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Plus Two Computer Application Notes Chapter 10 Enterprise Resource Planning-ERP Question and Answers
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Computer Application Notes Chapter 10 Enterprise Resource Planning-ERP |
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Question 1.
______is a group of people and other resources working together for a common goal.
Answer:
An enterprise
Question 2.
ERP stands for_______.
Answer:
Enterprise Resource Planning
Question 3.
The 4 M’s related to resources are
Answer:
Man, Material, Money, and Machine.
Question 4.
_____consists of single database and a collection of programs to handle the database hence handle the enterprise efficiently and hence enhance productivity.
Answer:
ERP
Question 5.
state True or False
An ERP package consists of only one module
Answer:
False. It consists of many modules.
Question 6.
_____module is the core of ERP package
Answer:
Financial
Question 7.
ERP stands for_____.
(a) Entertain Resource Package
(b) Enterprise Retain Plan
(c) Enterprise Resource Planning
(d) None of these
Answer:
(c) Enterprise Resource Planning
Question 8.
_____module of ERP contains rules to manage production process.
Answer:
Manufacturing Module
Question 9.
_____module of ERP contains rules to plan the production process.
Answer:
Production Planning Module
Question 10.
_____module of ERP focus on human resource and human capital.
Answer:
HR module
Question 11.
______module of ERP is used to get the raw materials in the right time and right price.
Answer:
Purchasing Module
Question 12.
______module of ERP is used for monitoring and tracking customer oriented activities.
Answer:
Marketing Module
Question 13.
______module of ERP deals with important parts of sales cycle.
Answer:
Sales and distribution module
Question 14.
______module of ERP is used for managing the quality.
Answer:
Quality management module
Question 15.
BPR stands for ______.
Answer:
Business Process Re-engineering (BPR)
Question 16.
In general_____is the series of activities such as rethinking and redesign of the business process to enhance the enterprise’s performance such as reducing the cost (expenses), improve the quality, prompt and speed (time bound) service.
Answer:
BPR (Business Process Re-engineering)
Question 17.
Odd one out
(a) Inputs
(b) Processing
(c) Outcome
(d) SAP
Answer:
(d) SAP is an ERP package the others are 3 elements of business process.
Question 18.
Odd one out
(a) Oracle
(b) SAP
(c) Odoo
(d) C++
Answer:
(d) C++ is a general purpose programming language. The others are ERP packages.
Question 19.
Odd one out
(а) html
(b) C++
(c) JavaScript
(d) Tally ERP
Answer:
(d) Tally ERP is a ERP package.
Question 20.
From the following select the open source ERP.
(a) Microsoft Dynamics
(b) Tally ERP
(c) Odoo
(d) SAP
Answer:
(c) Odoo
Question 21.
Odd one out. Give the reason.
(a) Microsoft Dynamics
(b) Tally ERP
(c) Odoo
(d) SAP
Answer:
(c) Odoo is an open source ERP. The others are not.
Question 22.
PLM stands for_____.
Answer:
Product Life cycle Management
Question 23.
CRM stands for______.
Answer:
Customer Relationship Management
Question 24.
MIS stands for______.
Answer:
Management Information System
Question 25.
SCM stands for______.
Answer:
Supply Chain Management
Question 26.
DSS stands for_____.
(a) Decision Signal System
(b) Decision Support System
(c) Decision Support Scheme
(d) Design Support System
Answer:
(b) Decision Support System
Question 27.
Pick the odd one out and justify.
(a) SAP
(b) Oracle
(c) C++
(d) Tally
Answer:
(c) C++. This is a programming Language. The others are ERP packages
Question 28.
SAP stands for______.
Answer:
Systems, Applications, and Products for data processing
Question 29.
Pick the odd one out from the following list and justify the selection.
CRM, MIS, SCM, SAP
Answer:
SAP others are ERP related technologies. SAP is an ERP package.
Question 30.
Consider the following two statements.
Statement 1: “The number of functional modules in an ERP vary with nature of enterprise” Statement 2: “There is no connection between BPR and ERP”
Then choose the correct one from the following.
(i) Both statements are true
(ii) Both statements are false
(iii) Statement 1 is true and statement 2 is false
(iv) Statement 1 is false and statement 2 is true
Answer:
(iii) Statement 1 is true and Statement 2 is false.
Question 31.
