Enterprise Systems

Module 1

MBA 4th Semester

Feb - Jun 2022

Raghupathi Pai JKSHIM

[email protected] Nitte
+91-9845515660
 MODULE 1 : TOPICS

• Introduction to Enterprise Systems and ERP

• Roadmap for successful ERP implementation
• Management Information Systems
• Business and Data Modeling
 Enterprise Systems – What are they?

• Use of Information Technology (Computer Systems

hardware, software, communication network and
related technologies in business)
• Software Systems today track and control all of the
complex operations of a business

No business today, big or

small, can shy away from
using Information Systems
and Technology
 Can you re-collect some scenarios where you
observed systems in action?
• Booking a train ticket or a movie ticket
• Placing order in Amazon or Flipkart
• Checking out at big bazaar store
• Academic activities through college systems
• Etc.

Systems are everywhere, we

access them all the time
using our mobile devices or
laptops or tabs
 Can you give examples of systems
usage in business functions…
• Order management
• Human Resources
• Finance
• Sales, Service and Marketing
• Operations
• Management dashboards
• Etc.
 ..And in various business verticals
• Manufacturing
• Retail
• Financial Services
• Distribution
• Services
• Energy and utilities
• Healthcare
• Etc.
 Let us think about more examples
• What happens when you book a ticket
in a train. Which departments within
railways should know about it?
• What happens when you check-in in an
airline counter.
• What happens when you call and log
your complaint to Jio?
• What happens when check out in big
bazaar counter.
• What happens when you write a test in
moodle?
 Enterprise Systems
• ERP – Enterprise Resource Planning Systems
• SCM – Supply Chain Management Systems
• CRM – Customer Relationship Management
Systems

However often “ERP” term is used to represent

all Enterprise Systems including SCM and CRM.
Enterprise (ERP) Systems
 ERP systems

• They are pre-built software products.

• They come up with pre-built processes/features.
• The can be configured to suit company needs.
• They have to integrated with other systems
within the organization for seamless business
processes.
• They also will often integrated with external
companies (such as banks) for automation of
completion business transaction.
ERP Applications – Another view
 Need for an ERP
• From Department to Enterprise
• From Function to Process
• From information Silos to Integrated information
system
• Best in class business process
• Leverage latest technology
• Duplication of data removed
• Data is standardized
• In-built Information and Data Security
• In-built system resilience, back up and disaster
recovery
Let us discuss few examples of Enterprises
and their Systems

■ A retailer – D-Mart
■ An automobile company – Maruti Suzuki

■ An airline company – Indigo

■ A manufacturer – Apple

■ A telecom company - Airtel

■ An education institution - JKSHIM

Evolution of Application Software

Year Software Evolution

2000s ERP on Cloud

1990s Enterprise Resource Planning (ERP)

SAP, Oracle, PeopleSoft, JDE, etc.

1980s Manufacturing Resources Planning (MRP II)

1970s Material Requirements Planning (MRP)

1960s Custom Coding of the Software by Enterprises

Inventory Control Packages
 MRP I
• Stands for Material Requirements Planning
• Requirements of Materials is mainly driven by
finished product demand which mainly comes
from sales and distribution team based on
actual customer requirements and some
forecast.
• BOM- Bill of Material.
• Manufacturing operations
is not part of MRP I
 MRP II
Stands for Manufacturing Resource Planning
MRP II has five major levels:
• Business Plan
• Sales and operations plan
• Master Production Schedule
• Material Requirement Planning
• Purchasing and Production Scheduling
Architectural Evolution of Application Software

Year Software Evolution

2010s Mobile and cloud

2000s Internet Technologies (Browser based)

Applications

1990s Client Server Applications

1970s IBM Mainframes

 Top ERP products
Large Businesses:
1. SAP : SAP S/4 HANA
2. Oracle: Oracle ERP Cloud
3. Microsoft: Microsoft Dynamics
4. Infor : Infor M3
5. IFS : IFS Cloud Applications

Small Businesses:
1. Oracle Net Suite
2. SAP Business One
3. Microsoft Dynamics 365 business central
4. Odoo ERP
5. Tally
Reason for growth of ERP Market
Implementation of ERP system
 Implementation of ERP System
• ERP lifecycle is in which highlights the
different stages in implementation of An ERP.
 Phases of ERP Implementation
• Pre evaluation Screening
• Evaluation Package
• Project Planning
• GAP analysis
• Reengineering
• Team training
• Testing
• Post implementation
 Pre evaluation screening
• Objectives, Business Case and ROI

• Decision for perfect package

• Number of ERP vendors

• Screening eliminates the packages that are not at

all suitable for the company’s business processes.

• Selection is done on best few package available.

 Package Evaluation
• Package is selected on the basis of
different parameter such as
functionality, technical
architecture, etc.
• Selected package will determine
the success or failure of the
project.
• Package must be user friendly
• Regular up gradation should
available.
• Cost
 Project planning
• Designs the implementation process.

• Resources are identified.

• Implementation team is selected and task

allocated.

• Special arrangement for contingencies.

• Risks and mitigation plans identified

 Gap analysis
• Process through which
company can create a model
of where they are standing
now and where they want to
go.
• Model help the company to
cover the functional gap
• Gaps in the package selected
are also identified.
 Configuration and Development

• Conference Room Pilots (CRP) and prototyping

• Configuration of the package
• Design of data entities and data migration
• Interfaces configuration and development
 Team Training
• Takes place along with the process
of implementation.

• Company trains its employees to

implement and later, run the
system.

• Employee become self sufficient

to implement the software after
the vendors and consultant have
left.
 Testing
• This phase is performed to find
the weak link so that it can be
rectified before its
implementation.
• Various testing such as
transaction testing, integration
testing, performance testing,
etc are done.
 Going Live
• The work is complete, data
conversion is done, databases
are up and running, the
configuration is complete &
testing is done.
• The system is officially
proclaimed.
• Once the system is live the old
system is removed
 Post Implementation
• This is the maintenance phase.

• Employees who are trained enough to handle

problems those crops up time to time.

• The post implementation will need a different

set of roles and skills than those with less
integrated kind of systems.
 Role/Responsibilities in ERP Implementation
Role Responsibilities

Project/Program Ensure schedule, budget and quality of implementation are as

Manager planned
Timely identification of risks and issue resolution
Stake holder management
Business Process Owns and sign offs on business process that is being
Owner implemented

Business Subject matter expert in given area and guides the project
Analyst/Consultant team with right solution

ERR product Configuring the software package, coding, data loading

experts/Programmers

Testers Testing and quality assurance of the product and data

Executive Overall direction, escalation resolution, key decisions

Management/Sponsors
ERP Implementation Case Studies
 Top ERP implementation failures
• Hershey food corporation SAP implementation in year 2000
caused major business disruption causing delayed shipments
and cost company US$150M in sales.
– Failure mainly due to crunched schedule and lack of testing
• SAP implementation at HP in 2004, resulted in huge order
backlogs and lost revenue of US$160 Million
- Failure mainly due project management and cultural issues
• FoxMeyer drugs , a $5B pharmaceutical company went
bankrupt owing major issues in ERP and other system
implementation in 1996
– Scope changes midway, inadequate infra sizing,inadequate testing
 Reasons for the Failure of ERP
Implementation
• Wrong Product
• Lack of top management commitment
• Lack of organization change management
strategies
• Incompetent and Haphazard implementation
• Poor program management
• Poor risk management
• Inefficient or ineffective use of the system by
users
 Reasons for the Failure of ERP
Implementation
• The introduction of ERP systems will dramatically change the job
descriptions and functions of many employees.
• Employees who were earlier doing the work of recording
information will overnight be transformed into decision makers.
• Many employees find this transformation difficult to accept. If the
employees are not given proper training well in advance, then the
systems will fail.
• Fear of Unemployment: When procedures become automated the
people who were doing these jobs become redundant.
• Without support from the employees, even the best system will fail.
So it is very important that the management should take the
necessary steps, well in advance, to alleviate the fears of, and
provide necessary training to their employees.
 Roadmap for successful ERP
implementation
• The one who knows the business need to be part of
implementation team
• Strong and committed product vendor along with
the product which is best suited for the company’s
needs.
• Proven and experienced ERP consultants
• The implementation should be planned well and
executed perfectly.
• End user training should be done so that people
understand the system and the effect of their efforts
on the overall success of the program.
Management Information Systems
(MIS)

“In God we trust. All others must bring data.”

