SAP is a leading enterprise resource planning (ERP) system that is widely used in the manufacturing industry. The software is designed to help manufacturers streamline their business processes and improve efficiency. Manufacturing companies can significantly reduce operational costs, accelerate time to market, and enhance production efficiency with SAP for manufacturing. Essentially, SAP can provide automation and flexibility to business operations, allowing manufacturers to maximize productivity while utilizing available resources more effectively. Manufacturing-specific modules are available in SAP Business One an integrated ERP system.
Benefits for Manufacturing Industry
DHL, 3M, Coca-Cola, Ford Motors, Burger King, Citrix, Airbus, eBay, IBM, and many others are among the manufacturers known to use SAP.
It is not uncommon for manufacturers who use SAP to report significant improvements in efficiency and the ability to make better decisions. The integration of the latest technology like IoT, AI/ML, and other Industry 4.0 technologies makes the manufacturing process more efficient and smart, also providing valuable insights in the form of data. The success of implementing SAP in the manufacturing industry depends on your scope and specific requirements, it may not be the best fit for all manufacturing companies, hence requiring proper evaluation before implementation.
Typical requirements from the SAP system for a manufacturing company include:
SAP allows companies to make better decisions by providing a comprehensive view of all business aspects, including financials, production, and sales. Also, it allows manufacturers to automate many routine tasks, allowing them to devote more time to more strategic activities. One of the most commonly used SAP modules in the manufacturing industry is SAP Manufacturing, also known as SAP ME (Manufacturing Execution). The SAP ME module is designed to help manufacturers manage the entire production process, from planning and scheduling to execution and monitoring. SAP ME includes various tools to help manufacturers optimize production, improve quality control, and reduce costs.
In your manufacturing environment, Innovapte will configure SAP to manage and integrate all the different processes involved in your production, from materials management and logistics to quality control and production planning. The software can also be integrated with other systems, such as those used for supply chain management and customer relationship management (CRM). After the initial discovery session, which we provide free of charge, we may suggest several other SAP modules to create a bespoke designed environment for your organisation to thrive.
This module is used for managing all aspects of the materials used in production including procurement, inventory management, and logistics. SAP MM is designed to help manufacturers improve efficiency, reduce costs, and ensure the timely delivery of materials to the production line.
The key functionalities of SAP MM include:
- Procurement: This includes everything from creating purchase requisitions, purchase orders, and contracts, to managing vendors and suppliers.
- Inventory Management: This includes managing stock levels, tracking inventory movements, and monitoring stock availability.
- Logistics: This includes managing the movement of goods, including shipping and receiving, as well as handling and storage.
- Valuation and Account Determination: This includes tracking and valuing materials as per company accounting standards, managing special stocks, and accounting for price differences.
SAP MM includes tools for reporting and analysis, which can help manufacturers identify trends and make informed decisions about inventory levels, demand patterns, and supplier performance.
This module is used for planning and scheduling production activities, including capacity planning and material requirement planning. SAP PP includes capacity planning, material requirement planning, and production execution. The module is designed to help manufacturers improve efficiency, reduce costs, and ensure the timely delivery of finished goods.
The key functionalities of SAP MM include:
- Capacity Planning: This includes managing resources such as machines, personnel, and tools to ensure that production is running smoothly and efficiently.
- Material Requirement Planning: This includes managing the availability of materials and ensuring that the right materials are in the right place at the right time to meet production needs.
- Production Execution: This includes tracking the progress of production, monitoring quality, and handling any issues that arise during production.
- Sales and Operation Planning: This includes forecasting the demand for finished goods and aligning the production plans accordingly.
SAP PP includes tools for reporting and analysis, which can help manufacturers identify trends and make informed decisions about production schedules, material requirements, and capacity utilization.
SAP QM is a module within the SAP ERP system that is used for managing quality control in the manufacturing process. This includes inspections, testing, and certifications. This module is designed to help manufacturers improve efficiency, reduce costs, and ensure that products meet customer expectations and industry standards. SAP QM is used by organisations as a dashboard to track the manufacturing process throughout the entire process.
The key functionalities of SAP QM include:
- Inspections: This includes managing the inspection of materials and finished goods, recording inspection results and creating inspection lots.
