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TYPE JOINT VENTURE

FOUNDED 2007

HEAD ESPOO, FINLAND

QUARTERS

KEY PEOPLE Simon Beresford-Wylie, CEO

Simonson CFO

Olli-Pekka Kallasvuo, Chairman

INDUSTRY TELECOMMUNICATIONS

PARENT NOKIA OYJ (50%)

SIEMENS AG (50%)

WEBSITE
nokiasiemensnetworks.com

 
    is a telecommunications solutions supplier which was created

as the result of a merger between     division (minus its Enterprise

business unit) and    Group.

Ê The new company was announced on r   !.

Ê Nokia Siemens Networks then began full operations  r"# $ 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.

Ê IT Telecommunications solutions supplier Nokia Siemens has acquired mobile

network management provider "%

Ê 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.

Ê NSN Munich

Ê The main Business Units of Nokia Siemens Networks are

1)Ê Radio Access 2) Broadband Access 3) Converged Core 4) IP Transport 5)

OBS Services

Ê The customer base of NSN includes 1400 Customers in 150 Countries  &#' (

)'* + ,&- #+ #* &+ -  .#+ /+ - /

'%
Ê About 1 billion people are connected through its switches. The major

manufacturing sites in China, Finland, Germany and India. It has around 60000

employees.

Ê Nokia pioneered the development of mobile communications and became the

world leader in this field and others:

Ê Laying ground for modern telecommunications

Ê Expertise in mobile communication

Ê More than 150 years in international business

Ê Nokia and the rise of mobile telecommunications

Ê Building on the legacy of two industry champions

Ê In India, we currently have the /, &     (#, Global HQ

of & .    ( , Global network operating centre & a

upcoming  *& (  - .

 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 foster  .#. "&& 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

 (0**& &0of 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 world¶s most progressive mobile network
technology at GSMA Global Mobile Awards 2009. In addition, we recently launched the

industry¶s 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 #.# & ,#0

model by creating integrated multi-technology, multi-vendor Global Network Solutions

Centers which drive the world¶s most efficient networks. We also enjoy leadership in

several other areas, including
* #& where we are the industry¶s fastest

growing vendor, & solutions where we power the conversations of more than one-

fourth of the world¶s population, 3G where we have more than 160 1 radio references,

and  '"#0  where we enjoy the largest market share. As a leader in

technology innovation, we are committed to driving the commercial uptake of c

starting in 2010, and offer an end-to-end solution which provides a future-proof, easy and

cost-efficient path to LTE.

  ') 

-'-'

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.

' &0*" 

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.

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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 ± it¶s about building value.

 
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We have built value by addressing efficiency, and we continue to do that. But we also

need to address the customer¶s need for a better experience, because it¶s experience that

builds relationships, and relationships that build value.

 

We believe that CSPs can ultimately enable and deliver a ³segment 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 don¶t change operators. And

operators who can devote themselves to enriching the customer¶s experience build

stronger, more lasting and profitable customer relationships.

The individual communications experience is the greatest value a communications

service provider can deliver to their customer, and so it¶s the greatest value we can

support communications service providers in delivering.

-'-'

The future of service is largely network-based. Internet applications hosted in the µcloud¶

(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 person¶s

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.
'*" 

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 company¶s new structure is now aligned are:

  # : 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.
  0: 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.

#.#&: 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 & , 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 ± 4(  # (Business Solutions), &   (Network

Systems) and -- -'-0 (Global Services) ± report directly to our CEO,

5, 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 isn¶t 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.

 
-- 6#0*7

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 it¶s everyone¶s

responsibility to deliver that value to our customers to ensure their loyalty.

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To becoming the industry¶s No.1 in customer loyalty and operational excellence.

8#0

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 ³live´ 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 year¶s competition.

Examples:

Ê 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

Ê Excelling in new product introductions, on time and with virtually zero software

bugs at the customer interface

Ê Creating true customer delight with a solutions approach to Services projects

leading to repeat business

0  ( 6#0  " #   * &-   * +   .#  '#

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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.

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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

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We aim to connect the world in a way that creates a net positive impact to the

environment. Read moreÊ

› 



 

  

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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

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In our corporate responsibility activities, we essentially seek to ³do 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:

 Ê 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.

Ê Minimize our environmental impact: reduce our footprint and help our customers

reduce theirs.

Ê 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:

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We will respect the rights laid down by the United Nations¶ Universal Declaration of

Human Rights, including:

Ê Freedom from discrimination on any grounds

Ê Freedom from arbitrary detention, execution or torture

 Ê Freedom of peaceful assembly and association

Ê Freedom of thought, conscience and religion

Ê Freedom of opinion and expression.

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We are committed to the highest standards of ethical conduct and full compliance with all

applicable national and international laws, including issues such as:

Ê Labor conditions

Ê Antitrust and promoting fair competition

Ê Prevention of bribery and corruption

Ê Good corporate governance

Ê Protection and recognition of copyright, company assets and other forms of

intellectual property

Ê Privacy and data protection.

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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.

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We are committed to provide a safe and healthy workplace where all employees are

treated with respect and provided with equal opportunities for development.
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We have strict zero tolerance on corruption. Employees must avoid any activity that can

lead to a conflict of interest, including:

Ê Gifts and hospitality

Ê Bribes and facilitation payments

Ê Political donations.

 

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.

"# 

How the Code is implemented in practice, how potential violations are reported and

investigated.

 
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NSN have one of the world¶s 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.

