CISM Ch. 11

Which of the following statements is false?

Functional area information systems easily communicate with each other.

T/F: An organization has to own all of the information systems it used.

False

T/F: Drill down reports are produced at scheduled intervals.

False

T/F: Enterprise resource management is an enterprise-wide effort to acquire and retain customers.

False

T/F: Enterprise resource planning (ERP) systems are not as valuable as functional area information systems because they do not focus on a single function.

False

T/F: Exception reports show a greater level of detail than is included in routine reports.

False

T/F: Financial management, operations management, and human resource management are extended ERP modules.

False

T/F: Greg is mowing lawns in the neighborhood for the summer. He does not need an information system.

False

T/F: Information Systems only play a critical role within the context of large organizational settings.

False

T/F: Information silos were particularly efficient when business processes crossed functional boundaries in an organization.

False

T/F: Key-indicator reports shows data at a greater level of detail.

False

T/F: Refer to Opening Case - The Lion King Roars Back: Disney has adopted a yield management system for ticket pricing for the Lion King stage show. Under a yield management system, all tickets for all shows are priced the same.

False

T/F: The POM function within an organization monitors the customer sales activity.

False

T/F: The functional area information systems are the most fundamental information systems in the organization.

False

T/F: The major objective of enterprise resource planning systems is to allow each of the functional area information systems to operate independently.

False

T/F: Yield management systems enable businesses to implement a fixed pricing strategy.

False

T/F: The data processed by transaction processing systems provide the inputs for other organizational information systems.

True

T/F: The TPSs are critical to the success of any enterprise because they support core operations.

True

CIM has three basic goals:

(1) to simplify all manufacturing technologies and techniques, (2) to automate as many of the manufacturing processes as possible, and (3) to integrate and coordinate all aspects of design, manufacturing, and related functions via computer systems.

Routine reports are produced at scheduled intervals and have set data requirements. _____ reports are used when requirements are not routine.

Ad hoc

Kathy has taken a job with her ideal company and is excited to start in their sales department. During orientation, she is told that the company is very proud of their ERP system from SAP. She is also told that one of the advantages of ERP systems is that they implement the most successful problem-solving methods for achieving a business objective. These are called __________.

Best practices

___________________________ is an approach that integrates various automated factory systems.

Computer-integrated manufacturing (CIM) (also called digital manufacturing)

Greg is mowing lawns in the neighborhood for the summer. Which of the following is not an example of a transaction he has in his business?

Driving to the client's house

Kathy has taken a job with her ideal company and is excited to start in their sales department. Kathy is going to be spending some of her time maintaining the Web site to promote the company's products and increase online sales. During orientation, she is told that the company is very proud of their ERP system from SAP. Which one of the modules listed below will process the data from online sales?

E-business

Inventory systems that use an _________ approach are designed for items for which demand is completely independent—for example, the number of identical personal computers a computer manufacturer will sell.

EOQ

_______________ include a variety of modules that are divided into core ERP modules—financial management, operations management, and human resource management—and extended ERP modules—customer relationship management, supply chain management, business intelligence, and e-business.

ERP II systems

_______________- are interorganizational ERP systems that provide Web-enabled links among a company's key business systems—such as inventory and production—and its customers, suppliers, distributors, and other relevant parties.

ERP II systems

___________ adopt a business process view of the overall organization to integrate the planning, management, and use of all of an organization's resources, employing a common software platform and database.

ERP systems

Which of the following statements is false?

ERP systems look the same to users as functional information systems.

________________ systems are designed to correct a lack of communication among the functional area IS.

Enterprise resource planning (ERP)

_____ integrate the planning, management, and use of all of an organization's resources, and are designed to tightly integrate the functional areas of the organization.

Enterprise resource planning systems

Greg is mowing lawns in the neighborhood for the summer. Which type of report would he used to see which of his clients still owe him money?

Exception

When the chief financial officer of a company wants a report on business units who have spent 10 percent more than their allotted budget, she would be requesting which type of report?

Exception

To monitor, interpret, and analyze the huge amounts of online financial data, financial analysts employ two major types of IT tools:

Internet search engines and business intelligence and decision support software

_________________ processes originate and conclude within the same company.

Intraorganizational

_____ reports summarize the performance of critical activities.

Key Indicator

_____________ deals with ordering, purchasing, inbound logistics (receiving), and outbound logistics (shipping) activities. Related activities include inventory management and quality control.

Logistics management

__________ integrates a firm's production, inventory management, purchasing, financing, and labor activities.

MRP II

Which of the following statements is false?

The POM function within an organization monitors sales.

Which of the following is not an example of a transaction?

Printing a report

_______________ is a business strategy that enables manufacturers to share product-related data that support product design and development and supply chain operations.

Product lifecycle management (PLM)

Which of the following is not a characteristic of a transaction processing system?

Small amounts of data are processed

Which of the following statements is true?

The actual processing of a transaction has to be standard.

Which of the following is false about ERP II systems?

These ERP systems have no optional modules.

___________ means that changes in one functional area are immediately reflected in all other pertinent functional areas.

Tight integration

A _________ is any business event that generates data worthy of being captured and stored in a database.

