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									ERP Overview

Enterprise Resource Planning

Enterprise Resource Planning
... synchronization of Company functions...

Purchase

Manufacturing

Finance

Sales

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Enterprise Resource Planning
… and extended to the complete value chain...
Tier I Component Manufacturer

Vehicle OEM

Tier II Component Supplier

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Enterprise Resource Planning
... delivering administrative and decision support with...

Decision support and analysis

Processes monitoring & feedback

Administrative registration

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What is an ERP solution...?
…Integrated across the primary and support processes
Distribution Manufacturing Marketing

Materials

Planning and Execution

Finance

Engineering

Sales Human Resources

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The ERP application
• An integrated suite of business applications, which..
– Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money. – Enables corporates to readily change their processes to adapt to the ever changing business scenario. – Provides expertise in industry specific business processes.

• Entails
– – – – Parameterization / Configuration Designing & Customization Testing and Implementation Training

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Why clients buy ERP?
• Corporate Initiatives
– Strategic initiatives
• A requisite capability in a competitive global business

– Operational initiative
• A foundation for performance and cost improvement via integration

– Organizational initiative
• To initiate a major organizational change within the company

• Technology
– IT is making the transition from a supporting operational entity to becoming a strategic competitive tool.

• Because others are buying it !!!

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• • • • • • •

Business process benefits clients expect from an ERP project Global process/ Product management
Integrated Supply Chain Management Leverage purchasing and vendor management Order cycle time/ customer service improvement Inventory reductions Reduced information systems costs on an ongoing basis Improved business management through worldwide integration and information
Vendors Inbound Logistics Manufacturing Transportation Distribution Delivery Customer Consumer

Logistics and Distribution

Sales & Customer Service

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Major ERP vendors
 SAP R/3

 Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier,
but are subsets of Oracle now )  Peoplesoft  JD Edwards

 Baan

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What results can be expected from an “ERP culture”?  Reduced working capital requirements
        Improved customer service Improved direct labor productivity Reduced purchase costs Reduced obsolescence Reduced overtime Having the figures to make decisions Having accountability throughout the organization Improved quality of life

ERP

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SAP R/3 Overview
 Systems Applications & Products

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SAP AG – At a Glance
 Founded in Germany in 1972

 Market Leader in Industrial Enterprise Application (IEA)
 About 56% market share in the ERP market

 Worldwide presence in over 50 countries
 18,000+ employees  Trained consultants doubled since 1996 (40,000)

 About 20,000 companies in 120 countries
 Around 64,500 installations of SAP

 Strength lies in its high degree of integration, mainly for large, global corporate enterprises  Significant presence in Global Fortune 500 companies

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SAP R/1 , R/2
 The R/1 system
    Developed for ICI Chemical Released 1972 Focused on Sales & Distribution and Materials Management Discontinued after release of R/2

 The R/2 system
R/2 Basis System

 Reorganized as leading mainframe software for large multinational corporations  No sales effort planned – reactive only  4,300 copies worldwide in 1993  Mainframe-based to replace user legacy software; co-existence and migration strategy underway for R/2 and R/3

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SAP R/3 : 3 Tier Architecture
The Presentation Layer Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer.

The Application Layer
Those SAP R/3 software components that specialize in processing business applications form the Application Layer.

The Database Layer Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer
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SAP R/3 : 3 Tier Architecture
Presentation Layer components reside in: Application Layer components Database Layer components

reside in:

reside in:

Presentation servers:

Application servers:

Database servers:

Systems capable of providing a graphical interface.
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Specialized systems multiple CPUs and vast amounts of RAM.

Specialized systems with fast and large hard drives.
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SAP R/3 : 3 Tier Architecture
Presentation Layer components are installed across many PCs

The Application Layer components are installed across one or more highend servers.

The Database Layer components are installed on
high-end database server.
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Integration
All business processes throughout the supply chain are executed in one system sharing all information

S

SAP WorkflowR

/3

C U S

U P P L I E R

Procurement MM

Production PP

Distribution SD

T O M

Finance and Accounting FI CO

E
R

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PP Overview

SAP R/3

PP

•Production Planning . .