Ê understand customers challenges and deliver what it takes to solve

them

Ê increase their revenues and realize new business models

Ê seize new business opportunities quickly and with reduced risk

Ê reduce their OPEX and optimize network performance and user

experience

Ê keep their network at peak performance at all times

Ê 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.

 

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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

 
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Ê MOTOROLA-USA

Ê CIENA CORPORATION-USA

Ê ALCATEL-USA
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Deliver material/ equipments and value added services in order to fulfill customer

demands .

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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.

 
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1.Ê AIRTEL

2.Ê IDEA

3.Ê BSNL

4.Ê VODAFONE

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6.Ê SPICE

7.Ê UNINOR

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Every business moves on the frame lines of "& *#'. The efficiency of

services is '" '  entirely upon how well the process # are "# '.

Logistics too survives on customer satisfaction through * and &. * ( 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  to make it further

the . &" 0 providing with a strong focus on (& and ""#0 - 

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Let¶s look at the theoretical aspect of the process prevailing in NSN in a simpler way.
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. ◠›
  ››

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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 ³BOQ´ 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 PO¶s 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.
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 cr # before

delivery of material at customer¶s warehouse.

For dispatching the material by vendor, following documents are important:-

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Ê ( '



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.

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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: -

Ê Coordination with Central Team with regards to dispatches of material

from vender locations to DISHNETWIRELESS LIMITED warehouse.

Ê Coordination with DISHNET Commercial team with regards to their

requirements of material on day to day basis & sending updates to

central team

Ê Sharing shipment readiness v/s order issued date with relevant Project

/ Commercial team of DISHNET.

Ê 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. 

Ê Tracking shipments in transit & ensuring timely delivery of material to

warehouse.
Ê Escalating issues in case of delays to relevant Central Logistics

Coordinator.

Ê Collection of Original Lorry Receipt & NSN Invoice, duly

acknowledged by DISHNET warehouse.

Ê Updating Central team with documentation of material delivered at

warehouse & sending original documents by courier to NSN

Logistics team in Gurgaon.

Ê Receiving & checking all documents before submission of the same to

DISHNET Commercial team for payments.

Ê Submitting clean documents & taking acknowledgment of documents

delivered to DISHNET.

Ê Reconciling records of order delivered against issued with DISHNET..

Ê Follow up with Commercial team to prepare Goods Receipt Note

(GRN) & further, forwarding the same to DISHNET Projects /

Networks team for verification & approval.

Ê 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.

Ê Follow up with DISHNET finance team for timely payments.

Ê Reporting facts & figures to Commercial team with regards to invoices

submitted, processed at different levels, paid & pendency with

reason.
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IMPORT

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(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..

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]Ê Om process starts with receipt of customer purchase order

]Ê Customer PO comes to central MIS coordinator

]Ê Central MIS coordinator receives the PO and puts a stamp with the received date

mentioned on it.

]Ê He/She copies the annexure to an excel sheet.

]Ê Scanned copy of the PO is sent to the ALM for approval.

]Ê Performa invoices are sent to the customer (for BTS, and shops) by the logistics

coordinator (LC)

]Ê Annexure are sent to solution manager for config files.

]Ê Config files gives the bill of material,i.e the components to be ordered the item

code.

]Ê Specification to be ordered etc.

]Ê 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)

]Ê DMC purchases in the order to MLS(modular logistics system)

]Ê Plant takes the orders as a committed figure orders only after the orders gets

reflected in SAP.

]Ê DHL sends the MLS and SAP orders nos to be LC along with the RFS dates

(dates on which the shipment would be ready)

]Ê Customer PO can be either a paid PO or a FOC PO.

]Ê 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.

]Ê 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.

]Ê RFS conformation is provided by DMC there open order reports.

]Ê LC updates the MLS PO details and RFS detail ,on a DCS (delivery control

sheet)

]Ê 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.

]Ê one PO can have multiple SRS. all our subsequent shipment tracking would be

based on SR nos.

]Ê LC updates the SR details in MDC (must delivery list) and DCS.

]Ê On the date of RFS, DMC provides the draft invoices and packing MST.

]Ê Draft invoice and packing list is sent to the customer for approval.

]Ê 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.

 ]Ê To freight forwarder accepts the shipment from the hub and does a booking with

the airline.

]Ê Freight forwarder issues an airway bill to DMC.

]Ê DMC does the sales recognition based on the value of the invoice upon receipt

and AWB and updated in mds .

]Ê All handover and dispatch details are updated in dcs.

]Ê DCS is circulated to the customer on every Wednesday/Friday

]Ê Warehouse confirms the receipt of goods in the DCS by mentioning the date of

receipt against the respective SR.

 

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]Ê Updation of DCS (delivery control sheet)

]Ê Release of all SRS (Shipment request)

]Ê Follow up on draft invoices and parking list.

]Ê Checking of parking list with config files.

]Ê Release of SLI (shipper loading instruction) post DI approves (draft

invoice)

]Ê Updating all details in DCS.

]Ê Timely updation of MDL (must delivery list ) and sending the same to
MIS team.

]Ê RFS configuration (ready for shipment)

]Ê To ensure no P and H above limit days

]Ê Contract for all circle related issues.

 

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]Ê To provide ordering information to cop in co-ordination with.

]Ê To provide the circle priorities to cop for ordering (common ordering proof)
]Ê To carry out allocation in case of any allocation request from DMC/delivery
manager/PAM.
]Ê 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.

