Enterprise Systems Modeling EGN 5620 Enterprise Systems Configuration Spring, 2012

Enterprise Systems Enterprise Systems ModelingModeling

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems ConfigurationSpring, 2012Spring, 2012

Enterprise Systems ModelingEnterprise Systems Modeling

Systems Modeling: Systems Modeling: Concepts and ToolsConcepts and Tools

EGN 5620 Enterprise Systems Configuration

Information systems modeling Information systems modeling toolstoolsIDEF

◦IDEF0 (activities)◦IDEF1x (information)◦IDEF2x (dynamics)

OMT◦Functional model◦Object model◦Dynamic model

IDEF Concept (1)IDEF Concept (1)IDEF (ICAM Definition)

◦Developed by the US Air Force Integrated Computer Aided Manufacturing (ICAM) Programs in 1981

ICAM Objective◦To develop structured methods for applying

computer technology to manufacturing and to better understand how best to improve manufacturing productivity

IDEF Concept (2)IDEF Concept (2)IDEF0

◦An activity model of a manufacturing system and environment

IDEF1◦An informational model of the system and

environment

IDEF2◦A dynamic model to describe time-varying

system behavior

IDEF Concept (3)IDEF Concept (3)IDEF Methodology

◦Modeling process and tools, leading to creation of the three IDEF models IDEF0 (activities) IDEF1x (information) IDEF2x (dynamics)

Commercial IDEF software tools◦Design/IDEF by Meta Software Company◦AI0WIN by Knowledge Based Systems Inc.

OMT Concepts (1)OMT Concepts (1)Object modeling technique (OMT)“Object-oriented” means:

◦ Software organized as a collection of discrete objects that incorporate both data structure and behavior, in contrast to conventional programming in which data structure and behavior are only loosely connected.

OMT Methodology (in stages): ◦ system analysis, ◦ system design, ◦ Object (implementation) design, and ◦ implementation.

OMT concepts (2) OMT concepts (2) - common themes - common themes Synergy (i.e., shifting focus from coding technique to packaging, based on consistent

◦ identity, ◦ classification, ◦ polymorphism, and ◦ inheritance

Abstraction, Encapsulation, Combining data and behavior, Sharing (inheritance of data structure & behavior among subclasses)

Emphasis on object structure (not procedure structure),

OMT Concepts (3)OMT Concepts (3)- Synergy- Synergy

Identity◦ Data is quantized into discrete, distinguishable entities

called objectsClassification

◦ Objects with the same data structure (attributes) and behavior (operations) are grouped into a class An operation is an action or transformation that an object

performs or is subject to.polymorphism

◦ The same operation may behave differently on different classes. A specific implementation of an operation by a certain class is

called a method. Each operation may have multiple methods implementing it.

inheritance◦ The sharing of attributes and operations among a hierarchy of

object classes

OMT Models (4)OMT Models (4)3 OMT models used to describe a system:

◦Object model describing the objects in the system and their

relationships; ◦Dynamic model

describing the interactions among objects in the system; and

◦Functional model describing the data transformation of the system.

Their relationship◦ The object model describes what changes (or

transforms) before when (dynamic model) or how (functional model) it changes.

OMT Functional Model (5) OMT Functional Model (5)

It describes the data value transformations within a system.

The functional model contains data flow diagrams. ◦A data flow diagram is a graph whose nodes

are processes (activities) and whose arcs are data flows.

OMT Object Model (6) OMT Object Model (6)

It describes the static structure of the objects in a system and their relationships.

The object model contains object diagrams. ◦An object diagram is a graph whose nodes are

object classes and whose arcs are relationships among classes.

OMT Dynamic Model (7) OMT Dynamic Model (7)

It describes the aspects of a system that change over time and is used to specify and implement the control aspects of a system.

The dynamic model contains state diagrams. ◦A state diagram is a graph whose nodes are

states and whose arcs are transitions between states caused by events.

