Exam 1 study guide
Integrate financial information
To understand an organization’s overall performance, managers must have a single
Integrate customer order information
With all customer order information in a single system it is easier to coordinate
manufacturing, inventory, and shipping to send a common message to customers
regarding order status.
Standardize and speed up manufacturing processes
ERP systems provide standard methods for manufacturing companies to use when
automating steps in the manufacturing process.
Standardizing manufacturing processes
across an organization saves time, increases production, and reduces head count.
With improved visibility in the order fulfillment process, an organization can reduce
inventories and streamline deliveries to its customers.
Standardize human resource information
ERPs provide a unified method for tracking employee’s time, as well as communicating
HR benefits and services.
Purchasing the software
Hiring external experts to help implement the system correctly.
Redefining processes in order to ensure the company is using the most efficient and
If the software package does not meet all of the company’s needs, it may be required to
customize the software.
Integration and Testing
Ensuring all software products, including disparate systems not part of the ERP system,
are working together or are integrated.
Testing the ERP system includes testing all
Training all new users.
Data warehouse integration and data conversion
Moving data from an old system into the new ERP system.
Core components and their basic functions
Accounting and Finance
These components manage accounting data and financial processes within the enterprise
with functions such as general ledger, accounts payable, accounts receivable, budgeting,
and asset management.
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One of the most useful components is it
feature which manages
customer “company extended” credit limits.
ERP financial components are the backbone behind product profitability analysis and
allow companies to perform all types of advanced profitability modeling techniques.
Production and materials management
These components handle the various aspects of production planning and execution such
as demand forecasting, production scheduling, job cost accounting, and quality control.
Materials requirement planning
The HR component tracks employee information including payroll, benefits,
compensation, and performance assessment, and assure compliance with the legal
requirements of multiple jurisdictions and tax authorities.
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This note was uploaded on 12/07/2010 for the course ACG 3361, 4401 taught by Professor Goldwater,canada,judd,byrd,theniel during the Spring '10 term at University of Central Florida.