Chapter 10 and a lil 11

Core modules in an ERP II system cover which function?

HRM

You have been asked to give a presentation to the Board of Directors of your organization promoting the use of FAIS in certain business departments. Which of the following points should you include in your presentation?

FAIS will help the Marketing and Sales department by improving customer relations through a better understanding of customer likes and needs and then catering to them while also improving the productivity of the organization's salesforce by automating certain tasks

Corinna works for a large telecommunication company, and she is preparing a presentation for the Board of Directors about promoting the use of FAIS in some business departments. Which of the following points should Corinna include in her presentation?

FAIS will help the Marketing and Sales departments by improving customer relations. It will create a better understanding of customer likes and needs. It will also improve the productivity of the company's salesforce by automating certain tasks.

An outside consultant has been hired by your organization to recommend an FAIS to help with business operations. He says a POM FAIS would best suit the organization because it will automate the organization's just-in-time systems, sales force activities, and quality control. Evaluate the consultant's recommendation.

While the consultant is correct that the POM system would automate the JIT system and quality control, he is incorrect in stating that it would automate the sales force activities since that is done by a marketing-based FAIS

One of the primary missions of the and functional areas is to manage money flows into, within and out of organizations.

accounting and finance

Which ratio represents how quickly a firm converts noncash assets to cash assets?

activity

Penguin Industries is expanding its business into two adjacent states. It has hired a consultant to help with the transition. The consultant has suggested that the company employ an OLTP system because it will help record transactions at the end of each day, reduce the company's inventory by each unit sold, increase the sales figures for each unit sold, and increase the cash position of the store in which the purchase was made. Evaluate the consultant's advice.

He is correct that an OLTP system will help the company with its expanded business; however, he is incorrect in saying that the OLTP system records the transactions at the end of each day. It actually records transactions in real time which would likely be more helpful to Penguin Industries.

Vincent works for a pharmaceutical company. He's been asked to create and implement a system that will assist the company with its processes, including inbound logistics, operations, sales and customer service; he must keep cost and risks low. Which of the following systems should Vincent develop and implement to BEST meet his company's needs?

Using the best of breed approach, create an on-premise system. Choose different ERP modules that will meet the company's specific value chain and internal processes. Choose an ERP module that most closely meets the requirements for the company's current best practices so that the amount of adaptation needed is minimal.

How can inconsistencies in a TPS occur

A component fails

Peter is the manager of the Finance department of a large computer company. His colleague, Bill, is frustrated because one of his employees constantly gives him incorrect TPS reports. Bill says he's given the employee memos asking for exception reports every two days detailing sales in both physical and online stores. What can Peter advise Bill to do in order to get the correct reports?

Bill should clarify with his employee exactly what kind of report he needs. Bill says he wants an exception report, yet what he is describing is a combination of a routine report and an ad hoc comparative report. Once Bill is clear about his needs, the employee should be able to deliver the correct TPS reports.

Compare the fulfillment process and the production process

Both are cross-departmental processes, but fulfillment starts in sales and ends in accounting, while the production process begins and ends in the warehouse.

Compare the procurement process and the production process

Both processes begin in the warehouse, but procurement ends in accounting, while production ends back in the warehouse.

When Stark Industries detected some major inefficiencies in its business processes and decided to hire a consultant to implement an ERP system, the consultant started the integration by investigating the procurement and fulfillment business processes. Why?

Business processes with more than one functional area make inefficiencies more evident to observe.

Your company, which is a large healthcare organization, wants you to develop and implement a system that will assist it in its processes, especially those regarding inbound logistics, operations, sales, and customer service, while also keeping costs and risks low. Which of the following should you develop and implement to BEST meet your organization's needs?

Create an on-premise system using the best of breed approach. Pick different ERP modules that will fit the organization's specific value chain and internal processes. You will also need to pick an ERP module that most closely matches your organization's current, successful, best practices to limit the amount of adaptation required after implementation. B

The MAIN difference between key indicator reports and others is that the key indicator reports deal with activities

Critical

On your next exam, your instructor expects you to explain how TPS systems work in businesses today, and he wants the information in the proper sequence and with the proper details. Which order should you choose for your answer?

Data are entered into the system using an input device. Source data automation makes it easier to process the large volume of data. Next, data are either batched and processed periodically or processed online in real time. Finally, the data are then collected into detailed reports and input into the corporate database.

After doing an analysis, Fred has decided that integrating his organization's functional systems will take too long and be too difficult to accomplish, but he still has systems that are too isolated for his business to function effectively. Because of this, he should look into implementing an EAI system.

