ĠSTANBUL KÜLTÜR UNIVERSITY
FACULTY OF ENGINEERING & ARCHITECTURE
DEPARTMENT OF INDUSTRIAL ENGINEERING
ERP SYSTEM
IMPLEMENTATION: A CASE
STUDY IN BEKO A.ġ.
Final Project
BAHAR YELKEN
9901020004
Supervisor: Asst.Prof.Dr. Zeki AYAĞ
June 2005
1
I would like to thank to both my advisor Asst.Prof.Dr. Zeki Ayağ, P.Eng. for helping
during my final project, Özgür Çetinoğlu and all personnel in BEKO A.ġ. for helping
during my final project.
2
TABLE OF CONTENTS
1.
LIST OF FIGURE ...................................................................................................................................5
2.
LIST OF TABLE .....................................................................................................................................6
3.
ABSTRACT .............................................................................................................................................7
4.
INTRODUCTION ...................................................................................................................................8
5.
LITERATURE REVIEW .......................................................................................................................9
6.
PRESENTATION OF THE MAIN RESEARCH TOPIC ................................................................. 14
6.1.
6.1.1
What is ERP? ................................................................................................................ 14
6.1.2
Evaluation of ERP ......................................................................................................... 16
6.1.3
Need for ERP................................................................................................................. 19
6.1.4
Features of ERP ............................................................................................................ 19
6.1.5
Benefits .......................................................................................................................... 20
6.1.6
Advantages of an ERP system ....................................................................................... 22
6.1.7
Components of ERP ...................................................................................................... 22
6.1.8
Suppliers of ERP ........................................................................................................... 22
6.1.9
The Future of ERP ........................................................................................................ 23
6.2.
7.
ERP ................................................................................................................................................ 14
SAP ................................................................................................................................................ 23
6.2.1
What is SAP? ................................................................................................................. 23
6.2.2
Competitors ................................................................................................................... 25
6.2.3
SAP Company Timeline ................................................................................................. 25
6.2.4
BENEFITS of SAP R/3 .................................................................................................. 25
6.2.5
System-Wide Features ................................................................................................... 26
6.2.6
SAP R/3 Structure ......................................................................................................... 27
6.2.7
SAP R/3 Architecture .................................................................................................... 39
6.3.
ERP IMPLEMENTATION............................................................................................................ 42
6.4.
SAP R/3 CUSTOM CONFİGURATİON & IMPLEMENTATİON .............................................................. 45
SAP IMPLEMENTATION IN BEKO A.ġ ......................................................................................... 50
7.1.1
History of BEKO A.Ş ..................................................................................................... 50
7.1.2
General information ...................................................................................................... 52
7.2.
ERP SELECTION AND PRE-IMPLEMENTATION SAP AT BEKO A.Ş .................................................. 53
7.2.1
Old system ..................................................................................................................... 53
7.2.2
Why SAP? ...................................................................................................................... 53
7.2.3
Determine requirement of SAP implementation ............................................................ 53
3
7.3.
SAP ROAD MAP .............................................................................................................................. 54
7.4.
IMPLEMENTATİON STRATEGY ......................................................................................................... 54
7.5.
GENERAL RISK AND SOLUTION ADVISE ........................................................................................... 54
7.6.
SAP IMPLEMENTATION STEP .......................................................................................................... 54
7.6.1
Success story and advises in implementation of BEKO................................................. 57
7.7.
SAP/3 SYSTEM OF BEKO ELECTRONIC A.Ş ................................................................................... 58
7.8.
ANALYSIS, CONCEPTUAL DESIGN AND CUSTOMIZING FOR USED MODULE IN BEKO ..................... 60
7.8.1
Organizational structure ............................................................................................... 60
7.8.2
Sales and Distribution ................................................................................................... 60
7.8.3
Material management ................................................................................................... 76
7.8.4
Production Planning ..................................................................................................... 98
7.8.5
Financial Accounting .................................................................................................. 108
7.8.6
Controlling .................................................................................................................. 112
7.8.7
Quality Management ................................................................................................... 122
7.9.
SPECIAL SOFTWARE FOR BEKO ELECTRONIC A.Ş ........................................................................ 126
7.10.
POST-IMPLEMENTATION ............................................................................................................... 128
7.10.1
Advise for post-implementation ................................................................................... 128
7.11.
UTILITY OF SAP AT BEKO .......................................................................................................... 128
7.12.
PROJECT COST .............................................................................................................................. 129
7.13.
FUTURE PLAN IN BEKO A.Ş ........................................................................................................ 130
8.
CONCLUSION .................................................................................................................................... 131
9.
REFERENCES AND BIBLIOGRAPH ............................................................................................. 132
10.
APPENDIXES ................................................................................................................................ 134
10.1.
DICTIONARY ................................................................................................................................. 134
10.2.
DEFINATION AND ASSIGN FOR CUSTOMIZING IN BEKO ORGANIZATIONAL
STRUCTURE ............................................................................................................................................ 139
10.2.1
Organization Structure Defination .............................................................................. 139
10.2.2
Asignment .................................................................................................................... 143
4
1. LIST OF FIGURE
Figure
Error!
Reference
source
not
found.:
Research
model……………………………………………………………………………………………………………...……..9
Figure 2.Change management strategic consideration...................................................................................................................................11
Figure 3: Integrated manufacturing strategy faramework..............................................................................................................................13
Figure 4: Business Process and SAP R/3 functionality……………………………………………………………..………………………28
Figure 5: SAP R/3 interface………………………………………………………………………………….……………………………..30
Figure 6: R/3 integration……………………………………………………………………………………………………….…………...32
Figure 7: Logical partition of R/3 into modules……………………………………………………………..……………………………...33
Figure 8: SAP R/3 module…………………………………………………………………………………..…………………………...…39
Figure 9: System Platforms Supported by R/3…………………………………………….……………..…………………………….......40
Figure 10: R/3 Applications and their Technological Basis............................................ ……………..……………………………...........40
Figure 11: Three-Tier Client/Server-Architecture of R/3..................................... ……………..……………………………......................42
Figure 12: R/3 User Groups and Views....................................................................... ……………..……………………………...............46
Figure 13: Concepts and Languages of the R/3 Repository............................................. ……………..……………………………..........47
Figure 14: Objects of the R/3 Repository ................................................................ ……………..……………………………..................47
Figure 15: SAP implementation step………………………………………………………..……………………………..................……57
Figure 16: Organizational Structure in SAP R/3…………………………………………..……………………………..................……..60
Figure 17: Sales organization (Customizing (SPRO-F5 or IMG))………………… ……..……………………………..................……...62
Figure 18: Distribution channel (customizing)…………………………………… ……..……………………………..................……….63
Figure 19: Sales partition……………………………………………………………..……………………………..................…………..64
Figure 20: SD scope………………………………………………………………………..……………………………..................……..65
Figure 21: Sales office …………………...………………………………………………..……………………………..................…......67
Figure 22: Sales group……………………………………………………………………..……………………………..................……..68
Figure 23: Shippment point……………………………………………………………..……………………………..................………..69
Figure 24: integration of SD …………………………………………………………..……………………………..................…………69
Figure 25: SD processes………………………………………………………………..……………………………..................………...70
Figure 26: Sales Order Document……………………………………………………..……………………………..................…………71
Figure 28: Storage lacation..................................................................................... ……..……………………………................................80
Figure 29: Pırchasing organization........................................................................... ……..……………………………..............................80
Figure 30: Pırchasing organization........................................................................... ……..……………………………..............................81
Figure 31: Account Vendor Group......................................................................... ……..……………………………................................82
Figure 32: Property group...................................................................................... ……..…………………………….................................83
Figure 33: Stock flow in BEKO.......................................................................... ……..……………………………...................................92
Figure 34: Statue of Storehouse in BEKO.............................................................. ……..……………………………...............................93
Figure 35: relations between SAP, MHR, TOTAL, and YAMAM………………………..……………………………..................……104
Figure 36: Requirement plan flow ……………………………………………………..……………………………..................……….106
figure 37: transfering process to Daifuku……………………………………………..……………………………..................………...107
Figure 38: Planning-flow in BEKO……………………………………………..……………………………..................………………107
Figure 39: CO integration…………………………………………………..……………………………..................…………………. 114
Figure 40: distribution of cost ………………………………………………………..……………………………..................…………117
Figure 41: Travel cost……………………………………………………………..……………………………..................…………….118
Figure 42: Standard cost accounting…………………………………………………..……………………………..................………...120
Figure 43: new product cost calculating…………………………………………..……………………………..................…………….120
Figure 44: Actual product cost………………………………………………………..……………………………..................…………120
Figure 45: CMK3 ……………………………………………………………………..……………………………..................………...121
Figure 46: KOBI ………………………………………………………………………..……………………………..................………122
Figure 47: ABAP (transaction SE38 ->SE80)…………………………………… ……..……………………………..................……... 128
Figure 48: distribution of project cost…………………………………………………..……………………………..................……… 131
5
2. LIST OF TABLE
Table 1: Companies of different sizes approach ERP implementations…………………13
6
3. ABSTRACT
Implementation of ERP effects project‘s cost and benefit in Companies. In this reason,
Implementation step is important for using ERP. There are many ERP software packages
that offer much benefit for componies.True selection of ERP, implementation effects
success of companies. SAP is used generally in very complex company structure which is a
market leader in ERP software package. So, cost/benefit ratio is effect by SAP
implementation that is costly.
This project offer resource of SAP implementation step and benefit in BEKO electronic
A.Ş.
7
4. INTRODUCTION
Enterprise resource planning (ERP) is too complex Information System. Basically, Using
of ERP provides to increase customer satisfaction, quality, productivity, market share and
decrease price, cost with data integrity.
If, firm doesn‘t use ERP, Various symptoms can be seen. These are:
 Increase inventory cost
 Much work-load
 Increase expense of enterprise
 Difficult capacity control








Loss customer and delay of delivery
Uncontrollable financial table
Unfollow enterprise performance
Spend Long time for delivery And Loss work
Spend long time for preparing proposal
Double record
Deficiency and delay of information flow. So, Decision is risky
Not see future
So, Firms need to ERP software package. Selection, Implementation of ERP is made as
true for taking all of these benefits. Results of many ERP implementations were
unsuccessful. This reason may be non-fit organization of ERP and using of false
implementation technique and strategy. Consequently, Implementation phase is very
important to success.
This project offers about information of ERP, SAP, implementation of ERP,
implementation of SAP and its benefits. And, SAP implementation and benefit of SAP was
researched BEKO electronic A.Ş.
8
5. LITERATURE REVIEW
Enterprise resource planning (ERP)systems are highly complex information systems. The
implementation of these systems is a difficult and high cost proposition that places
tremendous demands on corporate time and resources. Many ERP implementations have
been classified as failures because they did not achieve predetermined corporate goals [1]
Critical factors for successful ERP implementation [1]


Clear understanding of strategic goals
Commitment by top management







Excellent project management
Organizational change management
A great implementation team
Data accuracy
Extensive education and training
Focused performance measures
Multi-site issues
Erp implemantation success significantly depens on the organizational fit of ERP and
certain implementation contingencies
Figure Error! Reference source not found.: Research model [1]
Information technology/systems play a major role in improving the competitiveness of
organizations. There are numerous enterprise information software packages available in
the market. One of them is enterprise resource planning (ERP). ERP can provide
significant improvements in efficiency across a company, but only when implemented
correctly [2].
Pre-Implementation (planning) strategies :
9
• Incorporate the risk and quality management plans in the change management plan.
• Breakdown the project into natural phases or subsystems for modular planning and for
development of cross-functional communications.
• Consider a phase-based approach for gradual implementation rather than radical
approach.
• Use appropriate planning styles for different tasks, detailed task plans for tangible tasks,
iterative plans for evolving tasks, and personal communications plans for change
management.
• Prepare plans for the recruitment, selection, and training of the necessary personnel for
the project team [2]
Implementation strategies:
• Formulate a network for collecting user requirements and user feedback.
• Set-up monitoring and feedback network for collecting control information at each stage
of the implementation process.
• Prepare to handle expected or unexpected crises and deviations from plans.
• Provide a strong leadership with concerns for the welfare of people and resource
commitment.
• Provide a professionally stimulating work environment.
• Obtain top management support for the project and plan for an adequately resourced and
proficiently executed launch.
• Promote client consultation and user participation and obtain approval from parties for
what is being undertaken throughout the project.
• Use pro-active communications to establish more realistic expectations about the
technologies capabilities while communicating in tailored way to each division or unit.
• Promote collaborative system development between users and developers.
• Use multi-functional project teams to bring complementary capabilities together during
the total life of the project.
• Familiarize the staff about the incoming technology and train the people involve with the
system.
• Use intra-project teams and intra- and interindustry networking for technology transfer.
• Provide stakeholders with a detailed plan of the implementation process, explain how it
achieves business objectives, and keep them informed about the system and progress of its
implementation.
• Propose possible ways for restructuring personnel and systems to accommodate the new
technology including maximizing of system integration and interfacing. [2]
10
Post-implementation strategies: Post-implementation activities are critical for the
acceptance (adoption) of ERP systems. Requirements of IT systems and structures tend to
change continuously even after the completion of a project. Postproject evaluation strategy
could be followed in measuring the effectiveness of an ERP system, where questions such
as listed below could be used for further improvement:
• whether the objectives of the ERP system were realized fully;
• whether the scheme options were considered adequately;
• whether the estimates and project information were accurate;
• whether or not the agreed practices and techniques were complied with;
• any other factors which are considered appropriate. [2]
Figure 2.Change management strategic consideration [2]
One of the crucial requirements of global manufacturing strategy is the ability to optimise
the use of information technology. A methodology is proposed and used to identify and
implement an integrated manufacturing strategy which consists of two major horizons:
Enterprise Resources Planning (ERP) and a Real-Time Monitoring system (RTMS).
RTMS, which can provide up-to-date information for the planning and scheduling of
manufacturing orders, monitoring quality, improving communication and increasing
productivity, is implemented and is integrated with an ERP system. The architecture of the
ERP system is designed for a global manufacturing environment. The implementation was
designed with a Distributed Object-Oriented Technology (DOOT) which increases the
system scalability, configurability, flexibility and interoperability. The ERP is designed to
support real-time data collection and processing for all required production and inventory
11
analysis with a flexible architecture which can meet the distributed business
requirements.[3]
Figure 3: Integrated manufacturing strategy faramework [3]
Companies of different sizes approach ERP implementations differently across a range of
issues. Also, the benefits differ by company size. Larger companies report improvements in
financial measures whereas smaller companies report better performance in manufacturing
and logistics [4]
12
Table 1: Companies of different sizes approach ERP implementations[4]
13
6. PRESENTATION OF THE MAIN RESEARCH TOPIC
6.1. ERP
6.1.1
What is ERP?
Enterprise Resource Planning or ERP is an industry term for integrated, mute-module
application software packages that are designed to serve and support multiple business
functions. An ERP system can include software for manufacturing, order entry, accounts
receivable and payable, general ledger, purchasing, warehousing, transportation and human
resources. Evolving out of the manufacturing industry, ERP implies the use of packaged
software rather than proprietary software written by or for one customer. ERP modules
may be able to interface with an organization's own software with varying degrees of
effort, and, depending on the software, ERP modules may be alterable via the vendor's
proprietary tools as well as proprietary or standard programming languages. [9]
ERP is a business tool. Information Technology (IT) has always played a key role in
providing businesses a competitive edge. In the beginning, IT performed mainly financial
functions such as payroll, A/R, A/P, invoicing etc. and was used mainly as a reporting tool;
what have we done and did we make or lose money. [7]
Over time, IT has evolved. Its overall reporting capabilities have become awesome with the
surreal performances of computing power, and the refinement of software operating
systems and application packages today. This reduction of processing time together with
the proliferation of IT beyond financial functions and into sales and Marketing and
Manufacturing, have pushed IT from the strict business reporting realm to the much larger
and dynamic realm of business planning. In other words, the more the information was
accurate, available when needed, and applicable to the core areas of our businesses, the
more we could dynamically plan our strategies and make concrete business decisions from
it. This is where we started seeing concepts of Materials Requirement Planning (MRPII)
come into light which over the 80s evolved into Enterprise Resource Planning (ERP). IT
could no longer live in its own kingdom of data processing, it had become a business
processing and business emulation tool, and thereby had to create a solid bridge with the
business imperatives as its foundations. IT is in the midst of yet another change. This time
14
though we facing a revolution rather than an evolution. We are now fast approaching the
era of enterprise knowledge system. The combination of on-line/real-time information,
ERP (all enterprise and 100% accuracy of data), supply chain rapport (internal and external
links between all activities), e-commerce, and advanced planning and scheduling systems
are causing a revolution in transforming a reporting and planning tool into an intelligent
business execution tool.[7]
We see IT is seen as .a resource and not as expenditure. A lot of software companies and
client organizations see IT as an end in itself. While our vendors incorporate the latest in Ecommerce/internet, Java-client, WAN technologies etc., we strictly promote our systems as
a business tool. [7]
The current evolution of manufacturing resources planning (MRP and MRPII) systems.
ERP provides the foundation for integrating enterprise-wide information systems. These
systems will link all aspects of a company's operations including human resources,
financial planning, manufacturing, and distribution, as well as connect the organization to
its customers and suppliers. [7]
ERPS (Enterprise Resource Planning Systems) comprises of a commercial software
packages that promises the seamless integration of all the information flowing through the
company - financial, accounting, human resources, supply chain and customer information.
ERP Systems provide information management and analysis to organizations. [7]
Enterprise Resource Planning is the latest high end solution, information technology has
lent to business application. The ERP solutions seek to streamline and integrate operation
processes and information flows in the company to synergize the resources of an
organization namely men, material, money and machine through information. Initially
implementation of an ERP package was possible only for very large Multi National
Companies and Infrastructure Companies due to high cost involved. Today many
companies in India have gone in for implementation of ERP and it is expected in the near
future that 60% of the companies will be implementing one or the other ERP packages
since this will become a must for gaining competitive advantage. In the present business
environment, role of a Chartered Accountant is considered to be very important and
15
inevitable. Chartered Accountants as managers, consultants, advisors or auditors play an
important role in controlling, managing, and supporting the business.
As the business needs are very complex in nature, the implementation of an ERP package
needs Chartered Accountants with functional skills for evaluation, Business Process
Reengineering (BPR), Mapping of Business requirements, Report designing, ensuring
Business controls, customization of the package for the specific requirements,
Documentation etc.,
Sooner or later a Chartered Accountant without the knowledge of ERP may feel as if he is
a fish out of the bowl. By this article it is attempted to highlight various aspects of ERP and
specific areas of ERP that are relevant for Chartered Accountants. [5]
6.1.2
Evaluation of ERP
In the ever growing business environment the following demands are placed on the
industry:

Aggressive Cost control initiatives

Need to analyze costs / revenues on a product or customer basis

Flexibility to respond to changing business requirements

More informed management decision making

Changes in ways of doing business
Difficulty in getting accurate data, timely information and improper interface of the
complex natured business functions have been identified as the hurdles in the growth of
any business. Time and again depending upon the velocity of the growing business needs,
one or the other applications and planning systems have been introduced into the business
world for crossing these hurdles and for achieving the required growth. They are:

Management Information Systems (MIS)

Integrated Information Systems (IIS)

Executive Information Systems (EIS)

Corporate Information Systems (CIS)
16

Enterprise Wide Systems (EWS)

Material Resource Planning (MRP)

Manufacturing Resource Planning (MRP II)

Money Resource Planning (MRP III)
The latest planning tool added to the above list is Enterprise Resource Planning. [1]
The focus of manufacturing systems in the 1960's was on Inventory control. Most of the
software packages then (usually customized) were designed to handle inventory based on
traditional inventory concepts. In the 1970's the focus shifted to MRP (Material
Requirement Planning) systems that translated the Master Schedule built for the end items
into time-phased net requirements for the sub-assemblies, components and raw materials
planning and procurement. [10]
In the 1980's the concept of MRP-II (Manufacturing Resources Planning) evolved which
was an extension of MRP to shop floor and Distribution management activities. In the early
1990's, MRP-II was further extended to cover areas like Engineering, Finance, Human
Resources, Projects Management etc i.e. the complete gamut of activities within any
business enterprise. Hence, the term ERP (Enterprise Resource Planning) was coined. [8]
1960 Enterprise Resource Planning (ERP) is born in the early 1960s from a joint effort
between J.I. Case, the manufacturer of tractors and other construction machinery, and
partner IBM. Material Requirements Planning or MRP is the initial effort. This application
software serves as the method for planning and scheduling materials for complex
manufactured products
1970s Initial MRP solutions are big, clumsy and expensive. They require a large technical
staff to support the mainframe computers on which they run.
1972 Five engineers in Mannheim, Germany begin the company, SAP (Systemanalyse
und Programmentwicklung). The purpose in creating SAP is to produce and market
standard software for integrated business solutions.
1975 Richard Lawson, Bill Lawson, and business partner, John Cerullo begins Lawson
Software. The founders see the need for pre-packaged enterprise technology solutions as an
alternative to customized business software applications.
1976 In the manufacturing industry, MRP (Material Requirements Planning) becomes the
fundamental concept used in production management and control.
1977 Jack Thompson, Dan Gregory, and Ed McVaney form JD Edwards. Each founder
17
takes part of their name to create the company moniker. Larry Ellison begins Oracle
Corporation.
1978 Jan Baan begins The Baan Corporation to provide financial and administrative
consulting services.
1979 Oracle offers the first commercial SQL relational database management system.
1980 JD Edwards begins focusing on the IBM System/38 in the early 1980s. MRP
(Manufacturing Resources Planning) evolves into MRP-II as a more accessible extension
to shop floor and distribution management activities.
1981 Baan begins to use Unix as their main operating system.
1982 Baan delivers its first software product. JD Edwards focuses on the IBM System/38.
1983 Oracle offers both a VAX mode database as well as a database written entirely in C
(for portability).
1984 Baan shifts the focus of their development to manufacturing.
1985 JD Edwards is recognized as an industry-leading supplier of applications software for
the highly successful IBM AS/400 computer, a direct descendant of the System/38.
1987 PeopleSoft is founded by Dave Duffield and Ken Morris in 1987
1988 PeopleSoft's Human Resource Management System (HRMS) is developed.
1990 Baan software is rolled out to 35 countries through indirect sales channels. The term
ERP (Enterprise Resource Planning) is coined in the early 1990's when MRP-II is extended
to cover areas like Engineering, Finance, Human Resources, and Project Management.
1991 PeopleSoft sets up offices in Canada. This leads the way to their presence in Europe,
Asia, Africa, Central and South America, and the Pacific Rim.
1995 Baan grows to more than 1,800 customers worldwide and over 1,000 employees.
1999 JD Edwards has more than 4,700 customers with sites in over 100 countries. Oracle
has 41,000 customers worldwide (16,000 U.S.). PeopleSoft software is used by more than
50 percent of the human resources market. SAP is the world's largest inter-enterprise
software company and the world's fourth largest independent software supplier
overall. SAP employs over 20,500 people in more than 50 countries. To date, more than
2,800 of Baan's enterprise systems have been implemented at approximately 4,800 sites
around the world.
2000 and Beyond Most ERP systems are enhancing their products to become "Internet
Enabled'' so that customers worldwide can have direct access to the supplier's ERP system.
6.1.2.1 Differences between ERP and MRP II
MRP II is a management concept while ERP is its technical subset. Today, ERP is in
vogue, and is selling as there is a push from the ERP vendors to sell their software.
However, mere software implementation cannot be seen as a complete solution. The aim
18
should be to deploy IT for gaining business advantage. ERP is a mere subset of MRP II,
which is a company-wide management system aiming at lowering costs and inventories
and increasing productivity and customer service. While ERP can be implemented in
isolation, the complete benefit can only be gained if the entire re engineering process is
followed.
6.1.3
Need for ERP
Most organizations across the world have realized that in a rapidly changing environment,
it is impossible to create and maintain a custom designed software package which will cater
to all their requirements and also be completely up-to-date. Realizing the requirement of
user organizations some of the leading software companies had designed Enterprise
Resource Planning software which will offer an integrated software solution to all the
functions of an organization. [5]
By becoming the integrated information solution across the entire organization, ERP
systems allow companies to better understand their business. With ERP software,
companies can standardize business processes and more easily enact best practices. By
creating more efficient processes, companies can concentrate their efforts on serving their
customers and maximizing profit.
6.1.4
Features of ERP
Some of the major features of ERP and what ERP can do for the business system are as
below;

ERP facilitates company-wide Integrated Information System covering all
functional areas like Manufacturing, Selling and distribution, Payables,
Receivables, Inventory, Accounts, Human resources, Purchases etc.,

ERP performs core Corporate activities and increases customer service and thereby
augmenting the Corporate Image.

ERP bridges the information gap across the organization.

ERP provides for complete integration of Systems not only across the departments
19
in a company but also across the companies under the same management.

ERP is the only solution for better Project Management.

ERP allows automatic introduction of latest technologies like Electronic Fund
Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video
conferencing, E-Commerce etc.

ERP eliminates the most of the business problems like Material shortages,
Productivity enhancements, Customer service, Cash Management, Inventory
problems, Quality problems, Prompt delivery etc.,

ERP not only addresses the current requirements of the company but also provides
the opportunity of continually improving and refining business processes.

ERP provides business intelligence tools like Decision Support Systems (DSS),
Executive Information System (EIS), Reporting, Data Mining and Early Warning
Systems (Robots) for enabling people to make better decisions and thus improve
their business processes
6.1.5
Benefits
There are five major benefits of ERP;

On-line/real time information throughout all the functional areas of an organization.

Data standardization and accuracy across the enterprise.

Best-practices or optimized solutions are included in the applications.

Creates efficiencies that organizations would not otherwise have.

The analysis and reporting that can be used for long-term planning.[7]
Examples of ERP packages are HRMS, Financials, Manufacturing, Distribution,
and Sales. Each ERP Package may offer different functionality for different
industries.[7]
In implementation, ERP systems include several basic features. They are installed
on a Database Management System. Database platforms to chose from are:
DB2/400, DB2/MVS, DB2/Unix, Informix, MS SQL Server, Oracle, SQLBase, and
Sybase. They require initial setup according to the organization's process. They may
be customized according to the organization's process through the ERP's tool set.
20
Work flow can be setup to automate approval processes through chains of
command. Once installed, the user only enters data at one point, and the
information is transferred through processes to other modules. Finally, the ERP
system includes reporting tools for main reports as well as ad hoc reporting.[7]
ERP systems, fundamentally, integrate the different processes necessary in a business into
a centralized pool that facilitates data sharing and eliminates redundancy.[7]
The benefits accruing to any business enterprise on account of implementing are unlimited.
According to the companies like NIKE, DHL, Tektronix, Fujitsu, Millipore, Sun
Microsystems, following are some of the benefits they achieved by implementing ERP
packages;

Gives Accounts Payable personnel increased control of invoicing and payment
processing and thereby boosting their productivity and eliminating their reliance on
computer personnel for these operations.

Reduce paper documents by providing on-line formats for quickly entering and
retrieving information.

Improves timeliness of information by permitting, posting daily instead of monthly.

Greater accuracy of information with detailed content, better presentation, fully
satisfactory for the Auditors.

Improved Cost Control

Faster response and follow up on customers

More efficient cash collection, say, material reduction in delay in payments by
customers.

Better monitoring and quicker resolution of queries.

Enables quick response to change in business operations and market conditions.

Helps to achieve competitive advantage by improving its business process.

Improves supply-demand linkage with remote locations and branches in different
countries.

Provides a unified customer database usable by all applications.

Improves International operations by supporting a variety of tax structures,
invoicing schemes, multiple currencies, multiple period accounting and languages.
21

Improves information access and management throughout the enterprise.

Provides solution for problems like Y2K and Single Monitory Unit(SMU) or Euro
Currency.
6.1.6






Advantages of an ERP system
Information entered once into system
Forces use of the best practices
Allows customization
Based on reliable file structure
Provides functionality to interact with other elements in the process
Provides tools for ad hoc queries. [7]
6.1.7
Components of ERP
To enable the easy handling of the system the ERP has been divided into the following
Core subsystems:

Sales and Marketing

Master Scheduling

Material Requirement Planning

Capacity Requirement Planning

Bill of Materials

Purchasing

Shop floor control

Accounts Payable/Receivable

Logistics

Asset Management

Financial Accounting
6.1.8
Suppliers of ERP
There are many numbers of ERP suppliers who are very active in the market. Some of the
companies offering renowned international ERP products include:

Baan

CODA
22

D&B

IBM

JD Edwards

Marcarn

Oracle

Peoplesoft

Platinum

Ramco

SAP

SMI

Software 2000
The top five ERP vendors, SAP, Oracle Corporation, Peoplesoft, Inc., JD Edwards &
Company, and Baan International, account for 64 percent of total ERP market revenue.
These vendors continue to play a major role in shaping the landscape of new target
markets, with expanded product functionality, and higher penetration rates. [6]
6.1.9
The Future of ERP
Industry analysts expect that every major manufacturing company will buy the software,
which ranges in cost -- with maintenance and training -- from hundreds of thousands of
dollars for a small company to millions for a large company. AMR Research of Boston
says consolidation among the major players will continue and intensify. ERP vendors are
expected to put more effort into e-commerce, CRM and SCM initiatives, with leaders
redirecting between 50% and 75% of their R&D budget to these projects. [6]
According to Gartner research group, the rapid evolution of ERP has already lead to a new
corporate must-have, ERP II, which is supposed to help businesses gain more competitive
edge in the future. The major difference is that ERP II involves collaborative commerce,
which enables business partners from multiple companies to exchange information posted
on eCommerce exchanges. [7]
6.2. SAP
6.2.1
What is SAP?
SAP (Systems, Applications, and Products in Data Processing) is the leading Enterprise
23
Resource Planning software package. SAP was the first to integrate a corporation's
worldwide functions tightly into one application. Five former IBM programmers founded
SAP AG in Germany, and released the first version of their software, SAP R/2, in 1979. Its
domination of the market occurred during the 1980s, expanding first throughout Europe
(early 1980s) and then North America (1988). SAP R/3, an advanced, client-server based
version of the popular R/2 product, was released in 1992 and sparked a stunning takeover
of America's largest businesses — 44% of US companies were using it within five years of
its expansion.[12] In 1999, SAP introduced its newest major product upgrade. Named
mySAP.com to emphasize its shift to an e- business focus, mySAP.com builds on the
strengths of the SAP R/3 product in a fully Internet enabled architecture. MySAP.com also
incorporates SAP's newest business applications for CRM, Supply Chain Management
(SAP APO), and Data Warehousing (Business Information Warehouse or BW). Prior to the
introduction of mySAP.com, these applications had been incorporated as add-ons to SAP
R/3 and were known as New Dimension products. [13]
A Unique Software Approach
Companies both large and small traditionally utilized multiple software applications from
various vendors or developed their own applications in-house to process their critical
business transactions. Prior to the proliferation of SAP, most companies supported a full
staff of program developers who wrote their necessary business applications from scratch
or developed highly complicated interfaces to allow pre-packaged applications from
several vendors to pass data back and forth as necessary to complete any full cycle business
transaction. This process was extremely costly, time-consuming, and error prone. It also
made it very difficult for business managers and executives to get a timely, comprehensive
view of how their business was doing at any given time. SAP was the first and, to date, the
most successful company to integrate nearly all business processes into one software
solution for use in any business in any country in the world. Not only did SAP's
applications reduce the need for complex and redundant in-house development, but it also
created new business efficiencies by automating many tasks across a corporation and
incorporating business' best practices into each updated version of its software.
Using SAP's products, companies can now integrate their accounting, sales, distribution,
manufacturing, planning, purchasing, human resources, analysis and other transactions into
one application. SAP applications thus provide an environment where "transactions are
synchronized throughout the entire systems, meaning a sales-order entry triggers action's
within each application that relates and is relevant to the transaction." [14]
24
6.2.2
Competitors
Although SAP is recognized as the ERP market leader, several competitors have found
their footing in this arena. Oracle, perhaps SAP's most significant competitor, has set its
sites on SAP's prestigious ERP leadership position. Other competitors include PeopleSoft,
JD Edwards, and a range of mid-market ERP vendors who all provide similar packaged
ERP applications.
6.2.3
SAP Company Timeline
1972: SAP AG founded in Germany
1979: SAP R/2 introduced for mainframe computers
1980s: Europe and N. American expansion
1992: SAP R/3 released as client-server application
1996: SAP R/3 becomes partially Internet enabled
1997: Develops and launches New Dimension product line including CRM, SCM and Data
Warehousing solutions
1999: SAP announces mySAP.com, the next generation of its Enterprise Application
system based on Internet architecture [15]
6.2.4
BENEFITS of SAP R/3
6.2.4.1 Integration



Integrated Processes
o Operational. financial, and managerial principles are satisfied
simultaneously
o Common Database
Application Integration
o One point of data entry
o Consistency across all user applications
Technical Integration
o On-line interactive edit and update
o Elimination of redundant data\
o Data Integrity
6.2.4.2 Designed for all Types of Business


Provides a complete business solution across all business functions.
System addresses critical business processes and provides an enterprise-wide
solution:
25
o
o
o
One system supports global business and accounting practices.
Standardized business processes across the organization, yet tailoring by
individual business units is allowed.
Supports multiple business structures per business process to accommodate
differences between business units
6.2.4.3 Worldwide Usage






Comprehensive multi-currency translation
Multiple language support
Customized reporting and document generation for individual countries
Multi-company support
Local support in most major industrialized countries
Country specific functionality
6.2.4.4 Real-time processing

Transactions within system update the underlying databases immediately
6.2.4.5 Open System



R/3 allows the interplay and portability of applications, data and user interfaces
Based on international standards for interfaces, services and data formats
Architecture is aligned with recognized open systems standards
6.2.4.6 Flexibility






Customers can customize business modules to realize best business practices
System provides necessary interfaces to incorporate external software.
Scalability, accommodates acquisitions and growth
System can be configured the way you want to do business in the future
Allows customized screens processing and reports
System runs on multiple hardware platforms
6.2.5
System-Wide Features
SAP uses certain system wide features that should be understood at the outset. These are
used to logically, safely and flexibly organize the data in a business enterprise. [19]


Customizing-- is the configuring of the system to represent your organization's
legal structure, reporting requirements and business processes. Internal reporting is
a managerial tool in the daily operations. External reporting is required by
governmental units controlling the legal structure of the corporation, such as, the
IRS state taxing authorities, SEC etc.
Organizational Elements
26
o

Financial- client is a legal and organizationally independent unit at the highest
level in SAP
 company is an independent legal entity within a client
 business areas are used to produce profit and loss statements and
balanced sheets across marketing lines
o Materials Management
 Purchasing units
 Plants
o Sales and Distribution
 Sales Organization
 Distribution channel
 Division
Master Data is records that remain in the database over an extended period of time.
Examples:
o Customer Master
o Vendor Master
o Material master
o Account Master
This structure eliminates redundant data and is shared by all SAP Modules. It is a
critical aspect of the robustness of the system.




