Deck 2: The Development of Enterprise Resource Planning Systems

Question 1

A best practice is the best,most efficient way of handling a certain business process.

Answer 1

True

Question 2

Individual information systems for each functional area in a company are known as silos.

Answer 2

True

Question 3

In the accompanying figure,data is entered into the system once and then used throughout the organization.

Figure 2-4 Data flow within an integrated information system

Answer 3

True

Question 4

The direct computer-to-computer exchange of standard business documents is known as EDI,or electronic data interchange.

Question 5

The capabilities of computer hardware doubling every 18 months is known as Gates' Law.

Question 6

The software that holds data in an organized fashion is known as a database management system,or a DBMS.

Question 7

Open architecture encourages software companies are encouraged to develop add-on software
products that can be integrated with existing software,such as SAP's R/3.

Question 8

Materials requirements prediction (MRP)software allows a plant manager to plan production and raw materials requirements by guess-timation.

Question 9

Scalability means that the capacity of a piece of equipment can be increased by adding new hardware.

Question 10

An ERP module is a module that automates a specific business function.

Question 11

SAP's goal was to develop a standard software product that could be configured to meet the needs of each company.

Question 12

An important consideration in minimizing the risk of fraud and abuse is defining limits on the dollar value of business transactions that certain employees can process.

Question 13

The functional model of business and management was useful for decades and is still the current school of thought.

Question 14

Silos of information are also known as stovepipes.

Question 15

Old systems are known as legacy systems.

Question 16

SAP expanded into international markets but kept the software in a single language,German,and a single currency,the Euro.

Question 17

The complex hardware and software that goes into an ERP system was not available until the 1970s.

Question 18

An ERP system allows data to be entered once,and then used throughout the organization.

Question 19

A company's level of data integration is highest when the company uses one vendor to supply all of its ERP modules.

Question 20

SAP's R/3 can only run on mainframe computers.

Question 21

The complex software and hardware required for ERP systems was not available until the

A)1960s
B)1970s
C)1980s
D)1990s

Question 22

____ is SAP's biggest competitor.

A)J.D.Edwards
B)PeopleSoft
C)Microsoft
D)Oracle

Question 23

One benefit of ERP systems is that ERP integrates people and data while eliminating the need to update and repair many separate computer systems.

Question 24

Individual information systems for each functional area in a company are known as:

A)silos
B)bagpipes
C)tubers
D)separated systems

Question 25

When a piece of equipment's capacity is exceeded,its capacity can be increased by adding new hardware.This is commonly known as:

A)adaptability
B)middleware
C)scalability
D)computability

Question 26

Which of the following modules in SAP ERP maintains production information?

A)SD
B)MM
C)PP
D)QM

Question 27

____ software allows a plant manager to plan production and raw materials requirements by working backward from the sales forecast.

A)DBMS
B)EDI
C)MRP
D)EFT

Question 28

Not every company is a good match with the constraints inherent in ERP.

Question 29

A large company will likely spent $1 million on ERP implementation,which includes software and training.

Question 30

Which R/3 module records sales orders?

A)SD
B)MM
C)PP
D)QM

Question 31

Which ERP package is a popular software choice for managing human resources and financial activities at universities?

A)SAP
B)PeopleSoft
C)Microsoft Dynamics
D)J.D.Edwards

Question 32

Software ____ are individual programs that can be purchased,installed,and run separately,but extract data from the common database.

A)nodes
B)chunks
C)modules
D)tidbits

Question 33

A return on investment (ROI)is an assessment of an investment project's value,calculated by dividing the value of the project's benefits by the project's cost.

Question 34

In the 1980s,____,the technology that holds data in an organized fashion,existed for ERP development.

A)spreadsheets
B)DBMS
C)client/server architecture
D)word-processors

Question 35

Old information and computer systems are known as ______.

A)dinosaurs
B)passe systems
C)legacy systems
D)relics

Question 36

The observation that the number of transistors built onto a computer chip doubles every 18 months is known as:

A)Moore's Law
B)Gate's Prophesy
C)Doubletake
D)Acceleration

Question 37

The direct computer-to-computer exchange of standard business documents is known as:

A)MRP
B)e-mail
C)EDI
D)DDS

Question 38

In a process-oriented company,the flow of information and management activity is ______,in line with the flow of materials and products.

