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Enterprise Resource Planning Dr. Djamal Ziani
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ERP Business Functions And SAP System CHAPTER 2
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Outline Overview of ERP business functions Exchange data between business functions Business Process SAP modules
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ERP System
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Business functions
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Marketing and Sales
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Supply Chain Management
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Accounting and Finance
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Human resource
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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
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In a process-oriented company, the flow of information and management activity are “horizontal”—across functions
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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
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Business Process vs Function Holistic: Global
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Typical business processes Procurement Process Sales Process Production Process Etc…
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Procurement Business Process Outline Agreement Demand Purchase Requisition Vendor Purchase Order Goods Receipt & Inventory Mgmt. Accounts Payable Invoice Verification Scheduling Agreement
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Production Business Process Goods Issue Shop Floor Goods Receipt Order Settlement Schedule/Release
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Sales Process: Trading goods Customer OrderPicking Goods Issue BillingAccounts Receivable Packing
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Sales Process: Finished Product Customer Order Availability Check Goods Issue BillingPartial Payment Final Payment
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Sales Process: Finished Product (using MRP) Customer Order Availability Check - Insufficient - Independent Demand MRP Run Production Scheduling Purchasing Dependent Demand
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SAP Modules
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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.
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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.
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SAP system Architecture Database and Application Central Systems2-Tier Configuration3-Tier Configuration Presentation Database, Application, Presentation Database Application Presentation Internet Transaction Service/Web Service
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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
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What does SAP System has?
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What is a Client in SAP?
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Common Client Roles
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Sample SAP System Landscape Development TestingProduction Databas e Servers Applicatio n Servers Presentation Servers
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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
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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 ? ?
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