Chapter 8

Implementation of an enterprise resource planning (ERP) system ensures good work processes that are based on _____.

Best Practices

_____ is the use of software to assist in the creation, analysis, and modification of the design of a component or product.

Computer-aided design

_____ is the use of software to analyze the robustness and performance of components and assemblies.

Computer-aided engineering (CAE)

_____ involves reentering data that was not typed or scanned correctly.

Data correction

_____ is a set of integrated programs that manage a company's vital business operations for an entire organization; even a complex, multi-site, global organization.

Enterprise resource planning (ERP)

A customer relationship management (CRM) system helps a company to plan, execute, and control all the activities involved in raw material sourcing and procurement, conversion of raw materials to finished products, and the warehousing and delivery of finished product to customers.

False

A customer relationship management (CRM) system helps a company to plan, execute, and control all the activities involved in raw material sourcing and procurement, conversion of raw materials to finished products, and the warehousing and delivery of finished product to customers. T or F

False

A designer would use computer aided manufacturing (CAM) to create, analyze, and modify the design of a component.

False

Enterprise systems use multiple databases aimed at different business units.

False

It is acceptable to for transaction processing systems to capture inaccurate data.

False

Product lifecycle management (PLM) typically includes customer relationship management (CRM) software.

False

Small and medium size organizations do not employ enterprise systems.

False

T/F: External users of product lifecycle management (PLM) software include design partners and raw material suppliers.

False

T/F: Small and medium size organizations do not employ enterprise systems.

False

T/F: Using the hosted software model implies that a small business firm needs to employ a full-time IT person to maintain key business applications.

False

T/F: With an online transaction processing (OLTP) system, each transaction is accumulated over a period of time and prepared for processing in a large batch of similar transactions.

False

The ability to capture and analyze all customer interactions, generate appropriate responses, and gather data to create and build effective and efficient marketing campaigns is known as contact management. True or False

False

Using the hosted software model implies that a small business firm needs to employ a full-time IT person to maintain key business applications.

False

With an online transaction processing (OLTP) system, each transaction is accumulated over a period of time and prepared for processing in a large batch of similar transactions.

False

​Legacy systems typically run on the latest hardware.

False

Which of these is an advantage of the hosted software model?

Faster system start-up ​

Results from one TPS would become ____ to other systems.

Input

In the context of purchasing systems involved in the traditional transaction processing systems, when a(n) _____ arrives from a supplier, it is matched to the original order and the receiving report, and a check is generated if all data is complete and consistent.

Invoice

Which of the following statements is true of product lifecycle management (PLM) software?

It provides documents required for FDA and environmental compliance.

Enterprise resource planning (ERP) systems evolved from _____ systems developed in the 1970s.

Materials Requirement Planning

Which of the following types of processing is essential for businesses that require access to current data such as airlines, ticket agencies, and stock investment firms?

Online transaction processing

A small business is currently using a paper-based system for billing, which is slow and error-prone. Which system upgrade will make the process faster and have fewer errors?

Source data automation

A small business is currently using a paper-based system for billing, which is slow and error-prone. Which system upgrade will make the process faster and have fewer errors? Source data automation Enterprise resource planning system Scanning hand-written bills Manual entry of data into spreadsheet system

Source data automation

Which of the following transactions definitely require online transaction processing and cannot work on batch processing approach?

Stock investments

According to the classification of enterprise resource planning (ERP) vendors, _____ vendors target medium-sized firms with annual revenues in the $50 million to $1 billion range operating out of one or more locations.

Tier II

Suppose a business with annual sales revenue of $30 million wishes to use an ERP solution. Which ERP vendor will have the most appropriate solution for them?

Tier III vendors such as Abas or Bluebee software

An enterprise system ensures that information can be shared with all authorized users in different functional.

True

If an organization is using several separate systems, they can be replaced with a single integrated set of applications for the entire enterprise. T or F

True

Implementation of an enterprise resource planning (ERP) system provides an organization with an opportunity to also upgrade the information technology that it uses.

True

In an organization, a transaction processing system (TPS) supports routine operations associated with its business processes.

True

Large organizations were the first to take on the challenge of implementing enterprise resource planning (ERP)

True

Large organizations were the first to take on the challenge of implementing enterprise resource planning (ERP).