Transaction

When interest is credited to your savings account at your bank, it is called a ____________.

Transaction

When you are checking out of Walmart, each time the cashier swipes an item across the bar code reader is one __________.

Transaction

T/F: Best practices are the most successful solutions or problem-solving methods for achieving a business objective.

True

T/F: Enterprise application integration (EAI) systems use middleware to integrate existing functional area information systems.

True

T/F: Enterprise resource planning systems are designed to aid communication among the various functional areas.

True

T/F: Greg is mowing lawns in the neighborhood for the summer. When he mows a lawn, it is considered a transaction to his business.

True

T/F: Historically, the functional area information systems were developed independently of one another.

True

T/F: If a system does not have the core ERP modules, then it is not a legitimate ERP system.

True

T/F: In general, organizations try to automate data entry as much as possible.

True

T/F: Information systems can be function-specific.

True

T/F: It is important to understand here that ERP systems are an evolution of FAIS. That is, ERP systems have much the same functionality as FAIS, and they produce the same reports. ERP systems simply integrate the functions of the individual FAIS.

True

The custom approach

a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm.

The vanilla approach

a company implements a standard ERP package, using the package's built-in configuration options.

Order Fulfillment Process

a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

Greg is mowing lawns in the neighborhood for the summer. The most fundamental information system Greg will need is _____________.

a transaction processing system

Accounting and finance functional area information systems support all of the following activities except: a) Analyzing customer profiles and preferences. b) Calculating the availability and cost of money. c) Monitoring expenditures and comparing them against the budget. d) Managing organizational investments in stocks, bonds, and other investment vehicles.

a) Analyzing customer profiles and preferences.

Production/operations and logistics functional area information systems support all of the following activities EXCEPT: a) Calculating the availability and cost of money. b) Computer-assisted manufacturing. c) Determining how much inventory to order. d) Controlling for defects in goods produced.

a) Calculating the availability and cost of money.

Examples of FAISs are

accounting IS, finance IS, production/operations management (POM) IS, marketing IS, and human resources IS.

Which of the following departments is NOT typically involved in the procurement process? a) Purchasing b) Sales c) Accounting d) Warehouse

b) Sales

Routine reports _____________. a) include only information that falls outside certain threshold standards. b) are produced at scheduled intervals. c) all of these choices are correct d) are prepared when managers ask for specific information.

b) are produced at scheduled intervals.

Enterprise resource planning systems take a(n) _____ view of the overall organization.

business process

Online processing

business transactions are processed online as soon as they occur.

Which of the following is NOT a core ERP module? a) Human Resources Management b) Financial Management c) Supply Chain Management d) Operations Management

c) Supply Chain Management

Best of Breed Approach

combines the benefits of the vanilla and customized systems while avoiding the extensive costs and risks associated with complete customization

In the modern business world, TPSs are inputs for the functional area information systems and business intelligence systems, as well as business operations such as

customer relationship management, knowledge management, and e-commerce

An __________________________ integrates existing systems by providing software, called middleware, that connects multiple applications. I

enterprise application integration (EAI) system

Each department or functional area within an organization has its own collection of application programs, or information systems. Each of these __________________________- supports a particular functional area in the organization by increasing each area's internal efficiency and effectiveness.

functional area information systems (FAISs)

Batch processing

he firm collects data from transactions as they occur, placing them in groups or batches. The system then prepares and processes the batches periodically (say, every night).

Organizational transactions are typically _____ volume, _____, and therefore _____ to computerize.

high, repetitive, easy

The POM function in an organization is responsible for the processes that transform inputs into useful outputs as well as for the overall operation of the business. Because of the breadth and variety of POM functions, you see only four here:

in-house logistics and materials management, planning production and operation, computer-integrated manufacturing (CIM), and product lifecycle management (PLM).

Historically, the functional area information systems were developed independent of one another, resulting in ____________

information silos

More complex planning also involves allocating related resources, such as money and labor. For these cases, more complex, integrated software, called ______________, is available.

manufacturing resource planning (MRP II)

The planning process that integrates production, purchasing, and inventory management of interdependent items is called ______________.

material requirements planning (MRP)

Procurement Process

originates when a company needs to acquire goods or services from external sources, and it concludes when the company receives and pays for them

The act of crediting interest to your savings account at your bank once a month is called a ____________.

process

Examples of transactions

product manufactured, service sold, person hired, payroll check generated

_________ are produced at scheduled intervals.

routine reports

Generally speaking, organizations try to automate the TPS data entry as much as possible because of the large volume involved, a process called Generally speaking, organizations try to automate the TPS data entry as much as possible because of the large volume involved, a process called _____________.

source data automation

Production Process

the activities, equipment, and resources needed to manufacture a product

The drawbacks of ERP systems include all of the following except:

they consist of modules

Transaction processing systems (TPS) ___________________.

track data on activities such as products manufactured, services sold, people hired, and payroll checks generated

When interest is credited to your savings account at your bank, it is called a ________________.

transaction

A ___________________ supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data.

transaction processing system

The __________ collects data continuously, typically in real time—that is, as soon as the data are generated—and it provides the input data for the corporate databases.

transaction processing system

The most fundamental information systems in an organization are_____________.

transaction processing systems