Relationship between the two Relationship between the two techniques & among the three modelstechniques & among the three models IDEF0/functional model

◦ The input to an activity is usually through a user interface for data entry◦ The output from an activity is usually a user interface for a report,

though the output may be a write/update to a database. IDEF0’s◦ ICOM

Material is an input object. Product/process data are output objects. Rules/regulations and SOPs are constraints. Technical precedence is a

constraint Resources/tools and methods are a mechanism.

IDEF1/object model◦ The collection of the ICOM of an IDEF activity model constitutes an

inclusive foundation for the object model. IDEF2/dynamics model

◦ Each object requires a state diagram to define/govern its life-cycle behavior.

◦ A triggering event is associated with each transition from one state to another. One state may transform to multiple states, depending on the triggering event.

SAPSAPSystem Modeling DesignSystem Modeling Design

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration

January 2008January 2008

SAP R/3SAP R/3Enables a company to link it’s business

processesTies together disparate business

functions (integrated business solution)Helps the organization run smoothlyReal-time environmentScalable and flexible

ArchitectureArchitecture Central relational database

◦Oracle, Informix, Microsoft SQL, etc.Client/Server – three-tieredERP Components – Oriented towards common

identifiable business modules: ◦MM, SD, PP, FI, CO, HR, WM, QM, PM

Add-ons: ◦Customer Relationship Mgmt (CRM)◦Supply Chain Mgmt (SCM)◦Product Lifecycle Mgmt (PLM) ◦Business Intelligence (BI)

Relational Database Relational Database Tables: Defines and links a couple of tens

thousands of tables of information (25,000+)

Advantages◦Consistent and accurate data◦Common definitions for terms◦Shared, but restricted usage (e.g., profiles) ◦Eliminates data redundancy

Client/Server Environment Client/Server Environment

Client◦Software/hardware combination that can

make a request for services from a central repository of resources

Server◦Software/hardware combination that can

provide services to a group of clients in a controlled environment

Three-Tier SAP StructureThree-Tier SAP StructureGUI – Graphical User Interface or Web

InterfaceApplication server (one or many)Database server (one single location)

January 2008January 2008© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. reserved. 4040

SAP Enterprise System

Database

Application

Presentation

Browser ClientPCs, Laptops, etc.

Network

Application Servers

Database

Internet Transaction Server

Web Server

FIFinancialAccounting

COControlling

PSProjectSystemWF

Workflow

ISIndustrySolutions

MMMaterials Mgmt.

HRHumanResources

SDSales and Distribution

PPProductionPlanning

QMQualityMgmt. PM

Plant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

SAP ERP Modules

Business ModulesBusiness ModulesCollections of logically related

transactions within identifiable business functions◦MM (“Buy”)◦PP (“Make”)◦SD (“Sell”)◦FI and CO (“Track”)◦HCM (“People”)

SAP R/3 Basics SAP R/3 Basics Instance – each install of the SAP R/3

software on an individual application server

Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits)

Most of the infrastructure decisions, including configuration decisions, occur during project implementation

ConfigurationConfiguration

The process of tailoring SAP software by selecting specific functionality from a list of those supported by the software, very much like setting defaults (e.g., Word, Access)

DOES NOT involve changes to the underlying software code

Programming Code Modifications Programming Code Modifications

Changes to the delivered code

ABAP/4 – Advanced Business Application Programming (ABAP)

This should be done sparingly and carefully as it can make migration to new versions of the software much more difficult

SAP R/3 Document Principle SAP R/3 Document Principle

Each business transaction that writes data to the database creates a uniquely numbered electronic document

Each document contains information such as◦Responsible person◦Date and time of the transaction◦Commercial content

Once created, a document can not be deleted from the database

SAP SAP Business ProcessesBusiness Processes

Components of Materials Components of Materials ManagementManagement

MaterialsManagement(MM)

LogisticsInvoiceVerification

MaterialMaster

PhysicalInventory

Valuation

ServiceEntrySheet

ServiceMaster

ProductCatalog

Purchasing

InventoryMgmt.

