1. Enterprise Systems Architectures EGN Enterprise Systems Configuration (Professional MSEM) Fall, 2011

2. Enterprise Systems Architectures Theories & Concepts EGN Enterprise Systems Configuration (Professional MSEM) 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. Zackman’s Enterprise Framework
Row
Perspective
Constraint
Model 1
Planner
Financial/external
Scope (an executive summary of system scope, cost, and how it would perform) 2
Owner
Usage/policy
Enterprise (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
Builder
Technology
Technology model (adapting information model to the details of programming languages, tools, I/O devices, and others) 5
Subcontractor
Implementation
Out of context models (detailed specifications given to programmers who code modules)

13. Zackman’s Enterprise Framework
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)

14. Zackman’s Enterprise Framework
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 model
Organization chart (org. unit, work product)
Master schedule (business event and bus. cycle)
Business plan (business objective and bus. strategy)
System model
Human interface architecture (role, deliverable)
Processing structure (system event and processing cycle)
Knowledge architecture (criterion, option)
Technology model
Human/technology interface (user, job)
Control structure (execute, component cycle)
Knowledge design (condition and action)
Components
Security architecture (identity, transaction)
Timing definition (interrupt and machine cycle)
Knowledge definition (sub condition, step)

15. SAP Architecture Design EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011

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

17. Data type: Organizational levels
Defines the enterprise structure in terms of legal or business purposes, including legal 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. Data Types: Organizational levels
Storage Locations
Plant
Company Code
Client
BPI Enterprise (700)
Pen Company (C101)
Pen Plant
(P101)
RM (30)
WIP
FG (10)
Pen Company (C102)
Pen Plant (P102)

19. Types of Data: Organizational levels
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
Work Center
Shipping Point

20. SAP Enterprise Structure Example
Financial
Business Area – Bicycles BI##
CC CA##
CC GB##
CC AU##
CC JP##
CC US##
CC DE##
CC: company code. CoA: chart of accounts (country-specific). CA: controlling area. Business Area: by products
CoA US##
CA##
CoA DE##
GB##
AU##
JP##
Chart of Accounts (global) GL##
CA North Am. NA##
CA Europe EU##
CA Asia AS##
Operating Concern (global) GL##
Client GBI

21. SAP Enterprise Structure Example
Procurement
Shipping Point
DL##
MI##
SD##
TO##
HD##
HH##
PE##
RM##
TG##
TG##
TG##
RM##
TG##
TG##
Storage Location
SF##
FG##
FG##
FG##
SF##
FG##
FG##
FG##
MI##
MI##
MI##
FG##
MI##
MI##
MI##
MI##
Central Purchasing Organization (global) GL##
Purchasing Org. US##
CA##
PO DE##
AU##
Purchasing Group North America
N##
PGr Europe
N##
Asia
AS##
CC: company code. CoA: chart of accounts (country-specific). CA: controlling area. Business Area: by products
Dallas
DL##
Miami
MI##
S. Diego
SD##
Toronto
TO##
Heidelb.
HD##
Hamburg
HH##
Perth
PE##
CC US##
CA##
CC DE##
AU##
Client GBI

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

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

24. Key Concepts in SAP Types of Data: Transaction data
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

25. Key Concepts in SAP The Document concept Document types
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

26. Key Concepts in SAP 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 Enterprise Systems Configuration (for Professional MSEM) 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
Company configuration

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
The company to be configured

32. Pen Inc. : The company Products Trading Materials Finished products
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 Customer Name City State Channel
Tanagers
Vermillion
SD , 57069
RE (C & V)
The Rushmore Group
SD, 57069 RE
SAP, America
Newtown Square,
PA, 19073
Promotional Products, Inc
Sacramento
Ca, 95814 WH
Pleasure Boats Buying Group
Miami
FL, 33010

34. Pen Inc. : The company Suppliers Vendor Name City State Zip code
Promotions Ltd _ _ _
Chico CA
95929
Slick Pens _ _ _
Milwaukee WI
53201
Premier Pens _ _ _
Baton Rouge LA
70803
Boxes inc _ _ _
Sioux Falls SD
57101
Tanager
Vermillion
57069

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 Information system requirement
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

37. Exercises: Create company code Create chart of accounts
Assign company code to chart of accounts
Assign company code to fiscal variant
Create Credit control area
Assign company code to credit control area
Assign permitted credit control areas to company code
Verify valuation area
Define plant
Define storage locations (inventory and quality)
Define purchasing organization
Create purchasing group

38. Exercises: 33. Assign plant to company
34. Assign purchasing org. to company code
35. Assign purchasing org. to plant
36. Set up parameter ID
37. Create Account groups
38. Define retained earnings account
40. Assign company code to field status variant
41-57 Create 17 general ledger accounts
58. Run general ledger list of accounts reports
Homework due date: 8/13/2011