Choose the correct answer from the following: Implementation of ERP in an enterprise ______.
(a) minimize planning risks.
(b) integrates different functional units of an enterprise.
(c) uses a centralized database.
(d) All the above.
Answer:
(d) All the above.
Question 32.
State True or False
- Every ERP package can manage all the functional units of an enterprise.
- In ERP, a centralized database is used for integrating functional units.
Answer:
- False
- True
Question 33.
ERP stands for_____.
(a) Enterprise Resource Project
(b) Enterprise Resource Processing
(c) Enterprise Resource Planning
(d) Enterprise Requirement Planning
Answer:
(c) Enterprise Resource Planning
Plus Two Computer Application Enterprise Resource Planning Two Mark Questions and Answers
Question 1.
Define an Enterprise.
Answer:
An Enterprise is a group of people and other resources working together for a common goal. It is also an example for System.
Question 2.
Define Enterprise Resource Planning ERP.
Answer:
An enterprise(organization) is considered as a system (A system is an orderly grouping of interdependent components linked together to achieve an objective, according to a plan. Human body is an example for System).
All the departments of an enterprise are connected to a centralized database. ERP consists of a single database and a collection of programs to handle the database hence handle the enterprise efficiently and hence enhance productivity.
Question 3.
Give the significance of HR module in an ERP package.
Answer:
This model ensures the effective use of Human resources and Human capital and enhance the productivity of the Enterprise hence increase the profit.
Question 4.
Give the relation between business process reengineering (BPR) and enterprise resource planning.
Answer:
ERP and BPR will not make much change if they are in stand-alone. To improve the efficiency of an enterprise integrate both ERP and BPR because they are the two sides of a coin.
For better results conducting BPR before implementing ERP, will help an enterprise to avoid unnecessary modules from the software.
Question 5.
“The key concept of ERP is a centralised database management system”. Justify.
Answer:
ERP is an integrated business management system which uses a single database to store and communicate information of various departments of an enterprise.
Question 6.
Match the following.
| (i) Financial module | (a) Supply chain |
| (ii) Oracle | (b) Functional unit of ERP |
| (iii) BPR | (c) ERP package |
| (iv) SCM | (d) Reengineering |
Answer:
(i) – (b), (ii) – (c), (iii) – (d), (iv) – (a)
Question 7.
Briefly explain the importance of Business Process Re-engineering (BPR) in the implementation of ERP in an enterprise.
Answer:
Business Process Reengineering: In general BPR is the series of activities such as rethinking and redesign of the business process to enhance the enterprise’s performance such as reducing the cost(expenses), improve the quality, prompt and speed(time bound) service.
Plus Two Computer Application Enterprise Resource Planning Three Mark Questions and Answers
Question 1.
Write short notes about BPR.
Answer:
In this world, tight competition is based on price, quality, wide variety of selection and quick service. To increase the business and hence increase the profit of a Business firm various activities are involved.
IT and Re-engineering plays major roles to increase productivity. In general BPR is the series of activities such as rethinking and redesign of the business process to enhance the enterprise’s performance such as reducing the cost(expenses), improve the quality, prompt and speed(time bound) service. BPR enhances the productivity and profit of an enterprise.
Question 2.
Give an example for an enterprise from your real life and identify different departments/functional units in it.
Answer:
Indian Oil Corporation is an example for an enterprise. The activities involved are planning, purchasing raw material, production, storing finished goods (warehouse), sales, finance, etc. These activities are performed by different departments and their duties are interlinked.
Question 3.
The first five phases of ERP implementation are listed below. Rearrange them in correct order.
Package selection, BPR, Gap analysis, pre evaluation screening, project planning.
Answer:
The correct order is as follows
- Pre evaluation screening
- Package selection
- Project planning
- Gap analysis
- Business Process Reengineering
Question 4.
Write a short note about the following terms:
- DSS
- MIS
Answer:
1. Decision Support System (DSS):
It is a computer based system that takes inputs as business data and after processing it produces good decisions as output that will make the business easier. Management Information.
System (MIS):
Management is the decision and policy makers. A good management can take good decision and that will help to do the business well. The good relationship between Management and employees is a key to success.
MIS will collect relevant data from inside and outside of a company. Based upon this information produce reports and take appropriate decisions.
Plus Two Computer Application Enterprise Resource Planning Five Mark Questions and Answers
Question 1.
