Complete Picture eERP Ebuz (Compatibility Mode)

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E- Commerce Cost Efficient Integration with External & Internal Partners
V K Kamath
Prof V K Kamath We School Bayer 1
Development of E - Commerce
Emails mostly point to point connections Emails over internet Static Web Pages advertisements etc Real Time Web Pages One way traffic Real Time On Line - Interactive Web pages Integration with ERP eBusiness Integration with any/ all systems eCommerce (essentially addresses all Service Industries
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Web Technology Development - E-Business
Emerged with the development of Java language web technologies Now .Net, Visual basic, J2EE etc Cost Effective because thin client is used Accessibility from anywhere Instantaneous data upload Helps avoid physical catalogue printing Data and Knowledge available to all communities Data & Knowledge available all 24 hrs, 365 days Prof V K Kamath We School Bayer
Internal Integration of Different Business Processes

SD MM AM PP ERP Solution Business Processes QM OC PM HR IS PS FA CO
Critical success Prof V K Kamath We School Bayer Factor for E-Commerce/ E-Business
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Manufacturing
HR System
Quality Mgmt
Human Factor
Sales & Distribution
Accounts
Service Management
Up to 1994
Purchase
Project Management
Finance
Customer
Vendor
Internal Integration
1995 - 1999
eFinance eGovernance 2000 - 2001 eCRM ePayment
eSRM eProcurement ePayment
Internal Integration + Limited External Integration
Middleware System Integration

2001 onward Document Management Systems / Data Acquisition Systems/ Devices Systems/ CAD & CAM and Other Business Critical Applications
Internal Integration + Significant External Integration
Prof V K Kamath We School Bayer
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2 3 4 5 6 7 8 9
Electronic Commerce is buying and selling of products and services over Electronic media It is Electronic Data Interchange (EDI) Exclusive use of Internet for facilitating Data Interchange Security systems is of Utmost importance Electronic Data Interchange could be (a) Web Based or (b) Web Enabled It has Internet Application components It has Internet Application server It has Web Pages In short, we can make a Paperless office
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10 When used along with ERP systems, we derive

11 12 13 14 15 maximum Business Benefits When coupled with ERP systems, we have a Nth Tier Architecture in the background Web enabled architecture does the user authentication at the client end Web Based Architecture does user Authentication at the Application server end These Applications were developed to integrate a single Customer to a single Suppliers in a seamless manner. Avoids placing a Sales order or a Purchase order using conventional means of Paper and Pencil (hard copy exchange). Instead this purpose is served by Data Interchange through Electronic media. One also receives the acknowledgement as well.
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These Capabilities were enhanced to create a Virtual Market Places. 17 Virtual Market Places would mean that Vendors could display their Products and Services through Electronic means on a Host Server. Customers could visit these Host servers and could scan prospective Suppliers and conduct Business. 18 These Host servers are known as Portals. One can have Portals for Trading purpose or for Knowledge Management. 19 Use of Portals like Google for search and Knowledge are very popular 20 When one conducts Business through Net (Ecommerce), the vendors need to display their Goods and services on the Host Servers. This is called Content Management
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This Content Management is maintained by the Host Server persons. The Vendor pays Annual Maintenance Charges. 22 The Vendors need to be registered on these Portals. There is a nominal Charge for Registration. 23 The Vendors have to pay a Transaction fee when a Purchase order is placed through this system. 24 The Big Revenue for Portals is from Advertisements that get placed on these portals.
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In Portals we create a community of vendors and customers across the Globe. The success of the Portals is judged by the number of defined Vendors & Suppliers (registered), volume of Business in Millions of $ earned through Commissions on the Purchase orders placed through the system. In cases where there are defined Customers and Vendors on a long term Relationships, one need not use Portals. One can make the IT systems at both ends Talk to each other. This makes a Paperless office system. It was anticipated that the Business Travel would reduce with the advent of Internet. However, the travel has increased significantly since the Business Decision making cycle has significantly reduced.
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With the internet systems, there is a drastic reduction in paper or document travel or movement from One Place to another or use of paper. 30 Documents delivery has now become instantaneous. This gives us enough time to discuss business issues. 31 Whether one utilizes Portals or a direct internet connectivity between Vendors and Customers, the Procurement or Sales cycles have reduced significantly 32 One can conduct all the business processes through use of Internet technologies 33 Pioneers in B2B portals are CommerceOne & Ariba Prof V K Kamath We School Bayer 11
34 CommerceOne was the most successful amongst the two. 35 Both failed miserably since they lacked Business Model for revenue generation, customers were afraid of security robustness etc 36 Dot Com bubble burst in 1999 was a major reason for collapse of these 2 great Portals. 37 The Portal Business failed but the technology was fully exploited by all individual customers and Vendors to complete their business cycles. This was completed by directly interacting with each others systems. There by establish a paperless office initially..
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Value Proposition
Digital Economy Business at Speed of Light Competition is Keener than before Look out for Strategic Advantages Business needs to convert every Event into Opportunity Open door at every knock Imperative to reduce Costs in a perpetual manner Improve Efficiencies to increase Profits & increase Market Share
Extend your reach both in Buying and Selling through partnership with efficient Business Partners
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Improve your Buying Process

