An ERP system is a real-time business supporting system that provides to the data requires of an entire company using a single repository of data points (a database) and a very sophisticated set of highly-customizable software modules which, together, facilitate decision-making and the actions located on these decisions. This invariably consequences in extremely efficient operations and a resultant competitive reward. SAP, developed by SAP AG, based in Walldorf, Germany, is 1 such proprietary ERP system.
The SAP system is organized into whatever sets of 'solutions' (essentially, modules) that speak the information demands of special regions of any corporation's operations. Set on top of these already-integrated personalized modules is the Cross-Application layer, components of which farther see that these different result 'talk' to each other in a cohesive manner.
There is a saying, "If you fail to plan, you are actually planning to fail". Hence, a well introductory point for visualizing SAP is its Project System which deals all activity within the company as division of some project. Placed on occurrent orders (or perceived demand), this module is practiced define projects that will accomplish these orders and start going after them from then on. A regular project would take on a mix of various manufacturing actions as well as whatever associated procurement (raw materials as well as bought-out items). Going After each of such project right from inception, through to its completion and beyond (post-project analysis) is capably addressed by this module.
For project actions that refer to manufacturing, the Production Planning module handles the specifics of capability planning, production scheduling down to the individual 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 list a few.
With streamlined production occurs Plant Maintenance which addresses 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 verify a) Timely delivery of stuffs and b) Reduced cost of inventory. Its scope goes with material requisitions (based on Bills of Material emanating from production programmes as well as for unplanned purchases) and tracks them from placing orders to receipt of commodities, their acquiring inspection (quality control), their being needed into stock and being subsequently published for production. This module also handles finished-goods inventory.
The Costing module interfaces with each entity that has a money value associated with it. It takes into thoughtfulness the several cost-centers and each of the linked 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 treat certain fixed prices accurately ) as well as activity-based costing which is thought more scientific and allows for cross-functional sharing 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 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, holds 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), manages tax-related transactions/adjustments and interfaces with book closure. Accidentally, most of this is of a statutory nature and gets implemented with the country-specific selections of SAP.
Asset Management is used for chasing after assets from the time they are purchased, right through their life-time with regard to their depreciation (and, so their latest valuation) to the point they are either traded or wrote off.
The Quality Management module, along with the Project System, actually overlaps all another functions and interfaces with each one of them throughout the lifetime of the corporation. Quality, they say is never by chance; it is always by design. That is why this module is used to facilitate all activities that build quality into the organisation's products/services (preventing defects/errors taking place in the first place). This is complete by preparation (essentially, incorporating preventive steps in the organisation's work-flow), fulfilling these quality programs and leading periodic inspections to determine deviations, if several. Important to the company's image and credibility in the outside universe, are actions that leave to the several applicable certifications acquiring which is also managed in effect by this module
This was a simplistic view of a very comprehensive application called SAP. - 16069
The SAP system is organized into whatever sets of 'solutions' (essentially, modules) that speak the information demands of special regions of any corporation's operations. Set on top of these already-integrated personalized modules is the Cross-Application layer, components of which farther see that these different result 'talk' to each other in a cohesive manner.
There is a saying, "If you fail to plan, you are actually planning to fail". Hence, a well introductory point for visualizing SAP is its Project System which deals all activity within the company as division of some project. Placed on occurrent orders (or perceived demand), this module is practiced define projects that will accomplish these orders and start going after them from then on. A regular project would take on a mix of various manufacturing actions as well as whatever associated procurement (raw materials as well as bought-out items). Going After each of such project right from inception, through to its completion and beyond (post-project analysis) is capably addressed by this module.
For project actions that refer to manufacturing, the Production Planning module handles the specifics of capability planning, production scheduling down to the individual 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 list a few.
With streamlined production occurs Plant Maintenance which addresses 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 verify a) Timely delivery of stuffs and b) Reduced cost of inventory. Its scope goes with material requisitions (based on Bills of Material emanating from production programmes as well as for unplanned purchases) and tracks them from placing orders to receipt of commodities, their acquiring inspection (quality control), their being needed into stock and being subsequently published for production. This module also handles finished-goods inventory.
The Costing module interfaces with each entity that has a money value associated with it. It takes into thoughtfulness the several cost-centers and each of the linked 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 treat certain fixed prices accurately ) as well as activity-based costing which is thought more scientific and allows for cross-functional sharing 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 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, holds 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), manages tax-related transactions/adjustments and interfaces with book closure. Accidentally, most of this is of a statutory nature and gets implemented with the country-specific selections of SAP.
Asset Management is used for chasing after assets from the time they are purchased, right through their life-time with regard to their depreciation (and, so their latest valuation) to the point they are either traded or wrote off.
The Quality Management module, along with the Project System, actually overlaps all another functions and interfaces with each one of them throughout the lifetime of the corporation. Quality, they say is never by chance; it is always by design. That is why this module is used to facilitate all activities that build quality into the organisation's products/services (preventing defects/errors taking place in the first place). This is complete by preparation (essentially, incorporating preventive steps in the organisation's work-flow), fulfilling these quality programs and leading periodic inspections to determine deviations, if several. Important to the company's image and credibility in the outside universe, are actions that leave to the several applicable certifications acquiring which is also managed in effect by this module
This was a simplistic view of a very comprehensive application called SAP. - 16069
About the Author:
Do you want to know how much do sap consultants make? Visit Ultimate SAP to learn about SAP and download sap r 3 tutorials free download.
