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SAP SD OVERVIEW BY Umamaheswararao SD CONSULTANT

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WELCOME TO THE WORLD OF SAP R/3

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ERP Enterprise Resources Planning

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Enterprise <ul><li>Where a transaction takes place. </li></ul><ul><li>Where customers get the satisfaction. </li></ul><ul><li>Where the resources are available for the peoples needs. </li></ul>

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Evolution of ERP <ul><li>1960s: Inventory Control </li></ul><ul><li>1970s: Material Requirement Planning (MRP) </li></ul><ul><li>1980s: Manufacturing Resources Planning (MRP-II) </li></ul><ul><li>1990s: Enterprise Resource Planning (ERP) </li></ul>

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Resources <ul><li>Money </li></ul><ul><li>Men </li></ul><ul><li>Machines </li></ul><ul><li>Materials </li></ul>

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Planning <ul><ul><li>Proper Planning and Optimization of the valuable resources make enterprise run into profits. </li></ul></ul>A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise. Def of ERP

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Need for ERP <ul><li>Integration of Business Processes </li></ul><ul><li>Online information at the corporate office </li></ul><ul><li>Standardization of systems across Locations </li></ul><ul><li>Reduce cash to cash cycle times </li></ul><ul><li>Faster Consolidation at Head office for statutory reporting </li></ul>

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Problems Tackled by ERP Systems Material Shortages Productivity Enhancements Customer Service Cash Management Inventory Problems Quality Problems

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ERP Products <ul><li>SAP </li></ul><ul><li>BAAN </li></ul><ul><li>Oracle APPS </li></ul><ul><li>People Soft </li></ul><ul><li>JD Edwards </li></ul><ul><li>Marshall </li></ul><ul><li>Etc.. </li></ul>

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Domain Share Of SAP

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SAP & Competitors SAP R/3 had competition with Software giants like Oracle Corp, People Soft & Bann. Oracle with its E-biz suit packed to excel with 142 modules. People Soft with its extra ordinary performance in HR has stormed the market. But finally failed to gain the confidence of Big Enterprises. Result is SAP Has become giant in ERP.

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Few SAP Customers <ul><li>IBM </li></ul><ul><li>COMPAQ </li></ul><ul><li>Hewlett Packard </li></ul><ul><li>AMD </li></ul><ul><li>Boeing </li></ul><ul><li>Mercedez </li></ul><ul><li>Toyota </li></ul><ul><li>Lucent </li></ul><ul><li>Hitachi </li></ul><ul><li>Nike </li></ul>TATA’s Dr.Reddy’s Labs Ranbaxy L& T Reliance Industries Glaxo Mahindra & Mahindra Hero Honda Growel Colgate Palmolive

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Consulting Companies <ul><li>Price Water House Coopers. </li></ul><ul><li>KPMG. </li></ul><ul><li>Siemens. </li></ul><ul><li>Delloitte. </li></ul><ul><li>Accenture. </li></ul><ul><li>Cap Gemini. </li></ul><ul><li>IntelliGroup </li></ul><ul><li>TCS. </li></ul>

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SAP R/3 What is all about <ul><li>Systems Applications & Products in Data Processing </li></ul>

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SAP & Modules <ul><li>SAP Package is strategically divided into 2 main areas. </li></ul><ul><li>Functional & Technical. </li></ul><ul><li>People with domain experience can work on functional modules. </li></ul><ul><li>2 Technical modules are ABAP/4 & Basis. </li></ul><ul><li>Cross Applications are used for ALE Purpose. </li></ul>

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SAP AREAS In Functional area we have around 64 modules all are enabled for web reporting via Web Application Server. SAP Functional Technical T F

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THE SAP COMPANY SAP AG in 2002 revenues: €7.4 billion 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003) 12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners

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SAP Milestones over 30 years

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The SAP R/3 Architecture <ul><li>SAP R/3 works on Three Tier Architecture </li></ul>User Terminal Application Server Database Server Data Creation Modification Retrieval Managing User Requests Data Storage