Explain functional units of ERP in detail.
Answer:
Different modules are given below:
1. Financial Module:
It is the core. This is used to generate financial report such as balance sheet, general ledger, trial balance, financial statement, etc.
2. Manufacturing Module:
It provides information for the production and capable to change the methods in manufacturing sector.
3. Production planning Module:
This module ensures the effective use of resources and helps the enterprise to enhance the productive hence increase the profit.
4. HR (Human Resource) Module:
This model ensures the effective use of Human resources and Human capital.
5. Inventory control Module:
This model is useful to maintain the appropriate level of stock(includes raw material, work in progress and finished goods)
6. Purchasing Module:
This module is useful to make available the required raw materials in good condition and in the right time and price.
7. Marketing Module:
It is used for handle the orders of customers.
8. Sales and distribution Module:
Existence of a company is based on the income from sales. This module will help to handle the sales enquiries, order placement, and scheduling, dispatching and invoicing.
9. Quality (Ql & QC) management module:
Quality of a product or service is very much important to a company. This module helps to maintain the quality of the product. Quality planning, inspection, and control are the main activities involved in this module.
Question 2.
Explain the different phases of ERP implementation.
Answer:
The different phases of ERP implementation are given below
1. Pre evaluation screening:
Many ERP packages are available in the markets. At most care should be taken before implementing a ERP. Select a few from from the available ERP packages.
2. Package selection:
Selection of right ERP to our enterprise is a laborious task and it needs huge investment. Various factors should be keep in mind before you purchase an ERP that should meet our complete needs.
3. Project planning:
A good planning is essential to implement an ERP. From the beginning to the end activities are depicted in this phase.
4. Gap analysis:
A cent percent(100%) problem solving ERP is not available in the market. Most of them solve a maximum of 70% to 80% problems. The rest (30% to 20%) of the problems and their solutions are mentioned here.
5. Business Process Reengineering:
In general BPR is the series of activities such as rethinking and redesign of the business process to enhance the enterprise’s performance such as reducing the cost(expences), improve the quality, prompt and speed(time bound) service. BPR enhances the productivity and profit of an enterprise.
6. Installation and configuration:
In this phase the new system are installing, before implementing the whole system a miniature of the actual system is going to be implemented as a test dose. Then check the reactions if it is good it is the time to install the whole system completely.
7. Implementation team training:
In this phase the company trains its employees to implement and run the system.
8. Testing:
This phase is very important. It determines whether the system produces proper result. Errors in design and logic are identified.
9. Going live:
Here a change over is taken place to new system from old system. It is not an easy process without the support and service from the ERP vendors.
10. End user training:
This phase will start familiarising the users with the procedures to be used in the new system. It is very important.
11. Post implementation:
Once the system is implemented maintenance and review begin. In this phase repairing or correcting previously ill-defined problems and upgrade or adjust the performance according to the company needs.
Question 3.
Write short notes regarding ERP package Companies.
Answer:
Popular ERP packages are given below
1. Oracle:
American based company famous in database(Oracle 9i-SQL) packages situated in Redwood shores, California. Their ERP packages is a solution for finance and accounting problems. Their other products are
- Customer Relationship Management(CRM)
- Supply Chain Management (SCM)Software SAP
2. SAP:
stands for Systems, Applications, and Products for data processing. It is a German MNC in Walldorf and founded in 1972. Earlier they developed ERP packages for large MNC. But nowadays they developed for small scale industries also.
The other software products they developed are
- Customer Relationship Management(CRM)
- Supply Chain Management(SCM)
- Product Life cycle Management(PLM)
3. Odoo:
Formerly known as OpenERP.
It is an open source code ERP. Unlike other companies their source code is available and can be modified as and when need arises.
4. Microsoft Dynamics:
- American MNC in Redmond, Washington
- ERP for midsized companies.
- This ERP is more user friendly
- Other s/w is Customer Relationship Management(CRM)
5. Tally ERP:
- Indian company situated in Bangalore.
- This ERP provides total solution for accounting, inventory, and Payroll.
Question 4.
Explain the merits and demerits of ERP packages.
Answer:
ERP packages have a lot of advantages as well as many drawbacks also.
Benefits of ERP system:
1. Improved resource utilization:
Resources such as Men, Money, Material, and Machine are utilized maximum hence increase the productivity and profit.