- W. Edwards Deming
 Importance of Information
• An 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. People follow procedures to
manipulate data to produce information.
• An information system is an organised
combination of people, hardware,
software, communication networks and
data resources that collects, collates,
transforms and disseminates in an
organisation.
 Importance of Information
• Timely information enables timely decisions
• The quality of information ensures right decisions
• It avoids subjective decisions and decisions based on
“gut” feeling
• Information enables future course correction
• Overall, right information at the right time in right
format is the key in achieving business goals
Management Information Systems
• MIS were the original type of management support
systems
• MIS produce information products that support
many of the day to day decision making needs of
management
• Reports, charts, graphs, displays and responses
produced by such systems provide information that
managers have specified in advance.
• Because the systems work in isolation, collecting and
analysing the data needed for one departments
functioning can be a difficult task.
Sample MIS Dashboards
 Characteristics of information
• The three fundamental characteristics of information
are accuracy, relevancy and timeliness.
• The information has to be accurate
• It must be relevant for the decision maker
• And it must be available to the decision maker when
he/she needs it
• Any organisation that has the mechanism to collect,
collate, analyse and present high quality information
to its employees, thus enabling them to make better
decisions, will always be one step ahead of the
competition
 Types of information
• Accounting
• Finance
• Production Planning
• Manufacturing
• Inventory
• Customers and Customer service
• Suppliers and supplier performance
• Human resource
• Sales and Marketing
Business Process Modeling
Business Process Modeling
Data Modeling
Thank You
 Enterprise Systems

Module 4

MBA 4th Semester

Feb - Jun 2022

Raghupathi Pai JKSHIM

[email protected] Nitte
+91-9845515660
 MODULE 4 : TOPICS

• Finance and Accounting Modules

• Sales and Distribution Modules
• Manufacturing Modules
• Materials Management Modules
Finance and Accounting Modules
 Case: Nordstrom
• Nordstrom is a high end retailer in North
America with over 400 stores throughout US
and Europe. Annual revenue of USD 6.5 billion
• Use of chart of accounts was not consistent
across organization
• Different departments reported financial
reports differently
• Corporate finance needed all business units to
speak the “same language”
• Primitive reports were being used and moved
to Oracle Financials
 Accounting : Processes
• Central record keeping – General Ledger
• Manage Bills and Expenses – Accounts Payable
• Customer Invoicing - Account Receivables
• Bank Reconciliation
• Fixed Asset Management
• Internal Reporting(Balance sheet, P&L and
other reports) generation
• External reporting
– Set by general accounting standards
– Legal requirements
 Accounting Processes

• Operational
management
level
– Production of
transactions
• Paychecks,
invoices, checks,
purchase orders
Financials: Management Control Processes

• Budgeting
– Analysis of allocations, expenditures, revenues
• Cash management
– Cash flow analysis
– What-if analysis
• Capital budgeting
– Evaluation tools: NPV, IRR, pay-back period
• Investment management
 Management Accounting Modules
• Internal accounting perspectives for directing and controlling operations
• Information on variances between planned and actual data
• Key activities
– Cost center accounting
– Internal orders as a basis for collecting and controlling costs
– Activity-based costing of business processes
– Product cost controlling for profitability analysis
– Profitability analysis by market segment
– Profit center accounting of individual areas of organization
– Consolidation of financial data for accounting perspectives
• Enable management to better allocate resources, maximizing profitability
and performance
• Central clearinghouse for accounting information
Typical Account Receivable Transactions
Customer Invoices
• Offering cash discounts at invoice level
• Setting up and using Payment Terms
• Setting up installment plan on customer
invoice
• Setting deferred revenues
• Registering credit notes and refunds
Customer Payments
• Setting up various payment methods and
paying invoices
• Batch payments
• Follow up on invoices (Dunning)
 Typical Account Payable Transactions
Vendor Bills
• Managing Vendor bills
• Using supplier bills or purchase receipts

Vendor Payments
• Paying through Check, Electronics
Transfer(NEFT, RTGS) etc
• Keeping track of employee expenses
 Others Financial Transactions
• Managing cash register
• Managing foreign currencies
• Bank reconciliation
• Creating new taxes and setting default taxes
• Withholding taxes
 ODOO-Corner
Community ->
Documentation ->
User & Developer Documentation ->
User Docs->
Accounting and Invoicing

Process 1. Initial setup of Odoo Accounting and invoicing

https://www.odoo.com/documentation/15.0/applications/finance/accounting/getting_s
tarted/initial_configuration/setup.html

Process 2. From Customer Invoice to Payments Collection

https://www.odoo.com/documentation/15.0/applications/finance/accounting/getting_s
tarted/process_overview/customer_invoice.html

Process 3. From Vendor to Bill Payment

https://www.odoo.com/documentation/15.0/applications/finance/accounting/getting_s
tarted/process_overview/supplier_bill.html
Sales and Distribution Modules
 Case: Del Monte Fresh Produce
• A large producer of high quality fresh produce
and packaged food
• A global company operating in multiple
countries including India
• Shelf life being short, the produce have to be
sold and distributed quickly
• Multiple plants engaged in the procuring,
producing and packaging. Also multiple sales
offices throughout the country
• Oracle Sales and Distribution Module is used
Sales and Distribution: The Process
Pre-sales Sales Order
Activities Entry

Check
Availability

Pick
Materials
Receipt of
Customer Payment
Pack
Invoice Materials
Customer
Post Goods
Issue
Sales and Distribution: Functionality

• Sales Support
• Sales
• Shipping and Transportation
• Billing
SD: Structure for Sales Order Processing - Example

Client 410
Sales Area

Company Code Sales Org

C100 S100

Distribution Division
Channel (RE) (01)
Plant P100 Plant P101
SD: Internal Sales Structure - Example
US Sales Office
S100

Western Sales Eastern Sales

Office Office

Northwest Sales Southwest Sales Northwest Sales Southwest Sales

Group Group Group Group

Salesperson 1 Salesperson 4 Salesperson 6 Salesperson 7

Salesperson 2 Salesperson 5 Salesperson 8

Salesperson 3 Salesperson 9
SD: Structure for Distribution - Example

Client 410

Company Code
C100

Plant P100 Plant P101

Shipping Point Shipping Point Shipping Point

Rail Dock Express Dock Freight Dock

Loading Point Loading Point Loading Point

LP03 LP02 LP01
 SD: Pre-Sales Activities
• Sales Support is a component of SD that assists in the sales,
distribution, and marketing of a companies products and
services to its customers. It contains the following
functionality:
– Creating and tracking customer contacts and
communications (sales activity)
• Phone call records
• On-site meeting
• Letters
• Campaign communication
– Implementing and tracking direct mailing, internet, and
trade fair campaigns based on customer attributes
• Pre-sales documents need to be managed within the presales
activities: Inquiries and Quotations. These documents help
identify possible sales related activity and determine sales
probability.
 SD: Pre-Sales Activities
• The ultimate goal of all pre-sales activities is to equip the sales
technician with all the information necessary to negotiate and
complete the potential sale.