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The SAP World R/3 Client / Server FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Manage-ment PM Plant Main-tenance

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3-Tier Client/Server Architecture The Presentation Layer collects user input and creates process requests. The Application Layer uses the application logic of SAP programs to collect and process the process requests. The Database Layer stores and retrieves all data. Communication

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SAP R/3 Customer Installations by Industry SAP HIGH TECH & ELECTRONICS 11.3% SAP CHEMICALS 9.5% SAP CONSUMER PRODUCTS 10.3% Consulting & Professional Services 6.0% SAP RETAIL 6.3% SAP PHARMA - CEUTICALS 3.4% SAP PUBLIC SECTOR 3.4% SAP OIL & GAS 3.2% Metal, Paper & Wood Products 2.8% Services 3.1% SAP HEALTHCARE 2.3% SAP BANKING 2.0% SAP MEDIA 2.3% Others 11.5% SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8% SAP TELECOM- MUNICATIONS 3.4% SAP ENGINEERING & CONSTRUCTION 10.5% Worldwide

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Industry Solutions

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<ul><li>Aerospace and Defense </li></ul><ul><li>Apparel and Footwear </li></ul><ul><li>Automotive </li></ul><ul><li>Chemicals </li></ul><ul><li>Consumer Products </li></ul><ul><ul><li>Trade Promotion Management </li></ul></ul><ul><ul><li>Key Account Management </li></ul></ul><ul><li>Distributor Reseller Management </li></ul><ul><li>Financial Services </li></ul><ul><ul><li>Banking </li></ul></ul><ul><ul><li>Insurances </li></ul></ul><ul><ul><ul><li>Collections and Disbursement </li></ul></ul></ul><ul><ul><ul><li>Incentives & Commission Management </li></ul></ul></ul><ul><ul><ul><li>Claims Management </li></ul></ul></ul><ul><ul><ul><li>Asset & Liabilities Management </li></ul></ul></ul><ul><ul><li>Financial Service Provider </li></ul></ul><ul><li>Healthcare </li></ul><ul><li>High Tech </li></ul><ul><li>Media </li></ul><ul><li>Oil&Gas </li></ul><ul><li>Pharmaceuticals </li></ul><ul><li>Public Sector </li></ul><ul><li>Real Estate </li></ul><ul><li>Retail </li></ul><ul><ul><li>Agency Business </li></ul></ul><ul><ul><li>Category Management </li></ul></ul><ul><ul><li>Store Management </li></ul></ul><ul><li>Service Providers </li></ul><ul><li>Telco </li></ul>

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SAP - characteristics <ul><li>Highly Integrated solution covering entire business processes </li></ul><ul><li>Technically capable of utilizing the network infrastructure </li></ul><ul><li>Open system to ensure freedom to choose </li></ul><ul><li>Provides multiple ways of configuring business processes </li></ul><ul><li>Solutions in areas where currently no systems </li></ul><ul><li>Workflow enabled business processes </li></ul><ul><li>Enables to exploit the power of Intranet and Internet </li></ul>

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Common SAP objectives <ul><li>Cost Control & increased profitability </li></ul><ul><li>Increased productivity of all resources – man, material & money </li></ul><ul><li>Process Standardization </li></ul><ul><li>Transparency in operations, resulting in better communication </li></ul><ul><li>Shift from post-mortem scenario to predictive scenario </li></ul>

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Results of Integration <ul><li>Focus on Business Processes </li></ul><ul><li>Elimination of Redundant Data (Common Constant Data) </li></ul><ul><li>Easier Corporate Consolidation </li></ul><ul><li>Better Managerial Control </li></ul><ul><li>Elimination of Interfaces </li></ul><ul><li>Faster reaction to changing structures </li></ul>

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Success factors for SAP implementation <ul><li>Top Management Commitment & communication down-the-line </li></ul><ul><li>Empowerment </li></ul><ul><li>Change management </li></ul><ul><li>Training </li></ul><ul><li>Compliance to methodology </li></ul>

