Deck 6: Supporting Processes with ERP Systems

Question 1

ERP is so named because it attempts to integrate all the resources of an enterprise into a single information system.

Answer 1

True

Question 2

JIT synchronizes manufacturing and the supply of materials.

Answer 2

True

Question 3

The primary purpose of an ERP system is to enable a gradual move to an EAI system.

Answer 3

False

Question 4

Converting to an EAI system is more disruptive than converting to ERP.

Question 5

The major benefit of an EAI system is that it enables organizations to use existing applications.

Question 6

With information silos, the data needed by one process are stored in an information system designed and used in another process.

Question 7

For a product to be considered a true ERP product, it must include applications that integrate the processes in SCM, manufacturing, CRM, HR, and accounting.

Question 8

An EAI system appears as an integrated database to the user.

Question 9

An ERP product is a suite of software, a database, procedures and a set of processes for supporting business operations with a single, consistent, information system.

Question 10

ERP and EAI systems are referred to as enterprise systems.

Question 11

SCM includes procurement, sales order processing, inventory management, supplier management, and other related activities.

Question 12

The Sarbanes-Oxley Act compelled companies to exercise greater control over their financial processes.

Question 13

An EAI system tackles the problem of information silos by providing layers of software that connect information systems together.

Question 14

Material requirements planning provided financial-tracking capabilities and the opportunity to schedule equipment and facilities.

Question 15

Accounting includes activities such cash management and fixed-asset accounting.

Question 16

Information silos create islands of automation that increase the efficiency and effectiveness of processes and make process integration easy.

Question 17

An EAI system uses a centralized database.

Question 18

In the 1970s, manufacturing companies used a software called material requirements planning to efficiently manage inventory, production, and labor.

Question 19

CRM includes activities such as manufacturing scheduling, capacity planning, quality control, and other related activities.

Question 20

Businesses used information systems to support their processes well before the Internet was invented.

Question 21

Implementing an ERP system is harder for an organization that hasn't implemented some type of enterprise system in the past.

Question 22

Companies of different sizes have one very important difference that has a major impact on ERP: the availability of skilled business and IT analysts.

Question 23

Application code can be added to any ERP implementation using specific application languages such as Java.

Question 24

A systems analyst writes additional code where necessary for implementing an ERP system.

Question 25

An ERP solution cannot be partially implemented.

Question 26

Midsize organizations have a full IT staff that is headed by the chief information officer.

Question 27

The people involved with an ERP system fall into three roles: users, engineers, and analysts.

Question 28

The configuration decisions that implementation teams must make are usually about item identifiers, order size, and the structure of the BOM.

Question 29

One of the shortcomings of using an ERP product is that data sharing does not occur in real time.

Question 30

Currently, most ERP products are rented, stored on cloud vendor hardware, and paid for by use.

Question 31

Custom software is expensive both initially and in the long-term because it is not guaranteed to work with newer versions of ERP software.

Question 32

If a new ERP customer has requirements that cannot be met via configuration, then the customer must turn to an EAI system.

Question 33

The modularity of a database refers to the impact on its overall structure if tables are added or removed.

Question 34

In the context of an ERP system, users and analysts are both employees of the firm implementing the system.

Question 35

An ERP solution contains a company's actual operational data.

Question 36

The customization of ERP software to meet customer requirements without changing program code is called configuration.

Question 37

Relational databases are modular.

Question 38

In the context of an ERP system, an analyst works for the ERP vendor or a third party and helps budget, plan, train, configure, and implement the system.

Question 39

An architect is the high-level planner of an information system who ensures the compatibility of technology and directs technology toward strategic goals.

Question 40

Small organizations expand IT from one person to a small staff, but frequently this staff is isolated from senior-level management.

Question 41

Oracle is the gold standard of ERP products and offers the most expensive of ERP products.

Question 42

Which of the following is a function of an EAI system?

A) It provides segregated data.
B) It modifies existing departmental information systems.
C) It requires the implementation of new information systems.
D) It enables a gradual move to ERP.

Question 43

The major benefit of an EAI system is that it ________.

A) provides greater returns than an ERP system
B) utilizes centralized databases
C) enables organizations to use existing applications
D) requires the use of formalized procedures

Question 44

________ synchronizes manufacturing and supply-manufacturing occurs just as raw materials arrive.

A) Just-in-case manufacturing
B) Just-in-time delivery
C) Material requirements planning
D) Manufacturing resource planning

Question 45

International ERP solutions are designed to work with multiple currencies.

Question 46

An enterprise application integration product is ________.

A) a suite of software applications that tackles the information silo problem by providing layers of software that connect information systems together
B) a suite of software, a database, procedures and a set of processes for supporting business operations with a single, consistent, information system
C) a strategy that uses business process management to radically enhance the customer service experience
D) a suite of applications, a database, and a set of inherent processes for managing all the interactions with a customer, from lead generation to customer service

Question 47

The primary purpose of an ERP system is ________.

A) customization
B) duplication
C) integration
D) customer acquisition

Question 48

SAP produces and sells cost-specific platforms to speed up the configuration process.

Question 49

Which of the following activities is included in supply chain management?

