Sikkim Manipal University DDE Master in Business Administration (MBA) Semester IV MI0038-Enterprise Resource Planning - 4 Credits Book ID:

: B1324 Model Question Paper Answers Keys Time: 2 hours Total Marks: 140

Section A 1 Mark Questions Answer all questions. Each question carries 1 mark 50 * 1= 50 Marks

1. _________ handling and sharing has become a vital process for efficient and effective working of any organisation. a. Material b. Resource c. Information d. Database 2. ________ became the fundamental concept of production management and control. a. BOM b. MRP c. ERP d. MRP II

3. In the _________, ERP packages were targeted at the manufacturing industry. a. 1970s b. 1990's c. 1980s d. 1960s 4. The _________ should plan well and execute perfectly the implementation of ERP. a. Organisation b. System developers c. Vendors d. Top Management 5. Which is one of the most critical steps in the ERP implementation? a. Creation of Organisational Model b. Creation of Integrated Data Model

c. Creation of Business Model d. Creation of Data Model 6. What is one of the key resources of every organisation, in todays competitive business environment? a. Employee b. Information c. ERP d. Database 7. When a customer needs to check the performance of the company before he places an order, which department has to be in a position to provide the necessary information? a. Production b. Quality c. Marketing d. Finance 8. In an integrated data model, what gives a snapshot of the organisation at any given time? a. ERP b. Database c. Management d. MIS 9. OLAP stands for: a. On-Line Analytical Processing b. On-Line Account Processing c. On-Line Arithmetic Processing d. On-Line Application Processing 10. Data mining is the process of identifying valid, new, potentially useful, and ultimately clear ______________ from databases. a. Decision b. Strategies c. Information d. Account 11. EIS stands for: a. Executive Interaction System b. Executive Interconnecting Systems c. Executive Information Systems d. Executive Instrumental Systems 12. DSS is quite _______________ and is available on request. a. Structured

b. Non-structured c. Semi-structured d. Unstructured 13. ERP system is built on a ____________ utilising a common computing platform a. Centralised database b. Individual databases c. Modular databases d. Centralised layout 14. Which of the following is an example for commercial ERP? a. ERP5 b. Microsoft Dynamics AX c. Compiere d. Fisterra 15. NPV is the abbreviation of a. Net Present Variation method b. Net Present Value method c. Neutral Present Value method d. Net Preventive Value method 16. ERP vendors usually design their systems around standard business processes, based upon ____________________ a. Business standards b. Global standards c. Best business practices. d. Best profitable standards 17. The _______ module's internal functions do not directly interact with the data or processes of other modules. a. Finance b. Quality Management c. Sales and Distribution d. Plant Maintenance 18. Which among the following systems can be assigned to a cost centre directly which illustrates the interface to the cost accounting system? a. FAPA b. Purchasing c. Sales and Distribution d. CASO

19. Which system provides the foundation for creating concurrent business processes across the supply chain and achieving Return on Assets (ROA) improvement? a. Finance b. Inventory c. Manufacturing d. Sales 20. The processes described in the quality manual can be implemented and automated in the EDP system. Here what does EDP stand for? a. Electronic Data Processing b. Electronic Dictionary Project c. Electrical Data Processing d. Employee Development Plan 21. Which of the following allows monitoring of all warehouse order scenarios such as the receipt and issue and transfer of inventory? a. Inventory planning b. Inventory reporting c. Inventory handling d. Inventory analysis 22. During the 80s, tools were developed to assist the planning of: a. Production levels b. Priority planning system c. Capacity requirements d. Planning functions 23. Complete the sentence: MRP-II systems provide a. Information that is useful to all functional areas and encourage cross-functional interaction. b. Information with cost data. c. Information that can be used for other company functions. d. Accurate inventory information. 24. ERP is restricted to being a _________operations system in the country. a. Finance b. Budgeting modules c. Manufacturing d. Transaction-oriented 25. ________________ allow companies to enter requirements for various types of items. a. Purchase order b. Purchase requisitions c. Invoice

d. General ledger 26. What is EDI? a. Electronic Data Interface b. Exchange Data Interchange c. Exchange Data Interface d. Electronic Data Interchange 27. _________ module supports the entire sales and purchase processes from start to finish. a. Order management b. Sales management c. Purchase management d. Master Data Management 28. ___________evaluates whether or not customer contract agreement are being met. a. Purchase order management b. Sales order management c. Master data management d. Warehouse management 29. ____________ maintains reports of warehouse supplies. a. ERP financial module b. b.ERP Inventory software module c. ERP Resource module d. ERP verification module 30. Web ERP is suitable for ____________. a. Both small and big organisations b. Only big organisations c. Medium scale organisations d. Only small organizations 31. RFP stands for ____________________. a. Request For Productivity b. Request For Profits c. Request For Processing d. Request For Proposal 32. Installing ERP Inventory systems is ____________ . a. Simple b. Trouble free c. Complex d. Cost effective

