A Typical I/T Story
PurchasingPurchasing
A/RA/R
InventoryInventory
General LedgerGeneral Ledger
SalesSales
A/PA/P
1,000 island solution1,000 island solutionProductionPlanning
Shop Floor execution
EngineeringDesign
Controlling
Mfg.Engineering
Results of Isolation
Focus on Functions
Applications developed over time in response to differing corporate stimuli
Interfaced Systems - (Reconciliation)
Hardware Dependent I/T Systems
Inconsistent Redundant Data
Consolidation & Managerial Control Difficult
Process Productivity Monitoring Difficult
Reaction to change slow
5/7/2011
MRP-I(Materials
Requirement Planning)
2 D Drafting
Design & Planning Batch Processing 3GL
MRP-II(Manufacturing Resource Planning)
CAD Modeling Analysis, CAM (NC Support)
CAAPBatch Processing +
Online System 4 GL
ERP(Enterprise Resource Planning)
CAD/CAM/CAE Modeling, Drafting,
Analysis CAM, CAPP
Integrated Solution Client - Server
(LANs)
SRM (Stake Holders’ Resource Management) (Supply Chain Management + Distribution Resource Management +
Inter-corporate Networking, Data Mining etc)
KBE + Concurrent Engg, Digital, Prototyping
P
D
M
Integrated Solutions on
networks, Internet/Intranet
, Java
Evolution of IT in Manufacturing
Point of Sale
03
Graphical UserGraphical UserInterfaceInterface
OpenSystem
EnterpriseData Model
Integrated Integrated SolutionSolution
Client/ServerClient/ServerArchitectureArchitecture
MultinationalMultinationalUseUse
ComprehensiveComprehensiveFunctionalityFunctionality
R/3R/3Client / ServerClient / Server
FIFIFinancialFinancial
AcctgAcctg..
COCOControllingControlling
AMAMAssetAssetMgmtMgmt
PSPSProjectProjectSystemSystem
WFWFWorkflowWorkflow
MMMMMaterials Materials
MgmtMgmt
HRHRHumanHuman
ResourcesResources
SDSDSalesSales
PPPPProductionProductionPlanningPlanning
QMQMQuality Quality MgmtMgmt PMPM
PlantPlantMaintMaint..
ISISIndustryIndustry
SolutionsSolutionsIndustryIndustry
SolutionsSolutions//ICOEICOE’’ss ISIS
BankingBanking
ISISHospitalHospital
ISISPublishingPublishing
ISISOilOil
ElectronicsElectronics
CPGCPGProcessProcessIndustryIndustry
UtilitiesUtilities
Business Engineering
SAP -- The Overall Picture
R/3 Integration
ProductionProcurement Distribution Sales Controlling Accounting Treasury
Make or Buy
AvailabilityCheck
... Cross Country ... Cross Department ... Cross Platform
CreditLimit Check
ForexMatching
CurrencyRisk
Orderreceipt
Financingdecision
Deliverydecision
ProfitabilityDecision
Postingorder
receipt
ProfitabilityAnalysis
Integration of previously off-line functions into the operational flow is a key enabler for competitive advantageIntegration of previously off-line functions into the operational flow is a key enabler for competitive advantage
Results of Integration
Focus on Business Processes
Elimination of Redundant Data (Common Constant Data)
Easier Corporate Consolidation
Better Managerial Control
Elimination of Interfaces
Faster reaction to changing structuresOrganization/Customers/Competitors
Integration is the Key
F I N A N C I A L A C C O U N T I N G
Sales and Distribution Processing
Salesactivity
S A
L E
S I
N F
O R
M A
T I
O N
S Y
S T
E M M
A T E R
I A L S M
A N
A G
E M E N
T
Sales Support
Sales
Shipping
Billing
Subsequentdelivery free
of charge
Inquiry
Quotation Contract
Delivery free ofcharge
Salesorder Returns Scheduling
agreementUSD
Delivery
InvoiceDebit memo Credit memo
Materials Management
Material Special stockBatch
Vendor/one-timecustomer
Purchasinginfo record
Servicespecifications
Workflow
Optical archive
TextsMailCommunication
Classification
Documents
Conditions
BASIC DATABASIC DATA
Purc
hasi
ng in
form
atio
n sy
stem
Vend
or e
valu
atio
n