EAI

Meghan's company, Megsie's Designs, is in desperate need of cleaning out problems from isolated systems and utilizing existing applications better with more effective data sharing. Meghan should look into

EAI

Martina has discovered a lack of communication in her organization's functional area information systems. Which of the following should she use to correct this?

ERP

What is Oracle e-Business Suite an example of?

ERP II

River, a business process consultant, is preparing an explanation to the company board how ERP II systems were developed and what other business systems preceded them. What information should she include in her summary?

ERP II systems evolved from ERP Systems. The predecessor was developed to facilitate business processes related to manufacturing but did not extend to other business areas such as sales and marketing and did not include any CRM capabilities. As ERPs evolved, they included abilities to capture customer-specific information, administrative processes and marketing. ERP II is an enterprisewide extension of ERP that provides Web links all across the value chain and integrating internal-facing applications with external-focusing applications.

Compare ERP systems and FAIS

ERP systems function much like FAIS, but they also integrate individual FAIS.

Integration of information from multiple departments is easier with the use of

ERPs

What is the main goal for a three-way-match?

Ensure that goods have been received before paying

You are a manager in the Finance department at your organization; another Finance manager has come to you to complain that one of his employees consistently gives him incorrect TPS reports. He states that he has sent the employee memos requesting exception reports every two days detailing the sales in both their online and physical stores. What advice should you give your fellow Finance manager

He needs to be clear with his employee about exactly what kind of report he needs. He specifies that he wants an exception report, but what he describes is a mixture of a routine report and an ad hoc comparative report. Once the manager is clearer on his needs, the employee should be able to deliver the appropriate TPS reports.

You are a manager in the Finance department at your organization; another Finance manager has come to you to complain that one of his employees consistently gives him incorrect TPS reports. He states that he has sent the employee memos requesting exception reports every two days detailing the sales in both their online and physical stores. What advice should you give your fellow Finance manager?

He needs to be clear with his employee about exactly what kind of report he needs. He specifies that he wants an exception report, but what he describes is a mixture of a routine report and an ad hoc comparative report. Once the manager is clearer on his needs, the employee should be able to deliver the appropriate TPS reports.

You have been asked to speak to your friend's high school Introduction to Information Systems class. Your topic of discussion is the use of TPS in modern businesses. Which of the following represents the BEST outline for your discussion?

I. Data are entered into the system using an input device. Source data automation makes it easier to process the large volume of data. II. Data are either batched and processed periodically or processed online in real time. III. The data are then collected into detailed reports and input into the corporate database.

Camille, a college professor, is creating a lesson for her students about the use of information systems in supporting functional areas in business. Which of the following points should Camille include in her lesson plan?

I. FAIS can be used in Accounting to provide strategic support to plan profitability. It can be used as tactical support for auditing and budgeting. It can be used as operational support for payroll, accounts payable, and accounts receivable. II. FAIS can be used in Finance to provide strategic support for financial planning. It can be used as tactical support for investment management. It can be used as operational support to manage cash and financial transactions. III. FAIS can be used in POM to provide strategic support for product life cycle management. It can be used as tactical support for inventory management and quality control. It can be used as operational support for processing and order fulfillment.

You are giving a presentation to a community college class regarding the use of information systems in supporting functional areas in businesses. Which of the following points should you use in your presentation? A.

I. In Accounting, FAIS can be used as strategic support to plan profitability, as tactical support for auditing and budgeting, and as operational support for payroll and accounts payable and receivable. II. In Finance, FAIS can be used as strategic support for financial planning, as tactical support for investment management, and as operational support to manage cash and financial transactions. III. In POM, FAIS can be used as strategic support for product life cycle management, as tactical support for quality control and inventory management, and as operational support for order fulfillment and processing

Callahan Inc. is implementing ERP software to improve its efficiency. Jenkins, the consultant helping the company with the process, tells the managers about certain business processes that need to be changed to make the integration work better. Why are the changes needed?

Inefficiency in business processes is sometimes due to problems in more than one functional area; therefore, in order for the software to work, some changes need to be implemented because other areas will be affected as well.

You have been asked to give a presentation to your class on the evolution of ERP in businesses. Which of the following should you include in your presentation?

Initially, businesses had independent FAISs which did not communicate with each other and created information silos that slowed efficiency within organizations. This led to the development of ERP systems which aided companies in automating FAISs associated with raw materials, inventory control, order entry, and distribution while facilitating integrated communication and shared databases between systems. ERP II systems were then developed to cover the functions of ERP systems and to integrate FAISs with customer relationship management, sales and marketing, and, most importantly, Web-enabled functionalities.

