SAP Workshop in CSREM

Spotlight of the Workshop:

1.  Background
2. SAP Overview
3. Module specific overview 
4. Benefits/ Pitfalls of an ERP Implementation

SAP stands for Systems, Applications and Products

What is SAP:

It is an ERP (Enterprise Resource Planning) software package that consists of real-time application programs that can be configured to the specific needs of a company to support their business practices and information needs.

Background:

Systems, Applications, Products in data processing or SAP was originally introduced in the 1980’s as SAP R/2, which was a system that provided users with a soft-real-time business application that could be used with multiple currencies and languages. As client–server systems began to be introduced, SAP brought out a server based version of their software calledSAP R/3, henceforth referred to as SAP, which was launched in 1992. SAP also developed a graphical user interface, or GUI, to make the system more user friendly and to move away from the mainframe style user interface.

For the next 10 years SAP dominated the large business applications market. It was successful primarily because it was extremely flexible. Because SAP was a modular system (meaning that the various functions provided by it could be purchased piecemeal) it was an extremely versatile system. A company could simply purchase modules that they wanted and customize the processes to match the company’s business model. SAP’s flexibility, while one of its greatest strengths is also one of its greatest weaknesses that lead to the SAP audit.

There are three main enterprise resource planning (ERP) systems used in today’s larger businesses: SAP, Oracle, and PeopleSoft. ERP's are specifically designed to help with the accounting function and the control over various other aspects of the companies business such as sales, delivery, production, human resources, and inventory management. Despite the benefits of ERP’s, there are also many potential pitfalls that companies who turn to ERP’s occasionally fall into.

Module specific overview:

 

• The MM application module supports the procurement and inventory functions occurring in day-to-day business operations
• The PP application module is used to plan and control the manufacturing activities of a company
• The SD application module helps to optimize all the tasks and activities carried out in sales, delivery, and billing
• The PM application module supports the planning, processing, and completion of plant maintenance tasks
• The QM application module is a quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement
• The FI application module is designed for automated management and external reporting of general ledger, accounts receivable, accounts payable, and other sub-ledger accounts with a user-defined chart of accounts
• The CO application module represents the company’s flow of cost and revenue. CO is a management instrument for organizational decisions
• SAP HR Module helps to optimize the HR processes to attract, develop and attain the right people including Employment history, payroll, training, career management, succession planning etc.
  
  
  ADVANTAGES OF ERP-SAP
  1) Business integration:
  ERP package integrates the information processing and automates data updating (automatic data exchange among applications) between related business components.
  2) Flexibility:
  Diverse multinational environments such as language, currency, accounting standards, etc. are covered in one system, which makes the ERP systems very flexible.
  3) Better analysis and planning capabilities:
  ERP system enables the comprehensive and unified management of related businesses and its data. This unification makes it possible to fully utilize many types of decision support systems and simulation functions.
  4) Use of attest technology:
  ERP vendor uses the latest developments in the field of information technology. This technology adoption benefits the organizations using the packages as they get better products and with better capabilities.