1Slides used in class may be different from slides in student pack

Managerial Briefing 13

Enterprise Resource Planning Systems Enterprise Resource Planning Defined R/3 System Components Reasons for Implementing R/3

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Enterprise Resource Planning (ERP) Systems Defined Enterprise Resource Planning Systems is

a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in the firm.

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R/3 System Functional Components

R/3 SystemFunctional

Components

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Financial Accounting Financials -

Controlling -

Asset management -

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Human Resources Payroll Benefits administration Applicant data administration Personnel development planning Workforce planning Schedule & shift planning Time management Travel expense accounting

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Manufacturing & Logistics Materials management

Plant maintenance

Quality management

Production planning & control

Project management system

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Sales and Distribution Prospect & customer management Sales order management Configuration management Distribution Export controls Shipping and transportation management Billing, invoicing, and rebate processing

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Reasons for Implementing SAP R/3 (or any ERP system)

Desire to standardize and improve processes

To improve the level of systems integration To improve information quality

Customers Banks Investors

Suppliers

Strategy

Marketing

Sales & OpsPlanning

Financial Planning

R&D Sales Fcstg.

Field Service

Vision, Mission

Exec DecisionSupport

ProductEng’g

Mfg.Eng’g

Quality/LIMS Maintenance

Transportation

A/P G/L

Payroll

A/R

Shipping

HumanResources

WarehouseMgt.

CustomerService

DemandMgt. Master

Scheduling

Inventory

MaterialRequirements

Planning

CapacityRequirements

Planning

Purchasing

Kanban

Mfg Exec System/Prod Act Control

Std. CostingAdvanced Costing

Langenwalter, Gary A., Enterprise Resources Planning and Beyond, Copyright 2000, (St. Lucie Press/APICS)

F/A Environmental

Employees

GovtReporting

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Manufacturing ResourcesPlanning (MRP II)

Enterprise Resource

Planning (ERP)

MaterialRequirements

Planning (MRP)

Exec. DecisionSupport

SupplyChain

Figure 1-3: MRP, MRP II, ERP, and TEI Functionality Comparison

Langenwalter, Gary A., Enterprise Resources Planning and Beyond, Copyright 2000, (St. Lucie Press/APICS)

Total EnterpriseIntegration (TEI)

FinancialPlanning

DemandManagement

Sales & OpsPlanning

Marketing

ProductEngineering

SupplyChain

Execution

R&D

Accounting:A/P, A/R, GL

Std Cost

Purchasing

ProductionActivity Cntl Inventory

MgtCRP

MasterScheduling

Order Entry

CustomerService

HumanResources

MfgEng’g

MaintenanceManagement

QualityMgt

AdvancedCosting

Environ-mental Mfg

ExecutionSystem

AdvancedPlanning &Scheduling

Full JITSupport

FieldService

Full SalesSupport

Logistics &Distribution

Forecasting

StrategicPlan

EnterpriseRelationship

Mgt