• Information needed:
– Past sales activity
– Past communication
– Contact information
– General Company info
– Credit limits and usage
– Current backorders

• 360º view of your customer

 SD Process: Inquiry
• An inquiry is a customer’s request to a
company for information or quotation in
respect to their products or services without
obligation to purchase.
– How much will it cost
– Material/Service availability
– May contain specific quantities and dates
• The inquiry is maintained in the system and a
quotation is created to address questions for
the potential customer.
 SD Process: Quotation
• The quotation presents the
customer with a legally
binding offer to deliver
specific products or a
selection of a certain amount
of products in a specified
timeframe at a pre-defined
price.
 SD Process: Sales Order
• Sales order processing can originate from a variety of
documents and activities
– Customer contacts us for order: phone, internet, email
– Existing Contract
– Quotations
• The electronic document that is created should
contain the following basic information:
– Customer Information
– Material/service and quantity
– Pricing (conditions)
– Specific delivery dates and quantities
– Shipping information
– Billing Information
 SD Process: Sales Order
• The sales document is made up of three primary
areas:
– Header
• Data relevant for the entire sales order: Ex:
customer data, total cost of the order
– Line Item
• Information about the specific product: Ex:
material and quantity, cost of an individual line
– Schedule Lines
• Uniquely belongs to a Line Item, contains
delivery quantities and dates for partial
deliveries
 SD Process: Sales Order
• The sales order contains all of the information
needed to process customers request, the
following information is determined for each
sales order:
– Pricing
– Availability Check
– Credit limit check
– Delivering Schedule
– Transfer of requirements to MRP
– Shipping point and route determination
 Sales Order: Delivery Scheduling
• When an order is created the you must
enter a requested delivery date for the
order or each line item.
• The system will then determine a
delivery timeline, this will be used
when determining material availability,
or ATP (Available to Promise) date.
• The system will determine this date
using forward and backward scheduling
rules you have defined.
 Sales Order: Backward Scheduling

Order Material Transp. Goods Requested

Date Availability Sched. Loading Issue Delv. Date
1st 2nd 3rd 4th 5th 6th

Transp. Loading Transit

Pick & Pack
Sched. Time Time
Time (2 days)
(2 days) Time (1 day)
(1 day)
 Sales Order: Forward Scheduling

Requested New
Order Material Transp. Goods Delv. Delv.
Date Sched. Loading Issue Date Date
Availability
1st 2nd 3rd 4th 5th 6th 7th
Transp. Loading Transit
Pick & Pack Sched. Time Time
Time (2 days) Time (1 day) (2 days)
(1 day)
 Sales Order: Shipping & Route Determination

• During the creation of the sales order the

system must determine the shipping point
from which the material will be shipped
and the route the material will take to get
from your warehouse to your customers
location.
• A shipping point is determined for each line
item within the order.
• The route determination is used to define
the transit time of the material that we
used in scheduling.
 Sales Order: Availability Check
• Availability Check
– Determines the material availability date
– Considers all inward and outward
inventory movements
• System can propose various methods of
delivery
– One-time delivery
– Complete delivery
– Delayed proposal
• Rules are created by system users for the
delivery proposal
 Sales Order: Pricing
• The system displays pricing information for all sales
documents on the pricing screens at both the header
and the line item level.
– Header pricing is valid for the whole order it is the
cumulative of all line items within the order
– Line item pricing is for each specific material.
• The system will automatically search for price,
discounts, surcharges, calculate taxes and freight. You
have the ability to manually manipulate the pricing at
both the header and line item level within the sales
order by entering a condition type and amount.
– Taxes and freight cannot be modified, calculated
directly based on the setup.
 Sales Order: Credit Check

• Allows your company to manage its

credit exposure and risk for each
customer by specifying credit limits.
• During the sales order process the
system will alert the sales rep about
the customers credit situation that
arises, if necessary the system can
be configured to block orders and
deliveries.
 SD Process: Shipping & Transportation

• The shipping process begins when you create

the delivery document for the sales order.
This document controls, supports, and
monitors numerous sub-processes for
shipping processing:
– Picking
– Packing
– Post Goods Issue
 SD Process: Shipping

Sales Order 1 Sales Order 4 Sales Order 5

Sales Order 2 Delivery 8…13 Delivery 8…16

Sales Order 3 Delivery 8…14

Delivery 8…12 Delivery 8…15

Order Partial Complete

Combination Delivery Delivery
 Delivery: Picking
• Quantities based on delivery
note
• Assigned date when picking
should begin
• Automated storage location
assignment
• Supports serial number/lot
number tracking and batch
management
• Integrated with Warehouse
Management (WM)
 Delivery: Loading and Packing
• Identifies which packaging is to be used
for specified products based on customer
preference and UCC-128(Uniform
Commercial Code) considerations
• Identifies and updates accounts
associated with returnable packaging
• Tracks the packed product by container
• Ensures weight/volume restrictions are
enforced
• All packed items are assigned to the
required means of transportation
 Delivery: Goods Issue
• Event that indicates the legal change in
ownership of the products
• Reduces inventory and enters Cost of Goods
Sold
• Automatically updates the General Ledger
(G/L) accounts
• Ends the shipping process and updates the
status of the shipping documents
 A video on distribution centre
(automated)

• https://www.youtube.com/watch?v=3TVA6vg
_D0g
 SD Process: Billing
• The billing document is created by coping data
from the sales order and/or delivery
document.
– Order-based billing
– Delivery-based billing
• The billing process is used to generate the
customer invoice.
• It will update the customer’s credit status.
 SD Process: Payment
• Payment is the final step in the sales order process,
this step is managed by the Financial Accounting
department.
• Final payment includes:
– Posting payments against invoices.
– Reconciling differences between payment and
invoice.
 ODOO-Corner
Learn ->
User Documentation ->
Sales>

Process 1. Quote to Cash

https://www.odoo.com/documentation/15.0/applications/sales/sales.html

Process 2. Product and Prices

https://www.odoo.com/documentation/15.0/applications/sales/sales.html
Manufacturing Modules
 Case : Collins Industries
Largest manufacturer of ambulances in the world
International competitor
12 major ambulance designs
18,000 different inventory items
6,000 manufactured parts
12,000 purchased parts
MRP is used to manage inventories: IBM’s MAPICS system
is used
Independent and Dependent Demand
Independent Demand

A Dependent Demand

B(4) C(2)

D(2) E(1) D(3) F(2)

Independent demand is uncertain.