2. Better customer satisfaction:
Without spending more money and time all the customer’s needs are considered well. Because customer is the king of the market. Nowadays a customer can track the status of an order by using the docket number through Internet.
3. Provides accurate information:
Right information at the right time will help the company to plan and manage the future cunningly. Acompany can increase or reduce the production based upon the right information hence increase the productivity and profit.
4. Decision making capability:
Right information at the right time will help the company to take good decision.
5. Increased flexibility:
A good ERP will help the company to adopt good things as well as avoid bad things rapidly. It denotes the flexibility.
6. Information integrity: A good ERP integrates various departments into a single unit. Hence reduce the redundancy, inconsistency, etc.
Risks of ERP implementation:
1. High cost:
Very huge investment is required to purchase and configure an ERP. Moreover, it requires up gradation or. replacement of hardware(Man, computer or machine) is an additional investment. So small scale enterprise cannot afford this.
2. Time consuming:
The full fledge implementation of ERP package needs one or two years. That is highly time consuming.
3. Requirement of additional trained staff:
The existing staffs may not capable to work with ERP. To overcome this give proper training to them otherwise appoint trained and experienced employees to Cop up.
4. Operational and maintenance issues:
The first major problem is that the resistance from the existing employees. To overcome this give awareness to the existing employees. The second problem is that ERP package is a cyclic process oriented package. It is a continuous process and should be maintained well otherwise the correct output will not available.
Question 5.
Explain in detail the ERP packages and related technologies.
Answer:
It is an all in one system. It integrates various functions such as raw material purchase, production planning, marketing, financial, etc., into a single application.
1. Product Life Cycle Management (PLM):
It manages the entire life cycle of a product. PLM consists of programs to increase the quality and reduce the price by the efficient use of resources.
2. Customer Relationship Management (CRM):
As we know that customer is the king of the market. The existence of a company mainly the customers. CRM consists of programs to enhance the customer’s relationship with the company.
3. Management Information System (MIS):
Management is the decision and policy makers. A good management can take good decision and that will help to do the business well. The good relationship between Management and employees is a key to success. MIS will collect relevant data from inside and outside of a company. Based upon this information produce reports and take appropriate decisions.
4. Supply Chain Management (SCM):
This is deals with moving raw materials from suppliers to the company as well as finished goods from company to customers. The activities includes are inventory(raw materials, work in progress and finished goods) management, warehouse management, transportation management, etc.
5. Decision Support System (DSS):
It is a computer based system that takes inputs as business data and after processing it produces good decisions as output that will make the business easier.
Question 6.
“The number and functioning of modules vary with the nature of enterprise and the type of ERP package.” List any six common modules of an enterprise.
Answer:
Different modules are given below
1. Financial Module:
It is the core. This is used to generate financial report such as balance sheet, general ledger, trial balance, financial statement, etc.
2. Manufacturing Module:
It provides information for the production and capable to change the methods in manufacturing sector.
3. Production planning Module:
This module ensures the effective use of resources and helps the enterprise to enhance the productive hence increase the profit.
4. HR (Human Resource) Module:
This model ensures the effective use of Human resources and Human capital.
5. Inventory control Module:
This model is useful to maintain the appropriate level of stock(includes raw material, work in progress and finished goods)
6. Purchasing Module:
This module is useful to make available the required raw materials in good condition and in the right time and price.
7. Marketing Module:
It is used for handle the orders of customers.
8. Sales and distribution Module:
Existence of a company is based on the income from sales. This module will help to handle the sales enquiries, order placement, and scheduling, dispatching and invoicing.
9. Quality (Ql & QC) management module:
Quality of a product or service is very much important to a company. This module helps to maintain the quality of the product. Quality planning, inspection, and control are the main activities involved in this module.
Question 7.
Mr. Suresh uses separate software for managing different functional units of an enterprise and Mr. Saleem uses an integrated software package formanaging overall functioning of the enterprise. Compare the benefits and risks of above two methods of an enterprise management.
Answer:
Benefits of ERP system:
1. Improved resource utilization:
Resources such as Men, Money, Material, and Machine are utilized maximum hence increase the productivity and profit.
2. Better customer satisfaction:
Without spending more money and time all the customer’s needs are considered well. Because customer is the king of the market. Nowadays a customer can track the status of an order by using the docket number through Internet.
