ERP-2 marks

Enterprise Resource Planning

2 & 16 Mark Mark Questions Questions and Answer Answers s

Subject Name

: Ente Enterrprise Re Resou source

Planning Subject code

:

Academic year : 2011-2012 Semester Batch

: IX : 2007-2012

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Enterprise Resource Planning UNIT I – INTRODUCTION Possible Two Mark Questions 1. Define ERP. Enterp Enterpris rise e Resou Resource rce Plannin Planning g (ERP) (ERP) covers covers the techniq technique ues s and concep concepts ts empl employ oyed ed for for the the integ integra rated ted mana manage geme ment nt of busi busine ness sses es as a whol whole, e, from from the the viewpoint of the effective of management resources, to improve the efficiency of an enterprise.

2. What is an Enterprise? An enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve that goal. When used generically, an enterprise is defined as the aggregate of all functional elements participating in a business process improv improveme ement nt action action,, regard regardles less s of the organi organizat zation ional al structu structure re housin housing g those those functional elements. It is a complete business consisting of functions, divisions or other components used to accomplish specific objectives and defined goals.

3. What are the main ma in misconceptions about ERP? •

First is that ERP is a computer system. Even though computers and IT

are integral parts of an ERP system, ERP is primarily an enterprise-wide system system,, which which encomp encompass asses es corpor corporate ate missio mission, n, object objective ives, s, attitud attitudes, es, beliefs, values, operating style and people who make the t he organization. •

Second is ERP is for manufacturing organizations alone. This assumption

is basically due to the t he way in which ERP was historically developed from the methods methods of Materi Material al Requir Requireme ements nts Plannin Planning g (MRP) (MRP) and Manufa Manufactu cturin ring g Reso Resou urce rce

Plan Plann ning ing

(MRP (MRP

II) II)

whic which h

are are

rele releva van nt

to

man manufact factu urin ring

organizations. MRP became the fundamental concept in 1970s. At this stage BOM (Bill of materials) was the prevailing trend. It further got unfolded as ERP II and now it has resulted in ERP, which is the concept of enterprisewide planning of resources and is not limited to any particular segment of
















4. What are ERP packages? ERP ERP pack packag ages es are are inte integr grat ated ed

(cov (cover erin ing g all all busi busine ness ss func functi tion ons) s) soft softwa ware re

packages that support the ERP concepts. ERP software is designed to model and automate many of the basic processes of a company, from finance to the shop floor, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems that were never meant to each other.

5. Who are the main players in the ERP market? SAP AG, PeopleSoft, Oracle, Baan, JD Edwards, QAD, Ramco, IFS, DataWorks etc.

6. When do the the ERP syst system em’s ’s set set of gen generi eric pro process cesses es pro produce duce dram ramatic atic improvements? ERP ERP softw softwar are e is a mirro mirrorr imag image e of the the major major busi busine ness ss proc proces esse ses s of an organi organizat zation ion,, such such as custom customer er order order fulfil fulfillmen lmentt and manufa manufactu cturin ring. g. Its succes success s depends upon reach – a circumscribed ERP system isn’t much better than the legacy system system it replace replaces. s. ERP system system’s ’s set of generi generic c proces processes ses produce produce the dramat dramatic ic impr improv ovem emen ents ts they they are are capa capabl ble e of, of, only only when when used used to conn connec ectt part parts s of an organization and integrate its various var ious processes seamlessly.

7. What are the reasons re asons for the explosive growth of the ERP market? •

They enable enable improved improved business business performanc performance e by achieving: achieving: cycle-time cycle-time

reduction, increased business agility, inventory reduction, order fulfillment improvement etc. •

They suppo support rt busines business s growth growth requirement requirements. s.

•

ERP systems provide flexible, integrated, real time decision support.

•

ERP packages can now be afforded by even small and medium sized

businesses and offers increased functionality at a reasonable cost.
















•

They help help companies companies in support supporting ing new new products products and new new customers customers by

meetin meeting g their their global global require requiremen ments, ts, includ including ing multip multiple le langua languages ges and currencies.

