Deck 9: Enterprise Systems

Question 1

While integrated transaction processing system solutions have been developed for small and medium (SMEs), unfortunately, most of these have a high total cost of ownership and are difficult to install.

Answer 1

False

Question 2

With an online transaction processing (OLTP) system, each transaction is accumulated over a period of time and prepared for processing in a large batch of similar transactions.

Answer 2

False

Question 3

Small and medium size organizations do not employ enterprise systems.

Answer 3

False

Question 4

The bill of materials (BOM) serves as a recipe of ingredients needed to make each item an organization manufactures.

Question 5

A customer relationship management (CRM) system helps a company to plan, execute, and control all the activities involved in raw material sourcing and procurement, conversion of raw materials to finished products, and the warehousing and delivery of finished product to customers.

Question 6

Capturing and gathering all data necessary to complete the processing of transactions is called data collection.

Question 7

Transaction processing systems (TPSs) provide valuable input to management information systems, decision support systems, and knowledge management systems.

Question 8

Product lifecycle management (PLM) software and its data can be used by internal users only.

Question 9

Adoption of an enterprise resource planning (ERP) system enables an organization to eliminate several separate systems and replace them with a single integrated set of applications for the entire enterprise.

Question 10

Customer support, sales management, and contact management are key features of a customer relationship management (CRM) system.

Question 11

In an organization, transaction processing systems (TPSs) support routine operations associated with its business processes.

Question 12

An enterprise system ensures that the information needed for a single business function and all levels of management within that function is isolated.

Question 13

One of the primary benefits of implementing enterprise resource planning (ERP) is elimination of inefficient and outdated systems.

Question 14

An important step in processing transaction data is to check data for validity and completeness, a task called data correction.

Question 15

The data created by computer-aided design (CAD) cannot be shared with others.

Question 16

Implementation of an enterprise resource planning (ERP) system provides an organization with an opportunity to also upgrade the information technology that it uses.

Question 17

The individual application modules of an enterprise resource planning (ERP) system are designed to support best practices, the most efficient and effective ways to complete a business process.

Question 18

In the context of transaction processing activities, data editing involves reentering data that was not typed or scanned properly.

Question 19

Large organizations were the first to take on the challenge of implementing enterprise resource planning (ERP).

Question 20

Enterprise resource planning (ERP) systems operate via an integrated database, using one set of data to support all business functions.

Question 21

Using the hosted software model implies that a small business firm needs to employ a full-time IT person to maintain key business applications.

Question 22

A disadvantage of the hosted software model is increased total cost of ownership.

Question 23

With _____, business transactions are accumulated over a period of time for processing in a single unit.

A) online transaction processing systems
B) real-time transaction processing systems
C) on-demand processing systems
D) batch processing systems

Question 24

As an organization's purchasing systems generate purchase orders and the items ordered are received, information is sent to the _____ system to manage the amounts owed by the organization.

A) accounts receivable
B) accounts payable
C) invoicing
D) inventory control

Question 25

Effective use of an enterprise system requires changes in work processes and in the details of how work gets done.

Question 26

A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all business functions and all levels of management to support the running and managing of a business.

A) transaction processing system
B) enterprise system
C) procurement system
D) batch processing system

Question 27

In the context of purchasing systems involved in the traditional transaction processing systems, when a(n) _____ arrives from a supplier, it is matched to the original order and the receiving report, and a check is generated if all data is complete and consistent.

A) order
B) pick list
C) invoice
D) request for quotation

Question 28

_____ involves capturing and gathering all data necessary to complete the processing of transactions.

A) Data manipulation
B) Data editing
C) Date input
D) Data collection

Question 29

Small and medium-sized enterprises (SMEs) are exploring the use of hosted software model to acquire, use, and benefit from new technology even though it means extra complexity and high start-up costs.

Question 30

Accounts payable is an example of a(n) _____.

A) enterprise resource planning system
B) supply chain system
C) transaction processing system
D) value chain system

Question 31

Organizations frequently need to customize a vendor's enterprise resource planning (ERP) software to integrate other business systems.

