The Enterprise Systems Track EGN 5620 Enterprise Systems

The Enterprise Systems Track EGN 5620 Enterprise Systems Configuration Fall, 2011

Track Vision ES ES ES Design Operations IT

Track Courses Sequence EGN EGN 5620 5622 5623 5621 ES ES Configuration Integration Optimization Collaboration 5620 5622 5623 5621

Intro to Enterprise Systems & Operations EGN 5620 Enterprise Systems Configuration Fall, 2011

Intro to Enterprise Systems & Operations Theories & Concepts EGN 5620 Enterprise Systems Configuration Fall, 2011

ESE Framework Enterprise elements Work Decision Resource Information System facets Strategy Competency Capacity Structure Engineering activities Specification Analysis Design implementatio n Performance measure Cost Time Quality Benefit (profit)

Enterprise systems layers ES Layers (subsystems) ◦ Physical system In physical existence of a company ◦ Managerial system A manual system put in place to run a company It may choose not to manage some physical system elements Certain computer tools may be in use to assist the manual managerial system ◦ Computerized managerial system It computerizes the managerial system as a replacement and/or to supplement the manual system. It may be equipped with on-line application tools and decision support systems.

Enterprise Operations OP Execution High-Level OP Planning Procurement Process CO/PA Detailed OP Planning Forecasting Sales and Operations Demand Planning Management MPS Sales Information MRP Manufacturing System Execution Warehouse Strategy Planning Management Sales - Vision Process - Goals & Objectives Execution - Strategy - Product Portfolio and Roadmap January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 8

Major operation modes Make-to-stock (MTS) ◦ Accept no back orders Continuous Batch Just-in-time ◦ Accept back-orders Make-to-order ◦ ◦ (MTO) for back orders only Assemble-to-order (ATO) Build-to-order (BTO) Engineer-to-order (ETO) Develop-to-order (DTO)

MTS Background Traditional operation assumptions ◦ Repetitive demand for a product ◦ Real orders come from distribution centers ◦ Product is optimally designed and thus a bill of materials (BOM) is available ◦ Process plan is optimally designed for volume production of a fixed lot size. ◦ Production facility is set up for continuous or repetitive (batch) production. ◦ Labor are single skilled and readily trained ◦ SQC is used to manage the quality and the throughput quantity of each production.

MTS

Paradigm Shift Today’s business environment ◦ Innovation ◦ Shortened product life cycle & shortened product development cycle concurrent engineering ◦ Frequent changes & agile operations mass customization ◦ Smaller lots and just-in-time production lean manufacturing/thinking ◦ Core business and supply network ◦ Internet and wireless integration ◦ Global economy and corporate intelligence

Enterprise Systems Functions Sales planning and operation Procurement Production planning and operation Financial planning & controlling Human resources & performance management Warehouse & distribution Detailed operations planning & execution PDM/PLM Project Management SCM, SRM, and CRM Strategic Management

Commercial Enterprise Systems 1. SAP (Systems, Applications, & Products in Data Processing) • #1 Market Share in Enterprise Applications (ERP, CRM, SCM, PLM, SRM) 2. Oracle Applications • Oracle, JD Edwards, People. Soft, Siebel (CRM), Retek (Retail) 3. Microsoft Business Solutions • Dynamics (ERP & CRM) : Great Plains, Navision, Axapta, 4. Soloman • Project-driven small- and medium-sized enterprises 5. The Sage Group • Sage Software - Accpac ERP (Accounting, CRM), Peach. Tree 6. Infor Global Solutions of Atlantas • BAAN (for mid-range companies) 7. Many Others

SAP Company SAP AG • • Founded in Walldorf, Germany in 1972 World’s Largest Business Software Company World’s Third-largest Independent Software Provider Over 50, 000 employees in more than 50 countries More than 95, 000 customers in more than 120 countries Over 100, 000 installations Over 12 million users

Introduction to Enterprise Systems SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2011

SAP Business Suite SAP PLM SAP SRM SAP ERP Central Component (ECC) SAP SCM SAP Net. Weaver SAP CRM

SAP ERP Module Structures

Enterprise Systems Architecture

Enterprise Systems (history & Evolution)

ERP & SAP (Solutions) Solutions for large companies - SAP ERP - SAP CRM - SAP PLM - SAP SCM - SAP SRM - SAP Analytics - SAP Manufacturing - SAP Service - SAP Mobile Solutions - SAP x. Apps Small & Medium Size Solutions - SAP Business One - SAP Business by Design - AP Business All-in-One Platforms - Enterprise Services Architecture - SAP Net. Weaver technology platform

ERP & SAP (Industry Solutions) Aerospace & Defense Automotive Banking Chemicals Consumer Products Defense & Security Engineering, Const. Healthcare High Tech Higher Education Industrial Machinery Insurance Life Sciences Logistics Service Prod. Media Mill Products Mining Oil & Gas Pharmaceuticals Postal Services Professional Services Public Sector Railways Retail Telecommunications Utilities Wholesale Distribution

