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Tata McGraw
 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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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 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. Corporate Services
d. All of the above
e. None of the above

Answer: e. None of the above (Correct answer

is Human Capital Management)
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End of Chapter 14

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