SAP System Architecture and Organization Structure Flashcards

1
Q

ERP System Architecture Policies

A

Usable world-wide
* Open policy with respect to data access and
functionality – i.e. open source system
* Support distributed applications and interfaces
to other systems

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2
Q

ERP System Architecture Policies
* Enterprise System (ES) Architecture:

A

– technical structure of the software
– Way that users interact with the software
– Ways the software is physically managed on
computer hardware

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3
Q

ERP System Architecture Policies
Most modern ES have:

A

– 3-tier Client-Server Architecture
– Service-oriented architecture

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4
Q

SAP Architecture
Client/Server Environment

A

– Client – hardware/software environment that can make a request
for services for a central repository of resources
– Server – hardware/software combination that can provide services
to a group of clients in a controlled environment

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5
Q

Client-Server Architecture

A

Think of a desktop application – e.g. Excel
* These applications consist of three components, or layers:
– Interaction (menus, selecting)
– What it allows (e.g. formula/chart creation)
– Data storage (e.g. hard drive, other drive)
* These layers are actually called:
– Presentation layer (or GUI)
– Application layer
– Data or Database layer

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6
Q

SAP Architecture
Three – Tier Structure

A

– GUI
* Graphical User Interface or
Web Interface
– Application Server
* One or more, help distribute
work load
– Database Server
* One single data repository

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7
Q

Database Layer

A
  • The database layer consists of a central database system containing all of the data in the System
  • SAP does not manufacture its own database for
    ECC and previous versions; however, it does for S/4 HANA
  • Supported database
    – ADABAS D
    – DB2
    – INFORMIX, Microsoft SQL Server, ORACLE
    – SAP Hana only runs on an SAP-supported d’base
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8
Q

Four Categories of Data in SAP

A
  • Code
    – Programming codes to support all the functions or
    performance
  • Configuration data
    – SAP consultants
  • Master data
    – Data that does not change often
    – E.g., Rutgers - Student (Name, ID, Home address)
  • Transaction data
    – Happened daily/actively
    – E.g., purchase order
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9
Q

SAP Database

A
  • Contains the master data and transaction data
    from your business applications, and all data for
    the entire System
  • Contains the control and customizing data that
    determines how your System runs
  • Contains the program code for applications
    – Applications consist of program code, screen
    definitions, menus, function modules, and various
    other components
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10
Q

Application Layer

A
  • The application layer consists of application
    servers and message servers
  • Each application server contains a set of
    services used to run the System
  • Not all application servers will provide the full
    range of services
    – One server can serve multiple functions
    – Multiple servers can serve one function
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11
Q

Presentation Layer

A
  • The presentation layer contains the software
    components that make up the SAP GUI
    (Graphical User Interface)
  • This layer is the interface between the system
    and its users
  • The presentation layer sends the user’s input to
    the application server, and receives data for
    display from it
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12
Q

Advantages of Multi-Tier Architecture

A
  • Load Distribution
    – Software is distributed over three layers. This leads to better
    system performance.
    – It separates program execution from the tasks of processing user
    input and formatting data output.
    – It allows application layer and database layer, which are subject
    to a very heavy load when the system is running, to be separate.
  • Scalability
    – Software components of the system can be distributed in almost
    any configuration across various hosts.
    – It is particularly valuable in the application layer.
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13
Q

Bullwhip Effect

A
  • A slight motion of the handle of a bullwhip can make
    the top thrash wildly at up to 900mph.
  • Increasing demand variability as you move upstream.
  • Most demand distortion is caused by the supply chain
    itself, not by the customer.
  • Results in:
    – excessive inventory investment
    – poor customer service
    – lost revenues
    – misguided capacity planning
    – ineffective transportation
    – Ineffective production schedules.
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14
Q

Structure Drives Behavior:
Causes of the Bullwhip Effect

A
  • Lack of visibility
  • Long lead time
  • Many stages in the supply chain
  • Lack of pull signals
  • Order batching
  • Price discount and promotions
  • Forward buying
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15
Q

Other Behaviors that Cause the
Bullwhip Effect

A
  • Over-reaction to backlogs
  • Neglecting to order to reduce inventory
  • Hoarding customers/consumers
  • Shortage gaming for customers
  • Demand forecast inaccuracies
  • Attempts to meet end-of-month metrics
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16
Q

Ways to Mitigate the Bullwhip Effect

A
  • Reduce lead times
  • Use/sharing of POS data
  • Smaller orders
    – Work with suppliers on more frequent deliveries of smaller
    order increments
  • Use stable pricing, “everyday low prices”
    – Levels out customer demand
  • Allocation based on past sales
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17
Q

Configuration

A
  • Process of tailoring ERP software by selecting
    specific functionality from a list of those
    supported by the software
  • Uses the inherent flexibility of the enterprise
    software to add fields, change field names,
    modify drop down lists or add buttons.
    – It is very much like setting defaults, e.g., in Word or
    Excel
  • It does not involve changes to the underlying
    software code (which is called customization)
18
Q