Before ERP systems … 25

Building an integrated organisation 26

SAP Module View Financial Accounting Sales & Distribution Materials Mgmt. R/3 Production Planning Quality Mgmt. Controlling Plant Maintenance Human Resources Fixed Assets Mgmt. Integrated Solution Client / Server Open Systems Project System Workflow Industry Solutions

Materials, Data, Cash Flow Supplier Manufacturer Cycle Time Distribution Center Customer Delivery Time

Key Concepts in SAP Types levels of Data: Organizational ◦ Defines the enterprise structure in terms of legal or business purposes Legal entities, plants, storage areas, sales organizations, profit centers ◦ Client ◦ Company Code ◦ Organizational levels in Logistics Plant Storage locations

Enterprise Structure Credit Control Area Client Fiscal Year Variant Chart of Accounts Company Code Controlling Area Purchasing Organization Plant Purchasing Group SL 10 SL 20 Shipping Point Sales Organization Distribution Channel Division Sales Area

Client • • Is the highest hierarchical level in an SAP system, represents the enterprise consisting of many companies Has a complete database containing all the tables necessary for creating a fully integrated system Is a whole business entity. • Note: Master records are created per client

A COMPANY CODE IS. . . A BALANCED SET OF BOOKS

Company Code A required structure A legally independent entity in an enterprise The smallest organizational unit and a central organizational element in financial accounting The level where business transactions are processed The level where accounts are managed The level where legal individual financial statements, such as the balance sheet and the profit and loss statement, are created

Master Data In SAP, master data describes objects (items) of a business such as accounts, materials, services, vendors, customers, and info records. The information in a master data record usually remains unchanged over an extended period of time.

Master Data Business rules and supportive information are stored in master data records. Each master data record is unique in name or number. Internal or external number ranges are possible. E. g. Purchase orders always start with 49 in SAP.

Vendor Master Account control Customer Address screen Control Tax information Tax juris. code Reference information Person subject to withholding tax Payment transactions

Customer Master Address Customer Name Marketing Control Data Contact Person Search Terms - Managing Director - Administration Street Address PO Box Address - Purchasing

Material Master Material master data can be related to (i. e. , viewed at) all organizational levels. General information of a material (description, number, base unit of measure) however has to be related to the highest level of organization (i. e. the client).

Material Type The material type is used to categorize materials. Example: raw materials, finished goods, trading goods, etc. The material type defines the material attributes, e. g. , valuation, procurement, price control

Material Type - Examples ◦ ◦ ◦ ROH - raw materials, purchased externally only, no sales view HAWA - trading goods, always purchased externally, are sold without any change to the material, no manufacturing views exist FERT- finished goods are produced internally no purchasing view exists

SAP Navigation EGN 5620 Enterprise Systems Configuration Fall, 2011

SAP Navigation SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2011

SAP Access Navigation

SAP Access through SAPGUI Download The latest SAP GUI release posted on SAP @CSU, Chico web server http: //worker. cob. csuchico. edu User = sap; Password = sapgui 4 me. This GUI works on Windows 7 systems, as well as Vista and Windows XP.

SAP Access through SAPGUI

SAP Access through SAPGUI

SAP IDES Client, Userid, Password SAP Navigation Exercises Client: 100 Userid: ides-011 to ides-025 Initial password: 123456

SAPGUI Setup for IDES

SAP BPI Client, Userid, Password SAP Configuration Exercises Client: 700 Userid: bpi-011 to bpi-025 Initial password: 123456

SAPGUI Setup for BPI

Access SAP through web Another way to access SAP IDES, and BPI by a web portal link: Access IDES: http: //bristol. cob. csuchico. edu: 8021/sap/ bc/gui/sap/its/webgui? sap-client=1005 Access BPI http: //bristol. cob. csuchico. edu: 8021/sap/ bc/gui/sap/its/webgui? sap-client=700

Standard Features of Navigation n n n Logging On and Off Screen Features Working with Sessions Entering Data On-line Help and System Messages Setting User Defaults

User Enter the name of the SAP user. Users of SAP system are client-specific, which means that having a user identification on one client will only allow access to that particular client.

Password Rules Letters Numbers Easy to remember 3 -8 Characters long No 3 Characters can be the same Do not start with a ? or an ! Do not use previous 5 passwords

Language SAP supports multi-national character sets and languages on the same system, at the same time. Default languages are English

Easy Access Outline Structure

Sa Ba ve i ck con Ex butt Ca it b on nc utt el o Fin Pr bu n d/E int tton xp but an ton di co ns C Cr r ea eat Scr te e a d a n oll ic esk ew on top ses s sh sion or He tcu lp t ico n iel d n ico df an mm Co En ter Application Tool-bar

Screen Features Title Bar Menu Bar Application Toolbar Entry Fields Status Bar

SAP Easy Access Menu n Using menus n Using transaction codes n System > Status n Using /n (end current transaction) n Using /I (end the current session) n Using /o (create a new session) n Working with multiple sessions

Sessions An SAP session is a window in which the user may perform a particular task. A User may have up to six sessions open at one time.

