As CEO of

WaterSprayMarine,

RylanWestbrook

knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When IDG Consulting proposes that

WaterSprayMarine

invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant.A month later, management accountant

Matt

Cullen

reports that the team and IDG estimate that if

WaterSprayMarine

implements the ERP system, it will incur the following costs:

Costs of the Projecta.

$360,000

in software costsb.

$83,000

to customize the ERP software and load

WaterSpray's

data into the new ERP systemc.

$150,000

for employee training

Benefits of the Project

a.	More efficient order processing should lead to savings of $200,000.
b.	Streamlining the manufacturing process so that it maps into the ERP system will create savings of $280,000.
c.	Integrating purchasing, production, marketing, and distribution into a single system will allow WaterSprayMarine to reduce inventories, saving $255,000.
d.	Higher customer satisfaction should increase sales, which, in turn, should increase profits by $185,000.