it705 erp marks
TRANSCRIPT
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THE INDIAN ENGINEERING COLLEGE
VADAKKANGULAM
DEPARTMENT OF INFORMATION TECHNOLOGY
2 MARKS QUESTIONS & ANSWERS
IT705 ENTERPRISE RESOURCE PLANNING
Year/ Sem: IV/VII ra!"#: IT
Pre$are% ': ()UMADEVI* AP/IT
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IT705 Enterprise Resource Planning
UNIT I INTRODUCTION
1. Define ERP.
Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the
integrated management of businesses as a whole from the viewpoint of the effective of management
resources to improve the efficiency of an enterprise.
!. "hat is an Enterprise#
$n enterprise is a group of people with a common goal which has certain resources at its
disposal to achieve that goal. "hen used generically an enterprise is defined as the aggregate of all
functional elements participating in a business process improvement action regardless of the
organi%ational structure housing those functional elements. &t is a complete business consisting of
functions divisions or other components used to accomplish specific ob'ectives and defined goals.
. "hat are the main misconceptions about ERP#
irst is that ERP is a computer system. Even though computers and &* are integral parts of an
ERP system ERP is primarily an enterprise+wide system which encompasses corporate
mission ob'ectives attitudes beliefs values operating style and people who ma,e the
organi%ation.
-econd is ERP is for manufacturing organi%ations alone. *his assumption is basically due to
the way in which ERP was historically developed from the methods of aterial
Requirements Planning (RP) and anufacturing Resource Planning (RP &&) which are
relevant to manufacturing organi%ations. RP became the fundamental concept in 1/0s. $t
this stage 23 (2ill of materials) was the prevailing trend. &t further got unfolded as ERP &&
and now it has resulted in ERP which is the concept of enterprise+wide planning of resources
and is not limited to any particular segment of the industry.
4. "hat are ERP pac,ages#
ERP pac,ages are integrated (covering all business functions) software pac,ages that support
the ERP concepts. ERP software is designed to model and automate many of the basic processes of a
company from finance to the shop floor with the goal of integrating information across the company and
eliminating comple5 e5pensive lin,s between computer systems that were never meant to each other.
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6. "ho are the main players in the ERP mar,et#
-$P $7 People-oft 3racle 2aan 8D Edwards 9$D Ramco &- Data"or,s etc.
:. "hen do the ERP system;s set of generic processes produce dramatic improvements#
ERP software is a mirror image of the ma'or business processes of an organi%ation such as
customer order fulfillment and manufacturing. &ts success depends upon reach < a circumscribed ERP
system isn;t much better than the legacy system it replaces. ERP system;s set of generic processes
produce the dramatic improvements they are capable of only when used to connect parts of an
organi%ation and integrate its various processes seamlessly.
0. "hat are the reasons for the e5plosive growth of the ERP mar,et#
*hey enable improved business performance by achieving= cycle+time reduction increased
business agility inventory reduction order fulfillment improvement etc.
*hey support business growth requirements.
ERP systems provide fle5ible integrated real time decision support.
ERP pac,ages can now be afforded by even small and medium si%ed businesses and offers
increased functionality at a reasonable cost.
*hey help companies in supporting new products and new customers by meeting their global
requirements including multiple languages and currencies.
>. "hat are the direct benefits of ERP systems#
2usiness &ntegration
le5ibility
2etter analysis and planning capabilities
?se of latest technology
/. "hy is it said that ERP systems are fle5ible#
Different languages accounting standards can be covered in one system and functions that
comprehensively manage multiple locations of a company can be pac,aged and can be implemented
automatically. *o cope with company globali%ation and system unification this fle5ibility is essential.
1. "hat is cycle time#
@ycle time is the time between receipt of the order and delivery of the product.
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11. "hat is 2usiness &ntegration and how do the ERP systems achieve it#
*he reason why ERP pac,ages are referred as being integrated is the automatic data updation
(automatic data e5change among applications) that ta,es place between related business components.
