1. Enterprise Systems Architectures EGN 5620 Enterprise Systems Configuration Fall, 2011

2. Enterprise Systems Architectures Theories & Concepts EGN 5620 Enterprise Systems Configuration Fall, 2011 Enterprise Systems Architectures Theories & Concepts EGN 5620 Enterprise Systems Configuration Fall, 2011

3. System architecture, Def. ◦A scheme by which the functional elements of the system are arranged into physical/logical blocks and by which the blocks interact.

4. Three major enterprise (information reference) architectures Generalized enterprise reference architecture (GERA) Purdue enterprise reference architecture (PERA) Enterprise architecture framework ◦By John Zackman

5. GERA - Three scoping/modeling dimensions Life-cycle dimension ◦Provides for the controlled modeling process of enterprise entity according to its life cycle Generic-ity dimension ◦Provides for the controlled particularization (instantiation) process from generic (or partial) to particular. View dimension ◦Provides for the controlled visualization of specific views of the enterprise entity

6. GERA - Enterprise life-cycle phases (1) Identification ◦(A set of activities that) identifies the contents of the enterprise in terms of the nature of its existence, its need and the need for changes. Concept ◦(A set of activities for) developing the concepts of the underlying enterprise, including the definition of its mission, vision, values, strategies, objectives, operational concepts, policies, and business plans. Requirements ◦(A set of activities for) developing descriptions of operational requirements of the enterprise, its relevant processes, and the collection of all their functional, behavioral, information and capacity needs for both production and mgt, whether by humans or machinery.

7. GERA - Enterprise life-cycle phases (2) Design ◦(A set of activities that) support the specification of the enterprise with all of its components that satisfy the enterprise requirements. They include the design of all human tasks, all machine tasks, and operational processes (including identification of necessary information and resources for mfg. information, communication, control and other processing technology) ◦Sub-phases: preliminary (architectural) design and detailed design Implementation ◦(A set of activities that) define all tasks that must be carried out to build or re-build (manifest) the enterprise. This comprises implementation in the broadest sense, covering  Commissioning, purchasing, re-configuring, or developing all software and hardware resources for services, mfg. and control.  Hiring and training personnel, and developing or changing the human organization.  Component testing and validation, system integration, validation, and testing, and releasing into operation

8. GERA - Enterprise life-cycle phases (3) Operation ◦The activities of the enterprise that are needed during its operation for producing the customers products and service which is its special mission, along with all those tasks needed for monitoring, controlling, and evaluating the operation. ◦Thus the resources of the enterprise are managed and controlled so as to carry out the processes necessary for the entity to fulfill its mission ◦Deviations from goals and objectives or any feedback from the environment may lead to requests for change, which includes enterprise re-engineering, continuous improvements of its human and technology resources, its business process, and its organization. Decommission ◦The activities needed for disbanding, re-missioning, re-training, redesign, recycling, preservation, transfer, disassembly, or disposal of all or part of the entity at the end of its useful life in operation.

9. GERA - Enterprise’s entity types (4) Type A – strategic management entity ◦ such as an (enterprise) engineering project ◦Very short life cycle Type B – engineering implementation entity ◦Entity that creates other enterprise entities Type C – enterprise entity ◦Entity that produces customers goods and services Type D – product entity ◦All products and customers services of enterprise type C Type E – methodology entity ◦Entity that establishes tasks to support other entities.

10. GERA - views Entity model contents views ◦Function (model of functions and behaviors of business processes) ◦Information (model) ◦Organization (of responsibilities and authorizations on entities) ◦Resource (model) Entity purpose views ◦(Customer) service and product views (contents relevant to operation and its results ◦Management and control views (contents relevant to mgt.) Entity implementation views ◦Human activities view (of information related to human tasks) ◦Automated activities view (of information related to machine tasks) Entity physical manifestation views ◦Software view (information resources capable of performing a task set) ◦Hardware view (physical resources capable of performing a task set)

11. PERA Layers (life cycle phases) Identification ◦of the CIM business entity Concept layer ◦mission, vision, and values Definition layer ◦functional requirement Specification layers ◦architectural design Detailed design layer Manifestation layer ◦Implementation Operations layer

