What is SAP?

SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's largest inter-enterprise software company and the world's fourth-largest independent software supplier, overall. As clientserver systems began to be introduced, SAP brought out a server based version of their software called SAP 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. The original name for SAP was German: Systeme, Anwendungen, Produkte, German for "Systems Applications and Products." The original SAP idea was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications. Gradually, the applications have been assembled and today many corporations, including IBM and Microsoft, are using SAP products to run their own businesses. SAP applications, built around their latest R/3 system, provide the capability to manage financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. The R/3 system runs on a number of platforms including Windows 2000 and uses the client/server model. The latest version of R/3 includes a comprehensive Internetenabled package. 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 companys business model. There are three main enterprise resource planning (ERP) systems used in todays 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 ERPs, there are also many potential pitfalls that companies who turn to ERPs occasionally fall into. SAP has recently recast its product offerings under a comprehensive Web interface, called mySAP.com, and added new e-business applications, including customer relationship management (CRM) and supply chain management (SCM). WHY SAP IS USED IN COMPANIES: Improve productivity. Support changing industry requirements Reduce risk Improve financial management.

Provide immediate access to enterprise information into two types:-

SAP can be divided basically Technical level. Functional level.

The modules that we are implementing in Hero Group that are at functional Level.

SAP Modules

Financial Accounting (FI): It is An important core module, designed for meeting the accounting and financial needs of an organization.

Module CO Controlling

Represents the flow of cost in an organization. Key elements of the CO application module include : Product Costing Profitability analysis Activity based costing

Product Planning (PP):

The purpose of PP is to ensure that manufacturing runs effectively and efficiently and to produce the products as required by customers.

Module QM Quality Management Supports Quality planning Inspection Control for manufacturing Costing

Human Resources (HR): It deals with various activities done in the human resource department of an organization, such as, Personal Administration Personnel Development Training and Event Management.

Module SD Sales and Distribution Optimize tasks/activities in Sales Delivery Billing

Sales and Distribution Processing

Sales Order Process 1. Sales Order Entry 2. Check Availability 3. Pick Materials 4. Pack Materials 5. Invoice Customer 6. Receipt of Customer Payment Module MM Materials Management In this, we study about the life cycle of a material in a company from its purchasing (raw) to its sale(Finished Product). Material Master Record Data record contain all the basic information required to manage a material.

Plant

Raw material takes the desired Shape here. Storage Location Warehouse Stock Location

Vendor Master Contains details about all the vendors within a company.

Why Need MM ??? amount spend on material is higher than other inputs material offer considerable scope for reducing cost and improving profit material add value to the product quality of end product depend on material Efficiency of any organization depends upon the availability of right material, in right quantity at right time and at right place.

How to Create Material Master Step No. 1 The menu path to create the material master is as follows

[Logistics->Material Management -> Material Master -> Material-> Create ( General ) -> Create Immediately ] Step No. 2: Enter the material name, industry sector and material type.

LOGIN SCREEN:-

MASTER DATA SCREEN NDUSTRY SECTOR TYPES:1.Chemical 2.Mechanical 3.Pharamaceutical 4.Construction

Material type is the most important field in this screen. It controls how the material behaves in the material master

TYPES OF MATERIAL: Raw materials Semi-finished Material Finished Spare parts(Maintaince Purposes) Pipeline Material(electricity, Water etc means that flows through Pipes)

The material type defines the views.

Step No.4 In this step, we select the organizational levels.

Process Flow

Material Management Component Consumption based planning (MM-CBP) Purchasing (MM-PUR) Inventory Management (MM-IM)

Consumption based planning CBP is based on the past consumption or other statistical procedure to determine future requirements. It alerts automatically when stock level falls below pre-defined reorder points.

Purchasing Purchasing is a component of Material Management. Task of Purchasing as following : External procurement of material & services Determination of possible source of supply. Monitoring deliveries and payment to vendors.

Inventory Management Task of SAP-IM as following : Management of material stocks on a quantity basis Planning, entry and documentation of all goods movement

Benefits of MM Material cost can be lowered down Controlling of indirect cost Risk of Inventory loss minimized Reduction in loss of time of direct labor

Control of manufacturing cycle Material congestion in storage places avoided Improvement in delivery of the product