QUESTION PAPER WITH ANSWERS : ENTERPRISE RESOURCE PLANNING (ERP)-2021
QUESTION PAPER WITH ANSWERS :
ENTERPRISE RESOURCE PLANNING (ERP)-2021
Total 75 marks
SECTION – A
Multiple choice question (25x1=25 Marks)
1.information is a
A. Unprocessed data
B. Processed data
C. Facts
D. None of the above
ANS-B. Processed data
2. Which is not a typical business function?
A. Sales
B. Service
C. Manufacturing
D. Benefits and Compensation
ANS- D. Benefits and Compensation
3. If a university sets up a web-based information system that faculty could access to
record student grades and to advise students, that would be an example of a/an
A. CRM
B. Intranet
C. ERP
D. Extranet
ANS-B. Intranet
4. Information systems that monitor the elementary activities and transactions of the organization are
A. Management level system
B. Operational level system
C. Knowledge level system
D. Strategic level system
ANS-B. Operational level system
5. Internal information for MIS may come from any one of the following department
A. Customer care department
B. HR department
C. Market marketing department
D. Production department
ANS- A. Customer care department
6. Which of the following allows individual ERP system to communicate with each
other?
A. Global ERP
B. Web integrated ERP
C. Web integrated MRP
D. EMRP
7. Which of the following is a technology of an ERP system
A. Supply Chain Management
B. Business Process Reengineering
C. Data mining
D. All the above
ANS-D. All the above
8. Which is a function of ERP?
A. Warehousing
B. Sales
C. Scheduling
D. All of the above
ANS-D. All of the above
9. Identify the reasons for the explosive growth of the ERP market.
A. They support business growth requirements
B. ERP systems provide flexible, integrated, real time decision support.
C. ERP packages can now be afforded by even small and medium sized businesses
and offers increased functionality at a reasonable cost.
D. All the above
ANS-D. All the above
10.Identify the limitations of ERP?
A. Managers cannot generate custom reports or queries without help from a
programmer and this inhibits then from obtaining information quickly.
B.ERP systems provide current status only, such as open orders.
C. The data in the ERP application is not integrated with other enterprise or
division systems and does not include external intelligence
D. All the above
11. Which one of the following option doesn't belong to ERP Technologies?
A. Data warehousing
B. Business process reengineering
C. Data mining
D. Manufacturing resource planning
ANS- D. Manufacturing resource planning
12. ____________is one of the benefits of supply chain management.
A. Easy process
B. Minimum time
C. Manufacturing makes -to- make stock products
D. Faster response- to -market changes
ANS- D. Faster response- to -market changes
13. EIS stands for
A. Executive Interaction System
B. Executive Interconnecting Systems
C. Executive Information Systems
D. Executive Instrumental Systems
ANS- C. Executive Information Systems
14. Which of the following is not a myth about ERP
A. ERP means work and procedures
B. ERP make’s many employees redundant
C. ERP Integrate and automate organization processes
D. ERP is the sole responsibility of management
ANS-C. ERP Integrate and automate organization processes
15. ________________ is the first phase in BPR
A. Begin organisational change
B. Identifying BPR opportunities
C. Reengineering the process
D. Blueprint the new business system
ANS- A. Begin organisational change
16. _____________________ departments use OLAP for applications such as budgeting,
