nokia siemens networks manoj giri
TRANSCRIPT
-
8/8/2019 Nokia Siemens Networks Manoj Giri
1/83
ERP
IMPLEMATATION
AT NOKIA SEMIENS
-
8/8/2019 Nokia Siemens Networks Manoj Giri
2/83
NOKIA SIEMENS NETWORKS
An overview
TYPE JOINT VENTURE
FOUNDED 2007
HEADQUARTERS
ESPOO, FINLAND
KEY PEOPLE Simon Beresford-Wylie, CEO
Simonson CFO
Olli-Pekka Kallasvuo, Chairman
INDUSTRY TELECOMMUNICATIONS
PARENT NOKIA OYJ (50%)SIEMENS AG (50%)
WEBSITEnokiasiemensnetworks.com
-
8/8/2019 Nokia Siemens Networks Manoj Giri
3/83
Nokia Siemens Networks is a telecommunications solutions supplier which was created
as the result of a merger between Siemens AG's COM division (minus its Enterprise
business unit) and Nokia's Network Business Group.
y The new company was announced on 19 June 2006.
y Nokia Siemens Networks then began full operations on 1 April 2007 and has its
headquarters in Espoo, Greater Helsinki, Finland, while the West-South Europe
headquarters and three of its five divisions are based in Munich, Germany. The
Services division is based in India. Nokia Siemens Networks has operations in
some 150 countries.
y IT Telecommunications solutions supplier Nokia Siemens has acquired mobile
network management providerApertio.
y Apertio software is currently used by carriers including Orange, T-Mobile, O2
and Vodafone and the company has offices in the United States, Germany,
Thailand, Malaysia and China.
y NSN Munich
y The main Business Units of Nokia Siemens Networks are
1) Radio Access 2) Broadband Access 3) Converged Core 4) IP Transport 5)
OBS Services
y The customer base of NSN includes 1400 Customers in 150 Countries including
Vodafone, Deutch Telekom, Telefonica, China Mobile, AT&T, Bharti &
Idea.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
4/83
y About 1 billion people are connected through its switches. The major
manufacturing sites in China, Finland, Germany and India. It has around 60000
employees.
y Nokia pioneered the development of mobile communications and became the
world leader in this field and others:
y Laying ground for modern telecommunications
y Expertise in mobile communication
y More than 150 years in international business
y Nokia and the rise of mobile telecommunications
y Building on the legacy of two industry champions
y In India, we currently have the R&D centre in Bangalore, Global HQ
of Services business in Gurgaon, Global network operating centre & a
upcoming manufacturing unit in Chennai.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
5/83
Company profile
With more than 60,000 people in over 150 countries, Nokia Siemens Networks is one of
the largest telecommunications hardware, software and services companies in the world.
We are committed to innovation and sustainability and offer a complete portfolio of
mobile, fixed and converged network technologies as well as professional services
including consulting and systems integration, network implementation, maintenance and
care, and managed services.
We serve more than 600 customers around the world Communications Service
Providers (CSPs) who face a multitude of challenges as they focus on capturing greater
value through business model innovation, reducing the complexity within their
businesses and networks, growing their customer base and minimizing subscriber churn.
It is our aim to play the vital role of an enabler, someone who helps CSPs build stronger,
more lasting and ultimately more profitable customer relationships. We aim to do so by
enhancing the efficiency and sustainability of their business practices, and in turn help
them meet pressing challenges.
Our initiatives aim to fostersustainable business practices which increase profitability
and demonstrate the broad impact of the telecommunications industry on other sectors.
One such initiative is our participation in the WWF Climate Savers program under which
we have pledged to undertake a number of steps that reduce our annual CO2 emissions
by approximately two million tons. One of our key commitments is to improve the
energy efficiency of our GSM/EDGE and WCDMA/HSPA base station products by up
to 40 percent by 2012. Our Flexi Base Station has the lowest energy consumption in the
market, and has been recognized as the worlds most progressive mobile network
-
8/8/2019 Nokia Siemens Networks Manoj Giri
6/83
technology at GSMA Global Mobile Awards 2009. In addition, we recently launched the
industrys most comprehensive energy solutions offering, which includes the innovative
Green Energy Control. Currently we have more than 390 sites across 25 countries which
run on renewable energy. By 2011, renewable energy will be our preferred source of
power supply for every remote base station site that we install.
Our vast and market-leading portfolio of offerings aptly reflects our emphasis on thought
leadership and innovation. We have pioneered a centralized Global Service Delivery
model by creating integrated multi-technology, multi-vendor Global Network Solutions
Centers which drive the worlds most efficient networks. We also enjoy leadership in
several other areas, including Professional Services where we are the industrys fastest
growing vendor, voice solutions where we power the conversations of more than one-
fourth of the worlds population, 3G where we have more than 160 3G radio references,
and network deployment where we enjoy the largest market share. As a leader in
technology innovation, we are committed to driving the commercial uptake of LTE
starting in 2010, and offer an end-to-end solution which provides a future-proof, easy and
cost-efficient path to LTE.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
7/83
Mission and Vision
The road ahead
Until now, development in our industry has mainly been a matter of delivering
connections more, faster, cheaper, and more efficient. This is still important. The
connectivity explosion continues, and by 2015 we know that 5 billion people and further
billions of devices will be connected. So, we must continue applying our expertise in
order to deliver on the reality of hundred-fold increases in traffic.
Towards an ecosystem of partners
Today, however, we are also focusing like never before on delivering quality quality
experience. We can see that a more open, collaborative and customer-centric way of
working could bring so much more value to billions of individuals, and to millions of
businesses. We at Nokia Siemens Networks must drive that change by leaving the closed
and proprietary mindset behind, and leading the way in a new spirit of openness and
collaboration.
Our customers challenges
Our customers, Communications Service Providers (CSPs), face challenges on all fronts:
the need to increase efficiency keeps pressure on capital and operational costs; the
dramatic rise in traffic due to the proliferation of internet applications demands new
business models for monetization; and an ever fiercer competitive climate is challenging
CSPs to prove they can retain the customers they have and win back any they might have
lost. Nokia Siemens Networks will play a vital role in helping CSPs meet these
challenges. This role is our mission its about building value.
Our mission
-
8/8/2019 Nokia Siemens Networks Manoj Giri
8/83
by improving efficiency and experience
We have built value by addressing efficiency, and we continue to do that. But we also
need to address the customers need for a better experience, because its experience that
builds relationships, and relationships that build value.
Our vision
We believe that CSPs can ultimately enable and deliver a segment of one where they
can define and enhance the service experience for each and every individual. Customers
whose communications experience fits and works for them dont change operators. And
operators who can devote themselves to enriching the customers experience build
stronger, more lasting and profitable customer relationships.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
9/83
The individual communications experience is the greatest value a communications
service provider can deliver to their customer, and so its the greatest value we can
support communications service providers in delivering.
The road ahead
The future of service is largely network-based. Internet applications hosted in the cloud
(email, social networking sites, corporate service and communication tools, etc.), already
account for a large proportion of the services people access every day. Every day,
therefore, quality of network experience has more and more to do with quality of life.
Ultimately every service is delivered to an individual. And those individuals will benefit
from the services being delivered in a way that fits their personal needs and desires. This
experience cannot be the privilege of the few. It must be as true for customers in
emerging countries with just a dollar to spend, as for businesses in developed countries
with greater resources, and for the trillions of devices that make up the Internet of Things.
Our vision acknowledges that communications service providers need to manage this
complexity wisely, ensuring the necessary security and authentication for users, while
having the ability to profitably deliver a customized experience, based on a persons
locations, context, device, usage patterns and preferences.
Our vision guides our mission, and our mission is to build more valuable customer
relationships. The individual communications experience builds more valuable customer
relationships.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
10/83
Mode of operation
Starting January 1, 2010, Nokia Siemens Networks has been realigned around the three
key areas of Business Solutions, Network Systems and Global Services. This re-
organization has been designed to usher in the next phase of our business growth and will
enable us to improve our relationships with customers engage with them better and
address their existing and emerging needs more effectively.
Today it is imperative for us to extend services and offer comprehensive solutions which
assist our customers transformation and help them realize the opportunities presented by
new business models. It is also the call of the day to empower our customers to provide a
unique end-user experience while supporting their drive for efficiency.
Our new organizational structure will help us adapt to this market need and enable us to
become truly customer-oriented, faster, simpler and a more responsive solutions partner.
We have pushed the conventional boundaries of being organized by product areas and are
instead mirroring our customers set-up.
