22782 Business Process Integration with ERP

Faculty of Business: Accounting
Credit points: 6 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject focuses on the process-oriented implementation of extended ERP software (SAP) in the areas of management accounting, production, and supply chain management (SCM) in an enterprise. This subject provides both the theoretical concepts and instruments used in operations management/SCM and cost accounting, and their practical applications in SAP ERP™.

An extensive case study provides students with sound knowledge of real-world issues at the interface of operations management/SCM, cost accounting and integrated systems.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

Understand core activities, concepts and techniques in operations management
Understand core activities, concepts and techniques in cost accounting
Understand how data and processes in operations management relate to data and processes in cost accounting
Understand and implement master data and control scenarios for integrated operations and cost management in an enterprise system
Develop integrated, iterative plans for operations and cost management using and enterprise system
Simulate production planning and control procedures and execute production plans
7. Analyse costs and the reasons for cost variances at various levels (e.g. cost centres, sales orders, and production orders).

Contribution to graduate profile

Companies nowadays switch to integrated information systems for Enterprise Resource Planning replacing isolated 'information islands'.

It is the job of those responsible for the implementation of an ERP package to determine and document the processes to be implemented and to tailor the customizing process and data entry accordingly. Therefore, the core of the competence students can achieve in this subject is to understand the link between a 'theoretical' process and data description and a real-world system in an e-business environment, focussing on production, logistics, and cost accounting. This knowledge is deepened by an extensive case study, which confronts students with the implementation problem mentioned above.

Teaching and learning strategies

A variety of teaching and experimental learning methods and strategies are applied, including teamwork, discussions, and, above all, hands-on experience with an ERP-system (SAP ERP).

Students are required to use the SAP ERP systems outside normal class hours. They have to work on a collaborative case study project, in order to gain the ability to apply their knowledge in a problem-oriented, process-driven, integrated systems environment.

Content

Sales logistics and management of integrated business processes:

Processes in sales: sales order management, price determination, customer management (credit limit, customer-specific discounts, etc.), accounting integration;
Processes in procurement: Back order processing, MRP, purchasing, production execution and control, inventory management;
Billing

Building blocks in logistics:

Implementation of the organizational structure, materials master and material planning, product structure (BOM), work centres, capacity controls, and routings

Building blocks and procedures in cost accounting:

Basic mater data, cost objects, cost planning, cost allocation methods, integration of cost accounting and logistics, product costing

o SOP, demand management and MRP:

Deriving sales projections and primary requirements, demand management and strategies, MRP, planned production orders and purchase requisitions, linking MRP to accounting

Procurement logistics, supply chain monitoring and accounting:

Master data in external procurement, information records, processing the purchase requisitions produced by the MRP run and deriving purchase orders; delivery and invoices for the items ordered

Production execution and (cost) control:

Entering and checking production orders, lot splitting/summarizing, capacity planning and smoothing; process-oriented customizing with respect to scheduling, availability check, calculation schemes, and order execution/conformation, cost variance analysis

Assessment

Mid-term exam (Individual)	20%
Assesses mainly the conceptual component of the first part of the subject, covering primarily objectives 1 and 4.
Case study assignment (Group)	30%
Assesses mainly the application component of the subject, covering primarily objectives 5 to 7, as well as their integration with the other objectives.
Final exam (Individual)	50%
Assesses the conceptual component of the second part of the subject and the integration with the application component, therefore covering all objectives

Recommended text(s)

Wieder, B. (2008): Business Process Integration with SAP ERP, 2nd edition, Auxilia, Sydney

SAP-Online Help: help.sap.com

Indicative references

Hammer. M. and Champy. J. (1993). Reengineering the Corporation: A Manifesto for Business Revolution. Harper Business. New York.

Kale, V. (2000), Implementing SAP R/3: The Guide for Business and Technology Managers, Sams Publishing, Indiana, ISBN: 0-672-31776-1

Scheer, A.W. (1998). Business Process Engineering. Reference Models for Industrial Enterprises, 3. Ed., Berlin et al. 1998 (Study Edition).

Wieder, B (2003), Accounting and ERP – Integrated Event-Accounting with SAP™ R/3, Tekniks Publ., Sydney.