]Ê To review the SLI done and sales recognized.

]Ê Will be escalation point for all circle related issues.
]Ê COP stands (common ordering pool)

."# j '# (

]Ê Circles LC gets the date on missing short/damaged shipment from circles.

]Ê Circle LC would forward the details to COP for handling cube complaints.

]Ê COP would punch in all such cases into cube tool.

]Ê COP would track all cube cases till closure.

]Ê COP would maintain a cube complain tracker ,which would be a database on all
open and closed cube complain.

]Ê Cop would send weekly updates to LC/ALM on the status of the cubes.

 
;  c ,)c>

]Ê Ordering in MLS.

]Ê SR handling

]Ê Draft creation

]Ê Sent and hand over instruction to hup./

]Ê Follow up with lsp for airways

]Ê Dispatch of documents

]Ê Document presentation in bank

]Ê Mls reporting

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]Ê Orders to be handled in SAP

]Ê Orders to be confirms in SAP

]Ê Scheduling

]Ê Packing list printing

]Ê Stock transfer note/ invoice etc.

]Ê Interaction with pam.

]Ê Attending meetings

]Ê M.L.S reporting


' Time in logistics

'   - "' .   & '  ' '#0 * - * #

"'&.

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.

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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


#'

refers to the time span between customer ordering and customer receipt.  *& (

#'  refers to the time span from material availability at the first processing

operation to completion at the last operation

 *& (#'

refers to the time span from material availability at the first processing operation to

completion at the last operation

"#  (' '&

The following guidelines will help you to reduce lead times in your organization:

Ê  &  #'   '  "  (% 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.

Ê - ( - ( @  *  * & #      "'&

  % 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.

Ê 9  "#  " # -  &##    . * "  *

( *#3.#0% Reducing the number of job classifications and maintaining

multiskilled teams on each shift is critical to rapid response manufacturing.

 Ê c"  &##  '     -" * -   #

% Drive accountability for product cost, quality and delivery down to the

lowest appropriate level (ideally, the operators themselves).

Ê   ##0'&.&-@. & %With operations in close

proximity, transfer batches can be smaller and WIP inventories can be minimized.

Ê   #&# &-'# ( .   &##% 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.

' ""#0-  ( 

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.

'  *& (

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
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.

c3"#

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.

Ê If Company A's Supply Chain calls Company B they will be quoted a lead time of

2 days for the part.

Ê 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.

Ê 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.



 
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ITEMS LEAD TIME

MSC 6-8WEEKS

BSC 5-8WEEKS

BTS 4-5WEEKS

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1.Ê Our Customer¶s i.e. ³Bharti´ is satisfied with the services provided.

2.Ê So far NSN hasn¶t faced any problem of delays during distribution.

3.Ê A competitive strategy to meet customer demand.

4.Ê A process team of specialist working together in purchasing, production,

planning, forecasting, and inventory control, material handling, ware housing,
transportation.

5.Ê Vendor¶s satisfaction with NSN Policies e.g. KUEHNE NAGEL is highly
satisfied.

6.Ê NSN is able to maintain its market value through out.

 
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ccB

1.Ê ,  < ,#0 6= which has all data regarding site of delivery &
material to be dispatched is not provided/mailed at right time which lead to
inconvenience like efficiency decrease, quality of work and wastage of time too at
vendors end.

2.Ê j ,  B Sometimes NSN¶s employees demand for hand carrying of

material on the spot at warehouse. This too hampers the working management of
vendors.

3.Ê NSN¶s engineers are sometime #.# at the delivery site. This problem is
mainly faced in NCR delivery cases.

4.Ê Vendor finds difficulty in #& ( '' at time of receiving payments as

many places are mentioned for collection of amount.

7.Ê Various '#* ' invoice are mainly not mentioned on PO¶s of NSN



 : cB

Ê The Canadian & Global Economies run on Logistics i.e. these Canadian Firms

are estimated at $50 billion revenue per year.

Ê Around 4, 80,000 people work as house logisticians and there is another 4,

00,000 people who work directly in logistics ± related industries.

Ê The transportation and logistics industry is evolving to meet the 21st century

global economy

 
j cB

Ê Competitive pressures, deregulation & Global markets are rapidly

restructuring traditional logistics into more knowledge based.

Ê 'The market for traditional telephony, whether fixed or mobile, is becoming

increasingly saturated that it can no longer be a viable exclusive source of
growth. On the other hand, convergence of the telecom sector with
traditionally 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'

Ê No Industry is changing as fast as telecom. The winner will be those who

generate revenue and lock up customers through new offerings while
effectively managing cost and risk
ERP stands for
Enterprise Resource Planning

Introduction of ERP

ERP modules may be able to interface with an organization's own software with varying
degrees of effort, and, depending on the software, ERP modules may be alterable via the
vendor's proprietary tools as well as proprietary or standard programming languages.

Enterprise Resource Planning systems (ERP) integrate (or attempt to integrate) all data
and processes of an organization into a unified system. A typical ERP system will use
multiple components of computer software and hardware to achieve the integration. A
key ingredient of most ERP systems is the use of a unified database to store data for the
various system modules.

ÊERP is intended to facilitate information sharing, business planning, and decision making
on an enterprise-wide basis. ERP enjoyed a great deal of popularity among large
manufacturers in the mid-to late-1990s. Most early ERP systems consisted of mainframe
computers and software programs that integrated the various smaller systems used in
different parts of a company. Since the early ERP systems could cost up to $2 million and
take as long as four years to implement, the main market for the systems was Fortune
1000 companies.

