1. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 1

2. © The McGraw-Hill Companies, Inc., 2006 2 McGraw-Hill/Irwin Managerial Briefing 13 Enterprise Resource Planning Systems

3. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 3  Enterprise Resource Planning Defined  R/3 System Components  Reasons for Implementing R/3 OBJECTIVES

4. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 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

5. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 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

6. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 6 R/3 System Functional Components R/3 System Functional Components Sales & DistributionHuman Resources Manufacturing & Logistics Financial Accounting

7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 7 Financial Accounting  Financials  Controlling  Asset management

8. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 8 Human Resources  Payroll  Benefits administration  Applicant data administration  Personnel development planning  Workforce planning  Schedule & shift planning  Time management  Travel expense accounting

9. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 9 Manufacturing & Logistics  Materials management  Plant maintenance  Quality management  Production planning & control  Project management system

10. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 10 Sales and Distribution  Prospect & customer management  Sales order management  Configuration management  Distribution  Export controls  Shipping and transportation management  Billing, invoicing, and rebate processing

11. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 11 Reasons for Implementing SAP R/3  Desire to standardize and improve processes  To improve the level of systems integration  To improve information quality

12. © The McGraw-Hill Companies, Inc., 2006 12 McGraw-Hill/Irwin End of Managerial Briefing 13