An ERP system is a real-time business support system that caters to the information demands of the whole corporation using a single deposit of data points (a database) and a very sophisticated set of highly-customizable software modules which, together, help decision-making and the activities established on these decisions. This invariably consequences in extremely effective procedures and a resultant competitive reward. SAP, prepared by SAP AG, situated in Walldorf, Germany, is 1 such branded ERP system.
The SAP system is arranged into different sets of 'solutions' (essentially, modules) that address the info requires of special fields of any company's processes. Set on top of these already-integrated personalized modules is the Cross-Application layer, components of which further learn that these various result 'talk' to each other in a cohesive fashion.
There is a saying, "If you fail to plan, you are actually planning to fail". Hence, a right starting point for interpreting SAP is it's Project System which deals each activity within the organization as part of several project. Settled on occurrent orders (or perceived demand), this module is practiced specify projects that will accomplish these orders and begin chasing after them from then on. A normal project would take on a combination of different manufacturing activities as well as whatever linked procurement (raw materials as well as bought-out items). Tracking each of such project right from inception, through to it's completion and beyond (post-project analysis) is ably dealt by this module.
For project activities that link up to manufacturing, the Production Planning module handles the particulars of capacity planning, production scheduling down to the individual jobs on the store floor. This takes on handling data on the availability and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production occurs Plant Maintenance which deals preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hrs of the work-force as well as the time, material and labor necessary 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 every entity that has a money value affiliated with it. It takes into consideration the various cost-centers and all the related costs : equipment, material, labor and services. The comparable holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to manage particular fixed prices accurately ) as well as activity-based costing which is thought more scientific and supplies for cross-functional dealing of each of the drivers of these costs.
The Sales and Distribution module tracks all proceedings from enquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods stock (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, maintains the General Ledger and every defined sub-ledgers, consolidates all this into the final books of accounts (essentially, Profit & Loss account and the Balance Sheet), manages tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and gets implemented with the country-specific options 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, in reality overlaps all some other procedures and interfaces with all one of them throughout the lifetime of the organization. Quality, they say is never by chance; it's always by design. That is why this module is used to facilitate all actions that make quality into the company's products/services (preventing defects/errors happening in the 1st place). This is complete by planning (essentially, incorporating preventive steps in the organization's work-flow), fulfilling these quality programs and conducting periodic inspections to find out deviations, if any. Important to the company's image and credibility in the outside universe, are activities that take to the several applicable certifications obtaining which is likewise handled effectively by this module
This was a simplistic point of a very general application called SAP. - 15634
The SAP system is arranged into different sets of 'solutions' (essentially, modules) that address the info requires of special fields of any company's processes. Set on top of these already-integrated personalized modules is the Cross-Application layer, components of which further learn that these various result 'talk' to each other in a cohesive fashion.
There is a saying, "If you fail to plan, you are actually planning to fail". Hence, a right starting point for interpreting SAP is it's Project System which deals each activity within the organization as part of several project. Settled on occurrent orders (or perceived demand), this module is practiced specify projects that will accomplish these orders and begin chasing after them from then on. A normal project would take on a combination of different manufacturing activities as well as whatever linked procurement (raw materials as well as bought-out items). Tracking each of such project right from inception, through to it's completion and beyond (post-project analysis) is ably dealt by this module.
For project activities that link up to manufacturing, the Production Planning module handles the particulars of capacity planning, production scheduling down to the individual jobs on the store floor. This takes on handling data on the availability and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production occurs Plant Maintenance which deals preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hrs of the work-force as well as the time, material and labor necessary 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 every entity that has a money value affiliated with it. It takes into consideration the various cost-centers and all the related costs : equipment, material, labor and services. The comparable holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to manage particular fixed prices accurately ) as well as activity-based costing which is thought more scientific and supplies for cross-functional dealing of each of the drivers of these costs.
The Sales and Distribution module tracks all proceedings from enquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods stock (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, maintains the General Ledger and every defined sub-ledgers, consolidates all this into the final books of accounts (essentially, Profit & Loss account and the Balance Sheet), manages tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and gets implemented with the country-specific options 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, in reality overlaps all some other procedures and interfaces with all one of them throughout the lifetime of the organization. Quality, they say is never by chance; it's always by design. That is why this module is used to facilitate all actions that make quality into the company's products/services (preventing defects/errors happening in the 1st place). This is complete by planning (essentially, incorporating preventive steps in the organization's work-flow), fulfilling these quality programs and conducting periodic inspections to find out deviations, if any. Important to the company's image and credibility in the outside universe, are activities that take to the several applicable certifications obtaining which is likewise handled effectively by this module
This was a simplistic point of a very general application called SAP. - 15634
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