Ch 15

Factors which adversely affect the implementation of an ERP system do NOT include: A. Cost. B. Complexity. C. Size. D. Scope.

A

Interfaces between modules of ERP systems would be accepted for all of the following EXCEPT: A. Sales and inventory. B. Sales and human resources. C. Sales and accounts receivable. D. Sales and manufacturing.

B

SAP R/3 operates on a: A. Mainframe environment with closed architecture. B. Client-server environment with open architecture. C. Client-server environment with closed architecture. D. Mainframe environment with open architecture.

B

Business process reengineering (BPR): 1. Aligns business processes with IT systems to record processes. 2. Reengineer the underlying processes to be more effective. 3. Improves the efficiency of the underlying process through automation. 4. Requires significant investment in IT resources. 5. Does not have a mutual enhancement effect with IT. A. 1, 2, 3, 4, and 5. B. 1, 3, 4, and 5 only. C. 1, 2, 3, and 5 only. D. 1, 3, and 4 only.

D

ERP implementation: A. Must accomplish a full ERP system implementation. B. May install only selected modules. C. Must be done one module at a time. D. Is a short duration process due to total integration of the software.

B

The term for software solutions that help businesses manage customer relationships in an organized way is: A. Sales and service. B. Customer relationship management. C. Corporate services. D. Human capital resources.

B

Business process reengineering means: A. Configuring the business processes to conform to the functionality of the IT system. B. Configuring the IT system to the business process for best processing speed. C. Matching the IT and business processes to achieve the greatest mutual benefit from each. D. Configuring both IT and business processes to meet the goals of ERP.

C

The two tiers of ERP systems are: A. The internal tier and external tier. B. The vendor & customer tier and the employee tier. C. The large, multinational corporation tier and the midsize business tier. D. The acquisitions tier and the sales tier.

C

When one site is utilized as the pilot approach to ERP, the implementation method is referred to as: A. Big bang implementation. B. Hardware implementation. C. Location-wise implementation. D. Modular implementation.

C

Benefits of an ERP system include all of the following EXCEPT: A. The real-time nature of processing increases the total processing time. B. The interactive nature of the modules allows processes to interact with each other. C. ERP systems have evolved from many years of software experience so the software reflects tried and true practices. D. There is the capability to analyze large amounts of data in a single database.

A

Spending on ERP systems increased or decreased based on several factors. These factors include all of the following EXCEPT: A. Y2K compliance concerns. B. The need for better customer service. C. Multi-national sites of operation. D. Compliance with the Sarbanes-Oxley Act.

A

Critical factors of CRM success include: A. Successful software implementation and effective employee utilization. B. Effective use of the analytics module's data. C. The effective use by employees of the sales and services module's data. D. All of the above, A, B, and C, are correct.

A

ERP tier two software applications include: A. Axapta, Epicor, MAS 500 ERP, Microsoft Dynamics ERP, and Macola ERP. B. Axapta, Epicor, MAS 500 ERP, JD Edwards, and Macola ERP. C. Axapta, Epicor, MAS 500 ERP, Microsoft Access, and Macola ERP. D. Axapta, Epicor, SAP R/1, Microsoft Dynamics ERP, and Macola ERP.

A

Organizational benefits of ERP implementation include all EXCEPT: A. Retaining long-held work patterns and work focus. B. Facilitating organizational learning. C. Building a common vision. D. Increased employee morale and satisfaction

A

Select the correct statement from those provided below. A. MRP II allows interaction between suppliers and their customers via the internet or other electronic means. B. While MRP II provides automatic inventory reordering, it does not allow suppliers to see customer inventory levels. C. MRP II systems preclude e-commerce and e-business transactions due to internal security measures to protect data. D. To increase operational response times, MRP II systems utilize operational databases but not data warehouses.

A

The financials module of an ERP such as SAP would include all of the following components EXCEPT: A. Inventory. B. Financial accounting. C. Management accounting. D. Corporate governance.

A

The purpose of MRP II was to integrate all of the following into a single database EXCEPT: A. Human resources. B. Manufacturing. C. Marketing. D. Finance.