Conduct your Complex & Time consuming Buying process On-Line Include Sourcing of Materials & Services, Tedious Payment Processes, Controls & Conviniences Maximize your advantages for Supply Chain Processes This On-Line procurement process capabilities bestows great advantage for STRATEGIC BUYING. Without this technological support, very little time was devoted to this
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Benefits of On-Line Buying

One comprehensive suite for sourcing materials, integrating Logistics, processing payments with other critical processes. Complete Control enables your Business to monitor, capture, automate & refine every stage of buying process
Saves upto 15% on MRO (Maintenance, Repairs & Operations) Saves as much as 70% on purchse transaction costs Saves from 70% to 100% on purchase orders, invoicing etc per document Lower product costs throufgh enhanced contract pricing leverage during supplier negotiations Substantial reduction in processing time Reverse Auctions & On-line tendering widens purchasing processes
Benefits of On-Line Buying

Complete Control enables your Business to monitor, capture, automate & refine every stage of buying process
Reduction in cycle times to delivery less inventories & inventory carrying costs Enables efficient business analysis and improves business profitability Intefration with ERP & Legacy systems Rapid resources deployment
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Improve Procurement Processes On-Line

Tactical Procurement
Specify
Draw up program of requirements Analysis of spend categories Establish criteria for supplier selection
Select
Research supplier marketplace Send RFI & RFQs Assess suppliers against defined matrix Assess quotations Select suppliers
Contract
Negotiation of terms with suppliers Sign contracts
Improve Procurement Processes On-Line Operational Procurement

Order
Initiate requisition Approve requisitions Place & expedite PO Track order & Deliveries Initiate Financing & settlements
Monitor
Review supplier performance Collect data on company spending
Service
Prepare contract revisions Keep track of and schedule routine maintenance
Prof V K Kamath We School Bayer V K Kamath
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Improving Selling Processes

More Customers, Sales Growth & Better Customer Intelligence Shorter Sales Cycle Tapping into a wider pool of customers on Global Trading Web Managing and Fulfilling orders more efficiently Enhancing stronger existing customer base & growing it further Excellent analytics for what if analysis Immense cost reduction and efficiencies Improved response time. Broadens options through innovative offerings Complete control on Finish goods inventory Improved product life cycle management
Improving Selling Processes

Immense reduction in paper and administrative work Efficient cycle time management from requisition to payment Quick reach to customers through Call centers & Service centers Elimination of non value added activities High degree of data integrity Integration with payment gateways Adequate security on Net transactions
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Enhancing Selling Processes

Collaborate with Trading Partners
Management of Supply Chain System Accurate & continuous monitoring of Supply Chain system Supply & Demand management with help of trading partners Tools to track and evaluate customers buying patterns Partnerships with logistics partners for reliability
Create your own Market Place

Create market leadership Create communities and link with global counterparts Cost reduction on account of economies of scale Global reach through the global trading web Paperless office Quick access and excellent response time
Case Study Electronic Industry
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Electronic Industry Challenges to address

Things move very fast Critical success factors: Speed, direct access to all supply chain partners, Collaborative Solutions with Stakeholders Co-ordinate product sourcing Facilitate bills of Material Accurate forecast Get on-line information on Production requirements & replenishments on day by day basis across global markets Understand all pain points in Supply Chain management Stream liningthe complex processes of bringing electronic products to Marketplace Execution of business transactions on secured web services/ services providers
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Electronic Industry Supply Chain pain points

