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The Erp Business Process

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The Erp Business Process

  1. 1. ERP Business Functions and Business Processes A straight forward lesson designed to simplify thinking related to how a complexAuthor Tom Matys ERP System worksDPR105: Mgmt Info Systems
  2. 2. Business Functional Areas• Marketing & Sales (M/S)• Supply Chain Management (SCM)• Accounting & Finance (A/F)• Human Resources (HR)
  3. 3. Business Functions• M/S: Fulfilling and identifying the customer’s needs, pricing, product research, determine future needs, pricing.• SCM: Purchasing, manufacturing, inventory management, Production Planning, materials requirements planning (MRP)• A/F: Financial & Managerial Reporting, Accounts Payable, Accounts Receivable, Billing,• HR: Hiring, training, payroll, salary research, employee benefits, promote business ethics
  4. 4. Business Process• A set of multi-step activities that produce desired outcomes.• ERP is a collection of processes.• Processes consist of interdependent steps in an ERP System.• The steps in a process are completed in different functional areas.• Each process starts with a trigger. Inputs Process Outputs
  5. 5. Four Concepts of a Process1) Triggers2) Tasks3) Data4) Outcome
  6. 6. QuestionWhat is a common trigger in the ERP system that initiates a process?
  7. 7. AnswerCreate documentCreating a document is a trigger that can start off a process that needs to be completed in several different steps, in several different areas.
  8. 8. Business Processes are Cross-Functional M/S SCM A/F
  9. 9. Processes are executed in SAP ERPusing the modules that are specific to the process 9
  10. 10. Cross-Functional Nature of the Order Management Process Check Quote Commit Produce Deliver Bill Collect Credit Sales & Distribution Production Planning Financial Materials Mgmt10 Accounting
  11. 11. 11 Sales Function Accounting Function Purchasing Function Customer Order Process Production Function Process View of Business Logistics Material Order Process Function
  12. 12. Functional Areas of Operation12
  13. 13. Functional Area Information Systems13
  14. 14. Marketing and Sales• Inputs – Customer data – Order data – Sales trend data – Per-unit cost• Outputs – Sales strategies – Product pricing14
  15. 15. Functional Area Information Systems15
  16. 16. Supply Chain Management• Inputs – Product sales data – Production plans – Inventory levels• Outputs – Raw material orders – Packaging orders – Resource expenditure data – Production and inventory reports16
  17. 17. Functional Area Information Systems17
  18. 18. Accounting and Finance• Inputs – Payments from customers – Accounts receivables data – Accounts payables data – Sales data – Production and inventory data – Payroll and expense data• Outputs – Payments to suppliers – Financial reports – Customer credit data18
  19. 19. Functional Area Information Systems19
  20. 20. Human Resources• Inputs – Personnel forecasts – Skills data• Outputs – Regulation compliance – Employee training and certification – Skills database20
  21. 21. Questions?• Next up: Lab One21

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