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PRACTICAL: 2 AIM: case study: Introduction to ERP and SAP R/3.
Introduction:
ERP is software driven business management system that helps to integrate all functions of a business including planning, manufacturing sales and marketing.ERP aimed at helping the manufacturing for setting better business practices and equipping them with correct info for taking timely decisions.ERP initially targeted the manufacturing industry and deal with functions such as planning and managing businesses like sales management, production management, accounting finances. SAP is the world's largest enterprise software company and the world's third-largest independent software supplier overall. R/3 is scalable and highly suited for many types and sizes of organizations. SAP R/3 runs on several databases Oracle, ADABAS D, Informix, DB2 for UNIX, DB2/400, Microsoft's SQL Server 6.0. ERP consists of common global processes and systems integrated across all business units. With SAP R/3, all units like Manufacturing, Order Management, and Product Delivery are linked together across business units with greater speed, accuracy, and service to the customers with utmost satisfaction. A key outcome from SAP R/3 implementation will be more robust processes which in turn increase the Operating Excellence and also help in facilitating easier integration of new businesses and acquisitions. A sample like SAP R/3 process helps in generating invoices that are easier to read and understand.
SAP R/3 integrates many application and some to name are:

Financial applications Distribution applications Human resources applications Manufacturing applications Indeed, so broad is SAP R/3 that it offers virtually every common business application needed by a typical enterprise. SAP R/3's applications are modules. They can be used either alone or combined with other solutions. The integration capability of these applications increases the benefits derived for any company. Some of them are namely: Materials Management: MM optimizes all purchasing processes, helps in accurate inventory and warehouse management and so on. Production Planning and Control: This helps in the management of all process and all types of manufacturing like assemble-to-order production, supply chain management and so on.
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Sales & Distribution: This helps in all sales and distribution activities namely pricing, on-time delivery, profitability analysis and so on. Financial Accounting: This module helps in gathering all accounting information and documenting and thereby helps in producing a report and information that can be used for analysis and control and planning. Controlling: This helps in the control of complete controlling system, internal process of company and so on. Payroll Accounting: This helps in centralizing the payroll process and helps in giving a global view and maintaining the data securely. Organizational Management: This helps in giving an accurate picture of organization structure and also helps in cost planning even in the individual level.
Characteristics:

Packaged software Integrate the majority of businesss processes Use a data warehouse Allow access to data in real time
Modularity:
Most systems are modular to permit automating some functions but not others. Some common modules, such as finance and accounting, are adopted by nearly all users; others such as human resource management are not. For example, a service company probably has no need for a manufacturing module. Other companies already have a system that they believe to be adequate. Generally speaking, the greater the number of modules selected, the greater the integration benefits, but also the greater the costs, risks and changes involved.
Advantages:

ERP allows easier global integration. ERP provides real time information, reducing the possibility of redundancy errors. ERP may create a more efficient work environment for employee. SAPs R/3 is very versatile as, it will operate on six different platforms. SAPs R/3 is available in 14 different languages. SAPs R/3 provides for a single data entry point where the data entered from any location is instantly sent to all other appropriate modules in the ERP system.
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Disadvantages:

Customization is problematic. ERP can cost more than less integrated and/or less comprehensive solution. High switching cost increase vendor negotiating power. Extensive training requirement takes resources from daily dependencies.
Company Name: Barden Corporation

Barden is a part of the German FAG Kugelfiscergroup and make high precision bearings for applications such as high precision machine tool spindles, aerospace and other very demanding applications. Barden had just implemented the SAP R/3, during the first week of October 1998. R/3 is the market leading Enterprise Resource Planning (ERP) software from the German company SAP. Following the implementation course, Barden draw up an education programme to achieve the necessary level of understanding. The project then became the implementation of a new and better way to plan the business using the software as the tool rather than just the implementation of new software. In the first phase of education, 30 people out of a total payroll of 250 attended one or more of our courses. A significant factor in this successful implementation was that Barden did more than the minimum education on both the Business Excellence principles as well as the SAP R/3 software. The revised, more realistic, time scale was another significant factor in their successful implementation. R/3 would convert to the customer and supplier numbers at the system boundaries. Another nice feature of SAP R/3 is that it was able to maintain the old part number in a different field. Once they had implemented SAP, they could use the standard SAP report on the reduced number of suppliers. Transferring data into a package as complex as SAP R/3 is never easy or quick. Barden now have bills of material and routings over 99% accurate. This was a key factor in getting everyone using the common database at all level within the business, a key component of Business Excellence. The ease of use of SAP R/3 was a factor here.
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08/IT/53

PRACTICAL: 2 AIM: case study: Introduction to ERP and SAP R/3.

SAP R/3 integrates many application and some to name are:

Company Name: Barden Corporation

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