8. What are the direct benefits of ERP systems? •

Business Integration

•

Flexibility

•

Better analysis and planning capabilities

•

Use of latest technology 9. Why is it said that ERP systems are flexible? Different languages, accounting standards can be covered in one system, and functions that comprehensively manage multiple locations of a company can be pack packag aged ed and and

can can

be impl implem emen ente ted d

auto automa mati tica call lly. y. To cope cope with with comp compan any y

globalization and system unification, this flexibility is essential.

10. What is cycle time? Cycle time is the time between receipt of the order and delivery of the product.

11. What is Business Integration and how do the ERP systems achieve it? The reason why ERP packages packages are referred referred as being integrated integrated is the automatic data updation (automatic data exchange among applications) that takes plac place e

betw betwee een n

rela relate ted d

busi busine ness ss

comp compon onen ents ts..

Sinc Since e

conv conven enti tion onal al

comp compan any y

info inform rmat atio ion n syst system ems s were were aime aimed d at the the optim optimiz izati ation on of inde indepe pend nden entt busin busines ess s functions in business unite, almost all were weak in terms of communication and integration of information that transcended in different business functions. In case of ERP packages, the data of related business functions is also automatically updated at the time a transaction occurs. For this reason, one is able to grasp business details in real time, and carry out various types of management decisions in a timely manner, based on that information.
















•

Selection of the right package

•

Commitment of top management

•

Participation and dedication of the system’s future users

•

Backing, support and cooperation of the IS/IT personnel

•

Development of interfaces with current operational systems and with

those under development •

Effort of consultants, who have respect for the company’s know-how and

work culture •

Spirit and collaboration on the part of all

13. How do conventional application packages and ERP packages differ? •

First, ERP packages cannot have only individual business functions such

as accoun accounts ts and inventor inventory, y, but also the entire entire range of main main busine business ss functions necessary for the company’s operations •

Second, ERP packages are targeted at everything from small businesses

to the largest largest organizatio organizations, ns, and and that they can be composed composed of of a highly flexible decentralized database and an information system cluster linked by a network •

Third, is global global adaptation, adaptation, represente represented d by ERP packages’ packages’ multilingua multilinguall

and multi-currency capacity.

14. What are the limitations of ERP? •

Managers cannot generate custom reports or queries without help from

a programmer and this inhibits then from obtaining information quickly, so that they can act on it for competitive advantage •

ERP systems provide current status only, such as open orders. Managers M anagers

often need to look past the current status, to find trends and patterns that aid better decision-making
















15. What is BPR? BPR or Business Process Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.

16. What is MIS? MIS or Management Information System is a computer based system that optim optimiz izes es the the

colle collect ctio ion, n, coll collat atio ion, n, tran transf sfer er and and

pres presen enta tati tion on of info inform rmati ation on

throug throughou houtt an organi organizat zation ion throug through h an integr integrated ated struct structur ure e of databas databases es and information flow.

17. What are the main characteristics of MIS? MI S? •

MIS supports the data processing functions of transaction handling and

record keeping •

MIS uses an integrated database and supports a variety of functional

areas •

MIS MIS prov provid ides es oper operat atio iona nal, l, tact tactic ical al an d

stra strate tegi gic c leve levels ls of the the

organization with timely information •

MIS is flexible and can be adapted to changing needs of an organization

18. What is DSS? DSS or Decision Support System is an information and planning system that provides the ability to interrogate computers on an ad-hoc basis, analyze information and predict the impact of decisions before they are made. A DSS is a cohesive and integrated set programs that share data and information. 19..Define Data mining. It refers to extracting or “mining” knowledge from large amount of data.


















20.Give some alternative terms for data mining. •

Knowledge mining

•

Knowledge extraction

•

Data/pattern analysis.

•

Data Archaeology

•

Data dredging

21. What are the other areas a reas for Data warehousing and data mining? •

Agriculture

•

Rural development

•

Health

•

Planning

•

Education

•

Commerce and Trade

22. Specify some of the sectors in which data warehousing and data mining are used? •

Tourism

•

Program Implementation

•

Revenue

•

Economic Affairs

•

Audit and Accounts

23.Give some data mining tools. •

DBMiner
















internal as well as external sources. A successful EIS is easy to use, flexible and customizable.

