SAP

INTRODUCTION TO SAP
SAP stands for “SYSTEMS,APPLICATIONS,PRODUCTS IN DATA PROCESSING”
SAP = BUSINESS
SAP is an ERP system by SAP AG, a company based in Walldorf, Germany. The various
products and modules offered by SAP ERP (Enterprise Resource Planning).enable
customers to perform day-to-day business processes, such as accounting, sales, production,
HR, and finance.
Sap provides various modules designed specifically for the needs of their clients. SAP
Modules are designed to focus on different processes including sales and services, sales
and distribution, financial management, business intelligence, human resources, and more.
SAP provides ERP (Enterprise Resource and Planning) Solutions and Services. It is a
market leader in providing ERP solutions.
SAP solutions include a number of functional modules, which support transactions to
execute key business processes.

SAP Application Modules

There are 2 Types of SAP ERP system Modules: Functional Modules and Technical
Modules. All SAP Modules integrate with each other with functionality and provide the best
solution for a Business.
Functional SAP ERP Modules:
 Human Resource Management (SAP HRM), also known as Human Resource (HR)
 Production Planning (SAP PP)
 Material Management (SAP MM)
 Warehouse Management (SAP WM)
 Financial Supply Chain Management (SAP FSCM)
 Sales and Distribution (SAP SD)
 Project System (SAP PS)
 Financial Accounting and Controlling (SAP FICO)
 Plant Maintenance (SAP PM)
 Quality Management (SAP QM)
Technical SAP ERP Modules:
 SAP Basis
 SAP Security
 Advanced Business Application Programming (SAP ABAP)
 High Performance Analytic Appliance (SAP HANA)
 SAP NetWeaver
 Information Systems Management (SAP IS)
 Customer Relationship Management (SAP CRM Technical module)
 Exchange Infrastructure (SAP XI)
 SAP Solution Manager

Advantages of SAP :
 SAP is a Real Time system
 It has multiple products
 It is an integrated system
 It is robust
 It has the best global approach
 Legal/audit
 It can be customized

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Which industries use SAP?
Manufacturing, Life Science, Distribution, Technical and Business Services are the top
industries that use SAP Business ByDesign, but healthcare, energy, education,
telecommunications, finance and retail also heavily use it and many more.

What is OEM, and how SAP helps OEM?

OEM stands for original equipment manufacturer. In the business world, this means a
company that makes a product to be sold by another company under its own name. For
example, an OEM computer manufacturer might make computers for a brand like Dell or
Lenovo, who then sell the products under their own brand [Link] the original equipment
manufacturer (OEM) and owner of service parts planning (SPP), you can plan the stock of
selected customers and dealers. In this way, you can support these customers and dealers
in optimizing their procurement planning and stock situation.

EXAMPLE:
A OEM car manufacturer namely TOYOTA/TATA is wanting to make a car,to manufacture
the same it needs many different parts and products which is obtained from Tier 1 supplier.
There are several Tier 1 supplier which will provide sub assembly of any part/product. To
complete the subassembly it will require parts from Tier 2 supplier and Tier 2 will require the
same from Tier 3 supplier. To accomplish this long procedure it will take a long time and
labour. SAP helps the same and overcomes the problems by doing all the work in fraction of
seconds and keeping all the record

Different OEM companies in India

 India Yamaha Motor Private Limited.
 Honda Motorcycle And Scooter India Pvt Ltd.
 Mahindra & Mahindra Limited.
 Ashok Leyland Limited.
 Atul Auto Limited.
 Bajaj Auto Limited.
 Force Motors Limited.

What are different types of Tier Suppliers ?

Tier 1 Suppliers are your direct suppliers. Tier 2 suppliers are your suppliers' suppliers or
companies that subcontract to your direct suppliers. Tier 3 suppliers are the suppliers or
subcontractors of your tier 2 suppliers.
1. OEM END PRODUCT
2. TIER 1 The final step before the product reached the OEM
SUPPLIER Strong credibility with the OEM;
More technical advantages;
Produce individual components or complete devices.
3. TIER 2 Manufacturer of individual components of the end product.
SUPPLIER
4. TIER 3 Manufacturer of individual parts that is required in the
SUPPLIER OEM's components.