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SAP IMPLEMENTATION - PHASES <ul><li>Project Planning </li></ul><ul><li>Business Process Study & Analysis </li></ul><ul><li>Installation </li></ul><ul><li>Training </li></ul><ul><li>Business Requirement mapping </li></ul><ul><li>Configuration </li></ul><ul><li>Modifications / Interfaces </li></ul><ul><li>Data Conversion </li></ul><ul><li>Documentation </li></ul><ul><li>Testing </li></ul><ul><li>Go-Live </li></ul><ul><li>Post production support </li></ul>

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Implementation Methodology

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<ul><li>SALES AND DISTRIBUTION </li></ul>

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GENERAL SETTINGS <ul><li>COUNTRY </li></ul><ul><li>CURRENCY </li></ul><ul><li>TIME ZONE </li></ul><ul><li>CALENDER </li></ul><ul><li>UNITS OF MEASURE </li></ul>BASE SALE DELIVERY FACTORY VENDOR CUSTOMER

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ORGANIZATION STRUCTURE COMPANY COMPANY-CODE PLANT SHPNG PT P.ORGN P.GRP SALES ORGN DIS CHNL DIVISION SALES OFF SALES GRP SALES ORGN+DIST CHNL EMP EMP CNTRL AREA CREDIT CNTRL AREA SALES AREA

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MASTER DATA <ul><li>Organizational Master </li></ul><ul><li>Customer Master Record </li></ul><ul><li>Material Master Record </li></ul><ul><li>CMIR </li></ul><ul><li>Condition Master </li></ul>

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SALES CYCLE <ul><ul><ul><ul><ul><li>INQUIRY </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>QUOTATION </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>ORDER </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>DELIVERY PGI </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>BILLLING </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>REL TO ACCOUNTS </li></ul></ul></ul></ul></ul>INVENTORY ACCOUNTS CONTRACTS SCHEDULING AGREEMNETS

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PRICING <ul><li>Condition Technique for Pricing </li></ul><ul><li>Condition Tables </li></ul><ul><li>Access Sequence </li></ul><ul><li>Condition Type </li></ul><ul><li>Pricing Procedure </li></ul><ul><li>Pricing Procedure Determination </li></ul><ul><li>Condition Records </li></ul><ul><li>Pricing: Condition Exclusion </li></ul><ul><li>Free Goods Determination </li></ul>

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BASIC FUCNTIONS <ul><li>Partner Determination </li></ul><ul><li>Out Put Determination </li></ul><ul><li>Material Determination </li></ul><ul><li>Product Proposal </li></ul><ul><li>Item Proposal </li></ul><ul><li>Incompletion Procedure </li></ul><ul><li>Availability Check </li></ul><ul><li>Credit Management </li></ul><ul><li>Number Ranges </li></ul><ul><li> </li></ul>

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SHIPPING <ul><li>Delivery Document Types </li></ul><ul><li>Schedule Category </li></ul><ul><li>Schedule Line category Determination </li></ul><ul><li>Shipping point Determination </li></ul><ul><li>Storage Location Determination </li></ul>

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BILLING <ul><li>Billing Documents </li></ul><ul><li>Billing Plans(Periodic,Milestone) </li></ul><ul><li>Cancellation of Invoices </li></ul><ul><li>Invoice lists </li></ul>

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SPECIAL FUNCTIONALITIES <ul><li>Third Party Order </li></ul><ul><li>Individual Purchase Order </li></ul><ul><li>Consignment Sales </li></ul>

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Special Topics <ul><li>REBATE PROCESSING </li></ul><ul><li>VARIANT CONFIGURATION </li></ul><ul><li>TRANSFER ORDER </li></ul><ul><li>INTEGRATION </li></ul><ul><li>DATA TRANFER TECHNIQUE </li></ul><ul><li>REPORTS </li></ul>

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ADDITIONALS <ul><li>DAY TO DAY NOTES(SOFT COPY) </li></ul><ul><li>PRESENTATIONS </li></ul><ul><li>EVALUATIONS </li></ul><ul><li>DISCUSSIONS </li></ul>

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<ul><li>THANK YOU </li></ul>