Concepts in Enterprise Resource Planning

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ISBN: 9781111820398 | 1111820392
Cover: Paperback
Copyright: 7/27/2012

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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.

Preface	p. xv
Business Functions and Business Processes	p. 1
Functional Areas and Business Processes	p. 2
Functional Areas of Operation	p. 2
Business Processes	p. 3
Functional Areas and Business Processes of a Very Small Business	p. 6
Marketing and Sales	p. 6
Supply Chain Management	p. 7
Accounting and Finance	p. 7
Human Resources	p. 8
Functional Area Information Systems	p. 8
Marketing and Sales	p. 9
Supply Chain Management	p. 10
Accounting and Finance	p. 12
Human Resources	p. 13
Chapter Summary	p. 16
Key Terms	p. 16
Exercises	p. 16
For Further Study and Research	p. 17
The Development of Enterprise Resource Planning Systems	p. 19
The Evolution of Information Systems	p. 20
Computer Hardware and Software Development	p. 21
Early Attempts to Share Resources	p. 22
The Manufacturing Roots of ERP	p. 22
Management's Impetus to Adopt ERP	p. 23
ERP Software Emerges: SAP and R/3	p. 25
SAP Begins Developing Software Modules	p. 26
SAP R/3	p. 26
New Directions in ERP	p. 27
PeopleSoft	p. 27
Oracle	p. 28
SAP ERP	p. 28
SAP ERP Software Implementation	p. 31
Features of SAP ERP	p. 33
ERP for Midsized and Smaller Companies	p. 34
Responses of the Software to the Changing Market	p. 34
Choosing Consultants and Vendors	p. 35
The Significance and Benefits of ERP Software and Systems	p. 36
Questions About ERP	p. 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 Others	p. 40
The Continuing Evolution of ERP	p. 41
Chapter Summary	p. 44
Key Terms	p. 44
Exercises	p. 45
For Further Study and Research	p. 45
Marketing Information Systems and the Sales Order Process	p. 49
Overview of Fitter Snacker	p. 50
Problems with Fitter Snacker's Sales Process	p. 51
Sales Quotations and Orders	p. 52
Order Filling	p. 53
Accounting and Invoicing	p. 55
Payment and Returns	p. 55
Sales and Distribution in ERP	p. 56
Presales Activities	p. 56
Sales Order Processing	p. 56
Inventory Sourcing	p. 57
Delivery	p. 57
Billing	p. 57
Payment	p. 57
A Standard Order in SAP ERP	p. 58
Taking an Order in SAP ERP	p. 58
Discount Pricing in SAP ERP	p. 64
Integration of Sales and Accounting	p. 65
Customer Relationship Management (CRM)	p. 66
Core CRM Activities	p. 67
SAP's CRM Software	p. 68
The Benefits of CRM	p. 72
Chapter Summary	p. 74
Key Terms	p. 74
Exercises	p. 75
For Further Study and Research	p. 76
Production and Supply Chain Management Information Systems	p. 77
Production Overview	p. 78
Fitter's Manufacturing Process	p. 79
Fitter's Production Sequence	p. 79
Fitter's Production Problems	p. 80
Communication Problems	p. 80
Inventory Problems	p. 80
Accounting and Purchasing Problems	p. 81
Exercise 4.1	p. 82
The Production Planning Process	p. 82
The SAP ERP Approach to Production Planning	p. 83
Sales Forecasting	p. 84
Exercise 4.2	p. 85
Sales and Operations Planning	p. 85
Sales and Operations Planning in SAP ERP	p. 88
Disaggregating the Sales and Operations Plan in SAP ERP	p. 93
Exercise 4.3	p. 95
Demand Management	p. 95
Exercise 4.4	p. 97
Materials Requirements Planning (MRP)	p. 97
Bill of Material	p. 97
Lead Times and Lot Sizing	p. 98
Exercise 4.5	p. 101
Exercise 4.6	p. 101
Materials Requirements Planning in SAP ERP	p. 101
Detailed Scheduling	p. 105
Providing Production Data to Accounting	p. 107
Exercise 4.7	p. 108
ERP and Suppliers	p. 108
The Traditional Supply Chain	p. 109
EDI and ERP	p. 110
The Measures of Success	p. 112
Exercise 4.8	p. 112
Chapter Summary	p. 114
Key Terms	p. 114
Exercises	p. 114
For Further Study and Research	p. 115
Accounting in ERP Systems	p. 117
Accounting Activities	p. 118
Using ERP for Accounting Information	p. 121
