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Enterprise Resource Planning Exercise

Enterprise resource planning (ERP) systems integrate data across a company into a single system that supports all business functions. ERP systems streamline processes that were previously handled by legacy systems. Key advantages of ERP include data integration and visibility. However, ERP implementation is a complex process that requires significant time and financial investment. Successful ERP requires mapping current processes, identifying areas for improvement, and aligning the new system with optimized processes.

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228 views7 pages

Enterprise Resource Planning Exercise

Enterprise resource planning (ERP) systems integrate data across a company into a single system that supports all business functions. ERP systems streamline processes that were previously handled by legacy systems. Key advantages of ERP include data integration and visibility. However, ERP implementation is a complex process that requires significant time and financial investment. Successful ERP requires mapping current processes, identifying areas for improvement, and aligning the new system with optimized processes.

Uploaded by

ali abbas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Enterprise Resource Planning

Chapter#1
1. What is an ERP system?

Enterprise resource planning (ERP) systems are business systems that integrate and
streamline data across the company into one complete system that supports the needs
of the entire enterprise. ERP systems are designed to enhance all aspects of key
operations, such as purchasing, accounting, manufacturing, and sales,

2. How are ERP systems different from legacy systems?

Enterprise resource planning (ERP) systems are business systems that integrate and
streamline data across the company into one complete system that supports the needs
of the entire enterprise. ERP systems are designed to enhance all aspects of key
operations, such as purchasing, accounting, manufacturing, and sales, by taking
processes and functions that were previously disjointed and supported by various legacy
systems, or older, standalone, disparate business systems, and seamlessly integrating
and coordinating them. The foundation of an ERP system is a well- structured database
that serves the operational and decision-making needs of the entire enterprise.

3. What are advantages of ERP systems? Disadvantages?

Advantage ERP System


• ERP systems provide many advantages to companies. One of the main advantages is
data integration.
• In ERP systems, data is captured once and shared across the enterprise, reducing the
risk of inaccuracies and redundancies in data and eliminating time wasted in checking,
rechecking, and reconciling data.
• ERP systems even simplify the error correction process; if a mistake is made, it only has
to be corrected once.
• Data integration gives stakeholders the ability to gain better visibility into business
operations.
Disadvantage ERP System
• Implementing an ERP system involves much more than a simple installation of off-the
shelf software.
• It is a complex, time-consuming undertaking that can often involve a myriad of problems
along the way.
• Another disadvantage of ERP systems is their price tag, especially for software from the
well-known, larger ERP vendors.
• An ERP system and its implementation process may well be the most expensive
investment a company ever makes.
• For large companies, ERP systems can cost millions of dollars and take years to
implement.
• Employees may be quite comfortable with the legacy systems that they have used for
decades
4. How do ERP systems support industry best practices?

5. What are the differences among the three tiers that describe the ERP market?

Tier 1 ERP vendors sell ERP solutions to large, multinational corporations with more
than 1,000 employees and revenues greater than $1 billion (collectively known as the
enterprise space).
Tier 2 ERP vendors sell ERP solutions that are designed for mid-market companies,
which usually range in size from $50 million up to $1 billion in annual revenues and have
between 250 and 1,000 employees.
Tier 3 ERP vendors sell products that are designed for smaller companies that range in
annual revenues from $10 million to $50 million and have fewer than 250 employees.

Chapter #2

1 Explain the differences between mainframe and client-server architecture.

Client-server architecture.
 In the early 1990s, with the broad adoption of personal computing, client-
server computing emerged as an alternative to mainframe computing.
 Client-server computing is a computing model in which tasks and
workloads are partitioned between the client, which makes service requests,
and the more powerful server, which responds to the requests.
 The server is often called the back- end application, and the client is called
the front-end application; together they form a two-tier architecture.
 This type of computing model is known as distributed computing because it
consists of multiple software components on multiple computers that together
run as a single system.
 This advance in technology created the opportunity for hundreds of new ERP
vendors to enter the market.

Mainframe Architecture
 In Chapter 1, we discussed legacy systems, or older information systems that may not
easily “talk” to each other
 These systems are typically not based on current industry best practices and instead
are they focus on a certain functional area, versus being cross-functional.
 Mainframes have been around since the mid-1960s, and until the 1990s, they
provided the only adequate means of handling the data processing requirements of
large businesses.
 Some companies still maintain legacy systems built upon mainframe architecture.