The three areas around which the companys new structure is now aligned are:
Business Solutions: Focused on helping our customers generate new revenue and
differentiate from competition by providing a faster time-to-market for end-user services;
enhance billing and charging capability; automate and simplify processes; address the
challenges of convergence and tap into rich subscriber data to deliver a unique customer
experience.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
11/83
Network Systems: Aimed at addressing needs at the network layer both fixed and
mobile network infrastructure, including our innovative Flexi base stations, packet core
products, optical transport systems and broadband access equipment.
Global Services: Focused on helping customers improve operational efficiency through
outsourcing non-core activities; supporting and managing their networks with robust
customer care offerings and ensuring fast and cost-effective implementation of new
networks and network upgrades.
We have established three dedicated sales units covering these areas, with the heads of
those units reporting directly to Bosco Novak, our Chief of Customer Operations, in
order to reflect our renewed focus on customer engagement.
We have also established three new Business Units to reflect this customer-focused
structure: the heads Jrgen Walter (Business Solutions), Marc Rouanne (Network
Systems) and Ashish Chowdhary (Global Services) report directly to our CEO,
Rajeev Suri, and are part of our Global Executive Board.
These changes are all geared to restore our market momentum and add value to customer
business. We are steadily working towards achieving this target by ensuring that we work
as ONE organization with empowered teams who are customer-driven, take
responsibility and are accountable for the success of our company
Quality at Nokia Siemens Networks
Quality isnt an attribute that falls in your lap and stays with you forever. On the contrary,
striving for quality is a continuous journey for each one of us.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
12/83
So what then is quality for us?
We believe that quality is about meeting and exceeding customer expectations. It is not
only the quality of our environmentally and socially sustainable products, services and
solutions, but also how we deliver them, and our attitude and relationship with our
customers. Quality is an integral part of business management and embedded in business
strategies, daily decisions, actions and our normal way of working and its everyones
responsibility to deliver that value to our customers to ensure their loyalty.
And what are we aiming at?
To becoming the industrys No.1 in customer loyalty and operational excellence.
Quality at work
At Nokia Siemens Networks, quality is not just a strategy or theory, but is a mindset that
we put in practice every single day in all our decisions and actions. Quality is part of
our company culture and values.
The extent of emphasis laid on ensuring we all live quality is also demonstrated by our
annual Nokia Siemens Networks Quality Award, with over two hundred teams or more
than 1,600 people participating in this years competition.
Examples:
y Innovation not just in technology but also in business models in supporting the
setup of a new virtual mobile operator with an advertising revenue model
y Excelling in new product introductions, on time and with virtually zero software
bugs at the customer interface
y Creating true customer delight with a solutions approach to Services projects
leading to repeat business
-
8/8/2019 Nokia Siemens Networks Manoj Giri
13/83
By making quality a personal mission for each one of us, we are able to deliver
world-class quality to our customers and set industry benchmarks. It is our source
of inspiration, energy and enthusiasm
-
8/8/2019 Nokia Siemens Networks Manoj Giri
14/83
Corporate responsibility
The scope of Corporate Responsibility has expanded in recent times. Our aim is to stay
current in a fast changing world, a world that demands companies to be responsible and
accountable as well as thought leaders, and as such we aim to make a difference by
playing our part. As a starting point we have chosen to highlight the following areas
below.
Reporting and Policies
Our approach
We want to go further than merely addressing corporate responsibility (CR) risks and
impacts. Our industry has a unique opportunity to contribute to society and our plan aims
to maximize that positive influence.
Read more
Code of conduct
Corporate responsibility report 2009
Environmental sustainability
We aim to connect the world in a way that creates a net positive impact to the
environment. Read more
-
8/8/2019 Nokia Siemens Networks Manoj Giri
15/83
Social sustainability
3G for emerging markets
Any market is now ready for 3G
The prices of 3G devices are falling sharply. Global demand for broadband and Internet
access is booming. Every market is now ready for 3G. Read more
Connectivity Scorecard
Our approach
In our corporate responsibility activities, we essentially seek to do the right thing by
three key stakeholders: our employees, our customers, and the planet. We want to
maintain an active and open dialogue with many more entities to improve our
performance and find new and better ways to serve our key stakeholders.
We want our corporate responsibility actions and our motives for doing them to be honest
and transparent. Our primary responsibility is to target growth and profitability; we need
ensure the future of our operations. To succeed, we must intertwine corporate
responsibility and our business either to support our existing business objectives, or
even to make new business with it. When we run a successful business, we can extend
our sustainability thinking also outside of our company; to our customers, our industry
and beyond.
This thinking is demonstrated in our three point corporate responsibility plan:
-
8/8/2019 Nokia Siemens Networks Manoj Giri
16/83
y Mitigate corporate responsibility risks: the foundation of corporate responsibility
is to respect all relevant laws and regulations and international standards, and
create an organization where ethical business practice is a source of pride and
push for high ethical standards in our supply chain.
y Minimize our environmental impact: reduce our footprint and help our customers
reduce theirs.
y Maximize our positive impact: use our core competencies beyond our industry
sector for environmental benefit, contribute positively in the communities where
we are present and fight corruption to the benefit of all.
Our approach, CR management, memberships and performance are explained in length in
our annual Corporate Responsibility report.
Code of conduct
The Nokia Siemens Networks Code of Conduct outlines our commitment to high ethical
standards.
The Code covers:
Human rights
We will respect the rights laid down by the United Nations Universal Declaration of
Human Rights, including:
y Freedom from discrimination on any grounds
y Freedom from arbitrary detention, execution or torture
-
8/8/2019 Nokia Siemens Networks Manoj Giri
17/83
y Freedom of peaceful assembly and association
y Freedom of thought, conscience and religion
y Freedom of opinion and expression.
Ethical conduct
We are committed to the highest standards of ethical conduct and full compliance with all
applicable national and international laws, including issues such as:
y Labor conditions
y
Antitrust and promoting fair competition
y Prevention of bribery and corruption
y Good corporate governance
y Protection and recognition of copyright, company assets and other forms of
intellectual property
y Privacy and data protection.
Environment
We are determined to be environmentally aware in all we do, going beyond compliance
by improving the environmental performance of our operations and throughout the
lifecycle of our products.
People
We are committed to provide a safe and healthy workplace where all employees are
treated with respect and provided with equal opportunities for development.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
18/83
Anti-corruption
We have strict zero tolerance on corruption. Employees must avoid any activity that can
lead to a conflict of interest, including:
y Gifts and hospitality
y Bribes and facilitation payments
y Political donations.
Partners
We require our business partners and suppliers to comply with all applicable laws and
regulations, and encourage them to go beyond compliance to improve their management
of ethical, environmental and social issues.
Implementation
How the Code is implemented in practice, how potential violations are reported and
investigated.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
19/83
WHY NOKIA SIEMENS NETWORKS
NSN have one of the worlds largest and most experienced service teams at service,
ready to work with, to help improve your business. NSN have a third of their people
dedicated to customer services. Combine this commitment with both experience and an
innovative approach and we have a world-beating support system in telecommunications
networks.
y understand customers challenges and deliver what it takes to solve
them
y increase their revenues and realize new business models
y seize new business opportunities quickly and with reduced risk
y reduce their OPEX and optimize network performance and user
experience
y keep their network at peak performance at all times
y take care of deployment so that customer can focus on what's key
for them.
Today, telecom service providers most often ask for solutions and services for business
transformation, revenue growth, efficiency and connectivity. From our broad services
portfolio, we have chosen the top items that best match these needs.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
20/83
MARKET VISION NOKIA
By 2015, Nokia Siemens Networks believes that we will live in a world where five
billion people will be connected, mostly via broadband from virtually any place on the
globe.
Internet Applications will prevail
Broadband Everywhere
Multitude of business models
NSN COMPETITORS
y ERICSSON -SWEDAN
y MOTOROLA-USA
y CIENA CORPORATION-USA
y ALCATEL-USA
-
8/8/2019 Nokia Siemens Networks Manoj Giri
21/83
-
8/8/2019 Nokia Siemens Networks Manoj Giri
22/83
INDUSTRY DEFINITION
The management of the efficient ,cost effective flow and storage of materials and
equipment from point of origin to point of consumption based on customer
requirement.
LOGISTICS IN NSN
DEFINITION-
The managed movement, storage and flow of material, equipments and information
flow between strategic partner and supplier to customer in order to fulfill the
customer needs.
LOGISTIC CHARTER
Deliver material/ equipments and value added services in order to fulfill customer
demands .