Product Development
Shorter Product Development cycles Cost efficiency Innovations Dynamism Flexibility Time to market Process disconnect Lack of integrated planning Lack of decision support Lack of visibility Maverick buying Inability to coordinate across CEMs Inability to tap into Larger supplier base due to lack of structured content
Procurement
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Supply Chain Planning
Competitive Prices Reliability Shorter lead times Real time visibility into companies systems
Sales & Marketing

Streamlining Demand creation across multiple sales channels Matching demand creation with multi-enterprise supply
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Order Promising & Logistics
Performing real time evaluation of all supply chain constraints Offering pre-sales fulfillment information & options Committing to accurate delivery dates Sourcing multiple items from diseparate suppliers & delivering Balancing customer service with net landed costs Real time visibility into order status Manage demand variability with supply availibilty Detecting and managing exceptions in high velocity/ high volume environments Globalization Channel complexities More demanding customers Faster product life cycles Reverse logistics
Service Planning & Scheduling
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E-Business Services Offerings

Supply Chain Collaboration Design Collaboration Maintenance, Repairs & Operations Request for Quotation Direct Material Procurement Auctions Spot Buying Quality Assurance Checks on Suppliers Inventory Management Services Financial Settlement Services

Supply Chain Collaboration
Supply Chain Planning
Helps planning for all types of Constraints Strategic Planning examines future locates optimally located plants, capacities, best distribution centers for target markets Demand Management estimates & manages supplies/demand Supply planning matches available supplies with demand Production planning & Scheduling planning with finite capacities what, when, where, how, by whom.
Order Management
Strategic Sourcing links procurement to design & Supply Chains Supply Chain execution links trading partners in Supply Chain Sources optimal sourcing strategy for commodities/ supplies Contract negotiation power to negotiate effectively Purchase planning power to plan collaboratively for timing & Qty Streamlined Order Management - smoothening/ shortening order Mgt Prof V K Kamath We School Bayer 28
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Design Collaboration
Design Collaboration Enables real time sharing of design and specifications with functional and assembly simulation capabilities. Design Manager useful in new design : developmental costs, eliminate redundancies in suppliers and parts. Design Planner focus on maximizing revenue, market share, product margins by optimizing product mix & Life cycle management decisions. .
Maintenance, Repairs & Operations These are best addressed by doing on line trading of standard goods & services at a virtual matrketplace Request for Quotation
Create requests in online method Track email notifications to/ from suppliers Correspond on line with suppliers

Direct Material Procurement Use of unified traditional EDIs EDI over the internet, RosettaNett & WEeb based EDI, EDI interfaces directly with back end ERP systems & maximizes the power of inhouse applications Procure over the Intranet or function as a service provider Auctions Effective on line Austion and Reverse auction transactions vis internet Suppliers & Buyers are alike able to find each other easily. Spot Buying Buyers ans Sellers retain their autonomy whilst negotiation of price, quantuty and timeto meet aggregate demand & supply Used by companies that need flexible inventory mgt Examples:Analog devices, ASIC parts, logic chips, diodes, transistorsand switches For sellers, this offers a good opportunity to liquiidate inventories For buyers, it helps quick spot buying of urgencies to meet sales targets, prototype building and an opportunity to buy quick;ly at an attractive prices Prof place 30 Open and scalable market V K Kamath We School Bayer
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Quality Assurance Checks on Suppliers

Strategic partnerships with QC related vendors across globe available easily Covers suppliers, buyers, distributors as part of Supply Chain management Peace of mind when transacting valuable goods and services with third party as well. Inventory Management Services Takes care of what, when and how much to stock in a ever changing market of electronic components Keeps u informed on obsolete components Real time on line global visibility Dynamic setting on max min stock levels Automatic generation of notifications to vendors and 3rd party Detailed reports on all types of materials and their status
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Shipment Logistics Track and- Trace Services
Different facets of Logistics is integrated Gives seamless visbility on what is happening Shipping information Exchange Track and Trace at any time anywhere Freight management and interface with banks and finalial institution Integration with other logistic partners and freight forwarding agents Integartion with the material handling of delicate parts, dangerous materials, explosives etc
Financial Settlement Services

