Loyola Institute of Technology ,Chennai - 600123

Department Of Information Technology.

TWO MARK QUESTION & ANSWERS Subject Name : Enterprise Resource Planning Subject Code : IT2041 Faculty Incharge :S.Suresh Degree/ Branch Year/Semester Academic Year : B.Tech/IT : IV/ VII : 2011- 2012

UNIT - I 1. What is ERP? It covers the techniques and concepts employed for the integrated management of businesses as a whole, from the viewpoint of the effective use of management resources, to improve the efficiency of an enterprise. 2. What are the advantages of ERP? Direct Advantages: Improved efficiency, information integration for better decision making, faster response time to customer queries etc. Indirect Advantages: Better corporate image, improved customer goodwill, customer satisfaction and so on. 3. What is the Role of ERP? ERP is tailor made for the organization. It is designed to cater to the current need of the company, leaving no scope for growth or scalability. The core step is the Gap Analysis and how to eliminate redundant business processes. 4. Define Enterprise? ` Enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve that goal. It acts as a single entity. 5. What is meant by Information system? Information system is an open, purposive system that produces information using the input-process-output cycle. The minimal information system consists of three elements People, procedures and data. Today, an information system is an organized combination of people, hardware,software, communication networks and data resources that collects, collates, transforms and disseminates in an organization. 6. What are the fundamental characteristics of Information? Accuracy, Relevancy and Timeliness. 7. Define Business Model. It is a representation of actual business what are the various business functions of the organization, how are they related, what are their interdependencies and so on.

8. What are the benefits of ERP? Direct Benefits: Business Integration, Flexibility, Better Analysis and Planning capabilities and use of latest technology. Reduction of lead-time, on-time shipment, Reduction in cycle time, Better customer satisfaction, Improved supplier performance, Increased flexibility, Reduction in quality costs, Improved resource utility and Improved information accuracy and decision making capability. 9. Define Lead Time. Lead Time is the elapsed time between placing an order and receiving. 10. What is meant by Cycle Time? Cycle time is the time between receipt of the order and delivery of the product. 11. Define Quality. It is defined as excellence, conformance to specifications, fitness for use, value for the price and so on. 12. Define BPR. BPR means not just change- but dramatic change and dramatic improvements. A successful BPR can result in dramatic performance improvements, increase in profits, better business practices, enormous cost reductions, dramatic improvements in productivity and so on. 13. List out the different BPR phases. Begin Organizational change, Building the Reengineering Organization, Identifying BPR opportunities, Understanding the existing process, Reengineering the process, Blueprint the New Business System and Perform the transformation. 14. What is meant by Blueprints? Blueprints are detailed plans required to build something in accordance with the designers intentions. It is to identify all the necessary details of the newly reengineered business system and to ensure that it will be built as intended. 15. Define Data Warehousing. The primary concept is that data stored for business analysis can most effectively be accessed by separating it from the data in the operational systems. It is a collection of Computer based information that is critical to the successful execution of enterprise initiatives. It is a more than an archive for corporate data and more than a new way of accessing corporate data. It is a subject oriented repository, designed with enterprise wide access in mind. It is designed so that its user can recognize the information they want and access that information using simple tools.

It is to integrate operational data from various sources into a single and consistent architecture that supports analysis and decision making within an enterprise. 16. List out the Advantages of a Data Warehouse. More cost- effective decision-making Better enterprise intelligence Enhanced customer service Business Reengineering Information system reengineering 17. List out various Data ware house components. Summarized data Operational Systems of Record Integration / Transformation Programs Current detail Data Warehouse Architecture or Metadata Archives 18. Define Metadata. Metadata is data about data. It is integral to all levels of the Data warehouse, but exists and functions in a different dimension from other warehouse data. 19. Define Data Mining. It is an evolving science. Data mining process is systematic; it offers firms the ability to discover hidden patterns in their data-patterns that can help them understand customer behavior and market trends. 20. What is the use of the Data Mining tool? It predict future trends and behaviors, allowing businesses to make proactive, knowledge driven decisions. 21. Differentiate between Verification and Discovery model. We can compare these models by using diamond mine example. Verification Discovery Verification is like drilling individual It is similar to scooping out all the material in holes in a lode with the expectation of the lode and dumping it on a plain field so that finding diamonds. Finding all or many all the glittering stones are thrown up into the diamonds in this way can be very open. Diamonds are then separated from the inefficient. quartz by further inspection. 22. What are the advantages of Data Mining? Predicting, classification, Detection of relations, Explicit modeling, Clustering, Deviation Detection. 23. List out the Technologies used in Data Mining Neural networks, Rule induction, Evolutionary Programming, Case based reasoning, Decision trees, Genetic algorithms, nonlinear regression methods.