ERP are often incorrectly called back office systems indicating that customers and the
general public are not directly involved. This is contrasted with front office systems like
customer 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 an

organization into unified system.

The key feature of an ERP system is it uses a single or unified database to store data for
the various system modules.

cnterprise esource
lanning, An integrated information system that serves all

departments within an enterprise. A process by which a company often a manufacturer
manages and integrates the important parts of its business.
 An ERP management information system integrates areas such as planning,
purchasing, inventory, sales, marketing, finance, human resources, and also connects the
organization 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 systems
disappears. It standardized and reduced the number of software specialties required
within larger organizations.

]Ê Integrated systems

]Ê Consistent interface

]Ê One database

]Ê Access to current data

]Ê Improved planning capabilities

]Ê Multinational capabilities

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]Ê Salesperson generates a quote for computer equipment overseas

]Ê System immediately creates product configuration, price, delivery date, shipping

method.

]Ê Customer accepts quote over Internet

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 (Often
called HRMS or HRIS) would typically contain information on the department, reporting
structure, and personal details of employees. The PR department would typically
calculate and store paycheck information. The Financials department would typically
store financial transactions for the organization. Each system would have to rely on a set
of common data to communicate with each other. For the HRIS to send salary
information to the PR system, an employee number would need to be assigned and
remain static between the two systems to accurately identify an employee. The Financials
system was not interested in the employee level data, but only the payouts made by the
PR 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.

]Ê Multiple systems, different interfaces, difficult to extract info about customers,

sales.

]Ê Hard to maintain, many languages, databases, inconsistencies

]Ê Can take weeks or months to obtain info about customers, or where systems

changes are needed.

System automatically

]Ê Schedules shipping

]Ê Reserves material

]Ê Orders parts from suppliers

]Ê Schedules assembly

]Ê Checks customer credit limit

]Ê Updates sales & production forecasts

]Ê Creates MRP & bill-of-material lists

]Ê Updates salesperson's payroll

lÊ Commission

lÊ Travel account

]Ê Calculates product cost & profitability

]Ê 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 system
could be used to forecast demand for a product, order the necessary raw materials,
establish production schedules, track inventory, allocate costs, and project key financial
measures. 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 of
them, the system also ties together these varied processes using data from across the
company. For instance, a typical ERP system manages functions and activities as
different as the bills of materials, order entry, purchasing, accounts payable, human
resources, and inventory control, to name just a few of the 60 modules available. As
needed, ERP is also able to share the data from these processes with other corporate
software systems." Another important benefit of ERP systems was that they allowed
companies to replace a tangle of complex computer applications with a single, integrated
system.

Drawbacks OF ERP

Despite these potential benefits, however, traditional ERP systems also had a number of
drawbacks. For instance, the early systems tended to be large, complicated, and
expensive. Implementation required an enormous time commitment from a company's
information technology department or outside professionals. In addition, because ERP
systems affected most major departments in a company, they tended to create changes in
many business processes. Putting ERP in place thus required new procedures, employee
training, and both managerial and technical support. As a result, many companies found
the changeover to ERP a slow and painful process. Once the implementation phase was
complete, some businesses had trouble quantifying the benefits they gained from ERP.
Advantages

In the absence of an ERP system, a large manufacturer may find itself with many
software applications that do not talk to each other and do not effectively interface. Tasks
that need to interface with one another may involve:

]Ê Design engineering (how to best make the product)

]Ê Order tracking from acceptance through fulfillment
]Ê The revenue cycle from invoice through cash receipt
]Ê Managing interdependencies of complex Bill of Materials
]Ê Tracking the 3-way match between Purchase orders (what was ordered), Inventory
receipts (what arrived), and Costing (what the vendor invoiced)
]Ê 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 be
made. Effective dates can be used to control when the switch over will occur from an old
version to the next one, both the date that some ingredients go into effect, and date that
some are discontinued. Part of the change can include labeling to identify version
numbers.

Computer security is included within an ERP to protect against both outsider crime, such
as industrial espionage, and insider crime, such as embezzlement. A data tampering
scenario might involve a terrorist altering a Bill of Materials so as to put poison in food
products, or other sabotage. ERP security helps to prevent abuse as well.

Disadvantages

Many problems organizations have with ERP systems are due to inadequate investment
in ongoing training for involved personnel, including those implementing and testing
changes, as well as a lack of corporate policy protecting the integrity of the data in the
ERP systems and how it is used.

Limitations of ERP include:

Success depends on the skill and experience of the workforce, including training about
how to make the system work correctly. Many companies cut costs by cutting training
budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP
system is often operated by personnel with inadequate education in ERP in general, such
as APICS foundations, and in the particular ERP vendor package being used.

]Ê Personnel turnover; companies can employ new managers lacking education in the
company's ERP system, proposing changes in business practices that are out of
synchronization with the best utilization of the company's selected ERP.
]Ê Customization of the ERP software is limited. Some customization may involve
changing of the ERP software structure which is usually not allowed.
]Ê Re-engineering of business processes to fit the "industry standard" prescribed by the
ERP system may lead to a loss of competitive advantage.
]Ê ERP systems can be very expensive to install often ranging from 30,000 to
500,000,000 for multinational companies.
]Ê 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.
]Ê Technical support personnel often give replies to callers that are inappropriate for the
caller's corporate structure. Computer security concerns arise, for example when
telling a non-programmer how to change a database on the fly, at a company that
requires an audit trail of changes so as to meet some regulatory standards.
]Ê ERP are often seen as too rigid and too difficult to adapt to the specific workflow and
business process of some companies²this is cited as one of the main causes of their
failure.
]Ê Systems can be difficult to use.