MATERIAL REQUISITION NOTE(MRN TO PO)
Definition of MRN>
MRN is a list of items containing specific codes(oracles codes )along with the pricing
supplied by NSN to customer.
MRN is duly agreed by both strategic partner.
Benefits of MRN>
-
8/8/2019 Nokia Siemens Networks Manoj Giri
23/83
Due to unique code against each items,everyone has the same understanding of the items
discussed ,to avoid any confusion.
There are less possibilities of any mistakes during PO generation .All circles use the same
description in PO resulting in efficiency in order management.
Inventory tracking within circlr and also among the circles.Due to common code,its
easier to compare excess and shortage in different circles. More common Inventory
Report can be generated.
If all warehouse activities are based on oracle codes than it is easier to keep a trace of PO
vs.. delivery vs.. Receipt vs ..Dispatch to sites.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
24/83
CUSTOMERS / BUSINESS PARTNERS OF NSN
1. AIRTEL
2. IDEA
3. BSNL
4. VODAFONE
5. AIRCEL/DISHNET
6. SPICE
7. UNINOR
PROCESS IN BRIEF
Every business moves on the frame lines of process formulated. The efficiency of
services is dependent entirely upon how well the process rules are implemented.
Logistics too survives on customer satisfaction through fast and cost benefiting services.
Thus it becomes necessary to outstand in process techniques. Thus the whole project is
revolving around how to bring improvement in existing process in NSN to make it further
the best company providing with a strong focus on Logistics and Supply Chain
Management.
Lets look at the theoretical aspect of the process prevailing in NSN in a simpler way.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
25/83
The first step distribution is- Nokia Siemens Network Pvt. Ltd. gets Purchase Order (PO)
from the customer. They get this PO from its customer i.e. DISHNET WIRELESS
LIMITED (The CT (Customer Team). in which Im doing my project).
After receiving the PO, it is sent to Site Engineering team to provide BOQ i.e. Bill of
Quantity, which describes different Line Items which concludes a single order.
This BOQ is sent to CMPRO team as well as to the vendor (for reserving the desired
quantities to be taken into production).
CMPRO team initiates Purchase Orders for different Line Items to different vendors.
These POs are routed to vendors through CT Logistics team. Initially, PO is sent as a
soft copy but within one week signed PO is sent to the logistics for record purpose.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
26/83
One PO is sent to the vendor, it is expected that vendor will revert back with Ready for
Shipment (RFS) date. These dates are captured in a tracker updated online on group
drive.
Upon successful production and packing of material, vendors sends invoice, packing list
& LR (Lorry Receipt) as soft copy to NSN. NSN logistics team books the purchases in
MLS system & creates sales invoice towards DISHNET..
This sales invoice is sent to vendor for him to use this to establish E1
sales before
delivery of material at customers warehouse.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
27/83
For dispatching the material by vendor, following documents are important:-
NSN Invoice
y Lorry Receipt
y Signed CMPRO PO
Now, vendor will dispatch the material with supporting documents.
Vendor will deliver the material at customer warehouse or direct at the site (as per the
guidelines), and takes POD (Proof of Delivery) on LR (Lorry Receipt) and the same is
submitted to NSN for vendor billing process and same POD will be sent to our customer
for NSN payment.
Now summarizing the whole theory in a diagrammatic view.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
28/83
The Process which is described above looks very simpler in terms of viewing, but it takes
a lot of work to handle all these things.
Handling of paper work, follow up with vendors for invoices, keeping track of material
dispatched via the date of Proof of Delivery (POD), data entry in Modular Logistic
System (MLS), maintaining different sheets in excel etc. all these are a part of job which
has to be done by a Logistic Coordinator.
The main Key Duties and responsibilities of Logistic Coordinator (the position which I
was also
assigned) are: -
y Coordination with Central Team with regards to dispatches of material
from vender locations to DISHNETWIRELESS LIMITED warehouse.
y Coordination with DISHNET Commercial team with regards to their
requirements of material on day to day basis & sending updates to
central team
y Sharing shipment readiness v/s order issued date with relevant Project
/ Commercial team of DISHNET.
y Sending pre - alert of documents for shipments moved from vendor
premises to DISHNET warehouse personnel. These documents to
include NSN invoices, Lorry Receipt & Packing List.
y Tracking shipments in transit & ensuring timely delivery of material to
warehouse.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
29/83
y Escalating issues in case of delays to relevant Central Logistics
Coordinator.
y Collection of Original Lorry Receipt & NSN Invoice, duly
acknowledged by DISHNET warehouse.
y Updating Central team with documentation of material delivered at
warehouse & sending original documents by courier to NSN
Logistics team in Gurgaon.
y Receiving & checking all documents before submission of the same to
DISHNET Commercial team for payments.
y Submitting clean documents & taking acknowledgment of documents
delivered to DISHNET.
y Reconciling records of order delivered against issued with DISHNET..
y Follow up with Commercial team to prepare Goods Receipt Note
(GRN) & further, forwarding the same to DISHNET Projects /
Networks team for verification & approval.
y Follow up with Projects / Networks team for timely approval of
documentation & clearing all doubts with regards to documentation &
supplies. Follow up for forwarding clean documents to DISHNET
Finance team for Payments.
y Follow up with DISHNET finance team for timely payments.
y Reporting facts & figures to Commercial team with regards to invoices
submitted, processed at different levels, paid & pendency with
reason.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
30/83
ORGANIZATION CHART
ALM
L5 -Logistic
Coordinator (1)
(State)
L4 - Logistic
Specialist (1) -
(State)
L3 - Logistic
Coordinator (1)
(Inst Mat & TK Business)
L2- Logistic
Coordinator (2)
(Inst Mat Oredering & Delivering)
L1- Payment
Coordinator(1)
(Documentsand Follow up)
L0 - Logistic Coordinator (3)
Distribution (1)
Warehousing (1)Data Maintainence (1)
-
8/8/2019 Nokia Siemens Networks Manoj Giri
31/83
IMPORT
Basics of a telecom network:-
(1)Basically ,the main electronics components in a telecoms are:BTS(BASE
TRANSRECEIVER STATION)
bsc(base station controller)
TCSM(TRANSCORDER AND SUBMULTIPLEXER)
MSC(MAIN SWITCHING CENTER)
MGW(MEDIA GATE WAY)
HLR(HOME LOCATION REGISTER)
(2)COMPONENTS acting as accessories in transmission of radio waves are :Antennas
and hops.
(3)operator specific service parameters are loaded into IN(INTELLIGENT
NETWORKS)
(4)BTS>ULTRA BTS(INDOOR BTS,OUT DOOR BTS)
flexi bts
flexi indoor bts
flexi out door bts
ultra mini bts
metro bts
BTS comprise of cabinet,trx cards and other type of cards.
(5)HOPS AND MW ANTENNAS:
mw antennas categorized according to the frequency spectrum..
-
8/8/2019 Nokia Siemens Networks Manoj Giri
32/83
ORDER MANAGEMENT AND LOGISTICS PROCESS
Om process starts with receipt of customer purchase order
Customer PO comes to central MIS coordinator
Central MIS coordinator receives the PO and puts a stamp with the received date
mentioned on it.
He/She copies the annexure to an excel sheet.
Scanned copy of the PO is sent to the ALM for approval.
Performa invoices are sent to the customer (for BTS, and shops) by the logistics
coordinator (LC)
Annexure are sent to solution manager for config files.
Config files gives the bill of material,i.e the components to be ordered the item
code.
Specification to be ordered etc.
Once the config file is received from the solution team, the logistics coordinator a
manual ordering sheet(indicating the customer PO.no quantity to be ordered and
the config file reference) to DMC.(delivery management center)
DMC purchases in the order to MLS(modular logistics system)
Plant takes the orders as a committed figure orders only after the orders gets
reflected in SAP.
DHL sends the MLS and SAP orders nos to be LC along with the RFS dates
(dates on which the shipment would be ready)
Customer PO can be either a paid PO or a FOC PO.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
33/83
If the PO is a paid PO, and the terms of payments is (LC) letter of credit),the
shipment can be effected only after the customer open an LC and we receive a
confirmation of LC from our bank .The LC conformation activity is handled by
DMC.
All equipments used for TRANSMISSION (like BTS and Antennes) requires a
WPC (wireless planning commission) import customes takes the WPC licence
from dept.of tele communication , customer would require the PO copy and our
performa invoice for applying WPC licence.
RFS conformation is provided by DMC there open order reports.
LC updates the MLS PO details and RFS detail ,on a DCS (delivery control
sheet)
One week prior to the committed RFS state prepares a SR (shipment request)
and the SR is entered in the DCS against the customer PO no.
one PO can have multiple SRS. all our subsequent shipment tracking would be
based on SR nos.