Purchase requisitionPURCHASINGPURCHASING
MRPDirect requisitionRelease procedures
RFQ/QuotationMaterial/servicePrice comparisonsPrice comparison list
PurchasingPurchase ordersOutline agreementsScheduling agreements
Goods receipt/issueTransfer postingQuantities and valuesPhysical inventoryStorage bins
Check and postPrice update
INVENTORY MANAGEMENTINVENTORY MANAGEMENT
INVOICE VERIFICATIONINVOICE VERIFICATION
SDSD
PPPP
PMPM
QMQM
FIFI
AMAM
COCO
PSPS
Third-partyorder
Requirements
Service /spare parts
Inspection lot
G/L accountsCash managementand forecast
Fixed assets
Cost center /Budget
Project
Production Planning
FIFI COCO AMAM HRHRCostCostaccountingaccounting
FinancialFinancialaccountingaccounting
AssetsAssetsmanagementmanagement
HumanHumanresourcesresources
ProjectProjectNetworksNetworks
MaintenanceMaintenanceRepairsRepairsPlant Plant maintenancemaintenance
MaintenanceMaintenanceRepairsRepairsPlant Plant maintenancemaintenance
Sales and operations Sales and operations planningplanningDemand management /Demand management /MPSMPSMaterial requirements Material requirements planningplanning
Capacity planningCapacity planning
Shop floor controlShop floor control
CostingCosting
Information systemInformation system
PurchasingPurchasingWarehouseWarehouseInvoice Invoice verificationverification
SalesSalesShippingShippingBillingBilling
CustomersCustomers
VendorsVendors
SDSDPPPP
SDSDSDSD
SDSDMMMM SDSDQMQM
SDSDPMPM
SDSDPSPS
Quality ManagementPPPPMMMM
PurchasingPurchasing RequisitionRequisition
Inventory mgmt
Goods receiptStock transferGoods issue
Inventory mgmt
Goods receiptStock transferGoods issue
ShippingBilling
ShippingBilling
SDSD
Invoiceverification
Invoiceverification
WarehousemanagementWarehouse
management
Inspection lotInspection lot
QMQM Inspection lotInspection lot
Print insp. instructionPrint insp. instruction
Results recordingResults recording
Usage decisionUsage decision
Basic dataBasic dataBasic data
Test equipmentmanagement
Test equipmentmanagement
PMPM
Productionplanning
Productionplanning
Reqt planningR-cut capacity
planning
Reqt planningR-cut capacity
planning
PlannedOrders
PlannedOrdersOpeningperiod
Openingperiod
Order:- Creation- Release- Confirmation
Order:- Creation- Release- Confirmation
Shop floorcontrolCapacityleveling
Shop floorcontrolCapacityleveling
CAMCAM
MaterialsMaterials
VendorsVendors
RoutingsRoutings
DocumentsDocuments
Inspection plan
Characteristics
Insp. methods
Insp. catalogs
Test equipment
Plant Maintenance
Assemblies
Functionallocations
Equipment
Technical Objects
Maintenance History + AnalysisCorrective and PreventiveMaintenance Tasks
unplanned tasksunplanned tasks
Task processingTask processing
CompletionCompletion
planned tasksplanned tasks
Workcenter/Capacity
Planners
Resources
MaterialTools/Machines
- Usage history- Movement history- Event history- Cost history- MTTR / MTBR- Failure and downtime history
ConsolidationConsolidation
Extended General LedgerExtended General Ledger
PayablesPayablesReceivablesReceivables
BankBankaccountsaccounts
General LedgerGeneral Ledger
Cash managementCash managementand forecastand forecast
Foreign exchangeForeign exchangemanagementmanagement
ManagementManagementofof securetiessecuretiesand loansand loans
Finance informationFinance informationsystemsystem
BankBank
InvoiceInvoiceverificationverification
AccountsAccountspayablepayable
CreditCreditmanagementmanagement
AccountsAccountsreceivablereceivable
Financial AccountingFinancial Accounting
AGREEMENT
SHOP FLOOR
CONTRACT
QTN
MRP
BOM
WORKCENTERS
GENERALLEDGER
SALESPLANNING
DEMANDMGMT
ROUTINGS
PRODUCTCOST
PROFITABILITYANALYSIS
SHIPPING
INVVERIF
STOCKS
GOODSISSUE
FINALINSP.