Chandra bought a pair of shoes for her son at a department store; they didn't fit, so she had to return them to the store. Which of the following is an action that must be taken by the store's TPS?

It must credit Chandra's credit card company for the amount of the purchase and update the inventory

Vanessa works in the procurement area at Crowley's Kitchenwares, a kitchen supply company. For the last two years, Vanessa and her workmates have struggled with efficiency problems related to information silos and lack of communication between different functional areas in procurement. The procurement manager decides that the department should install ERP software and try to have it custom made so that the FAISs in different areas become more independent as well as secure via the implementation of individual databases. Do you think the manager has a good idea? Why or why not?

No. While it is correct that ERP systems help solve information silo issues, particularly in business processes with more than one functional area, ERP integrates FAISs instead of making them more independent.

Falstaff Company has hired a consultant to deal with its current problem of information silos. The consultant suggests that the company employ an ERP system that will help with its information silo problem by giving each FAIS its own database and independent network thereby reducing the risk of redundancies and loss of data. Would you agree with the consultant? Why or why not?

No. While the consultant is correct in saying that an ERP system will help with Falstaff Co.'s information silo issue, this is done by integrating the FAISs and increasing their communications with each other.

You like to ship products as soon as possible. This means you need to process orders as soon as they are received. This is an example of

OLTP

ERP II modules can be bought under what company brand?

Oracle

Dominick used his credit card to purchase a bike for his son's birthday. Which of the following is an action that must be taken by the store's TPS?

Reduce the inventory and increase the sales figures.

The IRS is auditing your business. You are glad you use a(n) _________ to maintain the requested audit trail

TPS

The IRS is auditing your business. You are glad you use a(n) _________ to maintain the requested audit trail.

TPS

is important to a company because it supports its core operations

TPS

Compare TPS and OLTP

TPS and OLTP both process transactions as soon as they happen.

Inputs for functional area information systems generally come from

TPSs.

How does a company benefit from having automated payroll?

The accuracy of the payroll system will improve.

Makina Pizza Co. always produces yearly budgets; however, the budgets routinely underestimate expenses which causes the company to overspend. What is the MOST LIKELY result for the company if it uses budgetary controls

The company will be able to compare departmental expenditures against the budget and corporate plans thereby reducing the risk of going out of business

Makina Pizza Co. always produces yearly budgets; however, the budgets routinely underestimate expenses which causes the company to overspend. What is the MOST LIKELY result for the company if it uses budgetary controls?

The company will be able to compare departmental expenditures against the budget and corporate plans thereby reducing the risk of going out of business.

Ivan meets with an outside consultant to discuss an FAIS to assist with business operations at his electronics company. The consultant tells Ivan that a POM FAIS is the best choice for his company since it will automate the just-in-time systems, salesforce activities, and quality control. Is the consultant correct?

The consultant is correct that the POM system would automate the just-in-time system and quality control. However, he is incorrect that it would automate the salesforce activities; this is done by a marketing-based FAIS.

A representative for an ERP systems manufacturer is visiting Pentex Corp. to present on their product and all its advantages. The representative tells the board of directors that their ERP system will make the organization more flexible and adaptive by breaking down business process silos, presenting business performance information, changing best practices in areas with processes related to their most competitive advantage, and integrating all processes swiftly and without data conversion

The representative is giving an untrue picture of their ERP systems product because, while it is true that ERP systems do help make organizations more flexible by breaking down silos and integrating and improving processes, changing best practices in activities considered to generate competitive advantages is not a good idea for the company. Furthermore, data conversion is an integral part of implementing the ERP which is usually a lengthy process.

If a warehouse worker compares the packing list against the PO, and the shipment matches the order, what will happen?

The warehouse issues a goods receipt document.

What is the MAIN benefit to implementing an ERP?

They adopt a business-process view of the company.

How are customer quotes and customer POs similar

They are both issued by the sales department.

A manager is giving a presentation to your group recommending that the group adopt the use of ERP systems. During his presentation, he mentions that ERP systems will help the group improve the quality of production, distribution, and customer relations by integrating business processes; they will also allow the group to maintain their well-established best practices, as well as make the organization more flexible, adaptive and agile by responding quickly to changing business conditions and capitalizing on new business opportunities; and, finally, the ability to communicate between FAIS with ERP systems will allow management to make better and more timely decisions. Evaluate the manager's statements.

While the manager is correct in the bulk of his statements, he is incorrect in his discussion of best practices. ERP systems come with best practices predefined by the ERP vendor. For a group like yours, this would mean that your well-defined best practices would have to change which could be significantly disruptive to the business.