25. What is OLAP? OLAP or On-Line On-Line Analytical Analytical Processing Processing is decision decision support software that allows allows the user user to quickl quickly y analyz analyze e inform informati ation on that that has been been summar summarize ized d into into multidimensional views and hierarchies. These multidimensional views are supported by multidimensional database technology and provide the technical basis for the calculations and analysis required by Business Intelligence applications.

Possible 16 Mark Questions

1. What is ERP? Give an overview. (PNo 3-22) 2. What is an Enterprise? Give an a n overview. (PNo 3-22) 3. What are the benefits of ERP? (PNo 23-36) 4. Write about the related relate d technologies of ERP? (PNo 37-43)
















10. Write the benefits of ERP and related technologies used in it. (PNo 37-43) 37-4 3)

UNIT II – ERP IMPLEMENTATION Possible Two Mark Questions 1. What are the different phases of ERP implementation? •

Pre-evaluation screening

•

Package evaluation

•

Project planning phase

•

Gap analysis
















2. What is gap analysis? Gap Gap anal analys ysis is is the the most most cru crucial cial phas phase e for for the the su succ cces ess s of the the ERP implementation. It is the process through which companies create a model of where they are now, an din which direction they want to head in the future. The trick is to design a model which anticipates and covers any functional gaps. It is true that even the best ERP package, custom tailored to a company’s needs, meets only 80% of the company’s functional requirements.

3. What are the general four phases p hases of an ERP implementation? •

Understanding the problem

•

Defining solutions

•

Getting down to work

•

Going live

4. Give the hidden costs in i n ERP implementation? •

Training Training

•

Integration and testing

•

Data conversion

•

Data analysis

•

ERP consultants

5. State the main ma in members of an implementation team. •

Executive committee
















•

Enough experience in handling problems and issues that arise during

the implementation •

Good people skills and excellent training trai ning skills

•

Good leadership skills

7. Who are vendors and give their role? Vendors are people who have invested huge amounts of time and effort in research and development to create packaged (ERP) solutions. First and foremost, the vendor should supply the product and its documentation as soon as the contract is signed. Next the vendor should impart training t raining to its clients’.

8. Who are business consultants and specify their role? Business consultants are professionals who specialize in developing techniques and and meth method odol olog ogie ies s for for deali dealing ng with with the the imple impleme ment ntat atio ion n and and with with the the vari variou ous s problems that will crop up during the implementation. Consultants should guarantee the success of the project and should be able to satisfy the company management with its needs. They should add value to t o the project.

9. State some key points of the contract with the vendor, which should be addressed. •

Value of the software and conditions of payment

•

List of deliverables (software, documents etc.)

•

Cost of implementation training


















•

Implementation methodology

•

Time schedu schedule le and and the implementati implementation on budget budget

•

Terms and conditions conditions of knowled knowledge ge transf transfer er and and employee employee training training

•

List of deliverables (reports, manuals, knowledge bases etc)

•

Project monitoring and status reporting systems

11.What is the role of vendor? Vendors are the people who developed the ERP Packages.Vendor will be to prov provid ide e supp suppor ortt to the the proj projec ectt mana manage ger, r,ad advi vise se upon upon and and agre agree e to the the proj projec ectt plan,manage the client account and coordinate vendor provided resources.

12. What is a data warehouse? A data warehouse is a database designed to support decision-making in an organization. It is updated batch-wise and is structured for fast online queries and summaries for managers. Data warehouses can contain enormous amounts of data.

13. What is data mining?
















16. Why is the pre-evaluation screening required? There are hundreds hundreds of vendors vendors claiming claiming a solution solution that is ideal for your company. Analyzing these packages, though a time-consuming process would give a viable solution needed.