LC updates the SR details in MDC (must delivery list) and DCS.
On the date of RFS, DMC provides the draft invoices and packing MST.
Draft invoice and packing list is sent to the customer for approval.
Upon receiving customer approval (for draft invoices), DMC prepares an
SLI(shippers letter of instruction)and advices the hub for handover to customer
designated freight forwarders.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
34/83
To freight forwarder accepts the shipment from the hub and does a booking with
the airline.
Freight forwarder issues an airway bill to DMC.
DMC does the sales recognition based on the value of the invoice upon receipt
and AWB and updated in mds .
All handover and dispatch details are updated in dcs.
DCS is circulated to the customer on every Wednesday/Friday
Warehouse confirms the receipt of goods in the DCS by mentioning the date of
receipt against the respective SR.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
35/83
Primary responsibilities of LC
Updation of DCS (delivery control sheet)
Release of all SRS (Shipment request)
Follow up on draft invoices and parking list.
Checking of parking list with config files.
Release of SLI (shipper loading instruction) post DI approves (draftinvoice)
Updating all details in DCS.
Timely updation of MDL (must delivery list ) and sending the same toMIS team.
RFS configuration (ready for shipment)
To ensure no P and H above limit days
Contract for all circle related issues.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
36/83
Primary Responsibilities of ALM
To provide ordering information to cop in co-ordination with.
To provide the circle priorities to cop for ordering (common ordering proof) To carry out allocation in case of any allocation request from DMC/delivery
manager/PAM. To sit with respective circle LCS and do a weekly review of pack and hold
situations and send remarks for all P and H cases above decided days.
To review the SLI done and sales recognized. Will be escalation point for all circle related issues. COP stands (common ordering pool)
Cube ComplaintH
andling Circles LC gets the date on missing short/damaged shipment from circles.
Circle LC would forward the details to COP for handling cube complaints.
COP would punch in all such cases into cube tool.
COP would track all cube cases t ill closure.
COP would maintain a cube complain tracker ,which would be a database on allopen and closed cube complain.
Cop would send weekly updates to LC/ALM on the status of the cubes.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
37/83
FRONT END ACTIVITIES>MLS
Ordering in MLS.
SR handling
Draft creation
Sent and hand over instruction to hup./
Follow up with lsp for airways
Dispatch of documents
Document presentation in bank
Mls reporting
Supply end activities>SAP
Orders to be handled in SAP
Orders to be confirms in SAP
Scheduling
Packing list printing
Stock transfer note/ invoice etc.
Interaction with pam.
Attending meetings
M.L.S reporting
-
8/8/2019 Nokia Siemens Networks Manoj Giri
38/83
Lead Time in logistics
Lead time is the period between a customer's order and delivery of the final
product.
A small order of a pre-existing item may only have a few hours lead time, but a larger
order of custom-made parts may have a lead time of weeks, months or even longer. It all
depends on a number of factors, from the time it takes to create the machinery to the
speed of the delivery system. Lead time may change according to seasons or holidays or
overall demand for the product.
Manufacturers are always looking for ways to improve the lead time on their products.
Lead time can mean the difference between making the sale and watching a competitor
sign the contract. If a company can deliver the product weeks ahead of the competition, it
stands a better chance of receiving future orders. Because of this, management and labor
teams routinely hold meetings to discuss lead time improvements.
Reducing Lead Time - THE Most Important Factor in Achieving World-Class
Operations
In the 1960s and 70s, manufacturers competed on the basis of cost efficiency. In the
1980s, quality was the rage and Zero Defects and Six Sigma came into vogue. Cost and
quality are still crucial to world-class operations, but today, the focus is squarely on
speed. Nearly all manufacturers today are under pressure from customers to cut lead
times. And rapid-response manufacturing pays big dividends
-
8/8/2019 Nokia Siemens Networks Manoj Giri
39/83
Customer lead time
refers to the time span between customer ordering and customer receipt. Manufacturing
lead time refers to the time span from material availability at the first processing
operation to completion at the last operation
Manufacturing lead time
refers to the time span from material availability at the first processing operation to
completion at the last operation
Implementing Lead Time Reduction
The following guidelines will help you to reduce lead times in your organization:
y Measure current lead times and set improvement targets. Lead times, as
important as they are, are not measured in most organizations. People may have a
sense as to the planning horizon, but can't say how long it took for individual
products to cross the value stream. Things that are not measured cannot be
improved.
y Change the organization from a functional orientation to a product
orientation. If possible, all resources required to produce a product should be
located close to each other. These product-focused groups are called work cells or
cellular manufacturing. Include office operations as these functions often account
for half of total customer lead time.
y Cross-train plant personnel within cells in a number of operations for
greater flexibility. Reducing the number of job classifications and maintaining
multiskilled teams on each shift is critical to rapid response manufacturing.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
40/83
y Empower work cells and teams to take ownership for the entire value
stream. Drive accountability for product cost, quality and delivery down to the
lowest appropriate level (ideally, the operators themselves).
y Continually reduce batch sizes between work centers. With operations in close
proximity, transfer batches can be smaller and WIP inventories can be minimized.
y Institute local scheduling between work cells. Visual shop floor scheduling
tools, like kanban systems, can be used to minimize WIP between cells and to
eliminate queue time throughout the value stream.
By employing these principles, many world-class manufacturers have shrunk lead times
by 50-80%, gained market share, improved profitability and increased employee morale
on the shop floor.
Lead time in Supply Chain Management
A more conventional definition of Lead Time in the Supply Chain Management realms is
the time from the moment the supplier receives an order to the moment it ships it in the
absence of finished goods or intermediate (Work In Progress) inventory--it is the time it
takes to actually manufacture the order without any inventory other than raw materials or
supply parts.
Lead time in Manufacturing
In the manufacturing environment, Lead Time has the same definition as that of Supply
Chain Management, but it includes the time required to ship the product to the purchaser.
The shipping time is included because the manufacturing company needs to know when
the parts will be available for Material requirements planning. It is also possible for lead
time to include the time it takes for a company to process and have the part ready for
-
8/8/2019 Nokia Siemens Networks Manoj Giri
41/83
manufacturing once it has been received. The time it takes a company to unload a product
from a truck, inspect it, and move it into storage is non-trivial. With tight manufacturing
constraints or when a company is using Just In Time manufacturing it is important for
supply chain to know how long their own internal processes take.
Example
Company A needs a part that can be manufactured in two days once Company B has
received an order. It takes three days for company A to receive the part once shipped, and
one additional day before the part is ready to go into manufacturing.
y
If Company A's Supply Chain calls Company B they will be quoted a lead time of
2 days for the part.
y If Company A's Manufacturing division asks the Supply Chain division what the
lead time is, they will be quoted 5 days since shipping will be included.
y If a line worker asks the Manufacturing Division boss what the lead time is before
the part is ready to be used, it will be 6 days because setup time will be included.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
42/83
TRANSIT TIME>IMPORTED ITEMS IN NOKIA SIEMENS NETWORKS
ITEMS LEAD TIME
MSC 6-8WEEKS
BSC 5-8WEEKS
BTS 4-5WEEKS
HOPS 6-8WEEKS
LEAD TIME IN LOCAL PURCHASE IN NOKIA SIEMENS NETWORKS
ITEMS LEAD TIME TRANSIT TIME
POWER PLANT 4 WEEKS 4-7DAY
S
BATTERIES 6-8WEEKS 4-8DAYS
REPEATERS 4-10WEEKS 4-6DAYS
FEEDER CABLES 4-6WEEKS 2-12DAYS
ALL POWER CABLES 3WEEKS 4-8DAYS
BTS INST.MATERIALS 4WEEKS 4-8DAYS
-
8/8/2019 Nokia Siemens Networks Manoj Giri
43/83
SWOT ANALYSIS
STRENGTHS:
1. Our Customers i.e. Bharti is satisfied with the services provided.
2. So far NSN hasnt faced any problem of delays during distribution.
3. A competitive strategy to meet customer demand.
4. A process team of specialist working together in purchasing, production, planning, forecasting, and inventory control, material handling, ware housing,transportation.
5. Vendors satisfaction with NSN Policies e.g. KUEHNE NAGEL is highlysatisfied.
6. NSN is able to maintain its market value through out.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
44/83
WEAKNESSES:
1. SDR (Site Delivery Request) which has all data regarding site of delivery &material to be dispatched is not provided/mailed at right time which lead toinconvenience like efficiency decrease, quality of work and wastage of time too at
vendors end.