Employee Self Service--your employees have access to the own HR records over
the Internet.
Classification is the assignment of objects to a class. Each class has standard
characteristics.
Matchcodes are query tools used to find specific information using search methods.
Security is administered for objects, profiles and authorizations. Users are only
authorized to see or change the parts of the system required by their job
responsibilities.
6.2.6
SAP R/3 Structure
Business Processes and SAP Functionality
In order to understand a system like SAP a thorough understanding of the events and
relationships that take place in a business is required. It is not enough to just realize the
Sales, Production, Finance and Accounting have jobs to do in a business. The exact details
of each action, the timing of that action and its interrelationships with every other process
must be understood. In many large operations there may be no person that has a complete
grasp of the situation. Before an operation can be automated or computerized a thorough
study of the business must be undertaken. This task is called Business Process Engineering.
27
Figure 4: Business Process and SAP R/3 functionality
.
Sequential Walk Through

Sales
o
o


Pre-sales activity--planning and availability support for the sales personnel
Sales Order--The actual entry of the sales order into the system done by the
salesperson at the point of sales perhaps using a PC and Internet
connections.
o Determining where the most efficient source of the ordered product is in
inventory and shipping it.
o Delivery
o Customer Billing
o Customer Payment
Production
o Sales and Operations Planning SOP where the sales forecasts are used in a
production planning model to check feasibility.
o Master Production Scheduling MPS--The actual plan for the whole
production process
o Material Requirements Planning MRP--Where the production plan is
actually converted into raw materials input requirements.
o Planned Order--When materials are available and capacity exists this plan is
created and then converted into a
o Production Order.
o Shop Floor Control where the actual production takes place and is registered
into the system as finished goods.
Purchasing
o Requisition--Once the Production manager plans to manufacture something
a requisition for the raw materials required but not on hand must be
prepared.
28
o
o
o
o
o

Vendor Selection--made by the purchasing department
Purchase order sent
goods receipt increasing inventory
Invoice verification as it is received from vendor
Payment to vendor.
Finance and Accounting
o Sales events must be captured at the proper time into the ledger system
o Inventory must be adjusted to match goods shipped
o Inventory must be adjusted to match raw materials received
o Inventory must be adjusted to move value from raw materials to work in
process
o Inventory must be adjusted to increase finished goods when they are
produced
o Accounts Payable must be set up for purchases
o Accounts Receivable must reflect goods billed but not yet paid for
Business Process Engineering must not only identify all these steps but must also find the
most efficient way to minimize redundant actions. For example, when sales are made,
inventory and manufacturing plans should be automatically updated. When manufacturing
plans are updated raw materials should be automatically ordered from vendors. When
finished goods are shipped customers should be automatically billed at the same instant.
Real situations are far more complex than the simple explanation above.
Figure 5: SAP R/3 interface
The SAP R/3 system presents a Windows interface with several of the familiar Windows
functions for screen manipulation. The apparent simplicity of the interface hides the power
of the menus residing within the menubar at the top of the screen. The initial screen shows
a menubar with the following selections. The first level sub menus are listed below to give
29
you an idea of where to start:

Office
o
o
o
o
o
o





Workplace
Telephone Integration
Appointment Calendar
Room Reservations
Start Workflow
Business Documents
Logistics
o Materials Management
o Sales/distribution
o Logistics Execution
o Production
o Production-process
o Plant Maintenance
o Customer Service
o Quality Management
o Logistic controlling
o Project Management
o Environment Health & Safety
o Central Functions
Accounting
o Financial Accounting
o Treasury
o Controlling
o Enterprise Control
o Investment Mgt.
o Project management
o Real Estate
Human Resources
o Managers Desktop
o Personnel admin.
o Time management
o Payroll
o Training and Event Management
o Organizational Management
o Travel
o Information system
Information Systems
o Executive Information Systems
o Logistics
o Accounting
o Human Resources
o Project System
o Ad Hoc Reports
o General Report System
Tools
o ABAP/4 Workbench
o Accelerated SAP
30
o
o
o
o
o
o
o
o
o
o
o
Administration
ALE
Business Communication
Business Documents
Business Framework
Business Workflow
CCMS
Web Development
SAPScript
Hypertext
Find
Figure 6: R/3 integration [20]
6.2.6.1 SAP Application Modules
System consists of application models that support all of a company's business transactions
and are integrated in real time
A change in one application module results in an automatic update of the data in the other
application modules
All applications have the same "look and feel"
SAP has several layers. The Basis System is the heart of the data operations and should be
not evident to higher level or managerial users. Other customizing and implementation
tools exist also. The heart of the system from a manager‘s viewpoint is the application
modules. These modules may not all be implemented in a typical company but they are all
related and are listed below:
31
Figure 7: Logical partition of R/3 into modules [18]

Modules Grouping [19]
o
o
o
o
o
6.2.6.1.1

Financials:
 FI Financial Accounting
 CO Controlling
 AM Asset Management
 PS Project Systems
Common Systems
 WF Workflow
 IS Industry Solutions
Logistics
 PM Plant Maintenance
 QM Quality Management
 PP Production Planning
 MM Materials Management
 SD Sales and Distribution
HR Human Resources
The Basis System
Financial Application (FI, CO, EC, IM, TR, AM, PS)
FI Financial Accounting--designed for automated management and external
reporting of general ledger, accounts receivable, accounts payable and other subledger accounts with a user defined chart of accounts. As entries are made relating
to sales production and payments journal entries are automatically posted. This
connection means that the "books" are designed to reflect the real situation.



General Ledger(FI-GL)
Accounts Receivable(FI-AR)
Accounts Payable(FI-AP)
32




CO Controlling--represents the company's flow of cost and revenue. It is a
management instrument for organizational decisions. It too is automatically updated
as events occur.




Cost Center Accounting
Profit Center Accounting
Product Cost Controlling
Profitability Analysis

Activity Cost Management
Internal Orders


AM Asset Management--designed to manage and supervise individual aspects of
fixed assets including purchase and sale of assets, depreciation and investment
management.





Tax and Financial Reports (FI-SL)
Special Purpose Ledger
Legal Consolidations(FI-LC)
Depreciation
Property Values
Insurance Policies
Capital Investment Grants
PS Project System--is designed to support the planning, control and monitoring of
long-term, highly complex projects with defined goals. This module
accommodates all types of research and development projects. It
coordinates and controls all phases of a project, in direct cooperation with
Purchasing and Controlling, from quotation to design and approval, to
resource management and cost settlement.
 Project Tracking
 Work Breakdown Structure
 Budget Management
 Cost and Revenue Planning

Network and Resources
Sub-modules:
o
o
o
o
Basic Data (PS-BD)
Operational Structures (PS-OS)
Project Planing (PS-PLN)
Approval (PS-APP)
33
o
o

Enterprise Controlling (EC)
o
o
o
o

Project Execution/Integration (PS-EXE)
Information System (PS-IS)
Executive Information System (EC-EIS)
Business Planning (EC-BP)
Management Consolidation (EC-MC)
Profit Center Accounting (EC-PCA)
Treasury (TR)
The Financial Accounting module provides treasury functions, but the following are
more specialized:
o
o
o
o

Capital Investment Management (IM)
o
o
6.2.6.1.2

Tangible Fixed Assets (IM-FA)
Financial Investments (IM-FI)
Logistics Application (SD, MM, PM, PP, QM, LO)
Logistics General --Logistics General integrates the manufacturing and
distribution functions for Sales and Distribution, Production Planning, Materials
Management, Plant Maintenance and Quality Management. The following
components are included:
o
o
o
o
o

Treasury Management (TR-TM)
Funds Management (TR-FM)
Cash Management (TR-CM)
Market Risk Analyzer (TR-MRM)
Logistics Information System (LO-LIS)
Master Data (LO-MD)
Forecast (LO-PR)
Variant Configuration (LO-VD)
Engineering Change Management (LO-ECH)
SD Sales and Distribution--helps to optimize all the tasks and activities carried out
in sales, delivery and billing. Key elements are; pre-sales support, inquiry
processing, quotation processing, sales order processing, delivery processing,
billing and sales information system.
This includes sales, shipping, and billing. It actively supports sales and distribution
activities with functions for pricing, prompt order processing, and on-time delivery,
34
interactive multilevel variant configuration, and a direct interface to Profitability
Analysis and Production.
 Computer Aided Sales
 Quotations
 Sales Order Management
 Pricing
 Delivery
 Invoicing
Sub-modules:
 Master Data (SD-MD)
 Basic Functions (SD-GF)







Sales (SD-SLS)
Shipping (SD-SHP)
Billing (SD-BIL)
Sales Support (SD-CAS)
Information System (SD-IS)
Electronic Data Interchange (SD-EDI)
MM Materials Management--supports the procurement and inventory functions
occurring in day-to-day business operations such as purchasing, inventory
management, reorder point processing, etc.





Procurement
Inventory Management
Vendor Evaluation
Invoice Verification
Warehouse Management
A material can also be a person or a service. The MM application supports
manufacturing, distribution and service industries:
o
o
o
o
o
o
o

Material Requirements Planning (MM-MRP)
Purchasing (MM-PUR)
Inventory Management (MM-IM)
Warehouse Management (MM-WM)
Invoice Verification (MM-IV)
Information System (MM-IS)
Electronic Data Interchange (MM-EDI)
PP Production Planning--is used to plan and control the manufacturing activities
of a company. This module includes; bills of material, routings, work centers, sales
and operations planning, master production scheduling, material requirements
planning, shop floor control, production orders, product costing, etc.
35
 Sales & Operations Planning
 Demand Management
 Material Requirements Planning
 Production Activity Control
 Capacity Planning
Sub-modules:
o
o
o
o
o
o
o
o
o
o
o
o
o

Basic Data (PP-BD)
Sales and Operations Planning (PP-SOP)
Master Planning (PP-MP)
Capacity Requirements Planning (PP-CRP)
Material Requirements Planning (PP-MRP)
Production Orders (PP-SFC)
Product Costing (PP-PC) (which is also CO-PC Product Costing)
Kanban/Just-in-Time Production (PP-KAB)
Repetitive Manufacturing (PP-REM)
Assembly Orders (PP-ATO)
Production Planning for Process Industries (PP-PI)
Plant Data Collection (PP-PDC)
Information System (PP-IS)
QM Quality Management--is a quality control and information system supporting
quality planning, inspection, and control for manufacturing and procurement. This
module provides quality planning, inspections, certificates, notification. It monitors,
captures, and manages all processes relevant to quality assurance along the entire
supply chain, coordinates inspection processing, initiates corrective measures, and
integrates laboratory information systems.
o
o
o
o
o

Planing Tools (QM-PT)
Inspection Processing (QM-IM)
Quality Control (QM-QC)
Quality Certificates (QM-CA
Quality Notifications (QM-QN)
PM Plant Maintenance--In a complex manufacturing process maintenance means
more than sweeping the floors. Equipment must be services and rebuilt. These tasks
affect the production plans.



Plant Maintenance
Equipment and Technical Objects
Preventive Maintenance
36


Service Management
Maintenance Order Management
The Plant Maintenance module provides planning, control, and processing of
scheduled maintenance, inspection, damage-related maintenance, and service
management to ensure availability of operational systems, including plants and
equipment delivered to customers.
o
o
o
o
o
o
6.2.6.1.3
Equipment and Technical Objects (PM-EQM)
Preventive Maintenance (PM-PRM)
Maintenance Order Management (PM-WOC)
Maintenance Projects (PM-PRO)
Service Management (PM-SMA)
Plant Maintenance Information System (PM-IS)
Cross Applications (WF, OC, AL, CAD. DMS, ALE, EDI,
I/Net, EC)
WF Workflow--links the integrated SAP application modules with crossapplication technologies, tools and services The Business Workflow module
contains functions that can be used in all application components, linking the
integrated application modules with cross-application technologies, tools and
services. A typical example of a business process that can be actively controlled
using SAP Business Workflow is the complete processing of a customer order from
its receipt through delivery of the goods and issuing the invoice. You can automate
all the steps in this business process and define all the roles of the appropriate
employees. You can check a customer‘s credit line and creditworthiness, query the
stock on hand, and automatically place an order. Clerical staff can process the
individual work items in a working environment familiar to them, request
information on the current status of specific workflows at any time, and trace the
history of the work process. All these functions can also be accessed through the
Internet.





SAP Business Workflow
SAP Office
SAP ArchiveLink
EDI
Communication
37


6.2.6.1.4

Industry Solutions IS
IS Industry Solutions--combine the SAP application modules and additional
industry-specific functionality. Special techniques have been developed for
industries such as banking, oil and gas, pharmaceuticals, etc.


Banks
Hospitals



Oil Companies
Publishing Sector
Telecommunications


Retail
Utilities
Others

6.2.6.1.5

Application Link Enabled (ALE)
Others
Human Resources (PA, PD)
HR Human Resources--is a complete integrated system for supporting the
planning and control of personnel activities.





Personnel Administration
Payroll, Benefits
Time Management
Planning and Development
Organization Management
The Human Resources module includes administration, payroll accounting, shift
management, employee attendance, trip costs, training, and recruitment. It provides
solutions for planning and managing the company‘s human resources, using
integrated applications that cover all personnel management tasks and help simplify
and speed the processes.

Personal Planning and Development (HR-PD)
o Organizational Management (PD-OM)
o Seminar and Convention Management (PD-SCM)
o Personnel Development (PD-PD)
o Workforce Planning (PD-WFP)
o Room Reservations Planning (PD-RPL)
38

Personnel Administration (HR-PA)
o Employee Management (PA-EMP)
o Benefits (PA-BEN)
o Compensation Administration (PA-COM)
o Applicant Management (PA-APP)
o Time Management (PA-TIM)
o Incentive Wages (PA-INW)
o Travel Expenses (PA-TRV)
o Payroll (PA-PAY)
Figure 8: SAP R/3 module
Each of these Modules may have sub-modules designed for specific tasks as detailed
below.
6.2.6.1.6





Basis Component
ABAP/4 Development Workbench
Computer Center Management System
Authorization Concept
Transport System
Database Administration
6.2.7
SAP R/3 Architecture
The SAP Business Framework is a family of SAP and non-SAP products. It is an open,
integrated, component-based enterprise business application solution for companies of any
size in any industry. Business Framework provides flexibility in setting up enterprisecritical distributed IT systems using independent components. The R/3 System is an
evolving family of application components, that can be combined into an integrated,
39
continuously maintainable network solution regardless of the release of the components.
Business Framework is an open design, allowing integration of components from thirdparty vendors. [16]
Figure 9: System Platforms Supported by R/3 [17]
The SAP R/2 System was developed to run on mainframe computers; SAP R/3 System has
been developed to run with a distributed multi tier client/server architecture. SAP R/3 can
be configured to run on a single computer, or it can be distributed among many different
machines at different locations. There is a clear distinction between the presentation,
application, database, and Internet-enabling layers.
Figure 10: R/3 Applications and their Technological Basis [18]
The presentation layer is the user interface, and a number of different graphical user
interfaces (GUIs) can be used. SAPGUI is SAP‘s own user interface software (in over 20
different languages), but Microsoft Windows or Internet browser interfaces can be used in
40
its place. Other examples of interfaces are kiosk systems, and telephone answering
systems.
Application servers contain the complete business process logic of R/3 applications. These
application servers can run on Windows NT systems, major UNIX operating systems, and
AS/400 systems. A number of different application servers can be connected in a network,
distributed geographically.
The database layer manages both the R/3 System application components and the
enterprise‘s working data. This task is performed using relational database management
systems. Supported are IBM DB2, Informix Online, Microsoft SQL Server, and Oracle.
Database servers can be on different servers from the application servers, and can include
mainframes, Windows NT, UNIX or AS/400. The industry standard SQL (Structured
Query Language) is used for defining and manipulating all data. Applications are fetched
from the database as required, loaded into the application layer, and then run from there.
SAP also has an Internet layer (with access through a Web server) that works with System
R/3 that enables a corporation to couple its systems with customers and vendors.
Employees can access the system over the Internet or intranet, customers can place orders,
and vendors can access their customers‘ warehouse data to schedule deliveries just in time.
See mySAP.com below, which is central to SAP‘s internet strategy.
SAP Application Link Enabling (ALE) is used to manage widely distributed, loosely
coupled systems, based on an exchange of messages controlled by business processes.
Individual companies in a corporation can distribute their transaction workloads where data
are distributed, while a common service is offered throughout the network. Individual tasks
can be distributed across locations. The systems involved can be different R/3 systems or
non R/3 systems. With ALE, applications are integrated using asynchronous
communications mechanisms.
41
Figure 11: Three-Tier Client/Server-Architecture of R/3 [17]
The R/3 System offers standard interfaces to enable integration of R/3 with the processes
and data of business applications from other vendors. These object-oriented interfaces are
called business application programming interfaces (BAPIs). BAPIs are compatible with
Microsoft‘s Distributed Component Object Model (COM/DCOM) specifications and the
Object Management Group‘s Common Object Request Broker (CORBA) specifications.
R/3 applications are modules that can be used alone or combined with other solutions. R/3
is scalable and can be used with from 30 to several thousand users.
Popular desktop programs such as MS Word, MS Excel, and MS Project can be linked to
R/3 applications. Electronic Data Interchange (EDI) between companies is also part if R/3.
The BASIS System is the fundamental software within R/3. Application modules listed
above in SAP R/3 Functionality are added as needed.
ABAP is the SAP programming language that is used in the application modules. Custom
programming with ABAP is possible for add on modules (but the standard SAP modules
should not be modified).[16]
6.3. ERP IMPLEMENTATION
Business Process Reengineering is a pre-requisite for going ahead with a powerful planning
tool, ERP. An in depth BPR study has to be done before taking up ERP. Business Process
Reengineering brings out deficiencies of the existing system and attempts to maximize
productivity through restructuring and re-organizing the human resources as well as
divisions and departments in the organisation [5]
Business Process Engineering evolves the following Steps:
42
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