Linking with banks and financial institutions with payment gateways
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PLANT MAINTENANCE
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Need for Plant Maintenance
Technical Assets Main functions are - Inspection - Preventive Maintenance - Repair
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PM - Organization Structure CLIENT

Co. Code
PLANNING PLANT PLANNING PLANT
PLANT1
PLANT2
PLANT3
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Contents of a Functional Location
Functional location master record

Location data PM data Multilingual texts Equipment usage Classification Documents
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PM - Functional Locations
PLANT1
INDUSTRIAL
DECORATIVE
OTHERS
RESIN
ADMIN. OFFICE
D.G. ROOM
GODOWN
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INDUSTRIAL
HIGH SPEED DISPENSOR AREA
RM GODOWN
BEADMILL
SANDMILL AREA
CHILLING PLANT
BM 1
BM 2
BM 3
MOTOR
GEAR BOX
STARTER
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Contents of an Equipment Master Record
Equipment master record

General data Location data PM data
Multilingual texts Internal note Equipment usage Classification Documents

Gear Box
Fixed Assembly
Moving Assembly
Gear Box Body
Gear oil
Bearing Housing
Gear
Bearings
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Object Links
Connections between Technical Objects - Analyzing Malfunctions - Preventive Maintenance What will be affected What should be shutdown E.g. Utility Cooling Water Pump
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Machine 1 Machine 2 Cooling Pump Machine 3 Machine 4 Machine 5

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PM Work Centers
Central Workshop
Electrical Technicians
Mechanical Fitters
D.G. Operators
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Maintenance Task List Structure

Task list header
Strategy, maintenance planning group, work center, equipment Work center, description, time, control key, external processing data, maintenance packages Operation, time, work center, description, control key Quantity, BOM item, item category, quantity unit
Operation Sub-operation
Material Maintenance resources

Maintenance packages
Quantity, category
Allocation of maintenance packages

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Elements in Maintenance Planning

Maintenance Strategy Maintenance Plan Maintenance Order
MAINTENANCE STRATEGY MAINTENANCE PACKAGES: -Time based -Performance based - Counter based
MAINTENANCE SCHEDULE
SCHEDULED CALLS
MAINTENANCE ITEMS
MAINTENANCE ORDERS
-FUNCT LOCATIONS -EQUIPMENT -ASSEMBLIES
ACTIVITIES: -Equipment Tasklists -Function Loc. Tasklists -General Tasklists
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Process Flow in PM
Direct order creation PM Planning (Maintenance and inspection releases) PM Reqts./ Notifications (Malfunction reports)
PM Organization
Plants PM Planner Work Centers (Workshops) Capacities
PM Orders
Resources
Material
PM Objects
Functional Locations Equipment Assemblies
Internal Services
External Services
Completion Information
PM History Downtimes Costs .... Prof V K Kamath We School Bayer
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Planning & Scheduling

Notifications Material Availability Stock Reservations Purchase Requisitions Requisition to Purch. Order
Create Maint. Orders
Planned Maintenance Order
Release the Maint. Order
Schedule the Maint. Order 1. Manual 2. Automatic
Emergency Demand
Special Tools
Special Instructions
Delivery Schedule of Material/Services Material Reservations
PP/ PM
Capacity Demand (Labor)
Safety Considerations
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Maintenance Order Functions

Materials Capacity planning Operations Work centers Object list BOM Task list Costs External processing
Planning
Objects
Shop papers Material issue Purchase orders
Execution
Goods receipt Invoice receipt Completion confirmation
Cost center Asset
Settlement
Project Order 48
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Structure of a PM Notification
Notification date/time/reported by description PM object: functional location equipment assembly location data account assignment data breakdown/availability data Notification items damage location damage cause of damage
Activities
activity performed by
Maintenance tasks
dates task description

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Maintenance Processing Cycle
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PM Overview Diagram
Master Data Pre-defined work steps Notifications Create Work Orders Emergencies Preventive/Predictive Maint. WOs Parts/Supplies External Services Material Requisitions
Reporting
Planned Work Orders
Schedule WOs
Close and Settle WO
Labor
Special Tools
Shop Papers
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Equipment
Cost
People
Vendor
Parts
Notifications
Plants Supplies
Maintenance Orders
Repair Steps
Special Tools
Factory Calendar Prof V K Kamath We School Bayer
Locations
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Maintenance History
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Maintenance Information Analysis
Equipment breakdown Maintenance cost Like equipment analysis MTTB
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Plant Maintenance - Benefits
Provides up to date cost figures for better maintenance decision making Real time information flows between PM and other systems Integration between PM system and other systems such as human resources, purchasing, payables, and payroll etc. Eliminates the need to pull data from difference systems for reporting purposes Lower software maintenance cost Lower software implementation cost
Enterprise wide Maintenance System