ForeignTrade/Customs

Integration

Procurement Process (Procure-to-Pay)

Purchase Requisition

Paymentto Vendor

Notify Vendor

VendorShipment

InvoiceReceipt

GoodsReceipt

Purchase Order

Components of Sales and Components of Sales and DistributionDistribution

Sales andDistribution(SD)

SalesSupport

CreditMgmt.

ShippingTransport

Billing

ForeignTrade

SalesInformationSystem

MasterData

Sales Order Process(Order-to-Cash)

Integration

Sales OrderEntry

Post Goods Issue

Invoice Customer

Pick Materials

Receipt ofCustomer Payment

Pack Materials

Check Availability

Components of Production PlanningComponents of Production Planning

ProductionPlanning

CapacityPlanning

ProductCost

Planning

RepetitiveMfg.

ProductionControl

KANBANMasterData

Scheduleand Release

Shop FloorDocuments

Goods Receipt

Order Settlement

GoodsIssue

ProductionProposal

(Planning/Other)

CompletionConfirmation

Capacity Planning

Production Process (Make-to-Stock)

SAP SAP Business Processes IntegrationBusiness Processes Integration

(Overview)(Overview)

Functional Areas – Where and Functional Areas – Where and WhenWhen

Business Process Integration I◦Materials Management (MM)◦Sales and Distribution (SD)

Business Process Integration (I)Business Process Integration (I)

Master D

Organizational DataOrganizational Data

A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions

Are static data and are rarely changed The definition of organization units is a

fundamental step, it is a critical factor in how the company will be structured

Master Data Master Data

Master data is relatively fixed◦Material master data◦Vendor master data◦Purchasing information record◦General Ledger master data

Before making the master data configurations, you must have completely defined the organizational structures

RulesRules

Defines the parameters for Master Data and Transactions

Determines functionality for Master Data and Transactions

Relatively fixedChanges as policy changes

Transaction DataTransaction Data

Includes internal and external exchanges that describe business activities

Unlike master data, aggregate transactional data is dynamic – each transaction is unique

Functional Areas – Where and Functional Areas – Where and WhenWhen

Business Process Integration II◦Materials Management (MM)◦Production Planning (PP)◦Sales and Distribution (SD)

Business Process Integration (II)Business Process Integration (II)

Master D

Learning ApproachesLearning Approaches◦Cross business functions◦Understand business processes and their relationships to SAP's organizational structure

◦Highlight integration/configuration!!

Learning by Creating a Model Learning by Creating a Model BusinessBusinessUnderstanding business processes and

their integrative natureUnderstanding SAP organizational

structuresCombining business processes and SAP

organizational structure (i.e., configuration)

Test the newly configured systemView system outputs - statistics, reports,

and graphics

PEN, Inc. PEN, Inc. System Modeling DesignSystem Modeling Design

EGN 5620 Enterprise Systems ConfigurationEGN 5620 Enterprise Systems Configuration

Pen Inc.Pen Inc.Start-up company in the promotional pen

businessInitially buys and re-sells different lines of

promotion pensSells to both wholesale and retail –

procure and distributeLater acquires a production facility to

manufacture its own product – produce and distribute

Enterprise StructureEnterprise Structure

PlantPlant

ClientClient

Chart of Chart of AccountsAccounts

CompanyCompanyCodeCode

Fiscal YearFiscal YearVariantVariant

Credit ControlCredit ControlAreaArea

PurchasingPurchasingOrganizationOrganization

Purchasing Purchasing GroupGroup

Shipping Shipping PointPoint

SalesSalesOrganizationOrganization

Distribution Distribution ChannelChannel

DivisionDivision

Sales AreaSales Area

Controlling Controlling AreaArea

SL10SL10 SL20SL20

Pen Incorporated Pen Incorporated Procure for Sales OrderProcure for Sales Order

Pre-Sales Activity

Sales OrderDelivery Billing

General Ledger Accounts

Purchase Order

Goods Receipt

In Inventory

Plant or Warehouse

Invoice Receipt

Availability Check

Goods to Delivery

Goods from Purchase Order

InventoryPostings

AccountsReceivable

AccountsPayable

Pen Inc. Business Module I for Selling Trading products

Pen Inc. Business Module II for Pen Inc. Business Module II for Selling Finished Goods by ProductionSelling Finished Goods by Production