Study the current system
Design and develop new systems
Define Process, organisation structure and procedure
Develop customize the software
Train people
Implement new system
The principle followed for BRP may be defined as USA principle(Understand, Simplify
Automate)
i.e., Understanding the existing practices, Simplifying the Processes and Automate the
Process. Various tools used for this principle are charted below:
 Understand Simplify Automate
 Diagramming Eliminating EDI
 Story-boarding Combining ERP
 Brain storming Rearranging
Once the BPR is completed the next task is to evaluate and select a suitable package for
implementation. Evaluation of the right ERP package is considered as more crucial step.
Evaluation and selection involves:
 checking whether all functional aspects of the Business are duly covered
 checking whether all the business functions and processes are fully integrated
 checking whether all the latest IT trends are covered



checking whether the vendor has customizing and implementing capabilities
checking whether the business can absorb the cost
checking whether the ROI is optimum
Implementing an ERP package has to be done on a phased manner. Step by step method of
implementing will yield a better result than big-bang introduction. The total time required
for successfully implementing an ERP package will be anything between 18 and 24
months. The normal steps involved in implementation of an ERP are as below:
 Project Planning
 Business & Operational analysis including Gap analysis
 Business Process Reengineering






Installation and configuration
Project team training
Business Requirement mapping
Module configuration
System interfaces
Data conversion
43




Custom Documentation
End user training
Acceptance testing
Post implementation/Audit support
The above steps are grouped and sub-divided into four major phases namely 1)detailed
discussions, 2) Design & Customisation, 3) Implementation and 4) Production. The phases
of implementation vis-a-vis their tasks and respective deliverables are as below:
Detailed Discussion Phase:
Task :- Project initialization, Evaluation of current processes, business practices, Set-up
project organization
Deliverables:- Accepted norms and Conditions, Project Organisation chart, Identity work
teams
Design and customisation Phase:
Task :- Map organisation, Map business process, Define functions and processes, ERP
software configuration and Build ERP system modifications.
Deliverables :- Organisation structure, Design specification, Process Flow Diagrams,
Function Model, Configuration recording and system modification.
Implementation Phase:
Task :- Create go-live plan and documentation, Integrate applications, Test the ERP
customisation, Train users
Deliverables :- Testing environment report, Customisation Test Report and Implementation
report
Production Phase:
Task:- Run Trial Production, Maintain Systems
Deliverables:- Reconciliation reports, Conversion Plan Execution
CA and ERP
A pertinent question one Chartered Accountant may ask is "How does an ERP matter for
me?". As mentioned earlier the role of a Chartered Accountant in any business either as a
Consultant, Auditor, Advisor or Manager is inevitable.
CA as a Consultant:
Implementation of ERP solutions is one of the largest drivers of growth in the consultancy
business. The introduction of such a large and complex software like ERP, which enables
an organisation to integrate their manufacturing, finance and marketing operations at all
levels, is in itself a challenge, since it calls for technical and functional skills and a change
in user mindsets. And therein comes a role of a consultant. CA as a Consultant will play a
major role in implementation of an ERP solution.
44
CA as an auditor:
Assuming a situation where the client has implemented an ERP solution. If the auditor is
aware of ERP he can make use of the features of ERP and thereby:
ensures that the internal controls and checks are consistently maintained.
ensures that the provisions of Income tax or other fiscal laws are not ignored e.g., one can
control the payment of cash in excess of Rs.10000 for expenses or Rs.20000 as loans and
advances, The TDS deductions and payments are automated etc.,
ensures that the Accounting Standards are consistently followed across the company.
Improves the quality of the reporting.
CA as an Advisor:
As an advisor to a company a Chartered Accountant can participate in various stages of
ERP implementation. It goes without saying that advising without the knowledge of the
current trends and modern management techniques will prove to be a wrong advice and
may have a negative impact on the growth of the client.
CA as a Manager:
By now one should be knowing that the ERP is a high end sophisticated software solution
that reduces the pressure and work load of the Managers and provides accurate, timely
information for taking appropriate business decisions. Chartered accountants as managers
with knowledge of ERP will be able to achieve their targets and goals by proper
implementation of ERP system in their organisation. In fact Managers are expected to
translate the business rules and requirements for Mapping them into ERP software.
Managers as representatives of the Organisation have to coordinate with Vendors,
Consultants, Auditors etc., for a proper implementation of ERP package. [5]
6.4. SAP R/3 Custom Configuration & Implementation
Implementing R/3 requires a team of IT specialists and business users. For the enterprise,
this can result in business process re-engineering: less supervisory levels, better flow of
information between business units, and a new business organizational structure. The
process can be ongoing – change can be continuous. Applications from R/3 are usually
implemented gradually in a progressive implementation, rather than everything
implemented at once. [16]
The R/3 System is highly configurable to suit the operations of the enterprise. SAP has
provided tools to model business processes, configure the system, and manage the process.
The R/3 Procedure Model provides guidance through the different project phases step by
step (from project generation to going live). A wide range of tried-and-true, graphically
portrayed business scenarios and processes are stored in the R/3 Reference Model, from
which the best possible processes can be chosen. The R/3 Procedure Model uses the
following tools:
45
IMG (Implementation Management Guide) of R/3 – acts as a project management system,
providing a plan of activities. It recommends a sequence for configuring and customizing
the system, and supports documenting the project. [16]
figure 12: R/3 User Groups and Views [17]
SAPoffice – stores, edits text and graphical information. It also links to standard PC office
products such as word processing and spreadsheets.
Business Navigator - provides a graphical view of business processes and functions.
The R/3 Analyzer is a set of tools for selecting from the R/3 system the standard business
programs that are needed for a particular enterprise. The results can be displayed in a
graphical or list form. R/3 Analyzer prompts users to perform steps in the proper order.
The R/3 Reference Model is a tool that is provided to support configuration activities. It
contains over 1,000 business processes that describe the functions of the R/3 System, and
provides over 100 basic business scenarios. Five views are provided by the
Reference Model:
Process view – a network of event-driven process chains
Function view – a summary display of the business functions required of R/3
Information flow-view – for information flow between event-driven process chains
Data view – clusters of data structures required for the business processes
Organization view – the relationships between the organizational units of the enterprise
46
Figure 13: Concepts and Languages of the R/3 Repository[17]
The configuration that is chosen by the users is represented by parameters in tables; the R/3
tools create the tables as the users specify their requirements, without the need to modify
any software. Requirements that are not available in the standard R/3 Reference Model are
documented by the tools, but must be programmed with the ABAP/4 language (with the
ABAP/4 Development Workbench). Thus the enterprise can extend, and have their own
version, of the R/3 Reference Model.
Figure 14: Objects of the R/3 Repository [17]
A business component can be implemented independently of the release of R/3. Thus the
entire system does not need to be implemented or upgraded simultaneously.
47
SAP has also provided AcceleratedSAP (ASAP) as a methodology and tools for more rapid
implementation of R/3.The Business Engineer draws upon the Reference Model to provide
guidance through the implementation, in analyzing, designing and configuring the business
processes. The Business Engineer can be used in a graphical or tabular form and is the
recommended method of implementing or maintaining R/3. [16]
Implementation STEP [20]
Project Preparation – Initial Planning & Preparation
The purpose of this phase is to provide initial planning and preparation for the
implementation. In this phase confirmation of the project objectives, scope, and
implementation strategy will be performed. The project management will build the project
team, refine the project plan and develop the policies and procedures by which the project
will be managed.
Business Blueprint – Documenting the Process Requirements
The purpose of this phase is to create the Business Blueprint, which is a detailed
documentation of the results gathered during requirement workshops. The Business
Blueprint documents the business process requirements of the organization, as well as
configuration, interface, conversion, and security considerations. It is also used as a tool to
gather organizational benefits and changes that are used as part of the change management
plan. On this basis, you achieve a common understanding of how the organization intends
to run its business within the R/3 system.
Realization – Implementing the Process Requirements
The purpose of this phase is to implement the business and process requirements based on
the Business Blueprint. Activities include configuration of the R/3 system; development of
interfaces, conversions, and custom reports; unit testing, and integration testing. Also
included are installations of the quality assurance and production systems, development of
training materials and documentation, and development of security profiles.
Final Preparation – Training and Cut-over Activities
The purpose of this phase is to complete the final preparation activities prior to going live,
including system testing, end-user training, system management, agency implementation,
and cutover activities. This Final Preparation phase is also used to resolve all crucial open
issues.
Go-Live and Support – In Production
This phase includes implementing SAP R/3 as the system of record for the State and post
implementation support activities including:

Establishment of the support team
48



Support of the live system
Completion of end-user training
Transfer of knowledge from constultant to company‘s personnel
The Project Board, The Resources, GAP Analysis, Cut Over Plans, Train Users is
considerated for successful implementation [21]
The Project Board:The correct set up and operation of the Project Board in my view is
major factor in the success failure of the project. The Project Board will consist of the
stakeholders, key users and the vendor. The Project Board is part of the governance of the
project. The Project Board will meet regularly to ensure that the project plans are created
and being executed as planned, moves from stage to stage with all the deliverables being
signed off is resourced properly.
The Resources Three types of resources are absolutely necessary -- end users, change team
and technicians.
Early involvement by the end users is absolutely necessary, as they will be the ones living
with the system for hopefully many years to come. They will want to feel involved in its
implementation. Buy in from the end users of the system is absolutely essential if the
system is to have a long and stable life in any organisation.
The Change Team will identify the gaps between the package and the business
requirements, re-engineer some of the businesses process to cope with the package, train
the users to ensure implementation is smooth as possible into the business.
The Technical Team will prepare the systems environment for the package, apply any
software fixes from the vendor, implement the software in the best way possible for the
organisation set up and tune the software for the particular technical environment.
GAP Analysis A through gap analysis will identify the gaps between how the business
operates ad its needs against what the package can can't do. For each gap there will be one
of three outcomes which must be recorded and actioned, GAP must be closed and
customised software can be developed close the gap, GAP must be closed but software
cannot be written therefore a workaround is required, GAP does not need to be closed.
Cut Over Plans Detailed plans need to be developed for cutting over from the old
system(s) to the new. Parallel runs of what will happen over the conversion period using
test data, convert and watch for a period after wards to ensure nothing unexpected happens.
Train Users Well trained users will support and defend the system on site. Unsupportive
users will continually undermine the system and eventually it will be replaced. Therefore
the more effort you put into helping the users master the system early the better.
49
7. SAP IMPLEMENTATION IN BEKO A.ġ
7.1.1
History of BEKO A.ġ
Beko Elektronik A.Ş. was founded on September 22, 1966 in Istanbul under the name
Bekoteknik Sanayi A.Ş. Being aware of the prerequisit to continuously change and
progress in order to compete in a rapidly changing world the company‘s name Bekoteknik
was changed to Beko Elektronik in 1996. The establishment which is one of the largest
electronics producers in Turkey operates from its 125,000 m2 modern facilities in
Beylikduzu, Istanbul, providing services to the domestic and international markets
producing various types and models of television sets, cash registers, satellite receivers and
personal computers as well as marketing music sets, DVDs, videos and other products.
Following implementation of a major modernization project between 1988-1993 Beko
Elektronik today owns the most modern and developed television factory in Europe.
Thanks to the flexible manufacturing feature of this project the number of different
television models produced reached 200. As a result every type and model of television can
be produced for the export markets.
With 95% of the production activities automated Beko Elektronik is one of the first
television producers in Turkey and the world using computer robots to carry out final
product storage and loading activities.
In addition in 1987 Beko Elektronik commissioned the first plastic injection factory
equipped with computerized injection equipment and in 1994 the first materials and storage
facility equipped with computer robots in Turkey utilizing a total of 7,000 m2 land.
Another important achievement of Beko Elektronik within the scope of the modernization
project has been in the area of research and development. Located on an area of 2,000 m2
and equipped with qualified personnel and software the research and development
departments are presently operating as a world scale technology laboratory conforming to
international standards.
Starting the Quality Cycles implementation in 1983 for the first time in Turkey Beko
Elektronik adopted the concept of Total Quality Management in the early 1990s educating
its personnel with the slogan of ―Total Perfection‖.
Since 1992 Beko Elektronik implemented Total Quality Management using the Koc 2000
Customer Focussed Strategic Planning Model switching to the Beko Elektronik Strategic
50
Management (BEST) model in 1997 adopting a more participating and long perspective
approach for the Total Quality Management implementations.
At the start of the 21st century in view of a rapidly changing world and increasing
competition the need was felt to review the systems and approaches and instead of the three
year perspective implemented to date within the scope of Koc 2000 a new approach has
been adopted incorporating the latter.
Beko Elektronik is one of the first establishments applying for the TuSIAD-KalDer Quality
Award in 1993 and since then carried out self evaluation studies annually with the aim of
further and continuous development. As a result of these studies Beko Elektronik achieved
its aim winning the 1999 TuSIAD - KalDer Achievement Award.
In 2001 Beko Elektronik received the TPM Perfection Award given to the most efficient
companies in the world that best implement the Total Productivity Management (TPM)
activities. Beko Elektronik is the first Turkish company with 100% Turkish capital
receiving the TPM Perfection Award.
The history of Beko Elektronik and milestones in its journey of Total Quality
1966 Foundation of Bekoteknik
1967 Radio and commercial cabinet production
1968 Display of the first television set in Kizilay Square, Ankara
1976 Move to Beylikduzu
1983 Start of Quality Cycles education and implementation
1988 Establishment of a control system for the supporting industry
1989 Start of the ISO 9000 studies
1991 Received the ISO 9001 Certificate (SGS Yarsley)
1992 Received the ISO 9001 Certificate (TSE)
1992 Start of the Koc 2000 "Total Perfection" studies
1993 Start of the BS 7750 studies
1993 Application for the TuSIAD-KalDer Quality Award
1994 Start of the planned improvement activities for the supporting industry
1994 BS 7750 Belgesinin alinmasi (SGS Yarsley)
1996 Received the TS EN ISO-14001 Certificate
1997 Conversion of the BS 7750 Certificate to ISO-14001 (SGS Yarsley)
1997 Beko Elektronik Strategic Management (BEST) Model
1999 Received the ISO Environment Grand Award
51
1999 Receiced the TuSIAD-KalDer Achievement Award
2001 Received the ISO 9001:2000 Certificate (SGS Yarsley)and the 2001 TPM Perfection
Award
Today the BEKO brand television is becoming known in Africa having already established
its name in all of Europe. In 1992 BEKO televisions were first exported to the countries of
Ivory Coast and Botswana in continental Africa and have become the preferred brand in a
large number of African countries. Televisons are marketed in these African countries
mainly under the BEKO brand. In addition to exports technological collaboration is being
made with some of these countries. For example not only televisions, but also technology
has been exported to Egypt.
Beko Elektronik has its own product design technology producing its own product design.
Furthermore studies are being carried out on the electronic, cosmetic and software designs.
Its production technology is compatible with other major factories in the world. It is
capable of designing and producing its own automation systems.
Our strength and success in this area have been proved by the fact that both Grundig and
Lucky Star (LG) entrusted us with the production of their television sets preferring the
Beko Elektronik design over their own with respect to the design of the electronic circuits
within their products. We are proud to be able to produce for such respectable
and strong brands of Europe and the Far East especially by using our own technology
without having to buy or transfer foreign technology which in other words means that we
are also selling technology.
7.1.2
General information
Beko A.Ş was established in 1996 which has 3400 personnel and enterprise side of 18000
m2.
Producing is continuous (24 hour). CRT, LCD, Plasma TV (7 million) are being produced
yearly. Approximately, one TV per 3.11 second is produced. And also, Beko A.Ş produces
SetTopBox (1 million), PC, notebook, server, cash register, and satellite antenna and
satellite receiver.
300 different marks are exported to over 80 countries. In addition, Beko A.Ş studies on
3000 active products.
Generally, Beko A.Ş study with import raw material that is approximately 4000. In
addition, approximately 5000 native raw material are used in Beko A.Ş.
Study of Beko A.Ş is generally exporting that is aproximately 80%.
Beko A.Ş offer to service opportunity for customer in 16 thousand points of Europe.
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7.2. ERP selection and pre-implementation SAP at BEKO A.ġ
7.2.1
Old system
BEKO electronic A.Ş used to non-integrated pair of software programs. There used to be
distributed IT structure. These systems are A-11 KOÇ Unisys, oracle system, base on
Windows that include only material management and financial management DMS-2
Database and COBOL programming language had used in BEKO.
7.2.2
Why SAP?
Old system didn‘t respond to present and future requirements of BEKO IT infrastructure.
Non-integrated pair of software programs, distributed IT structure, closed system
architecture was not suitable to integrity and growth. In addition to that, medium and large
companies are suitable SAP software package. So, BEKO company had decided to buy
SAP R/3 4.6 C to direction of strategy of growth depend on increasing business process
and requirement of single database and controlling data which provide data integrity.
And also, suitable ERP package provide that achieve e-commerce‘s goal.
7.2.3
Determine requirement of SAP implementation
 Technology Requirements: SAP R/3 4.6
 Hardware Requirements: Client/Server structure,
Database size is equal to 2 * SAP R/3 size. Because, partition of outside of live system are
used for development, test and programming.
 Implementation requirements: Beko A.Ş had interview many constaltant firm with KOÇ
system.And then, Constultant and Some firm helped SAP implementation which are Mebis,
Lsys, Matrix and Koç System.
 Data Requirement and Functionality:BEKO structure had been analysed as rough
draft. Special requirement and general requirements had been determined to trasfer
constultant.
Module had been selected depend on requriment of BEKO A.Ş.And then, Constultant had
been selected depend on module. Key user and end user training had been considered.
This approach makes gap analysis easier and more meaningful as well.
In addition, All these requirement had been considered.And than cost,risk analysis had
been made which had been offered top managers. SAP project had been approved by high
level management.Top management support and inspection are important for SAP
implemantation in BEKO AŞ.
53
7.3. SAP road map
1999 : strategic decision of passing SAP
January 2000
: interwiewing and starting project
March 2000
: select module
June 2000
: select constultant depend on module
November 2000
: traning key user,
January 2001 : firstly ―As is‖ output
January 2002
: Configuration and Customizing base on module
November 2002
: SD module
13 JANUARY 2003 : go-live
7.4. Implementation Strategy
Implementation strategy of Beko Electronic AG is phase-ın by module and size.
7.5. General risk and solution advise
Risk : A.Ş sound like information system project. And also, SAP is business process
style. If, A.Ş perceive like software package, this condition create risk.
Solution: Management support and inspection
Risk : sales department doesn‘t join enough that is trigger for system.
Solution: Management support and inspection
Risk : All processes are transmitted consultants exactly at the right time.
Solution: Management support and inspection
Risk : Users doesn‘t make process rightly at the right time in SAP R/3.
Solution: Intensive training is given. And approvals of responsible users are took
Risk : parallel using at crossing period and later
Solution: SAP R/3 is base system, others are control system
Risk : Reparation of main of data is made faculty
Solution: Controlling reports are prepared for lacking and faulty database
Risk : project team must be present at passing time.
Solution: Management support and inspection
7.6. SAP implementation step
STEP-1
Project Preparation: scoping and estimating, reviews of project plans and risk mitigation,
rapid prototyping, a proven change management program, and overall project management
had been made by BEKO A.Ş personal and Consultant firms.
54
Consultants had analyzed old system. All of old and distributed system had been examined
by consultant.
Important issues to be addressed at the beginning of the project, include:







Defining project goals and objectives
Clarifying implementation scope
Defining the implementation strategy
Defining the overall project schedule and implementation sequence
Establishing the project organization and steering committees
Assigning resources to the project
Developing project management policies and procedures
ASAP tool was not used in BEKO electronic A.Ş. But, Microsoft Office Excel was used to
project management by Consultant and BEKO electronic A.Ş
Project Administration/Project Definition: Beko A.Ş determined initially our project
during project preparation with consultant firms. And also; major administrative tasks such
as the definition of project standards had been carried out during the entire project.
System landscape which allows the interaction and navigation into a related system
landscape was defined for SAP implementation by consultant firms.
In addition, Key user had been started to training of SAP.
STEP-2
Business Blueprint:
Process plan: Business process and process step, business scenarios had been analyzed.
Business processes and specifies all enhancements, conversions, interfaces, and reports
required had been analyzed and documented for a successful implementation. Other
activities performed in this phase include:
 Refine the original project goals and objectives
 Define the baseline scope
 Refine the overall project schedule and implementation sequence
 Begin creation of development specifications
 Install the development system
Project scope had been defined. Modules had been selected as fitting business process.
One or more consultant came to BEKO A.Ş for each module. And then, conceptual and
detail design had been constituted. So, Business blueprint had been constituted which is
55
documented in detail the scope of business scenarios, business processes and process steps
of implementation project from a business and technical perspective. Content of Business
blueprint is a detailed model of business process that describes process needs and points to
appropriate solution.
Detail design which is step-by-step process had been constituted for system architecture in
BEKO A.Ş. Detail design comprises Gap analysis as encouragement module and foreign
country bill and document that identifies the gaps between how the business operates and
its needs against what the package can/can't do.
So, Required report , crossing plan, customizing (SPRO+ additional new software) plan
had been prepared and designated. Business process design, a robout system arthitecture,
complete interface design and thorought feasibilty check had been completed.
STEP-3
Realization:
System setup, implementation and solution reviews, implementation of interfaces, specific
development, operations preparation, test scoping and procedures, and other technical
consulting were provided in Realization phase.
Detail design had been implemented on system. Intensive adaptation has been realized base
on module by consultant. Intensive adaptation process comprises configuration and
customizing phase. During Configuration, the business requirements specified had been
configured in the Business Blueprint phase in the related system landscape. And also,
software Program and Special Application was written with ABAP which was determined
by gap analysis. System was developed.
Integration of other system as TOTAL, MHR, YABIS, Kortek, and Bilin has been realized
for SAP. Integration programs had been written.
Test case and Test plan was created. System had been tested with testing function which
included process, user, and sequence and integration tests.
STEP-4
Final preparation:
56
In this phase, integration testing, mass-rollout testing, data conversion, documentation and
preparation had been realized.
In addition, End users had been trained by consultant firms.
STEP-5
Go-live and Support:
Go-live had been postponed 2 times. Because of this reason, sales group indicated
resistance. BEKO A.Ş passed go-live by high level management support in 13 Jan 2003.
After, Consultants has came during 6 months , BEKO A.Ş passed go-live. Knowledge was
transfered from Consultants to BEKO personnel.
In addition, BEKO A.Ş hired consultants in IS structure. Key user training finished.
BEKO A.Ş finished successfully SAP implementation.
Figure 15: SAP implementation step
7.6.1

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


Success story and advises in implementation of BEKO
High level management support and stability is important
Scope and border of project are determined by team of project
After, Project is finished, Requirement of qualified personnel is considered.
Personnel are examined which enter data
SAP are perceived as BUSINESS PROJECT
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Project are given management as performance target in process
Team is established which only focus on project. Daily work of this team is
purified.
Team is claimed and claim project which is responsible from financial side.
Key User is given module training. Responsible is given for supporting other
personnel after go-live.
―As is‖ documentation is prepared perfectly. Law agreement is made which is
constant budget and good prepared.
Project are strived to be inside of Standard of SAP software.
Big part of company processes is taken in scope (Beko: %80)
Strong IT team is needed which is SAP consultants
Strong BASIS staff is needed which can be enabled outsource
SAP consultants are needed which have at least 2 project experiences in similar
company.
Consultant Project manager is needed which is strong , leader soul
Project manager must have power of making process decision.
High level management sponsor must be leader.
Go-live tests are realized with high joining at expected time which has expected
quality.
Integration of side system is tested one more time. And User approval is taken.
Center of Redundant Server and Disaster Recovery are constituted at short time
which can be enabled outsource
Safe Operating System and Database are provided.
Access possibility is provided to project team from far
2 separate project rooms are provided for consultant and company project team
which is equipped.
Information meeting and documentations are prepared regularity.
Team is informed about process change at once. (It is import to company that is
changeable fast.)
Passing process and probable problem are shared with company personnel.
Entrance master data is tested well with user approval after it is taken in system.
Key user gives documented information all users before passing.
7.7. SAP/3 System of BEKO electronic A.ġ
First phase: There were two machines
BKX: development
BKD: live
Second phase: There were two machines
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BKX: development
BKD: live
BKP: test
Use of YTL monetary unit was started in Turkey. So, SAP R/3 system was configured,
adapted to YTL. (January 2005)
Third phase:
BKX: development
BKD: live
BKP: test
BAQ: adaptation interested YTL
YTL is being used now in SAP R/3 system (May 2005)
BKX: development
BKD: Live
BKP: old system
BAQ: test
System back-up are taken by Koc System every day. In addition, System Back-up are taken
for system security in Ankara every week
59
7.8. Analysis, Conceptual Design and Customizing for used module in BEKO
7.8.1
Organizational structure
Organizational structure was constituted for BEKO electronic A.Ş as SAP R/3 structure.
Figure 16: Organizational Structure in SAP R/3
This structure was defined in sap R/3 customizing (spro+F5 or IMG) by consultant and key
user. See: Appendix
7.8.2
Sales and Distribution
Sales and Distribution helps to optimize all the tasks and activities carried out in sales,
delivery and billing. Key elements are; pre-sales support, inquiry processing, quotation
processing, sales order processing, delivery processing, billing and sales information
system.
The sales logistics business process scenario in R/3 allows users to manage sales and
distribution activities in an effective manner. The business processes include scenarios for
sales, shipping, billing, sales support, and sales information. With real time, on line access
to sales information, such tasks as order entry, delivery, and billing are all streamlined. In
addition, sales and distribution can be integrated with procurement and production
planning, improving turnaround time up and down the value chain. The sales function in
R/3 utilizes a configurator to select configured products as well as a "conditions" program
to manage complex pricing scenarios. The sales order process sends requirements to
manufacturing. The R/3 system uses a technology, called Application Linking and
Enabling (ALE), to implement distributed solutions such as decentralized shipping. In this
approach, special types of business information documents, called Intermediate Documents
60
or IDOCs, are automatically transmitted between communicating systems. This database is
used by R/3 to automatically generate the IDOCs used in communicating between the host
and remote systems. In the recent years, many of SAP's customers was found that the
integration of sales and distribution applications in R/3's logistics chain has improved the
performance of their companies.[22]
7.8.2.1 Goal of SD
Firstly, all sales process is made on sap and integrated format.
Secondly, Sale‘s integration of departments of production planning, warehouse
management, accounting, export sales and inside sales are provided.
Finally, each record is made only one on the real resource. And also, error is minimized.
Processes are speeded.
7.8.2.2 Scope of SD
Scope of SD module includes:
 foreign country sales
 native country logistic/shipping
 native country batch sales
 Direct export
 Sales with export record
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Personal and 3. individual sales
Service and 3. individual sales
Other sales(business enterprise‘s material and scrap)
Order and shipping performance analsys
forecast endorsement and endorsement information
avarage yearly
o 6500 bill
o 6000 order document
o 7500 shipping document
61
7.8.2.3 Organizational Structure in SD module
Sales organization is organizational structure about company sales
1000 product sales organization (finished good, SKD, CKD)
2000 material sales organization (spare part, material, scrap)
3000 ICT sales organization
Figure 17: sales organization (Customizing (SPRO-F5 or IMG))
Distribution Channel: In SAP R/3 system, product and service pass through the
distribution channel which is way of relation of customers.
Distribution channel are at Beko electronic.
10
wholesale trade (native country)
20
wholesale trade (foreign country)
30
Personnel / Individual
Distribution channel provide that determine market segment. Other details information is
provided to using other possibility in system for purposeful report (for example:
geographical region, country). Goal of this differentiation is simple, easy to used,
minimized error.
62
Figure 18: Distribution channel (customizing)
Partition: Partitions are used to divide product and service which aim to grouping the scale
of product optimally.
Division of Product of Beko Electronic
10
TV (TV, UK, tripod)
11
Music Set (all type audio equipment and cabins)
12
PC & Data processing product (PC, keyboard, mouse, monitor, fax, scanner,
joystick, TV card)
13
Home equipment (DVD player, satellite receiver, bowl, telephone)
30
Spare part (semi product)
40
Scrap (waste, non-used material)
50
Material (component, by-product)
99
Reference part
63
Figure 19: Sales partition
SD scope: SD scope structure is combination of sales organization, distribution channel
and divisions. Goal of this structure which is relation of customer and material master
record and organizational unit execute sales process truth in using formed sales report. It is
used for constituting sales report.
64
Figure 20: SD scope
Sales Office: in SAP, sales office that is Physical unit has product and service sales
responsible in evident geographical area as regional directorate. But, it is defined as group
of sales team for different sales report.
65
.
Figure 21: Sales office
Sales group: in SAP sales group is group of all sales representatives.
In BEKO electronic, sales group was used for analyzing detail group that is under the sales
office.
In Beko Electronic, sales group and sales office was shaped according to foreign country
report for foreign country sales.
66
Figure 22: Sales group
Shipping point: Property is loaded in shipping point that is physical location. Each
delivery is made in only one shipping point that must been used. Shipment point was
related to production area.
67
Figure 23: Shippment point
7.8.2.4 Integration of SD R/3 system
SD master records include customer record, material record, and data of price‘s provision.
Figure 24: integration of SD
68
7.8.2.5 Processes of SD module
Figure 25: SD processes
Wholesale trade (native country): sale product for companies of KOÇ group
Proposal
Order
Refusal
order
Delivery
Refusal
delivery
Teslimatı
Bill
SD
Bill of
refusal
FI-CO
Records go to Financial and
Cost accounting automatically
69
This flow starts with proposal. But, proposal may be business load and not be fit procedure.
So, Proposal is not obligatory. And then, Order is entered with beko code or customer
code as arçelik code by person that is related customer. Sales conditions (payment
condition, fixed term or date, price) are entered in order.
Figure 26: Sales Order Document
Personnel and individual sales (native country): sale product for 3.individuals and
personnel of BEKO and KOÇ group
Exporting (wholesale trade): sale product for OEM and companies of KOÇ group
Service material and spare part sales:
Sales spare part for authorized service (native country) and 3. Individuals
Sales spare part for Service Company (foreign country)
Refusals:
Refuse /accept refusal materials from customers
Enter bill of return as controlling in system
Analyse quantity of return and their reason
Cancelling of sales:
Prevent/remove errors of users
Smooth condition and quantity of sales
70
7.8.2.6 Sales and Distribution Tables
71
72
73
KONV Conditions for Transaction Data
KONP Conditions for Items
LIKP
Delivery Header Data
LIPS
Delivery: Item data
VBAK
Sales Document: Header Data
VBAP
Sales Document: Item Data
VBBE
Sales Requirements: Individual Records
VBEH
Schedule line history
VBEP
Sales Document: Schedule Line Data
VBFA
Sales Document Flow
VBLB
Sales document: Release order data
VBLK
SD Document: Delivery Note Header
VBPA
Sales Document: Partner
VBRK
Billing: Header Data
VBRP
Billing: Item Data
VBUK
Sales Document: Header Status and Administrative Data
74
VBUP
Sales Document: Item Status
VEKP
Handling Unit - Header Table
VEPO
Packing: Handling Unit Item (Contents)
VEPVG Delivery Due Index
7.8.2.7 Benefit of SD
Provide to double direction and perfect integration with process of production, stock
management and purchasing:
 Customer requirements are transferred production planning immediately,
automatically which, arise from sales
 Provide to making usibility control ( before, stocks are controlled and informations
are given customer, products are sold.)
 Products (shipped on consingment) are followed base of customer at real time
Current and true data are transfered with using product confuguration
 Data are transfered to production planning with rolling code or Beko code
SD module was entegrated with Financial application. So, Automatic record was created.
 Financial record is created automatically in exit of product and metarial and sales
bill that are interested in sales
 Cost accounting records are made which is consistent and automatic
Provide to enter order easily owing to data flow from master data

When customers enter order with customer code,this code is translated to BEKO
code as outomatically by system.
 There are language and monetary unit in Customer master data . So, All document
and correspondence is automatically translated to language that is used between the
custumer and BEKO.
Product can be run on only one document which has diffrent tax proportion.
 When product is entered in same order/bill which has different tax proportion,
System calculate tax assesment as seperately.So,sum of true tax is calculated.
 Tax assesment is recorded seperately in automatic record that is made for
accounting.
Sales follow-up was provided at real time by sales information system.
 Sales report can be taken as consistently at real time by use of Sales IS
 Trend/ seasonal analysis and early warning system can be made. And also, plan
value can be compered with actual value.
Other benefits
 Sales are changed automatically production planning or requirement.
 Make a go of Shipping papers, stock management, series number and financial
75
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accounting integrity.
All of Relation of shipping papers-bill and financial accounting document are
consistent and on-line
Add demand of service is entered in system with using internet
Carry out export‘s logistics and operation integrity with sales and stock at single
system.
Communication of shipper is provided by internet
Packages are automated at SKD
Justice of spare part is followed which is created by customer agreements of outside
of country.
Demands of customer are conducted to BEKO with own product code
Encouragements are followed by import and export on system
Results of monthly sales are taken on-line at real time.
Reports and graphics are created with different view (group of product, group of
customer, special customer, country, mark, and ext… on base)
All waybills and receipts are taken over scope SAP
7.8.3
Material management
7.8.3.1 Scope of MM
Native material supply chain process
 Normal purchase
 Sub-contacts purchase
 consign purchase
 importation material supply chain process
Order for good and load follow-up
 financial planning to consider shipping agreement
 Customs entrance process, encouragement follow-up
 draw and payment planning, follow-up
 expense entrance, cost follow-up on base of documents and material
 vendor follow-up on base of documents and current account
Return process of material
 return of native material
 Claim process
Stock Management Process
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Sales or production order-exit of cost area
Stock transfer between the enterprises
Stock transfer between the warehouses
76
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Materials follow between the warehouses of service enterprise
GUI or interface between Daifuku, MHR and SAP
Counting process
Complexity of MM
• One company code, 5 production area
• 70 warehouse
• 6 purchasing organizations
• 48 purchasing groups
• 110 responsible of MRP
• 10 material type
• 43 evaluation class
•
•
ISIS special application in importation process
In 2003,
• 138 000 material
• 11 500 000 material movement
• 150 000 enter of bill
• 2400 vendor
• 45 500 information record
7.8.3.2 Organizational Structure and Customizing
Organizational structure is examined as company code, production area, purchasing
area, warehouse area and group of property in MM module.
Company code 0048- BEKO Electronic A.Ş.
Plant Production area was divided to six parts for different evaluation. So, price
differences were distinguished in different production area.
77
Figure 27: Production area
Storage Location: storage locations depend on company code and production areas
Transaction code: OX09
Menu Path: IMG > Enterprise Structure > Maintain Structure > Definition >
Materials Management > Maintain Storage Location
78
Figure 28: Storage lacation
Purchasing Organizations: Purchasing Organizations depend on company code and
production areas. These divisions provide to distinguish native/foreign and beko/others and
ext…
Figure 29: Pırchasing organization
79
Purchasing groups:
Figure 30: Purchasing group
Vendor Account Groups
Each vendor master data was assigned to account group. Account group determines
function of orientation as selection area, assign number, and ext that is connected with care.
Group
code
Account Group definition
1000
BEKO Yurt içi- Grupiçi Satıcılar
2000
BEKO Yurt içi- Grupdışı Satıcılar
3000
BEKO Yurtdışı-Grupiçi Satıcılar
4000
BEKO Yurtdışı-Grupdışı Satıcılar
5000
BEKO Yetkili Servisler
9000
BEKO Arızi Satıcılar
80
Figure 31: Account Vendor Group
Material Types:
Different materials were grouped to fit requirements of enterprise and be managed orderly
which has same properties. And then, Material was assigned to material types as raw
material, semi-product, product ext…
Metarial types display certain properties of metarial which is director in care of master
data.
M. Type code
M. Type definition
ISLT
İşletme malzemeleri
VERP
Abalaj
ERSA
Yedek parçalar
KMAT
Konfigürasyon malzemesi
FHMI
Üretim yardımcı araçları
FERT
Mamul
HALB
Yarı mamul
HAWA
Örnek ticari mallar
ROH
Hammadde
81
Property Group
figure 32: property group
7.8.3.3 Master Data
Material master data
 Material number
 Old material number
 Material short text
 Basis measurement unit
 Use of Dimensions / EAN (European Product Number)
 Property group
 Material is used between the production areas which is enable to configuration
 Purchasing group
 Processing time of material entrance
 Create automatic purchasing order for importation vendor and importation
material
 Use of quota
 Obligatory of Vendor list
 Record stock of quality control
 Use of producer piece number
82
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Use statistical property number and importation code member for international
commerce
Maximum store time and time unit
Evaluation class
Price management
Evaluation of price
Vendor (appearances of purchasing)
 Purchasing order monetary unit
 Payment condition
 Vendor scheme group