Benefits Facilitates the centralization of Maint. Operations for multiple plants Facilitates the consolidation and reduction of Maint. spare parts Provides consistencies in Maint. operations Provides real time feedback of Maint. Cost data to company financials system Eliminates the manual efforts involved in reporting Maint. cost to corporate financials Reduces the effort involved in Maint. Analysis across plants/units We School Bayer Prof V K Kamath 56
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Materials Management
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Purchasing
MRP Purchase Requisition User Department
Purchase Department
Outline/Quota agreement exists
yes
no
Send Request for Quotation to vendors with aid of source list
Assign and Process PR, Create P.O automatically
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Purchasing
Receipt of Quotations & Entry of quotation in system
Price comparison list
Vendor Selection with aid of Vendor Evaluation module
Release of Purchase Order as per Release Procedure
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Goods Receipt
Material arrives at the gate
no
Material returned back to Supplier P.Order exists for material received ?
yes
Material sent to Quality Inspection
no
Is Quality & QTY within defined limits
Stock & G/L updated
Goods receipt posted

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Goods Issue
Goods Issue requisition from User dept Goods Issue requirement from Production order
Goods Issue posted & Material Issued
Material cost to receiving Cost center/Asset/ Order/ G/L
Stock value and quantity updated
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Invoice Verification
Receipt of invoice in purchasing Invoice Verification with ref to P.O/ GR/ Service or without ref.
IS Value O.K ?
no
Send invoice Back to Supplier
yes
Posting of Invoice P.O History and G/L updated Release of payment by FI Dept
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Organization Structure - MM
Company Code Plant 1 Plant 2
Storage Location 1
Storage Location 2
Storage Location 3
Storage Type 001
Warehouse
Storage Type 002 Storage Bin 05-04-03 Storage Bin 05-04-04

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Purchasing Organization Client C1
Company Code
CC1
CC2
Purchasing Orgn.
P1
P2
P3
Plant Purchasing Group
2 PG1 PG2
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SD MM
FA CO AM
PP
ERP Solution Business Processes PS
QM OC PM HR IS
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Process Chain - MM
User Department
Purchase
MRP
FI For Invoice
RM / PM Stores
QM Department
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Main functions Purchasing Inventory Management Invoice Verification Material Valuation Vendor Evaluation External Service Management
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Purchasing - Master Records Material Master Vendor Master Purchasing Info-record Source List Quota Arrangement Service Master
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Procurement in Materials Management Determination of requirements Source determination Vendor Selection Purchase Order Processing Purchase Order Follow up Goods Receipt and Inventory Management Invoice Verification
Material Master Data Central source for materialspecific data Integration of all data in a single database object Eliminates redundant data storage
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What Information does the material Master contain
Accounting Materials planning control Purchasing Storage Forecasting Sales and Distribution Quality Management
Vendor Master Name Address Contact Person Currency Terms of Payment Represents an Account Payable Maintained by Purchasing & Accounts
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Purchasing Info-record
Material Master
Price, Source Determination
Vendor Master
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Purchasing Info-record
Current Price and Pricing conditions Information on Material and the Vendor supplying the material Availability period Vendor Evaluation Record Order Unit & Planned dely. time Tolerance Limits for over and under deliveries Number of last PO
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Source list
It specifies allowed sources of supply for a Material within a Plant Period for which source is Valid Definition of source as fixed / block
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Quota Arrangement
Material, Plant Procurement (in-house, external) Vendor Quota in % Lot size Max. release quantity
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Out line Agreements An outline agreement is a long term arrangement with a vendor regarding supply of materials Types of outline agreement a) Contracts b) Scheduling agreement Contract types a) Quantity b) Value
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Optimizing the Purchasing Process