-ince conventional company information systems were aimed at the optimi%ation of independent business
functions in business unite almost all were wea, in terms of communication and integration of
information that transcended in different business functions. &n case of ERP pac,ages the data of related
business functions is also automatically updated at the time a transaction occurs. or 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.
1!. "hat are the factors that are critical for the success of the ERP implementation#
-election of the right pac,age
@ommitment of top management
Participation and dedication of the system;s future users
2ac,ing support and cooperation of the &-A&* personnel
Development of interfaces with current operational systems and with those under
development
Effort of consultants who have respect for the company;s ,now+how and wor, culture
-pirit and collaboration on the part of all
1. Bow do conventional application pac,ages and ERP pac,ages differ#
irst ERP pac,ages cannot have only individual business functions such as accounts and
inventory but also the entire range of main business functions necessary for the company;s
operations
-econd ERP pac,ages are targeted at everything from small businesses to the largest
organi%ations and that they can be composed of a highly fle5ible decentrali%ed database and
an information system cluster lin,ed by a networ,
*hird is global adaptation represented by ERP pac,ages; multilingual and multi+currency
capacity.
14. "hat are the limitations of ERP#
anagers cannot generate custom reports or queries without help from a programmer and this
inhibits then from obtaining information quic,ly so that they can act on it for competitive
advantage
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ERP systems provide current status only such as open orders. anagers often need to loo,
past the current status to find trends and patterns that aid better decision+ma,ing
*he data in the ERP application is not integrated with other enterprise or division systems
and does not include e5ternal intelligence
16. "hat is 2PR#
2PR or 2usiness Process Reengineering is the fundamental rethin,ing and radical redesign of
business processes to achieve dramatic improvements in critical contemporary measures of performance
such as cost quality service and speed.
1:. "hat is &-#
&- or anagement &nformation -ystem is a computer based system that optimi%es the
collection collation transfer and presentation of information throughout an organi%ation through an
integrated structure of databases and information flow.
10. "hat are the main characteristics of &-#
&- supports the data processing functions of transaction handling and record ,eeping
&- uses an integrated database and supports a variety of functional areas
&- provides operational tactical an d strategic levels of the organi%ation with timely
information
&- is fle5ible and can be adapted to changing needs of an organi%ation
1>. "hat is D--#
D-- or Decision -upport -ystem is an information and planning system that provides the
ability to interrogate computers on an ad+hoc basis analy%e information and predict the impact of
decisions before they are made. $ D-- is a cohesive and integrated set programs that share data and
information.
1/. "hat is E&-#
E&- or E5ecutive &nformation -ystem is an information system that consolidates and
summaries the ongoing transactions within an organi%ation. &t should provide management with all the
information it requires at all times from internal as well as e5ternal sources. $ successful E&- is easy to
use fle5ible and customi%able.
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!. "hat is 3C$P#
3C$P or 3n+Cine $nalytical Processing is a decision support software that allows the user to
quic,ly analy%e information that has been summari%ed into multidimensional views and hierarchies.
*hese multidimensional views are supported by multidimensional database technology and provide the
technical basis for the calculations and analysis required by 2usiness &ntelligence applications.
UNIT II ERP IMPLEMENTATION
1. "hat are the different phases of ERP implementation#
Pre+evaluation screening
Pac,age evaluation
Pro'ect planning phase
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7ap analysis
Reengineering
@onfiguration
&mplementation team training
*esting
7oing live
End user training
Post+implementation
!. "hat is gap analysis#
7ap analysis is the most crucial phase for the success of the ERP implementation. &t 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. *he tric, is to design a model which anticipates and covers any functional gaps. &t is
true that even the best ERP pac,age custom tailored to a company;s needs meets only > of the
company;s functional requirements.