]Ê Systems are too restrictive and do not allow much flexibility in implementation and
usage.
]Ê The system can suffer from the "weakest link" problem²inefficiency in one
department or at one of the partners may affect other participants.
]Ê Many of the integrated links need high accuracy in other applications to work
effectively. A company can achieve minimum standards, and then over time "dirty
data" will reduce the reliability of some applications.
]Ê 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).
]Ê The blurring of company boundaries can cause problems in accountability, lines of
responsibility, and employee morale.
]Ê Resistance in sharing sensitive internal information between departments can reduce
the effectiveness of the software.
]Ê There are frequent compatibility problems with the various legacy systems of the
partners.
]Ê The system may be over-engineered relative to the actual needs of the customer.

1.2.4 CEO Survey - why ERP?

]Ê 67% Improve info accuracy, availability

]Ê 61% Improve management decision making

]Ê 51% Reduce cost/improve efficiency

]Ê 38% Upgrade technology

]Ê 31% Resolve tactical issue (e.g. Y2k)

]Ê 24% Grow revenue

]Ê 15% Haven¶t done it yet

]Ê 4% Other

ERP Requires
 ]Ê Strong executive support to implement

]Ê Process approach rather than ³silos´

]Ê Change in business procedures (BPR)

]Ê Change in organizational structure, culture, strategy

]Ê Technology change

Erp Solutions for Small Businesses

As sales of ERP systems to large manufacturing companies began to slow, some vendors
changed their focus to smaller companies. According to a survey by AMR research
reported in Modern Materials Handling, the overall market for ERP systems grew 21
percent in 2007, despite the fact that sales to companies with greater than $1 billion in
revenues declined 14 percent during the same period. "ERP applications are no longer
just the stuff of huge corporations. "While billion-dollar manufacturing companies are
now completing their ERP implementations, mid-size customers²witness to the
improved business processes of manufacturing market leaders²are beginning to refine
their own operations«. Invariably the most substantial reason for companies to
implement ERP is that without it, staying competitive is a practical impossibility. The
business world is moving ever closer toward a completely collaborative model, and that
means companies must increasingly share with their suppliers, distributors, and
customers the in-house information that they once so vigorously protected."

Of course, small and medium-sized companies²as well as those involved in service

rather than manufacturing industries²have different resources, infrastructure, and needs
than 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, more
manageable, required less implementation time, and entailed lower startup costs. Many of
these new systems were more modular, which allowed installation to proceed in smaller
increments with less support from information technology professionals. Other small
businesses elected to outsource their ERP needs to vendors. For a fixed amount of
money, the vendor would supply the technology and the support staff needed to
implement and maintain it. This option often proved easier and cheaper than buying and
implementing a whole system, particularly when the software and technology seemed
likely to become outdated within a few years.
jc,8: c B, ;+c  


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 five
former IBM engineers.

SAP released SAP R/2 version initially. The architecture of R/2 system is Mainframe
architecture.

Later SAP R/3 is released which is different from R/2 architecture. R stands for Real
time. 3 stands for 3 tier architecture
.
There are over 100,800 installations at more than 35,000 companies. SAP products
are 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-server
software market. The company's principal business activities are the development and
marketing 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 customer
relationship management. The largest software group in Europe, its business software
 applications are used by over 35,000 companies around the world in such industries
as chemicals, high tech, telecommunications, electronics, utilities, oil and gas,
banking, insurance, healthcare, pharmaceuticals, consumer products, automotive, and
retail. Through its 80 international subsidiaries, led by its U.S. subsidiary SAP
America, SAP markets its software and consulting, training, and support services in
more than 120 countries.

KEY PEOPLE

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History of SAP R/3

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

]Ê r $B Company is founded in Walldorf, Germany by five German

]Ê r $!B SAP declares itself a GmbH corporation (a limited

]Ê r $ B SAP R/2 is launched, a real-time mainframe-based

]Ê r DDB Company establishes SAP America in Philadelphia.

 ]Ê r B SAP R/3 is launched servicing a client-server

]Ê r CB SAP forms an alliance with Microsoft to integrate SAP

]Ê r !B SAP industry-specific applications are introduced.

]Ê r B Company launches an integrated web-enabled platform,

]Ê  rB 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. It
ranks after Microsoft, Google, and IBM in terms of market capitalization. SAP is also the
largest business application and Enterprise Resource Planning (ERP) solution and
software provider in terms of revenue[3].

]Ê SAP IS USED IN MORE THAN 35,000 COMPANIES

]Ê SAP IS USED IN OVER 120 COUNTRIES.

]Ê SAP HAS MORE THAN 80 INTERNATIONAL SUSIDIARIES ,

WHICH IS LED BY IT,S US SUBSIDIARY - SAP AMERICA.

]Ê SAP HAVE OVER 100,800 INSTALLATION,S

]Ê SAP IS USED BY MORE THAN 12 MILLION PEOPLE.

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.

