DEPARTMENT OF MANAGEMENT STUDIES

1. What is ERP?
Enterprise resource planning (ERP) is a company-wide computer software system
used to manage and coordinate all the resources, information, and functions of a
business from shared data stores.
2. Write any two advantages and disadvantages of ERP systems.
Advantages

Integration

among

different

functional

areas

to

ensure

proper

communication, productivity and efficiency

Design engineering (how to best make the product)

Disadvantages
Customization of the ERP software is limited.

Re-engineering of business processes to fit the "industry standard"

prescribed by the ERP system may lead to a loss of competitive advantage.

3. What are the reasons for the explosive growth of the ERP market?
They enable improved business performance by achieving : cycle time
reduction , Increased business agility , Inventory reduction , Order

fulfillment improvement etc.

They support business growth requirements
They help companies in supporting new products/product lines and new
customers by meeting their global requirements , including multiple

languages and currencies.

ERP systems provide flexible , integrated , real time decision support thus,
improving responsiveness across the organization and eliminating the

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limitations in legacy systems like century dating issues , fragmentation of

data and processing , inflexibility to change , insupportable technologies etc.

ERP packages can now be afforded by even small and medium sized
business and offer increased functionality at a reasonable cost , support
client server/open systems technologies and support vertical market

solutions.
4. List down the problems tackled by ERP systems.
Material Shortages
Productivity Enhancements
Customer Service
Cash Management
Inventory Problems
Quality Problems
5. What are the Emerging Trends in ERP?
ERP systems were first created to manage and track inventory. Most companies
that have implemented ERP systems have generally seen improvements in their
asset utilization metrics. While ERP implementation requires great amounts of
time, money and effort, many companies have decided that the benefits of
implementation decidedly outweigh the costs. Since ERP systems have expanded
into back office systems (such as accounts payable, human resources, and order
entry), the effect on SG&A expense management is seen as well .
6. What is ERP lifecycle?
ERP Life Cycle is in which highlights the different stages in Implementation of an
ERP.
7. Who are the main players in the ERP market?
The main players are SAP AG , Peoplesoft , Oracle , Baan , JD Edwards , QAD ,
Ramco , IFS , Dataworks and so on.
8. Define Need Analysis.
Need analysis is in the Decision Making, Problem Solving, & Strategy and
Planning & Scheduling subjects. Need analysis appears in these other term: training
needs analysis.
9. What is the Necessity for ERP Gap Analysis?

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Gap analysis is an important step in ERP implementation. ERP is meant to

integrate the data of all the departments in a company under one common platform.
This calls for a radical change in the system of the company's functioning. The
organization can either drop the idea of implementing ERP or choose to go by it. Such
a decision can be arrived only by comparing with parameters like the reaction of their
customers.
10. How is Gap Analysis done in ERP?

The primary step will be to make a note of the existing business system and list
out the flaws and positive aspects. This is an attempt to have an idea of what is
currently happening given the scenario in question so as to help in ERP
implementation.

Evaluate and decide the additions that need to be made to the business in view of
ERP implementation. The aim is to make sure that there is not even a thin line of
difference between ERP and the organizations commercial activities. It will be
oriented to ERP function.

Rating the existing level of performance to set a benchmark or standards for the
business as on date. This will help in finding out the benefit of ERP.

Having an in-depth study of the regulations and statements in the organizations

and suggesting modifications. This also will decide ERP implementation.

Clearly defining the roles of individuals in the organization so that the priorities
are met and the structure remains undisturbed. This is to make things clear for
ERP function.

Checking if the objective in discharging duties are met because it is the ultimate
solution to any issue. If they are not met the gaps should be made known and
corrected. Only then the organization can achieve the benefit of ERP.

Ensuring that functions are executed properly and if need be personnel can be
rewarded to boost up and encourage performance.

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Similarly comparisons are to be made for every other factor that draws relation in
one way or other. These results are to be complied for ERP gap analysis.

The gap analysis takes into account all the factors of study and gives the results.
It either recommends the implementation of an ERP system or rejects the idea in
totality.

11.

12.

List down the various ERP modules.

ERP Production Planning Module
ERP Purchasing Module

ERP Inventory Control Module

ERP Sales Module

ERP Market in Module

ERP Financial Module

ERP HR Module

What do you mean by RFP?

A request for proposal (RFP) is a document that an organization posts to elicit bids
from potential vendors for a product or service.
For example, a new business or a business moving from a paper-based system to a
computer-based system might request proposals for all the hardware, software, and
user training required to establish and integrate the new system into the

organization.
13.
How to write successful RFP letters?
Do Your Homework, Distinguish Between Needs And Wants , Decide What The
Winner Will Look Like , Organize the Document , Introduction ,

Requirements ,

Selection Criteria , Timelines , Process , Decide How To Send Out The RFP , Decide
Who To Send The RFP , Send The RFP
14.
Write the benefits of various ERP software.
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Help reduce operating costs, Facilitate Day-to-Day Management, Support

Strategic Planning.
15.
Define Business Process Reengineering.
BPR is the fundamental rethinking and radical redesign of business process to
achieve dramatic improvements in critical, contemporary measures of performance
such as cost, quality, service and speed.
16.

