INFO 145 Quiz 3INFO 145 Intro to e-Commerce and ERP

Quiz 3, 50 points

Name____________________________________ Student Id:____________________________

Answer all Questions. Max: 50 points

TRUE/FALSE Questions ( 5 points)

1. A business process is a collection of activities that takes one or more kinds of inputs and creates an output that is valuable to the customer.

ANS: T

2. ERP systems have a database for each of a company's functional areas.

ANS: F

3. ERP systems have one database to record all of a company's transactions.

ANS: T

4. A business "process" may involve activities from more than one business "functional area".

ANS: T

5. the idea of best practices is fundamental to an ERP system. ANS: T

MULTIPLE CHOICE (4 points)

1. A company's Production and Materials Management executives have made plans for new buildings and equipment and related personnel needs. What sort of planning is this?a.

long range plan

b.

medium range plan

c.

short range plan

d.

performance plan

e.

reduction plan

ANS: A

2. Which functional area is responsible for taking customer orders?a.

Marketing and Sales

b.

Production and Materials Management

c.

Accounting and Finance

d.

Human Resources

e.

Office of the CEO

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INFO 145 Quiz 3ANS: A

3. Information systems that allow data to be shared throughout the organization are called ________ systems.a.

Unintegrated

b.

Integrated

c.

Unrestricted

d.

Bounded

e.

Unbounded

ANS: B4. Assume that a customer orders 1000 units of a product from a company. How does the sales order data flow

if the company has unintegrated information systems?a.

Sales order goes to Accounting and Finance. Accounting and Finance then reports the data to Marketing.

b.

Sales order goes to Production. Production then reports the order to Marketing.

c.

Sales order goes to Accounting and Finance. Accounting and Finance then reports the order to Production, which then reports the order to Marketing.

d.

Sales order goes to Human Resources, which then reports the order to all other areas of the company.

e.

Sales order goes to Marketing. Marketing then reports the data to Accounting and Finance.

ANS: ESHORT ANSWER (41 points)

1. Briefly explain why Production will benefit from having Marketing's sales forecast. (2 points)

ANS:Helps plan production and related raw materials purchases.

2. Briefly explain why Materials Management (Purchasing) will benefit from having Productions' production plan. (2 points)

ANS:Helps compute the amount and timing of raw materials purchases.

3. Briefly explain why Production planning must start with a Sales forecast. (3 points)

ANS:Production otherwise does not know how many items to make to meet demand.

4. A business "process" may involve activities from more than one business "functional area". Explain why that is so (you can cite an example if you like, to clarify the issues). (3)

ANS:Processes require coordination across functional areas, including sharing data. An example is production planning. Manufacturing needs to know Marketing's sales forecast.

5. Identify three functional areas of operation in a typical manufacturing company and briefly describe the activities in each. (5)

ANS:Marketing, Production and Accounting/Finance are three areas.Marketing: sell product, find new customers.Production: produce product, handle raw materials purchasesAccounting & Finance: keep the company's books, raise funds.

6. Why is an integrated information system in a company better than unintegrated information systems in a company? (3 points)

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INFO 145 Quiz 3

ANS:Shared data will be more accurate and timely. This will lead to operating efficiencies and better decision making.

7. Consider this statement:"A lemonade stand is a very small business. A lemonade stand is so small that it would only have one business process to manage."

State whether or not this statement is true or false and justify your reasoning. (4)

ANS:Probably false. Any for-profit company has a product or service to sell. The product or service must be made or bought ("sourced") and marketed. Transactions must be recorded and accounted for. Even with a very small business there will be human resource activities -- payroll, for example.

8. Name any five major ERP vendors. (5)BAAN, Oracle, Peoplesoft, SAP, JDEdwards

9. Name any five financial business functions potentially supported by ERP. (5) Accounts Receivable, Account payable, Asses Accounting, Cash forecasting, Cost accounting, EIS< General Ledger, Profitability analysis, Standard Costing.

10. Give any three disadvantages of ERP systems. (3)

Less Flexibility, Harder to make corrections, Imposition of how people do their work, Less freedom and creativity, Changing needs, Under budgeted training expense, Hidden costs of implementation

11. What are the two broad approaches to develop and implement information system projects? (3)Do it all at once (“big-bang’ approach) (ii) Develop the project in phases.

12. Give any three critical success factors for successful implementation of ERP systems. (3)

Top management support, competence of ERP staff, User training etc.

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