24. Distinguish between Data ware house and OLAP. Data ware house It is usually based on relational technology. It stores and manages data. OLAP It uses a multidimensional view of aggregate data to provide quick access to strategic information for further analysis. It transforms Data ware house data into strategic information.

25. Write 12 Rules of OLAP. Multidimensional conceptual view, Transparency, Accessibility, Consistent reporting performance, Client/ Server architecture, Generic dimensionality, Dynamic sparse matrix handling, Multi-user support, Unrestricted cross-dimensional operations, Intuitive data manipulation, Flexible reporting and Unlimited dimensional and aggregation levels. 26. What is Slice and dice? Navigation and browsing is called as Slice and dice. 27. What are the benefits of OLAP? It reduces the applications backlog still further, by making business users self-sufficient enough to build their own models. IT also realizes more efficient operations through OLAP. It enables the organization as a whole to respond more quickly to market demands. It yields improved revenue and profitability. 28. Define Just-in-time. It is computed data that usually reflects complex relationships and is often calculated on the fly. 29. What is Time intelligence? Time is an integral component of almost any analytical application. Time is a unique dimension because it is sequential in character. Business performance is almost always judged over time. Eg. This month vs. last month, this month vs. the same month last year. 30. What are the benefits of Supply Chain? Lower inventories and therefore, lower financing costs Shorter receivables cycles Optimal use of production resources, costly work forces and transportation fleets Faster response-to-market changes Greater satisfaction and loyalty among customers Greater profitability

UNIT II 1. List out the different phases of ERP implementation Lifecycle. Pre-evaluation Screening, Package Evaluation, Project Planning Phase, Gap Analysis, Reengineering, Configuration, Implementation Team Training, Testing, Going Live, Enduser Training and Post-implementation 2. What is Pre-evaluation Screening? Analysing all the packages before reaching a decision is not a viable solution and is very time consuming process. So the Committee uses the Pre-evaluation screening to limit the number of packages that are to be evaluated. 3. What is Selection process? Evaluation / Selection process is one of the most important phases of the ERP implementation, because the package that you select will decide the success of failure of the project. So it is a do it right the first time proposition. 4. Define Gap Analysis. Gap Analysis is the process through which companies create a complete model of where they are now and in which direction they want to head in the future. The trick is to design a model which both anticipates and covers any functional gaps. 5. Define Reengineering? It refers to an ERP implementation model initially designed and used with much success by the Big Six consulting firms. It involves a technical implementation and a business process implementation. 6. What is Testing? This is the phase where we try to break the system. The system is configured and now we must come up with extreme-case scenarios system overloads, multiple users logging on at the same time with the same query, users entering invalid data, hackers trying to access restricted areas and so on. 7. What is the Hidden Cost? Training, Integration and Testing, Data conversion, Data Analysis and ERP consultants 8. List out the different Implementation team. Executive Committee, Project management team, Work team, Technical support team and Administrative support team. 9. What are the Pros and Cons of In-house Implementation? Knowledge of how to organize and run a project of this magnitude. Enough experience in handling problems and issues that arise during the implementation. Good people skills Good Leadership skills Excellent training skills.

10. List out the role of vendor Vendor should supply the product and its documentation as soon as the contract is signed. Vendor is responsible for fixing any problems in the software that the implementation team encounters. Vendor has to play is that of the trainer to provide the initial training for the companys key users, people who will play lead roles in the implementation of the system. Vendor plays an important project support function and must exercise the quality control with respect to how the product is implemented. There will be gaps between the package and the actual business process. 11. List out the role of Consultant Consultant is responsible for administering each of the phases of the implementation. Consultant should add the value to the project and also know how to remain impartial while questioning current company processes in an effort to promote better businesses practices and better implementation results. 12. What is the main role of Executive committee? Executive committee is responsible for monitoring and evaluating of the project and its progress. 13. What are the tasks of Work team? Extracting the information about the current system form users to monitoring the start-up of the new system. Work team will do the testing of the system, once the system is customized and configured. Also participate in the training of the end user of the system. 14. Define Contract. Contract as an agreement between two or more people to do something, especially one formally set forth in writing and enforceable by law. 15. What is work plan? The consultant and the company representatives should sit together and prepare a work plan. This plan details each and every activity that needs to be carried out and when it should be carried out.

