Concepts in Enterprise Resource Planning

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  • Edition: 4th
  • Format: Paperback
  • Copyright: 2012-07-27
  • Publisher: Cengage Learning

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Learn how to master and maximize enterprise resource planning (ERP) software -- which continues to grow in importance in business today -- with Monk/Wagner's CONCEPTS IN ENTERPRISE RESOURCE PLANNING, 4E. Readers discover how to use ERP tools to increase growth and productivity while reviewing how to effectively combine an organization's numerous functions into one comprehensive, integrated system. CONCEPTS IN ENTERPRISE RESOURCE PLANNING, 4E reflects the latest trends and updates in ERP software as well as introduces the basic functional areas of business and their relationships. Readers see how see how integrated information systems help organizations improve business process and provide managers with accurate, consistent, and current data for making informed strategic decisions.

Author Biography

Ellen Monk has been teaching Information Systems at the Lerner College of Business and Economics at the University of Delaware since 1989. Prior to her teaching career, Monk worked as a chemical engineer for Engelhard Industries and W.R. Grace Cos Davison Chemical Division. She has a B.5. degree in Chemical Engineering, an MBA, and is pursuing her doctoral degree in MIS. Bret Wagner is associate professor and director of Western Michigan University's Integrated Supply Management program. Wagner received his Ph.D. in Operations Management from Michigan 5tate University and has published a number of articles on topics in production planning and scheduling. He has been involved in the integration of ERP software into business curriculum since 1998.

