sap sd - implementation of an erp system - analysis …

Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 6/2019

„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007

SAP SD - IMPLEMENTATION OF AN ERP SYSTEM - ANALYSIS AND

RECOMMENDATIONS IN THE IT UNIT TESTING PHASE. A CASE STUDY (II).

BANȚA VIOREL-COSTIN

THE BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

e-mail: [email protected]

Abstract

The series of articles that refers to everything that means the stages of implementation of an ERP, from the

pre-decision phase to the implementation of a computer system to the go-live phase. In this article, the author wants to

highlight the phase of IT tests unit (IT_BUT) - in this case, for the SAP system, for the module sales and distributions –

SAP SD. The company in which this research was done activates in the area of production of paints, stains and

specialty coatings for commercial maintenance and residential markets. Unit Testing IT is a very important stage,

which is why the author wants to provide a complete overview of these tests performed by the functional consultants

under the supervision of an SAP Integration Manager (SAP IM). The plan with the stages that have been completed by

the functional consultants have been detailed which SAP IM since the beginning of the phase, at the same time the

gates have been opened for any new step added in the plan, a step that can highlight an event forgotten to be tested.

These steps need to be performed, to see if the solution developed and customized, has the same result with what was

planned and discussed. As in the case of SAP FICO, as well as in the case of sales and distribution (SD), excel files

were created with the help of which was collected helpful information referring to the fact that the test was passed

successfully or not. Keywords: SAP, Sales and Distribution, Project, IT Unit Tests, Roll-out, ERP - Enterprise Resource Planning, SAP. Classification JEL: C61, C81, M15, M41

1. Introduction and study’s context

The articles that are part of this activity analysis suite on the project (SAP implementation in a large production and sales company and distribution of materials needed for the construction area), a project for implementing an SAP solution, in Romania, are based on data collected by the author, over the years. All that will be seen in this article, is a real study versus comparison with other projects, to which the author was a part. If in the last article we referred to the SAP FICO module, in this article, the author wishes to highlight, the activity carried out by the consultants allocated on the SP SD (Sales and Distribution) module [1]. Much has been written about the implementation of information systems, from the analysis, detailing, necessary steps, to the analysis of the results of these activities. The author wishes to split the thread, each stage of such an implementation, to find those connections with other projects, to see where there was a minus and how that was mitigated, to come up with proposals to improve the flow of thing. The specialized literature comes with a series of corrections and recommendations, necessary, for those who want to study the perception of a high-level computer solution adoption, necessary for the business environment, existing today. The author is part of this cycle, having an experience of over twenty-three years of IT activity, with over 19 projects implemented, from the beginning till the end. The ERP-type IT solutions, existing today, come with several advantages, many of them, requiring a thorough understanding of the working method and modeling of the existing economic processes. Their adaptation to the specific activity encountered on each project leads to a specific approach to the business environment in which the solution will be incorporated. Another aspect worth considering, is that related to what is known as an IT solution, where it is desired to implement such an IT solution type ERP. This article will refer to the difficulties and risks encountered on an implementation project, the solution existing before SAP implementation, being very well adapted to the specific business met. Adaptation of those who work in the company, the new solution being

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a very difficult to manage. Moreover, deciding to work in parallel for a period was not very effective in the context of changing the existing IT environment. Questions like this were very difficult to manage, here are some examples:

- in the old system things worked out like this, here I see that it doesn't look like it at all. - how can we have the same interface? - why when we want to run the x ratio, it does not have the same data as the one we were

removing from the old system? This implementation project, in the UAT phase, was very difficult to manage. A series of

files were created, which had to be completed after each executed phase, which did not happen. In the case study the author will explain more about the difficulties encountered, especially in the SD mode, which is the purpose, for this article. 2. Literature review – collected, evaluated and select the context of an ERP implementation

In our country, not many articles have been written regarding the implementation of ERP solutions, we can mention here [4], so the author made a study of the articles found abroad. The literature, authored by the author, as well as the case studies, collected over time, have shown that SAP SD is the most used, besides SAP FICO, in the big companies. There are several articles, which refer to the installation of ERP systems, less in the SAP area, so the author's contribution is a special one. However, what other researchers wrote, were considered by the one who conducted the present case study [2]. We can mention here and [2], [3] who had a different approach to practices encountered in ERP systems, to relationships encountered with other systems. Other researchers have made possible discussions regarding the relationship between ERP-type systems and the performances found in the companies where these systems were installed [5]. Any company, which wants to have a healthy, flexible IT system, must adopt the practices found in the field, be anchored in the realities on which the existing methodologies, collaborate and are integrated in the ERP type systems. The reporting of all the conditions regarding the investment made by companies, in the acquisition, installation and adoption of such a complex application, were also discussed by [5], [6].