activity-based costing and so on
A. Financial
B. Marketing
C. Purchasing
D. Sales
ANS- A. Financial
17. The flow of information to MIS is
A. Need dependent
B. Organisation dependent
C. Information dependent
D. Management dependent
ANS- A. Need dependent
18. What is at the heart of any ERP system?
A. Information
B. Employees
C. Customers
D. Database
ANS-D. Database
19. Which one of the following is a success factor of ERP system?
A. Project Planning
B. Architectural design
C. Phased approach
D. All of the above
ANS-D. All of the above
20. Which is the correct sequence?
A. Wisdom- Knowledge - Information - Data
B. Wisdom- Information – Knowledge - Data
C. Data - Information - Knowledge - Wisdom
D. Data - Information – Wisdom- Knowledge
21. The _________ should plan well and execute perfectly the implementation of ERP.
A. Organisation
B. System developers
C. Vendors
D. Top Management
ANS-B. System developers
22. Which is one of the most critical steps in the ERP implementation?
a. Creation of Organisational Model
b. Creation of Integrated Data Model
c. Creation of Business Model
d. Creation of Data Model
ANS-b. Creation of Integrated Data Model
23. Who are the primary users of SCM systems?
A. Sales, marketing, customer service
B. Accounting, finance, logistics, and production
C. Customers, resellers, partners, suppliers, and distributors
D. All of the above
ANS-C. Customers, resellers, partners, suppliers, and distributors
24. Which of the following describes an ERP system?
A. ERP systems provide a foundation for collaboration between departments
B. ERP systems enable people in different business areas to communicate
C. ERP systems have been widely adopted in large organisations to store critical
knowledge used to make the decisions that drive the organisation's performance
D. All of the above
ANS-D. All of the above
25. Business Process is
A. The company’s strategy
B. The efficiency of process execution
C. The end -to-end series of events for interacting with customers
D. None of the above
ANS-A. The company’s strategy
SECTION B
Answer any five of the following Questions (5x10=50 Marks)
26. Explain the components of Information System.
1. Computer Hardware:
Physical equipment used for input, output and processing. The hardware structure depends upon the type and size of the organization. It consists of an input and an output device, operating system, processor, and media devices. This also includes computer peripheral devices.
2. Computer Software:
The programs/ application program used to control and coordinate the hardware components. It is used for analyzing and processing of the data. These programs include a set of instruction used for processing information.
Software is further classified into 3 types:
System Software
Application Software
Procedures
3. Databases:
Data are the raw facts and figures that are unorganized that are and later processed to generate information. Software's are used for organizing and serving data to the user, managing physical storage of media and virtual resources. As the hardware can’t work without software the same as software needs data for processing. Data are managed using Database management system.
Database software is used for efficient access for required data, and to manage knowledge bases.
4. Network:
Networks resources refer to the telecommunication networks like the intranet, extranet and the internet.
These resources facilitate the flow of information in the organization.
Networks consists of both the physicals devices such as networks cards, routers, hubs and cables and software such as operating systems, web servers, data servers and application servers.
Telecommunications networks consist of computers, communications processors, and other devices interconnected by communications media and controlled by software.
Networks include communication media, and Network Support.
5. Human Resources:
It is associated with the manpower required to run and manage the system. People are the end user of the information system, end-user use information produced for their own purpose, the main purpose of the information system is to benefit the end user. The end user can be accountants, engineers, salespersons, customers, clerks, or managers etc. People are also responsible to develop and operate information systems. They include systems analysts, computer operators, programmers, and other clerical IS personnel, and managerial techniques.
27. Describe the reasons for the growth of ERP market.
Since 1970, ERP is growing every year which you can find ERP history report. Growing rate of ERP in the market is 30% every year. There are many reasons behind this whose list, I am given below.
1.Good Inventory Control
In any ERP package, you will find the inventory control system. With inventory control system, you can add and raw data of raw material, work in process and finished goods in the database from anywhere. On basis of this database you can find, you can track the information of inventory availability. It is possible because ERP records are directly link with the records of all purchasing, beginning and closing stock.
2. Produce the Products Fastly
In ERP, both production department and sales department are inter-connected. So, when production department tracks the demand from sale department, it can fastly produce the products without any delay. It will reduce the production cost because correct and fast information will help to keep small produced stock and less invests money in stock.
3. New Product Development
When developer sees all the information together, they get more idea to create new product development. For example, recently, I saw in YouTube analytics, comparison of one video in two countries. When this option will see the YouTube video maker, he can take the development of new video for specific location. YouTube analytics are also developing the developers. ERP is also online software when they will develop its update, it will be helpful for businessman and working team to develop new product which increase the profit and decrease the losses.