Question 32

Which of the following types of processing is essential for businesses that require access to current data such as airlines, ticket agencies, and stock investment firms?

A) Batch processing
B) Multiple unit processing
C) Business intelligence processing
D) Online transaction processing

Question 33

A key to the success of implementation of an enterprise resource planning (ERP) system is to make the transition from the old way of doing things to the new way as quickly as possible.

Question 34

With _____, each transaction is processed immediately without the delay of accumulating transactions into a batch.

A) unit batch processing
B) online transaction processing
C) data editing
D) data mining

Question 35

The essential characteristic of a(n) _____ is that there is delay between an event and the eventual processing of the related transaction to update an organization's records.

A) online processing system
B) order processing system
C) transaction processing system
D) batch processing system

Question 36

Small and medium-sized enterprises (SMEs) are too small to achieve substantial business benefits from the implementation of an enterprise resource planning (ERP) system.

Question 37

The ability to capture and analyze all customer interactions, generate appropriate responses, and gather data to create and build effective and efficient marketing campaigns is known as contact management.

Question 38

A small and medium-sized enterprise (SME) is legally independent enterprise with _____ employees.

A) up to 500
B) more than 500 but less than 1000
C) more than 1000
D) up to 700

Question 39

The average enterprise resource planning (ERP) implementation cost is $5.5 million with an average project duration just over 14 months.

Question 40

Enterprise resource planning (ERP) systems work directly with manufacturing machines on the production floor.

Question 41

Purchasing uses information from the _____ to place purchase orders for raw materials with qualified suppliers.

A) sales and operations plan
B) materials requirement plan
C) detailed scheduling plan
D) sales ordering plan

Question 42

Payroll transactions and billing are typically done via _____.

A) grid processing
B) online transaction processing (OLTP)
C) online analytical processing (OLAP)
D) batch processing

Question 43

Which of the following statements is true of product lifecycle management (PLM) software?

A) It distributes data only to the employees of an organization.
B) It provides documents required for FDA and environmental compliance.
C) It secures data so that changes cannot be made early in the product design process.
D) It is frequently employed by non-manufacturing organizations.

Question 44

In a transaction processing system (TPS), a(n) _____ must track the flow of data related to all the cash flows that affect an organization.

Question 45

A customer relationship management (CRM) system helps a company in managing ______.

A) material sourcing and procurement
B) product development and manufacturing
C) distribution and accounting
D) human resources and finance

Question 46

In a manufacturing enterprise resource planning (ERP) system, _____ refines a production plan by determining the amount of weekly or daily production needed to meet the demand for individual products.

A) sales forecasting
B) sales and operations plan
C) detailed scheduling
D) demand management

Question 47

Many business application software vendors are pushing the use of _____ for small and medium-sized enterprise (SME) to help customers acquire, use, and benefit from new technology while avoiding much of the associated complexity and high start-up costs.

A) hosted software model
B) an enterprise resource planning (ERP) system
C) open source code
D) a customer relationship management (CRM) system

Question 48

Which of these is an advantage of the hosted software model?

A) Consistent reliability
B) Data security
C) Faster system start-up
​
D) Increased total cost of ownership
​

Question 49

_____ is the use of software to analyze the robustness and performance of components and assemblies.

Question 50

_____ is the use of software to assist in the creation, analysis, and modification of the design of a component or product.

A) Computer-aided design
B) Software-aided design
C) Application-aided design
D) Program-aided design

Question 51

A key feature of an enterprise system is that:

A) it helps a business function isolate information other functions and other levels of management.
B) it is exclusive to small and medium-sized enterprises (SMEs).
C) it employs a database of key operational and planning data that can be shared by all.
D) it is only used by large organizations.

Question 52

In the context of enterprise resource planning (ERP) systems, the most efficient and effective ways to complete a business process are called _____.

A) current approaches
B) streamlined processes
C) best practices
D) process improvements

Question 53

According to the classification of enterprise resource planning (ERP) vendors, _____ vendors target medium-sized firms with annual revenues in the $50 million to $1 billion range operating out of one or more locations.