A

As required by Sarbanes-Oxley, enhanced ERP systems provide feedback to management regarding internal controls. To effectively use the function, there are important steps that need to be taken. 1. Establish and maintain a list of compatible duties. 2. Insure that employees are given access and authority only to those parts of the system required. 3. Periodically review the user profile and change any access and authority levels as necessary. 4. Configure the ERP system to track and report any instances where an employee initiated or records any event. 5. Monitoring the periodic reports or real-time reports by the appropriate manager to determine if user profiles have changed. A. 1, 2, 3, 4, 5 B. 2, 3, 5 C. 1, 2, 4, 5 D. 2, 3, 4, 5

B

Best of breed means: A. Picking the best ERP software on the market for the particular type of business or organization. B. Picking the best software on the market for a particular type of business process for this size of an organization. C. Picking the best consulting firm to accomplish implementation of the ERP software. D. Utilizing the most capable employees within the organization work with the implementation of the ERP application.

B

ERP modules include all EXCEPT: A. Financial. B. Operational database. C. Sales and services. D. Product development and manufacturing.

B

If one module in the ERP system fails, A. The rest of the system will operate correctly. B. It has the potential to stop or disrupt all processes across the entire enterprise C. That one module will automatically revert to the legacy system. D. Will result in the entire system reverting to the legacy system.

B

An enterprise resource planning (ERP) system allows a sales representative to provide a customer with all of the following information EXCEPT: A. Is the product in stock? B. What is the price of the product? C. What is the cost of the product? D. When will it be shipped?

C

Business process reengineering means: A. Reconfiguring the ERP system to fit the current methods of the organization. B. Retaining general software applications as legacy systems to reduce training and implementation costs. C. Modifying business processes to take advantage of the capabilities of the ERP system. D. Acquiring additional computer networking resources to effectively handle current business processes.

C

Data conversion will: 1. Require an appropriate amount of time be devoted to the conversion. 2. Be done at a minimal cost. 3. Import data from many legacy systems into a single RDBMS. 4. Require cleansing of errors and configuration inconsistencies. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

C

Management would use the _____________ module for feedback from the ERP system to assist in the proper management and control of operations. A. Financials. B. Corporate services. C. Analytics. D. Human capital management.

C

The analytics module of an ERP system such as SAP would include all of the following EXCEPT: A. Financial analysis B. Strategic enterprise management C. Project portfolio management D. Workforce analysis

C

An enterprise resource planning (ERP) system would: A. Update both accounts receivable and inventory when purchased goods are received from a vendor. B. Update both accounts payable and accounts receivable when inventory purchased from a vendor is received. C. Update both accounts payable and sales when purchased goods are received from a vendor. D. Update both accounts payable and inventory when purchased goods are received from a vendor.

D

Customizing an ERP system: 1. Will tailor the ERP system to the user. 2. May have a prohibitive cost. 3. May hinder future system upgrades. 4. Is recommended wherever possible. A. 1, 2, 3, and 4. B. 1, 2, and 4 only. C. 1, 3, and 4 only. D. 1, 2, and 3 only.

D

Select the true statement from the following: A. The strength of SAP is its human resources capabilities. B. The strength of Peoplesoft is its manufacturing capabilities. C. The strength of SAP is its financial reporting capabilities. D. The strength of Peoplesoft is its human resources capabilities.

D

ERP system benefits include all EXCEPT: A. ERP systems are built to interact with the IT systems of trading partners such as customers and suppliers. B. ERP systems are configured upon implementation to exceed any reasonable business growth in the future. C. The ERP systems incorporate modules to conduct e-commerce and e-business. D. Analytical tools that enable detailed analysis of the data are incorporated into ERP systems.

B

MRP applications are: A. Management resource programs software B. Manufacturing resources planning software C. Management reporting programs software D. Manufacturing reporting programs software

B

Material requirements planning (MRP) software: 1. Calculated raw materials quantities needed for manufacturing. 2. Calculated lead times on raw materials orders. 3. Calculated material needs on accounts payable data. A. 1, 2, and 3. B. 1 and 2 only. C. 2 and 3 only. D. 1 and 3 only.

B

Operation risks with an ERP system includes all of the following EXCEPT: A. Security is a greater risk because processes are integrated. B. An unauthorized user can affect more processes in the legacy system. C. Incorrect data generated in a given process can automatically post flawed data to other processes. D. Online privacy and confidentiality risks are magnified.

B

Select the true statement from those provided below. A. An ERP system is designed to interact with a stand-alone sales and inventory application to create general ledger information. B. An ERP system is designed to be a stand-alone software application to accomplish revenue, expenditures, conversion, and administrative processes. C. An ERP system will accomplish e-commerce but relies on other software applications for the accomplishment of e-business transactions. D. An ERP system will not collect, process, store, and report the data resulting from e-business transactions.