4. Support of Multiple Languages and Currencies
ERP systems support multiple languages and currencies. So, more and more employees in different branches can work together because they can understand database language through better translation support. Better multiple currencies support will be helpful to do international business. When ERP software has started to give the multiple currencies support, then it can be helpful to calculate net gain from all the branches which are working in different countries whose currency is different. For example, SBI has its branches in almost all the countries. It uses bank link for managing the business in different countries in different languages and different currencies.
5. Vertical Market Solution
Before understanding the usages of ERP in vertical market solution, we should understand what is vertical market? As per Wikipedia,
A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs. It is distinguished from a horizontal market, in which vendors offer a broad range of goods and services to a large group of customers with wide range of needs, such as businesses as a whole, men, women, households, or, in the broadest horizontal market, everyone.
Now, you have understood what is vertical market? Software developer can develop as per the need of vendor. Bank Vendor Company’s requirement will be different from automotive vendor. Telecommunication vendor’s requirement for managing his business will be different from transportation Vendor Company’s requirement.
28. What is the Executive Information Systems? Highlights its limitations
EIS is commonly considered as a specific form of Decision Support Systems (DSS) as it helps in the information gathering and decision-making process of senior executives in a company and meeting the strategic goals of the organisation. This is ensured by easy access of internal as well as external data.
Disadvantages of Executive Information System:
Its functions are limited, as it cannot perform complex calculations.
It is difficult to quantify the advantages and justify its implementation.
Information overload is encountered by executives.
Systems are prone to become slow, large and hard to manage.
Keeping recent data is tough.
Leads to less reliable and insecure data.
Huge cost of implementation encountered by small scale organisations.
29. Elaborate Business Process Re-engineering
Business process reengineering (BPR) helps organizations reimagine their existing processes and redesign them to achieve extraordinary results.BPR allows companies to redesign their processes by enabling cross-functional teams to work together to determine areas of improvement and ways to optimize them for maximum value. In addition, it allows companies to make better decisions through better data dissemination which, as a result, ensures the organization is able to make sound improvements to their customer service. If done correctly, organizations will be able to deploy optimized business processes at a significantly faster rate and reduce costs by getting rid of activities that are unproductive and don’t bring value.
Clarity of Purpose - With the exception of a few high-profile processes that execute in line of business applications and a few compliance-related ones, most organizations cannot describe and have not documented their processes from end-to-end. The first step of any successful BPR implementation is to have a solid grasp on the current state of your business processes to ensure you are automating the right things - if that is your desired output - while reducing risk for future costly mistakes.
Simplified and Streamlined Operation - At the end of this entire project, the business is left with a streamlined operation that has cut out superfluous processes (or unnecessary steps in a process) that used to slow things down. By doing this, efforts become more directed towards organizational objectives, employees have a clear path to take, and customers will be much happier with the service they receive.
Increased Efficiency - By eliminating redundancy in your operations and tweaking processes, things will move through the process more easily and faster, greatly increasing overall efficiency.
Better Results and Products - Greater efficiency and focused goals enable you and your employees to put more energy towards building relationships with your customers through streamlined, digitized processes. In addition, by building better lines of communicating between cross-functional teams, information is passed through the channels faster, making your business more resilient to market changes.
Maximized ROI - All of the above benefits together help maximize the ROI on your process improvement investment.
30. Explain the ERP selection methods.
1. Define your ERP requirements
The first step in the ERP selection process is to outline the challenges you face as a company that you want this new system to help you overcome. Pull together resources that help define your company, such as product specs, process flows, and high-level data maps. Also, gather data such as the size of your organization, volume of activities and transactions, business processes, unique requirements, as well as features you like and don’t like about your current system(s). You can categorize requirements as:
The description and nuances of your business and high-level or unique process flows
What your current system does well for you
What it does not do that you would like it to do
What else you want the new system to do (ranked by importance)
It’s important to really nail down what is essential to your organization to help prospective ERP vendors understand your business needs now and for the future. However, avoid long lists of specific requirements and detailed processes, rather focus on things that are unique to your business and requirements that will provide your business with a competitive edge.