A) sales prospecting
B) bill of materials
C) inventory management
D) quality control

Question 50

A configuration is a distinct and logical grouping of processes.

Question 51

Intel and AMD are some of the top vendors of ERP products.

Question 52

Which of the following federal laws required companies to exercise greater control over their financial processes?

A) the Gramm-Leach-Bliley Act
B) the Volstead Act
C) the Tower Amendment
D) the Sarbanes-Oxley Act

Question 53

By the 1970s, manufacturing companies began to use a software called ________ to efficiently manage inventory, production, and labor.

A) enterprise application integration
B) enterprise resource planning
C) business performance management
D) material requirements planning

Question 54

The SAP Business Suite runs on an application platform called NetSuite.

Question 55

Prior to SAP, early ERP programs were customized products where companies wrote their own programs to support their own processes.

Question 56

Infor is known primarily for its retail-oriented ERP software.

Question 57

An IT analyst is a business and IT professional who sits on the executive board and is an active participant in organizational strategic planning.

Question 58

All the ERP products of Microsoft Dynamics are well integrated with Microsoft Office and Microsoft's development languages.

Question 59

________ occur(s)when data are isolated and replicated in separated information systems.

A) Information silos
B) Automation
C) Encapsulation
D) Metadata publishing

Question 60

Which of the following statements is true about an EAI system?

A) It utilizes a centralized database.
B) It provides users with access to metadata files that describe the location of an organization's data.
C) It appears as an integrated database to the user.
D) It prohibits information silos from communicating with each other and sharing data.

Question 61

Which of the following activities is included in customer relationship management?

A) procurement
B) marketing
C) bill of materials
D) payroll

Question 62

Which of the following is an organizational benefit of using an ERP product?

A) It controls the unionization of labor.
B) It facilitates data sharing in real time.
C) It creates an island of automation.
D) It promotes the duplication of data.

Question 63

A(n)________ writes additional code where necessary for implementing ERP systems.

A) developer
B) project manager
C) architect
D) user

Question 64

The inherent processes defined in an ERP solution are also known as ________.

A) database transactions
B) stored procedures
C) transaction logs
D) process blueprints

Question 65

The ________ specifies the raw materials, quantities, and subassemblies needed to create a final product.

A) bill of material
B) bill of lading
C) item identifier
D) inventory list

Question 66

A(n)________ is a high-level planner of IS who ensures compatibility of technology and directs technology toward strategic goals.

A) developer
B) business analyst
C) architect
D) trainer

Question 67

A(n)________ defines objectives and organizes, plans, and leads the team that implements the ERP solution.

A) architect
B) project manager
C) systems analyst
D) business analyst

Question 68

Organizations are facing an ERP hardware dilemma as employees are increasingly using ________ to accomplish business activities and processes, including processes that interact with the company's ERP system.

A) smartphones
B) the Internet
C) teleconferencing
D) personal computers

Question 69

Which of the following activities is included in human resources?

A) capacity planning
B) call center support
C) benefits administration
D) cash management

Question 70

Which of the following challenges of implementing an ERP system is related to configuration decisions?

A) perceived threat to department autonomy
B) top management oversells capabilities
C) actions to be taken if the customer modifies the order
D) failure to specify objectives and measures for new processes

Question 71

Which of the following challenges of implementing an ERP system is people-related?

A) the structure of the bill of material
B) the order size
C) the approval of customer credit
D) the failure to specify objectives for new processes

Question 72

The ________ is a business and IT professional who heads the IT staff in large organizations, sits on the executive board, and is an active participant in organizational strategic planning.

A) CEO
B) CIO
C) COO
D) CFO

Question 73

Which of the following industries was one of the first major customers of ERP?

A) the education industry
B) large aerospace manufacturers
C) large alcohol breweries
D) the retail industry

Question 74

A ________ works for the ERP vendor or a third party and helps budget, plan, train, configure, and implement an ERP system.

A) user
B) consultant
C) systems analyst
D) business analyst

Question 75

A ________ understands the technical aspects of ERP and helps plan, configure, and implement an ERP system for company use.

A) trainer
B) project manager
C) systems analyst
D) developer

Question 76

ERP vendors sometimes train an organization's users to become in-house trainers in training sessions called ________.

A) train the trainer
B) training simulation
C) on-the-job training
D) virtual hands-on training

Question 77

The customization of ERP software to meet different customer requirements without changing the program code is called ________.

A) modularity
B) configuration
C) automation
D) process blueprinting

Question 78

Which of the following is NOT included in an ERP solution?

A) database design
B) operational data
C) initial configuration data
D) stored procedures

Question 79

Who are the top two ERP vendors?

A) Epicor and Oracle
B) Oracle and SAP
C) Epicor and Infor
D) Microsoft Dynamics and SAP

Question 80

Which of the following statements is true of small organizations?

A) They expand IT from one person to a small staff, but frequently this staff is isolated from senior-level management.
B) They employ only one or two IT analysts who not only manage the ERP system, but also the entire IS department.
C) They employ several IT analysts to manage the ERP system.
D) They have a well-staffed IS department, with distinct roles for IT personnel.