Introduction to Enterprise Resource Planning-1


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Introduction to Enterprise Resource Planning


Assignment A


Q1: What are the evaluation criteria of ERP packages? Explain.

Q2: Discuss why is BPR important in an ERP implementation along-with concepts of “Best Practices” and “Benchmarking”?

Q3: Draw the Generic Model of ERP System with due explanation of various terms that describe the inter-organizational ERP capabilities. Give benefits provided by any four of the core ERP modules.

Q4: Write short notes on either Baan or PeopleSoft or mySAP.

Q5: Briefly explain the four main types of ERP architectures along-with their benefits and limitations.

Assignment – B


Case Study

Dell Inc. pioneered the Direct Model of selling PCs directly to the consumers. Dell Computer Corporation a leading direct computer systems company was founded in 1984. Dell sells its computer systems directly to end customers, bypassing distributors and retailers (resellers). Dell’s supply chain consists of only three stages the suppliers, the manufacturer (Dell), and end users.


Dell’s direct contact with customers allows it to:

  • properly identify market segments,
  • analyze the requirements and profitability of each segment, and
  • develop more accurate demand forecasts.


Dell matches supply and demand because its customers order computer configurations over the phone or online (Internet). These computer configurations are built up from components that are available. Dell’s strategy is to provide customised low cost, and quality computers that are delivered on time. Dell successfully implemented this strategy through its efficient manufacturing operations, better supply chain management and direct sales model. Dell takes orders directly from its customers; either on phone or online. Thus, Dell reduces the cost of intermediaries that would otherwise add up to the total cost of PC for the customer. Dell also saves time on processing orders that other companies normally incur in their sales and distribution system. Moreover, by directly dealing with the customer Dell gets a clearer indication of market trends. This helps Dell to plan for future besides better managing its supply chain.


Another advantage Dell gets by directly dealing with the customer is that it is able to get the customers requirements regarding software to be loaded. Dell loads the ordered software in its plant itself before dispatching it. By eliminating the need of a PC support engineer to load software, the customers gain both in time and cost. They can use the PC’s the moment they arrive.


To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time (JIT) manufacturing approach, which minimizes inventory costs. Low inventory is another signature of the Dell business model — a critical consideration in an industry where components depreciate very rapidly.


Dell’s value chain is one of a kind, they outsource all there components across the world and then assemble and sells it directly to the customers. Dell works in a very complex manner by directly supplying to the customer and by this they skip the market middlemen. They achieve value addition at the same time because of incurring low on total expenditure. This ensures dell to get the maximum advantage in the market.


Dell’s manufacturing process covers assembly, software installation, functional testing (including “burn-in”), and quality control. Throughout most of the company’s history, Dell manufactured desktop machines in-house and contracted out manufacturing of base notebooks for configuration in-house. However, the company’s approach has changed. The 2006 Annual Report states “we are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships.” The Wall Street Journal reported in September, 2008 that “Dell has approached contract computer manufacturers with offers to sell” their plants.


Dell’s new retail business is not profitable as of now. So Dell aims to make its retail computer business cost-effective by aligning (reducing) manufacturing costs (cost of goods sold) with its competitors. But this will be challenging since Dell does not have the same volume in retail globally (as competitors), and therefore a smaller fixed base to spread costs. Secondly, Dell’s supply chain had not exactly been designed for mass distribution. HP uses a diversified supply chain unlike Dell’s one supply chain approach.


Question 1: Discuss at length the unique Supply-Chain Model of Dell.

Question 2: What is the main aim of Supply Chain Management? What are the key issues faced in SCM?

Question 3: How does Dell address the key drivers of Supply Chain Management?


Assignment C


Q1: Key success factors that decide about product competitiveness:

a. Efficient knowledge

b. Business experience management

c. Knowledge of Best Practices in the domain

d. All of the above.


Q2: Which one of the following was introduced before Extended ERP?

a. SCM

b. CRM

c. MRP

d. SFA


Q3: Assessing readiness in an ERP implementation is critical to the overall implementation process. Which of the following ways does not contribute towards ensuring ERP readiness:

a. Project management’s focus on the issues, tasks, and activities to being ready.

b. Knowledge Transfer Process in place.

c. Discontinue training and complete focus on issues.

d. Support functions are in place for post-production support for operationalizing the ERP.


Q4: Which of the following statements is true about ERP Implementation:

a. “As-Is” stage follows “To-Be” stage.

b. “To-Be” stage follows “As-Is” stage.

c. “Go-Live” stage and “As-Is” stage can proceed simultaneously.

d. None of the above.


