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Chapter 14

Enterprise Resource
Planning Systems

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OBJECTIVES

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

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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
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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

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R/3 System Functional Components

Financials

R/3 System
Corporate Services Functional
Human Capital
Components Resources

Operations

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Financials

• Financial and management

accounting

• Internal Controlling and Audit

• Financial Supply Chain Management

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Human Capital Management

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

• Materials management

• Plant maintenance

• Quality management

• Production planning & control

• Project management system

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Reasons for Implementing SAP R/3

• Desire to standardize and improve

processes
• To improve the level of systems
integration
• To improve information quality

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End of Chapter 14

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