Use inspection of price date
Quota
Care of quota is made for material that is supplied from many vendors. Care of quota
(%100) is made for material that is supplied from one vendor.
Transaction code->meqm
83
Vendor list
Vendor list must be obligatory for rawmetarial and stock that is supplied from outside.
Because of this reason, Materials are supplied from supplier source that is seen fit.
There are delivery plans in native procuring. There is agreement in foreign procuring.
Transaction code -> me0m
84
Information Record
Information record includes:
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Purchasing order measurement unit
Tax indicator
Confirmation management information
Sending instructions
Incoterm
Note text of order and information
Creating of information record show to enable which supply from supplier.
Transaction code->me1m
85
Condition record
Additional costs of supply are followed as purchasing condition that is freight, insurance
and customs cost in SAP R/3.
86
7.8.3.4 Purchasing Document
Agreement: Importation document is agreement in R/3.shippings are followed as
purchasing orders which are based on these documents. So, Importation integrity is
provided during long period. And, control of prices and supply additional costs are
provided.
Shipping plan: Native purchases are followed with shipping plans. Seasonal price is
updated on these documents. While MRP run, System creates terms lines automatically for
shipping plan. These term lines are processed as purchasing order. Use of shipping plan
provide to
 Create term
 Calculate automatically price from price interval in waybill date when property
enters.
Terms lines shows which date, how many unit, which supplier firms
Purchasing Request: Purchasing request is constituted by MRP. Condition of
purchasing request takes quota and vendor list from agreement. Purchasing request can be
opened as manual and related to agreement.
Purchasing Order: There are two type of purchasing order.


Importation material shipping: Each of shipping is defined as Purchasing Order
in importation document. Their price and conditions is copied from agreement
automatically. Purchasing order can be opened directly in urgent purchasing which
take automatically price and other information from information record.
Non-programmed material purchasing: Manual P.O is opened for non
programmed material order as care-repair material. Price is entered with order
queen.
Non-programmed materials are followed as financial and logistic on only one
system.
Non-programmed materials as spare part are planned in SAP system
Non-programmed materials can be managed as stock or non-stock.
87
7.8.3.5 Processes for MM module in BEKO
General supply processes are showed by under figure.
88
In native country purchasing
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
lead time and quantity of shipping plan is created automatically by MRP.
Supplier can follow our demand as on-line.
Suc-contract‘s sub-item can be sent to vendor base on lead time and quantity. Too
consumptions are determined.
Vendor follows schedule and quantity of beko supply for self as on-line.
Enter of propery and bill and lead time and quantity of shipping plan can be seen as
entegrity.
Consign purchasing is planned for vendors. So, Optimization of inventory cost is
provided.
89
Importation purchasing process:
Property value and all of additional cost can be planned and followed base on PO
document
Properties are entered only one time and followed which in way, entrance warehouse,
customs.
Values of importation material are calculated automatically in eatery of property. Value of
exportation material is realized automatically in enter of material.
Deviation is oriented automatically in stock or account of difference of price which is come
into enter of bill.
Sub-contract process
Materials were created as raw-material (ROH) material type which is supplied as
subcontract. Product tree of these materials were defined which were selected sub-contract
as special supply type. In addition, item type of these materials was determinate as subcontract in delivery plan.
Sub-components are copied automatically as ―ensured material for vendor‖ to delivery plan
that is opened by MRP.
90
Consign Process
Some Vendor Firms take places to Beko Electronic A.Ş. Requirements of Material are sent
to this place by vendor firms. ―Consign‖ is selected as special purchasing in MRP interface.
Stock Process
Figure 33: Stock flow in BEKO
91
Figure 34: Statue of Storehouse in BEKO
Counting of stock:
Correction of stock is provided by automatic storehouse and SAP.
Differences are entered in SAP system which is created by periodical and yearly counting.
92
7.8.3.6 Tables of MM
93
EINA
Purchasing Info Record- General Data
EINE
Purchasing Info Record- Purchasing Organization Data
MAKT Material Descriptions
MARA General Material Data
MARC Plant Data for Material
MARD Storage Location Data for Material
MAST Material to BOM Link
MBEW Material Valuation
MKPF Header- Material Document
MSEG Document Segment- Material
MVER Material Consumption
MVKE Sales Data for materials
RKPF
Document Header- Reservation
T023
Mat. groups
94
T024
Purchasing Groups
T156
Movement Type
T157H Help Texts for Movement Types
MOFF Lists what views have not been created
95
96
A501 Plant/Material
EBAN Purchase Requisition
EBKN Purchase Requisition Account Assignment
EKAB Release Documentation
EKBE History per Purchasing Document
EKET
Scheduling Agreement Schedule Lines
EKKN Account Assignment in Purchasing Document
EKKO Purchasing Document Header
EKPO Purchasing Document Item
IKPF
Header- Physical Inventory Document
ISEG
Physical Inventory Document Items
LFA1
Vendor Master (General section)
LFB1
Vendor Master (Company Code)
NRIV Number range intervals
RESB Reservation/dependent requirements
T161T Texts for Purchasing Document Types
97
7.8.3.7 Benefits of MM
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Requirement of all purchasing as TV, non-TV, TÜG are coordinated on single
system.
This system provide to infrastructure of online communication for supplier,
transporters and customs with E-commerce philosophy
Planning, purchasing, passing through customs, accountancy, and finance use this
system which is single and integrity on supply chain process.
speed and easiness planning is provided base of logistics, cost
Data is processed only one side and time.
Interactive and comprehensive reports are provided for decreasing paper load.
Drudgery processes are decreased. So, Time is gained for planning and optimizing.
Partner program is provided for partner requirements of purchasing of importation
and native materials.
Process of Subcontracting and sent on consignment are followed easily.
7.8.4
Production Planning
Software seamlessly interfacing to SAP R3 to extend functionality for capacity planning,
process control and machine scheduling. Customized solutions for packaging production,
mail processing, print production, construction materials and metals manufacturing
Optimized production scheduling and production planning. Automated re-scheduling based
on actual production output from real-time production data from sensors and controls.
SAP R/3 has a highly integrated Production Planning System. The PP module is divided
into two Sub-modules, 'PP-PI' and 'Production General'.
The Production Planning module of SAP takes care of Master data needed like Bill Of
Materials, Routings and Work Centers and stores it in one separate component.
Various stages of the planning system can be planned by using components like
 Sales and Operation Planning
 Long Term Planning
 Demand Management
 Materials Requirement Planning
SAP has distinguished various styles of production like Kanban, Repetitive Manufacturing
and Production Order processing. It can take care of various planning strategies like 'Maketo-stock', 'make-to-order', 'planning without final assembly' etc.
SAP R/3 PP module can also plan Capacity. The capacity Planning sub-module takes into
account various capacities like pooled capacity etc.
98
Production Orders reporting has flexibility of confirming orders with or without backflush.
The material can be staged to production site from the Warehouse after releasing the order.
Costing can be triggered automatically by integrating the module with the Cost Accounting
Module.
Integration with other modules like Material management, Financial Accounting, Cost
Accounting, Human Resources & Development, Sales and Distribution etc adds on to
reliability of the production planning system in SAP R/3. The system is a real time system.
The changes in demand (cancelled or added sales order etc) and supply (high/low rejection,
early/late supply from supplier, breakdown of facilities etc) are reflected in real time and
the production controller can react fast to these changes.
SAP R/3 PP module is a very effective tool for production planning. As it gives many
alternatives, it must be configured correctly to reach optimum utilization.
7.8.4.1 Goal of PP
PP module includes all processes management of R&D without CAD integration. In
addition, Capacity planning sub-module is not used in BEKO SAP R/3.
PP provides to create order, follow-up and confirmation processes. At the same time,
Packet planning, supply planning, commercial product planning, region warehouse and
service enterprise planning are provided. FI works as integrity and real-on-time with SD,
MM, QM, PM, PS, FI, CO. And also, this integration includes all sales, material, service,
sub-contract and warehouse.
Complexity:
 Increasing kinds of product
 3 main group of product
 20 kinds of basis chassis
 Over 200 model of cabin
 Approximately 300 mark
 Approximately 80 countries
 Problems of supply time
 Increase Product-life
 Demand of change in product
7.8.4.2 Scope of PP

MRP Parameter

Product tree
o Production
o Service
99
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o Subconract
o package
Rolling code
condition of package selection
office ve production line
business Plans
change management
work flow for coordination their master data
Sales Planning
o TV
o PC
o Plastic
o Commercial Product
o Service
Package Planning
Production Planning
o TV
o PC
o Plastic
External Supply Planning
o TV
o PC
o Plastic
o Service
Planning between the enterprices
Forecast
o Service
Prepare material for storehouse
Integration of External production system
Production approval
Classification
Configuration
Change Management
Care of material master data interested in R&D, planning and production
Care of product tree
Care of businesses
Care of business plan
Constitute forecasting of sales and production
Constitute rough draft production planning
MRP
100
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Constitute detail production planning with scheduling , capacity balancing, order
Constitute order of non-continues production or continuous production
prepare material and stock management
Production follow-up and control
Product cost and accounting (cost of time of work, amortization and general
production was determined)
All production process report
Daifuku, MHR and QNX systems is entegrated with production
Bellow functions are used at SAP R/3 system for PP in BEKO electronic A.ġ
 Classification
 Variation Configurate
 Change Management
 Material master data
 Product trees
 business
 business plan
 Sales Planning/ rough draft Planning
 Material forecasting
 Demand Management
 Long Period planning
 Master production Program
 MRP
 Production Control
 Continuous Production
 Batch Management
 Workflow
 LIS
 ABAP/4
7.8.4.3 Organizational Structure
Production area and warehouse was defined. And Warehouse was connected to production
area.
101
Interface was prepared to integration of Total, MHR, Daifuku and YMAM warehouse
which is automatic warehouse.
MHR :( Automatic Product Warehouse) Product is read with barcode system (Product
Collected System) base on serial number.
Daifuku: (Automatic raw-material warehouse) Material transferring is provided. Raw
102
material was requested as to production plan and MRP.
YMAM: (Automatic Semi-Product warehouse) Semi products are followed with
barcode system base on serial number.
MHR
numbers of product
SAP
numbers of semi-
blokaj
product
information
warehouses‘
YMAM
activities
TOTAL
Figure 35: relations between SAP, MHR, TOTAL, and YAMAM
Enter of production order is equal number of MHR and SAP differences.
7.8.4.4 Material Master Data
Material master data is center of logistics system which includes data for different
department as Sales, Purchasing, Planning, Accounting ext.
Material type in scope of Sap R/3 PP module
 ROH ( Rawmetarial )
 VERP ( packege material )
 HALB ( Semiproduct)
 FERT ( Product )
 HAWA ( Commercial Product )
 KMAT ( enable to material configuration )
Interfaces of Metarial master data was prepared in PP module at implementation
phase.
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

