Sap_r3

1

Agenda • • • • •

What is an ERP? What is SAP? What is IDES? SAP Basics & Navigation SAP Exercises With IDES

2

RUTGERS UNIVERSITY & SAP University Alliance Agreement

& 3

What Are The Benefits? • • • • •

Cross-functional teaching tool Access advanced software technology Enhance marketability Pursue research opportunities Broaden outreach

4

What is SAP R/3? • SAP is an ERP (Enterprise Resource Planning) system

5

ERP - What is it? – ERP is a generic term used to describe a comprehensive information system designed to integrate all the business processes found in an enterprise. – Efficiency and productivity are improved through the integration of information and the removal of duplicate information and processes.

6

What is an ERP? • Enterprise-wide system which integrates the business functions and processes of an organization • Integration of business functions into one seamless application • Usually runs on a RDBMS • Replaces Countless Departmental and Workgroup Information Systems 7

What is an ERP? • Links business processes • Maintains audit trail • Utilizes a common information system • Implementation normally involves BPR: Business Process Reengineering • Difficult to Implement Correctly – Railroad Tracks 8

Evolution of ERP • 1960’s: Inventory Control Systems • 1970’s: MRP: Material Requirement Planning • 1980’s: MRPII: MRP & Distribution • 1990’s: MRPII  ERP with introduction of other business functions  CRM’s • Today: Web Enabled ERP – Connecting ERP Externally 9

What is the State of the ERP Market? • Weak Economy = Fewer Implementations • ERP Systems firmly entrenched in infrastructure • Implementing CRM, KM, SCM ERP Applications • Linking ERP’s to Web – Web Services • ASP’s = possible new market segments • Enterprise Application Integration (EAI) Tools 10

What is the State of the ERP Market? • • • • • • • •

Portals Public Sector Growth  laggards Better Implementations Experience Upgrades: ½ of SAP’s customers need to upgrade by 12/03 Roll Up Projects Great Plains  MS Factor? Current Buzz: ERP II Next: Web Services Integration 11

What is SAP R/3? • SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier) • German Based Company • 3rd Largest Independent Software Vendor in the World • SAP: ERP Market Leader • 80% Fortune 500 Companies Use SAP • Over 18,500 Customers in 120+ Countries • Over 12 million users 12

What is SAP R/3? • Client/Server Technology • Highly Customizable • Based on Industry Specific Best Practices • Multi-lingual: International • Based on Open Standards • Integrated Applications System: Modular in design 13

New Dimension Products Business Information Warehouse Strategic Enterprise Management Supply Chain Optimizer

14

15

16

What is MySap.com or the MySAP Business Suite? • • • • •

Hosted E-Business Platform Solution Hosted is + & Link Organization to Supply Chain Link Organization to Consumers Exchange 17

The Players • SAP R/3 - still must maintain mainframe architecture of large R/2 user population. Strong finance and accounting. By far the largest vendor (approx. 30% market share). • Baan - known for manufacturing, distribution, process modeling modules - web and Internet. • PeopleSoft - known for human resource package. • Oracle - simplest product to install and support. Recently advertising flow manufacturing enhancement. • J.D. Edwards - SCM module (SCOREx) WSJ 11/17/98. • Manugistics - Distribution - truck loading and routing focus. • i2 Technologies - Rhythm product - coordination of flow oriented manufacturing. Comprehensive forecasting module. 18

The Promise of Integration - SAP R/3 View of Manufacturing Accounting and Human Resource Management Sales and Distribution Sales planning Profit planning SOP Planned requirements Forecasts Customer order processing Shipping, billing, transport It’s like they programmed an Operations Management textbook!

Production Planning Demand management Master planning Rough-cut capacity planning MRP/Planned orders Order - Creation - Release - Confirmation Shop floor control Capacity leveling Process planning

Materials Management Direct requisition Purchasing Inventory management Goods receipt Material valuation Invoice verification Warehouse management

Quality Management Lot inspection Process charting

Preventive Maintenance Project system

Planned repair Emergency

19

Sales/Distribution and Manufacturing Features • • • • • • •

Real-time Available to Promise & scheduling. Multi-national and multi-site distribution Integration with financial module MRP or Kanban logic Configurable BOM (by order) Engineering change control (date oriented) Backflush for raw and in-process stocking locations • Interactive planning function • Operations splitting and overlapping 20

Implementation Strategy - Accelerated SAP •6-9 month project plan •Self documenting •Expert system •Library of accelerators •Knowledge base •All on a CD!

Figure 3: ASAP Opening Screen

21

Can you point and click your way to successful project implementation?

Figure 4: ASAP Question and Answer Database

22

Logging on to the system and Figure 1: SAP R/3 Opening Screen

The user interface.

Page 14. Figure 5: R/3 Main Menu

23

Navigating around the system.

Up one menu level

Enter Button

Return to prior screen

Cancel

Context sensitive help

Figure 6: R/3 Navigation Buttons

24

Looks much like a regular windows application - in reality it is very different.

Presentation (User Computers) Application Server(s)

Database Server(s)

Figure 11: Three-tier hardware architecture.

Typical installation •1 database server •2 application server •1,000 users Scalability Ability to match the processing requirements to the needs of the organization

Page 20. 25

Computer architecture distributing and scaling.

Computer Center Management System (CCMS)

Implementation Management Guide (IMG)

System Configuration -process/server assignments -job/process priority -user rights/privileges

Application Configuration Tables - 8,000 entries

Dispatcher - dialog and batch processes

User Interface

Applications and Queued Processes (batch processor)

Dialog Manager

Master Data

Update Processor

Transactions

Backup/Archive Processor

Archive Files Backup Files

Figure 12: The R/3 Software Architecture

26

Configuring R/3

To view this click on the following menu items: Tools > Business Engineering > Customizing Press Enter Press Enterprise IMG Figure 13: Implementation Management Guide (IMG) Configuration Menu

Page 24. 27

How R/3 Defines the Enterprise Client

Business Areas Companies Purchasing Organizations Plants Storage Locations

Sales Areas Distribution Channels Sales Organizations Divisions Control Areas Profit and Cost Centers

Figure 15: A Sample of the Organization Elements Used to Organize Information Within R/3

28

Issue - Standard/Benchmark Processes

Figure 16: Flow Process Diagram for Reserving a Conference Room

Page 32.

Tools > Business Engineering > Business Navigator > Process Flow View 29

Figure 18: Room Reservation Process Continued

30

R/3 Functional Modules

Figure 19: Functional Components Included in the Standard Enterprise Model

Tools > Business Engineering > Business Navigator > Process Flow View

31

ERP Benefits - from a Lilly presentation on their SAP R/3 project. •

•

•

Process Improvements – eliminate redundant transactions and multiple reconciliations. – More efficient job rotation process – More efficient staff and succession planning Information Technology – Reduced support costs. – Reduced infrastructure costs. Strategic Direction – Improved resource allocation – More flexible organization. – Better future decision making

•

Related initiatives – Better focus, reduced spending

Project highlights: •45 global sites •implementation by 2002 •single client, servers in Indianapolis •approx. 70 person implementation 32

The mySAP.com E-Business Platform mySAP Workplace mySAP HR mySAP SCM mySAP mySAPFinancials mySAP E-Procurement Industry CRM mySAP SolutionsmySAP PLM BI

SAPMarkets*

33