements planning, shop floor control, production orders, product costing, etc. SD Sales and Distribution--helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are; pre-sales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.

SAP system Architecture Database and Application Central Systems2-Tier Configuration3-Tier Configuration Presentation Database, Application, Presentation Database Application Presentation Internet Transaction Service/Web Service

Basis System: Three-Tier Computer Hierarchy Input / Output of data to users Access to Dataase: (Read / Write data) Central Database (Storage of all data) Database Application Presentation Processing of data using application logic Presentation of the processed data to the user

What does SAP System has?

What is a Client in SAP?

Common Client Roles

Sample SAP System Landscape Development TestingProduction Databas e Servers Applicatio n Servers Presentation Servers

Object Migration: Correction & Transport Program A Table A Screen A Program A Table A Screen A Program A Table A Screen A Development QA TestingProduction

Object Migration: Correction & Transport Program A Version 1 Program A Version 1 Program A Version 2 Program A Version 2 Program A Version 3 Program A Version 3 Program A Version 1 Program A Version 1 Program A Version 2 Program A Version 2 Program A Version 3 Program A Version 3 Originals DevelopmentQA Testing Corrections and Transport ? ?