Pre-Sales Activity

Sales Order

Delivery Billing

Planned Order

Production Order

Completion Confirmation

In Inventory

Plant or Warehouse

Availability Check

Goods Issued to Delivery

Goods from Production Order

InventoryPostings

AccountsReceivable

AccountsPayable

Issue Goods to Production

Pen Inc. Business Module II for Pen Inc. Business Module II for Selling Finished Goods by ProductionSelling Finished Goods by Production

Pre-Sales Activity

Sales Order

Delivery Billing

Planned Order

Production Order

Completion Confirmation

In Inventory

Plant or Warehouse

Availability Check

Goods Issued to Delivery

Goods from Production Order

InventoryPostings

AccountsReceivable

Issue Goods to Production

Purchase Order

Goods Receipt

Invoice Receipt

AccountsPayable

Exercises:Exercises:

21. Create company code22. Create chart of accounts23. Assign company code to chart of accounts24. Assign company code to fiscal variant25. Create Credit control area26. Assign company code to credit control area27. Assign permitted credit control areas to

company code 29. Define plant30. Define storage locations (inventory and quality)31. Define purchasing organization32. Create purchasing group

Exercises:Exercises:33. Assign plant to company34. Assign purchasing org. to company code35. Assign purchasing org. to plant36. Set up parameter ID37. Create Account groups38. Define retained earnings account39. Review field status variant40. Assign company code to field status variant41-57 Create 17 general ledger accounts58. Run general ledger list of accounts reports

Homework due date: 1/30/2012

Enterprise Systems Modeling EGN 5620 Enterprise Systems Configuration Spring, 2012

Documents

Enterprise Systems Configuration Production Planning Master Data EGN 5620 Enterprise Systems Configuration Spring, 2012

EGN 5620 Enterprise Sys MM Master Data

Performance Management EGN 5622 Enterprise Systems Integration Spring, 2012

EGN 5620 Enterprise Sys Procurement Process Fall 2012

Sales and Distribution Master Data EGN 5620 Enterprise Systems Configuration Spring, 2013

Materials Management (MM) Organizational Structure EGN 5620 Enterprise Systems Configuration Fall, 2015

Intro to SAP Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2013

Financial Reports EGN 5622 Enterprise Systems Integration Spring, 2012 Financial Reports EGN 5622 Enterprise Systems Integration Spring, 2012

Enterprise Systems Modeling EGN 5621 Enterprise Systems Collaboration Summer B, 2013

EGN 5620 Enterprise Sys Procurement Process Spring 2012

Enterprise Systems Modeling EGN 5620 Enterprise Systems Configuration Professional MSEM Fall, 2012

Controlling Management EGN 5622 Enterprise Systems Integration Spring, 2014 Controlling Management EGN 5622 Enterprise Systems Integration Spring, 2014

Enterprise Systems Modeling EGN 5623 Enterprise Systems Optimization Fall, 2012

Production Planning Processes EGN 5620 Enterprise Systems Configuration Fall, 2015

Performance Management EGN 5622 Enterprise Systems Integration Spring, 2012 Performance Management EGN 5622 Enterprise Systems Integration Spring, 2012

Transportation Planning EGN 5623 Enterprise Systems Optimization Fall, 2013

Procurement Processes EGN 5620 Enterprise Systems Configuration Fall, 2012 Procurement Processes EGN 5620 Enterprise Systems Configuration Fall, 2012

Enterprise Systems Optimization Course Overview EGN 5623 Enterprise Systems Optimization (Professional MSEM) Fall, 2011

Controlling Management EGN 5622 Enterprise Systems Integration Spring, 2015 Controlling Management EGN 5622 Enterprise Systems Integration Spring, 2015

Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013