12. RowPerspective Constraint Model 1 PlannerFinancial/externalScope (an executive summary of system scope, cost, and how it would perform) 2 OwnerUsage/policyEnterprise (business) model (business entities, processes and how they interact) 3 Designer (analyst)Structure/operation System model (data elements and functions that represent business entities and processes) 4 BuilderTechnology Technology model (adapting information model to the details of programming languages, tools, I/O devices, and others) 5 SubcontractorImplementation Out of context models (detailed specifications given to programmers who code modules) Zackman’s Enterprise Framework

13. Data (with entity and relation) Function (with function and parameter) Network (with node and link) Scope (planner)List of things important to the business (entity: class of business thing) List of processes the business performs (function: class of business processes) List of location in which the business operates (node: major business location) Enterprise model (owner) ENT/REL diagram (business entity, business constraint) Process flow diagram (business process and resources) Logistics network (business location, business linkage) System model (designer) Data model (data entity and data relationship) Data flow diagram (application function and user view) Distributed system architecture (I/S function, and line characteristics) Technology model (builder) Data design (segment/row; pointers/key) Structure chart (computer function and screen/device format) System architecture (hardware/system software, line specifications) Components (subcontractor) Data definition description (field and address) Program (language statement and control block) Network architecture (address, protocol) Zackman’s Enterprise Framework

14. People (agent, work)Time (time, cycle)Motivation (ends, means) Scope List of organizations/agents important to the business (major org. unit) List of events significant to the business (major business event) List of business goal/strategy (major bus. goal and critical success factor) Enterprise modelOrganization chart (org. unit, work product) Master schedule (business event and bus. cycle) Business plan (business objective and bus. strategy) System modelHuman interface architecture (role, deliverable) Processing structure (system event and processing cycle) Knowledge architecture (criterion, option) Technology modelHuman/technology interface (user, job) Control structure (execute, component cycle) Knowledge design (condition and action) ComponentsSecurity architecture (identity, transaction) Timing definition (interrupt and machine cycle) Knowledge definition (sub condition, step) Zackman’s Enterprise Framework

15. SAP Architecture Design EGN 5620 Enterprise Systems Configuration Fall, 2011

16. SAP Architecture Design Requirements Required data types: 1.Organizational levels (data, elements) 2.Master data 3.Transaction data

17. Data type: Organizational levels Defines the enterprise structure in terms of legal or business purposes, including l egal entities, plants, storage areas, sales organizations, profit centers:  Client (e.g., 700) ◦ Highest organizational level ◦ Represents the enterprise consisting of many companies  Company Code (e.g., C101) ◦ Identifies legal entities in an enterprise ◦ Central organizational element in financial accounting  Organizational levels in Logistics ◦ Plant (e.g. P101)  Represents factory, warehouse, office, distribution center, etc. ◦ Storage locations (e.g., 10, 20, 30)  A location within a plant where materials are stored

18. Storage Locations Plant Company Code Client BPI Enterprise (700) Pen Company (C101) Pen Plant (P101) RM (30)WIPFG (10) Pen Company (C102) Pen Plant (P102) Data Types: Organizational levels

19.  Organizational levels in Accounting  Client  Company code  Business area  Controlling area  Operating concern  Organizational levels in procurement  Purchasing organization  Purchasing group  Plant  Storage location Organizational levels in fulfillment (sales) Sales organizations Divisions Distribution channel Sales areas Shipping point Plant Storage location Organizational levels in PP Plant Work Center Storage location Shipping Point Types of Data: Organizational levels

20. SAP Enterprise Structure Example Financial Client GBI Operating Concern (global) GL## CA Europe EU## CA North Am. NA## CA Asia AS## Chart of Accounts (global) GL## CoA US## CC US## CA## CC CA## CoA DE## CC DE## GB## CC GB ## AU## CC AU## JP## CC JP ## Business Area – Bicycles BI##

21. Procurement Client GBI CC US## Dallas DL## Miami MI## S. Diego SD## CA## Toronto TO## Shipping Point DL## Storage Location RM## MI##SD##HD##HH## AU## Perth PE## Central Purchasing Organization (global) GL## Purchasing Org. US## CC DE## Heidelb. HD## Hamburg HH## SF## FG## MI## TG## FG## MI## TG## FG## MI## TG## FG## MI## RM## SF## FG## MI## TG## FG## MI## TO## TG## FG## MI## PE## CA## Purchasing Group North America N## PO DE## PGr Europe N## AU## Asia AS## SAP Enterprise Structure Example