]Ê Market leading ERP product

]Ê Extensive functionality

]Ê Used by mid to large companies

]Ê International features

]Ê Can be run over internet/intranet

]Ê 10 million users, 38,000 installations

]Ê 13,000 companies, > 120 countries

]Ê SAP AG $15 billion, 5,000 developers, 35-40% on research

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

ÈProvides info about all aspects of the business -- worldwide

ÈReduces inventory, waste
ÈEasy communication with customers, suppliers
# *

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 SAP SCREEN ELEMENTS



¢
 : 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

   
 The menus shown here depend on which application you are working in.
These menus contain cascading menu options.

›

: 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.


 
 The title bar displays your current position and activity in the system.

¢    Checkboxes allow you to select several options simultaneously within a
group.

   Radio buttons allow you to select one option only.

›  
 The status bar displays information on the current system status, for
example, warning and error messages.

: A tab provides a clearer overview of several information screens.

V 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 presentation

layer, 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 the
system, 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 fourth
generation language (4GL), geared towards the creation of simple, yet powerful
programs. R/3 also offers a complete development environment where developers can
either modify existing SAP code to modify existing functionality or develop their own
functions, whether reports or complete transactional systems within the SAP framework.

ABAP's main interaction with the database system is via Open SQL statements. These
statements 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 develop
applications with object-oriented programming.
The most difficult part of SAP R/3 is its implementation. Simply because SAP R/3 is
never used the same way in any two places. For instance, Atlas Copco can have a
different implementation of SAP R/3 from Procter & Gamble and so forth. Two primary
issues are the root of the complexity and of the differences:

Ê Customization configuration - Within R/3, there are tens of thousands of database

tables that may be used to control how the application behaves. For instance, each
company will have its own accounting "Chart of Accounts" which reflects how its
transactions flow together to represent its activity. That will be specific to a given
company. In general, the behavior (and appearance) of virtually every screen and
transaction is controlled by configuration tables. This gives the implementor great
power to make the application behave differently for different environments. With
that power comes considerable complexity.
Ê Extensions, Bolt-Ons - In any company, there will be a need to develop interface
programs to communicate with other corporate information systems. This
generally involves developing ABAP/4 code, and considerable "systems
integration" effort to either determine what data is to be drawn out of R/3 or to
interface into R/3 to load data into the system.

Due to the complexity of implementation, these companies recruit highly skilled SAP
consultants to do the job. The implementation must consider the company's needs and
resources. Some companies implement only a few modules of SAP while others may
want numerous modules.

SAP has several layers. The  0 (BC) includes the ABAP programming
language, and is the heart (i.e. the base) of operations and should not be visible to higher
level or managerial users. Other customizing and implementation tools exist also. The
heart of the system (from a manager's viewpoint) are the application modules. These
modules may not all be implemented in a typical company but they are all related and are
listed below:

SAP R/3 CORE FUNCTIONALITY

SAP R/3

]Ê (&

]Ê ;  &#

]Ê j  &

R/3 Financials

]Ê Financial Accounting

]Ê General ledger, accounts receivable, payable.

]Ê Controlling.

]Ê Costing, profitability, planning.

]Ê Treasury

]Ê Cash, funds management.

]Ê Capital Investment

R/3 Logistics

]Ê Sales and Distribution

]Ê Production Planning

]Ê Materials Management

]Ê Plant Maintenance

]Ê Quality Management

]Ê Procurement

R/3 Human Resources

]Ê Administration

]Ê Payroll accounting

]Ê Shift management

]Ê Employee attendance

]Ê Trip costs

]Ê Training

]Ê Recruitment

]Ê Personal management

SAP R/3 CLIENT SERVER TECHNOLOGY

]Ê 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.
 ]Ê 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.
]Ê 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.

]Ê 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.

]Ê 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 user¶s field entries. The check on R/3 application level
guarantees data consistency before the data is transferred to the database.

]Ê All data and programs in the SAP R/3 System are stored in the database.

SAP ASAP METHODOLOGY

 

]Ê Tools include ASAP specific tools to support project management, questionnaires

for the business process consultants and numerous technical guidebooks and

checklists.

]Ê 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

³step for step´ method for R/3 System implementation.

]Ê 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
 R/3 Service and Training, which work in conjunction to support the rapid and

efficient implementation of the R/3 System.

]Ê 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.

]Ê 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.


 

   !
 

 9 The primary focus of Phase 1 is getting the project

started, identifying team members and developing a high-level plan.

 "  " 
9The 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.
     # 9 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.

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9The 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.

  &     › 
 9 Transition from a project oriented, pre-productive

environment to a successful and live productive operation.

MY SAP. COM
 

]Ê 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.

]Ê 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 is
mySAP 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 that
combined enterprise resource planning (similar to that of R/3) with a series of specialty
business software applications such as supply chain management and customer
relationship management. Viewed through a role-based, customized web browser
window, mySAP.com applications were developer-friendly and capable of integrating
with other vendors' databases, applications, operating systems, and hardware. The new
platform also extended to electronic business (e-business) marketplaces and corporate
web portals, which further linked partner companies together and enabled them to
collaborate and conduct transactions with one another whether they were using SAP or
non-SAP applications.

The concept of mySAP.com at first proved unclear to customers, even after a $50 million
advertising campaign. When crucial U.S. revenues dropped in the first quarter of 2000,
management responded with drastic measures. A reorganization of the company's
development staff working on product lines was the first step in transforming an
internally focused corporate culture into one more customer-centric and better suited for
competition in U.S. markets, where business-to-business Internet sales were predicted to
skyrocket to $2.7 trillion by 2004. To ensure that products were developed with
maximum 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 one
such alliance, SAP joined forces with Commerce One to develop e-marketplaces or
online trading exchanges where goods and services could be bought or sold. Following
the formation of SAP Portals in 2001, SAP teamed up with Yahoo! to develop
customized enterprise portals; SAP further bolstered its strength in the enterprise portal
market through its acquisition of Top Tier Software.