True

Organizations frequently need to customize a vendor's enterprise resource planning (ERP) software to integrate other business systems. T or F

True

Smaller lot sizes from vendors will help reduce the purchasing complexities for the consumer.

True

T/F: An enterprise system ensures that information can be shared with all authorized users in different functional.

True

T/F: An integrated database for the entire organization makes it easier to share data among different business units.

True

T/F: Entering textual data in place of numeric data will result in rejection of the transaction.

True

T/F: Implementation of an enterprise resource planning (ERP) system provides an organization with an opportunity to also upgrade the information technology that it uses. Group of answer choices

True

T/F: When there is a delay between an event and the eventual processing of the data, it is called batch processing.

True

The bill of materials (BOM) serves as a recipe of ingredients needed to make each item an organization manufactures.

True

The bill of materials (BOM) serves as a recipe of ingredients needed to make each item an organization manufactures. T or F

True

The efficiency of processes for managing customer payments can vary; some processes are more efficient than others. True False

True

The main difference between batch processing and online transaction processing is in the timely update of data. True False

True

To successfully implement a supply chain management system, an organization must be able to integrate its systems with its suppliers. Tor F

True

Transaction processing systems (TPSs) provide valuable input to management information systems, decision support systems, and knowledge management systems.

True

XYZ Inc. assigned a part-time mid-level manager to supervise the implementation of an enterprise resource planning (ERP) system. The project has a high risk of failure.

True

​Smaller lot sizes from vendors will help reduce the purchasing complexities for the consumer.

True

As an organization's purchasing systems generate purchase orders and the items ordered are received, information is sent to the _____ system to manage the amounts owed by the organization.

accounts payable

Payroll transactions and billing are typically done via _____.

batch processing

With _____, business transactions are accumulated over a period of time for processing in a single unit.

batch processing systems

In the context of enterprise resource planning (ERP) system, a(n) _____ is a set of coordinated and related activities that takes one or more types of input and creates an output of value to the customer of that process.

business process

In enterprise resource planning (ERP) systems, retailers as well as manufacturers use _____ to match production to consumer demand and to allocate products to stores.

demand forecasting

A customer relationship management (CRM) system helps a company in managing ______.

distribution and accounting

A customer relationship management (CRM) system helps a company in managing ______. distribution and accounting material sourcing and procurement human resources and finance product development and manufacturing

distribution and accounting

Suppose a small business is using the hosted model for its enterprise software. Which of the following will not be an issue they will he worried about? Group of answer choices managing the hiring processes promoting and selling their products and services designing of their products and services employing full-time IT professionals to manage its resources

employing full-time IT professionals to manage its resources

A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business.

enterprise system

Suppose a small business owner does not invest in implementing an expensive enterprise resource planning (ERP) systems, she can choose to use _______ software and modify the code to suit her needs.

free and open source open source free, opensource open-source

Suppose a small business owner wishes to automate their reorder process. They will need to integrate the sales management system with their ____ system.

inventory

A key feature of an enterprise system is that _________.

it employs a database of key operational and planning data that can be shared by all

Purchasing uses information from the _____ to place purchase orders for raw materials with qualified suppliers.

materials requirement plan

According to the classification of product lifecycle management (PLM) software, _____ involves the production of products that are the result of a chemical process such as soda, laundry detergent, gasoline, and pharmaceutical drugs that cannot be easily decomposed back into its basic components.

process manufacturing

In a manufacturing enterprise resource planning (ERP) system, demand management _______.

refines a production plan by determining the amount of weekly or daily production needed to meet the demand for individual products

In the context of supply chain management (SCM), the _____ takes demand and current inventory levels into account and determines the specific product items that need to be produced as well as when to meet the forecast future demand.

sales and operations plan

Manufacturing enterprise resource planning (ERP) systems follow a systemic process for developing a production plan that starts with _______ to develop an estimate of future customer demand.

sales forecasting

In supply chain management (SCM), detailed ______ is used to determine how long to make the production runs for each product.

scheduling scheduling methods

In batch processing systems, data processing is done _______ data capture.

some time later than

The information about invoices to customers is tracked by ____ system.

transaction processing system

A small and medium-sized enterprise (SME) is a legally independent enterprise with _____ employees.

up to 500