This document provides an introduction to SAP ERP. It outlines several key business functions and processes that ERP systems integrate, including marketing and sales, supply chain management, accounting and finance, and human resources. It also discusses some SAP-specific planning tools like rough cut capacity planning and sales and operational planning. Key benefits of ERP systems include single system integration, replacing inefficient legacy systems, data access and sharing across departments, and improved business processes.

1. INTRO TO SAP ERP
By MuhammadHussain
20141-17712
Enterprise Goals
1. Resources
2. People
3. ???
ERP Benefits
1. Replace inefficient systems with one that is functionally integrated. Single Integration.
2. Provide a state-of-the-art technical infrastructure to better serve employees and customers.
3. Empower users with more control over systemfunction, service, and scheduling.
4. Utilize a completely web-based system. Allow Portability
5. Eliminate paper and forms where feasible and sensible. Cloud Data
6. Provide easy access to data and information via decentralization.
7. Develop new, more efficient processes that fully leverage the technology investment.
8. Eliminate data redundancy and knowledge silos.
9. Enforce Compliance policy and procedures.
SAP= SystemAnalyse Programming(SystemApplicationsProduct)
Audit Purpose:IdentifyGaps TCO: Total Costof Ownership
ERP
HCM
PM
PM
MM
SCM
CRM
FM
MIS

2. Total Quality Management
IdentifyGaps
Classification
Root Cause of Analysis
Corrective Action
PreventiveAction
Kaizen<Continuous>
ERP Failure Ratings80%
Do not knowhowto implement
Do not knowaboutupdate and upgrades
ERP History
1990- CoinedbyGartnerbut the rootsdate back to 1960s.
Back thisconceptappliedto INVENTORYMANAGEMENT& CONTROLinthe manufacturingsectorsector
Software Engineers createdprogramtomonitorinventory,reconcile balance &reportinbalance
By 1970 EvolvedintoMaterial RequirementsPlanningMRP
SystemsforProductionprocesses
By 1980 move to Manufacturing Resource PlanningMRPII
Inventory=
Raw Material
Semi FinishedGoods
FinishedGoods
Infoisalso inventory.
ERP-SAP Purchase Order
Learning Outcomes:
The SAP andmanuallycraftedPurchase orderare similar.
But whatmakesSAPstand apart isthe use of Automationand IntegrationtoInvoice,andRecipts.
AllowsDeliveryDates,Calculationof pricesandnetprices.Full listof vendors.
AdjustingConditions
Thisalsoallowsdata visualizationandeditingonthe goand portability.

4. Chapter 1: BusinessFunctions& Processes- Conceptsin ERP
ERP issoftware thatintegratesall businessfunctionsandprocesses.
BusinessProcessesare set of activitiesof aparticularbusinessfunctions.
BusinessFunctionsbelongto 4 main areas:
1. Marketing and Sales– CustomerRelationshipManagement
Marketing & Sales Process
Marketing and Sales:BusinessFunctions
• Marketinga product
• CustomerSupport
• TakingSalesandOrders
• SalesForecasting
• Advertising
Marketing and Sales- Mappingfor ERP and Business
How does Marketingand Salesfunctionsin ERP System

5.  Marketingand Salesdevelopsproducts,setsproductprices,promotesproductsthrough
advertising
 Marketing,takescustomerorders,supportscustomers.
 Createssalesforecasts.
To summarize,inputsforMarketingandSalescouldinclude the following:
• Customerdata
• Orderdata
• Salestrenddata
• Per-unitcost
Companytravel expensepolicyOutputsforMarketingandSalescouldinclude the following:
• Salesstrategies
• Productpricing
• Employmentneeds
2. SupplyChain Management
SupplyChainManagementdevelopsproductionplans,ordersraw materialsfromsuppliers,
receivesthe rawmaterial intothe facility,manufacturesproducts,maintainsfacilities,andships
productsto customers.
To summarize,inputsforSupplyChainManagementcouldincludethe following:
• Productsalesdata
• Productionplans
• Inventorylevels
• Layoff and recall companypolicy