Q5: Which of the following statement(s) is/are false with respect to ERP Implementation methodologies:

a. The emphasis on the ERP software life cycle is whether to customize the software or to change the organization’s processes to match those embedded in the software.

b. The implementation strategy can be a comprehensive one, vanilla, or middle-of-the road strategy.

c. ERP life cycle must incorporate traditional SDLC stages.

d. Rapid Implementation methodologies have been developed by ERP consulting firms.


Q6: An implementation with considerable modifications to the ERP software package is referred to as:

a. Vanilla Implementation

b. Business Process Reengineering

c. Chocolate Implementation

d. Generic Implementation Methodology


Q7: Which of the following is not a BPR Tool?

a. Visual BPR

b. mySAP

c. iGrafx

d. iThink


Q8: Which of the following statements about BPR is false?

a. The business process cycle time is reduced significantly.

b. The number of decision points is reduced to the bare minimum.

c. The flow of information is streamlined, i.e., there is no unnecessary to-and-fro flow of information between departments.

d. It helps in duplication of inter-departmental effort for similar processes.


Q9: ______is an important pre-cursor of___________Implementation.






Q10: The___________of each process is necessary to ensure that a step was not missed or that a process not achievable.

a. Testing and Measurement

b. Measurement and Analysis

c. Testing and Validation

d. Preparation and Refinement


Q11: __________functionality of ERP makes it capable of, for instance, receiving invoices in Indian Rupees, splitting the payment into German Mark and Belgian Francs, billing in Italian Lire, receiving cash in British Pounds, with the general ledger stated in US Dollar or Japanese Yen.

a. Multi-lingual

b. Multi-currency

c. Multi-mode manufacturing

d. Multi-facility


Q12: Which of the following statements is false about the ERP modules:

a. Organizations often selectively implement the ERP modules that are both economically and technically feasible.

b. ERP vendors, including SAP, Oracle, and Microsoft provide modules that support the major functional areas of the business (e.g., accounting, production, financial management, human resources, sales order processing, and procurement).

c. Customization or changes are not at all required when implementing the ERP modules.

d. ERP modules include functionality to optimize business operations and resources to extend best practices to the entire value chain.


Q13: Manage human capital investments by analyzing business outcomes, workforce trends and demographics, and workforce planning is a strategic objective of one of the following ERP modules:

a. Product Development and Manufacturing

b. Sales and Service

c. Human Resource Management

d. Logistics


Q14: Which of the following statements is false about the Sales and Service modules provided by various ERP software packages:

a. Decrease the number of sales orders processed.

b. Reduce administrative costs through automation of sales order management.

c. Deliver greater customer satisfaction by providing easy access to accurate, timely information.

d. None of the above.


Q15: Which of the following statements is false regarding the three tiers of the ERP architecture:

a. The data tier focus is on the structure of all organizational data and its relationships with both internal and external systems.

b. Users usually interact with ERP packages like SAP through the application tier.

c. Application tier consists of a Web-browser (i.e., Java layer) and a reporting tool where business processes and end-users interact with the system.

d. Presentation tier provides the ability to customize views for every function within an enterprise.


Q16: Three-tier applications provide several benefits over traditional client-server applications that does not include:

a. Scalability

b. Reliability

c. Flexibility

d. Complexity


Q17: Web-based architecture is primarily supported through the following Internet access technologies, except:

a. Web Server

b. Service Oriented Architecture

c. Back-End Server Integration

d. Browser Plug-Ins or Applets


Q18: Client-centric platforms are not popular in devices such as:

a. Personal Digital Assistants (PDAs)

b. Blackberries

c. Mobile phones

d. PC-based devices


Q19: Service Oriented Architecture (SOA) is/are (Mark the False statement):

a. object-oriented architectures for Web platforms

b. does not allow message interaction between any service consumer and service provider

c. essentially a collection of services

d. loosely coupled, document-oriented interaction model


Q20: Which of the following is not a benefit of Service Oriented Architecture (SOA):

a. Security system needs to be sophisticated

b. Reduces hardware acquisition costs

c. Increases the ability to meet customer demands more quickly

d. Provides a data bridge between incompatible technologies


Q21: Which of the following statements is incorrect for Best Practices:

a. A best practice is a method or technique that has consistently shown results superior to those achieved with other means.

b. It is used to describe the process of developing and following a standard way of doing things that multiple organizations can use.

c. Best practices fail to reveal how best performing companies are functioning.

d. Best practices are used in nearly every industry and professional discipline.