UNIT III 1. What is Business? It can be defined as the activities of individuals or groups that are involved in developing, producing and distributing the goods and services needed to satisfy other peoples needs. 2. List out different ERP package modules.

Finance, Manufacturing and production planning, sales and Distribution, Plant maintenance, Quality management, Materials Managements. 3. What are the features of ERP System? Integration and automation of the various business functions. Another feature that improves productivity and reduces response and reaction times is the automation of the various procedures and tasks. 4. List out the major subsystems of Finance. Financial Accounting, Investment Management, Controlling, Treasury and Enterprise Controlling. 5. Define General Ledger. It is essential both to the financial accounting system and to strategic decision making. GL serves as a central pool of financial data for financial reporting as well as for other accounting areas. GL provides document parking, posting, reporting and an integrated financial calendar for automating periodic activities. 6. What is meant by Activity Based Costing? It is responsible to the growing need for monitoring and controlling cross departmental business processes, in addition to functions and products. 7. What is EIS? It provides an overview of the critical information necessary to manage the organization. This component integrates data from other ERP components and non-ERP data sources both inside and outside the enterprise. 8. Define Production. Production or operations, is the use of human, physical and financial resources to produce products or services. 9. What is meant by Transformation? It implies physical changes; it also includes the conversion of resources into services. 10. List out the major subsystems of Manufacturing. Material and capacity planning, Shop floor control, Quality management, Engineering data management and change control, Configuration management, Serialization/Lot Control and Tooling. 11. What is the use of Engineering change control? Business can gain effective control over engineering change orders. 12. List out the major subsystems of HR module. Personnel management, Organizational management, Payroll Accounting, Time management, Personnel development

13. What is the function of Payroll Accounting? It can fulfill the payroll requirements and provide us with the flexibility to respond to our changing needs. Most payroll accounting systems give the options and capabilities to establish business rules without modifying the existing payroll. 14. List out the major subsystems of Plant Maintenance. Preventive maintenance control, Equipment tracking, Component tracking, Plant maintenance calibration tracking, Plant maintenance warranty claims tracking. 15. What is meant by Equipment Tracking? It is an asset that needs to be monitored and protected. All facets of plant location history and utilization history are described and tracked. Running totals for operation units to date are also provided. Each piece of equipment is defined by a model and serial number. 16. List out the main modules of Materials Management. Pre-purchasing activities, Purchasing, Vendor Evaluation, Inventory management, Invoice verification and Material Inspection. 17. What is the use of Invoice verification? It completes the materials procurement process, which starts with the purchase requisition, continues with purchasing and goods receipt and ends with invoice receipt. It allows invoices that do not originate in materials procurement to be processed. It allows credit memos to be processed, either as invoice cancellations or discounts. 18. Define Quality. In manufacturing, the definition of quality can be fairly straightforward. Products should work as intended with a minimum number of faults or failures. 19. What are the functions of Quality management module? Quality planning, Quality Inspection and Quality Control. 20. What are the Applications of Warehouse Management? Inventory Planning, Inventory Handling, Intelligent location assignment, Inventory Reporting, Inventory Analysis, Lot Control and Distribution Data Collection. 21. What is meant by Shipping? The Delivery note is the central shipping document. Shipping activities such as picking and delivery scheduling are initiated and monitored and the data generated during shipping processing is recorded. 22. Define Billing. Billing functions like issuing of invoices on the basis of goods and services, issuing of credit and debit memos based on corresponding requests and proforma invoices, canceling billing transactions, giving rebates, transferring billing data to Financial accounting, purchasing and so on. 23. Define Pricing.