Customization

A
  • Adapt the system to your business
    requirements, which is the process of mapping
    SAP to your business process.
  • Involves code changes to create functionality
    that is not available through configuration.
  • Customization can be costly and can complicate
    future upgrades to the software
  • Code changes/modifications may not easily
    migrate to the new version.
19
Q

Configuration vs. Customization

A

Configuration
– Higher level
– Control panel

  • Customization
    – Lower level
    – Background setting
20
Q

Functional Organizational Structure

A
  • Most common organizational structure
  • Functional structure divided into functions or
    departments
  • Functions perform specialized tasks or activities
  • Processes cut across functions
  • Why is the functional structure so common?
21
Q

Silo Effect

A
  • Focusing on functional objectives without
    regard to process objectives
  • Optimizing functional goals vs. process goals
  • Process execution requires
  • Communication and coordination among functions
  • How is this achieved?
22
Q

Enterprise Systems

A
  • Impossible to manage processes that are
    geographically dispersed without utilizing
    modern information systems
  • Enterprise systems (ES) support end-to-end
    processes
  • Investments in ES have provided
  • Increased profitability
  • Increased productivity
  • Competitive edge
23
Q

Organizational
Data Types

A

Company Code
Plant
Storage Location
Distribution Channel
Purchasing Organization

24
Q

Master Data Types

A

Person
Material
Customer
Vendor
Work Centre

25
Q

Transaction
Data Types

A

Purchase Order
Invoice
Quotation
Sales Order
Transportation Order

26
Q

Organizational Data

A
  • Defines the structure of the enterprise in terms
    of legal or business purposes. Examples
    include:
  • Legal entities, plants, storage areas, sales organizations,
    profit centers
  • Data rarely changes
27
Q

Organizational Level - Client

A

Client:
* Highest organizational level
* Represents the enterprise; comprised of many companies

28
Q

Organizational Level – Company Code

A
  • Central organizational element in financial
    accounting
  • Books are maintained at this level for legal reporting
  • Identifies legal entities in an enterprise (Client)
  • Legally independent from other companies in
    the enterprise
  • Client can have multiple company codes
  • Company code must belong to only one client
29
Q

Organizational Level - Plant

A

Performs multiple functions
* Used by many processes
* Represents factory, warehouse, office,
distribution center, etc.

30
Q

FI/CO Organizational Structure

A
  • Client
  • Company Code
  • Chart of Accounts
  • Controlling Area
31
Q

Client

A
  • Highest hierarchical level in an SAP environment
  • Represents the enterprise or headquarters
    group
  • A complete database containing all the tables
    necessary for creating a fully integrated
    information system
  • Master records are created at the client level
32
Q

Company Code

A
  • A legal entity of Financial Accounting for which
    you draw individual financial statements
  • Organizational unit for which a complete self-
    contained set of accounts can be drawn
  • Accounts are managed at this level
  • Legal financial statements, such as the balance
    sheet and the income statement, are generated
    at this level using the General Ledger balances
33
Q

Storage Location

A

Subdivision of a plant where materials are stored
(and inventory is managed)

34
Q

Purchasing Group

A
  • Responsible for specified purchasing activities
    within a purchasing organization
  • Often used to identify individual buyers
  • Used for reporting
  • Can be divided by
    – Functions: e.g., inexpensive or expensive office
    supplier
    – Locations: e.g., NJ, NY, CT
35
Q

SD Organizational Structure

A
  • Sales Organization
  • Distribution Channel
  • Sales Division
  • Sales Area
  • Shipping Point
36
Q

Sales Organization (I)

A
  • Sales organization
    – Sells and distributes products
    – Negotiates terms of sales
  • Controls the terms of sale to the customer
  • It represents the top organizational level to
    which you sum sales figures
  • There must be at least one sales organization
    defined
  • A sales transaction is linked to only one sales
    organization
37
Q

Sales Organization (II)

A

More than one sales organizations can be assigned to a
company code

38
Q

Distribution Channel

A
  • It identifies how products and services reach the
    customers
  • One sales organization can have one or multiple
    distribution channels
  • At least one distribution channel should be available for
    an SD module
39
Q

Sales Division

A
  • It is used to represent a product line, or a group of
    materials and services
  • One sales organization can have one or multiple sales
    divisions
  • At least one sales division should be available for an SD
    module
40
Q

Sales Area

A

A sales area is comprised of
– Sales organization
– Distribution channel
– Sales division
* It defines the distribution channel that a sales
organization uses to sell products from a certain
sales division

41
Q

Sales Office and Sales Group

A
  • A sales office is an optional organizational
    structure that establishes contact between the
    firm and the regional market. The sales office
    primarily provides a way to manage, report and
    analyze sales by region.
  • Sales groups can be used to further break down
    sales reports for a sales office by the sales
    group.
42
Q

Shipping Point

A
  • A fixed location that carries out shipping
    activities
  • Can be a loading dock, a mail room, a rail depot,
    or a shipping department, etc.
  • Each outbound delivery is processed by one
    shipping point
  • One plant can have multiple shipping points
  • A shipping point (e.g. rail depot, port) can serve
    multiple plants