System Messages n E - Error an invalid entry has been made. The cursor moves to the field where the error has occurred. n W -Warning, indicates a possible error. The user can continue without changing.

System Messages n I - Information n A- Abnormal End, indicating serious system error. Contact system personnel.

Logging Off n Menu Path: System> Logoff n Exit button n Control Box For security purposes it is important to log off SAP at the end of the day or whenever you leave your PC. Your username is linked with every transaction you perform to provide an audit trail. When reviewing transactions or running reports the user name of the person responsible for entering or maintaining system information is displayed.

SAP Basic Financial Accounting EGN 5620 Enterprise Systems Configuration Fall, 2011

SAP FI Financial Accounting Sales & Distribution Materials Mgmt. R/3 Production Planning Quality Mgmt. Controlling Plant Maintenance Human Resources Fixed Assets Mgmt. Integrated Solution Client / Server Open Systems Project System Workflow Industry Solutions

Components of Financial Accounting Accounts Receivable Financial Accounting (FI) General Ledger Fixed Assets Accounts Payable Banks Special Purpose Ledger January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 71

Financial Accounting External Accounting Stockholders Financial Position Profit & Loss Balance Sheet Bankers, Lenders External Auditors IRS, Taxing Authority SEC

General Ledger A structure that records value movements in a company code and represents the G/L account items in a chart of accounts. A G/L account has transaction figures that record changes to the account during a posting period. These figures are totals that are used for G/L reporting. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 73

Chart of Accounts A listing of the accounts (assets, liabilities, equity, revenues, and expenses) that are contained in the General Ledger A chart of accounts must be assigned to every company code in order to create the General Ledger for that company Several company codes can use the same chart of accounts January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 74

Chart of Accounts in SAP January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 75

Account Groups Identifier that controls which fields must be entered when an account is created Determine a valid number interval for each of the groups (types) of General Ledger accounts that have common attributes Must be created before General Ledger Chart of Accounts master records can be created You must assign each account to an appropriate account group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 76

Account Groups Chrt/accts CHRT Acct group BS PL RA Description Balance Sheet Income Sheet Reconciliation From 100000 400000 110000 January 2008 To 3999999 310000 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 77

IDES (Internet Demonstration & Evaluation System) Industry IDES Europe 4000 Frankfurt / D 3000 London / GB 2000 IDES North America New York / USA 1000 2200 2100 2300 Toronto / CND 6000 IDES Mexico IDES Industry – Company Codes Mexico City / MEX Paris / F Lisbon / P Barcelona / E 5000 IDES Asia Tokyo / J

IDES Industry Company code 1000 – Characteristics (Germany) n Maps business processes for logistics, accounting, and human resources as well as daily procedures in financial accounting and closing activities n Flexible planned cost accounting in CO n Fully implemented production including planning, procurement, and sales n Real estate management set up n Account determination fully maintained n Approx. 70 customer accounts mapped IDES Europe Frankfurt / D London / GB 1000 IDES Industry – Company Code 1000 Paris / F Lisbon / P Barcelona / E

IDES Industry Company Code 3000 – Characteristics (USA): n Business processes from logistics, accounting, and human resources 3000 IDES North America n Daily financial accounting procedures mapped n Account determination is fully maintained New York / USA n CC 3000 is very similar to CC 1000 (Germany) Toronto / CND n Industry solutions for aerospace and defense located here n Real estate management set up IDES Industry – Company Code 3000

SAP Aerospace / Defense n Production and maintenance of an engine Production types Project Manufacturing Make-to-order Production Lot-size Manufacturing Process Manufacturing SAP Engineering / Construction n Elevator and turbine production n Power plant construction Assembly Processing JIT Repetetive Manufacturing SAP Automotive n Manufacturer processes n Supplier industry SAP Consumer Products n Production of food products and "non-food products" SAP High Tech & Electronics n PC assembly and service Mass production SAP AG IDES Industry – Production types SAP Chemicals n Paint and solvent production SAP Pharmaceuticals n Pill manufacturing

Business Area 8000 – External Services (Services) Business Area 3000 – Automotive (Motorcycles) Business Area 1000 – Mech. Engineering (Pumps) Company Code 1000 (GER) CC 2000 (GB) Chart of Accounts INT Credit Control Area 1000 Controlling Area 1000 CC 3000 (USA) Co. A CAUS CCA 3000 CA 2000 IDES Enterprise Operating Concern IDEA Structure – Accounting Client © SAP UCC Magdeburg

Exercises: 1. SAP navigation 2. G/L accounting orientation Homework due date: By 8/29/2011