- Testing: This includes managing the testing of materials and finished goods, recording test results and creating test lots.
- Certifications: This includes managing the certification process, recording certificates and creating certificate lots.
- Quality Notifications: This includes managing the process of raising and resolving quality notifications related to any defects or non-conformance during the production process
- Statistical Process Control: This includes monitoring key production metrics and processes using statistical analysis, to identify and prevent quality problems.
SAP QM can be integrated with other SAP modules, such as Material Management, Production Planning, and Plant Maintenance, to provide a holistic view of the production process. This allows manufacturers to optimize the entire production process and improve coordination between different departments.
SAP PM is used for maintaining equipment and machinery in a manufacturing facility. This includes scheduling, executing, and monitoring maintenance activities, to ensure that production is running smoothly and efficiently. The module is designed to help manufacturers improve efficiency, reduce costs, and ensure that equipment and machinery is in good working condition.
The key functionalities of SAP MM include:
- Maintenance Planning: This includes creating and managing maintenance plans, scheduling maintenance activities, and allocating resources for maintenance tasks
- Maintenance Execution: This includes monitoring and tracking maintenance activities, recording maintenance results, and managing maintenance history of equipment
- Maintenance Optimization: This includes identifying and monitoring key performance indicators (KPI) of equipment and machinery, and analyzing data to optimize maintenance activities.
- Maintenance Notification: This includes managing the process of raising and resolving maintenance notifications related to any defects or issues with the equipment and machinery during the production process.
- Equipment Management: This includes managing the master data of equipment and machinery, such as technical specifications, location, and warranty information.
SAP PM includes tools for reporting and analysis, which can help manufacturers identify trends and make informed decisions about maintenance performance, maintenance schedule, and maintenance costs.
SAP PM is used for maintaining equipment and machinery in a manufacturing facility. This includes scheduling, executing, and monitoring maintenance activities, to ensure that production is running smoothly and efficiently. The module is designed to help manufacturers improve efficiency, reduce costs, and ensure that equipment and machinery is in good working condition.
The key functionalities of SAP MM include:
- Maintenance Planning: This includes creating and managing maintenance plans, scheduling maintenance activities, and allocating resources for maintenance tasks
- Maintenance Execution: This includes monitoring and tracking maintenance activities, recording maintenance results, and managing maintenance history of equipment
- Maintenance Optimization: This includes identifying and monitoring key performance indicators (KPI) of equipment and machinery, and analyzing data to optimize maintenance activities.
- Maintenance Notification: This includes managing the process of raising and resolving maintenance notifications related to any defects or issues with the equipment and machinery during the production process.
- Equipment Management: This includes managing the master data of equipment and machinery, such as technical specifications, location, and warranty information.
SAP PM includes tools for reporting and analysis, which can help manufacturers identify trends and make informed decisions about maintenance performance, maintenance schedule, and maintenance costs.
SAP WM is used for managing the warehouse in a manufacturing facility and includes inventory and stock management, putaway and picking strategies, as well as handling and storage of goods. The module is designed to help manufacturers improve efficiency, reduce costs, and ensure that inventory is properly managed and stored.
The key functionalities of SAP WM include:
- Inventory Management: This includes managing stock levels, tracking inventory movements, and monitoring stock availability.
- Putaway and Picking: This includes managing the storage and retrieval of inventory, and the optimization of warehouse space.
- Handling Unit Management: This includes managing the movement and tracking of items, such as pallets and boxes.
- Bin Management: This includes managing and optimizing the storage space within the warehouse, including the creation and management of storage bins.
- Yard Management: This includes managing the organization of the truck yard, and the loading and unloading of goods
SAP WM includes tools for reporting and analysis, which can help manufacturers identify trends and make informed decisions about inventory levels, demand patterns, and warehouse performance.
Our Expertise
Innovapte’s team of SAP experts helps companies implement, integrate, train, and support ERP to ensure that they are getting the most value out of their investment. There are several key areas that are impacted when SAP is implemented or integrated in a manufacturing business:
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Our Process
*Please note that the information provided below is for illustrative purposes only and may not fully represent the scope or nature of the project. Each project is unique and may have variations in process, scope, and deliverables. The information provided is subject to change and should be considered as an approximation only.
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