Figure 1 ERP - Development&Construction phase (source: compilation of the author)

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The decision to adopt such a system, for the business for which you are responsible, is not an easy one. the business model must be able to adapt to what the new integrated system offers. Also, there must be flexibility in change, without which, the success of such an implementation, is placed under the sign of uncertainty. Several researchers led by [7], tried to gather a series of information, needed in such an adoption, many of them, being found in methodologies, which were subsequently applied. The following article brings to discussion the problems, their way of mitigation, regarding a phase of an SAP implementation project, with different approaches, from the IT consultants, as well as from the business environment. As can be seen from Figure 1, we will analyze the SAP SD mode, everything that has been accomplished in this project stage, combining the data obtained, from the functional consultants, from the project, as well as from the questionnaires completed by the business environment. The obtained results, the conclusions drawn, can be analyzed and used by the researchers, but at the same time, also by those dealing with such ERP (Enterprise Resource Planning) solutions [8], [9], [10]. 3. The research scope and motivation: methodology and key steps inside uat for SAP SD

module

The purpose of this article, the way in which it was developed by the author, highlights several points that have been covered throughout the project, some of which have been passed with great clarity, others have not. These points were part of the project. The project was one of implementing ERP solution - SAP, for a large company, which produces paints. We discussed in one of the previous articles the SAP FICO module - the most used module in SAP systems. Now we will discuss the SAP SD module - as important as size and customization mode. SD mode is used by the sales and distribution department. This is about managing the customers and how the products offered by the manufacturing factory reach them. The SAP SD (Sales and Distribution) module is one of the most implemented modules in Romania. It covers the part of customer relations and aims to deliver and distribute, in our case, painting materials. The realization of the integrated tests has shown, for this module SAP SD, that the relationship between the consultant SAP SD in Romania and the consultant who was appointed by the group to help this implementation. Following the interviews, it turned out that the solution in Romania was made very well, the errors being the fewest, and the customer satisfaction was maximum. All discussions were constructive, the relationship with the business environment was a very efficient one, the results highlighting the fact that it was understood from the beginning what must be implemented [11].

Figure 2 ERP - Development&Construction phase – instruments used

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4. The case study – detailed analysis of context followed

Details regarding the context in which the case study was conducted - the field, the

working environment, the company

The present case study was conducted, in Bucharest, in the industrial area, where, the present company - part of the case study - has its headquarters. The author has made a series of case studies on this company, a production leader, in the area of paints and adhesives, used in the construction area, mainly in the washable paint area - exterior and interior. The market share for these products is about 72%. This company distributes its products not only through wholesale, but also through large commercial chains.

Adapting an IT solution, such as SAP, was not very well regarded by the management as well as level 2 of the company [12]. Why? This type of business, as it was built in this company, especially in the SD (Sales and Distribution) area, was an atypical one - there was always a planning of what to do, but if a manufacturing requirement came big, it was successful in front of the one that was already in production. Which, with the advent of SAP, was very difficult to manage.

However, the management of the company demanded that this implementation be done. It was a bit of a win-win, because the processes from SAP had to be adapted, due to the new requirements, which were never related to the SAP standard. Thus, a series of Z and Y type developments have appeared (these developments are client specific). However, not many such developments were made, thanks to the intervention of the competence center located in Poland, which would subsequently maintain the Z, Y - ABAP programs.

Details about SAP UAT IT tests performed: problems occurred, mitigation plan,

results

The integrated tests were, in most of the implemented projects, a period in which, everything that worked correctly, as well as what needed to be modified and adapted, was highlighted. This was the case in this case, the only difference being that, in the case of SAP SD, the errors were very few. As the author mentioned, the tests performed in the SAP SD area were some very well developed, here had been the experience of the SAP consultant, with more than 15 years old. Initially IT tests were performed by the consultant, then key-users were invited to discussions, who were explained all the processes to be tested. Following the discussions, certain processes had to be modified. The functional consultant also had a junior near him, following the step-by-step process of what had to be tested. All tests were performed in two weeks.

