Post on 26-Dec-2015
SAP R/3 Budget
SAP R/3 Costs
Hardware Software Add-on software and hardware Implementation process Training of operators Maintaining the system Opportunity costs of system failure System upgrade
Cost of Hardware
Basic workstation Dell Dimension 2400 Series: $618 per unit (Bulk sales negotiated)
Quality and Development Server Dell PowerEdge 1600SC: $6,862 per unit
Production Server PowerEdge1600SC: $10,799 per unit
Training Server Dell PowerEdge 1600SC: $6,862 per unit
Cost of SAP R/3 Software
SAP cost fluctuates; approx. $1.5 million. Cost includes client-side and server-side
software, backup software, operating system, test and development tools.
Modules can be customized; selected modules are pertinent to business functions
SAP Modules
NECESSARY Financial Accounting Human Resources-
Personnel Admin. Materials
Management Sales and
Distribution
FOR IN-HOUSE PRODUCTION
Production Planning Quality Management General Logistics Plant Management
Cost of Add-On Software and Hardware
SOFTWARE Backup executive file for
Windows servers Veritas ver. 9.0: $300-500
Backup Storage Area Network OptionBrightStor ARCserve ver. 9: $1000-1600
HARDWARE Storage controller Adaptec
SCSI RAID 2100s: $388-445 each
Interface ConverterIBM SAN Data Gateway Router 2108 Model R03: $6000
Networking Cable Belkin Pro Series: $40 per 100 ft.
Router D-Link DI-604: $60 Barcode ScannerWasp
WLP 4170: $250-300.
Cost of Implementation
In one year, hiring a consultant would be beneficial to both the implementation and
training phases of SAP.
Wage runs at about $900 daily, multiplied by 200 work days
Total wage $180,000
Cost of Training of Operators
Consultant outlined in “Cost of Implementation” may assist in the operating training for SAP.
Other useful resources include:
RWD Performance Pak Course Books$2,520
RWD SAP 4.6 Navigation Course$8,280
RWD SAP 4.6 ESS Course$10,320
RWD SAP 4.6 ESS Course Customization$32,500
RWD Info Pak Training$1,380
Total Training Materials $55,000
Cost of Maintaining the System
ANNUAL COST Cost determined by but not restricted to
the follow factors: Customer Support Debugging and anti-virus software Replacement materials
17% of hardware and software costs (17% of $1,567,678$266,505.26)
Lost Opportunity Costs
Gauging cost is difficult and sometimes inaccurate.
Solution: set money aside (amount still to be negotiated with size of R/3 system) for possible system failure
Scenarios to consider: General Ledger application crashes Infrastructure collapses Productivity services become unavailable
Periodical System Upgrade
The typical upgrade for SAP would be approx. $3.1 million.
This number can decrease, however, with the number of modules on the company’s system.
The ImageFX Upgrade cost, based upon the number of end users and modules, should approximate to about $600,000.
Upgrade is not an immediate expense, but should be included in the budget for future reference.
Other Operational Costs
Working Space Needed work space: 1500 square feet Includes space for:
Cubicles for ten employees with extra space for potential expansion
Conference area Office space for SAP and IT Directors Traffic and egress At (about) $35 per square foot, total annual cost for
operating the SAP/IT department accumulates to $52,500.
Other Operational Costs (cont.)
Costs for other office expenses per employee (in a cubicle)= ≈ $1100 ($11,000 total)
Costs for each office= ≈ $4000 ($8000 total)
Costs for conference room= ≈ $5000
Final Budget
Cost of Hardware $55,226
Cost of SAP Software ≈ $1,500,000
Cost of Add-Ons ≈ $12,452
Cost of Implementation ≈ $180,000
Cost of Training $55,000
Cost of Maintenance ≈ $266,505.26
Lost Opportunity Costs TBA
Cost of Upgrade ≈ $600,000
Operating Expenses ≈ $76,500
GRAND TOTAL $2,705,683.26