6. Outputsfor SupplyChainManagementcouldinclude the following:
• Rawmaterial orders
• Packagingorders
• Resource expenditure data
• Productionandinventoryreports
• Hiringinformation
SupplyChainManagementdevelopsproductionplans,ordersraw materialsfromsuppliers,
receivesthe rawmaterial intothe facility,manufacturesproducts,maintainsfacilities,andships
productsto customers.
3. Accounting and Finance
AccountingandFinance performsfinancialaccountingtoprovide summariesof operational data
inmanagerial reports,andalsoisresponsiblefortaskssuchas controllingaccounts,planning
and budgeting,andcash-flowmanagement.
To summarize,inputsforAccountingandFinance couldinclude the following:
• Paymentsfromcustomers
• Accountsreceivabledata
• Accountspayable data
• Salesdata
• Productionandinventorydata
Payroll andexpense dataOutputsforAccountingandFinance couldinclude the following:
• Paymentstosuppliers

7. • Financial reports
• Customercreditdata
4. Human Resource Management
Human Resourcesrecruits,hires,trains, andcompensatesemployees,ensurescompliance with
governmentregulations,andoverseesthe evaluationof employees.
To summarize,inputsforHumanResourcescouldincludethe following:
• Personnel forecasts
SkillsdataOutputsforHuman Resourcescouldincludethe following:
• Regulationcompliance
• Employee trainingandcertification
• Skillsdatabase
• Employee evaluationandcompensation

8. WM 1: DisplayStorage Bin
WM 2: RunBin StatusReport

9. Intro to SAP ERP
Learning Outcomes
Rough Cut Planning
This is a planning tool to expedite the process of production planning. Itis the
coordination plan that balances out the sales/marketing and production plans;
whereby matching the capacities of productions and sales and demand. This
allows meeting the demands without the excess or inadequacy of inventory of
products/goods.
InSAP
RCCP can be customized and preview is available. This can scheduleparameter
details. Master Data, The next step is to create the rough-cut planning profile on transaction
MC35. In this example, I’ll create the rough-cut planning profile for a material, however, it is also
possible to create it for a product group (if all the materialsare using the same work center) of for
an info structure, case you are using flexible planning.
Sales & Operational Planning

10. The S&OP cycle is monthly with a set calendar of meetings culminating in a senior
management sales and operations planning meeting. The preparation meetings
utilize the outputs of the ERP system. The first step in the S&OP cycleis to extract
sales history, production history, and inventory levels. These are measured against
plan to highlight variances and to establish accountability. The sales history is
utilized to generate a sales forecast, using the forecasting module of the ERP
System. This is frequently a consensus process. With a consensus forecast
generated it is reviewed in a sales planning meeting with action items generated to
increase sales in strategically important areas. Based on these sales plans the
forecast can be revised
The purpose of Sales and Operations Planning is to establish proper production
rates and operational capacity to affect:
 Inventory levels
 Customer backlog levels
 Work force stability
The Sales and Operations Planning is also establish to extend planning horizon
sufficient to manage:
 Labor
 Equipment
 Facilities
 Materials
 Finances

11. Tasks
Create Sales & Operational Plan
Procedure
> Production>SOP>Disaggregation>Transfer PG to demand Planning
Demand Management
Procedure
Logistics>Production>Production Planning>Demand Management> Planned
IndependentRequirements> Displays
Logistics SOP Disaggregation
Transfer PG to
Demand
Planning

12. Is the tool used to disaggregateplanning data fromhigh- level plans down to the
detailed planning level.
Manage and analyze demand streams to feed operational planning
and drive greater productivity and customer satisfaction
Match supply more closely with demand using SAP software for demand management to
improve efficiency, productivity, and customer satisfaction levels. Collect internal and
external demand streams, analyze their input, and use the resulting insight to create rational
demand plans and update them as needed. Integrate internal and external demand data
across sales and supply functions as a foundation for trade promotion activities and other
means of demand shaping.
In SAP
For this task, planning for the Deluxe Touring ProductGroup will be broken down
into individual components that belong to this group.
Transferring SOP to Demand Management
Logistics
Production
Production Planning

14. FI Case Study
Chapter7: ProcessModeling,ProcessImprovement,andERPImplementation
FreightonBoard
FreightonReceiptorFreighton Rail??? <Deliverytofactory>
MKT sendsquerytoPPC< PPCsends
itsQA to production.
AfterreceivingcommitmentfromQA
& Production.
MarketingmakesDecision&informs
customers.

16. Run Financial Statement