Purchase requisition is assigned to a source automatically. Generate RFQs, Purchase orders and scheduling agreement delivery schedules from requisitions Generate purchase orders with source determination.
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Inventory Management
Manage Stocks on quantity & Value basis Planning, Enter and check Goods movement Carry out Physical Inventory
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Inventory Management in the ERP System
Financial Accounting Controlling Asset accounting
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Inventory Management
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Inventory Management Functions
Goods Receipt Goods Issue Reservations Physical Inventory
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Master Data --- Inventory Management

Material Master Data Material Types Units of Measure Stocks Batch Data Valuation Data Special Stocks Data
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Data Relevant for Inventory Management

Work scheduling Info for producing material e.g. production unit, delivery tolerances Accounting - Types of price control, valuation class MRP - Safety stock, availability stock, Reorder level Purchasing Delivery tolerances Quality Management - Indicator for goods receipt via quality inspection, sampling on percentage basis
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Material Type
Number Assignment Data in views Type of procurement Type of Inventory Management a)By value & Quantity b) By quantity only c) Neither by Quantity nor by value Ex. Raw, Semi-finished, Finished, Trading, Stock, Non-stock, Packaging, Pipeline
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Types of Stocks
Total Valuated Stock Unrestricted Use stock Stock in Quality Inspection Blocked Stock Restricted- Use- Stock Stock in Transfer Reserved Stock Negative Stock
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Special Stocks
Stock at Vendor (Sub-contracting) Consignment Stock Returnable Packaging Sales Order Stock Project Stock
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Material Valuation
Price Control - Standard, Moving Average Split Valuation Procurement Origin Status (Old or New) Batch Quality Revaluation
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Special Procurement Types

Consignment Subcontracting Stock Transfer via Stock transport order Third-Party Processing Returnable transport packaging Pipe line handling
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MM Inventory Sampling
Area of Inventory Sampling Method of Inventory Sampling
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Entering invoices and credit memos Checking the accuracy of invoices with respect to contents, prices and calculation Executing the accounting postings resulting from an invoice Updating data in the SAP system e.g material prices Checking invoices that were blocked because they varied from that of P.O Preliminary Posting Release of blocked invoices
External Services Management

Service Master Database Planned Services Unplanned Services Service Entry Sheet Acceptance of Services performed Checking and approving invoices submitted by vendors for services performed Monitoring the performance of services
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Vendor Evaluation
Overall score Main criteria e.g Price,Quality,Delivery, General support/services , External service, Max no of main criteria :99 Sub criteria e.g. Price level, Price history, Goods receipt,quality audit etc Max no of sub-criteria : 20 Scoring Range Weighting of scores
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Production Planning
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Need for Production Planning
1 Elimination of routine tasks for the persons responsible for production scheduling
2 Functions of PP: * Production Planning * Production Execution
* Production Control
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Organization Structure - Prodn Planning
Client
Company Code Planning Plant Planning Plant
Plant 1
Plant 2
Plant 3
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Organization Structure Prod Plng
Planning Plant
Work Centre
Planner Group
MRP Controller
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PP - BD Basic Data for Production 1 2 3 4 Materials Type BOM Work Centres Routings
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Bill of Material
1 2 3 4 5 Simple BOM Variant BOM Multiple BOM One time BOM Configurable BOM
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PP - SOP Sales & Operations Planning 1 2 3 4 5 Product Groups Forecasting - via interfaces with MM, SD, and PIS (Purchasing Info System) Sales Plan Production Plan Dis-aggregation of Sales & Production Plans
SOP Planning Features 1 2 3 4 5 6 Consistent Planning Level by Level Planning Delta Planning Planning Types and Macros Events Transferring SOP data to other applications
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PP - Master Planning
1 Identification of Schedule Items, Resources reqd., start and finish times 2 Demand Management 3 Planning with and without Final Assembly 4 Selection of Planning & Production strategy 5 Production Strategies - Made-to-order, Made-tostock, Make in lots etc.
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Planning Strategies 1 Make-to-Stock Production 2 Production by Lot Size for Sales and Stock Orders 3 Planning with Final Assembly 4 Planning Without Final Assembly 5 Planning with Planning Material 6 Planning at Assembly Level / Planning at Phantom Assembly Level
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Planning Strategies
1 2 3 4 Make-to-Order Production Make-to-Order Production with Configuration Make-to-Order Production for Material Variants Planning Material Variants Without Final Assembly 5 Planning Material Variants Using Planning Materials
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PP - MRP Material Reqments Planning