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Production Planning Cycle PP
Sales and Operations Planning Master Data Master Production Scheduling

Sales & Distribution

Demand Management

Material Master Bill of Materials Work Centers Routings PRT

Materials Management

MRP

Capacity Planning

MRP List

Plant Maintenance

Costing

Production Order Cycle or Purchase Order Cycle

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Organizational Structure in SAP R/3
Production Planning Financial Accounting Plant Company Code

Controlling

Client

Human Resources

Controlling Area Sales and Distribution

Personnel Area Materials Management

Sales Area

Purchasing Organization
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BAAN ERP MODULE

THINK SOLUTION ACCELERATORS PROCESS

BUILD DOMAIN TOOLS

OPERATE

CONSULTING

CUSTOMIZATION

SUPPORT • Roll-out support • Enhancements to Customizations • Product support • System Administration • System/Application • Tuning and patching SPECIAL OFFERINGS • Center of Excellence • Rollout Assessment • Functional and Regression Testing

• ERP Assessment and Health-check • Product Selection • System Performance Tuning • Upgrade Assessment

• Requirement Study • Design & Development • Integration • Integrate Legacy systems to OA • Develop Custom APIs

IMPLEMENTATION • Business process study • Business process Mapping • Gap Analysis • Configuration • Go-Live Support

UPGRADE • Upgrade to 11i • Maintenance upgrade

Process Chain: Sales Distribution
Inbound Logistics from Materials Management
Sales/Distribution Chain Sales Order & Distribution Process
Receive Payment
FI

Outbound Logistics to Customer
Support Customer Sales (Customer Info Analysis) - Optional Process Customer Inquires - Optional -

Create Invoice
FI/CO/PA
- Create pick list - Create transportation work list - Create loading work list

Issue Goods (Ship Product)
FI MM

(Documents)
- Check credit -

Create Delivery Note
Create Sales Order
FI/CO/PA MM PP ERP / SAP Overview | 1.01

Check product availability - Determine pricing - Estimate delivery schedule - Determine conditions of sale (Activities) 22

Provide Customer Quotations - Optional Support Customer Agreements - Optional March-2005

Implemented Modules Of Baan ERP
CRM HRMS • Core-HR • Payroll • Self-Service • Advanced Benefits • OTL • Ilearning (OTA) • Irecruitment • HR Intelligence PROJECTS • Daily business intelligence for projects • Billing • Collaboration • Contracts • Costing • Portfolio Analysis • Time and Labour • Project Resource Management • Oracle Marketing • Oracle Sales • Oracle Services • Oracle Partner Relationship Management • Analytics

FINANCIALS • General ledger • Assets • Cash management • Payables / receivables • Financial analyzer • Enterprise planning & budgeting

MANUFACTURING

SCM

• Inventory • Bill of materials • Work in progress • Engineering • Mrp • Cost

• Procurement • Manufacturing • Order management • Product lifecycle management • Supply Chain Execution & Planning • Logistics

A WATERFALL & ITERATIVE APPROACH OF JD EDWARDS

Business Objectives

Reconfirm and Ensure
Business Processes

Define

Refine
Information Needs

Require

Provide
Information Architecture

Define

Support

Implemented By

Information Technology

MM Overview (Contd.)
Material requirement planning

MM

External procurement Purchasing

Internal procurement Production

Invoice verification

Goods receipt

Warehouse management

Inventory management
Goods issue Transfer posting

Master data Material Batch Vendor Customer G/L Storage bins

Internal and external accounting
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Sales and distribution
ERP / SAP Overview | 1.01 March-2005

PEOPLESOFT ERP ARCHITECTURE

Analytics

Financials

Human Capital Management

Procurement and Logistics Execution

Production

Sales & Service

Corporate & Support Functions

SAP NetWeaver

Strategic Enterprise Management

Financial Supply Chain Management

Procurement Talent management

Production Planning

Sales Order Management

Real Estate Management

People Integration

Supplier Collaboration Financial Analytics Financial Accounting Workforce Process Management Operations Analytics Management Accounting Inventory & Warehouse Management Enterprise Asset Management Manufacturing Execution

Aftermarket Sales & Service

Product Development Information Integration

Project Portfolio Management Professional Service Delivery Travel Management

Outbound & Inbound Logistics Workforce Deployment Transportation

Process Integration

Foreign Trade Environment, Health & Safety Life-Cycle Data Management Application Platform

Workforce Analytics

Corporate Governance

Incentive & Commission Management

Quality Management


								
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