A) Tier III
B) Tier II
C) Tier IV
D) Tier I

Question 54

In a transaction processing system (TPS), the _____ system is sometimes referred to as the lifeblood of an organization.

Question 55

Many organizations employ _____, which capture and process the detailed data necessary to update records about the fundamental business operations of an organization.

Question 56

With _____, transactions are accumulated for as long as necessary to meet the needs of the users of a system.

Question 57

_____includes the planning, executing, and controlling of all activities involved in raw material sourcing and procurement, converting raw materials to finished products, and the warehousing and delivering finished product to customers.

A) Maintenance, repair and operations (MRO)
B) Materials requirement planning (MRP)
C) Customer relationship management (CRM)
D) Supply chain management (SCM)

Question 58

Which of the following can help avoid common causes for failed enterprise system implementations?

A) Keeping the scope of a project fluid so changes can be easily incorporated
B) Minimizing the time and money spent on training people
C) Defining metrics to assess the progress of a project
D) Making a fast transition from the old way of doing things to the new system and new processes

Question 59

Manufacturing enterprise resource planning (ERP) systems follow a systemic process for developing a production plan that starts with _______ to develop an estimate of future customer demand.

A) cash flow forecasting
B) demand planning
C) inventory control
D) sales forecasting

Question 60

_____ involves reentering data that was not typed or scanned correctly.

A) Data editing
B) Data correction
C) Data manipulation
D) Data encryption

Question 61

As an alternative to expensive enterprise resource planning (ERP) systems, many organizations elect to implement _____ software that enable them to see and modify the source code to customize it to meet their needs.

Question 62

Data collection begins with a(n) _____.

Question 63

In the context of supply chain management (SCM), the _____ takes demand and current inventory levels into account and determines the specific product items that need to be produced as well as when to meet the forecast future demand.

Question 64

In the context of enterprise resource planning (ERP) system, a(n) _____ is a set of coordinated and related activities that takes one or more types of input and creates an output of value to the customer of that process.

Question 65

In enterprise resource planning (ERP) systems, retailers as well as manufacturers use _____ to match production to consumer demand and to allocate products to stores.

Question 66

_____ is used primarily by people in the sales, marketing, accounting, and service organizations to capture and view data about customers and to improve communications.

Question 67

In a transaction processing cycle, ______ involves updating one or more databases with new transactions in an organization.

Question 68

In supply chain management (SCM), a key decision in _____ is how long to make the production runs for each product.

Question 69

In the context of product lifecycle management (PLM) software categories, _____ is the production of distinct items such as autos, airplanes, furniture, or toys that can be decomposed back into their basic components.

Question 70

_____ can include classifying data, sorting into categories, performing calculations, summarizing results, and storing data in an organization's database for further processing.

Question 71

In supply chain management (SCM), the output of the demand management process is the _____, which is a production plan for all finished goods.

Question 72

Enterprise resource planning (ERP) systems evolved from _____ systems developed in the 1970s.

Question 73

In business, SME stands for _____.

Question 74

In a transaction processing cycle, capturing data at its source and recording it accurately in a timely fashion with minimal manual effort and in an electronic or digital form so that it can be directly entered into the computer is known as _____.

Question 75

_____ is a set of integrated programs that manage a company's vital business operations for an entire organization, even a complex, multisite, global organization.

Question 76

Implementation of an enterprise resource planning (ERP) system ensures good work processes based on _____.

Question 77

According to the classification of product lifecycle management (PLM) software, _____ involves the production of products that are the result of a chemical process such as soda, laundry detergent, gasoline, and pharmaceutical drugs that cannot be easily decomposed back into its basic components.

Question 78

In a customer relationship management (CRM) system, the ability to track data on individual customers and sales leads and then access that data from any part of an organization is known as _____.

Question 79

_____ is the use of software to control machine tools and related machinery in the manufacture of components and products.

Question 80

_____, one of the transaction processing activities, involves generating output records and reports.