Table of Contents

Prefacep. xv
Business Functions and Business Processesp. 1
Functional Areas and Business Processesp. 2
Functional Areas of Operationp. 2
Business Processesp. 3
Functional Areas and Business Processes of a Very Small Businessp. 6
Marketing and Salesp. 6
Supply Chain Managementp. 7
Accounting and Financep. 7
Human Resourcesp. 8
Functional Area Information Systemsp. 8
Marketing and Salesp. 9
Supply Chain Managementp. 10
Accounting and Financep. 12
Human Resourcesp. 13
Chapter Summaryp. 16
Key Termsp. 16
Exercisesp. 16
For Further Study and Researchp. 17
The Development of Enterprise Resource Planning Systemsp. 19
The Evolution of Information Systemsp. 20
Computer Hardware and Software Developmentp. 21
Early Attempts to Share Resourcesp. 22
The Manufacturing Roots of ERPp. 22
Management's Impetus to Adopt ERPp. 23
ERP Software Emerges: SAP and R/3p. 25
SAP Begins Developing Software Modulesp. 26
SAP R/3p. 26
New Directions in ERPp. 27
PeopleSoftp. 27
Oraclep. 28
SAP ERPp. 28
SAP ERP Software Implementationp. 31
Features of SAP ERPp. 33
ERP for Midsized and Smaller Companiesp. 34
Responses of the Software to the Changing Marketp. 34
Choosing Consultants and Vendorsp. 35
The Significance and Benefits of ERP Software and Systemsp. 36
Questions About ERPp. 36
How Much Does an ERP System Cost?p. 36
Should Every Business Buy an ERP Package?p. 37
Is ERP Software Inflexible?p. 38
What Return Can a Company Expect from Its ERP Investment?p. 39
How Long Does It Take to See a Return on an ERP Investment?p. 39
Why Do Some Companies Have More Success with ERP Than Othersp. 40
The Continuing Evolution of ERPp. 41
Chapter Summaryp. 44
Key Termsp. 44
Exercisesp. 45
For Further Study and Researchp. 45
Marketing Information Systems and the Sales Order Processp. 49
Overview of Fitter Snackerp. 50
Problems with Fitter Snacker's Sales Processp. 51
Sales Quotations and Ordersp. 52
Order Fillingp. 53
Accounting and Invoicingp. 55
Payment and Returnsp. 55
Sales and Distribution in ERPp. 56
Presales Activitiesp. 56
Sales Order Processingp. 56
Inventory Sourcingp. 57
Deliveryp. 57
Billingp. 57
Paymentp. 57
A Standard Order in SAP ERPp. 58
Taking an Order in SAP ERPp. 58
Discount Pricing in SAP ERPp. 64
Integration of Sales and Accountingp. 65
Customer Relationship Management (CRM)p. 66
Core CRM Activitiesp. 67
SAP's CRM Softwarep. 68
The Benefits of CRMp. 72
Chapter Summaryp. 74
Key Termsp. 74
Exercisesp. 75
For Further Study and Researchp. 76
Production and Supply Chain Management Information Systemsp. 77
Production Overviewp. 78
Fitter's Manufacturing Processp. 79
Fitter's Production Sequencep. 79
Fitter's Production Problemsp. 80
Communication Problemsp. 80
Inventory Problemsp. 80
Accounting and Purchasing Problemsp. 81
Exercise 4.1p. 82
The Production Planning Processp. 82
The SAP ERP Approach to Production Planningp. 83
Sales Forecastingp. 84
Exercise 4.2p. 85
Sales and Operations Planningp. 85
Sales and Operations Planning in SAP ERPp. 88
Disaggregating the Sales and Operations Plan in SAP ERPp. 93
Exercise 4.3p. 95
Demand Managementp. 95
Exercise 4.4p. 97
Materials Requirements Planning (MRP)p. 97
Bill of Materialp. 97
Lead Times and Lot Sizingp. 98
Exercise 4.5p. 101
Exercise 4.6p. 101
Materials Requirements Planning in SAP ERPp. 101
Detailed Schedulingp. 105
Providing Production Data to Accountingp. 107
Exercise 4.7p. 108
ERP and Suppliersp. 108
The Traditional Supply Chainp. 109
EDI and ERPp. 110
The Measures of Successp. 112
Exercise 4.8p. 112
Chapter Summaryp. 114
Key Termsp. 114
Exercisesp. 114
For Further Study and Researchp. 115
Accounting in ERP Systemsp. 117
Accounting Activitiesp. 118
Using ERP for Accounting Informationp. 121
Operational Decision-Making Problem: Credit Managementp. 123
Industrial Credit Managementp. 123
Fitter's Credit Management Proceduresp. 124
Credit Management in SAP ERPp. 124
Exercise 5.1p. 127
Product Profitability Analysisp. 127
Inconsistent Record Keepingp. 127
Inaccurate Inventory Costing Systemsp. 128
Inventory Cost Accounting Backgroundp. 128
ERP and Inventory Cost Accountingp. 129
Product Costing Examplep. 130
Exercise 5.2p. 131
Product Cost Analysis in SAP ERPp. 131
Activity-Based Costing and ERPp. 132
Problems Consolidating Data from Subsidiariesp. 133
Currency Translationp. 134
Intercompany Transactionsp. 135
Management Reporting with ERP Systemsp. 136
Data Flows in ERP Systemsp. 136
Document Flow for Customer Servicep. 137
Built-In Management-Reporting and Analysis Toolsp. 138
The Enron Collapsep. 139
Outcome of the Enron Scandalp. 140
Key Features of the Sarbanes-Oxley Act of 2002p. 141
Implications of the Sarbanes-Oxley Act for ERP Systemsp. 142
Archivingp. 143
User Authorizationsp. 145
Tolerance Groupsp. 146
Financial Transparencyp. 147
Exercise 5.3p. 150
Trends in Financial Reporting-XBRLp. 150
Chapter Summaryp. 151
Key Termsp. 152
Exercisesp. 152
For Further Study and Researchp. 157
Human Resources Processes with ERPp. 159
Problems with Fitter's Human Resources Processesp. 160
Recruiting Processp. 161
The Interviewing and Hiring Processp. 162
Human Resources Duties After Hiringp. 164
Human Resources with ERP Softwarep. 167
Advanced SAP ERP Human Resources Featuresp. 172
Time Managementp. 172
Payroll Processingp. 173
Travel Managementp. 173
Training and Development Coordinationp. 175
Additional Human Resources Features of SAP ERPp. 177
Mobile Time Managementp. 177
Management of Family and Medical Leavep. 177
Management of Domestic Partner Benefitsp. 177
Administration of Long-Term Incentivesp. 177
Personnel Cost Planningp. 178
Management and Payroll for Global Employeesp. 178
Management by Objectivesp. 178
Chapter Summaryp. 180
Key Termsp. 180
Exercisesp. 180
For Further Study and Researchp. 181
Process Modeling, Process Improvement, and ERP Implementationp. 183
Process Modelingp. 184
Flowcharting Process Modelsp. 184
Fitter Expense-Reporting Processp. 185
Exercise 7.1p. 187
Extensions of Process Mappingp. 187
Event Process Chain (EPC) Diagramsp. 189
Exercise 7.2p. 196
Process Improvementp. 197
Evaluating Process Improvement Prior to Implementationp. 198
ERP Workflow Toolsp. 200
Implementing ERP Systemsp. 203
ERP System Costs and Benefitsp. 205
Implementation and Change Managementp. 206
Implementation Toolsp. 206
System Landscape Conceptp. 210
Chapter Summaryp. 211
Key Termsp. 211
Exercisesp. 211
For Further Study and Researchp. 214
RFRO, Business Intelligence (BI), Mobile Computing, and the Cloudp. 215
Radio Frequency Identification (RFID) Technologyp. 216
Business Intelligence/Business Analyticsp. 219
In-Memory Computingp. 220
Mobile Computingp. 224
From Internet-Enabled to Cloud Computingp. 226
SAP and the Internetp. 226
NetWeaverp. 226
NetWeaver Tools and Capabilitiesp. 227
NetWeaver at Work for Fitterp. 228
Exercise 8.1p. 228
SaaS: Software as a Servicep. 229
SAP Business ByDesignp. 229
Advantages of Using SaaSp. 230
Disadvantages of Using SaaSp. 231
Exercise 8.2p. 233
Option 1: Buying Computers and Software Rights for an ERP Systemp. 234
Option 2: Using an SaaS Provider to Deliver ERP Softwarep. 235
Calculate the NPV and Make a Recommendationp. 235
Chapter Summaryp. 238
Key Termsp. 238
Exercisesp. 238
For Further Study and Researchp. 239
Glossaryp. 243
Indexp. 249
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