Dependent demand is certain.
 Dependent Demand

Dependent demand: Demand for items that are

subassemblies or component parts to be used in
production of finished goods.
Once the independent demand is known, the dependent
demand can be determined.
 Demand Characteristics
Independent demand Dependent demand

100 x 1 =
100 tabletops

100 tables 100 x 4 = 400 table legs

Continuous demand
Discrete demand
400 –
400 –
300 –
No. of tables

300 –
No. of tables

200 –
200 –
100 –
100 –

1 2 3 4 5
Week M T W Th F M T W Th F
 Material Requirements Planning
Materials requirements planning (MRP) is a
computerized inventory planning and control system
for determining when (no earlier and no later) and how
many of each of the parts, components, and materials
should be ordered or produced.
It translates master schedule requirements for end
items into time-phased requirements for
subassemblies, components and raw materials.
Dependent demand drives MRP
MRP is a software system
 When to Use MRP

 Dependent and discrete items

 Complex products
 Job shop production
 Assemble-to-order environments
Material Requirements Planning System
Based on a master production schedule, a material
requirements planning system:
Creates schedules identifying the specific parts
and materials required to produce end items
Determines exact unit numbers needed
Determines the dates when orders for those
materials should be released, based on lead
times
 Aggregate Forecasts
Firm orders
production of demand
from known
plan from random
customers
customers

Engineering Master production

Schedule (MPS) Inventory
design
transactions
changes

Material
planning
Bill of (MRP Inventory
material computer record file
file program)
Secondary reports
Primary reports
Exception reports
Planned order schedule for Planning reports
inventory and production Reports for performance
control (work orders, purchase control
orders), rescheduling notices
©The McGraw-Hill Companies, Inc., 2004
 Bill-of-Materials

Bill of materials (BOM): One of the three primary inputs of

MRP; a listing of all of the raw materials, parts,
subassemblies, and assemblies needed to produce one
unit of a product.
Product structure tree: Visual depiction of the requirements
in a bill of materials, where all components are listed by
levels.
 Product Structure Tree: Example 1
Level Chair
0

1 Leg Back
Assembly Seat Assembly

Cross Side Cross Back

2 Legs (2)
bar Rails (2) bar Supports (3)

3
 Basic MRP Processes
1. Exploding the bill of material
2. Netting out inventory
3. Lot sizing
4. Time-phasing requirements
 MRP Outputs
 Planned orders (schedule indicating the amount and
timing of orders)
Work orders
Purchase orders
 Order releases (authorization for the execution of
planned orders)
 Changes to previous plans or existing schedules
(revision of due dates or order quantities, or
cancellations of orders)
Action notices
Rescheduling notices
 MRP Secondary Reports
Performance-control reports
Planning reports
Exception reports
 Benefits of MRP
 Reduced inventories without reduced customer service
 Ability to track material requirements
 Ability to evaluate capacity requirements
 Means of allocating production time
 Increased customer satisfaction due to meeting delivery
schedules
 Faster response to market changes
 Improved labor and equipment utilization.
 Better inventory planning and scheduling
Manufacturing: Shop Floor Control
Manufacturing: Functions of Shop Floor Control
 Manufacturing:
Shop Floor Control: Automated data collection
 Manufacturing –
QUALITY MANAGEMENT

Quality management is the act of

overseeing all activities and tasks needed
to maintain a desired level of excellence.

Stages of Quality Management

• Quality Planning
• Quality Inspection
• Quality Control
 Manufacturing –
QUALITY MANAGEMENT – Quality Planning

Quality Planning: Management of basic

data for quality planning and
inspection planning, Material
Specifications, Inspection Planning
 Manufacturing –
QUALITY MANAGEMENT – Quality Inspection
• Trigger Inspections
• Inspection Processing with
inspection plan selection
and sample calculation
• Print shop papers for
sampling and inspection,
• Record results and defects,
make the usage decision and
trigger follow-up actions
 Manufacturing –
QUALITY MANAGEMENT – Quality Control
• Dynamic sample determination on the
basis of the quality level history
• Application of statistical process control
techniques using quality control charts
• Quality Scores for inspection lots
• Quality notifications for processing
internal or external problems
• initiating corrective action to correct the
problems
• Inspection lot processing and problem
processing
 Lean Manufacturing and JIT
• Aim to reduce the system operational
inefficiencies and the resulting waste by
identifying the sources of these
inefficiencies and working proactively to
eliminate them as much as possible.
• In the emerging philosophy, inventories
should be carefully controlled and they
should not function as the mechanism for
accommodating the system inefficiencies
=> Just-In-Time (JIT)
• The aforementioned effort should be an
ongoing process towards continuous
improvement rather than one-time/shot
effort.
Targeting the sources of inefficiency
– Input
• unreliable quality of raw material
• unreliable delivery times

– Operation
• unreliable processes in terms of
– required processing times
– process outcome
• complex interacting process flows
• long set-up times
• unreliable (irresponsive and irresponsible) personnel

– Output
• Highly variable production requirements in terms of
– production volume, and
– production scope
 JIT (Just in Time) Manufacturing
• Emphasis on quality at both the process and
the supply side by promoting
– Statistical Process Control (SPC) theory and
practice
– Quality certification programs
– Deployment of stable automated processes
and foolproof practices (like checklists and
machines gauges) to guarantee the desired
performance
– Employee empowerment and knowledge
management (quality circles)
 Case: JIT – Lean Manufacturing

Video: Lean Manufacturing @ Atlas Copco

https://www.youtube.com/watch?v=fMOPyHyNFw8
 MANUFACTURING - Cost Management

Cost Management: Planning,

measuring and controlling the
cost associated with various
items and activities.

Costing Methods:
• Weighted Average
• Standard
• LIFO
• FIFO
 MANUFACTURING - Cost Management

• Standard Costing – It is a pre-determined or pre-

established cost to make a unit of finished product.
• Actual cost is the actual cost of direct materials,
direct labor, and overhead to make a unit of
product.
• The difference between actual cost and standard
cost is called variance.
 MANUFACTURING - Cost Management

• Average Costing – Cost is calculated as moving

average of cost of items. It is used primarily for
distribution and other industries where the
product cost fluctuates rapidly, or when dictated
by regulation and other industry conventions.
 Other Costing Methods
• FIFO Costing
 FIFO costing values inventory by assuming that the oldest
inventory (first in) is the first to be used or sold (first out), but
there is no necessary relationship to the physical movement of
specific items
 FIFO supports WIP costing
• LIFO Costing
 LIFO costing values inventory by assuming that the most recently
received item (last in) is the first to be used or sold (first out), but
there is no necessary relationship to the physical movement of
specific items
 LIFO supports WIP costing
 Manufacturing:
Engineering Data Management and Change Control

• Product data management (PDM)

or Product information
management (PIM) is the business
function often within product
lifecycle management (PLM) that
is responsible for the management
and publication of product data.
• Product data management is part
of product lifecycle management
and configuration management,
and is primarily used by engineers.
Manufacturing: Engineering Data Management

• Serves as a central knowledge repository for

process and product history
• Promotes integration and data exchange
among all business users who interact with
products — including project managers,
engineers, sales people, buyers, and quality
assurance teams.
 Engineering Change Management
• Changes in the design and control of the same
• Sample Change request :
Engineering
Change
Management
 MANUFACTURING :
Serialization/Lot Control
Serialization/Lot control help
establish traceability in
manufacturing.
Traceability is the ability to
trace all processes from
procurement of raw
materials to production,
consumption and disposal to
clarify "when and where the
product was produced by
whom.“
Manufacturing – Serialization/Lot Control
Serialization helps in
• Combat counterfeiting
• Manage recalls
• Enhanced ways to identify items
• Produce & record unique characteristics as quality
test results (inspections)
• Ensure regulatory compliance
• Meet unique customer requirements
• Improve warehouse efficiency
• Increase Inventory accuracy
Manufacturing – Serialization/Lot Control
Serialization/Lot control involves
• Assigning Lot IDs and Serial Numbers
• Tracking parameters such as status and expiration
date
• Printing Bar code Labels and LPNs(License Plate
Numbers)
• Recording of batch/serial numbers for purchased
items
 ODOO-Corner
Learn ->
User Documentation ->
Inventory&MRP>
Manufacturing

Process 1. Manufacturing Management

https://www.odoo.com/documentation/15.0/applications/inventory_and_mrp/manufac
turing.html
 Plant Maintenance Module
This module covers plant/equipment maintenance.

