1 Slides 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

2 Slides used in class may be different from slides in student pack 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. 

3 Slides used in class may be different from slides in student pack R/3 System Functional Components R/3 System Functional Components

4 Slides used in class may be different from slides in student pack Financial Accounting  Financials -  Controlling -  Asset management -

5 Slides used in class may be different from slides in student pack Human Resources  Payroll  Benefits administration  Applicant data administration  Personnel development planning  Workforce planning  Schedule & shift planning  Time management  Travel expense accounting

6 Slides used in class may be different from slides in student pack Manufacturing & Logistics  Materials management  Plant maintenance  Quality management  Production planning & control  Project management system

7 Slides used in class may be different from slides in student pack Sales and Distribution  Prospect & customer management  Sales order management  Configuration management  Distribution  Export controls  Shipping and transportation management  Billing, invoicing, and rebate processing

8 Slides used in class may be different from slides in student pack 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 & Ops Planning Financial Planning R&D Sales Fcstg. Field Service Vision, Mission Exec Decision Support Product Eng’g Mfg. Eng’g Quality/ LIMS Maintenance Transportation A/P G/L Payroll A/R Shipping Human Resources Warehouse Mgt. Customer Service Demand Mgt. Master Scheduling Inventory Material Requirements Planning Capacity Requirements Planning Purchasing Kanban Mfg Exec System/ Prod Act Control Std. Costing Advanced Costing Langenwalter, Gary A., Enterprise Resources Planning and Beyond, Copyright 2000, (St. Lucie Press/APICS) F/A Environmental Employees Govt Reporting

10 Slides used in class may be different from slides in student pack Manufacturing Resources Planning (MRP II) Enterprise Resource Planning (ERP) Material Requirements Planning (MRP) Exec. Decision Support Supply Chain 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 Enterprise Integration (TEI) Financial Planning Demand Management Sales & Ops Planning Marketing Product Engineering Supply Chain Execution R&D Accounting: A/P, A/R, GL Std Cost Purchasing Production Activity Cntl Inventory Mgt CRP Master Scheduling Order Entry Customer Service Human Resources Mfg Eng’g Maintenance Management Quality Mgt Advanced Costing Environ- mental Mfg Execution System Advanced Planning & Scheduling Full JIT Support Field Service Full Sales Support Logistics & Distribution Forecasting Strategic Plan Enterprise Relationship Mgt