2. Creating the ERP RFP
When looking at ERP providers, notice their ranking and reviews to see how other companies have rated them. Choose 12 or fewer vendors whose products look like they may be a good fit for your organization. Send out requests for proposals (RFPs) with a detailed review of your needs as noted above. Ensure everyone on the team has provided input to ensure you have the full scope of your core business requirements. Then determine priorities that are aligned with your main business goals.
ROI analysis is also a prerequisite for authorizing and funding ERP solutions. It will provide an idea about the total investment required for the purchase, implementation, and ongoing support and maintenance of your ERP system. ROI considers the benefits in addition to direct cost savings including improved performance, better customer service, and enhanced workplace productivity, and the resulting top and bottom line impacts of these benefits.
3. First-cut ERP evaluation
Once you have selected the ERP providers you are interested in, gather proposals from each based on your business needs. Eliminate those options that don’t meet your selection criteria. Utilizing a numeric rating scale will help make the decision process easier.
Make sure you treat every potential provider equally and that all people on the team work together to ensure nothing is missed. If reviewers are at odds with their ratings, get to the bottom of why, and work constructively to sort out any adjustments needed.
4. ERP demo comparison and detailed evaluation
Narrow your choice of prospective vendors to three to five finalists and then move to the demo process. Schedule demos with each of the selected vendors and feel free to let them know who they are competing against. Keep control over the demos by providing a list of functions you want to see well in advance of the demo.
The sales professionals and engineers who demonstrate software are very experienced trying to win you over to sell their software. No matter how hard they try to convince you about the software, make sure to objectively focus on the functionality offered.
Ensure you address any concerns you have and take good notes. It’s important to do your due diligence to ensure you understand everything you need to know about the functionality, underlying technology, and performance of the system.
If looking at a cloud based erp system, determine if it is a true, native cloud solution that takes full advantage of this delivery model. Also assess how much each vendor has invested in R&D and product development and innovation to ensure their product continues to meet the needs of today’s and tomorrow’s digital world.
Don’t be afraid to ask questions to ensure you fully understand if the ERP system can fulfill your business needs. Sometimes you will need multiple rounds of demos to look in depth at all of the functionality that is important to the team.
5. Final selection and contract
Final evaluations and a detailed comparison may leave you with two or three ERP options that can meet your business requirements and budget. Let the vendors know where they stand, but don’t close any doors in case negotiations with your top choice does not work out. Work with your top vendor to come to a fair deal and treat them as a partner who is involved in your future success. Remember that having a successful implementation relies on the cooperation and partnership of both parties.
From there you proceed with checking out references and finalizing the contract, hopefully with the vendor of choice that offers the best ERP solution for your particular manufacturing business.
31. State the process involved in ERP implementation
Discovery & Planning
What is the first phase of ERP implementation? This includes researching and selecting a system, setting up a project team and defining detailed system requirements.
The project team will handle a broad range of roles related to the implementation, including laying out the project plan and target dates, ensuring adequate resources are allocated, making product and design decisions, and day-to-day project management.
The ERP project team typically includes an executive sponsor, a project manager and representatives from the departments that will use the system. Involving senior management is critical to ensure the project gets the resources it needs and to provide the backing needed to implement change across the organization. The team also may hire an external consultant or ERP implementation partner to provide expertise in designing and configuring the system. It should also include any internal specialists involved in implementing the system, such as a representative from IT and a report writer who will develop customized reports for users across the organization.
