Applying concepts from SAP to a real world case (business processes in SAP) - Essay Example

In essence, rate of production must be done in such a way that consumers do not have the need to wait for supply because there are shortages. This is because in a very competitive market, as soon as there are shortages, consumers fall on substitute products and other competitors to get their demands met. To avoid this situation, Fuji has a number of ways that is fuses technology with the traditional concept of production to ensure that production takes place in a much effective and efficient manner.

This means is rooted in the use of SAP enterprise resource planning. This paper therefore discusses one concept of SAP as applies to Fuji and identifies how effectively this is used to bring about the needed competitive advantage that the company requires from its business engagements. Production Planning Concept of SAP Designed to make the general execution of task within the organization easier, SAP can be identified as comprising of several layers, all of which must be together as a collective force to achieve the goals of the organisation (Cowie, 2003).

Despite the fact that there are many different layers, it is advised that the basic system, which acts as the heart of the data operations with the SAP concept, should be kept only for the evidence of higher level managers within the organisation. This is because of the control that the basic system has over the entire organisational processing (Simha & Word, 2012). With this noted, there are other concepts or modules within the SAP that can be customised as implementation tools that can used across all departments of the organisation for the execution of duties.

These concepts come in different forms and formats, including production planning. As the name implies, production planning is a very important component of the production process that is used as starting point for all other aspects of production to follow (Baeza-Yates and Ribeiro-Neto, 2009). Specifically, production planning SAP is used to plan and control the manufacturing activities that take place within the company (Kania School of Management, 2011). This means that the production planning SAP is necessary not only at the pre-manufacturing stage but also very influential at the manufacturing stage of products and goods.

This is because whiles manufacturing is taking place, it is important to undertake production planning processes to evaluation the level of conformity of what is being done to what was planned to be done (Balabanovic and Shoham, 2007). Once SAP is introduced as concept for the production planning, there are several other modules that follows, particularly bills of material. Bills of Material at Fuji Under the broader concept of production planning in SAP, the specific concept of bills of material is related to Fuji, where the need to engage in the manufacturing of sports bikes take place on a constant basis.

Notably, at Fuji, bills of material involves and engages several aspects of the production planning process. Specifically, there are two major ways that bills of materials are broadly used in Fuji. The first of this is to identify the list of all input materials needed to make the manufacturing of each set of sports bike complete by use of SAP concept of production planning. As part of the planning phase of the manufacturing that takes place,