What is a cause of an increase in inventory?

a make-to-stock request

A(n) __________ payroll system can greatly increase the reliability of the system.

automated

You want to manage your inventory in real-time. This means that at the checkout lines you need ________ scanners and you must have each checkout line connected to the company's

bar code; TPS

Vernon is the team manager for a project team in the Salamander Group that is matching several extended ERP modules from different software providers with their core modules. They are doing this so they can adjust to the unique processes and value chain of the Salamander Group. Vernon's team is working on a

best of breed

What is meant by a virtual close?

closing the books at any time on very short notice

FAIS typically access data from

corporate databases

JonMon Corp. needs to access customer financial data, inventory levels, and manufacturing databases, meaning it is most likely to be involved in

electronic commerce

Mekiah's firm now uses Accounting/Finance FAIS software for control and auditing. Which of the following financial issues will NOT be solved by this software?

evaluation of financial reports from diverse institutions

Managers can focus on problem areas, thus saving time, by using ________ reports

exception

reports include only information that falls outside certain threshold standards

exception

What systems automate the data entry and processing of travel and entertainment expenses

expense management automation

CRM is an example of a(n) ________ module of an ERP II systemWhat is meant by information silos regarding an FAIS in a company

extended

Chloe manages general ledgers and fixed assets. What ERP module is she using?

financial management modules

Leif is in charge of enforcing company policies and contracts for spending on hotels and airlines. He uses financial and accounting systems

for expense management automation

Corporate databases provide data to

functional area information systems

Janessa is involved in her organization's production process. As part of the warehouse department, which of the following documents is she MOST LIKELY to handle?

goods receipt

The activity ratio represents

how quickly a firm converts noncash assets to cash assets

An ATM that doesn't register a receipt in a bank is an example of a data

inconsistency

TPS are ________ for functional area information systems in a company.

inputs

When Martin is trying to correct communication problems in his organization and implements ERP for this, the software is

integrating functional areas of the organization by using a software platform and a database.

What does an economic order quantity (EOQ) model deal with

inventory

A CFO needs a report that would monitor cash flow for the company. What type report should he generate?

key indicator

You've just been assigned to handle inventory management. Of the following, which should NOT be associated with the expensive nature of overstocking?

last-minute orders

A material withdrawal slip is used to

list parts needed to produce something

Mr. Rendelle uses his EMA system to promptly reimburse employee travel expenses. He is using his department's FAIS to

manage financial transactions.

When Riley comes into his office every morning, he immediately checks his computer to see the current state of various financial markets in the world. He uses this information to understand how the dollar compares to other forms of money globally. He uses financial and accounting systems to

manage multiple currencies.

Monika's company is heavily involved with electronic commerce. Because of this, it is MOST LIKELY that the company will use

manufacturing databases

A list of parts needed for production would be found in a(n)

material withdrawal slip.

How would you identify a fake ERP system?

no core ERP modules

During the procurement process, the receipt of an invoice by the accounting department will result in their

performing a three-way-match before issuing the payment

If Alfred is responsible for acquiring services from his company's preferred vendors, which of the following processes is he MOST LIKELY involved with?

procurement

Steve handles warehouse receiving and checks to make sure that deliveries correspond to what was ordered. He is MOST LIKELY involved with the ________ process.

procurement

Ms. Thatcher likes her FAIS software package's ability to do a virtual close which lets her

provide almost real-time information on her organization's financial health.

During the fulfillment process, which documents does a sales department issue instead of handling?

quotation

Drill-down

reports display a greater level of detail than routine reports

A TPS must ________ a transaction if it has been done in error.

reverse

Daily absenteeism reports in a restaurant are an example of ________ reports

routine

Janice is involved in the fulfillment process at her organization. Her part of the process involves issuing a price quotation in response to a customer inquiry. To which department does she MOST LIKELY belong?

sales

By using exception reports, managers can

save time.

Mr. Fogel needs something that will support the preparation of the annual budget and help coordinate communications among the budget process participants. His BEST choice is to

select one of several already available software packages that do this.

You use bar code scanners to enter data into your TPS. This is an example of

source data automation

What is the primary mission of accounting and finance as functional areas in a business?

to manage money flows in and out of the organization

Expense management automation is a system used for

travel expenses

Closing the books with very short notice is referred to as a(n) ________ close.

virtual

Becky manages her organization's books. In the past, she would be able to close the books only every quarter; however, now she is able to close which allows her to close the books at any time on very short notice

virtually