2. HAND CARRY: Sometimes NSNs employees demand for hand carrying ofmaterial on the spot at warehouse. This too hampers the working management ofvendors.
3. NSNs engineers are sometime not available at the delivery site. This problem ismainly faced in NCR delivery cases.
4. Vendor finds difficulty in locating address at time of receiving payments asmany places are mentioned for collection of amount.
7. Various details of vendors invoice are mainly not mentioned on POs of NSN
OPPORTUNITIES:
y The Canadian & Global Economies run on Logistics i.e. these Canadian Firms
are estimated at $50 billion revenue per year.
y
Around 4, 80,000 people work as house logisticians and there is another 4,
00,000 people who work directly in logistics related industries.
y The transportation and logistics industry is evolving to meet the 21 st century
global economy
-
8/8/2019 Nokia Siemens Networks Manoj Giri
45/83
THREATS:
y Competitive pressures, deregulation & Global markets are rapidly
restructuring traditional logistics into more knowledge based.
y 'The market for traditional telephony, whether fixed or mobile, is becomingincreasingly saturated that it can no longer be a viable exclusive source ofgrowth. On the other hand, convergence of the telecom sector withtraditionally unrelated sectors has brought so many opportunities and threats -as telecom operators will have to battle with a wide array of new competitors,including traditional media companies,
information technology players, and even industries such as financial services'
y No Industry is changing as fast as telecom. The winner will be those who
generate revenue and lock up customers through new offerings whileeffectively managing cost and risk
-
8/8/2019 Nokia Siemens Networks Manoj Giri
46/83
ERP stands forEnterprise Resource Planning
Introduction of ERP
ERP modules may be able to interface with an organization's own software with varyingdegrees of effort, and, depending on the software, ERP modules may be alterable via thevendor's proprietary tools as well as proprietary or standard programming languages.
Enterprise Resource Planning systems (ERP) integrate (or attempt to integrate) all dataand processes of an organization into a unified system. A typical ERP system will usemultiple components of computer software and hardware to achieve the integration. Akey ingredient of most ERP systems is the use of a unified database to store data for thevarious system modules.
ERP is intended to facilitate information sharing, business planning, and decision makingon an enterprise-wide basis. ERP enjoyed a great deal of popularity among largemanufacturers in the mid-to late-1990s. Most early ERP systems consisted of mainframecomputers and software programs that integrated the various smaller systems used indifferent parts of a company. Since the early ERP systems could cost up to $2 million andtake as long as four years to implement, the main market for the systems was Fortune1000 companies.
ERP are often incorrectly called back office systems indicating that customers and thegeneral public are not directly involved. This is contrasted with front office systems likecustomer relationship management (CRM) systems that deal directly with the customers,
or the E-business systems such as E-Commerce, E-Government, E -Telecom, and E-Finance, or supplier relationship management (SRM) systems.
Enterprise Resource Planning systems integrate all data and processes of anorganization into unified system.
The key feature of an ERP system is it uses a single or unified database to store data forthe various system modules.
Enterprise Resource Planning, An integrated information system that serves alldepartments within an enterprise. A process by which a company often a manufacturermanages and integrates the important parts of its business.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
47/83
An ERP management information system integrates areas such as planning,purchasing, inventory, sales, marketing, finance, human resources, and also connects theorganization with its suppliers and customers. etc..
Think of ERP as the glue that binds the different computer systems for a large
organization. Typically each department would have their own system optimized for that
division's particular tasks. With ERP, each department still has their own system, but they
can communicate and share information easier with the rest of the company.
After ERP
ERP software, among other things, combined the data of formerly separate applications.This made the worry of keeping numbers in synchronization across multiple systemsdisappears. It standardized and reduced the number of software specialties requiredwithin larger organizations.
Integrated systems
Consistent interface
One database
Access to current data
Improved planning capabilities
Multinational capabilities
Example: Order Processing
Salesperson generates a quote for computer equipment overseas
System immediately creates product configuration, price, delivery date, shipping
method.
Customer accepts quote over Internet
-
8/8/2019 Nokia Siemens Networks Manoj Giri
48/83
Before ERP
Prior to the concept of ERP systems, departments within an organization (for example,the Human Resources (HR) department, the Payroll (PR) department, and the Financials
department) would have their own computer systems. The HR computer system (Oftencalled HRMS or HRIS) would typically contain information on the department, reportingstructure, and personal details of employees. The PR department would typicallycalculate and store paycheck information. The Financials department would typicallystore financial transactions for the organization. Each system would have to rely on a setof common data to communicate with each other. For the HRIS to send salaryinformation to the PR system, an employee number would need to be assigned andremain static between the two systems to accurately identify an employee. The Financialssystem was not interested in the employee level data, but only the payouts made by thePR systems, such as the Tax payments to various authorities, payments for employee benefits to providers, and so on. This provided complications. For instance, a person
could not be paid in the Payroll system without an employee number.
Multiple systems, different interfaces, difficult to extract info about customers,
sales.
Hard to maintain, many languages, databases, inconsistencies
Can take weeks or months to obtain info about customers, or where systems
changes are needed.
System automatically
Schedules shipping
Reserves material
Orders parts from suppliers
Schedules assembly
Checks customer credit limit
Updates sales & production forecasts
-
8/8/2019 Nokia Siemens Networks Manoj Giri
49/83
Creates MRP & bill-of-material lists
Updates salesperson's payroll
Commission
Travel account
Calculates product cost & profitability
Updates accounting, financial records.
Benefits of Erp
When the idea was first introduced, ERP was an attractive solution for many large
companies because it offered so many potential uses. For example, the same systemcould be used to forecast demand for a product, order the necessary raw materials,establish production schedules, track inventory, allocate costs, and project key financialmeasures. ERP "acts as a planning backbone for a company's core business processes,"Gary Forger wrote in Modern Materials Handling. "In addition to directing many ofthem, the system also ties together these varied processes using data from across thecompany. For instance, a typical ERP system manages functions and activities asdifferent as the bills of materials, order entry, purchasing, accounts payable, humanresources, and inventory control, to name just a few of the 60 modules available. Asneeded, ERP is also able to share the data from these processes with other corporatesoftware systems." Another important benefit of ERP systems was that they allowedcompanies to replace a tangle of complex computer applications with a single, integratedsystem.
Drawbacks OF ERP
Despite these potential benefits, however, traditional ERP systems also had a number ofdrawbacks. For instance, the early systems tended to be large, complicated, andexpensive. Implementation required an enormous time commitment from a company'sinformation technology department or outside professionals. In addition, because ERPsystems affected most major departments in a company, they tended to create changes inmany business processes. Putting ERP in place thus required new procedures, employeetraining, and both managerial and technical support. As a result, many companies foundthe changeover to ERP a slow and painful process. Once the implementation phase wascomplete, some businesses had trouble quantifying the benefits they gained from ERP.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
50/83
Advantages
In the absence of an ERP system, a large manufacturer may find itself with manysoftware applications that do not talk to each other and do not effectively interface. Tasksthat need to interface with one another may involve:
Design engineering (how to best make the product) Order tracking from acceptance through fulfillment The revenue cycle from invoice through cash receipt Managing interdependencies of complex Bill of Materials Tracking the 3-way match between Purchase orders (what was ordered), Inventory
receipts (what arrived), and Costing (what the vendor invoiced) The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a
granular level.
Change how a product is made, in the engineering details, and that is how it will now bemade. Effective dates can be used to control when the switch over will occur from an oldversion to the next one, both the date that some ingredients go into effect, and date thatsome are discontinued. Part of the change can include labeling to identify versionnumbers.
Computer security is included within an ERP to protect against both outsider crime, suchas industrial espionage, and insider crime, such as embezzlement. A data tamperingscenario might involve a terrorist altering a Bill of Materials so as to put poison in foodproducts, or other sabotage. ERP security helps to prevent abuse as well.
Disadvantages
Many problems organizations have with ERP systems are due to inadequate investmentin ongoing training for involved personnel, including those implementing and testingchanges, as well as a lack of corporate policy protecting the integrity of the data in theERP systems and how it is used.
Limitations of ERP include:
-
8/8/2019 Nokia Siemens Networks Manoj Giri
51/83
Success depends on the skill and experience of the workforce, including training abouthow to make the system work correctly. Many companies cut costs by cutting trainingbudgets. Privately owned small enterprises are often undercapitalized, meaning their ERPsystem is often operated by personnel with inadequate education in ERP in general, suchas APICS foundations, and in the particular ERP vendor package being used.