Figure 3 SAP SD - Input data excel sheet - SAP IT UAT (source: compilation of the author)

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A series of tests were performed, the following (fig. 4) are detailed some of the questions, sequences from questionnaires, which the author used, during the research. Figure 4 SAP SD - Input data excel sheet - SAP IT UAT (source: compilation of the author)

In the following table we have the numbers of test perfomed based on the SAP team:

Table 1: The matrix of tests performed / team Consultants

member of the team (number)

Number of tests

performed NID_1

Number of tests which need Input

data NID_2

Tests performed with expected

results ER_1

ER < 50%


results ER_2

50%=<ER=<90%


results ER_3

ER = 100% SAP FI 5 28 22 12 (1) 14 (2) 2 (3) SAP MM 2 37 30 10 (1) 20 (2) 7 (3) SAP SD 2 40 28 8 (1) 22 (2) 10 (3) + 1 MM

SAP WMS 1 19 8 2 (1) 13 (2) 4 (3) SAP PP 2 47 36 18 (1) 22 (2) 7 (3) Note: expected results (ER): 1 (ER < 50 %) / 2. (ER<=50 % and =< 90%); 3. (ER = 100%);

value NID_1 = ER_1 + ER_2 + ER_3; value 10 (3) – means: 10 tests perfomed by 3 consultants (1 from MM team) with expected erors Based on the research done, we have a situation on the involvement of SAP SD consultants (1 senior and 1

junior), the percentage of participation was 17%. Figure 5 Percentage of participation in the - SAP IT UAT (source: compilation of the author)

In the graphs above (Figure 5), analyzing also with the article written for SAP FI, we can conclude that SAP SD is in position 2 (next to SAP MM and SAP PP), in terms of involvement. Regarding the results obtained, for tests performed, it is at position 2, at tests with ER <50% is at

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position 4 of 5, at tests with 50% = <ER <= 90% is at position 1 (next to SAP PP), and at ER> 90% is in position 1.

5. Conclusions

This article complements the article dedicated to SAP FI. For the author, SAP SD remains the easiest way that can be implemented in a company, by counting the type of consultants brought to the project. The activity of sale and distribution is a very laborious, beautiful, and very well managed by those from SAP. Integrated tests, their acceptance, was very much held by the consultants in the project, by the relationship they established throughout the project. The tests resulted in a total of 40 tests, with 8 (> 50%) / 22 (> 90%) / 10 (100%) being successful. The percentages are very high compared to the other modules. Another thing to note, all SD mode users are English speakers, so they came very prepared for testing, reading several SAP documents, available on the Internet, of course in English. Another conclusion that future researchers must take into account: all those who were in the SAP SD area - are people with higher education, being those who are in permanent contact with the clients of the company, so that, from the point of view of the author of this article, the discussions with them being very bright, intelligible, coherent and very well adapted to the topics existing in this implementation project.

BIBLIOGRAPHY

[1] Lopez R., Mohapatra A., “Configuring Sales and Distribution in SAP ERP”, SAP Press, 2nd edition, updated edition 2016, E-book formats: EPUB, MOBI, PDF, online, ISBN 978-1-4932-1260-6 [2] Matende S., Ogao, P., “Enterprise Resource Planning (ERP) System Implementation: A case Study for User participation”, Procedia Technology 9 (2013) pp. 518-526, 2013 [3] Haddara M., Hetlevik T., "Investigating the Effectiveness of Traditional Support Structures & Self-organizing Entities within the ERP Shakedown Phase," Procedia Computer Science, vol. 100, pp. 507-516, 2016. [4] Dumitru V.F., Albu N., Albu C.N., Dumitru M., “A Contingency-Based Approach to ERP Implementation and Organizational Implications - what is Different in Emerging Economies?”, Proceedings of the 7th International Conference Accounting and Management Information Systems, June 13–14, Bucharest, 2012. [5] Malaurent J., Avison D., "Reconciling global and local needs: a canonical action research project to deal with workarounds," Information Systems Journal, vol. 26, pp. 227–257, 2016. [6] Grossman T., Walsh J., “Avoiding the pitfalls of ERP system implementation”, Information Systems Management, vol. 21, no. 2: 38–42, 2004. [7] Huang Z., Palvia P., “ERP implementation issues in advanced and developing countries”, Business Process Management Journal, vol. 7, no. 3: 276–284, 2001. [8] Kim Y., Lee Z., Gosain S., “Impediments to successful ERP implementation process”, Business Process Management Journal, vol. 11, no. 2: 158–170, 2005. [9] Kremers M., van Dissel H, “ERP system migrations”, Communications of the ACM, vol. 43, no. 4: 53–56, 2000. [10] Kumar V., Maheshwari B., Kumar U., “An investigation of critical management issues in ERP implementation: Empirical evidence from Canadian organizations”, Technovation, vol. 23, no. 10: 793–807, 2003. [11] Rahimi F., Møller C., Hvam L., "Succeeding in process standardization: Explaining the fit with international management strategy.," Business Process Management Journal, vol. 22, pp. 1212-1246, 2016. [12] Roztocki N., Weistroffer H.R., “Information Technology in Transition Economies”, Journal of Global Information Technology Management, vol. 11, no. 4: 1–9, 2008a.

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sap sd - implementation of an erp system - analysis …

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