Major Sub-systems are:

Maintenance Category
Types of Maintenance Activities
 Plant Maintenance – Preventive Maintenance
• Preventive maintenance control
enables organization to lower their
repair costs by avoiding downtime.
•Equipment Lubrication,
component replacement, and
safety inspection can be planned,
scheduled and monitored.
•It includes tracking of hours of
operation, units of production
produced, gallons of fuel
consumed, or number of days since
last service.
 Plant Maintenance – Equipment Tracking

• Equipment is an asset that needs

to be monitored and protected.
• In asset intensive organizations,
equipment maintenance cost constitute single largest
controllable expenditure.
• In the system, each piece of equipment is defined by
a model and a serial number.
•Asset acquisition and deposition information is
maintained
• All these information help technicians maintaining
the equipment proper maintenance.
 Plant Maintenance – Component Tracking

• Components are typically subsets of

larger equipment and deserve the same amount
of cost controlling scrutiny.
•Component tracking enables equipment
managers to identify components with chronic
repair problems.
•It is tracked whether component is covered
under warranty
•Planning components replacements, rather than
waiting for component failure, reduced
unscheduled equipment downtime.
 Plant Maintenance – Warranty Claims Tracking
• Administrative system designed to
provide control of all items covered by
manufacturer and vendor warranties.
•It enables plant management to
recover all of warranty and
reimbursements which they are
entitled.
•Features include ability to establish
the type and length of warranty or
operating units.
•A complete history is maintained for
each item covered by the warranty.
Example preventive maintenance solution:
Video

https://www.youtube.com/
watch?v=GrIzRL2d41c
 ODOO-Corner

Process 1. Maintenance
https://www.youtube.com/watch?v=5x2v48yjY3Y
Material Management Module
Material Management Module
Sub-modules in Material Management
a. Pre-purchasing Activities
a. Pre-purchasing Activities
a. Pre-purchasing Activities
b. Purchasing
b. Purchasing: Steps
 b. Purchasing:
Purchase Requisitions
• The first step in the purchasing
cycle is preparing purchase request
• Purchase Request (PR) is a
document used to inform the
purchasing department in a office
or a department needs to buy
something.
• It is raised by the line managers
• It is basis for preparing a purchase
order (PO)
 b. Purchasing:
Selecting Suppliers
 C. Purchasing: Vendor Evaluation
• Suppliers are compared based on
quality of delivery, timeliness, price,
company stability, reliability etc.
• The supplier evaluation matrix is
prepared based on the one or more
parameters mentioned above.
• Information such as delivery dates,
prices and quantities are taken from
PO, the continual monitoring of
existing supply relationships.
c. Vendor Evaluation
c. Vendor Evaluation
c. Vendor Evaluation
c. Vendor Evaluation
 d. Inventory Management

• Inventory Management system

allows you to manage stocks on
a quantity and value basis.
• Enables to plan, enter and
check any goods movements
and carry out physical
inventory checks.
 d. Inventory Management
• In the inventory management system, the
physical stocks reflect all transactions resulting in
change in stock and thus, in updated inventory
levels.
• Physical Counting: Entire warehouse is shutdown
and counting is done. Typically done once a year.
• Cyclic Counting: Only part of the warehouse is
counted periodic basis.
d. Inventory Management
d. Inventory Management
d. Inventory Management
e. Invoice Verification and Material Inspection

• Invoice Verification component

is part of the Material
Management System.
• Received materials are checked
for quality and quantity, as part
of invoice verification.
• This module acts as the link
between material management
components and the financials
accounting, controlling and
asset accounting components.
e. Invoice Verification and Material Inspection
e. Invoice Verification and Material Inspection
e. Invoice Verification and Material Inspection
e. Invoice Verification and Material Inspection
 -
• Automated Inventory and Purchasing
Management Example:
Microsoft Dynamics - Video

https://www.youtube.com/watch?v=i9HpWkKZt
uk
 ODOO-Corner
Learn ->
User Documentation ->
Inventory&MRP>
Purchase

Process 1. Procure to Pay

https://www.odoo.com/documentation/15.0/applications/inventory_and_mrp/purchase
.html
Thank You
Who plays the critical role in planning and executing
Customers System Integrators Vendors Top Management
implementation of ERP.
_______process consists of all the steps involved in
Fulfilment Procurement Buying None
delivering the products to the customers
different parts of the
Typically business process span across companies management chain All of these
organization
ERP systems have
been widely adopted
in large organisations
ERP systems provide a ERP systems enable
to store critical
foundation for people in different
Which of the following describes an ERP system? knowledge used to All of the above
collaboration between business areas to
make the decisions
departments communicate
that drive the
organisation's
performance
Critical Reponse Crisk Reporting
CRP stands for Conference Room Pilot Continues Response Package
Processing Practices
Moving to internet Moving to client server
Recent trend in ERP is Moving to RDBMS Adaption of cloud
technology technology
It is integrated Going for big bang
ROI will always be very
Which of the following best describes ERP across functions and approach is a sure shot All of the above
high
departments failure
______is a mirror image of the major business process of
MIS ES EIS ERP software
an organisation
It is important to have proper ___________ during ERP Organization Change
Cost Mangagement Schedule Management Quality Management
implementation in order to reduce people resistance Management
Employee salary costs will finally accounted in Accounts Receivable General Ledger Accounts Payable Any of these
NEFT is a system for discounting invoices posting journal entries cancelling invoices Electronics payment
Cost centre accounting help in Controlling costs Planning costs Reimbursing expenses Any of these
Consistent accounting can be enforced throughout Central receivable
Central Asset system Central payment system Central Chart of Account
organization through system
when creating a when creating a sales
Credit check is typically done when creating a quote when shipping the goods
customer order
The person who ensures that systems are developed on
systems builder systems designer systems owner project manager
time, within budget, and with acceptable quality is a
GAAP is a Invoice standard Accounting standard Data exchange standard User Interface Standard
Setting spending limits by
Budgeting enables Electronics transfer Make batch payments All of these
Accounts
Verifying account
Receiving P&L Sending Accounting entries
Bank Reconciliation involves balance against bank Any of these
report from bank to bank for verification
statement
Management Operational Accounting
Finance system involves Both None
Accounting Only Only
must contain total need not contain total cost Can belong to multiple
A sales order Generated before quote
cost of the order of the order customers
 Sales and distribution Finance reporting Inventory planning and control
MRP is a Demand execution system
system system system
Manufacturing
Material Requirement
Materials Requirement Resource Planning I
planning and
MRP I stands for ________________ and Planning and phase and
Advanced Material Any of these
MRP II stands for ________________ Manufacturing Resource Manufacturing
Requirement
Planning Resource Planning II
Planning
Phase
Always are based on Pre-built software Always use single
ERP systems are Custom built products
cloud products technology
Lack of top
Which of the following could be reason for ERP failure Wrong Product Poor program managemnt management All of these
commitment
At the centre of the ERP product lies Database Information Employees Customers
ERP supports __________ currency value five single three multiple
Systems that support end to end processes and that are
essential to the efficient and effective execution and Enterprise systems Information systems DSS MIS
management of business process are called______
have only single line belong to multiple
In a sales order, one header can have multiple line items All of these
item orders
Available To Average Transaction
ATP in sales module means After Taking Price None of these
Promise Price
ERP tools are ___________ for human intelligence and
is a substitute not a substitute alternative similar to the
decision making
___________ focus on the process of communicating,
Functional
teaching, demonstrating and configuring software for the Management consultants. Package vendors. Application consultants.
participants.
business process flows.
During the 80s, tools were developed to assist the Datawarehousing
Production levels Priority planning system Automated functions
planning of: requirements