Personnel turnover; companies can employ new managers lacking education in thecompany's ERP system, proposing changes in business practices that are out ofsynchronization with the best utilization of the company's selected ERP.
Customization of the ERP software is limited. Some customization may involvechanging of the ERP software structure which is usually not allowed.
Re-engineering of business processes to fit the "industry standard" prescribed by theERP system may lead to a loss of competitive advantage.
ERP systems can be very expensive to install often ranging from 30,000 to500,000,000 for multinational companies.
ERP vendors can charge sums of money for annual license renewal that is unrelated
to the size of the company using the ERP or its profitability. Technical support personnel often give replies to callers that are inappropriate for thecaller's corporate structure. Computer security concerns arise, for example whentelling a non-programmer how to change a database on the fly, at a company thatrequires an audit trail of changes so as to meet some regulatory standards.
ERP are often seen as too rigid and too difficult to adapt to the specific workflow andbusiness process of some companiesthis is cited as one of the main causes of theirfailure.
Systems can be difficult to use.
Systems are too restrictive and do not allow much flexibility in implementation andusage.
The system can suffer from the "weakest link" probleminefficiency in onedepartment or at one of the partners may affect other participants.
Many of the integrated links need high accuracy in other applications to workeffectively. A company can achieve minimum standards, and then over time "dirtydata" will reduce the reliability of some applications.
Once a system is established, switching costs are very high for any one of the partners(reducing flexibility and strategic control at the corporate level).
The blurring of company boundaries can cause problems in accountability, lines ofresponsibility, and employee morale.
Resistance in sharing sensitive internal information between departments can reducethe effectiveness of the software.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
52/83
There are frequent compatibility problems with the various legacy systems of thepartners.
The system may be over-engineered relative to the actual needs of the customer.
1.2.4 CEO Survey - why ERP?
67% Improve info accuracy, availability
61% Improve management decision making
51% Reduce cost/improve efficiency
38% Upgrade technology
31% Resolve tactical issue (e.g. Y2k)
24% Grow revenue
15% Havent done it yet
4% Other
ERP Requires
-
8/8/2019 Nokia Siemens Networks Manoj Giri
53/83
Strong executive support to implement
Process approach rather than silos
Change in business procedures (BPR)
Change in organizational structure, culture, strategy
Technology change
Erp Solutions for Small Businesses
As sales of ERP systems to large manufacturing companies began to slow, some vendorschanged their focus to smaller companies. According to a survey by AMR researchreported in Modern Materials Handling, the overall market for ERP systems grew 21percent in 2007, despite the fact that sales to companies with greater than $1 billion inrevenues declined 14 percent during the same period. "ERP applications are no longer just the stuff of huge corporations. "While billion-dollar manufacturing companies arenow completing their ERP implementations, mid-size customerswitness to theimproved business processes of manufacturing market leadersare beginning to refinetheir own operations. Invariably the most substantial reason for companies toimplement ERP is that without it, staying competitive is a practical impossibility. Thebusiness world is moving ever closer toward a completely collaborative model, and that
means companies must increasingly share with their suppliers, distributors, andcustomers the in-house information that they once so vigorously protected."
Of course, small and medium-sized companiesas well as those involved in servicerather than manufacturing industrieshave different resources, infrastructure, and needsthan the large industrial corporations who provided the original market for ERP systems.Vendors had to create a new generation of ERP software that was easier to install, moremanageable, required less implementation time, and entailed lower startup costs. Many ofthese new systems were more modular, which allowed installation to proceed in smallerincrements with less support from information technology professionals. Other small businesses elected to outsource their ERP needs to vendors. For a fixed amount ofmoney, the vendor would supply the technology and the support staff needed toimplement and maintain it. This option often proved easier and cheaper than buying andimplementing a whole system, particularly when the software and technology seemedlikely to become outdated within a few years.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
54/83
HEAD QUARTER : WALLDORF , GERMANY
-
8/8/2019 Nokia Siemens Networks Manoj Giri
55/83
SAP STANDS FOR :
Systems Applications and Products in Data Processing.
INTRODUCTION
SAP is the fourth largest software company in the world. It ranks after Microsoft,IBM and Oracle.
SAP Head quarters are in Walldorf, Germany. SAP was founded in 1972 by fiveformer IBM engineers.
SAP released SAP R/2 version initially. The architecture of R/2 system is Mainframearchitecture.
Later SAP R/3 is released which is different from R/2 architecture. R stands for Realtime. 3 stands for 3 tier architecture.There are over 100,800 installations at more than 35,000 companies. SAP productsare used by 12 million people in more than 120 countries
SAP is the Fourth-largest independent software supplier worldwide and the largest producer of standard enterprise wise business applications for the client-serversoftware market. The company's principal business activities are the development andmarketing of an integrated line of computer software for over 1,000 predefined business processes, from financial accounting, supply chain management, and business work flow to human resources, sales and distribution, and customerrelationship management. The largest software group in Europe, its business software
-
8/8/2019 Nokia Siemens Networks Manoj Giri
56/83
applications are used by over 35,000 companies around the world in such industriesas chemicals, high tech, telecommunications, electronics, utilities, oil and gas,banking, insurance, healthcare, pharmaceuticals, consumer products, automotive, andretail. Through its 80 international subsidiaries, led by its U.S. subsidiary SAPAmerica, SAP markets its software and consulting, training, and support services in
more than 120 countries.
KEY PEOPLE
CEO : HENNING KAGERMAN
CHAIRMAN OF SUPERVISORY BOARD : HASSO PLATTNER
CFO & MEMBER EXECUTIVE BOARD : WERNER BRANDT
CUSTOMER SOLUTIONS & OPERATIONS : LEO APOTHEKER
Principal Competitors
MICROSOFT
ORACLE CORPORATION
IBM
PEOPLE SOFT INC.
SIEBEL SYSTEMS
BAAN COMPANY
J.D. EDWARD
-
8/8/2019 Nokia Siemens Networks Manoj Giri
57/83
KKEEYY NNUUMMBBEERRSS FFOORRFFIISSCCAALL YYEEAARR (( 22000066 ))
11.. RREEVVEENNUUEE :: 1122..22 BBiilllliioonn UUSS DDOOLLLLAARR
22.. SSAALLEE :: 1122,,440088 MMIILLLLIIOONN UUSS DDOOLLLLAARR
33.. NNEETT IINNCCOOMMEE :: 22,,446699..77 MMIILLLLIIOONN UUSS DDOOLLLLAARR
44.. IINNCCOOMMEE GGRROOWWTTHH
:: 3399
..33 %%
55.. OONNEEYYEEAARRGGRROOWWTTHH :: 2233..11 %%
66.. EEMMPPLLOOYYEEEE ::3399,,335555
7. EEMMPPLLOOYYEEEE GGRRPPWWTTHH :: 1133..99 %%
History of SAP R/3
-
8/8/2019 Nokia Siemens Networks Manoj Giri
58/83
The first version of SAP flagship enterprise software was a financial Accounting system
named R/1. (The "R" was for "resource"). This was replaced by R/2 at the end of the
1970s. SAP R/2 was a mainframe based business application software suite that was very
successful in the 1980s and early 1990s. It was particularly popular with large
multinational European companies who required soft-real-time business applications,
with multi-currency and multi-language capabilities built in. With the advent of
distributed client-server computing SAP AG brought out a client-server version of the
software called SAP R/3 that was manageable on multiple platforms and operating
systems, such as Microsoft Windows or UNIX since 1999, which opened up SAP to a
whole new customer base. SAP R/3 was officially launched on 6 July 1992. SAP came to
dominate the large business applications market over the next 10 years.
KEY DATES
1972: Company is founded in Walldorf, Germany by five German
1976: SAP declares itself a GmbH corporation (a limited
1979: SAP R/2 is launched, a real-time mainframe-based
1988: Company establishes SAP America in Philadelphia.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
59/83
1992: SAP R/3 is launched servicing a client-server
1994: SAP forms an alliance with Microsoft to integrate SAP
1996: SAP industry-specific applications are introduced.
1999: Company launches an integrated web-enabled platform, 2001: The company acquires TopTier Software and forms SAP
Business and markets
SAP is the largest software company in Europe and the fourth largest in the world. Itranks after Microsoft, Google, and IBM in terms of market capitalization. SAP is also thelargest business application and Enterprise Resource Planning (ERP) solution andsoftware provider in terms of revenue[3].
SAP IS USED IN MORE THAN 35,000 COMPANIES
SAP IS USED IN OVER 120 COUNTRIES.