33. In recent years, CRM has become a primary component of: a. ERP vendors b. ERP software solutions c. CRM software d. CRM solutions 34. ____________is the most common operating system for running CRM software a. UNIX b. Windows NT c. Windows Vista d. Windows XP 35. __________ module keeps track of liquidation process. a. Market management module b. Liquidation module c. Treasury module d. Enterprise management module 36. ____________ system maintains employees information in graphical format. a. Employee master data b. Personnel administration c. Payroll accounting d. Benefits administration 37. Which of the following is a computer-based system that optimises the collection, collation, transfer and presentation of information throughout an organisation? a. DPS b. DSS c. IDSS d. MIS 38. ETO means a. Engineer-to-Order b. Engineer-to-Offer c. Enterprise-to-Order d. Enterprise-to-Offer 39. The vendor should have a _______, who must constantly interact with the implementation team. a. Liaison officer b. Project Supervisor c. Project Manager d. Implementation co-ordinator

40. Identify the correct statement. a. The only problem with the package vendors is that they are very expensive. b. The only problem with the business consultants is that they are very expensive. c. The only problem with the employee training is that it is very expensive. d. The only problem with the planning of implementation is that it is very expensive. 41. When ERP system is introduced in a company, many employees find the transformation difficult to accept because of: a. Employees who were earlier doing the work of recording information are transformed into decision-makers. b. Of fear of employment. c. They fear that ERP systems will revolutionalise the way they live and work. d. The employees are not given proper training. 42. The package should be _________ and should have installations in countries where the company has offices. a. Domestic b. International c. Regional d. National 43. The ________ should be a replica of the organisations business processes. a. MSI b. EPR c. MIS d. ERP 44. Which of the following is a decision support system especially made for senior-level executives? a. EIS b. DSS c. ERP system d. Data mining 45. __________ provides solution in handling the inventory of an organisation? a. Quality management b. Materials management c. Sales and distribution d. Plant maintenance 46. Identify one of the features of purchase module from the following. a. Capturing employee requirement b. Capturing material requirement c. Disabling quality inspection of goods

d. Creating quotations from same suppliers 47. Following are the major benefits of ERP purchase model, except: a. Reducing operational cost b. Increasing operational cost c. Streaming purchase processes d. Accessing mission-critical information 48. One common mistake that companies resort when selecting an ERP system is: a. Non biased selection b. Over-emphasis on system cost c. Complete set of requirements d. Not relying on vendor demos 49. The sales and distribution modules of many ERP vendors, offer a comprehensive set of best of its kind components for both order and _______ management. a. Manufacturing b. Sales c. Business d. Logistics 50. Which of the following are collected and archived in a manner that offers full support for statistical process control techniques? a. Product quality metrics b. Manufacturing quality metrics c. Production quality d. Financial metrics

Section-B Answer all questions. Each question carries 2 marks

25 * 2 = 50 Marks

51. Identify the correct statements. 1. The manufacturing segment accounts for nearly 25% of the total Information Technology 2. The process and discrete manufacturing segments spent a total of Rs 2,605crore on IT in the year 1996-97. 3. The manufacturing segment helps in improving IT infrastructure, automating internal and external processes, and better decision-making. 4. Discrete manufacturing accounted for nearly 15% of the total segment spending and the rest came in from process manufacturing. a. 1 & 4 b. 2 & 3

c. 1 & 3 d. 2 & 4 52. Identify the two aims of JIT approach applied to the organisation. 1. Production system 2. Elimination of Waste 3. Total Employee Involvement 4. Production philosophy a. 1 & 2 b. 2 & 3 c. 1 & 4 d. 3 & 4 53. Which among the following information is available in the Supplier file? 1. Purchasing information 2. Payment terms 3. Tolerance for receiving and invoicing 4. Addresses a. b. c. d. 1 3&4 1, 2, 3 & 4 2&3

54. The Sales Support component helps the _____________department to__________. a. Sales and marketing, support existing customers only b. Sales and advertising, support in developing new business c. Advertising and marketing, support existing customers but help to develop new business. d. Sales and marketing, support existing customers and, at the same time, to develop new business. 55. The two major activities associated with ERP inventory management are: a. Customising information and identifying inventory requirements b. Integrating the inventory balances and customising information c. Identifying inventory requirements and monitoring item usages d. Customising information and monitoring inventory balances 56. Select the modules that decide the inputs required and suppliers for delivery? 1. Inventory placing 2. Inventory order assessment 3. Inventory requisition 4. Supplier Performa

a. b. c. d.

