JEPPIAAR ENGINEERING COLLEGE

JEPPIAAR NAGAR, RAJIV GANDHI SALAI

CHENNAI- 600119

DEPARTMENT OF MANAGEMENT STUDIES

QUESTION BANK

SUBJECT : ENTERPRISE RESOURCE PLANNING FOR

MANAGEMENT (2008-2010)
SUBJECT CODE : BA1742

UNIT – I

2 Marks :-

1. What is ERP?
Enterprise resource planning (ERP) is a company-wide computer software system
used to manage and coordinate all the resources, information, and functions of a
business from shared data stores.
2. Write any two advantages and disadvantages of ERP systems.
Advantages :-

• Integration among different functional areas to ensure proper communication,

productivity and efficiency
• Design engineering (how to best make the product)

Disadvantages :-

• Customization of the ERP software is limited.

• Re-engineering of business processes to fit the "industry standard"
prescribed by the ERP system may lead to a loss of competitive
advantage.
3. What are the reasons for the explosive growth of the ERP market?
• They enable improved business performance by achieving : cycle time
reduction , Increased business agility , Inventory reduction , Order
fulfillment improvement etc.
• They support business growth requirements
• They help companies in supporting new products/product lines and new
customers by meeting their global requirements , including multiple
languages and currencies.

4.1
 • ERP systems provide flexible , integrated , real time decision support thus,
improving responsiveness across the organization and eliminating the
limitations in legacy systems like century dating issues , fragmentation of
data and processing , inflexibility to change , insupportable technologies
etc.
• ERP packages can now be afforded by even small and medium sized
business and offer increased functionality at a reasonable cost , support
client server/open systems technologies and support vertical market
solutions.
4. List down the problems tackled by ERP systems.
• Material Shortages
• Productivity Enhancements
• Customer Service
• Cash Management
• Inventory Problems
• Quality Problems
5. What are the Emerging Trends in ERP?
ERP systems were first created to manage and track inventory. Most companies
that have implemented ERP systems have generally seen improvements in their
asset utilization metrics. While ERP implementation requires great amounts of
time, money and effort, many companies have decided that the benefits of
implementation decidedly outweigh the costs. Since ERP systems have expanded
into back office systems (such as accounts payable, human resources, and order
entry), the effect on SG&A expense management is seen as well .
6. What is ERP lifecycle?
ERP Life Cycle is in which highlights the different stages in Implementation of an
ERP.
7. Who are the main players in the ERP market?
The main players are SAP AG , Peoplesoft , Oracle , Baan , JD Edwards , QAD ,
Ramco , IFS , Dataworks and so on.

16 Marks :-

1. Explain in detail about the History and Evolution of ERP.

ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements

Planning (MRP) II. From business perspective, ERP has expanded from coordination of
manufacturing processes to the integration of enterprise-wide backend processes. From
technological aspect, ERP has evolved from legacy implementation to more flexible
tiered client-server architecture.

4.2
 The following table summarizes the evolution of ERP from 1960s to 1990s.

Timeline System Description

1960s Inventory Inventory Management and control is the combination of
Management & information technology and business processes of
Control maintaining the appropriate level of stock in a warehouse.
The activities of inventory management include identifying
inventory requirements, setting targets, providing
replenishment techniques and options, monitoring item
usages, reconciling the inventory balances, and reporting
inventory status.
1970s Material Materials Requirement Planning (MRP) utilizes software
Requirement applications for scheduling production processes. MRP
Planning (MRP) generates schedules for the operations and raw material
purchases based on the production requirements of finished
goods, the structure of the production system, the current
inventories levels and the lot sizing procedure for each
operation.
1980s Manufacturing Manufacturing Requirements Planning or MRP utilizes
Requirements software applications for coordinating manufacturing
Planning (MRP II) processes, from product planning, parts purchasing,
inventory control to product distribution.
1990s Enterprise Resource Enterprise Resource Planning or ERP uses multi-module
Planning (ERP) application software for improving the performance of the
internal business processes. ERP systems often integrates
business activities across functional departments, from
product planning, parts purchasing, inventory control,
product distribution, fulfillment, to order tracking. ERP
software systems may include application modules for
supporting marketing, finance, accounting and human
resources.

2. Discuss the various steps of ERP implementation.

Refer Text Book ERP by Vinod Kumar Garg , N.K Venkitakrishnan Page
No( 46-49)
3. Define the terms Tangible and Intangible Benefits. Compare the tangible and
intangible benefits of ERP.
• Better Customer Satisfaction
• Improved Vendor Performance
• Increased Flexibility

4.3
• Reduced Quality Cost
• Improved Resource Utility
• Improved Information Accuracy & Integrity
 • Improved Decision – Making Capability
• Best Business Practices in the world
• Better Solution in terms of E-commerce.

4. Explain the Scope of ERP systems.

Financials:
• Financial Accounting
• Treasury Management
• Enterprise control
• Asset Management
Logistics:
• Production Planning
• Materials Management
• Plant Maintenance
• Quality Management
• Project Systems
• Sales & Distribution
Human Resource:
• Personal Management
• Training & Development
• Skill Inventory
Work Flow:
• Flexible Assignment of Tasks & Responsibilities.
5. Explain about Functional Modules of ERP software.

ERP software is made up of many software modules. Each ERP software module
mimics a major functional area of an organization. Common ERP modules include
modules for product planning, parts and material purchasing, inventory control, product
distribution, order tracking, finance, accounting, marketing, and HR. Organizations often
selectively implement the ERP modules that are both economically and technically
feasible.

ERP Production Planning Module

In the process of evolution of manufacturing requirements planning (MRP) II into ERP,

while vendors have developed more robust software for production planning, consulting
firms have accumulated vast knowledge of implementing production planning module.
Production planning optimizes the utilization of manufacturing capacity, parts,
components and material resources using historical production data and sales forecasting.

4.4

ERP Purchasing Module

Purchase module streamline procurement of required raw materials. It automates the
processes of identifying potential suppliers, negotiating price, awarding purchase order to
the supplier, and billing processes. Purchase module is tightly integrated with the
inventory control and production planning modules. Purchasing module is often
integrated with supply chain management software.

ERP Inventory Control Module

Inventory module facilitates processes of maintaining the appropriate level of stock in a

warehouse. The activities of inventory control involves in identifying inventory
requirements, setting targets, providing replenishment techniques and options, monitoring
item usages, reconciling the inventory balances, and reporting inventory status.
Integration of inventory control module with sales, purchase, finance modules allows
ERP systems to generate vigilant executive level reports.

ERP Sales Module

Revenues from sales are live blood for commercial organizations. Sales module
implements functions of order placement, order scheduling, shipping and invoicing. Sales
module is closely integrated with organizations’ ecommerce websites. Many ERP
vendors offer online storefront as part of the sales module.

ERP Market in Module

ERP marketing module supports lead generation, direct mailing campaign and more.

ERP Financial Module

Both for-profit organizations and non-profit organizations benefit from the

implementation of ERP financial module. The financial module is the core of many ERP
software systems. It can gather financial data from various functional departments, and
generates valuable financial reports such balance sheet, general ledger, trail balance, and
quarterly financial statements.

ERP HR Module

HR (Human Resources) is another widely implemented ERP module. HR module

streamlines the management of human resources and human capitals. HR modules
routinely maintain a complete employee database including contact information, salary
details, attendance, performance evaluation and promotion of all employees. Advanced
HR module is integrated with knowledge management systems to optimally utilize the
expertise of all employees.

4.5