1 Method of planning is based on exception reporting (Matl whose stock has changed) 2 Consumption based planning including reorder point planning and forecast based planning & MRP for each production plant 3 Lot-Sizing - Lot-for-lot, Fixed lot size, Replenishment upto maximum stock level specified in material master
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PP - CRP Capacity Reqmts Planning

1 Deals with capacity categories at a W.C and available capacity to meet the loads 2`Scheduling at rough-cut level is carried out using order floats, tear down time, setup time, interoperation time etc. 3 Capacity available at a W.C can be plotted on time axis to show capacity availability 4 Cap. Req. calculations on basis of planned and production orders.
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Elements of Capacity Evaluation 1 2 3 4 Available Capacity Scheduling Capacity Requirements Capacity Load Reduction
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PP - SFC Shop Floor Control 1 Order Creation 2 Order Processing 3 Order Completion 4`Order Settlement
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Product Costing 1 Product Costing with Quantity Structure 2 Product Costing without Quantity Structure 3 Cost of Goods Manufactured
direct material costs material overhead direct production costs production overhead special production costs
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Product Costing 1 Cost of Goods Sold

cost of goods manufactured sales and administration costs
Results of Product Costing used in:

Variance calculation Scrap calculation WIP calculation
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Product Costing
1 2 3 4 5 6 7 8 Contribution margin accounting Material valuation Calculation of cost of goods manufactured Stock valuation Sales and Distribution Price setting Profitability analysis Configured materials
112
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SAP SALES & DISTRIBUTION

Organizational Structure
SD-FI Integration Company Code FI Legal Entity
Sales Organization 1 SD Legal Entity
Sales Organization2 SD Legal Entity
Sales Organization 3 SD Legal Entity
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SD Structure Sales Organization Type title here
Distribution Channel 1
Distribution Channel 2 Type title here
Distribution Channel 3 Type title here
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SD Stucture Sales Organization
Division 1
Division 2
Division 3
116
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Sales Area
Sales Organization 1
Distribution Channel1
Distribution Channel 2
Division 1
Division 2
Division 1
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Sales Structure Sales Area 1
Sales Office 1 Sales Grp 1 Sales Employees Sales Employees Sales Grp 2
Sales Office 2 Sales Grp 2
Sales Office 3
118
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SD-FI-MM Integration Company Code
Sales Organization 1 Highest Orgn. Unit of SD
Plant 1 Highest Orgn. Unit of MM
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SD-MM Integration Sales Organization 1 Distribution channel 1
Plant 1
120
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Shipping Stucture Plant 1
Shipping Point 1
Shipping Point 2
Storage Location 1
Storage Location 2
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Documentation Flow
Sales Cycle (Document Flow):
Enquiry Quotation Sales Contract / Schedule Agreement Sales Order / Release Order Delivery Document Shipments Billing Document
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Sales Agreements
Contract
Rate Contract Quantity contract Service contract Rental Contract Create Release Orders
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Sales Agreements
Schedule Agreements Create Deliveries
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Sales Document Structure

Header Level
Partner Function Pricing Assignment of Org. Units
Item Level
Item Categories Schedule Line Categories Pricing / Partner Function / Org. Unit Assgnt.
Wrt. Sales Area / Sale Offices / Sales Group

Document Functions
Actual Processes
Enquiry / Quotation: Probability of Order Passes the x% requirement to MRP Credit Check (Dynamic)
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Document Functions
Actual Processes:
Sales Order
Automatic Pricing Availability Check Passes requirement to MRP Credit Check (Dynamic / Static) Delivery Scheduling Route / Plant / Shipping Point Determination
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Document Functions
Actual Processes
Delivery Document:
Shipping Point is the major organizational unit Picking Location Determination Picking Packing Shipments Grouping of Delivery / Collective Shipment Goods Issue
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Document Functions
Actual Processes
Billing Document:
Generates Invoice / Collective Invoice / Split Invoice Generates Credit Memo / Debit Memo / Cancellation Document Account Assignment Milestone Billing / Periodic Billing WRT Sales / Delivery document
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Customer Master Record