. "hat are the general four phases of an ERP implementation#
?nderstanding the problem
Defining solutions
7etting down to wor,
7oing live
4. 7ive the hidden costs in ERP implementation#
*raining
&ntegration and testing
Data conversion
Data analysis
ERP consultants
6. -tate the main members of an implementation team.
E5ecutive committee
Pro'ect management team
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"or, team
*echnical support team
$dministrative support team
:. "hat are the s,ills the people who implement the ERP should possess#
nowledge of how to organi%e and run a pro'ect of this magnitude
Enough e5perience in handling problems and issues that arise during the implementation
7ood people s,ills and e5cellent training s,ills
7ood leadership s,ills
0. "ho are vendors and give their role#
Fendors are people who have invested huge amounts of time and effort in research and
development to create pac,aged (ERP) solutions. irst and foremost the vendor should supply the
product and its documentation as soon as the contract is signed. Ge5t the vendor should impart training to
its clients;.
>. "ho are business consultants and specify their role#
2usiness consultants are professionals who speciali%e in developing techniques and
methodologies for dealing with the implementation and with the various problems that will crop up
during the implementation. @onsultants should guarantee the success of the pro'ect and should be able to
satisfy the company management with its needs. *hey should add value to the pro'ect.
/. -tate some ,ey points of the contract with the vendor which should be addressed.
Falue of the software and conditions of payment
Cist of deliverables (software documents etc.)
@ost of implementation training
@ost of end+user training
$nnual maintenance fee
"arranty or guarantee terms
1. -tate some ,ey points of the contract with the consultant which should be addressed.
Profile of the consultants; team with the resume of each member
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@onsulting fee and payment details
&mplementation methodology
*ime schedule and the implementation budget
*erms and conditions of ,nowledge transfer and employee training
Cist of deliverables (reports manuals ,nowledge bases etc)
Pro'ect monitoring and status reporting systems
11. "hat is a data warehouse#
$ data warehouse is a database designed to support decision+ma,ing in an organi%ation. &t is
updated batch+wise and is structured for fast online queries and summaries for managers. Data
warehouses can contain enormous amounts of data.
1!. "hat is data mining#
Data mining is the process of identifying valid novel potentially useful and ultimately
comprehensible ,nowledge from databases that is used to ma,e crucial business decisions.
1. "hat is supply chain#
$ supply chain is a networ, of facilities and distribution options that performs the functions of
procurement of materials transformation of these materials into intermediate an finished products and
the distribution of these finished products to customers.
14. "hat is -@#
-@ or -upply @hain anagement is a generic term that encompasses the coordination of order
generation order ta,ing and offer fulfillmentAdistribution of products services or information.
16. "hy is the pre+evaluation screening required#*here are hundreds of vendors claiming a solution that is ideal for your company. $naly%ing
these pac,ages though a time+consuming process would give a viable solution needed.
1:. Define action plan.
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$ document used to guide the implementation of business process improvements. &t contains tac,
assignments schedules resource allocations assignments and evaluation criteria.
10. "hat is an activity#
$ named process function or tas, that occurs over time and has recogni%able results. $ctivities
use up assigned resources to produce products and services. $ctivities combine to form business
processes.
1>. Define 23$.
23$ or 2ill of $ctivity is the listing of activities involved in the production of a certain output
together with the number of times each component activity is performed.
1/. "hat is 23#
23 or 2ill of aterials is a list of direct materials required to manufacture a given product or
provide a given service.
!. "ho are 2PR professionals#
2PR professionals are individuals necessary for a 2usiness Process Reengineering effort. ive
distinct s,ill areas have been identified as being essential to the tas,. *hey are= functional e5perts
strategic planners data and process modelers cost analysis and unctional $ctivity @oordinators ($@).
UNIT III U!INE!! MODULE!
1. Define business.
2usiness 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.
!. "hat are the three resources of business#
Cand labour and capital
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. -tate the various business modules in ERP system.