Pricing is to describe the calculation of prices (for external use by customers or vendors) and costs (for internal purposes, such as cost accounting). UNIT - IV 1. List out the top five vendors in the ERP Market. SAP AG, Oracle Applications, People Soft, Baan and J.D.Edwards 2. What are the different versions of SAP? Mainframe version SAP R/2 Client/server version SAP R/3 3. What is meant by Dynamic information management? R/3 is a major strategic tool for achieving the aims companies compete fiercely for market share and work hard to operate profitably. It gives enterprises of all sizes types of industries, a flexible software base for their business infrastructure. 4. List out the Advantages of SAP. Cooperative client/server processing distributes application and computing capabilities almost at will across multiple levels. Infinitely Expandable Scalability 5. What is the use of People Tools? It enables customers to implement, tailor and maintain PeopleSoft applications as well as to extract, analyse and manipulate data. It includes several tools for Reporting, Customisation and workflow. 6. What is meant by PeopleSoft Toolkit? It allows the riskier Big Bang approach when time critical business needs must be addressed quickly. It consist of 4 phasing strategies :- Geographical, Departmental, Core and support process and No phasing. 7. What is meant by BaanERP? List out the components of BaanERP? It is fully integrated and provides exceptional functionality across the enterprise. It consists of number of interdependent components that can be deployed to meet business need. It includes components such as Manufacturing, Finance, Project and Distribution. 8. What is meant by Run-time Tools? The purpose of Runtime tool is to make BaanERP packages independent from computing environment specific issues such as Platform, Operating System,Middleware, Databases and User interfaces. 9. Define Three I philosophy. Integrity: In its interactions with its customers, colleagues, partners and shareholders. Innovation: In what it builds and how it delivers.

Initiative: In the speed and focus it brings to all aspects of its market opportunity. 10. List out some of the product modules available from JD Edwards. Foundation, Financial, Logistics/Distribution, Services, Manufacturing, Architecture, Engineering, Construction, Mining and Real Estate Suite, Energy and Chemical Suite, Payroll, Human Resources, customer, Education and Not-profit solutions, and Utility and energy solutions. 11. What are the different categories of Oracle Applications? Financial, Human Resources, Projects, Manufacturing, Supply chain and Front Office. 12. Define Qwizard. Qwizard, QADs interactive mentor for users of MFG/PRO software , is a value-added tool that provides easy to use business modeling implementation and interactive learning tools. 13. What is meant by MFG/PRO? It is a client/server ERP application as it dramatically increases the internal efficiencies of distributed operations. It is comprehensive, open, flexible, scalable, and interactive and designed to address the operations requirements of todays manufacturers. It is a fully integrated software package available on a module-by-module basis. 14. What is the Vision and mission of SSA? Vision is to be the best global partner to the worlds industrial sector companies. Mission is to provide competitive advantage for Clients through the implementation of their business enterprise information system. UNIT - V 1. What are the limitations of ERP System? Managers cannot generate custom reports or queries without help form a programmer. This inhibits managers from obtaining information quickly enough for them to act on it for competitive advantage. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decision making. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence. 2. What is meant by Automatic Alerts and Actions? Business intelligence systems for ERP can also issue alerts when certain events occur or when thresholds are met, enabling your business to react more quickly to problems and opportunities. 3. What are the solutions of EIA?

Tools like Prospero, that give EDP/IS departments the ability to link ERP with almost any application. Products that are geared to work with only a handful of major applications like SAP, PeopleSoft, Baan, Oracle etc. 4. List out the Process of E-Commerce workflows. Fulfillment, Payment, Procurement, Replenishment, Retail Fulfillment, Corporate Procurement and Inventory Replenishment. 5. What are the Scope of ERP applications? Where to focus their Web-enabling initiatives Whether to build or buy The Java or ActiveX approach to delivering client access. Allowing integration of the Web into their workflow reference models. Delivering architecture that can accommodate potentially significant transaction growth. 6. Define Internet. Internet is the networks of networks, scattered all over the world. The shared global computing network. A network based on standards including Internet Protocol (IP), Simple Mail Transfer Protocol (SMTP) and the Domain Name System (DNS), which enables global communications between all connected computing devices. It provides the platform for web services and the World Wide Web. 7. Define VPN. It connects the geographically dispersed facilities of an enterprise over a public network like the Internet. It provides secure global communications across the enterprise without the need for private leased lines. It is a cheaper alternative to leased lines. 8. List out the Major ERP vendors and their Products. Vendor SAP AG Oracle Corporation JD Edwards World Solutions Co. PeopleSoft Inc. Baan Co. Product R/3 Oracle Application OneWorld PeopleSoft Baan IV

9. What is meant by Fast Forward? It helps speed up implementations of Oracle Applications suites and nail down the costs up-front. 10. What is meant by BAPI? It is simply, sets of methods that allow external applications to collaborate with specific R/3 business objects such as customers, accounts or employees.