SAP HAS MORE THAN 80 INTERNATIONAL SUSIDIARIES ,WHICH IS LED BY IT,S US SUBSIDIARY - SAP AMERICA.
SAP HAVE OVER 100,800 INSTALLATION,S
SAP IS USED BY MORE THAN 12 MILLION PEOPLE.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
60/83
WHY SAP
SAP is an integrated ERP (Enterprise Resource Planner) application. Why a compnay
should go for it, To manage the 4 M's (Money, Material, Manufacturing, Machine)effectively.
Market leading ERP product
Extensive functionality
Used by mid to large companies
International features
Can be run over internet/intranet
10 million users, 38,000 installations
13,000 companies, > 120 countries
SAP AG $15 billion, 5,000 developers, 35-40% on research
-
8/8/2019 Nokia Siemens Networks Manoj Giri
61/83
The moment you decide to go in for SAP
-Find a Partner who can help you in Implement the System-Place Order-Place Order for the Hardware-Buy Hardware & SAP application-Install & Configuration shall be carried our by the Partner-Training shall be given by the Partner
And then you use it effectively
Provides info about all aspects of the business -- worldwide
Reduces inventory, waste
Easy communication with customers, suppliers
Solutions for
y All geographic regions
y 19 Comprehensive Industry Solutions
y All organizations regardless of size
y Solutions designed with enterprises and users in mind
y Scalable for your business
y Continuous technology evolution
y Constant value innovation
y The user is at the center
y Instantly usable applications.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
62/83
SAP SCREEN ELEMENTS
Command field: You can use the command field to go to applications directly by
entering the transaction code. You can find the transaction code
Either in the SAP Easy Access menu tree
Menu bar: The menus shown here depend on which application you are working in.
These menus contain cascading menu options.
Standard toolbar: The icons in the system function bar are available on all R/3 screens.
Any icons that you cannot use on a particular screen are dimmed. If you leave the cursor
on an icon for a moment, a small flag will appear with the name (or function) of that icon.
You will also see the corresponding function key. The application toolbar shows you
which functions are available in the current application.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
63/83
Title bar: The title bar displays your current position and activity in the system.
Check boxes: Checkboxes allow you to select several options simultaneously within a
group.
Radio buttons: Radio buttons allow you to select one option only.
Status bar: The status bar displays information on the current system status, for
example, warning and error messages.
Tab : A tab provides a clearer overview of several information screens.
Options: You can set your font size, list colors, and so on here.
SAP R/3 Technology
SAP R/3 is a client/server based application, utilizing a 3-tiered model. A presentationlayer, or client, interfaces with the user. The application layer houses all the business-specific logic, and the database layer records and stores all the information about thesystem, including transactional and configuration data.
SAP R/3 functionality is structured using its own proprietary language called ABAP(Advanced Business Application Programming). ABAP, or ABAP/4 is a fourthgeneration language (4GL), geared towards the creation of simple, yet powerful programs. R/3 also offers a complete development environment where developers caneither modify existing SAP code to modify existing functionality or develop their ownfunctions, whether reports or complete transactional systems within the SAP framework.
ABAP's main interaction with the database system is via Open SQL statements. Thesestatements allow a developer to query, update, or delete information from the database.Advanced topics include GUI development and advanced integration with other systems.With the introduction of ABAP Objects, ABAP provides the opportunity to developapplications with object-oriented programming.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
64/83
The most difficult part of SAP R/3 is its implementation. Simply because SAP R/3 isnever used the same way in any two places. For instance, Atlas Copco can have adifferent implementation of SAP R/3 from Procter & Gamble and so forth. Two primaryissues are the root of the complexity and of the differences:
y
Customization configuration - Within R/3, there are tens of thousands of databasetables that may be used to control how the application behaves. For instance, eachcompany will have its own accounting "Chart of Accounts" which reflects how itstransactions flow together to represent its activity. That will be specific to a givencompany. In general, the behavior (and appearance) of virtually every screen andtransaction is controlled by configuration tables. This gives the implementor greatpower to make the application behave differently for different environments. Withthat power comes considerable complexity.
y Extensions, Bolt-Ons - In any company, there will be a need to develop interface programs to communicate with other corporate information systems. Thisgenerally involves developing ABAP/4 code, and considerable "systems
integration" effort to either determine what data is to be drawn out of R/3 or tointerface into R/3 to load data into the system.
Due to the complexity of implementation, these companies recruit highly skilled SAPconsultants to do the job. The implementation must consider the company's needs andresources. Some companies implement only a few modules of SAP while others maywant numerous modules.
SAP has several layers. The Basis System (BC) includes the ABAP programminglanguage, and is the heart (i.e. the base) of operations and should not be visible to higherlevel or managerial users. Other customizing and implementation tools exist also. The
heart of the system (from a manager's viewpoint) are the application modules. Thesemodules may not all be implemented in a typical company but they are all related and arelisted below:
SAP R/3 CORE FUNCTIONALITY
-
8/8/2019 Nokia Siemens Networks Manoj Giri
65/83
SAP R/3
Logistics
Financials
Human Resources
R/3 Financials
Financial Accounting
General ledger, accounts receivable, payable.
Controlling.
Costing, profitability, planning.
Treasury
Cash, funds management.
Capital Investment
R/3 Logistics
Sales and Distribution
Production Planning
Materials Management
Plant Maintenance
Quality Management
Procurement
R/3 Human Resources
-
8/8/2019 Nokia Siemens Networks Manoj Giri
66/83
Administration
Payroll accounting
Shift management
Employee attendance
Trip costs
Training
Recruitment
Personal management
SAP R/3 CLIENT SERVER TECHNOLOGY
The R/3 System architecture allows you to separate application from the
presentation and the database. This is the prerequisite for distributing load onto
several application servers in client/server configurations. Therefore, the system
can be distributed, in hardware terms, at three different levels.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
67/83
This architecture means that the installed host service can be adjusted without any
problems (scalability), especially where load profiles have changed as a result of
increasing user numbers, or because additional components have been used. R/3
System scalability provides you with flexibility when choosing hardware and
software.
An R/3 transaction is a sequence of dialog steps that are consistent in a business
context and that belong together logically. When an R/3 transaction is executed,
all individual dialog steps are performed and the data entered in the transaction is
updated in the database. From the viewpoint of the database, this is a conversion
from one consistent state to the next.
After a user accesses a transaction, the R/3 System starts a query from the
application level to the database level. The query is performed in SQL (Structured
Query Language), the language compatible with most database systems. The
scope of SQL enables the full functionality of the database system, including all
vendor-specific enhancements, to be used.
The ABAP (Advance Business Application Programming language) Dictionary
contains the field definitions that are defined in the standard SAP System. While
online, the system uses the definition of the table fields in the ABAP Dictionary
to check the format of the users field entries. The check on R/3 application level
guarantees data consistency before the data is transferred to the database.
All data and programs in the SAP R/3 System are stored in the database.
SAP ASAP METHODOLOGY
-
8/8/2019 Nokia Siemens Networks Manoj Giri
68/83
Tools include ASAP specific tools to support project management, questionnaires
for the business process consultants and numerous technical guidebooks and
checklists.
The ASAP Roadmap is recommended by SAP for implementation planning and
for use in an R/3 System implementation. The ASAP Roadmap is based on a
step for step method for R/3 System implementation.
Accelerated SAP (ASAP) is SAP's comprehensive implementation solution to
streamline R/3 projects. Accelerated SAP optimizes time, quality and efficient use
of resources. ASAP integrates three components, the ASAP Roadmap, Tools, and
-
8/8/2019 Nokia Siemens Networks Manoj Giri
69/83
R/3 Service and Training, which work in conjunction to support the rapid and
efficient implementation of the R/3 System.
Accelerated SAP Roadmap delivers a process - oriented, clear and concise project
plan to provide step-by-step direction throughout your implementation of R/3.
The ASAP Roadmap consists of five phases: Project Preparation, Business
Blueprint, Realization, Final Preparation, Go Live & Support and continuous
improvement.
R/3 Services and Training includes all consulting, training, and support services,
for example, Hotline, Early Watch, Remote Upgrade or Archiving Service, etc.
These products help to standardize certain tasks to perform them as quickly as
possible.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
70/83
Phase 1 Project Preparation - The primary focus of Phase 1 is getting the project
started, identifying team members and developing a high-level plan.
Phase 2 Business Blueprint- The primary focus of Phase 2 is to understand the business
goals of the company and to determine the business requirements needed to support those
goals.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
71/83
Phase 3 Realization - The purpose of this phase is to implement all the business and
process requirements based on the Business Blueprint. You customize the system step by
step in two work packages, Baseline and Final configuration.