Buman resources
inance
anufacturing
Plant maintenance
-ales H distribution
aterials management
9uality management
Production planning
4. -tate the finance modules in most ERP systems.
inancial accounting
&nvestment management
@ontrolling
*reasury
Enterprise controlling
6. "rite about financial accounting.
&t provides company wide control and integration of financial information that is essential to
strategic decision ma,ing. &t gives the ability to centrally trac, financial accounting data within an
international framewor, of multiple companies languages currencies and charts of accounts.
:. "hat is 7eneral ledger#
7eneral ledger is essential both to the financial accounting system and to strategic decision
ma,ing. &t provides document par,ing posting reporting and an integrated financial calendar for
automating periodic activities.
0. "hat is asset accounting and legal consolidation#
$sset accounting manages the company;s fi5ed assets whereas legal consolidation permits direct
data transfer from individual statements into the consolidated report.
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1. "hat are the main modules of aterials anagement module#
Pre+purchasing activities
Purchasing
Fendor evaluation
&nventory management
&nvoice verification and material inspection
14. -tate the sub activities in pre+purchasing.
Requirements calculation
Requisition for quotations
Fendor ratings
9uotation evaluation
Fendor selection
@ontracts
16. "hat is meant by @$9 and @&9#
@$7 means @omputer $ided 9uality management and @&9 means @omputer &ntegrated
9uality management.
1:. -tate the functions of quality management module.
9uality planning
9uality inspection
9uality control
10. 7ive some sales related business transactions.
-ales queries such as inquiries and quotations
-ales orders
3utline agreements such as contracts and scheduling agreements
Delivery A shipment
&nvoicing A billing
$fter sales support
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1>. "hat are the basic functions in sales order processing#
&nquiry handling
9uotation preparation and quotation
@ontracts and contract management (order management)
onitoring the sales transactions
@hec,ing for availability
*ransferring requirements to materials planning (RP)
-cheduling the delivery
@alculating pricing and ta5es
@hec,ing credit limits
&nvoicing A billing
@reating printed or electronically transmitted documents
1/. "hat are the subsystems in a sales and distribution module#
aster data management
3rder management
"arehouse management
-hipping
2illing
Pricing
-ales support
*ransportation
oreign trade
!. -tate the components of a warehouse management application.
&nventory planning
&nventory handling
&ntelligent location assignment
&nventory reporting
&nventory analysis
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Cot control
Distribution data collection
UNIT I" T#E ERP MAR$ET
1% "ho are the main players in the ERP mar,et#
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-$P $7 People-oft 3racle 2aan 8D Edwards 9$D Ramco &- Data"or,s etc.
!. "hat is -$P#
-$P means -ystems $pplications and Products in Data Processing.
. -tate the versions of -$P;s ERP pac,age.
ainframe version (-$P RA!)
@lientAserver version
4. "hat are the three different layers of -$P RA#
Database layer
$pplication layer
Presentation layer
6. -tate about the three layers of -$P RA.
Database layer < resides on central severs or mainframe host computers
$pplication layer < holds the processing logic of the system preparing and formatting data
for individual offices or departments
Presentation layer < handles all the tas,s related to the presentation of data including user
interfaces that enable easy access to comple5 applications and data
:. "hat are the general RA modules#
inancial accounting
*reasury
@ontrolling
Enterprise controlling
&nvestment management
Production planning
aterials management
Plant maintenance and service management
9uality management
Pro'ect system
-ales and distribution
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Buman resources management
0. "rite about -$P;s business engineer#
2usiness engineer delivers a complete tool,it that greatly facilitates the implementation of RA
and the engineering of your business processes. &t ensures quic, and high quality customi%ation of RA.
>. -tate some areas of business management solutions provided by People-oft.