3. Provides accurate information:
Right information at the right time will help the company to plan and manage the future cunningly. A company can increase or reduce the production based upon the right information hence increase the productivity and profit.
4. Decision making/apability:
Right information at the right time will help the company to take good decision.
5. Increased flexibility:
A good ERP will help the company to adopt good things as well as avoid bad things rapidly. It denotes the flexibility.
6. Information integrity:
A good ERP integrates various departments into a single unit. Hence reduce the redundancy, inconsistency, etc.
Risks of ERP implementation:
1. High cost:
Very huge investment is required to purchase and configure an ERP. Moreover, it requires up gradation or replacement of hardware(Man, computer or machine) is an additional investment. So small scale enterprise cannot afford this.
2. Time-consuming:
The full-fledge implementation of ERP package needs one or two years. That is highly time consuming.
3. Requirement of additional trained staff:
The existing staffs may not capable to work with ERP. To overcome this give proper training to them otherwise appoint trained and experienced employees to cop up.
4. Operational and maintenance issues:
The first major problem is that the resistance from the existing employees. To overcome this give awareness to the existing employees. The second problem is that ERP package is a cyclic process-oriented package. It is a continuous process and should be maintained well otherwise the correct output will not available.
Question 8.
“Implementation of an ERP system in an enterprise is not a single step action”. Justify this statement by listing all the phases of ERP implementation in correct order.
Answer:
The different phases of ERP implementation are given below:
1. Pre evaluation screening:
Many ERP packages are available in the marketfs. At most care should be taken before implementing a ERP. Select a few from from the available ERP packages.
2. Package selection:
Selection of right ERP to our enterprise is a laborious task and it needs huge investment. Various factors should be keep in mind before you purchase an ERP that should meet our complete needs.
3. Project planning:
A good planning is essential to implement an ERP. From the beginning to the end activities are depicted in this phase.
4. Gap analysis:
A cent percents 00%) problem solving ERP is not available in the market. Most of them solve a maximum of 70% to 80% problems. The rest (30% to 20%) of the problems and their solutions are mentioned here.
5. Business Process Reengineering:
In general BPR is the series of activities such as rethinking and redesign of the business process to enhance the enterprise’s performance such as reducing the cost(expences), improve the quality, prompt and speed(time bound) service.
BPR enhances the productivity and profit of an enterprise:
1. Installation and configuration:
In this phase the new system are installing, before implementing the whole system a miniature of the actual system is going to be implemented as a test dose. Then check the reactions if it is good it is the time to install the whole system completely.
2. Implementation team training:
In this phase the company trains its employees to implement and run the system.
3. Testing:
This phase is very important. It determines whether the system produces proper result. Errors in design and logic are identified.
4. Going live:
Here a change over is taken place to new system from old system. It is not an easy process without the support and service from the ERP vendors.
5. End user training:
This phase will start familiarising the users with the procedures to be used in the new system. It is very important.
6. Post implementation:
Once the system is implemented maintenance and review begin. In this phase repairing or correcting previously ill defined problems and upgrade or adjust the performance according to the company needs.
Question 9.
“Selection of ERP package is one of the important phases of ERP implementation”.
Write a short note about any of the ERP packages.
Answer:
Popular ERP packages are given below:
1. Oracle:
American based company famous in database (Oracle 9i-SQL) packages situated in Redwood shores, California. Their ERP packages is a solution for finance and accounting problems. Their other products are
- Customer Relationship Management(CRM)
- Supply Chain Management (SCM)Software
2. SAP:
SAP stands for Systems, Applications, and Products for data processing. It is a German MNC in Walldorf and founded in 1972. Earlier they developed ERP packages for large MNC. But nowadays they developed for small scale industries also.
The other software products they developed are
- Customer Relationship Management(CRM)
- Supply Chain Management(SCM)
- Product Life cycle Management(PLM)
3. Odoo:
Formerly known as OpenERP.
It is an open source code ERP. Unlike other companies their source code is available and can be modified as and when need arises.
4. Microsoft Dynamics:
- American MNC in Redmond, Washington
- ERP for midsized companies.
- This ERP is more user friendly
- Other s/w is Customer Relationship Management(CRM)
5. Tally ERP:
- Indian company situated in Bangalore.
- This ERP provides total solution for accounting, inventory, and Payroll.
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