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Enterprise Resource Planning Systems

SAP R/3
Main Reference: Operations Management by Chase, Jacobs, and Aquilano, McGraw-Hill, 2004

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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 Defined

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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ERP Vendors
SAP Oracle PeopleSoft + JD Edwards BaaN QAD (Mfg/Pro) Microsoft Great Plains Others
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SAP
Founded in 1972. Headquartered in Walldorf, Germany. SAP is the world's largest inter-enterprise software company. SAP employs over 28,900 people in more than 50 countries. 12 Million Users. 67,500 Installations. 1,500 Partners. 23 Industry Solutions.

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6 Exhibit MB 12.2

Triple Client/Server Configuration

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R/3 System Functional Components

Financial Accounting

Sales & Distribution

R/3 System Functional Components

Human Resources

Manufacturing & Logistics

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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

Desire to standardize and improve processes To improve the level of systems integration To improve information quality

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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

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Question Bowl
Which of the following is a program in the SAP Production Planning Application? a. Purchasing b. Workforce planning c. Sales and operations planning d. Project planning e. None of the above
Answer: c. Sales and operations planning

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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

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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. Sales and distribution d. All of the above e. None of the above Answer: e. None of the above (Correct answer is Human Resources or HR.)
The McGraw-Hill Companies, Inc., 2004