22. Sales and Distribution Client GBI Credit Control Area (global) GL## CC US## SO East UE## SO West UW## CC CA## SO East CE## SO West CW## CC DE## SO South DS## SO North DN## CC GB## SO South GS## SO North GN## CC AU## SO South AS## SO North AN## Distribution Channel Wholesale WH Distribution Channel Internet IN Division Bicycles BI Division Accessories AS SAP Enterprise Structure Example

23. Key Concepts in SAP ◦Long term data that represent entities of:  Procurement ◦ Vendor ◦ Material ◦ Info records, source list  Fulfillment ◦ Customer ◦ Material ◦ Conditions (pricing, output)  Production ◦ Bills of material ◦ Work centers ◦ Product routings  Financial accounting ◦ General ledger accounts Types of Data: Master data

24. Key Concepts in SAP ◦Data generated during executing process (steps) combining:  Organizational levels  Master data  Situational data (who, what, when, and where) ◦Example: sales order  Organizational levels: customer, company code, sales area  Master data: customer master, material master  Situational data: date, time, person, quantities Types of Data: Transaction data

25. The Document concept ◦An electronic record of transactions ◦Each transaction creates document(s) Document types ◦Financial accounting documents (FI) ◦Management accounting documents (CO) ◦Material documents (goods movement) ◦Others Key Concepts in SAP

26. The Document Concept: Transaction document Header Line items

27. Key Concepts in SAP The Document Concept: Financial Accounting Document Document number Company code Date (s) Currency Reference Header Account Description Debit / Credit Amount Items (detail)

28. Key Concepts in SAP The Document Concept: Material Document Document number Created by Date Reference Header Quantity Material Location (Plant / Sloc) Other data depending on process (vendor, customer) Items

29. PEN, Inc. System Architecture Design EGN 5620 Enterprise Systems Configuration Fall, 2011 PEN, Inc. System Architecture Design EGN 5620 Enterprise Systems Configuration Fall, 2011

30. Company configuration ◦Pen Inc. _ _ _US manufacturing Company  Vermillion SD, US ◦Facilities:  One manufacturing plant with warehouse in Vermillion (Plant) ◦ Work Center ◦ Storage Location  10 for Trading and finished goods  20 for Quality  30 for Raw materials ◦ Shipping point ◦Sales Organization ◦Purchase Organization

31. The company to be configured Cost Center Standard Hierarchy ADMIN_ _ _ (Cost Center Group) Acct-Finance Administration Purchasing Information Tech Sales _ _ _ (Cost Center Group) Sales Marketing Distribution-Production Cost Center _ _ _ (Cost Center Group) Warehouse Production

32. Pen Inc. : The company Products ◦Trading Materials  BPEN _ _ _ (Barrel Pen)  CPEN _ _ _ (Click Pen)  PPEN _ _ _ (Premium Pen)  Box _ _ (Pen Box) ◦Finished products  EPEN _ _ _ (Executive Pen)  ESET _ _ _ (Executive Set)

33. Pen Inc. : The company Customers

34. Pen Inc. : The company Suppliers

35. Pen Inc.: Key Processes ◦Fulfillment (sell) ◦Procurement (buy) ◦Material Planning (plan) ◦Production (make) ◦Financial Accounting (track) ◦Management Accounting (track) ◦Inventory and Warehouse Management (store) ◦Enterprise Asset Management (maintain) ◦Customer Service (service) ◦HCM (people)

36. Pen Inc. : The company The IS of the Pen, Inc. will ◦integrate and share all services for all business functions in the Vermillion Office ◦Centralize all ERP functions ◦Achieve the primary business objectives:  Reduce Costs  Deliver Best-in-Class Technology to all divisions Information system requirement

37. Exercises: Due date - 9/26/2011 65. Initialize Fiscal Period for Company Code 66. Maintain Plant Parameters for Material Management 67. Activate Materials Requirements Planning 68. Define Attribute for Material Types (Only Watch, and don’t make any changes) 71. Define Posting Periods Variant 72. Open and Close Posting Periods 73. Assign Posting Periods Variant to Company Code

38. Exercises: due date – 9/26/2011 74. Create Tolerance Groups for Account Postings 75. Setup Payment Program 76. Create Tolerance Groups for Accounts Receivable and Accounts Payable 77. Create Financial Accounting (FI) Document Numbers 78. Review Document Types (Only Watch, and don’t make any changes) 79. Post Initial Cash Investment by Owners 80. Post Purchase of Operating Supplies 81. Display and Review General Ledger Account Balances and Individual Line Items (Only Watch, and don’t make any changes)