Define Process Improvement.

Process improvement is a series of actions taken to identify, analyze and
improve existing processes within an organization to meet new goals and
objectives. These actions often follow a specific methodology or strategy to create
successful results.
Define process modeling.
The term process model is used in various contexts. For example, in business

17.

process modeling the enterprise process model is often referred to as the business
process model. Process models are core concepts in the discipline of Process
Engineering.
Write the goals of process modeling.
The goals of a process model are to be:

18.

Descriptive
o

Track what actually happens during a process.

Takes the point of view of an external observer who looks at the way a
process has been performed and determines the improvements that have to
be made to make it perform more effectively or efficiently.

Prescriptive
o

Defines the desired processes and how they should/could/might be

performed.

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Lays down rules, guidelines, and behavior patterns which, if followed, would
lead to the desired process performance. They can range from strict
enforcement to flexible guidance.

Explanatory
o

Provides explanations about the rationale of processes.

Explore and evaluate the several possible courses of action based on rational
arguments.

Establish an explicit link between processes and the requirements that the
model needs to fulfill.

Pre-defines points at which data can be extracted for reporting purposes.

19. Write any two classification of process model.

Classification by coverage, Classification by alignment
20. What is the use of a successful BPR?
Dramatic improvements in critical contemporary measures of performance, such
as cost, quality, service, and speed.
21. Define Organizational Readiness.
Organizational Readiness explains the organizational readiness challenges that
companies face. It describes at a high level how to establish a framework for
success, how to meet overall objectives, and how to create an environment receptive to
change and prepared for sustainability.
22. What is an ERP Project team?
ERP project team would be charged with the responsibility of implementing the
ERP for the specific organization. A champion, who is skilled in communication and
understands the organization well, should head the ERP team. The leader must be well
accepted by the most employees of the organization. The leader also must be a person
who can keep the motivation level of the implementation team at fairly high levels
throughout the several months of implementation.
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The implementation team would consist of dozens of people. There will be a

number of teams for each of the functional area with every team consisting of key
users and IT personnel to provide technology support.
23. How to prepare an organization for ERP implementation?
There is no easy magic through which one can prepare an organization for ERP
implementation. Exposing the top management to the benefits of ERP through the
real world case studies, sharing of experience by other corporations that have
successfully implemented ERP and creation of awareness is the first step. Convincing
the top management to use a high risk, high reward scheme such as ERP is a major
challenge.
Almost all the members of the organization should get the excitement about ERP
project implementation. Communicating and sharing of the ERP vision is the most
important organizational preparation for a successful ERP implementation.
24. Define Project Management.
Project management is the discipline of planning, organizing and managing
resources to bring about the successful completion of specific project goals and
objectives. A project is a finite endeavor (having specific start and completion dates)
undertaken to create a unique product or service which brings about beneficial
change or added value.
25. Write the various activities of project management.
Scheduling
Calculating critical path
Providing information
26. What are the traditional constraints of project management?
Scope , Time and Cost
27. Write the various approaches of project management.
The traditional approach , PRINCE 2 , Critical Chain Project Management ,
Extreme Project Management , Event Chain Methodology , Process-based
management , Rational Unified Process.
28. Write any three international standards of project management.
CMM , PRINCE 2 , V-Modell.
29. What do you mean by project team?
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A project team is a team whose members usually belong to different groups,

functions and are assigned to activities for the same project. A team can be divided
into sub-teams according to need. Usually project teams are only used for a
defined period of time. They are disbanded after the project is deemed complete.
30. Define Steering committee.
A group of high-level stakeholders who are responsible for providing guidance
on overall strategic direction. They do not take the place of a sponsor, but help to
spread the strategic input and buy-in to a larger portion of the organization. The
steering committee is usually made up of organizational peers, and is the
combination of direct customers and indirect stakeholders.
31. What do you mean by Functional team ?
Group of people with different functional specialties or multidisciplinary
skills, responsible for carrying out all phases of a program or project from start to
finish.
32. Define project deliverables.
A project deliverable is the final product . what is finished when the project
is done (or at the end of each pre-defined phase of the project). It is what you think
you are paying for.
A deliverable should have a clearly defined, realistic time limit and description

You determine the final deliverable

- "We want a website" is too vague.
- List in detail what you want the finished website to have or do
(not how it is done, but what)

