ENTERPRISE. Ellen F. Monk University of Delaware. Bret J. Wagner Western Michigan University. COURSE TECHNOLOGY CENGAGE Learning-

Transcription

1 0 :^S ENTERPRISE RESOURCE PLANNING Third Edition Ellen F. Monk University of Delaware Bret J. Wagner Western Michigan University COURSE TECHNOLOGY CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States

2 ,,» ' W'" "-'V* ' '..' Preface xiii Chapter 1 Business Functions and Business Processes 1 Functional Areas and Business Processes 2 Functional Areas of Operation 2 Business Processes Functional Areas and Business Processes of a Very Small Business 3 6 Marketing and Sales 6 Supply Chain Management Accounting and Finance, 7 7 Human Resources Functional Area Information Systems / 8 8 Marketing and Sales Supply Chain Management 8 9 Accounting and Finance 11 Human Resources 13 Chapter Summary 15 Key Terms 15 Exercises 15 For Further Study and Research 16 Chapter 2 The Development of Enterprise Resource Planning Systems 17 The Evolution of Information Systems 18 Computer Hardware and Software Development 19 Early Attempts to Share Resources 20 The Manufacturing Roots of ERP 20 Management's Impetus to Adopt ERP 21 ERP Software Emerges: SAP and R/3 t > 23 SAP Begins Developing Software Modules 24 SAP R/3, 24 New Directions in ERP 25 SAP ERP Software Implementation 29 ERP for Midsized Companies 32 Responses of the Software to the Changing Market 32 Choosing Consultants and Vendors 33 The Significance and Benefits of ERP Software, and Systems 33 / Questions About ERP 34 How Much Does an ERP System Cost? 34 Should Every Business Buy an ERP Package? 34 Is ERP Software Inflexible? 35 What Return Can a Company Expect from Its ERP Investment? 35 How Long Does It Take to See a Return on an ERP Investment? 36 Why Do Some Companies Have More Success with ERP Than Others? 37 The Continuing Evolution of ERP 39 Additional Capabilities Within ERP 41 The Internet 41

3 Chapter Summary 43 Key Terms 43 Exercises 44 For Further Study and Research 44 Chapter 3 Marketing Information Systems and the Sales Order Process 47 Overview of Fitter Snacker 48 Problems with Fitter Snacker's Sales Process Sales Quotations and Orders Order Filling 51 Accounting and Invoicing 53 Payment and Returns Sales and Distribution in ERP Pre-Sales Activities 54 Sales Order Processing 54 Inventory Sourcing 55 Delivery 55 Billing 55 Payment 55 A Standard Order in SAP ERP Taking an Order in SAP ERP Discount Pricing in SAP ERP 62 Integration of Sales and Accounting Customer Relationship Management Core CRM Activities 66 SAP's CRM Software 66 The Benefits of CRM 71 Chapter Summary 73 Key Terms ' 73 Exercises 74 For Further Study and Research 75 Chapter 4 Production and Supply Chain Management Information Systems 77 Production Overview 78 Fitter Snacker's Manufacturing Process 79 Fitter Snacker's Production Problems 80 The Production Planning Process 82 The SAP ERP Approach to Production Planning r 83 Sales Forecasting ''' 84 Sales and Operations Planning 85 Demand Management 95 Materials Requirements Planning (MRP) 96 Materials Requirements Planning in SAP ERP 100 Detailed Scheduling 104 Providing Production Data to Accounting 105 ERP and Suppliers 107 The Traditional Supply Chain 108 The Measures of Success 110 Chapter Summary 114 Key Terms 114 Exercises 114 For Further Study and Research 115 x Concepts in Enterprise Resource Planning, Third Edition

4 Chapter 5 Accounting in ERP Systems 117 Accounting Activities Using ERP for Accounting Information Operational Decision-Making Problem: Credit Management 122 Industrial Credit Management 122 Fitter Snacker's Credit Management Procedures 124 Credit Management in SAP ERP Product Profitability Analysis Inconsistent Recordkeeping 127 Inaccurate Inventory Costing Systems Companies with Subsidiaries Management Reporting with ERP Systems Document Flow for Customer Service Built-in Management-Reporting and Analysis Tools 137 The Enron Collapse 138 Outcome of the Enron Scandal 140 Key Features of the Sarbanes-Oxley Act 140 Implications of the Sarbanes-Oxley Act for ERP Systems 141 Archiving 142 User Authorizations Tolerance Groups, Financial Transparency Chapter Summary / Key Terms 149 Exercises 150 For Further Study and Research 154 Chapter 6 Human Resources Processes with ERP 157 Problems with Fitter Snacker's Human Resources Processes 159 Recruiting Process 159 The Interviewing and Hiring Process 160 Human Resources Duties After Hiring 162 Human Resources with ERP Software 165 Advanced SAP ERP Human Resources Features 170 Time Management 170 Payroll ; 170 Travel Management 171 Training and Development 172 Additional Human Resources Features of SAP ERP V Mobile Time Management 174 Management of Family and Medical Leave 174 Domestic Partner Handling 174 Administration of Long-Term Incentives 175 Personnel Cost Planning 175 Management and Payroll for Global Employees 175 Management by Objectives 175 Chapter Summary 176 Key Terms / 176 Exercises 176 For Further Study and Research 177 Table of Contents xi

5 Chapter 7 Process Modeling, Process Improvement, and ERP Implementation 179 Process Modeling 180 Flowcharting Process Models 180 Fitter Snacker Expense Report Process 181 Extensions of Process Mapping 183 Event Process Chain (EPC) Diagrams 184 Process Improvement 192 Evaluating Process Improvement 193 ERP Workflow Tools 195 Implementing ERP Systems 198 ERP System Costs and Benefits 200 Implementation and Change Management 201 Implementation Tools 201 System Landscape Concept 204 Chapter Summary 206 Key Terms 206 Exercises 206 For Further Study and Research 210 Chapter 8 ERP and Electronic Commerce 211 Electronic Commerce Background * 212 Business-to-Business E-Commerce 212 E-Commerce and ERP 215 Fitter Snacker and E-Commerce 216 Using ERP Through an Application Service Provider 217 Application Service Providers 217 NetWeaver 224 NetWeaver Tools and Capabilities 224 NetWeaver at Work for Fitter Snacker 227 Duet 228 Accessing ERP Systems Over the Internet 228 XML k 228 Radio Frequency Identification Technology 230 Chapter Summary 233 Key Terms 233 Exercises ; 234 For Further Study and Research 234 Glossary v-. ;1 237 Index 245 xii Concepts in Enterprise Resource Planning, Third Edition