Important point to be kept in mind while evaluating ERP

software is the total costs that includes

1. Cost of license 1, 2, 3, & 4 1, 2, & 3 2, 3, & 4 1, 2, & 4

2. Cost of Training
3. Implementation and maintenance cost.
4. Customization and hardware requirements costs.

Follow up with
Dunning letters are nothing but Reminder to suppliers Attachment to the invoices customers for unpaid None of these
invoices
Postponing revenue
Advancing revenue
recognition when Revenue recognition on
Deferred revenue enables recognition ahead of Reversing revenue recognition
customer has paid burning of effort
delivery
prior to delivery
Not Produced
NPV stands for Non paid Value Net Present Value None of these
Variable
Which of the following is not a feature of finance system Goods Receiving Generation of P&L Budgetary control Bank Reconciliation
Setting up of various sales offices and manufacturing Sales and Distribution
Financial Modules CRM modules Any of these
plants is typically part of Module
have only one have multiple schedule belong to multiple
In a sales order, one line can All of these
schedule line lines orders
always hosted on the
ERP products are Configurable Not configurable always hosted on-premises
cloud
Initiating corrective action is part of Quality Planning Quality Control Quality Inspection All of these
Material Management and Financial accounting is linked Invoice verification Quality inspection
through component Stock receiving component component Any of these
Which of the following is NOT a CRM system Pega Salesforce.com Oracle CRM IBM Mapics
Decentralized customer Centralized customer
A key part of CRM is to have A vendor master master master All of these
across sales, across inventory, across recievables,
It is important to have synchronized experiece for the marketing and manufacturing and quality payables and general
customer service touch points control operations ledger processes across shop floor processes
improve effeciency of improve efficiency of the improve efficiency of
Which of the following is one of the aspects of CRM the inventory system call centres internal financial audits All of these
It helps set up rules
distributing sales and
service work through It helps establish brand It integrates customer
Which of the following is NOT a benefit of CRM out the company name information It reduces the inventory costs
Earlier versions of CRM are called MRP Relationship Marketing ERP MIS
Request For
RFP stands for ____________________ . Request For Processing Request For Profits Request For Productivity
Proposal
Human Competency Shipping label barcode System development
UCC-128 is a Pricing standard
level standard standard
Identify the two aims of JIT approach applied to the
organization.
1. Production system
2&3 1&2 1&4 3&4
2. Elimination of Waste
3. Total Employee Involvement
4. Production philosophy
When product cost is fluctuating rapidly, it is better to use LIFO Standard costing Average costing FIFO
Tracking hours of operations, units of production Preventive Breakdown
Corrective Maintenance All of these
produced, fuel consumed etc. are done in Maintenance maintenance
Preventive maintenance help in Increasing efficiency Reducing repair costs Minimizing downtime All of these
Model and serial Asset acquisition Asset deposition
Equipment tracking system maintain All of these
number information information
Calibration tracking is part of Plant maintenance Purchasing Financials HRMS
Vendor as well as
Types and length of History of warranty
A warranty claim tracking system tracks manufacturer All of these
warranty services
warranties
Ensuring inventory
Material Management involves Purchasing Supplier Evaluations All of these
accuracy
Description of all services that are to be procured is Service Master
Accounting database Inventory database HR database
typically stores in Database

Identify the subsystems of Plant Maintenance module of

an ERP system: 1. Component Tracking2. Preventive
1&2 1, 2 & 3 2, 3 & 4 1, 3 & 4
Maintenance Control3. Inventory Management4. Cost
Management

Which of the following uses sophisticated mathematical

and statistical techniques such as neutral networking and CRM Data survey Data mining None
cluster analysis.
Percentage or number of customers who move from one
marketing rates conversion rates shopping rates loyalty rates
level to next level in buying decision process is called
Company's 'customer relationship capital' is another name
satisfied customers dissatisfied customers customer retention customer conversion
of
Programs designed for customers which is limited to any club membership
royalty programs loyalty programs group membership programs
affinity group are classified as programs
In an Internet context, this is the practice of tailoring Web
Web services personalization customer-facing client/server
pages to individual users’ characteristics or preferences.
This is a broad category of applications and technologies
for gathering, storing, analyzing, and providing access to business information
business warehouse business intelligence data mart
data to help enterprise users make better business warehouse
decisions.
This is a systematic approach to the gathering,
consolidation, and processing of consumer data (both for service oriented
marketing encyclopedia application integration database marketing
customers and potential customers) that is maintained in a integration
company’s databases.
This is a central point in an enterprise from which all
help system contact center multichannel marketing call center
customer contacts are managed.
Accounting, finance, Customers, resellers,
Sales, marketing, customer
Who are the primary users of SCM systems? logistics, and partners, suppliers, All of the above
service
production and distributors
Who plays the critical role in planning and executing
System Integrators Customers Vendors Top Management
implementation of ERP.
Material Requirement Planning(MRP) utilizes software human resource
sales management marketing techniques inventory
applications for planning management
Inventory items people who will be
Inventory items which
The skill inventory is the list of which are finished working in the All of these
are raw material
goods production line
_______provides high quality, timely and relevant reports
TPS ERP systems ES MIS
based on which managers can make decisions
MRP gets the details of the materials required to make the
BOM MRP II MPS None
products from
The _______ module's internal functions do not directly Quality
Sales and Distribution Finance Plant Maintenance
interact with the data or processes of other modules. Management
During the 80s, tools were developed to assist the
CRM functions Priority planning system Capacity requirements Production levels
planning of:
________________ allow departments to enter
Purchase order Purchase requisitions Invoice General ledger
requirements for various types of items.
Only big Both small and big Medium scale
Web ERP is suitable for ____________ . Only small organizations
organizations organizations organizations
It is not best to treat It is best to treat ERP
It is best to treat ERP as an It is best to treat ERP as an
ERP as an investment as an investment but
As processes become more automated and efficient, disinvestment as well as a investment as well as a cost-
as well as a cost- not as a cost-cutting
cost-cutting measure. cutting measure.
cutting measure. measure.
The only problem
with the planning of The only problem with the The only problem with The only problem with the
Identify the correct statement. implementation is package vendors is that the employee training is business consultants is that
that it is very they are very expensive. that it is very expensive. they are very expensive.
expensive.
Supply Chain Management broken down into Downstream
Upstream activities Internal activities All of Above
___________ activities
The process of taking active role in working with
suppliers to improve products and processes is called SCM Sale ERP marketing.
______________.
The person who ensures that systems are developed on
systems builder systems designer systems owner project manager
time, within budget, and with acceptable quality is a
If a university sets up a web-based information system
that faculty could access to record
ERP CRM Intranet None
student grades and to advise students, that would be an
example of a/an
Managing employee expenses is typically part of Accounts Payable Account receivable General Ledger Any of these
Can combine
Can split order into
A shipping process typically multiple orders into Both None
multiple shipments
single shipment