STOCKS
AV. CHK
CRMGMT
GOODSRECEIPT
PL ANTMAINT.
ASSETMGMT
CASHFLOW
COSTCENTERS
PAYROLL
A R
BILLING
QTN
A P
FORECASTING
REQ P O
MANUF
SALESORDER
WHAT TO DOHOW TO DO
WHEN TO DOCAPACITY
MASTER PLANSCHEDULE
GEN
ERA
L L E
DG
E R
MMFICOCMAMSDPPPMHR
SAP R/3 TYPICAL BUSINESS BLUEPRINT
VENDOR
CUSTOMER
BANK
BANK
SAP Basis
SAP Application ModulesSAP Application ModulesSAP Application Modules
R/3 Data RepositoryR/3 Data RepositoryR/3 Data Repository
DatabaseDatabaseDatabase
UserInterface
UserUserInterfaceInterface
Communications
CommunCommunicationsications
Enterprise NetworkEnterprise Network
Operating SystemOperating System
Hardware Platform and EnvironmentHardware Platform and Environment
PlatformPlatformIndependentIndependent
PlatformPlatformDependentDependent
(Basis)(Basis)
R/3 Technology Environment
DB2/390DB2/390ADABAS DADABAS DDB2 for AIXDB2 for AIX
INFORMIXINFORMIX--OnLineOnLineORACLEORACLE
Windows 3.1, Windows 95, Windows NT,Windows 3.1, Windows 95, Windows NT,OSF/Motif, OS/2 Presentation Manager (PM),OSF/Motif, OS/2 Presentation Manager (PM),
Macintosh, JavaMacintosh, Java
ADABAS DADABAS DMS SQL ServerMS SQL Server
INFORMIXINFORMIX--OnLineOnLineORACLEORACLE
ABAP/4, C, C++, HTML, Java, ActiveXABAP/4, C, C++, HTML, Java, ActiveX--ControlsControls
DB2/400DB2/400
OS/390OS/390AIXAIX
Digital UNIXDigital UNIXHPHP--UXUX
ReliantReliantUNIX (SINIX)UNIX (SINIX)
SOLARISSOLARISWindows NTWindows NT OS/400OS/400
Hardware Bull/ZenithBull/ZenithCompaqCompaqData GeneralData General......
NCRNCRSequentSequentSNISNI
DigitalDigitalHP (Intel)HP (Intel)IBM (Intel)IBM (Intel)
BullBullDigitalDigitalHPHP
IBMIBMSNISNISUNSUN
UNIX SystemsUNIX SystemsIBMIBM
AS/400AS/400
Operatingsystems
DialogSAPGUI
Languages
Windows NT,Windows NT,Windows 95,Windows 95,
PM, JavaPM, Java
Databases
IBMIBMS/390S/390
R/3 System Client/Server Configurations
Three-tierClient/Server
Distributed Presentation
Two-tierClient/Server
SAP R/3 System
Multi-Layer Cooperative
Client/Server
PresentationPresentation ApplicationApplication DatabaseDatabase
Central System