1,4 4,2 3,2 4,3

57. CRM yields employees with ______________ and improves personal ___________ efficiencies a. Work, work advantage b. Customisation, work c. Work advantage, work d. Customisation, work advantage 58. Identify the right answer. The two major objectives of Human Resources are: 1. To provides instant updates of information. 2. To make the workflow cost effective. 3. To provide training to the employees. 4. To provide self service benefits to the employees. a. b. c. d. 2,3, 4,1, 2,4 1,3

59. As processes become more automated and efficient, a. It is best to treat ERP as an investment as well as a cost-cutting measure. b. It is not best to treat ERP as an investment as well as a cost-cutting measure. c. It is best to treat ERP as a disinvestment as well as a cost-cutting measure. d. It is best to treat ERP as an investment but not as a cost-cutting measure. 60. The ____________________ and ____________________ manage the supplier relations, monitor the vendor activities and manage the supplier quality in an organisation. a. Supplier management, customisation processes b. Supplier maintenance, control processes c. Supplier management, control processes d. Supplier maintenance, customisation processes 61. The direct benefits of an ERP system include: a. Business integration, Flexibility, Improved customer goodwill, Customer satisfaction. b. Business integration, Better analysis and planning capabilities, Flexibility, Use of latest technology. c. Better analysis and planning capabilities, Flexibility, Use of latest technology, Customer satisfaction.

d. Improved customer goodwill, Customer satisfaction, Use of latest technology, Flexibility. 62. Identify the correct statement (s) about MIS. 1. A system that produces information products that support many of the day-to-day decision making needs of the management. 2. Also called information managing system. 3. A system that satisfies the needs of the top level management. 4. A system that operates at a departmental level. a. b. c. d. 2&3 1&4 4 1, 2 & 3

63. An ideal interface for an EIS would be the one that is: 1. Complex to use 2. Highly flexible 3. Provides inconsistent performance 4. Reflects the executives world a. b. c. d. 1, 2 only 1, 3 only 2, 4 only 3, 4 only

64. _____ is the last activity before the _________ phase of an ERP implementation. 1. Data archiving, initiation 2. Data migration, production 3. Data archiving, implementation 4. Data migration, implementation 65. Identify the subsystems of Plant Maintenance module of an ERP system: 1. Component Tracking 2. Preventive Maintenance Control 3. Inventory Management 4. Cost Management a. b. c. d. 1, 3 only 2, 3 only 1, 2 only 1, 4 only

66. Identify the main components of PDM systems.

1. 2. 3. 4. a. b. c. d.

Data Management Classification of Components Product features Document relationships 1, 2 only 1, 4 only 2 , 3 only 4, 3 only

67. Sub modules of Sales and Distribution modules are: 1. Order Management 2. Warehouse Management 3. Domestic Trade a. b. c. d. 3 only 1, 2 only 2, 3 only 1, 2, and 3

68. Which of the following statements aptly refer to the terms material issue and material receipt? a. Stock is verified mechanically and appeal for materials is made from various departments. b. Appeal for materials is made from various departments and materials are issued as per order c. Stock is verified mechanically and materials are issued as per order d. Materials are issued as per order and a receipt is issued from the seller. 69. Components of a CRM system are: 1. Users 2. Hardware and Operating Systems 3. Purchasing processes 4. ERP software a. 3, 2 only b. 1 and 2 only c. 2 only d. 1, 3 only 70. Consider the following statements: (i) HRM defines enterprise planning for work and job roles with respect to specific language. (ii) HRM defines staff selection and decides various phases of the project according the policies of the company.