2. What are the advantages of storing data in a relational database?

Before ERP systems, when business data was supported by legacy systems, data was
often duplicated. For instance, imagine a scenario in which sales, marketing, and
accounting departments have separate systems, each needing customer data.
 ERP systems use relational database management systems (RDBMS) to store
enterprise data. Since data is only entered once and shared across departments
and business units, the potential for errors and data duplication is reduced

3. What are the three types of database relationships? Give an example of each.

4. Discuss the advantages and disadvantages of customizing ERP software.


5. List reasons a company would want to employ cloud computing for its ERP system.

Chapter #3
1. How does reengineering relate to ERP?
2. Explain the pros and cons of clean slate versus technology enabled reengineering.
Clean slate reengineering
• Clean slate reengineering involves starting over from scratch and completely
redesigning a process.
• The benefit of clean slate reengineering is that this creativity can result in a competitive
advantage.
• The current process being analyzed is called the “as is” process. Next, process
designers will go through a learning process to create a vision for the future design of
the new business process, known as the “to be” process.
Technology Enabled Reengineering
• Use new technology to automate an old process.
• Use unique system because of competitors
• Use customization to make it unique
• When a company implements an ERP system, it is using technology enabled
reengineering. The last thing a company should do is implement an ERP system and
keep its old processes in place.

3. What is the difference between BPI and BPR?


Business process reengineering (BRP)
• Business process reengineering (BPR) is the fundamental, radical redesign of business
processes that an organization undertakes to achieve breakthrough performance in key
measures of cost, quality, speed, and service.
1) Clean slate reengineering
2) Technology Enabled Reengineering
Business process improvement
• Another method companies use to upgrade their business processes is called business
process improvement (BPI), which involves gradual improvement to business processes
over time.
• Whereas BPR is radical and revolutionary, BPI is incremental and evolutionary.
Six sigma
• Six Sigma is simply a process for solving a problem. It consists of five basic
phases: Define, Measure, Analyze, Improve, and Control.
4. List and describe several problems with business processes.
ANS
1) Authority Ambiguity
2) Bottle neck
3) Cycle Time
4) Data duplication
5) Handoff
6) Intermediaries
7) Manual step
8) Old way
9) Paper record
10) Quality control
11) Rework
5. Describe the steps in the BPI life cycle.

Chapter #4
1. What are the benefits of process mapping?

BOOK

2. What steps are involved in creating a process map?


Book
3. List the symbols used in a process map and explain their uses.
ANS
1) Activity
2) Decision point
3) Process flow line
4) Start/Stop
5) On-page connecter
6) Off-page connecter

4. Who are the important roles during process mapping and what do they do?
1. Process map facilitator
2. Process owner
3. Subject matter expert
4. Process implementer
5. Process evaluator
5. What are some tips for creating professional-looking process maps?
Chapter #5

1. What are the four stages in the ERP life cycle?


1) Planning
2) Package Selection
3) Implementation
4) Operational and maintenance
2. Explain the four business case rationales for an ERP system.
1) Technology Rationale
2) Competitive Rationale
3) Strategy Rationale
4) Business process Rationale
3. What are some decisions that the steering committee is responsible for regarding the
ERP project?
ANS

 Approve ERP system selection methodology.


 Select project manager(s) Approve subject matter experts Define and prioritize critical
success factors and key requirements.
 Approve potential ERP vendors Approve ERP vendor short list Approve ERP vendor
finalist Monitor implementation and resolve scope creep issues
4. List steps in the package selection stage of the ERP life cycle.
ANS
1) Requirement Analysis
2) Market Survey
3) Short listing
4) Request proposal
5) Domo Day
5) Fit/Gap Analysis
6) Reference visits
7) Vender Negotiation
5. How can the buyer ensure that an ERP software demo runs as smoothly as possible?

Chapter 6
1. What are the different types of testing performed during ERP implementations?

1 Data migration testing


2 Data mapping testing
3 Unit testing
4 Integration testing
5 User acceptance testing
6 Authorization testing
7 Performance load testing
2. What are the pros and cons of each ERP implementation strategy?
3. What does change management mean and why is it important in an ERP
implementation?
4. What are the various types of customizations that are performed during an ERP
System
8 Reports
9 Interface
10 Conversions
11 Enhancement
12 Forms

implementation? Hint: RICEF


5. What factors can help ensure a successful ERP implementation?

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