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. 1

b. 3 & 4

c. 1, 2, 3 & 4

d. 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. 1,4

b. 4,2

c. 3,2

d. 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. 2,3,

b. 4,1,

c. 2,4

d. 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. 2 & 3

b. 1 & 4

c. 4

d. 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. 1, 2 only

b. 1, 3 only

c. 2, 4 only

d. 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. 1, 3 only

b. 2, 3 only

c. 1, 2 only

d. 1, 4 only

66. Identify the main components of PDM systems.

1. Data Management

2. Classification of Components

3. Product features

4. Document relationships

a. 1, 2 only

b. 1, 4 only

c. 2 , 3 only

d. 4, 3 only

67. Sub modules of Sales and Distribution modules are:

1. Order Management

2. Warehouse Management

3. Domestic Trade

a. 3 only

b. 1, 2 only

c. 2, 3 only

d. 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 Marks

76. a) Discuss the components of Customer Relationship Management. (5 Marks)

Refer unit 9, section 9.2.1

b) Explain about the SAP advantage. (5 Marks) Refer unit 13, section 13.3.3

(10 Marks)

77. a) 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

(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)

b) What are the different steps in ERP implementation? (5 marks)

(10 Marks)

79. c) What are the benefits of implementing the ERP system? (5 marks)

d) Discuss how Aarogya Pharmaceutical benefitted by implementing ERP? (5 marks)

(10 Marks)