BR management
$ccounting and control
*reasury management
Performance management
Pro'ect management
-ales and logistics
aterials management
-upply chain planning
-ervice revenue management
Procurement
/. "hat are four strategies incorporated by People-oft implementation tool,it#
7eographical
Departmental
@ore and support process
Go phasing
1. "hat is 2aanDE-E#
2$$G < Dynamic Enterprise odeling -trategy E5ecution
11. "hat are the ERP modules of 2aanERP#
anufacturing module
inance module
Pro'ect module
Distribution module
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1!. "hat is the I*BREE &J philosophy#
&ntegrity
&nnovation
&nitiative
1. 7ive some categories of 3racle software applications.
3racle inancials
3racle Buman Resources
3racle Pro'ects
3racle anufacturing
3racle -upply @hain
3racle ront 3ffice
14. "hat is the flagship product of 9$D#
7APR3
16. "hat is --$#
--$ means -ystem -oftware $ssociates
1:. "hat are the si5 ,ey goals of --$#
2est client satisfaction
-ingle image worldwide
Enterprise solutions leadership
Proven leading technology
Bighly s,illed and motivated professionals
-trong financial results
10. "hat is lead time#
*he elapsed time between placing an order and receiving it is ,nown as the lead time.
1>. "hat is E5tended ERP#
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E5tended ERP is a set of enterprise modeling tools for effective implementation. &t is a concept
promoted by 2aan for rapid fle5ible and quality implementation of ERP systems.
1/. "hat is product fle5ibility#
Product fle5ibility is the ability of the operation to efficiently produce highly customi%ed and
unique products.
!. "ho is the leader in the ERP mar,et and what are its products#
-$P $7 is the mar,et leader and its ERP products are -$P RA! for the mainframe environment
and -$P RA for the clientAserver environment.
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UNIT " ERP &PRE!ENT AND 'UTURE(
1. "hat does 2&- allow#
@ustomer service
anufacturing and purchase
-ales
!. "hat are the general traditional business processes#
ulfillment
Payment
Procurement
Replenishment
. -tate the steps in retail fulfillment process.
&nitiate order
Ferify identity or payment
$rrange drop shipment
$c,nowledge order
*rac, order status
4. -tate the steps in corporate procurement process.
&nitiate requisition
Ferify item data
*ransmit purchase order
@onfirm receipt
*rac, purchase status
6. -tate the steps in inventory replenishment process.
&tem reorder limit reached
Purchase order approved
&tem shipped
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&tem received
Payment received
:. "hat is the use of -E*#
-ecure Electronic *ransaction (-E*) protocol addresses the vulnerability in -ecure -oc,et Cayer
(--C) by providing an encrypted channel between the customer and the ban,.
0. -tate some ERP vendors and their products.
-$P $7 + RA
3racle @orporation + 3racle $pplications
8D Edwards "orld -olutions @o. + 3ne"orld
People-oft &nc. + People-oft
2aan @o. + 2aan &F
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IT705 Enterprise Resource Planning &)* Mar+s(
UNIT I INTRODUCTION
1. "hat is ERP# 7ive an overview.
ERP
Reasons for growth of ERP mar,et
$dvantages
Problem areas
uture of ERP pac,ages
!. "hat is an Enterprise# 7ive an overview.
Enterprise
&ntegrated management information
Role of enterprise
2usiness modeling
&ntegrated data model
. "hat are the benefits of ERP#
Reduction of lead time
3n+time shipment
Reduction in cycle time
2etter customer satisfaction
&mproved supplier performance
&ncreased fle5ibility
Reduction in quality costs
&mproved resource utility
&mproved information accuracy and decision ma,ing capability
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4. "rite about the related technologies of ERP#
2PR
Data mining
3C$P
-@
6. "hat are the phases of 2PR#
2egin organi%ational change
2uilding the reengineering organi%ation
&dentifying 2PR opportunities
?nderstanding the e5isting process
Reengineering the process
2lueprint of the Gew 2usiness -ystem
Perform the transformation
UNIT II ERP IMPLEMENTATION
1. "hat are the different phases of ERP implementation#
Pre+evaluation screening
Pac,age evaluation
Pro'ect planning phase
7ap analysis
Reengineering
@onfiguration
&mplementation team training
*esting
7oing live
End user training
Post+implementation
!. "hat are the general four phases of an ERP implementation#
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?nderstanding the problem
Defining solutions
7etting down to wor,
7oing live
. 7ive the hidden costs in ERP implementation#
*raining
&ntegration and testing
Data conversion
Data analysis
ERP consultants
4. -tate the main members of an implementation team.