Through its new mySAP.com platform, particularly its specialty applications in supply
chain and customer relationship management, SAP appeared to have successfully
positioned itself to capitalize on the flourishing e-business market. By nimbly responding
to competitive challenges and technological advances, and learning to better market its
products, SAP would no doubt remain a formidable presence in the global business
software market.
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mySAP.com

]Ê R/3 ERP

]Ê Supply Chain Management (SCM)

]Ê Business to Business Procurement (BBP)

]Ê Strategic Enterprise Management (SEM)

]Ê Customer Relationship Management (CRM)

]Ê Business Information ( Data ) warehouse ( BW )



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/3
gives a clue to its functionality: the "R" stands for realtime data processing and the
number 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), Business
Information Warehouse (BW), Customer Relationship Management (CRM), Supply
Chain Management (SCM), Supplier Relationship Management (SRM), Human Resource
Management Systems (HRMS), Product Lifecycle Management (PLM), Exchange
Infrastructure (XI), Enterprise Portal (EP) and SAP Knowledge Warehouse (KW).

The APO name has been retired and rolled into SCM. The BW name (Business
Warehouse) 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 which
replaces SAP Business Connector for Integration/middleware capabilities[4]. While its
original products are typically used by Fortune 500 companies, SAP is now also actively
targeting small and medium sized enterprises (SME) with its SAP Business One and SAP
All-in-One. SAP R/3 is arranged into distinct functional modules, covering the typical
functions 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 the
additional 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 where
applicable. For instance, an invoice from the Billing transaction of Sales & Distribution
will pass through to accounting, where it will appear in accounts receivable and cost of
goods sold.

FI -Financial Accounting

Designed for automated management and external reporting of general ledger, accounts
receivable, accounts payable and other sub-ledger accounts with a user defined chart of
accounts. As entries are made relating to sales production and payments journal entries
are automatically posted. This connection means that the "books" are designed to reflect
the real situation.
The FI module has 8 sub modules:

]Ê FI-GL General Ledger Accounting

 ]Ê FI-LC Consolidation

]Ê FI-AP Accounts Payable

]Ê FI-AR Accounts Receivable

]Ê FI-BL Bank Accounting

]Ê FI-AA Asset Accounting

]Ê FI-SL Special Purpose Ledger

]Ê FI-FM Funds Management

CO- Controlling

Represents the company's flow of cost and revenue. It is a management instrument for
organizational decisions. It too is automatically updated as events occur.
The CO module has following sub modules:

]Ê CO-OM Overhead Costing (Cost Centers, Activity Based Costing, Internal

Order Costing)

]Ê CO-PA Profitability Analysis

AM -Asset Management

]Ê Designed to manage and supervise individual aspects of fixed assets including

purchase and sale of assets, depreciation and investment management.

]Ê PS Project System
Designed to support the planning, control and monitoring of long-term, highly
complex projects with defined goals.

]Ê FS Insurance
An integral part of mySAP ERP, SAP for Insurance enables insurance companies to
handle customer and market requirements and simultaneously control profitability
and economic viability.

In Release 6.00, SAP for Insurance includes the following components:

]Ê FS-CD Collections and disbursements

]Ê FS-CM Claims management

 ]Ê FS-CS Commissions management

]Ê FS-PM Policy management

]Ê FS-RI Reinsurance management

IS -Industry Solutions

Combines the SAP application modules and additional industry-specific

functionality. 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:

]Ê IS-A Automotive

]Ê IS-ADEC Aerospace and Defense

]Ê IS ± AFS Apparel and Footwear

]Ê IS-B Banking

]Ê IS-BEV Beverage

]Ê IS-CWM Catch Weight Management (Variable Weight Items such as Meats and
Cheeses)

]Ê IS-DFS Defense and Security

]Ê IS-H Hospital

]Ê IS-HER Higher Education

]Ê IS-HSS Hospitality Management

]Ê IS-HT High tech

]Ê IS-M Media
 ]Ê IS-MIN Mining

]Ê IS-MP Milling

]Ê IS-OIL Oil

]Ê IS-PS Public Sector

]Ê IS-R Retail

]Ê IS-REA Recycling Admin

]Ê IS-SP Service Provider

]Ê IS-T Telecommunications

]Ê IS-U Utilities
HR- Human Resources
Complete integrated system for supporting the planning and control of personnel
activities and HR module is sometimes equivalently referred as HCM (Human Capital
Management).

PM- Plant Maintenance

Equipment servicing and rebuilding. These tasks affect the production plans.

MM- Materials Management

Supports the procurement and inventory functions occurring in day-to-day
business operations such as purchasing, inventory management, reorder point
processing, etc.

QM -Quality Management
A quality control and information system supporting quality planning, inspection,
and control for manufacturing and procurement.

PP- Production Planning

Used to plan and control the manufacturing activities of a company. This module
includes; bills of material, routings, work centers, sales and operations planning,
master production scheduling, material requirements planning, shop floor control,
production orders, product costing, etc.