17. Define action plan. A

docu docume men nt

used sed

to guid guide e

the the

impl implem emen enta tati tion on of busi busin ness ess

proc proces ess s

improv improveme ements nts.. It contain contains s tack assignm assignmen ents, ts, schedu schedules les,, resou resource rce alloca allocatio tions, ns, assignments and evaluation criteria. 18.Whats the work of project management team? This team includes includes the head head of the vendor vendor represen representative tatives,the s,the chief chief consultan consultantt and and the the work work team team lead leader ers. s.Th The e work work team teams s carr carry y out out the the vari variou ous s task tasks s for for implementing the system.

19. What is an activity? A named process, function or task that occurs over time and has recognizable
















to the task. task. They They are: are: functio functional nal experts, experts, strategi strategic c plann planners ers,, data data and proces process s modelers, cost analysis and Functional Activity Act ivity Coordinators (FAC). 23. What are the most critical phases of ERP Life cycle? •

Adoption decision

•

Acquisition

•

Implementation

•

Use and Maintenance

•

Evolution

•

Retirement

24.Mention the areas that are most likely li kely to result in budget overruns. •

Training Training

•

Customization

•

Integration and Testing

•

Data Conversion

•

Data Analysis

•

Consultants
















•

Protects the team from external e xternal pressures

Possible 16 Mark Questions

1. What are the different phases of ERP implementation? (PNo 108-117) 2. What are the general four phases p hases of an ERP implementation? (PNo 118-121) 3. Give the hidden costs in i n ERP implementation? (PNo 129-132) 4. State the main ma in members of an implementation team. 5. State some key points of the contract with the vendor, which should be addressed. (PNo 149-153) 6. Discuss briefly about the implementation of ERP Life Li fe cycle. (PNo 108-117) 7. What is the role of vendor’s project manager? Explain (PNo 149-153) 8. How the contracts with vendor, consultants and employees will be working? (PNo 149-153)
















Business can be defined as the activities of individuals or groups that are involved in developing, producing and distributing the goods and services needed to satisfy other peoples’ needs.

2. What are the three t hree resources of business? Land, labour and capital 3. State the various va rious business modules in ERP system. •

Human resources

•

Finance

•

Manufacturing

•

Plant maintenance

•

Sales & distribution

•

Materials management

•

Quality management

•

Production planning


















General ledger is essential both to the financial accounting system and to strategic decision making. It provides document parking, posting, reporting and an integrated financial calendar for automating periodic activities.

7. What is asset accounting and legal consolidation? Asse As sett acco accoun untin ting g mana manage ges s the the comp compan any’s y’s fixed fixed asse assets ts,, wher wherea eas s lega legall consol consolida idatio tion n permits permits direct direct data data transfe transfer, r, from from indivi individua duall statem statemen ents ts into into the consolidated report.

8. What is cost centre accounting? a ccounting?
















•

•

Time manag management ement Personnel management

12. What are the various subsystems of a plant maintenance module? •

Preventive maintenance control

•

Equipment tracking

•

Component tracking

•

Plant maintenance calibration tracking

•

Plant maintenance warranty claims tracking
















•

Quality inspection

•

Quality control 17. Give some sales related business transactions. •

Sales queries, such as inquiries i nquiries and quotations

•

Sales orders

•

Outline agreements, such as contracts and scheduling agreements

•

Delivery / shipment

•

Invoicing / billing

•

After sales support
















•

•

•

Sales support Transporta Transportation tion Foreign trade 20. State the components of a warehouse management application. application.

•

Inventory planning

•

Inventory handling

•

Intelligent location assignment

•

Inventory reporting

•

Inventory analysis Lot control
















•

•

•

Inputs Transforma Transformation tion Output

25. What are all the t he materials management activities? •

Repurchasing activities

•

Purchasing

•

Vendor management

•

Inventory management Invoice verification and material inspection


















10. Write short notes on a) Materials Management (PNo 204-210) b) Quality Management (PNo 211-213)
















•

Controlling

•

Enterprise controlling

•

Investment management
















•

Departmental

•

Core and support process

•

No phasing
















•

Best client satisfaction

•

Single image worldwide

•

Enterprise solutions leadership
















•

R/3 Application modules

•

Distributed Applications

•

R/3 and the Internet

























































































ERP-2 marks

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