Phase 4 Final Preparation - The purpose of this phase is to complete testing, end-
user training, system management and cut over activities. Critical open issues are
resolved. Upon the successful completion of this phase, you will be ready to run your
business in your productive R/3 system.
Phase 5 Go Live andSupport- Transition from a project oriented, pre-productive
environment to a successful and live productive operation.
MY SAP. COM
-
8/8/2019 Nokia Siemens Networks Manoj Giri
72/83
MySAP.com places the Internet at the center of SAP's activities. It leverages all of
SAP's key assets, including its extensive product portfolio, customer base, partner
community, and expertise in integrating business processes.
MySAP.com is the collaborative environment providing personalized business
solutions on demand
SAP R/3 is the former name of the main ERP software produced by SAP. Its new name ismySAP ERP . In February 1999 SAP executives arrived at a new strategy to deploy in
time for the New Millennium. The result was mySAP.com, a web-enabled platform thatcombined enterprise resource planning (similar to that of R/3) with a series of specialty business software applications such as supply chain management and customerrelationship management. Viewed through a role-based, customized web browserwindow, mySAP.com applications were developer-friendly and capable of integratingwith other vendors' databases, applications, operating systems, and hardware. The new platform also extended to electronic business (e-business) marketplaces and corporateweb portals, which further linked partner companies together and enabled them to
-
8/8/2019 Nokia Siemens Networks Manoj Giri
73/83
collaborate and conduct transactions with one another whether they were using SAP ornon-SAP applications.
The concept of mySAP.com at first proved unclear to customers, even after a $50 millionadvertising campaign. When crucial U.S. revenues dropped in the first quarter of 2000,
management responded with drastic measures. A reorganization of the company'sdevelopment staff working on product lines was the first step in transforming aninternally focused corporate culture into one more customer-centric and better suited forcompetition in U.S. markets, where business-to-business Internet sales were predicted toskyrocket to $2.7 trillion by 2004. To ensure that products were developed withmaximum customer input, SAP America enlisted 100 customers to help write code.Further, SAP's entire marketing department was relocated from Germany to Manhattan.New alliances also helped to strengthen SAP's venture into e-commerce territory. In onesuch alliance, SAP joined forces with Commerce One to develop e-marketplaces oronline trading exchanges where goods and services could be bought or sold. Followingthe formation of SAP Portals in 2001, SAP teamed up with Yahoo! to develop
customized enterprise portals; SAP further bolstered its strength in the enterprise portalmarket through its acquisition of Top Tier Software.
Through its new mySAP.com platform, particularly its specialty applications in supplychain and customer relationship management, SAP appeared to have successfullypositioned itself to capitalize on the flourishing e-business market. By nimbly respondingto competitive challenges and technological advances, and learning to better market its products, SAP would no doubt remain a formidable presence in the global businesssoftware market.
-
8/8/2019 Nokia Siemens Networks Manoj Giri
74/83
mySAP.com
R/3 ERP
Supply Chain Management (SCM)
Business to Business Procurement (BBP)
Strategic Enterprise Management (SEM)
Customer Relationship Management (CRM)
Business Information ( Data ) warehouse ( BW )
R/3 BasisDatabase
R/3Applications
Logistics HRAccounting
R/3Industry Solutions
Internet / Intranet
Business toBusiness
Consumer
Employee
Business Information(Data) Warehouse
Logistics Advanced Planner& Optimizer
StrategicEnterprise
Management
KnowledgeWarehouse
Automotive, ...Utilities,...
Customer
RelationshipManagement
SAP AGmySAP
Business toBusinessProcurement
CorporateFinanceManagement
Environment,Health &Safety
-
8/8/2019 Nokia Siemens Networks Manoj Giri
75/83
SAP Products
SAP's products focus on Enterprise resource planning (ERP), which it helped to pioneer.The company's main product is mySAP ERP. The name of its predecessor, SAP R/3gives a clue to its functionality: the "R" stands for realtime data processing and thenumber 3 relates to a 3-tier architecture: database, application server and client (SAPgui).R/2, which ran on a Mainframe architecture, was the first SAP version.
Other major product offerings include Advanced Planner and Optimizer (APO), BusinessInformation Warehouse (BW), Customer Relationship Management (CRM), SupplyChain Management (SCM), Supplier Relationship Management (SRM), Human ResourceManagement Systems (HRMS), Product Lifecycle Management (PLM), ExchangeInfrastructure (XI), Enterprise Portal (EP) and SAP Knowledge Warehouse (KW).
The APO name has been retired and rolled into SCM. The BW name (BusinessWarehouse) has now been rolled into the SAP NetWeaver BI (Business Intelligence)suite and functions as the reporting module.
The company also offers a new technology platform, named SAP NetWeaver whichreplaces SAP Business Connector for Integration/middleware capabilities[4]. While itsoriginal products are typically used by Fortune 500 companies, SAP is now also activelytargeting small and medium sized enterprises (SME) with its SAP Business One and SAPAll-in-One. SAP R/3 is arranged into distinct functional modules, covering the typicalfunctions in place in an organization. The most widely used modules are Financials and
Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales &Distribution (SD), and Production Planning (PP). Those modules, as well as theadditional components of SAP R/3, are detailed in the next section.
Each module handles specific business tasks on its own, but is linked to the others whereapplicable. For instance, an invoice from the Billing transaction of Sales & Distributionwill pass through to accounting, where it will appear in accounts receivable and cost ofgoods sold.
FI -Financial Accounting
Designed for automated management and external reporting of general ledger, accountsreceivable, accounts payable and other sub-ledger accounts with a user defined chart ofaccounts. As entries are made relating to sales production and payments journal entriesare automatically posted. This connection means that the "books" are designed to reflectthe real situation.The FI module has 8 sub modules:
FI-GL General Ledger Accounting
-
8/8/2019 Nokia Siemens Networks Manoj Giri
76/83
FI-LC Consolidation
FI-AP Accounts Payable
FI-AR Accounts Receivable
FI-BL Bank Accounting
FI-AA Asset Accounting
FI-SL Special Purpose Ledger
FI-FM Funds Management
CO- Controlling
Represents the company's flow of cost and revenue. It is a management instrument fororganizational decisions. It too is automatically updated as events occur.The CO module has following sub modules:
CO-OM Overhead Costing (Cost Centers, Activity Based Costing, InternalOrder Costing)
CO-PA Profitability Analysis
AM -Asset Management
Designed to manage and supervise individual aspects of fixed assets includingpurchase and sale of assets, depreciation and investment management.
PS Project SystemDesigned to support the planning, control and monitoring of long-term, highlycomplex projects with defined goals.
FS InsuranceAn integral part of mySAP ERP, SAP for Insurance enables insurance companies tohandle customer and market requirements and simultaneously control profitabilityand economic viability.
In Release 6.00, SAP for Insurance includes the following components:
FS-CD Collections and disbursements
FS-CM Claims management
-
8/8/2019 Nokia Siemens Networks Manoj Giri
77/83
FS-CS Commissions management
FS-PM Policy management
FS-RI Reinsurance management
IS -Industry Solutions
Combines the SAP application modules and additional industry-specificfunctionality. Special techniques have been developed for industries such as banking, oil and gas, pharmaceuticals, etc.As of Feb 2006, following Industry Specific Solutions are supported by SAP:
IS-A Automotive
IS-ADEC Aerospace and Defense
IS AFS Apparel and Footwear
IS-B Banking
IS-BEV Beverage
IS-CWM Catch Weight Management (Variable Weight Items such as Meats andCheeses)
IS-DFS Defense and Security
IS-H Hospital
IS-HER Higher Education
IS-HSS Hospitality Management
IS-HT High tech
IS-M Media
-
8/8/2019 Nokia Siemens Networks Manoj Giri
78/83
IS-MIN Mining
IS-MP Milling
IS-OIL Oil
IS-PS Public Sector
IS-R Retail
IS-REA Recycling Admin
IS-SP Service Provider
IS-T Telecommunications
IS-U UtilitiesHR- Human ResourcesComplete integrated system for supporting the planning and control of personnelactivities and HR module is sometimes equivalently referred as HCM (Human CapitalManagement).
PM- Plant MaintenanceEquipment servicing and rebuilding. These tasks affect the production plans.
MM- Materials ManagementSupports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder pointprocessing, etc.
QM -Quality ManagementA quality control and information system supporting quality planning, inspection,and control for manufacturing and procurement.
PP- Production PlanningUsed to plan and control the manufacturing activities of a company. This moduleincludes; bills