Be involved in the
project initiation
phase where the
Not assist in the gathering Not be involved in Involve only in vendor
The stakeholders within the enterprise must decision making
of requirements vendor demonstration demonstration
process is agreed
and attend Vendor
demonstrations
The sales and distribution modules of many ERP vendors,
Manufacturing,
offer a comprehensive set of best of its kind components Order, Logistics Sales, Distribution Planning, Business
Production
for both _______ and _______ management.
Identify the two aims of JIT approach applied to the
organization.

1. Production system 1&2 2&3 1&4 3&4

2. Elimination of Waste
3. Total Employee Involvement
4. Production philosophy

Identify the correct answer: The three major activities

associated with ERP inventory management are:A.
Identifying inventory requirements B. Customer contact A,C,D B,C,D D,A,B C,B,A
ManagementC. Monitoring item usagesD. Integrating the
inventory balances

CRM yields employees with ______________ and

improves personal Work, work
Work advantage, work Customization, work Customization, work advantage
advantage
___________ efficiencies

Identify the right answer.

The two major objectives of Human Resources are:

A. Make managerial role redundant. A,C B,C, D,A, B,D
B. To make the workflow cost effective.
C. To provide higher salary to employees.
D. To provide self service benefits to the employees.

The ____________________ and

Supplier
____________________ manage the supplier relations, Supplier management, Supplier maintenance, Supplier maintenance,
management,
monitor the vendor activities and manage the supplier customization processes control processes customization processes
control processes
quality in an organization.

Arrange the following statements in correct order

A. Determining the timing of data migration
B. Deciding on migration related setups
C. Identifying the data to be migrated F, D, A, C, B, E C, F,A,B, D, E C, A, F, D, B, E D, A, C, B, E, F
D. Freezing the tools for data migration
E. Deciding on data archiving
F. Generating the data templates
The reason from separating operational database in data to avoid system
to provide security to provide ease of use to provide backup
warehousing is performance degradation
____________ allows an analyst, who is not professional
in statistics and programming, to extract knowledge from DSS EIS Data mining MIS
data
___________ provides summary and exception reports DSS MIS EIS Data warehousing
Database
Physical data model is designed by Systems Analyst Data Architect All of these
Administrator
In which type of approach, we further dig the data for
Roll up Slice Dice Drill down
retrieving information from higher level to lower level
Handling and sharing of which of the following has
become a vital process for efficient and effective working Material Information Resource Database
of any organisation.
Material Requirement Planning(MRP) utilizes software
sales management inventory marketing techniques human resource management
applications for planning
HR manager point of
While designing business process it is important to have Inward point of view Vendors point of view The customers point of view
view
MRP uses the ______to find out what produce are going
Bill of Manufacturing Bill of Materials Requirements list None
to be made
During the 80s, tools were developed to assist the Datawarehousing
Production levels Priority planning system Automated functions
planning of: requirements
Electronic Data Exchange Data
What is EDI? Electronic Data Interface Exchange Data Interface
Interchange Interchange
use the transaction
process business
create and share documents data to produce capture and reproduce the
transactions (e.g.,
Management information systems (MIS) that support day-today information needed by knowledge of an expert problem
time cards, payments,
office activities managers to take solver
orders, etc.)
decisions
Managing employee expenses is typically part of Account receivable Accounts Payable General Ledger Any of these
Computer simulation is an example for Active model Descriptive model Diagramatic model data model
A means of representing the steps, participants and Business Process
Database modeling Data Modeling All of these
decision logic in business is called Modeling
Initiating corrective action is part of Quality Planning Quality Control Quality Inspection All of these
Material Management and Financial accounting is linked Invoice verification Quality inspection
through component Stock receiving component component Any of these
Which of the following is NOT a CRM system Pega Salesforce.com Oracle CRM IBM Mapics
A key part of CRM is to have Decentralized customer Centralized customer
A vendor master master master All of these

It is important to have synchronized experiece for the across sales, across inventory, across recievables,
customer marketing and manufacturing and quality payables and general
service touch points control operations ledger processes across shop floor processes
Which of the following is one of the aspects of CRM improve effeciency of improve efficiency of the improve efficiency of
the inventory system call centres internal financial audits All of these
Ensuring inventory
Material Management involves Purchasing Supplier Evaluations All of these
accuracy
Description of all services that are to be procured is Service Master
Accounting database Inventory database HR database
typically stores in Database
Identify the subsystems of Plant Maintenance module of
an ERP system:
1. Component Tracking
1&2 1, 2 & 3 2, 3 & 4 1, 3 & 4
2. Preventive Maintenance Control
3. Inventory Management
4. Cost Management
The reengineering team must consider _________ in the all process
existing system. all resources. legacy system.
redesign of a process. stakeholders.
The ________ contains models of the redesigned
planning report. blueprint. marketing strategy. implementation report.
organizational structure.
The data warehouse archives contain __________ of
old data. new data. current data. . meta data
significant, continuing interest and value to the enterprise
. ____________ oversee the day-to-day operations of
Consultant. Functional managers Package vendor. End users.
respective functional areas during ERP implementation.
DSS,EIS and query
__________ is used to produce reports about data DSS Data access. . Query writing tools
writing tools
A _________ provides more than the ability to "slice and single dimensional view of multi dimensional
. reports. forms.
dice". data. view of data
________ departments use OLAP for applications such as
Sales. Marketing. Purchasing. Financial.
budgeting, activity based costing and so on.
_________ is one of the benefits of supply chain Manufacturing make- Faster response-to-market
Minimum time. Easy process.
management. to-stock products. changes.
Decision makers who are concerned with tactical (short-
middle managers executive managers supervisors mobile managers
term) operational problems and decision making are
The company's objective is to make the package work
consultant's. vendor's. management's. technical support team's
successfully as documented in the _______ manual.
Who is responsible to check and verify the work that is Project development
Executive committee Vendor. Consultant.
being done satisfactory? team.
consultant and
Before the implementation _____ should sit together and consultant and
vendor and consultant. company vendor and management.
prepare a work plan. management.
representative.
Non technical employees and managers can act as
pre-implementation. post implementation. implementation . training.
functional experts during ______.
The long term use of ERP could change the border
. function. . enterprise structure structure and function
organization in terms of its _____.
______ bringing out ERP application management tools Employees. Executive committee Consultants. Technical support team.
In an integrated data model, what gives a snapshot of the
Management ERP Database MIS
organization at any given time?
DSS is quite _______________ and is available on
Non-structured Structured Unstructured Semi-structured
request.
Most ERP packages are stronger in _____ areas. all. certain. less. general.
Open orders which Closed orders which are Open orders
Scheduled receipts contain orders that are Cancelled Orders
are received received scheduled to arrive
Defects are recorded as part of Quality Inspection Quality Planning Quality control None of these
achieving economies of
Vendor managed inventory will help in All of these Reduce inventory costs Enhance demand visibility
scale
ODOO is an Open Source ERP Closed Source ERP Proprietary ERP Legacy ERP
Customer specific products are also known as
goods. make-to-stock. make-to-order. expected products.
__________.
Using __________ system, business can gain effective engineering change engineering change
inventory. production planning.
control over engineering change orders order. control.
 It is best to treat ERP It is best to treat ERP
It is not best to treat ERP as It is best to treat ERP as an
as an disinvestment as an investment as
As processes become more automated and efficient, an investment as well as a investment but not as a cost-
as well as a cost- well as a cost-cutting
cost-cutting measure. cutting measure.
cutting measure measure.
The ____________________ and Supplier
____________________ manage the supplier relations, management, Supplier management, Supplier maintenance, Supplier maintenance,
monitor the vendor activities and manage the supplier customization control processes control processes customization processes
quality in an organization. processes