E5ecutive committee
Pro'ect management team
"or, team
*echnical support team
$dministrative support team
6. -tate some ,ey points of the contract with the vendor which should be addressed.
Falue of the software and conditions of payment
Cist of deliverables (software documents etc.)
@ost of implementation training
@ost of end+user training
$nnual maintenance fee
"arranty or guarantee terms
UNIT III U!INE!! MODULE!
1. -tate the various business modules in ERP system.
Buman resources
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inance
anufacturing
Plant maintenance
-ales H distribution
aterials management
9uality management
Production planning
!. -tate the finance modules in most ERP systems.
inancial accounting
&nvestment management
@ontrolling
*reasury
Enterprise controlling
. -tate some ma'or subsystems of manufacturing module.
aterial and capacity planning
-hop floor control
9uality management
8&* A Repetitive manufacturing
@ost management
*ooling
4. "hat are the basic functions in sales order processing#
&nquiry handling
9uotation preparation and quotation
@ontracts and contract management (order management)
onitoring the sales transactions
@hec,ing for availability
*ransferring requirements to materials planning (RP)
-cheduling the delivery
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@alculating pricing and ta5es
@hec,ing credit limits
&nvoicing A billing
@reating printed or electronically transmitted documents
6. "hat are the main modules of aterials anagement module#
Pre+purchasing activities
Purchasing
Fendor evaluation
&nventory management
&nvoice verification and material inspection
UNIT I" T#E ERP MAR$ET
1. "hat are the general RA modules#
inancial accounting
*reasury
@ontrolling
Enterprise controlling
&nvestment management
Production planning
aterials management
Plant maintenance and service management
9uality management
Pro'ect system
-ales and distribution
Buman resources management
!. -tate some areas of business management solutions provided by People-oft.
BR management
$ccounting and control
*reasury management
Performance management
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Pro'ect management
-ales and logistics
aterials management
-upply chain planning
-ervice revenue management
Procurement
. "hat are the ERP modules of 2aanERP#
anufacturing module
inance module
Pro'ect module
Distribution module
4. 7ive some categories of 3racle software applications.
3racle inancials
3racle Buman Resources
3racle Pro'ects
3racle anufacturing
3racle -upply @hain
3racle ront 3ffice
6. "hat are the si5 ,ey goals of --$#
2est client satisfaction
-ingle image worldwide
Enterprise solutions leadership
Proven leading technology
Bighly s,illed and motivated professionals
-trong financial results
UNIT " ERP &PRE!ENT AND 'UTURE(
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1. "hat are the general traditional business processes#
ulfillment
Payment
Procurement
Replenishment
!. -tate the steps in retail fulfillment process.
&nitiate order
Ferify identity or payment
$rrange drop shipment
$c,nowledge order
*rac, order status
. -tate the steps in corporate procurement process.
&nitiate requisition
Ferify item data
*ransmit purchase order
@onfirm receipt
*rac, purchase status
4. -tate the steps in inventory replenishment process.
&tem reorder limit reached
Purchase order approved
&tem shipped
&tem received
Payment received
6. -tate some ,ey points of the contract with the consultant which should be addressed.
Profile of the consultants; team with the resume of each member
@onsulting fee and payment details
&mplementation methodology
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*ime schedule and the implementation budget
*erms and conditions of ,nowledge transfer and employee training
Cist of deliverables (reports manuals ,nowledge bases etc)
Pro'ect monitoring and status reporting systems