BSc.

(Hons) Software Engineering

Cohort: BSE/10A/FT

Examinations for 2012 2013

Semester 2
MODULE: ENTERPRISE RESOURCE PLANNING

MODULE CODE: ISM3101

Duration: 2 Hours 30 Minutes

Instructions to Candidates:

1. Attempt All Questions.

2. Questions may be answered in any order but your answers must
show the question number clearly.
3. Always start a new question on a fresh page.
4. All questions carry equal marks.
5. Total marks 100.

This question paper contains 4 questions and 5 pages.

Page 1 of 5
Enterprise Resource Planning (ISM3101) SITE/EU 2012-2013 S1
QUESTION 1: (25 Marks)

Enterprise Resource Planning (ERP) programs are software used by companies to

manage information in every area of the business. ERP programs help manage
company-wide business processes using a common database and shared
management reporting tools. ERP software supports the efficient operation of
business processes by integrating activities throughout a business.

(a) Distinguish between a business function and a business process. Provide an

example to illustrate your point. (8 Marks)

(b) Why do managers today try to think in terms of business processes rather than
business functions? (4 Marks)

(c) Most companies have four main functional areas:

Marketing and Sales (M/S)
Supply Chain Management (SCM)
Accounting and Finance (A/F)
Human Resources (HR)

Each main functional area consists of a number of narrower business functions

specific to the functional area.

(i.) Assume you are the marketing manager of a new upcoming firm that sells
Chocolate bars. What data do you require from both Accounting and Finance
and Supply Chain Management to do your job properly?
(4 Marks)

(ii.) Assume you are the chief financial officer of the company that sells the
Chocolate bars. You need detailed records to report your financial status to
the government. What functional areas provide that information that would
help you complete your report?
(5 Marks)

(iii.) Assume you are the Human Resource Manager of the company that sells
the Chocolate bars. Your job is vital because your employees are the main
asset to your firm. What information do you need from each functional area to
ensure proper staffing of the production line? (4 Marks)

Page 2 of 5
Enterprise Resource Planning (ISM3101) SITE/EU 2012-2013 S1
QUESTION 2: (25 Marks)

(a) Using integrated software to manage all functional areas of a business seems
obvious today, but it was not technically feasible until the 1990s. Describe three
factors that have contributed to the development of the ERP System.

(3 Marks)

(b) Define Moores Law and explain why it is significant in the development of ERP
Systems.

(4 Marks)

(c) Imagine that you have a job interview with the owner of a Chocolate
manufacturing company that employs about 600 people. The owner of the
company has heard about ERP, but he hasnt done any research on it. During the
interview, he asks you, Do you think we need an ERP system?.

(i.) How will you argument the question with him?

(3 Marks)

(ii.) What question might you ask to help him think about ERP in his
company? List your response and questions.

(3 Marks)

(d) Describe how the SAP R/3 system simplifies looking up customer numbers,
setting a delivery date, and charging a unique price to a given customer.

(6 Marks)

(e) What is a master data and why master data is an important part of an ERP?
Support your answer with appropriate examples using the SAP R/3 System.

(3 Marks)

(f) What is a document flow in SAP R/3 and why is it important?

(3 Marks)

Page 3 of 5
Enterprise Resource Planning (ISM3101) SITE/EU 2012-2013 S1
QUESTION 3: (25 Marks)

(a) Do ERP systems strengthen or weaken a corporate managers control over

operations? State your point of view and justify it with two appropriate examples.

(10 Marks)

(b) Describe the differences between Financial and Management Accounting. How
can ERP systems benefit workers in both situations?

(6 Marks)

(c) Describe six ways in which an ERP system can save time for an accountant.

(6 Marks)

(d) Some researchers have argued that hiring of accountants would diminish with the
implementation of ERP systems. In reality, accountants are needed more than
ever in industry today. Explain how the Sarbanes-Oxley Act has impacted on the
demand for accountants.

(3 Marks)

QUESTION 4: (25 Marks)

(a) A companys employees are its most important resources. Describe Five
responsibilities of the HR Department in a company.
(5 Marks)

(b) How can an integrated Human Resources information system be used to detect
potential pay discrimination before it becomes systematic?

(2 Marks)

Page 4 of 5
Enterprise Resource Planning (ISM3101) SITE/EU 2012-2013 S1
(c) In 1996, the Labor Departments Office of Federal Contract Compliance
Programs (OFCCP) ran a routine investigation of Boeings Philadelphia plant.
Because Boeing works on government contracts, the Federal Government has
the right to audit Boeings compliance with anti-discrimination laws and by
comparing median pay of male and female employees and their median job
experience, the OFCCP found a prima facie case of discrimination. Boeing
settled its discrimination lawsuit for $72.5 million.
(i.) Could there have been any other lawsuit costs associated with the case?
(2 Marks)
(ii.) How would they have been compared to the financial cost of the
settlement?
(1 Mark)
(d) Companies are moving from EDI to Internet-based Procurement which is the
use of Internet technologies for procurement activities. Assume you have just
graduated and you are hired at a Manufacturing Company that manufactures
Chocolate bars, as its new purchasing agent. The person you replaced has just
retired after 35 years in the job. You are eager to put to use some of the skills you
learned at UTM, especially the work you did on B2B e-commerce. Write a memo
to your new boss, discussing about the virtues of e-commerce and why the
company should move towards Internet Procurement.

(10 Marks)

(e) Web Services are a combination of software tools that lets various programs
within an organization communicate with other applications. NetWeaver is SAPs
Web services platform and is a collection of components that supports business
processes over the Internet. Describe Five of the modules which are included in
the SAPs NetWeaver platform.

(5 Marks)

*** END OF QUESTION PAPER ***

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Enterprise Resource Planning (ISM3101) SITE/EU 2012-2013 S1