A)horizontal across functions
B)vertical from top level management down through the hierarchical management structure
C)vertical through functions
D)horizontal from marketing and sales to inventory and production

Question 39

SAP's internal programming language is Visual Basic.

Question 40

In ______,third-party software companies are encouraged to develop add-on software products that can be integrated with existing software.

A)open architecture
B)clip-ons
C)integrated pieces
D)piecemeal nodes

Question 41

After a company chooses the modules they want to implement,they must decide on ____ options,which allow the customer to customize the modules to fit their business to some extent.

A)settings
B)configuration
C)flexible
D)tandem

Question 42

A central-local computer arrangement is called ____________________ architecture.

Question 43

Which of the following is a benefit to running an ERP system?

A)Global integration
B)Elimination of updating and repairing multiple systems
C)Capability to manage operations,not just monitor them
D)All of the above are benefits

Question 44

Which of the following module in SAP is a set of tools that can automate the activities in SAP ERP?

A)Workflow
B)Controlling
C)Financial Accounting
D)Project System

Question 45

____________________ means that the capacity of a piece of equipment can be increased by adding new hardware.

Question 46

As part of the ______ process,a company can define any number of tolerance groups with a range of limits,and can then assign employees to these tolerance groups.

Figure 2-6 A customization example: tolerance groups to set transaction limits

A)manufacturing
B)development
C)configuration
D)programming

Question 47

An ERP system for a large company will cost ____,including software,training,and implementation.

A)$100-500 million
B)$1-5 million
C)$1-5 billion
D)$50,000-$500,000

Question 48

The ______ module helps the company manage fixed-asset purchases (plant and machinery)and related depreciation.

A)Plant Maintenance
B)Asset Management
C)Materials Management
D)Product Planning

Question 49

____________________ is the direct computer-to-computer exchange of standard business documents.

Question 50

The software that holds that data in an organized fashion,and that allows for the easy retrieval of data,is the ____________________.

Question 51

____________________ software allows a plant manager to plan production and raw materials requirements by working backward from the sales forecast.

Question 52

The prediction of future sales is the ____________________.

Question 53

SAP's internal programming language is called:

A)R/3
B)C++
C)Visual Basic
D)ABAP

Question 54

____________________ states that the number of transistors on a computer chip doubles every 24 months.

Question 55

When top management is queried on the reasons for implementing ERP systems,the overriding answer is ____.

A)cost saving
B)control
C)increased profitability
D)inventory management

Question 56

Which R/3 module records transactions in the general ledger?

A)CO
B)WF
C)FI
D)PS

Question 57

In ____________________,third-party software companies are encouraged to develop add-on software products that can be integrated with existing software.

Question 58

Bumpy rollouts of ERP systems are usually caused by:

A)software problems
B)people problems
C)hardware problems
D)configuration problems

Question 59

Originially,in English,SAP was an acronym for ____________________.

Question 60

One assessment of a project's value is calculated by the:

A)DVT
B)PMT
C)ROI
D)PPT

Question 61

Besides the fact that ERP systems are integrated information systems and lead to more efficient business processes,there are other benefits.Outline them.

Question 62

The accompanying figure depicts Moore's Law.What significance does this law have with regard to the development of ERP systems?

Question 63

____________________ help businesses customize the software to fit their unique needs.

Question 64

Discuss the reasons behind a bumpy rollout of an ERP system.Cite some real examples.

Question 65

R/3's design incorporates ____________________,which means that R/3 designers choose the best,most efficient ways in which business processes should be handled.

Question 66

SAP's internal programming language is ____________________.

Question 67

SAP's biggest competitor is ____________________.

Question 68

Describe how information is exchanged between lower operating levels in the business process model shown in the accompanying figure:

Figure 2-3 Information and material flow in a process business model

Question 69

Describe how information is exchanged between lower operating levels in the functional organization shown in the accompanying figure.

Figure 2-1 The actual increase in transistors on a chip approximates Moore's Law

Question 70

Old systems are known as ____________________.

Question 71

An assessment of an investment's project value that is calculated by dividing the value of the project's benefits by the value of the project's cost is known as a(n)____________________.

Question 72

Discuss the various costs associated with the implementation of an ERP system for a large company and for a midsize company.How long does implementation take?

Question 73

The ____________________ records sales orders and scheduled deliveries.Information about the customer (pricing,address and shipping instructions,billing details,and so on)is maintained and accessed from this module.

Question 74

When data are entered into the system,data in all related files in the ____________________ are automatically updated.