Q22: ______is the process of comparing one’s business processes and performance metrics to industry bests from other industries.

a. Best Practice

b. Benchmarking

c. Logical Integration

d. System Integration


Q23: SAP ERP Central Component (SAP ECC) had following component(s) of the initial SAP R/3 Enterprise:

a. The SAP Business Warehouse

b. SAP Strategic Enterprise Management

c. Internet Transaction Server

d. All of the above


Q24: In SAP R/3, which of the following is the correctly denote the meanings of R and 3?

a. R = Right Choice; 3 = Version 3

b. R = Real Choice; 3 = Volume 3

c. R = Real Choice; 3 = Upgrade 3

d. R = Real Time; 3 = 3-Tier Architecture


Q25: Which of the following statements is false about SAP NetWeaver:

a. SAP NetWeaver is wrapped into SAP Web Application Server.

b. SAP NetWeaver is marketed as a service-oriented application and integration platform.

c. SAP NetWeaver is built using open standards.

d. SAP NetWeaver provides the development and runtime environment for SAP applications.


Q26: Which of the following is not a core module in the PeopleSoft HRMS application:

a. eRecruit for Recruiters

b. Workforce Administration

c. Benefits Administration

d. Customer Inquiry


Q27: PeopleSoft HRMS module is used for:

a. Aligning the workforce to organizational goals & objectives.

b. Improving Customer response.

c. Does not streamline the processes.

d. Improving product’s quality.


Q28: ________is the core component of Baan application server. It is a process virtual machine to run Baan 4GL language.

a. Bshell

b. Baan Orgware

c. Baan Dynamic Enterprise Modelling (DEM)

d. Baan Tools


Q29: With ______, Baan enables______, a new paradigm which delivers a framework for insuring that enterprise applications are in close alignment with changing processes and business models.

a. Dynamic Enterprise Modelling; Orgware

b. Baan Tools; Orgware

c. Orgware; Dynamic Enterprise Modelling

d. Baan Tools; Dynamic Enterprise Modelling


Q30: Which of the following statements is false:

a. Forecasts are never right.

b. The longer the forecast horizon, the better is the forecast.

c. The longer the forecast horizon, the worse is the forecast.

d. Aggregate forecasts are more accurate.


Q31: Which one of the following is a key SCM Vendor:

a. JDA Software Group, Inc.

b. Seibel

c. Clarify

d. None of the above


Q32: Which of the following statement is false about SCM:

a. SCM plays a major role only in the success of e-business and not e-commerce.

b. A good SCM is designed in collaboration with the organizations’ partners.

c. ERP vendors have started including SCM as a component or module of the software.

d. SCM provides a link for services, materials, and information across the value chain of the organization.


Q33: Process reference models contain:

a. standard descriptions of management processes

b. a framework of relationships among the standard processes

c. standard metrics to measure process performance

d. All of the above.


Q34: Which of the following is not a benefit of a Supply Chain Management system:

a. Improved delivery performance-quicker customer response and fulfillment rates.

b. Reduced productivity and higher costs.

c. Reduced inventory throughout the chain.

d. Improved forecasting precision.


Q35: Which of the following statements does not bring out the difference between an ERP and SCM system?

a. ERP focus is on providing an integrated transaction processing while SCM’s focus is on providing a higher level of business planning and decision support.

b. In an ERP system, all the demand, capacity and material constrains are considered in isolation of each other while in a SCM system, simultaneous handling of the constraints is done.

c. ERP systems support only internal organization functions instead of inter-organizational supply chain functions, as done by SCM systems.

d. ERP systems are built on top of SCM systems.


Q36: In _______approach, the goal is to evaluate bids from vendors, comparing “apples-to-apples” in order to determine which system will work best in the company’s current and future environment.

a. Total Cost of Ownership

b. Proof of Concept Approach

c. Request For Proposal Approach

d. System validation


Q37:______________is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention.

a. Electronic Data Intermission

b. Electric Data Interchange

c. Value Added Network

d. Electronic Data Interchange


Q38: Which of the following is not a part of EDI Implementation:

a. EDI Standards

b. Dynamic Enterprise Modeling

c. Translation software

d. EDI Value Added Network Services


Q39: Which of the following is not an EDI Standard:

a. The UN-recommended UN/EDIFACT

b. The US standard ANSI ASC X12 (X12)

c. The ODETTE standard used within the European automotive industry

d. The CSMA/CD standard


Q40: In EDI terminology, organizations that send or receive documents between each other are referred to as________.

a. Talking Organizations

b. Trading Partners

c. Hubs

d. Remote Centers



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