The person/company doing the work determines the phases of the project,
and the deliverables at the end of each phase

The scope of the work will be a joint decision between you and the
Designer/Developer

33. What do you mean by system integration?

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System Integration is the bringing together of the component subsystems

into one system and ensuring that the subsystems function as a system.
34. What are the various systems integration standards?
IDEF , IEC 61131-3 , IFIP and IFAC , ISA , ISO TC184 SC5 WG1, OAG , OMG
etc ..
35. Define Forward and Reverse Engineering.
Forward engineering is the traditional process of moving from high-level
abstractions and logical designs to the physical implementation of a system. In
some situations, there may be a physical part without any technical details, such
as drawings, bills-of-material, or without engineering data, such as thermal and
electrical properties.
The process of duplicating an existing component, subassembly, or product,
without the aid of drawings, documentation, or computer model is known as
reverse engineering.
Reverse engineering can be viewed as the process of analyzing a system to:

Identify the system's components and their interrelationships

Create representations of the system in another form or a higher level of

abstraction

Create the physical representation of that system

Reverse engineering is very common in such diverse fields as software

engineering,

entertainment,

automotive,

consumer

products,

microchips,

chemicals, electronics, and mechanical designs

36. How does ERP infrastructure planning use to setup a ERP software.
ERP Infrastructure Planning and Design Consultancy Service offers
enterprises one-stop services to plan and implement an effective IT infrastructure,
including telecommunication systems,
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bandwidth management,

server

and

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network setup and management necessary for ERP operations. This service also
provides a regular infrastructure checkup and improvement initiatives to ensure
the infrastructure is effective and secure for ERP operations.
37. Define cross functional team.
A "cross functional team" is a group of people with different functional
expertise working toward a common goal. It may include people from finance,
marketing, operations, and human resources departments. Typically, it includes
employees from all levels of an organization. Members may also come from outside
an organization (in particular, from suppliers, key customers, or consultants).
38. Define balance score card method.
The Balanced Scorecard (BSC) is a performance management tool which
began as a concept for measuring whether the smaller-scale operational activities
of a company are aligned with its larger-scale objectives in terms of vision and
strategy.
39. What is the use of organizational transformational model?
Provide exemplary transformational strategic processes

designed and

implemented by comparable organizations

Provide exemplary measures of a successful transformation such as

process milestones, organizational benchmarks and best practices.

Make recommendations as to specific models, tools, and procedures that
would be most usefully adapted by the Administrative Steering

40.

Committee.
What do you mean by checklist?
A checklist is used as an aid to memory. It helps to ensure consistency and
completeness in carrying out a task. A basic example is the to do list. A more
advanced checklist would be a schedule, which lays out tasks to be done
according to time of day or other factors.

Explain in detail about the History and Evolution of ERP.

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ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements

Planning (MRP) II. From business perspective, ERP has expanded from coordination of
manufacturing processes to the integration of enterprise-wide backend processes. From
technological aspect, ERP has evolved from legacy implementation to more flexible tiered
client-server architecture.
The following table summarizes the evolution of ERP from 1960s to 1990s.
Timeline
System
1960s
Inventory

Description
Inventory Management and control is the combination of

Management &

information

technology

and

business

processes

of

Control

maintaining the appropriate level of stock in a warehouse.

The activities of inventory management include identifying
inventory

requirements,

setting

targets,

providing

replenishment techniques and options, monitoring item

usages, reconciling the inventory balances, and reporting
1970s

Material

inventory status.
Materials Requirement Planning (MRP) utilizes software

Requirement

applications for scheduling production processes. MRP

Planning (MRP)

generates schedules for the operations and raw material

purchases based on the production requirements of
finished goods, the structure of the production system, the
current inventories levels and the lot sizing procedure for

1980s

1990s

Manufacturing

each operation.
Manufacturing Requirements Planning or MRP utilizes

Requirements

software

Planning (MRP II)

processes, from product planning, parts purchasing,

applications

for

coordinating

manufacturing

inventory control to product distribution.

Enterprise Resource Enterprise Resource Planning or ERP uses multi-module
Planning (ERP)

application software for improving the performance of the

internal business processes. ERP systems often integrates
business activities across functional departments, from
product planning, parts purchasing, inventory control,
product distribution, fulfillment, to order tracking. ERP
software systems may include application modules for

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supporting marketing, finance, accounting and human

resources.
Explain the Scope of ERP systems.
Financials:
Financial Accounting
Treasury Management
Enterprise control
Asset Management
Logistics:
Production Planning
Materials Management
Plant Maintenance
Quality Management
Project Systems
Sales & Distribution
Human Resource:
Personal Management
Training & Development
Skill Inventory
Work Flow:
Flexible Assignment of Tasks & Responsibilities.

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