Operational Decision-Making Problem: Credit Management	p. 123
Industrial Credit Management	p. 123
Fitter's Credit Management Procedures	p. 124
Credit Management in SAP ERP	p. 124
Exercise 5.1	p. 127
Product Profitability Analysis	p. 127
Inconsistent Record Keeping	p. 127
Inaccurate Inventory Costing Systems	p. 128
Inventory Cost Accounting Background	p. 128
ERP and Inventory Cost Accounting	p. 129
Product Costing Example	p. 130
Exercise 5.2	p. 131
Product Cost Analysis in SAP ERP	p. 131
Activity-Based Costing and ERP	p. 132
Problems Consolidating Data from Subsidiaries	p. 133
Currency Translation	p. 134
Intercompany Transactions	p. 135
Management Reporting with ERP Systems	p. 136
Data Flows in ERP Systems	p. 136
Document Flow for Customer Service	p. 137
Built-In Management-Reporting and Analysis Tools	p. 138
The Enron Collapse	p. 139
Outcome of the Enron Scandal	p. 140
Key Features of the Sarbanes-Oxley Act of 2002	p. 141
Implications of the Sarbanes-Oxley Act for ERP Systems	p. 142
Archiving	p. 143
User Authorizations	p. 145
Tolerance Groups	p. 146
Financial Transparency	p. 147
Exercise 5.3	p. 150
Trends in Financial Reporting-XBRL	p. 150
Chapter Summary	p. 151
Key Terms	p. 152
Exercises	p. 152
For Further Study and Research	p. 157
Human Resources Processes with ERP	p. 159
Problems with Fitter's Human Resources Processes	p. 160
Recruiting Process	p. 161
The Interviewing and Hiring Process	p. 162
Human Resources Duties After Hiring	p. 164
Human Resources with ERP Software	p. 167
Advanced SAP ERP Human Resources Features	p. 172
Time Management	p. 172
Payroll Processing	p. 173
Travel Management	p. 173
Training and Development Coordination	p. 175
Additional Human Resources Features of SAP ERP	p. 177
Mobile Time Management	p. 177
Management of Family and Medical Leave	p. 177
Management of Domestic Partner Benefits	p. 177
Administration of Long-Term Incentives	p. 177
Personnel Cost Planning	p. 178
Management and Payroll for Global Employees	p. 178
Management by Objectives	p. 178
Chapter Summary	p. 180
Key Terms	p. 180
Exercises	p. 180
For Further Study and Research	p. 181
Process Modeling, Process Improvement, and ERP Implementation	p. 183
Process Modeling	p. 184
Flowcharting Process Models	p. 184
Fitter Expense-Reporting Process	p. 185
Exercise 7.1	p. 187
Extensions of Process Mapping	p. 187
Event Process Chain (EPC) Diagrams	p. 189
Exercise 7.2	p. 196
Process Improvement	p. 197
Evaluating Process Improvement Prior to Implementation	p. 198
ERP Workflow Tools	p. 200
Implementing ERP Systems	p. 203
ERP System Costs and Benefits	p. 205
Implementation and Change Management	p. 206
Implementation Tools	p. 206
System Landscape Concept	p. 210
Chapter Summary	p. 211
Key Terms	p. 211
Exercises	p. 211
For Further Study and Research	p. 214
RFRO, Business Intelligence (BI), Mobile Computing, and the Cloud	p. 215
Radio Frequency Identification (RFID) Technology	p. 216
Business Intelligence/Business Analytics	p. 219
In-Memory Computing	p. 220
Mobile Computing	p. 224
From Internet-Enabled to Cloud Computing	p. 226
SAP and the Internet	p. 226
NetWeaver	p. 226
NetWeaver Tools and Capabilities	p. 227
NetWeaver at Work for Fitter	p. 228
Exercise 8.1	p. 228
SaaS: Software as a Service	p. 229
SAP Business ByDesign	p. 229
Advantages of Using SaaS	p. 230
Disadvantages of Using SaaS	p. 231
Exercise 8.2	p. 233
Option 1: Buying Computers and Software Rights for an ERP System	p. 234
Option 2: Using an SaaS Provider to Deliver ERP Software	p. 235
Calculate the NPV and Make a Recommendation	p. 235
Chapter Summary	p. 238
Key Terms	p. 238
Exercises	p. 238
For Further Study and Research	p. 239
Glossary	p. 243
Index	p. 249
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Concepts in Enterprise Resource Planning

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