SAP is a kind of ERP system, which fulfills the information needs of a concern using a single database and many customized software modules, which help in taking related decisions. Thus the efficiency of operations is increased manifolds and helps maintain an upper hand with the competitors. There are many kinds of solutions or "modules" in SAP which satisfy the information needs of particular areas of a particular company. The presence of a special 'Cross-Application Layer' upon these modules enables them all to communicate with each other.
The very basic and important SAP module is its Project System that has categorized every activity within the company as part of any project. This module defines projects as the execution of actual orders and tracks them in the meanwhile. Usually a project consists of procurement of raw materials and finished goods along with many manufacturing processes. This modules deals with the beginning, working and after- completion analysis of a project.
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The module linked with manufacturing activities is the Production Planning module which deals with capacity planning, production scheduling and shop floor activities. It also keeps record of human resource allocation, machinery, tools, fixtures and energy needs.
The Plant Maintenance module takes care of preventive maintenance, breakdown maintenance, equipment down-time, lost hours of equipment and workforce and the time, material and labor taken up by the maintenance.
In order to cut down on inventory costs and make certain that the delivery of materials is as planned, the Materials Management Module is used. Using Bills of Materials for planned and unplanned expenditures, this module is responsible for the course the materials take from placement of orders to the delivery of finished goods, which includes quality control checks and stock taking also. It also keeps track of finished goods inventory.
All enquiries, request for proposals, costing, coordinating with the finished goods inventory, packing, shipping and delivery are dealt with using the Sales and Distribution Module.
The Financial Accounting Module is used to maintain financial record in the electronic books of accounts, maintains the General and sub ledgers, prepares Balance sheets, takes care of transactions related to taxes and interfaces with book closure. Its implementations are dependent on the SAP features specific for a particular country.
The Asset Management module follows the assets from the time of purchase, through the depreciation period and finally to where they are sold or taken care of. It keeps record of the prevailing value of an asset.
The module that overlaps all the functions is the Quality Management Module. It coordinates with all the functions through out the existence of the company. All the processes which induce quality in the company's work such as minimization of errors are handled by this module. Quality enforcement can be achieved through careful planning, taking actions on the basis of these plans and checking for errors in this process. Good quality control practices earn different certifications for a company which enhance its world wide image. This module also takes care of such practices.
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