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SAP WM
The SAP warehouse management system "WM" provides flexible and automated support in
handling all movement of goods and inventory management in your warehouse complex.
The system supports the planned and efficient handling of all logistics processes in your
warehouse. This includes receiving and organizing warehouse space, scheduling labor,
managing inventory and fulfilling orders.

The SAP warehouse management module offers adaptable, effective,

automated support that lets your company:
- control intricate warehouse architecture
- establish and maintain storage bins and spaces in the warehouse.
- oversee a variety of storage options, including high rack storage, block storage, and fixed
bin storage
- complete all pertinent postings and transactions, including general stock transfers,
merchandise issues, and merchandise receipts.
- track stock price changes
- carry out stock placements and removals while utilising various put-away and picking
techniques.
- handle stock discrepancies
- Control dangerous materials
- Make use of bar code scanners
- a connection to outside, non-SAP warehouse systems

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WAREHOUSE ORGANIZATION STRUCTURE

WAREHOUSE NUMBER

STORAGE TYPE STORAGE TYPE STORAGE TYPE

STORAGE SECTION STORAGE SECTION

STORAGE BIN STORAGE BIN

QUANT QUANT

Storage system in WM
Storage is the activity of storing products at warehouses and logistics [Link] role is to
provide a steady supply of goods to the market in order to bridge the time gap between
producers and [Link] also plays an important role in maintaining quality in
warehouses and logistics centers as well as product value.

Different types of storage

Storage system depends on different categories such as

STORAGE TYPES

STRUCTURE HANDLING ENVIRONMENT PROCESS RELATED

HIGH RACK PRIVATE COLD STORAGE MANUFACTURING

BASED

LOW RACK PUBLIC HOT STORAGE PACKAGING BASED

SHELF STORAGE GOVERNMENT

RACK

TPL

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STORAGE SECTION IN WM
Storage Sections are used to group together storage bins with similar features. These bins are used
for stock placement purposes. Within a storage type, a storage section is a series of storage bins with
the same features.
You can use the storage section as an organizational aid for putting away goods in the warehouse. If
you use storage types and storage sections, you must define the organizational aims clearly. The
physical location is the principal organizational factor. The use of storage sections in a storage type is
only mandatory if you use storage section control or storage section search in the storage type.

Example
Numerous storage bins of various sizes are typically used in high rack storage facilities. Low-level
bins are frequently larger in high-rack storage spaces because they are set aside for very massive
and heavy items. Higher level bins are smaller than lower level bins.A high-rack storage area divided
into two storage sections is shown in the accompanying diagram. You keep objects that move quickly
in the front storage area and slowly in the back.

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STORAGE BIN
The smallest spatial unit in a warehouse is the storage bin. The storage bin, then, stands in for the
precise location in the warehouse where things are or can be stored. A storage bin is frequently
referred to as a coordinate because the address of a storage bin is frequently taken from a coordinate
system

A. Inbound Process
 Goods Receiving
 Labelling (Product Identification)
 Counting (Scanning)
 Packing (POA) RM Quality Inspection
 Goods Receiving
 Putaway (Stock Placement)

B. Outbound Process
 Picklist Print
 Picking
 Packing (Secondry Packing)
 Packing Label/Shipping Label
 Goods Issue (PGI)
 Invoicing (Bill)
 Gate Out (after invoicing verification

C. Physhical Inventory

D. Internal process
 TO from TR
 Manual TO

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INTEGRATION OF WM-PP
(WAREHOUSE MANAGEMENT & PRODUCTION PLANNING)

Integration of WM-PP on Manufacturing based warehouse:

Here we can divide the warehouse depending upon the storing of goods or raw material,work in
process and finish goods or many more depending upon the function and facilities of the given
warehouse and production plan.