With Ref. To Sales Area and Company Code General, Co. Code and SD Data General Data: Address, Unloading Pts., Contact Person, Control Data etc. Co. Code Data: Finance related info SD Data: Sales, Shipping, billing, O/P, Partner Fn.
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Material Master Record

With Ref. To Plant, Storage Location, Sales Organization Basic, Sale and Material related data Basic Data: Physical Dimension, Description, Net Weight, Gross Weight, Material Grp etc. Sales Data: Division, Plant, Loading Grp, Transportation Grp, Account Assignment Grp, Shipping Cond. etc Material Data: Storage cond, Costing, Stock Value, MRP Data etc.
Pricing
Pricing Elements
Basic Price Discounts Freight Taxes
132
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Pricing Processes
Field Catalogues Condition Tables Access Sequence Condition Type Condition Record
Validity Period Scales
Pricing Procedure Exclusion Group Pricing Reports Pricing Agreements:

Rebate Agreements Promotions / Sales Deal
Return Process
Create Return Order wrt. Sales Order / Without reference to any Doc. Create Return Delivery and Goods Issue to update Stock Create Free of Cost Sales Order WRT Return Order - Replacement Create Credit Memo Request Create Credit Memo
67
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Partner Function
Sale - to - Party Ship - to - Party Bill - to - Party Payer Employee Responsible Account Groups Partner Determination
Output Determination
Output Type / Medium of Output Assignment O/P Determination Procedure to Account Group Assignment O/P to Partner Function or Organizational Unit
136
68
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Special Business Processes

Consignment Stock Make - to - Order Configurable Product Third Party Orders Service Management Batch Management
Sales Information Structure
138
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Sales Information System

4Information Structures 4Characteristics 4Key figures 4Updating rules 4Standard Analysis 4Flexible Analysis 4Early Warning System 4Planning 4forecasting
139
Delivery Scheduling
Material Availability Date Transportation Planning Time Loading Time Pick Pack Time Transit Time
140
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Transportation Scheduling
Route Determination depends on:
Transportation Group Weight Group Shipping Condition Transportation Zone
141
142
71

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1/22/2011

E- Commerce Cost Efficient Integration with External & Internal Partners

Web Technology Development - E-Business

Internal Integration of Different Business Processes

Sales & Distribution

eFinance eGovernance 2000 - 2001 eCRM ePayment

eSRM eProcurement ePayment

Internal Integration + Limited External Integration

Middleware System Integration

Internal Integration + Significant External Integration

Prof V K Kamath We School Bayer

Prof V K Kamath We School Bayer

10 When used along with ERP systems, we derive

Prof V K Kamath We School Bayer

Prof V K Kamath We School Bayer

Improve your Buying Process

Prof V K Kamath We School Bayer

Benefits of On-Line Buying

Benefits of On-Line Buying

Improve Procurement Processes On-Line

Improve Procurement Processes On-Line Operational Procurement

Prof V K Kamath We School Bayer V K Kamath

Improving Selling Processes

Improving Selling Processes

Enhancing Selling Processes

Create your own Market Place

Case Study Electronic Industry

Prof V K Kamath We School Bayer

Electronic Industry Challenges to address

Prof V K Kamath We School Bayer

Electronic Industry Supply Chain pain points

Electronic Industry Supply Chain pain points

Sales & Marketing

Prof V K Kamath We School Bayer

Electronic Industry Supply Chain pain points

Service Planning & Scheduling

Prof V K Kamath We School Bayer

E-Business Services Offerings

E-Business Services Offerings

E-Business Services Offerings

E-Business Services Offerings

E-Business Services Offerings

Quality Assurance Checks on Suppliers

Prof V K Kamath We School Bayer

E-Business Services Offerings

Financial Settlement Services

Prof V K Kamath We School Bayer

Need for Plant Maintenance

Technical Assets Main functions are - Inspection - Preventive Maintenance - Repair

Prof V K Kamath We School Bayer

PM - Organization Structure CLIENT

Prof V K Kamath We School Bayer

Contents of a Functional Location

Functional location master record

Prof V K Kamath We School Bayer

Prof V K Kamath We School Bayer

Contents of an Equipment Master Record

Equipment master record

Multilingual texts Internal note Equipment usage Classification Documents

Gear Box Body

Prof V K Kamath We School Bayer

Prof V K Kamath We School Bayer