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Introduction: Enterprise Resource Planning

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Chapter 1 Introduction: Enterprise Resource Planning Chapter 1 Learning Objectives Explain what a business is Name a business s main functional areas of operation ... – PowerPoint PPT presentation

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Title: Introduction: Enterprise Resource Planning


1
Chapter 1
  • Introduction Enterprise Resource Planning

2
Chapter 1 Learning Objectives
  • Explain what a business is
  • Name a businesss main functional areas of
    operation
  • Differentiate a business process from a business
    function
  • Identify the kinds of data that each main
    functional area produces
  • Identify the kinds of data that each main
    functional area needs
  • Define integrated information systems and state
    why they are important

3
Definition of a Business
  • A business is an organization that sells goods or
    services to customers (or clients) in exchange
    for money or other things of value.

4
Introduction Enterprise Resource Planning
  • Manage company-wide business operations
  • Uses a common database and shared management
    reporting tools

5
Functional areas of operation
  • Marketing and Sales
  • Production and Materials Management
  • Accounting and Finance
  • Human Resources

6
Ex Procurement
  • Cost
  • Quality
  • Availability
  • Management

7
Business Processes
  • Managers now think in terms of business process
  • Take the customers perspective
  • Customer is always right
  • If not reread rule 1

8
Business Process
  • A business process is a collection of activities
    that takes inputs and creates outputs that are a
    value to a customer

9
Business Processes Cut Across Functional Lines
10
Example Buying a new computer
  • Information on products available
  • Place order quickly, maybe obtain financing
  • Quick delivery
  • 24 Hour help

11
To do this, company needs to
  • Make sure functional areas are integrated
  • Information on customer configuration must be
    up-to-date
  • Manufacturing needs configuration from sales
  • If financing is required, that information from
    sales is needed in accounting

12
Functional Areas and Business Processes of a Very
Small Business
  • Marketing and Sales
  • Production and Materials Management
  • Accounting and Finance
  • Human Resources

13
Basic business process are the same in large and
small business
14
Functional Area Information Systems
  • Potential inputs and outputs for each functional
    area
  • Different kinds of data and usage of data

15
Marketing and Sales
  • Determine pricing
  • Take customer orders
  • Create sales forecast

16
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17
Production and Materials Management
  • Planning
  • Need accurate forecasts from Marketing and Sales
  • Compare costs with Accounting

18
Production and Materials Management Plan
  • Long range
  • Medium range
  • Short range
  • More than one year
  • Number of months
  • Individual products

19
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20
Accounting and Finance
  • Record transactions
  • Summarize data

21
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22
Human Resources
  • Recruit
  • Train
  • Evaluate
  • Compensate
  • Dehire (retire or fire)

23
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24
Chapter Summary
  • Companies that manufacture products to sell have
    these basic functional areas
  • Marketing and Sales
  • Production and Materials Management
  • Accounting and Finance
  • Human Resources
  • Functional areas are served by information
    systems

25
Chapter Summary Continued
  • Employees in one functional area need information
    from another to do their job
  • Today, business managers think in terms of
    business processes rather than functional areas.
    ERP software encourages this new thinking
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