State True or False: a. (i)False,(ii)True b. (i)False,(ii)False c. (i)True,(ii)True d. (i)True,(ii)False 71. Which of the following are the features of ERP inventory management? a. Extensive verification of stock and reducing the threat of loss of information b. Reducing the threat of loss of information and limited customization c. Quality control based on QC Parameters and extensive verification of stock d. limited customization and quality control based on QC Parameters 72. Which of the following are examples of internal and external costs of topological categories? a. Cost of inspecting upon arrival and costs of scrap b. Design and development of new quality equipment c. Warranty claims and cost of inspecting upon arrival d. Costs of scrap and warranty claims 73. World Software automatically allows the user to: 1. Selectively mix, match and integrate software applications. 2. Hardly modify it to ongoing business, global and organisation-specific requirements. 3. Maximise productivity by shrinking the amount of training users need. 4. Add World Vision, its advanced graphical user interface. a. 1, 3 only b. 2, 3 only c. 1, 2 only d. 1, 4 only 74. Consider the following statements: (i) The company can develop the training and testing environment for the implementation team as they acquire the package. (ii) There is no need to provide the in-house experts a through training on the features of the package. State True or False: a. (i)False,(ii)True b. (i)True,(ii)True c. (i)False,(ii)False d. (i)True,(ii)False 75. Consider the following statements: (i) BAPIs can be called as sets of methods that never allow external applications to collaborate with specific R/3 business objects.

(ii) BAPIs give flexibility to the second party application vendors to build supporting applications for the R/3 system. State True or False: a. (i)False,(ii)True b. (i)True,(ii)False c. (i)True,(ii)True d. (i)False,(ii)False

Section-C Answer all the following questions. (Descriptive questions to be answered in not more than 200 words) 10Marks x 4= 40Marks
Sl. No. Questions Discuss the components of Customer Relationship Management. (5 Marks) Refer unit 9, section 9.2.1 Explain about the SAP advantage. (5 Marks) Refer unit 13, section 13.3.3 Discuss about the importance of Enterprise Resource Planning in the manufacturing industry. (5 marks) Refer Unit 6, section 6.2 b) Discuss about ERP software selection criteria. (5 marks). Refer Unit 4, Section 4.3.1 Marks (10 Marks)

76. a)

b) 77. a)

(10 Marks)

Aarogya Pharmacy Pvt Ltd is a pharmaceutical company which is located in one of the metropolitan cities. It has five production plants all over the country and the head office is located at XYZ city. Every plant maintains the details of the drugs manufactured in their plant in excel sheets. Every plant is specialized for manufacturing few specific drugs along with some generic ones. If any vendor wanted drugs, they had to approach/call head office and place an order. The head office members would then contact all the plants one by one to know the stock position of the ordered drugs. If it was available in any of the plants, they would be packed and transported to the head office from where it would be delivered to or collected by the vendors. If it was not readily available, then the order would be completed once the stock was available. Sometimes in emergency situations when vendors needed certain drugs, the company lost time in collecting information from plants about the stock details. This resulted in vendors getting irritated and leaving the premises. One of the marketing managers, Shubham, suggested to the management that implementing ERP would solve this problem. The management also agreed that the current process was very complex

and time-consuming and every time they may not have the luxury of following it. Shubham was given the responsibility of finding a firm that provided IT solutions. Shubham suggested that Techno Soft Solutions Pvt. Ltd., could provide a solution to their problem. A consultant from the firm came and validated that ERP was the best solution for them. He also suggested that in ERP, SAP was the best module. He told that their firm had over 2000 SAP licences, a help desk, highly educated employees and an organisational management for user support. Almost all manufacturing companies are using SAP software. The main reason for using SAP is that it provides high security and reduces the burden of maintaining data in the form of files. The consultant suggested that they need to consolidate all the information related to stocks. To this effect, Shubham assigned a few stock managers the task of collating information related to all drugs being manufactured in all the plants. They were categorised as generic and specific and this information was to be maintained in a centralised system or server in the head office. However, to implement this, every plant had to maintain the daily production details in the client system in their respected plants. Once these things were in place, the data was fed into the system, and any updation or change made could be accessed by the concerned head office members. The information of how much stock each plant had and the facility to transact online gave the head office a new boost. Things moved quickly as placing orders and procuring things became easier.

To answer the questions for this case you should know the concepts of steps in ERP implementation (unit 11, section 11.2), benefits of ERP (unit 12) 78. a) Discuss about the problems faced by Aarogya Pharmacy with respect to information of drugs.(5 marks) (10 Marks) b) What are the different steps in ERP implementation? (5 marks) 79. c) d) What are the benefits of implementing the ERP system? (5 (10 Marks) marks) Discuss how Aarogya Pharmaceutical benefitted by implementing ERP? (5 marks)