An ERP system is a real-time business support system that caters to the info requires of the whole company using a sole repository of information (a database) and a really sophisticated set of highly-customizable software modules which, together, help decision-making and the activities set on these conclusions. This invariably outcomes in highly capable operations and a resultant competitive advantage. SAP, developed by SAP AG, sited in Walldorf, Germany, is 1 such copyrighted ERP system.
The SAP system is organized into some sets of 'solutions' (essentially, modules) that comprehend the information requires of specified regions of any corporation's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these several solution 'talk' to each other in a cohesive mode.
There is a saying, "If you fail to plan, you are actually planning to fail". Consequently, a good starting point for interpreting SAP is it's Project System which treats all activity within the corporation as division of numerous project. Set on occurrent orders (or perceived demand), this module is applied define projects that will execute these orders and start chasing them from then on. A regular project would include a mix of various manufacturing actions as well as whatsoever related procurement (raw materials as well as bought-out items). Chasing every such project right from inception, through to it's completion and beyond (post-project analysis) is aptly dealt by this module.
For project actions that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the store floor. This includes handling data on the accessibility and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which manages preventive maintenance, breakdown maintenance along with the related down-time of equipment and lost hrs of the work-force as well as the time, material and labor required for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to check a) Timely delivery of stuffs and b) Reduced cost of inventory. Its range goes with material requisitions (based on Bills of Material emanating from production programs as well as for unintentional purchases) and tracks them from placing orders to receipt of goods, their acquiring inspection (quality control), their being needed into stock and being subsequently issued for production. This module also handles finished-goods inventory.
The Costing module interfaces with each entity that has a money value affiliated with it. It takes into consideration the different cost-centers and all the associated costs : equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain set prices accurately ) as well as activity-based costing which is regarded more scientific and provides for cross-functional sharing of each of the drivers of these prices.
The Sales and Distribution module tracks all transactions from inquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of basic books of accounts, keeps the General Ledger and all defined sub-ledgers, consolidates all this into the ultimate books of accounts (essentially, Profit & Loss account and the Balance Sheet), addresses tax-related transactions/adjustments and interfaces with book closure. By The Way, most of this is of a statutory nature and gets implemented with the country-specific picks of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lifetimes with regard to their depreciation (and, consequently their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, really overlaps all another procedures and interfaces with each one of them throughout the lifetime of the corporation. Quality, they say is never by chance; it's always by design. That is why this module is practiced to facilitate all activities that make quality into the corporation's products/services (preventing defects/errors occurring in the 1st place). This is done by planning (essentially, incorporating preventive measures in the corporation's work-flow), fulfilling these quality programmes and leading periodic inspections to find out deviations, if any. Important to the company's icon and credibility in the outside world, are actions that result to the several applicable certifications obtaining which is also addressed in effect by this module
This was a uncomplicated view of a very comprehensive application called SAP.
The SAP system is organized into some sets of 'solutions' (essentially, modules) that comprehend the information requires of specified regions of any corporation's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these several solution 'talk' to each other in a cohesive mode.
There is a saying, "If you fail to plan, you are actually planning to fail". Consequently, a good starting point for interpreting SAP is it's Project System which treats all activity within the corporation as division of numerous project. Set on occurrent orders (or perceived demand), this module is applied define projects that will execute these orders and start chasing them from then on. A regular project would include a mix of various manufacturing actions as well as whatsoever related procurement (raw materials as well as bought-out items). Chasing every such project right from inception, through to it's completion and beyond (post-project analysis) is aptly dealt by this module.
For project actions that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the store floor. This includes handling data on the accessibility and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which manages preventive maintenance, breakdown maintenance along with the related down-time of equipment and lost hrs of the work-force as well as the time, material and labor required for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to check a) Timely delivery of stuffs and b) Reduced cost of inventory. Its range goes with material requisitions (based on Bills of Material emanating from production programs as well as for unintentional purchases) and tracks them from placing orders to receipt of goods, their acquiring inspection (quality control), their being needed into stock and being subsequently issued for production. This module also handles finished-goods inventory.
The Costing module interfaces with each entity that has a money value affiliated with it. It takes into consideration the different cost-centers and all the associated costs : equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain set prices accurately ) as well as activity-based costing which is regarded more scientific and provides for cross-functional sharing of each of the drivers of these prices.
The Sales and Distribution module tracks all transactions from inquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of basic books of accounts, keeps the General Ledger and all defined sub-ledgers, consolidates all this into the ultimate books of accounts (essentially, Profit & Loss account and the Balance Sheet), addresses tax-related transactions/adjustments and interfaces with book closure. By The Way, most of this is of a statutory nature and gets implemented with the country-specific picks of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lifetimes with regard to their depreciation (and, consequently their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, really overlaps all another procedures and interfaces with each one of them throughout the lifetime of the corporation. Quality, they say is never by chance; it's always by design. That is why this module is practiced to facilitate all activities that make quality into the corporation's products/services (preventing defects/errors occurring in the 1st place). This is done by planning (essentially, incorporating preventive measures in the corporation's work-flow), fulfilling these quality programmes and leading periodic inspections to find out deviations, if any. Important to the company's icon and credibility in the outside world, are actions that result to the several applicable certifications obtaining which is also addressed in effect by this module
This was a uncomplicated view of a very comprehensive application called SAP.
About the Author:
Do you want to know what is sap and how it can improve your business process? Then visit UltimateSAP for the full training system on every SAP module including sap abap, R/3, DB, BASIS and more...
Posts
No comments:
Post a Comment