In the next generation, DSS hardware and software will

be embedded with the latest technological innovations like
the1. Planning and forecasting models,2. Fourth 3&4 1, 3, & 4 1&3 1, 2, & 3
generation languages,3. Artificial intelligence.4. Data
mining

Top level Operational

TPS and MIS assist Middle management level None
management management
S in SMAC stands for Social Supervisory Special Smart
The early big success in cloud offering solution was Oracle Cloud Microsoft Azure SAP S/4 HANA Amazon web services
Which of the following is NOT a Cloud offering Amazon web services IBM mini Microsoft Azure Microsoft Office 365
One or more One or more
A service order will have One or more sales orders None of these
Purchase orders assignments
Which of the following can be confirmed using service travel and working
Expenses Service performed All of these
confirmation feature in field service module times
Online and via mobile
Typically service confirmations are created Only by customer Offline only None of these
devices
Service Billing profitability analysis helps evaluate market
Order Product Customer All of these
segments based on
Service Level
Service agreement include information about Price agreement Billing agreement All of these
agreement
Service Agreement Product agreement Sales agreement
The service levels are committed to customer in None of these
document document document
Service level Parts that are covered by
Which of the following is NOT part of a Service Contract Service quotations Price Agreements
agreement contracted services
The first step in Sales cycle is Create Quote Convert to opportunity Create a lead Create Invoice
__________ used to support the old process to become
Transitioning the
useful in the new process, involves reducing some software management. front-office software. information system.
information
requirements while expanding others.
The traditional business system is called as _________. effective method. modern method. advanced method. legacy method.
_________ approaches reduces data redundancy and
Data base. Legacy system. Information system. Integrated data model.
provide update information.
The elapsed time between placing an order and it
waiting time. elapsed time time interval. . expected time.
receiving it is also known as _____.
 Time phased
MRP translates master schedule into a Gantt chart a series of risk map requirements for All of these
subassemblies
Accuracy, System oriented,
Precise, Concise and
Three fundamental charactersitics of information are Relevancy and Human oriented and Any of these
Pleasant
Timeliness Organization Oriented
The output produced by MIS typically are Charts Reports Graphs All of these
Computer simulation is an example for Descriptive model Active model Diagramatic model data model
Simple, Medium and Logical, Physical and Diagramatic, Conceptual, Logical and
Three levels of data model are
Complex intermediate descriptive and Active Physical
If an order is found in the database but corresponding Data security is Data Integrity is
Primary key is missing Data robustness is missing
customer already is deleted then we say missing missing
always hosted on the
ERP products are Not configurable Configurable always hosted on-premises
cloud
In a swap lane diagram each lane represents A process A role An entity A decision point
Assemble-to-order Build to stock Design-to-order
MRP suits most in Any of these
environment environments environment
Information should not be presented either too lenghthy or
too short. This characterisitcs of information presentation Precise and Concise Accuracy Flexibility Impartiality
is called
understanding the currnt clarifying
Process mapping helps in All of these designing new procedures
processes responsibilities
Customer Numbr is an attribute of Attribute relation Customer-order relation entity relation Customer entity
Order line to Order Schedule line is Many to One relation Many to Many relation One to Many relation One to One relation
The difference between standard cost and actual cost is
known as Variance Profit Liability cost Lost sales
Material Management and Financial accounting is linked Stock receiving Invoice verification Quality inspection
through component component component Any of these

Which among the following information is available in the

Supplier file?
1. Purchasing information
3&4 1 1, 2, 3 & 4 2&3
2. Payment terms
3. Tolerance for receiving and invoicing
4. Addresses

Employee groups
for empowerment Collaboration of
Quality circles are nothing but A shop floor area None of these
and knowledge multiple companies
management
Which of the following is NOT a purchasing activity Goods receiving Materials planning Picking and Packing Inventory management
Preventive maintenance help in Increasing efficiency Reducing repair costs Minimizing downtime All of these
Model and serial Asset acquisition Asset deposition
Equipment tracking system maintain All of these
number information information
Whether a component is covered under warranty or not is Warranty tracking
Purchasing system Accounts Payable Any of these
tracking in system
Distribution industries predominantly use Average costing Standard costing LIFO FIFO
Tracking hours of operations, units of production Breakdown Preventive
Corrective Maintenance All of these
produced, fuel consumed etc. are done in maintenance Maintenance
Serialization helps in Increase profits Quality Control Reduce inventory costs Establishing Traceability
ETO means Engineer-to-Order Engineer-to-Offer Enterprise-to-Order Enterprise-to-Offer
When product cost is fluctuating rapidly, it is better to use Average costing Standard costing LIFO FIFO
Last Produced License Prioritized License Plate
LPN in lot control stands for List Partial Numbers
Number Numbers Numbers
Ensuring inventory
Material Management involves Purchasing Supplier Evaluations All of these
accuracy
In which of the following, the application stack is also
IaaS PaaS SaaS All of these
included
Cloud and onpremise
Cloud is always On-premise is always On-premise predominantly works
which of the following is true differ in terms of cash
cheaper cheaper on subscritption model
flow requirements
Data science includes components of _____ models Mathematical Statistical Compuational All of these
Information technology
A data scientist typically has the knowledge of Business processes Statistical methods All of these
knowhow
Machine to Machine
One of the characterstic of IoT is It is self healing It always has RDBS All of these
communication
Cloud is becoming In public cloud setup
Cloud is always
prominent because customers do not have
which of the following is true better than On- All of these
hardware is becoming very choice when to
premise
cheap upgrade
in SaaS you have
IaaS provides
No differece. They are choice of Operating SaaS provides application
The difference between SaaS and PaaS is that application layer,
fundamntally same. system, in PaaS you do layer. IaaS does not.
SaaS does not
not.
EIS is for senior
management and MIS is highly structured TPS often uses external
which of the following is true All of these are true
DSS is for middle where as DSS is not. data
management
In datawarehousing, OLAP is for middle
The difference between datawarehousing and OLAP is old data is moved to managemnt while OLAP always cheaper datawarehousing is very old
that separate database. datawarehousing is for than datawarehousing technology compared to OLAP
In OLAP it is not. senior management
Capsule Allocation Bar code automation Production Activity Production Streamlining System
Shop floor control systems are also known as
Control (CAP) systems Control (PAC) (PSS)
Prior Liability Product Life Cycle Preventive Liability
PLM stands for Primary Logical Management
Method Managemnt Management