Example
We need to produce car mirrors of any particular company can say BMW,AUDI
We need to follow the steps.

WAREHOUSE TYPE RAW MATERIAL WORK IN PROCESS FINISHED GOODS

SAP NAME ROH HALB FERT

TYPE OF HRS PRODUCTION HRS

STORAGE/SECTION LRS SUPPLY AREA LRS
OPEN (PSA) OPEN

MATERIAL OR GRANUELS MOULDING MANUFACTURED

PROCEDURE GLASS GLASS MAKING MIRROR
PAINT PAINTING
ASSEMBLY
WAREHOUSE NO. 001-009 PSA 301-30X
101,102,103,104

Step 1. So to manufacture them we need raw material which will be first checked in the inventory ,if
we don’t have the required amount of raw material ,then material purchase order will be sent by
Internal Process and after receiving the raw material the same will be stored in the warehouse.
Step 2. Depending upon the production and manufacturing of the mirror PO will be generated and
confirmed and then Bill Of Material(BOM) will be issued and sent to the warehouse and by the internal
process the material will be sent to the PSA.
After manufacturing all the components assembly of the mirror will start
Step 3. After the assembly is done and Mirror is manufactured TO will be generated and sent to the
Finished Goods Warehouse and after receiving the TO mirrors will be transferred and stored in the
warehouse and depending upon the requirement of Sales further steps will come into consideration.

DEFINITIONS

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STAGING OF COMPONENT
The stock is blocked at the replenishment storage location after the system confirms that the transfer
is feasible. Transferring raw materials or semifinished products from the production site or the storage
area where the commodities were received to the assembly or manufacturing site.

ROUTING
It denotes a discussion to produce one or more work [Link] a route, operations and suboperations
are typically saved to represent the steps required to produce a Material.
Static, default, and dynamic are some of its types.

CONTROL CYCLE
It is utilised to specify for your plant the production storage bin where a specific material is to be
staged for production and with what staging style inside a production supply region.
A methodical procedure that constantly monitors, assesses, and modifies a system or process to
maintain the desired performance or state.

PRODUCTION SUPPLY AREA (PSA)

A location where products are staged or withdrawn during production or in the warehouse. A
warehouse needs to be aware of where it needs to transport things in order to stage them for a
production order. The PSA includes the data for production orders in the ERP system.

MAKE TO ORDER (PULL)

Make-to-order, or MTO, is a manufacturing technique where products are created from scratch after a
customer places an order. It is a supply chain management system of the "pull" variety, which means
that production is always initiated by real demand for goods in the form of consumer orders.

MAKE TO STOCK (PUSH)

Make-to-stock (MTS) is a manufacturing technique where production scheduling and planning are
based on anticipated demand for the product. Orders placed during one manufacturing period are
filled using products produced during the following production period.

WORK CENTER
Task list operations and work orders both employ work centres. Task lists include, but are not limited
to, routings, maintenance to-do lists, inspection plans, and common networks. Production, quality
control, facility maintenance, and the Project System as networks all need the creation of work orders.

Transfer Order (TO)

A transfer order is a document used to carry out the movement of items between storage units inside
a warehouse or from one warehouse site to another. The transfer order is executed in order to
manage the warehouse or process orders.

Transfer requirement (TR)

When performing a good receipt, an automated transfer requirement (TR) is created. The Warehouse
Senior User starts the transfer of products by creating a Transfer Order (TO).

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Production Order (PO)
An formal document expressing the expectations between the supplier and the buyer is a purchase
order (PO). With the use of a purchase order, you may specify what you're buying, how you want it
made, distributed, and handled.

Production Order Confirmation (PR)

Production Confirmation is a record of verified logistical process modifications that happen as a result
of a production process being carried out at a certain moment. The following adjustments are included
in this: Inventory. Plan modifications.

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