An ERP system is a real-time business support system that caters to the data needs of an entire company using a sole repository of informations (a database) and a really high-tech set of highly-customizable software modules which, together, ease decision-making and the actions based on these decisions. This invariably outcomes in extremely capable procedures and a resultant competitive reward. SAP, prepared by SAP AG, based in Walldorf, Germany, is one such copyrighted ERP system.
The SAP system is organised into some sets of 'solutions' (essentially, modules) that comprehend the info wants of limited areas of any corporation's processes. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these various solution 'talk' to each other in a cohesive style.
There is a saying, "If you fail to plan, you are actually planning to fail". Thus, a right start aim for understanding SAP is it's Project System which deals each action within the company as part of numerous project. Settled on actual orders (or perceived demand), this module is applied define projects that will meet these orders and begin tracking them from then on. A normal project would include a mix of different manufacturing actions as well as whatever affiliated procurement (raw materials as well as bought-out items). Chasing After every such project right from inception, through to its completion and beyond (post-project analysis) is competently managed by this module.
For project actions that concern to manufacturing, the Production Planning module treats the specifics of capacity planning, production scheduling down to the personalized tasks on the shop floor. This takes on 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 gets Plant Maintenance which treats preventive maintenance, breakdown maintenance along with the associated down-time of tools and lost hours of the work-force as well as the time, material and labor involved for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to see a) Timely delivery of materials and b) Reduced price of inventory. It's range starts 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 receiving inspection (quality control), their being taken into stock and being subsequently published for production. This module also treats finished-goods inventory.
The Costing module interfaces with each entity that has a cash value affiliated with it. It gets into consideration the several cost-centers and all the related prices : equipment, material, labor and services. The same makes true for the profit centers. This costing module has a provision for product-based costing (which could fail to manage certain prepared costs accurately ) as well as activity-based costing which is well-advised more scientific and supplies for cross-functional dealing of all the drivers of these costs.
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 primary books of accounts, keeps the General Ledger and every last defined sub-ledgers, consolidates all this into the ultimate books of accounts (essentially, Profit & Loss account and the Balance Sheet), deals tax-related transactions/adjustments and interfaces with book closure. Accidentally, most of this is of a statutory nature and gets applied with the country-specific choices of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lives with regard to their depreciation (and, thus their current valuation) to the point they are either traded or wrote off.
The Quality Management module, along with the Project System, really overlaps all other procedures and interfaces with every 1 of them throughout the lifetime of the organization. Quality, they say is never by chance; it is always by innovation. That is why this module is applied to facilitate all activities that construct quality into the organization's products/services (preventing defects/errors taking place in the 1st place). This is done by planning (essentially, incorporating preventive steps in the organization's work-flow), performing these quality programs and dealing periodic inspections to detect deviations, if several. Important to the company's icon and credibility in the outside universe, are actions that result to the several applicable certifications getting which is likewise handled effectively by this module
This was a simplex view of a very extensive application called SAP.
The SAP system is organised into some sets of 'solutions' (essentially, modules) that comprehend the info wants of limited areas of any corporation's processes. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these various solution 'talk' to each other in a cohesive style.
There is a saying, "If you fail to plan, you are actually planning to fail". Thus, a right start aim for understanding SAP is it's Project System which deals each action within the company as part of numerous project. Settled on actual orders (or perceived demand), this module is applied define projects that will meet these orders and begin tracking them from then on. A normal project would include a mix of different manufacturing actions as well as whatever affiliated procurement (raw materials as well as bought-out items). Chasing After every such project right from inception, through to its completion and beyond (post-project analysis) is competently managed by this module.
For project actions that concern to manufacturing, the Production Planning module treats the specifics of capacity planning, production scheduling down to the personalized tasks on the shop floor. This takes on 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 gets Plant Maintenance which treats preventive maintenance, breakdown maintenance along with the associated down-time of tools and lost hours of the work-force as well as the time, material and labor involved for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to see a) Timely delivery of materials and b) Reduced price of inventory. It's range starts 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 receiving inspection (quality control), their being taken into stock and being subsequently published for production. This module also treats finished-goods inventory.
The Costing module interfaces with each entity that has a cash value affiliated with it. It gets into consideration the several cost-centers and all the related prices : equipment, material, labor and services. The same makes true for the profit centers. This costing module has a provision for product-based costing (which could fail to manage certain prepared costs accurately ) as well as activity-based costing which is well-advised more scientific and supplies for cross-functional dealing of all the drivers of these costs.
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 primary books of accounts, keeps the General Ledger and every last defined sub-ledgers, consolidates all this into the ultimate books of accounts (essentially, Profit & Loss account and the Balance Sheet), deals tax-related transactions/adjustments and interfaces with book closure. Accidentally, most of this is of a statutory nature and gets applied with the country-specific choices of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lives with regard to their depreciation (and, thus their current valuation) to the point they are either traded or wrote off.
The Quality Management module, along with the Project System, really overlaps all other procedures and interfaces with every 1 of them throughout the lifetime of the organization. Quality, they say is never by chance; it is always by innovation. That is why this module is applied to facilitate all activities that construct quality into the organization's products/services (preventing defects/errors taking place in the 1st place). This is done by planning (essentially, incorporating preventive steps in the organization's work-flow), performing these quality programs and dealing periodic inspections to detect deviations, if several. Important to the company's icon and credibility in the outside universe, are actions that result to the several applicable certifications getting which is likewise handled effectively by this module
This was a simplex view of a very extensive application called SAP.
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