One of the team’s early goals will be to develop a detailed understanding of current issues, including process inefficiencies and requirements for the ERP system. If the organization has previously developed an ERP business case, it may have already defined broad business issues and goals for the implementation, which may include a faster financial close, improved insight into operations or preparing for an IPO. These can be used to direct more detailed analysis, including documentation of existing workflows, and to focus development of the system.
The team may select and acquire an ERP system during this phase, as the organization develops a clear idea of its requirements. One major decision is whether to use an ERP system that runs on-premises or in the cloud. For an on-premises system, you buy and install hardware and software in your organization’s data center. In contrast, cloud-based ERP is generally provided as a subscription service accessed via the internet, so it can be faster to implement and requires fewer in-house IT skills.
2. Design
The design phase works from detailed requirements and an understanding of current workflows to develop a detailed design for the new ERP system. This includes designing new, more efficient workflows and other business processes that take advantage of the system. It’s important to involve users in the design phase, since they have the most intimate understanding of current business processes. Involving them in the design also helps to ensure that they’ll welcome the new system and take full advantage of it.
Gap analysis can be used to identify process intricacies and unique quirks that may require customization of the ERP software or changes to workflow or processes to more closely align with the ERP system itself. The team can present the gaps to its implementation partner or supplier and ask them to identify potential solutions.
3. Development
Armed with clear design requirements, the development phase can begin. This involves configuring and, where necessary, customizing the software to support the redesigned processes. It may also include developing integration with any of the organization’s other existing business applications that won’t be replaced by the ERP system. If you’re using an on-premises ERP system, the organization will need to install the necessary hardware and software.
In parallel with software development, the team should develop training materials to help users adjust to the new system. It also needs to begin planning data migration, which can be complex since it often involves extracting, transforming and loading data from multiple systems, each of which may use different formats and may hold duplicate or inconsistent information. The project team should determine which data to migrate in this phase, avoiding the blanket migration of all historical data, lots of which is likely irrelevant. (See more on data migration below.)
4. Testing
Testing and development may occur concurrently. For example, the project team may test specific modules and features, develop fixes or adjustments based on the results, and retest. Or, it may test one ERP module while another is still in development. Initial testing of the basic functions of the software should be followed by rigorous testing of the full capabilities of the system, including allowing some employees to test the system for all their day-to-day activities. This phase should also encompass testing of the migrated data and include introductory end-user training.
Most vendors can supply pre- and post-deployment tools to begin user training. But in addition to vendor support, the organization should make good use of the training materials created in the development phase. There is real value in resources that specifically cater to your end-users’ day-to-day responsibilities.
5. Deployment
This is what you’ve been striving toward: the day the system goes live. Be prepared for potential issues, since there may be a lot of moving parts and possibly some befuddled employees, despite your best efforts to prepare them for the change. The project team should be readily available to answer questions, help users understand the system and attempt to fix any issues. Your implementation partner should be able to help with troubleshooting if necessary. It may take time for users to adapt to the system and achieve the anticipated productivity gains.
Some data can be migrated ahead of deployment, while other information—such as current transactions—should be migrated immediately before going live.
Some organizations aim to deploy all the modules of the ERP system concurrently, while others focus first on specific high-priority modules or processes and add others later in stages. To minimize risk, some organizations also continue to run older systems in parallel with the new ERP implementation for a time, although this can add to the overall project cost and reduce user productivity.
6. Support & Updates
Nurturing your ERP implementation after deployment helps to keep users happy and ensure the business achieves the desired benefits. The project team may still be responsible for the ERP system during this phase, but its focus will shift to listening for user feedback and adjusting the system accordingly. Some additional development and configuration may be needed as new features are added to the system. New staff will also need to be trained on the system.
If you have an on-premises ERP system, you’ll need to install periodic software updates and may even need to upgrade hardware over time. If you’re using a cloud-based ERP system, your vendor may update the software automatically.
Thank You for visiting! ill be posting many more study materials so check out my other blogs.
Comments
Post a Comment