B

Supply chain management is: 1. The management and control of all materials. 2. The management and control of all funds related to purchasing. 3. The management of information related to the logistics process. 4. Limited to the flow of materials from vendors into the production cycle. A. 1, 2, 3, and 4 are all correct. B. 1, 2, and 3 are correct. C. 1, 2, and 4 are correct. D. 1, 3, and 4 are correct.

B

The ERP program that uses the term "back office" in reference to managerial functions and "front office" in reference to customer and sales functions is: A. SAP R/3. B. Oracle Applications. C. Peoplesoft. D. mySAP.

B

The advantage of "best of the breed" is: A. The best functionality of the ERP system as a result of total implementation. B. The best functionality of a unique process of the organization. C. Best cost of implementation of the ERP system. D. Total integration of the ERP modules

B

The advantages and disadvantages of modular implementation are: A. Full system integration is available but hardware incompatibilities exist. B. Reduces the risks associated with installation and operation of the system, but full system integration is not available. C. All employees are exposed to some portion of the ERP system but critical information is still in the legacy system. D. Critical information is still available in the legacy system but technical support is not readily available for the legacy system.

B

The big bang approach to implementation means that the company: A. Will buy one integrated system to accomplish all business processes. B. Implements all modules and all function areas of the ERP system at one time. C. Commences training and data cleansing throughout the organization on one date. D. Implements the business process reengineering process on a predetermined date.

B

The sales and services module of an ERP such as SAP would include all of the following components EXCEPT: A. Sales order management. B. Procurement. C. Professional service delivery. D. Incentive and commissions management.

B

When computerized technology is introduced into processes, the processes A. Must utilize standardized forms and screens for data entry. B. Can be radically redesigned to take advantage of the speed and efficiency of computers to improve processing efficiency. C. Data retrieval from the databases will be restricted to upper management for analysis. D. Both B and C are correct.

B

With the proper implementation of an ERP system: A. Fraud due to inappropriate transaction recording is eliminated. B. Employee IDs, passwords, and segregated duties aid in internal control measures. C. Audit trails are not necessary due to ID and password security concepts. D. All of the above, A, B, and C, are correct answers.

B

All of the following are implementation of software systems EXCEPT: A. The big bang implementation. B. Location-wise implementation. C. Progressive implementation. D. Modular implementation.

C

An ERP system uses: A. One database for each module associated with the organization - sales, inventory, human resources, etc. B. One database for manufacturing, one database for sales, one database for administrative, and one database for design and research. C. One database which contains all data items associated with the organization. D. Relational databases for interactive queries between modules and departments.

C

One of the largest risks of ERP systems in the cloud is: A. The potential service outage that might cause the system to be unavailable. B. The risk of hacking into the system by competitors. C. The intense cost of training employees to work in the cloud environment. D. The high cost of the investment in hardware to handle the systems in the cloud.

C

Processes in supply chain management: 1. Involve trading processes from a supplier to the business. 2. Involve trading processes from the business to a customer. 3. Involve trading between the business and other intermediaries. 4. Do not include any transactions once raw materials are put into production. A. 1, 2, 3, and 4 are all correct. B. 1, 2, and 4 are correct. C. 1, 2, and 3 are correct. D. 1, 3, and 4 are correct.

C

The first "pure Internet" architecture, with no programming code residing on the client computer was: A. SAP R/3. B. Oracle Applications. C. Peoplesoft. D. mySAP.

C

To employ analytical processes on the organization's data: A. Data mining is performed on the operational database. B. Data is uploaded to the analytics module's database. C. Data mining is performed on the data warehouse. D. Data is uploaded to the financials module's database.

C

Which of the following is NOT one of the reasons for the increased spending on ERP systems since 2004? A. Bigger IT budgets replaced leaner budgets as economic conditions improved. B. Many companies needed upgraded systems to enhance compliance with the Sarbanes-Oxley Act. C. Business processes were separated and standardized. D. ERP has become so important to daily operations that many companies cannot allow their ERP system to become outdated.

C

Within an ERP program: A. The operational database contains five to ten years of transaction histories. B. The data warehouse is updated as daily transactions are recorded. C. The data warehouse contains five to ten years of transaction histories. D. The data warehouse information is available to sales personnel for customer histories.

C

Y2K compatibility issues arose because: A. Older computer systems recorded dates in mm/dd/yyyy formats and memory for these was expense. B. Older computer systems recorded dates in mm/dd/yyyy formats and memory in older systems was unreliable. C. Old computer systems kept dates in mm/dd/yy formats. D. Memory in older systems would fail when challenged with a mm/dd/yy formatted date.

C