Master Data Interface
Classification interface
MRP1,MRP2,MRP3,MRP4 interfaces
Forecasting interface
Business Plan interface
Quality Control interface
103
Product and semi-product code system was changed. Sub-contract material was defined as
raw material. Use of batch was started. Material code was created to configuration of
product (TV, PC ext). Care systematic of Material Master Data was organized and
controlled with workflow.
7.8.4.5 Change Management
Change managent is used to keep and report change record in system. This change is made
in product tree and class and characteristic.
Related object adapts integrity and automatically in SD, Demand management, MRP,
Production Control, Product cost accounting, Quality control, Material management and
ext…
7.8.4.6 Product Tree
Care of product tree is made base on production area. Product tree is followed in change
management. Product tree provide to super BOM for product. Substitute material can be
used which has got same product tree structure. Table was constituted for substitute
material. Products tree can be cared.
7.8.4.7 Business area and Production line
Care of scheduling, capacity planning, cost accounting and business plan was facilitated.
7.8.4.8 Business Plan
Business Plan includes processes order, business area assign, directions and production
assistant tool. Value of Activity is cared. So, Production order scheduling, capacity and
cost accounting are provided as truth.
7.8.4.9 Classification
Use of Classification provide basis to determine rolling code, select packet, configuration
of variance.
7.8.4.10
Variant Configuration
It provide to configuration for product as TV, PC. Attribute of product is explained with
characteristic value. Sales order is constituted with making evaluate of characteristic.
Forecast value is constituted with evaluating of characteristic. Planning is made on
package. Product specifications are changeable. So, problem of care of product tree are
constituted. In addition, Sales order is created as to evaluating of characteristic on internet.
7.8.4.11 Planning
Sales, Material, sub-contract, service and other warehouses are followed by SAP R/3. So,
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requirement plan includes all warehouses. In addition, each region and service enterprise
can be planned.
Production planning and work plan is important to time of supply and scheduling. So,
Planning is made base on plan and consumer. MRP, MPS, LTP is used in BEKO.Gain of
LTP is yearly budget, ABC analysis and simulation. Plan can be constituted base on
production area and MRP.
Figure 36: Requirement plan flow
7.8.4.12 Production Plan
TV and plastic production is managed with continuos production. PC, electronic pilot
production and rework, demonte order are managed with non-continuous production.
Materials are transferred to stock house from Daifuku with list of prepared material. Out of
Daifuku‘s materials are directly pull in own material warehouse. When, Semi products are
pulled, numbers of semi-products are increase automatically.
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figure 37: transfering process to Daifuku
7.8.4.13 Production Management
Entering of product and semi-product are transferred to SAP R/3 with collecting data
system.
Figure 38: Planning-flow in BEKO
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7.8.4.14 Some PP Interfaces
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7.8.4.15 Benefit of PP
•
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•
All of TV, PC, commercial product, service, and packet planning and production
process are taken in system.
Worthless process and lost time are cancelled for R&D.
Rolling, product and semi product code was changed. So, coding development was
provided flexibility.
Repair of production and service tree are made on same product tree. So, service
product tree was taken in system.
All of sales, service, production and other warehouse are followed at real time.
And, these warehouses are added to planning.
Plastic raw material are not mixed in silo
Tube differences create stock deviation that is cancelled
Truth of DST / SMPS stock was provided
Material states as cancel, pilot, bloke and ext. are controlled in system
Production cost follow-up was provided at real time
Numbers of production are taken at real time
Flexible and short report was provided
Reports run fastly
SAP provide to openness for development and other system
Passing system was provided from person
7.8.5
Financial Accounting
FI module offers open and integrated data-flow which is integrated module in SAP R/3 .So,
international requirements is provided in area of financial accounting. In addition, Decision
processes are facilitated which are dependent on financial accounting.
Processes are accounted at the same/real time which is realized by SD and MM.
7.8.5.1 Scope of FI
Scope of FI was determined by BEKO. These are:
 General accounting
 Customer accounting
 Integrating with SD-MM-CO module
 Credit accounting
 Service and region accounting
 Personnel current accounting
 Interface of Bilin (HR software), Amortization, mould and Yabis
Use of GL, AP, AR, AM, SL was decided in FI module.
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FI-GL: (general ledger)external enterprise accounting and detail of these area‘s accout.
FI-AP: (Vendor) accounting data management. This module works integrity as dependent
on Purchasing module in MM.
FI-AR: (Customer) accounting data management. This module works integrity as
dependent SD.
FI-AM: (Asset management) include processes of assets which is calculating of
amortisement, interest and other value. These processes are followed in FI-AM submodule.
FI-SL: (special ledger): include summary data which is come from different application.
Levels of these data detail are determined by user.
7.8.5.2 Organizational structure
Only one company code and business area was defined in BEKO electronic A.Ş which was
organization unit.
Rate of maximum exchange was defined 5%. If, Deviation of rate of exchange is more than
%5, System gives alert.
Variation of financial year was defined as ‗K4‘ (year + 4 special periods).
Local monetary unit was defined as TRL. Additional monetary unit is USD and EURO.
Summary:
Company code
‗0048‘ BEKO Elektronik A.Ş.
Control code
‗0048‘ BEKO Elektronik A.Ş. Kontrol Kodu
Business area
‗1000‘ BEKO Merkez İş alanı
Variation of area state ‗BEKO‘
Variation of record period
‗BEKO‘
Variation of finacial year
‗K4‘
Proposal of financial year
Proposal of Valör date
7.8.5.3 FI module architecture
Customer/vendor, credit, asset are followed in Sub Ledgers.
Cost Center was transmitted to CCA (Cost Center Accounting)
7.8.5.4 Main Account Accounting
Master Data
Account plan is used in BEKO SAP R/3 system which is BTHP (Beko Single regularity
account Plan). BTHP decomposes customer current account, cost center, credit account and
asset card. So, unnecessary detail was prevented. Logic of account break is 3-2-2-3
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Account
plan
Group of account
Definition
First account Last account
BTHP
BLNC
Genel ana hesaplar
0
9999999999
BTHP
DVAR
Duran varlık hesapları
2500000000
2699999999
BTHP
GTBL
Gelir tablosu hesapları
6000000000
8999999999
BTHP
MLZM
Malzeme yönetimi hesapları
0
9999999999
BTHP
NAKT
Likit fonlar için hesaplar
0
9999999999
Account of Transferred Profit/loss was defined as below
Type income
Account plan Transferred P/L acc. account
BTHP
5900000000
X
Commercial Process
All accounting processes are kept in SAP R/3 in Beko. Processes of Account document are
realized as manual and collected input. Processes of SD and MM module create
automatically accounting document in scope of integration.
Record keys and types of document are used in standard of SAP R/3.
Record keys example:
Record key
Defination
D/C
Use
00
Hesap tayin örneği
-
-
01
Fatura
Borç
Müşteri
Type of document example:
Type of doc.
Definition
Type of doc.
definition
AA
Duran varlık kaydı
RA
Sonr.alc.dknt.hsplş.
KDV and STOPAGE
KDV keys are used which come from standard of SAP R/3. These were developed.
KDV is calculated and been accountancy automatically. Many KDV indicators (rate of
KDV) are used.KDV indicator example:
Language Shape
Tax ind.
Definition
Account
Account
110
TR
TAXTR B2
%17 KDV, ihracat için
1000101220 1000101210
Configuration of Stoppage was made. Sum of Fund are calculated automatically by BEKO
which is calculated with stoppage tax and tax for purchasing dependent on stoppage. And
than This sum are copied to account.
Configuration was made in ‗Extended Stoppage Tax‘
One or more KDV indicator can be used in the same document. KDV and stoppage can be
calculated as depend on same item
Stoppage indicators are:
Stoppage
indicator
Definition
Tax assessments Rate
F1
Stopaj hesaplaması
Stopaja tabi tutar
20%
F2
Fon hesaplaması
Stopaj tutarı
10%
Balance
Balance can be taken as different version (UMS, legal and ext…) from SAP R/3 at any
moment. Special ledger was configured for Ums balance.
7.8.5.5 Vendor Accounting
Vendor group are used for vendor accounting which is defined in MM module. So, master
data is vendor group. Commercial processes are:
There are two types enter of bill that was determined by ‗as-is‘ ouyput.These are:
 Programmed enter of bill:
 Non-programmed enter of bill
Bill control and payment processes are used.
7.8.5.6 Customer Accounting
Customer group are used for customer accounting which is defined in SD module. So,
master data is customer group. Commercial processes are:
 Enter of bill (SD or FI)
 Money received (condition of payment is determined)
 Credit control
7.8.5.7 Closing and Report Processes
Closing processes and all report is made on SAP R/3. In addition, Reporting can be made
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as TL, USD and EURO.
7.8.5.8 Benefit of FI
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System of accounting are provided with many monetary unit
FI module provide synchronous accounting record by logistics system
Current accounts of customer and vendor are followed with open pen method
Account plan is fitting regularity of Koç Holding and simple are provided by this
system, which responds with requirements.
Periodical processes are made outomaticaly.And also records constituted
Integration of BSY web interface was provided for service accounting
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Accounting record is provided at same time in region.
Detail of authority and enterance control is provided
7.8.6
Controlling
7.8.6.1 Goal of CO
CO module aims to collect requirement data that are used to constitute report and transmit
true information for BEKO management.
CO module aims to be early warning mechanism.
Income and expense are examined and commented as fitting BEKO requirements by CO
module. This activity is basis goal of CO module.
7.8.6.2 Scope of CO
CO Module includes these lower modules in beko
 Cost Central Control (CCA)
 Product Cost Accounting (PC)
 Profit Center Accounting (PCA)
 Profit Analysis (PA)
Central Cost Control (CCA) and Product Cost Accounting (PC) were adapted in BEKO
electronic at first phase.
7.8.6.3 CO-CCA
CO-CCA provides to cost process control, integration and report
CO is important for decision and support process in BEKO. In addition, Cost Center
facilitates to control of Cost-flow as to different criterions in company organization. Use of
CCA provide to simplify kind of cost for cost center follow-up and to follow cost.
Processes are seen owing to itegration of FI,AM and Logistic (PP,MM,SD,PS,SM,PM)
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module in cost center at real time
Figure 39: CO integration
7.8.6.3.1
Organization and Master Data
Control code: Control code was defined as 0048. Monetary unit was defined as TRL.
Cost center: Cost centers were defined in structure of hierarcahy. So, Bugdet and actual
follow-up can be made base on cost center to consider company organization. Under figure
is cross section from hierarcahy of cost center in BEKO
organization.
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Kinds of Cost: Expense records are made on cost center and kind of cost in cost center
accounting.. So, Expenses and expense bugdet are followed as to cost center, kind of cost
or to cost center/kind of cost.
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Kinds of activity:
There are two type activities that are worker‘s pay and machine‘s time. In addition,
preparation time and natural-gas and others can be defined.
Statistical indicator:
Cost was distributed to production cost center from general cost center with determined
parameter that was defined as department‘s area (m2) and number of personnel. These
criteria is planned to cost centers in head of period. In addition, realized value can be
entered in end of period. Distribution can be made on machine‘s and worker‘s time.
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Figure 40: distribution of cost
7.8.6.3.2
Processes
Budget of Cost Center:
Cost (expense) budget is updated in head of financial year. Processes of budget are made
base on cost center by each department without SAP in different software. And than budget
record are transferred to SAP. Only, Budget of personnel‘s fee is made by a center unit.
Vehicle expense follow-up:
Internal order was opened for each vehicle. Plan and actual cost was transferred to this
order according to type of cost (gasoline, insurance, repair ext…) on related kind of cost.
Internal order is used to distinguish costs in a determined business‘s item which is CO
object.
Vehicle, project, training and gasoline are followed with Internal order.
Care and Repair cost:
Internal order was opened base on each machine for care and repair cost
Travel cost follow-up:
All travel follow-up was realized by HR module. Only Type of information and personal
master data were constituted in HR module. And also, Travel cost module was configured.
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Figure 41: Travel cost
Global expense follow-up:
Personal transportation, food, electric, water and same expense are followed with
purchasing-sales on kind of cost that is related direct cost center in MM.
Quality control cost:
Product quality control is followed on direct product cost center. Others are followed on
cost center. Product costs include these costs.
Distribution of Budget of General Cost:
Expense (Cost) is distributed to production cost center base on number of personal and area
(m²) which is in general cost center.
Activity unit cost:
Cost center inherit Plan activity time from PP module. And then, these times are distributed
to cost centers. Distributed activity times are divided by cost that is determined in direct
production cost center. And Activity unit cost is determined.
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7.8.6.4 CO-Product Cost Accounting (PC)
7.8.6.4.1
Organization and Master Data
Strategy of evaluation of material:
Semi product and product‘s costs are followed on standard cost. Raw material‘s cost is
followed on changeable average cost. Strategy is used during evaluation which is
determined in material master record.
Cost porter object:
Cost porter object provides to load cost on product.
Constituted product cost is colleted in product order for intermittently production.
Constituted product cost is colleted in cost porter object for serial production.
Cost Accounting method:
Structure of quantity and cost accounting method are used in Cost Accounting. Approved
product tree and approved business plan is considered for cost accounting. Cost of activity
is determined upon planned unit price. In addition, other material costs are transmitted to
financial accounting.
7.8.6.4.2
Processes
Standard cost accounting:
Semi Product standard price =Rawmaterial+Worker‘s pay+General expense
Product price= Rawmaterial+Worker‘s pay+General expense+ Semi Product
Raw material = BOM quantity * changeable average price
Worker‘s pay= process time*unit cost of activity price
General expense=process time*unit cost of general activity
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Figure 42: Standard cost accounting
New product cost for R&D
New product cost accounting can be simulated in SAP. Imaginary product tree and
worker‘s pay, general cost are used. And than total cost can be seen.
Figure 43: new product cost calculating
Actual product cost:
Figure 44: Actual product cost
Mark standard cost:
Standard cost is controlled after Standard cost is assigned which is recorded in area of
future price.
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Approve standard cost:
Approval process transfers to area of standard price in material master record from future
price
Sub-contract material cost
Sub-contract material cost is determined automatically by MM module.
Line-residual material
Line-residual material cost is determined in stock account at end of period.
Some used transaction example of SAP in BEKO electronic Aġ: CKM3 and KOB1
Figure 45: CMK3
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Figure 46: KOBI
7.8.6.5 Profit Analysis (PA)
Profit center was created to see profit base on product group, customer and ext...
7.8.6.6 CO Information System
Integration :CO Report system has got ―drill down‖ attribute.
Access info on-line: whatever proceess is reflected to report in SAP.
Easy configuration/development: CO report was written with ―Report Writer‖ tool. Nonstandart report was written with ―Report Writer‖ tool or ABAP.
7.8.6.7 Benefit of CO
All records are constituted automatically as same time in CO module that is constituted in
different application.
Actual record is mixed with planning data which is constituted automatically in CO
module. And then, deviations are reported.
Cost center information is kept in different hierarchies which come from account of CODA
system. So, Account plan is purified from this load.
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7.8.6.8 Benefit of CO-CCA
Income and expense are examined as parallel structure and operation of BEKO.
Interested units were built base on modules which answered different using area.
Organizational units are control code, standard hierarchy, cost center, in-order. Data of
these organizational units are followed with types of income and expense. And also, Data
of these organizational units are reported with determined method.
Plan data are compared with actual record base on different.
7.8.6.9 Benefit of CO-PC
Movements of sales, other material, semi product and product are taken from SD and MM.
Product tree are taken from PP module. And, costs are taken from accounting module. And
then all of these are collected by CO-PC at real on time.
7.8.7
Quality Management
MM
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Manages quality information for materials, vendors and manufacturers
Releases vendors and manufacturers; Monitors their QM systems
Manages the release status of delivery relationships, for example model or series
deliveries
Evaluates vendors on the basis of quality using quality scores from audits, goods
receipt inspections, and problem notifications
Dispatches quality documents (quality agreements, technical delivery terms) when
requests for quotations and purchase orders are received
Requests quality certificates and monitors their receipt
Triggers source inspections to be carried out at the vendor‘s premises before the
vendor is due to make a delivery
Triggers inspections for goods movements, for example, goods receipt
Blocks payments until inspection lots are accepted
Manages the inventory of goods during the inspection and takes the goods being
inspected into account for materials planning purposes
Transfers inspection results to batch characteristic values
Carries out batch determination using characteristic values from quality inspections
Monitors the shelf-life of batches and the deadline for recurring inspections
Manages problems using quality notifications and processes complaints against the
vendor [21]
Production
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Integrates inspection planning and work scheduling
Handles inspection characteristics and setup characteristics for operations
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Manages quality inspections for manufacturing orders
Handles in-process inspections during production at freely defined inspection points
Triggers final inspection upon goods receipt from production
Manages partial lots of a material during production that differ in quality and
assigns partial lots to batches
Confirms quality and quantity information for manufacturing orders
Monitors production quality with the help of control charts and determines process
capability scores
Manages problems in production using quality notifications and by processing
corrective tasks [21]
SD
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Manages customer-related quality information
Triggers an inspection at shipping when the delivery is created
Creates quality certificates with the delivery
Manages problems in sales & distribution with the help of quality notifications and
by processing customer complaints [21]
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Settles appraisal and nonconformity costs
CO
7.8.7.1 Goal of QM in BEKO
Processes of all enter quality control can be executed integrity with depend on modules at
real time.
7.8.7.2 Scope of QM
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Quality controlling process at supply chain.
Quality planning
ISO 2859-1 preparation of sampling and quality control according to sampling
procedure
7.8.7.3 Processes of QM
Control plan was made for production line. EQL level and size of party are determined.
Refuse/accept aproval is entered as manual by personal. VTF , SAP list, TDT, Package
,acceptance sampling control are made for party.In addition Approval of Blockage and
Rework process is made on SAP R/3. If defective are found, definition of defective,
explanation, source of defective and type of defective are entered by personnel on SAP QM
module interface.
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7.8.7.4 Benefit of QM
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Entrance quality control processes are followed as other processes integrity from
only one system.
Quality controls of all material, which are procured from subcontract and procurer,
are planned base of vendors.
ISO 2856 acceptance sampling procedure can be processed by SAP R/3 which is
practiced by BEKO.
If Quality Control department decide to non-use material, Material Stock
movements of material are prevented. (For Example: refusal material is not stored
in Daifuku)
Processes of native and importation refusal are followed easily. And, optimization
of these processes was provided.
Integration of automatic warehouse and other warehouses and quality control
processes is provided.
Use of SAP prevents to fill approximately 60000 forms as manual. In addition,
BEKO electronic A.Ş save money from paper and edition cost for these forms.
Place and loose-leaf binder saving is provided in archives.
All entrances quality records are kept in safe and fast reachable environment
7.9. Special software for BEKO electronic A.ġ
Standard SAP modules don‘t provide some requirements of BEKO that is determined at
gap analysis phase. Special software was written for SAP-integration with ABAP
programming language by consultant firm and KOÇ system.
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Figure 47: ABAP (transaction SE38 ->SE80)
SD:
•
Export process module
• Encouragement follow-up and control module
• foreign customer informed
FI/CO:
• Travel module: This module was written to detail follow-up of travel .
• Export revenues module: Compare EFT text and system‘s bill
• Insurance follow-up module: number of insured is changable and too many. So, this
module is requirement of BEKO to easily insurance follow-up.
• UMS module: This module written by KOC system which provide to report and
evaluate as to UMS ((IAS) International Accounting Standart). Prices of properties
are smoothed as to inflation.
• Financial credit module: provide to detailed credit follow-up. This module sees
•
future cash-flow and then, provide to use of credit.
Counting module: provide online monitoring for counted property
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7.10. Post-implementation
After, Consultants has came during 6 months , BEKO A.Ş passed go-live. Online support
system is used in BEKO.
7.10.1 Advise for post-implementation
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•
•
•
First 3 month is critical. Because of this reason, there are change resistance and old
habit and prepared master data.
True data are entered system at real time.
Use of workflow is started to easiness for personnel
Reports of master data control are prepared at first
Basis follow-up is made with passing on server. And, Fine tuning is made
continuous at first months
Powerful ABAP software personnel.
Powerful IT support.