SD -Sales and Distribution

Helps to optimize all the tasks and activities carried out in sales, delivery and
billing. Key elements are: pre-sales support, inquiry processing, quotation
processing, sales order processing, delivery processing, billing and sales
information system.
SCM - Supply Chain Management

SEM - Strategic Enterprise Management

WM -Warehouse Management
Subdivides the "Storage Location", which is used in the MM Module to define
inventory values by location, into "Storage Types" and then into "Storage Bins".
Control of stock to a physical level down to a warehouse bin. Placement and
removal rules can be configured, stock counts can be done.
HUM- Handling Unit Management
Used as a unique ID for each pallet of stock held in the warehouse.

AF&R -Advanced Forecasting & Replenishment

Mostly referred to as Forecasting & Replenishment

EH&S -Environmental Health & Safety

Designed for the management of environmental regulatory

information, particularly product safety data as required for Material Safety Data Sheets.
EH&S has sub-modules of Product Safety, Dangerous Goods, Waste, Industrial Hygiene,
and Occupational Health

FEW OF SAP IMPLEMENTED COMPANIES

Adidas ‡ Allianz ‡ Altana ‡ BASF ‡ Bayer ‡ BMW ‡ Commerzbank ‡ Continental ‡

DaimlerChrysler ‡ Deutsche Bank ‡ Deutsche Börse
Deutsche Post ‡ Deutsche Postbank ‡ Deutsche Telekom ‡ E.ON ‡ Fresenius Medical
Care ‡ Henkel ‡ Hypo Real Estate ‡ Infineon Technologies
Linde (The Linde Group) ‡ Lufthansa ‡ MAN ‡ METRO ‡ Munich Re ‡ RWE ‡ 
‡
Siemens ‡ ThyssenKrupp ‡ TUI ‡ Volkswagen

5&" (&" 

j'?*: Apple - EMC - Fujitsu - Hitachi - HP - IBM - Microsoft - NetApp -

Siemens - Sun - Thomson

*: Adobe - CA - McAfee - Novell - Oracle - Red Hat - 
- Symantec

,9&?.&: Amazon - AOL - eBay - Google - Yahoo!

j': Acer - Alcatel-Lucent - AMD - ASUS - Broadcom - Cisco - Cray - Dell -

Freescale - Fujitsu Siemens - Gateway - Huawei - Hynix - Infineon - Intel - Juniper -
Lenovo - LG - Matsushita - Micron - Motorola - NCR - NEC - Nokia - Nortel - NVIDIA
- NXP - Philips - Qimonda - Qualcomm - Quanta - Renesas - Samsung - Seagate - Sony -
STMicroelectronics - TI - Toshiba - TSMC - VIA - Western Digital - ZTE





SAP INDIA

SAP, the world's leading provider of business software solutions, started its operations in
India in 1996. Headquartered in Bangalore, SAP India also has offices in Mumbai and
New Delhi, and various marketing associates in Sri Lanka and Bangladesh.

Its Asia Pacific headquarters is in Singapore, with APA offices in Australia, China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Taiwan and
Thailand.

With a staff strength of 450 supporting the Indian sub-continent, today SAP India is one
of the fastest growing SAP subsidiaries with more than 650 customers across the region
with strong footprints in India, Sri Lanka and Bangladesh. Powered by the SAP
NetWeaverŒ platform to drive innovation and enable business change, mySAPŒ
Business Suite solutions are helping enterprises around the world improve customer
relationships, enhance partner collaboration and create efficiencies across their supply
chains and business operations. SAP industry solutions support the unique business
processes of more than 25 industry segments, including high tech, retail, public sector
and financial services.

The company is listed on several exchanges, including the Frankfurt stock exchange and
NYSE under the symbol ³SAP.´


 '**&#&'B
 ]Ê BANGALORE
]Ê DELHI
]Ê MUMBAI
]Ê KOLKATA

NET WEAVER

SAP NetWeaver is SAP's integrated technology platform and is the technical foundation
for all SAP applications since the SAP Business Suite. SAP NetWeaver is marketed as a
service-oriented application and integration platform. SAP NetWeaver provides the
development and runtime environment for SAP applications and can be used for custom
development and integration with other applications and systems. SAP NetWeaver is
built using open standards and industry de facto standards and can be extended with, and
interoperate with technologies such as Microsoft .NET, Sun Java EE, and IBM
WebSphere.

NetWeaver's release is considered as a strategic move by SAP for driving enterprises to

run their business on a single, integrated platform that includes both applications and
technology. Industry analysts refer to this type of integrated platform offering as an
"applistructure" (applications + infrastructure). It is widely held that this approach is
driven by industry's need to lower IT costs through an enterprise architecture that is at
once (1) more flexible; (2) better integrated with applications; (3) built on open standards
to ensure future interoperability and broad integration; and, (3) provided by a vendor that
is financially viable for the long term.

SAP is fostering relationships with system integrators and independent software vendors,
many of the latter becoming "Powered by SAP Netweaver". The strong momentum
illustrates the power SAP holds over the market for packaged software solutions.

SAP Netweaver is part of SAP's plan to transition to a more open, service-oriented

architecture and to deliver the technical foundation of its applications on a single,
integrated platform and common release cycle.

" 

NetWeaver is essentially the integrated stack of SAP technology products. The SAP Web
Application Server (sometimes referred to as WebAS) is the runtime environment for the
SAP applications -- all of the mySAP Business Suite solutions (SRM, CRM, SCM, PLM,
ERP) run on SAP WebAS.
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