1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Enterprise Resource Planning Systems Chapter 14

3. Enterprise Resource Planning Defined R/3 System Components Reasons for Implementing R/3 OBJECTIVES 14-3

4. Enterprise Resource Planning (ERP) Systems Enterprise Resource Planning Systems is a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in the firm This integration is accomplished through a database shared by all the application programs 14-4

5. SAP AG’S R/3 SAP AG, A German firm, is a world leader in ERP software. -Designed to operate in a three-tier client/server configuration -Applications are fully integrated so that data are shared between all applications 14-5

6. R/3 System Functional Components R/3 System Functional Components Corporate ServicesHuman Capital Resources Operations Financials 14-6

7. Financials Financial and management accounting Internal Controlling and Audit Financial Supply Chain Management 14-7

8. Human Capital Management Payroll Benefits administration Applicant data administration Personnel development planning Workforce planning Schedule & shift planning Time management Travel expense accounting 14-8

9. Operations Materials management Plant maintenance Quality management Production planning & control Project management system 14-9

10. Reasons for Implementing SAP R/3 Desire to standardize and improve processes To improve the level of systems integration To improve information quality 14-10

11. Question Bowl Which of the following is considered a part of the “triple client server configuration” of the SAP R/3 system? a.Front-end server b.Application server c.Database server d.All of the above e.None of the above Answer: d. All of the above 14-11

12. Question Bowl Which of the following is a SAP Application? a.Quality management b.Project system c.Logistics general d.All of the above e.None of the above Answer: d. All of the above 14-12

13. Question Bowl Which of the following SAP Applications contains a full set of capabilities needed to manage, schedule, pay and hire people to run a company? a.Financial accounting b.Manufacturing and logistics c.Corporate Services d.All of the above e.None of the above Answer: e. None of the above (Correct answer is Human Capital Management) 14-13

14. 1-14 End of Chapter 14 14-14