Demand of many report are scrutinized as to be faithful standard report by central
staff.
Old systems are canceled at same day.
Parallel passing must not been made.
Go-live after consultant support is continued at a period.
7.11. Utility of SAP at BEKO
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Increasing of Performance and productivity, reporting easily, open system
architecture are provided as basically.
Strong ERP infrared was provided for e-commerce concept of Koç group
Integrated structure was provided at real time.
Adaptation of Best Business Practices was provided in BEKO
Easily integration was provided between the open system architecture and other
system as reporting, automation, application base on web.
SAP comprises all application in e-commerce concept as B2B, CRM, and SCM
which is accepted as global. So, utility of e-commerce was provided.
System that follows change as active and renews self was provided in new
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economy.
Instead of Coda, A6, Rolling, Oracle system was replaced with SAP R/3
Applications were collected in same platform.
Confirm was gotten easy.
Easy Query was provided by addition side in SAP
Integration of between the forecast and demand and integration of between the sales
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and shipping was provided.
Change management was used.
Using of equivalent tree configuration was started.
Variant product tree was started to use.
Sub-contact product tree was started to use. So, flexibility of internal and subcontract product and semi-product was provided.
Production planning process was speeded up doubled.
MRP was 3 day when Old system was being used. Now, MRP is only 2 hours
Parallel and continuous program run was provided.
Master flow as sales as shipping was taken in SAP
Communication was provided from different location and country.
Integration of native assistant industry was provided by Supplier Portal
Revenue and payment are sent to bank at electronic enviroment. And also, assistant
industry is informed with e-mail.
Only one information resource was provided owing to single database.
Every integration and easy usage was provided by open system proporty of SAP
Easy reporting was provided.
Detail analsis was provided at whatever query.
Order mail is sent to supplier automatically after MRP.
Sharing of ship info was provided with customer at real time.
Automatic confirmation of production was provided
Automation system was gotten better owing to control serial number.
State and loacation of raw metarial follow-up had been provided by ISIS module
Integration was provided with automatic product and material warehouse base on
serial no.
Sharing of true information is provided between the sales and production.
Timing of product and shipping was seen to got better with customer‘s eyes.
Entering of conjectural order for goods offer information for planning (6 month).
New product presentation was gotten better serious.
Increase productivity was provided by Supplier Portal (e-butce, e-fis) with open
stock, order for goods, current account and quality information.
• when, bill is entered in regions, this information come to SAP
7.12. Project Cost
Cost of SAP implementation is approximately 1 million $ in BEKO electronic A.Ş which
include cost of project team, training, customizing software, consultant, hardware.
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Figure 48: distribution of project cost
7.13. Future Plan in BEKO A.ġ
Aim of BEKO A.Ş that comprise grundig integration, project program with sap integration,
business intelligent system, profit analysis module, PM module, SEM , developed
analytical CRM in SAP development. BEKO A.Ş is planning to realize these goals. BEKO
A.Ş is studying on these goals that will be realized at near time.
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8. CONCLUSION
This project result, Investment of SAP R/3 implementation was converted to strategic,
financial, operational and technical benefit with true ERP selection and successful
implementation in BEKO electronic A.Ş that reaches aim of SAP implementation.
So, BEKO electronic A.Ş benefits from advantage of SAP and ERP.In this result,
Increasing of Performance and productivity, reporting easily, open system architecture,
data integrity and other benefit are provided to BEKO electronic A.Ş with selection of true
ERP package (organizational fit of ERP), use of true implementation technique by SAP
R/3.
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9. REFERENCES AND BIBLIOGRAPH
[1]Enterprise resource planning: Implementation procedures
and critical success factors (elsevier)
Elisabeth J. Umble a, Ronald R. Haft b, M. Michael Umble a,*
a Department
of Management, Hankamer School of Business, Baylor University, P.O. Box 98006, Waco, TX 76798-8006,
USA
b Huck
Fasteners, 8001 Imperial Drive, P.O. Box 8117, Waco, TX 76714-8117, USA
[2] Issues in implementing ERP: A case study (elsevier)
Purnendu Mandal a,*, A. Gunasekaran b
a Department
of Management and Marketing, Lewis College of Business, Marshall University, Huntington, WV 25755, USA
b Department
of Management, University of Massachusetts, North Dartmouth, MA 02747-2300, USA
[3] THE STRATEGIC DESIGN AND DEVELOPMENT OF ERP AND RTMS
JOHNNY K. C. NG* and W. H. IP{
Department of Manufacturing Engineering, The Hong Kong Polytechnic University, Hung Hom,
Kowloon, Hong Kong, PR China
[4] The impact of organizationsize onen terprise resource planning (ERP) implementations
in the US manufacturing sector(Pergamon)
Vincent A. Mabert, Ashok Soni∗, M.A. Venkataramanan
Operations and Decision Technologies Department, Kelley School of Business, Indiana University, Bloomington, IN 47405, USA
Received 19 February 2001; accepted 29 January 2003
[5]http://www.erpfans.com/erpfans/erpca.htm
[6] http://www.saptech.8m.com/erp_history.htm
[7] http://types.erp.cc/erpinfo.htm
[8] http://www.expressindia.com/newads/bsl/advant.htm
[9] http://www.erpassist.com/pub/erp_overview.htm
[10] http://www.amrresearch.com
[11] http://www.vnunet.com/News/1112618
[12]http://www.thespot4sap.com/Articles/TheBasics_1.htm.
[13]http://www.sap.com
[14]http://www.britannica.com/bcom/magazine/article/0,5744,228768,00.html?query=sap.
[15]http://www.sap.com/company/profile_long.htm.
[16] http://www.ryerson.ca/~ppille/sap/index.htm
[17] http://www.sts.tu-harburg.de/~f.matthes/r3.html
Prof. Dr. Florian Matthes
132
Technical University Hamburg-Harburg
SIGMOD‘98 Seattle
May 1998
[18] Florian Matthes Stephan Ziemer
Technical University Hamburg-Harburg
EDBT'98 Valencia
March 1998
[19] http://134.198.33.115/sap/saptutorial.htm
[20] www.sap.com
[21] www.sap-img.com
[22] www.planetsap.com
[23] Beko Electronic A.Ş
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10. APPENDIXES
10.1. Dictionary
A
ABAP:
Accounts
Payable:
Accounts
Receivable:
Advanced Business Application Programming. ABAP is a computer programming language that SAP
supports. ABAP can be used used to create, display, and print custom reports.
(AP) Accounts Payable is the process of receiving invoices from vendors, paying them, and settling
them. Postings made in Accounts Payable are simultaneously recorded in the General Ledger (GL). It
is also an integral part of the Purchasing system, managing deliveries and invoices according to
vendors.
(AR) Accounts Receivable is the p rocess of sending invoices to customers, receiving payment, and
applying payment to the proper open receivables. All postings in Accounts Receivable are also
recorded directly in the General Ledger (GL). The functionality provides a range of tools that you can
use to monitor open items, such as account analyses, alarm reports, due date lists and flexible dunning
program.
A cceleratedSAP. It is an SAP tool that assists in the implementation of SAP solutions.
ASAP:
“As-Is”:
Asset
Accounting:
Authorizations:
Term used to represent the current system and processes before the new system and revised
processes are implemented.
(AA) The Asset Accounting (Fixed & Moveable Assets) component is used for managing and
supervising enterprise-wide fixed & moveable assets. It serves as a subsidiary ledger to the General
Ledger (GL), providing detailed information on transactions involving fixed & moveable assets. It
supports the entire lifetime of the asset from purchase order or initial acquisition (asset under
construction), depreciation calculation through to final disposition.
In the SAP system each user has an authorization (or security) profile that is based on his/her role.
Authorizations allow users to run transactions and view data.
B
BASIS:
BASIS is a set of middleware programs and tools from SAP that provides the base (hence the
name) that enables SAP applications to operate seamlessly across operating systems and
databases. It is also the functional area responsible for the setup and ongoing maintenance of
the client landscape within SAP
BPML:
Business Process Master List. It provides a statement of project scope in terms of a listing of
SAP transaction codes, categorized by functional area and process group. During the
Realization Phase, it provides a point of origin for major project work activities, including
configuration and building test cases for unit & integration testing.
BPP:
Business Process Procedure. BPP details each “to-be” business process. It is used as input
for developing configuration and end user procedures and in preparation for testing.
Business Blueprint Doc:
Business Blueprint document provides a detailed description of the business processes to be
implemented within the SAP system. It is created during the Business Blueprint phase.
Business Blueprint
Phase:
Business Process
The Business Blueprint Phase is considered the 2nd phase of the SAP implementation
lifecycle. During this phase, the Business Blueprint document is created. Some of the key
activities include: conducting workshops to identify and resolve process and functional gaps;
defining the UC Process Model (based on the R/3 Reference Model); identifying organization
impacts; and setting up & installing system development environment.
UC employees who are responsible for ensuring that their process meets the approved
requirements.
Owner:
BW:
B usiness Information Warehouse. BW is a reporting database in SAP that enables business
users to generate queries and reports.
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C
Change Management:
Systematic and planned implementation of activities and actions targeted to specific
audiences, which move an organization to accept and embrace new behaviors, new tools,
new processes and/or new orientations.
Chart of Accounts:
A classification scheme consisting of a group of General Ledger (GL) accounts. Chart of
Accounts provides the framework for recording dollar values, in order to ensure an orderly
rendering of accounting data.
Configuration:
The way a computer or network is set up, including both hardware and software. Process of
customizing built-in SAP features, options, tables, edit rules, screen layouts and messages
to meet the requirements of UC.
Controlling Module:
(CO) Controlling Module provides managerial monitoring and reporting for revenue and
expenditure activity for an organizational unit. It also supports one method of allocating
expenditures or revenues to their ultimate funding source. Sub-modules include Cost
Center Accounting (CCA) and Internal Orders (IO).
Conversion:
The process of converting (transferring and re-formatting) data from one system to another.
During data conversion, the data fields are “mapped” from the old system (i.e. the CUFS
account code) to the new system (i.e. the SAP Account Code).
Cost Center Accounting:
(CCA) This is a cost collection pool for an organizational unit that represents a separate
location where costs are incurred. Cost centers (departments) form the basis for cost
collection and can be set up based on: 1) functional requirements; 2) allocation criteria; 3)
physical location; or 4) responsibility for costs.
D
Data Mapping:
Deliverables:
Taking data fields from the CUFS system and
assigning them a corresponding data fields in the
new SAP system.
The output resulting from the completion of a
major activity. UC Flex Financials will produce
a number of deliverables including a Business
Blueprint and, of course, the final configured
SAP system .
E
Endowment:
Enhancement:
Endowment is a permanent fund where gifts to the UC
fund are held in perpetuity and where earnings are used
in accordance with the donor’s specified wishes.
In SAP-speak, an enhancement refers to a custom program that
is written to enhance the functionality of the SAP system .
ERP:
Enterprise Resource Planning. ERP refers to a category
of software packages that are designed to integrate
functions across an organization onto a single computer
system.
ERP Project Lifecycle:
A unique implementation lifecycle has been developed
for ERP projects. The phases are: Project Preparation;
Business Blueprint; Realization; Final Prep; Go Live &
Support; and Sustain.
ESC:
Executive Steering Committee. Their primary UC Flex
Financials responsibilities include: monitoring project
budget, scope and schedule; committing required
resources to the project; maintaining congruence
between UC Flex Financials and other associated
initiatives; monitoring and mitigating risks; assessing
organizational impacts; resolving escalated issues; etc.
F
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Final Prep Phase:
Financial Accounting
Module:
Fixed & Moveable Assets:
UC Flex Financials :
Final Preparation Phase is the 4th phase of the SAP implementation
lifecycle. It is focused on completing final preparations for the go live of
the new SAP system. Some of the key activities include: testing the
system; holding end user training sessions; completing system
management & cutover planning; completing data conversion; and
establishing system support infrastructure. At the completion of this
phase, UC will be ready to run its business in the SAP R/3 production
system.
(FI) An integrated suite of financial applications in the SAP system
made up of sub-modules that represent different areas of an
organization’s financial business. Sub-modules include: General Ledger
(GL); Special Purpose Ledger (SL); Accounts Payable (AP); Accounts
Receivable (AR); Asset Accounting (AA).
(AA) The Fixed & Moveable Assets (Asset Accounting) component is
used for managing and supervising enterprise-wide fixed & moveable
assets. It serves as a subsidiary ledger to the General Ledger (GL),
providing detailed information on transactions involving fixed &
moveable assets. It supports the entire lifetime of the asset from
purchase order or initial acquisition (asset under construction),
depreciation calculation through to final disposition.
Formerly FSRP, Financial System Replacement Project. UC’s initiative
to replace the CUFS system and streamline and standardize key
business processes in the areas of Accounting, Budgeting, Grants,
Endowments and Procurement.
G
General Ledger:
Go Live:
Go Live & Support Phase:
Grants Management:
(GL) General Ledger provides a complete balanced financial ledger for the
University as a whole without a fund perspective. It is the original entry ledger
for financial transactions resulting in postings to all other modules.
Date where the SAP system will be used in a production capacity. UC Flex is
scheduled to Go Live on July 1, 2005 .
Go Live & Support Phase is the 5th phase of the SAP implementation lifecycle.
The purpose of this phase is to move from a pre-production environment to a
live, stable production operation. Focus is on implementation of a help desk
and support infrastructure for end users.
(GM) Grants Management accounts for grants from government and other
similar bodies, such as for scientific research.
H
HERUG:
SAP Higher Education and Research User Group is an international organization
whose members are degree-granting Higher Education and Research Institutions
and who are SAP customers with signed contracts for the productive use of one or
more R/2 or R/3 software modules. The University of Cincinnati is a member
institution of HERUG. To find out more about HERUG, visit their Web site.
I
Interface:
An interface is a program that sends or receives data between two other software
programs. In the case of UC Flex, it is SAP sending and receiving data from other
university programs.
Internal Orders:
(IO) Internal Orders are used to plan, collect and monitor costs for specific
enterprise wide operations, such as unique departmental programs. They allow an
organization to control and monitor the related costs from initial inception of a
program through planning and posting of actual costs.
M
Master Data:
Data relating to individual objects that remain relatively fixed over a period of time,
such as Chart of Accounts, Vendor Master and Customer Master.
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Materials Management:
Methodology:
(MM) SAP R/3 module that provides UC Flex’s purchasing/procurement functionality
(amongst other things).
A set of steps designed to guide an ERP implementation, which are tailored to meet
the specific needs of each project. A methodology provides a consistent, structured
and practical approach to what needs to be done, when it should be done, how it
should be done and how it should be controlled.
Milestone:
A significant point in the implementation lifecycle, such as the end of a phase or the
due date of a key deliverable.
mySAP Business Suite:
mySAP Business Suite is a collection of integrated software solutions that includes
an ERP component. CUFS will be replaced with a mySAP Business Suite solution.
P
PDD:
PMO:
Portal:
Process Flow:
Business Process Owner:
Project Charter
Project Preparation Phase:
Project Sponsors:
Process Definition Document. PDD provides a detailed description of the in-scope
business process or business process groups.
Project Management Office. In the case of UC Flex, it is run by Project Managers
responsible for: defining the implementation strategy; preparing & maintaining the
project plan, budget, work plan & Charter; supervising project activities & production
of all deliverables; acquiring, assigning and managing project resources;
communicating project status to ESC, Project Sponsors & Project Team; and
resolving/escalating project issues.
A gateway or entrance to a system or number of systems. The SAP Enterprise
Portal will be used to provide access to the mySAP applications (e.g. SAP R/3, SAP
BW).
A graphical or textual representation of the specific inputs, processing steps, options
and outputs associated with business processes.
Business Process Owner is the UC staff member most directly responsible for
carrying out a business process (i.e. a group of business activities undertaken by an
organization in pursuit of a common goal). Generally, Business Process Owners are
members of UC’s senior management. For UC Flex Financials, a number of the
Business Process Owners sit on the Executive Steering Committee. A Business
Process Owner’s responsibilities include: ensuring business objectives are met by
the SAP system; working with UC Flex Financials team to validate the “To Be” view
of the business processes; committing Subject Matter Experts from their business
areas; and identifying, resolving and/or escalating project issues.
The Project Charter e stablishes the overall approach that will be followed in order
to deliver a quality SAP system for UC Flex. It outlines objectives, benefits, critical
success factors, implementation strategy & approach, project organization, highlevel scope and project standards / procedures. It is a living document that is
maintained and controlled by Project Management Office (PMO) and is updated as
required over the duration of the project lifecycle.
The Project Preparation Phase is the 1st phase of the SAP implementation lifecycle.
It is where the initial planning and preparation for the SAP implementation is
conducted, such as: identifying the high-level scope; developing high-level
strategies; defining the overall project schedule and implementation sequence; and
mobilizing the Project Team. One of the key outputs from the Project Prep phase is
the Project Charter, and it builds the foundation for the rest of the implementation.
Their role is to define the vision and goals of the UC Flex Financials project. They
are the ultimate owners of the project and have decision-making authority. They
maintain the final authority to set priorities, approve scope and settle University-wide
issues. Project Sponsors promote the project throughout the organization and have
final budget authority.
R
R/3 Reference Model:
A collection of all the business processes contained in the SAP system. The R/3
Reference Model serves as a starting point for scoping, target process design,
application configuration and testing.
Realization Phase:
Realization Phase is the 3rd phase of the SAP implementation lifecycle. It is focused
on implementing business and process requirements based on the Business
Blueprint, including configuration, object development and unit testing. In this phase,
the business requirements defined in Business Blueprint are realized and
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transformed into an approved working system. Some of the key activities include:
configuring the system; developing reports, interfaces, conversions &
enhancements; developing end user documentation; and conducting end user
testing.
RICE:
R eports, Interfaces, Conversions and Enhancements. These objects are developed
(i.e. programmed) in the SAP system.
S
Sandbox:
A work area within the SAP system landscape that provides the Business and Technical team
members with a place to explore SAP capabilities and experiment with software configuration.
SAP:
Systems, Applications and Products in Data Processing. SAP is a software company (based
in Germany ) that produces the world’s most widely adopted ERP software.
SAP R/3:
SAP R/3 is the ERP system that is the foundation of the UC Flex solution. It is also a
component of the mySAP Business Suite.
SAPGUI:
SAP Graphical User Interface. A set of programs that run on your PC that provides the
Graphical User Interface for using SAP systems like SAP R/3 and SAP BW.
SEM:
Strategic Enterprise Management. SEM is the SAP system that UC Flex Financials will
implement to provide for Budget Preparation functionality.
SME:
Subject Matter Expert. SME is a UC employee who has extensive knowledge of a particular
requirement or business process. SME's are critical to the project during the design stage in
ensuring that all business requirements are considered.
Special Purpose
(SL) Special Purpose Ledger (or Special Ledger) is a financial ledger that is a mirror-image of
all postings in the General Ledger (GL), balanced by fund. It is vital for meeting the
requirements for financial reporting, including GASB34 and GASB35.
Ledger:
Anyone who has a specific interest and/or who is directly impacted by UC Flex.
Stakeholder:
Super User:
Sustain Phase:
A Project Team Member who will provide support in the first few months after implementation,
as well as be involved with implementing future releases of the software.
Sustain Phase is the 6th and final phase of the SAP implementation lifecycle. The purpose of
this phase is to ensure that a framework (e.g. UC’s SAP Competency Center) is in place to
sustain and improve the performance of the SAP system beyond go live. During the Sustain
Phase, the system is continuously monitored to evaluate if it is meeting its performance
objectives. Further improvements and add-on work may also be part of this phase.
T
“To-Be”:
Transaction Data:
A term used to represent the new system and its revised processes once changes have been
implemented. UC Flex Financials is focused on the “to-be” processes as they will be
implemented in the new SAP system.
Data created as a result of performing normal day-to-day business transactions in the SAP
system, such as Purchase Orders and Invoices.
U
Elements of the R/3 Reference Model that are “in-scope” for UC Flex Financials.
UC Process Model:
V
Vendor Master Data:
Collective term for all vendor master records. The vendor master contains the data of all vendors
that UC does business with.
W
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Workflow:
A system by which documents can be sent to various users of an SAP system in order to
complete a process. For example, purchase requisitions can be “work flowed” to other users for
approval.
10.2. DEFINATION AND ASSIGN FOR CUSTOMIZING IN BEKO
ORGANIZATIONAL STRUCTURE
10.2.1 Organization Structure Defination
Financial Accounting
Cost Accounting Control
139
General Logistics
Sales and Distribution
140
Material Management
141
Logistic Execution
Human Resource
142
10.2.2 Asignment
Financial Accounting
143
Financial Accounting Control
General Logistic
Sales and Distribution
144
Material Management
145
Logistic Execution
Human Resource
146
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