COPY: ERP Systems: Production & Materials Management
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Questions and Answers

What is a key benefit of integrating ERP systems with activity-based costing systems?

  • It eliminates the requirement for process controls.
  • It simplifies the budgeting process without any formal measures.
  • It improves the accuracy and availability of activity cost driver information. (correct)
  • It reduces the need for direct costs calculation.

    • How do ERP systems contribute to production planning and materials management?

  • By eliminating the need for JIT systems.
  • By linking production planning directly to organizational sales forecasts.
  • By facilitating communication along the supply chain. (correct)
  • By focusing solely on financial metrics.

    • What role does activity-based budgeting play in the context of ERP systems?

  • It does not require the collection of nonfinancial measures.
  • It anticipates demand and estimates practical capacity. (correct)
  • It focuses exclusively on financial indicators.
  • It relies only on historical data for planning.

    • Which of the following is NOT a feature of SAP’s R/3 system related to materials management?

    <p>Facilitates uncoordinated inventory tracking.</p> Signup and view all the answers

    What is a challenge that activity-based costing systems face according to the content?

    <p>Identifying accurate activity cost drivers can be difficult.</p> Signup and view all the answers

    Which characteristic of ERP systems contributes to improved process integrity?

    <p>They collect nonfinancial measures as drivers through a formal process.</p> Signup and view all the answers

    What does activity-based costing allow businesses to do regarding direct costs?

    <p>Attribute direct costs to specific products based on accurate drivers.</p> Signup and view all the answers

    What aspect of traditional production systems is regarded as a limitation?

    <p>Their lack of integration within the organization.</p> Signup and view all the answers

    What is the primary goal of a manufacturing execution system (MES)?

    <p>To provide production-focused real-time feedback</p> Signup and view all the answers

    What is a disadvantage of traditional production systems addressed by ERP systems?

    <p>Inaccurate forecasting leading to excess inventory</p> Signup and view all the answers

    Which of the following processes is NOT part of Material Resource Planning (MRP)?

    <p>Developing marketing strategies</p> Signup and view all the answers

    Which component does the Materials Management System NOT directly support?

    <p>Human resources scheduling</p> Signup and view all the answers

    What is a major benefit of Just-in-Time (JIT) systems?

    <p>Eliminating storage costs</p> Signup and view all the answers

    What does capacity planning primarily evaluate?

    <p>Production goals against production capacity</p> Signup and view all the answers

    Which factor is essential for accurate production planning?

    <p>Sales forecasts</p> Signup and view all the answers

    What does the acronym APS stand for in the context of materials management?

    <p>Advanced Planning and Scheduling</p> Signup and view all the answers

    How does ERP enhance materials management efficiency?

    <p>By integrating various databases and eliminating bottlenecks</p> Signup and view all the answers

    Which of these is NOT a function of the production planning system?

    <p>Predicting market trends</p> Signup and view all the answers

    What role does collaborative demand management play in ERP systems?

    <p>Aligning production plans with actual customer demand</p> Signup and view all the answers

    Which is a challenge faced by Atlantic Manufacturing as mentioned?

    <p>Timeliness of change specifications</p> Signup and view all the answers

    In the context of ERP, what does demand management fundamentally address?

    <p>Determining quantities and timings for production</p> Signup and view all the answers

    What aspect is prioritized in accurate production scheduling?

    <p>Allocating specific facilities related to production</p> Signup and view all the answers

    Activity-based costing systems always rely on financial measures for accuracy.

    <p>False</p> Signup and view all the answers

    ERP systems improve the reliability of cost driver information by integrating multiple systems.

    <p>True</p> Signup and view all the answers

    The number of pallet moves is considered an indirect cost driver in materials handling.

    <p>False</p> Signup and view all the answers

    Activity-based budgeting is solely focused on historical data from previous processes.

    <p>False</p> Signup and view all the answers

    Traditional production systems typically provide a high level of integration within an organization.

    <p>False</p> Signup and view all the answers

    ERP systems do not enhance communications along the supply chain.

    <p>False</p> Signup and view all the answers

    Nonfinancial measures used as drivers in ERP systems are collected through a formal process.

    <p>True</p> Signup and view all the answers

    Direct costs in activity-based costing can be calculated as part of overhead costs.

    <p>False</p> Signup and view all the answers

    SAP’s R/3 system integrates production planning solely without links to material management.

    <p>False</p> Signup and view all the answers

    The primary goal of activity-based budgeting is to reduce labor costs at any expense.

    <p>False</p> Signup and view all the answers

    The primary objective of Just-in-Time systems is to maintain excess inventory levels.

    <p>False</p> Signup and view all the answers

    The main advantage of integrating ERP systems is to increase lead times during production.

    <p>False</p> Signup and view all the answers

    Material Resource Planning (MRP) utilizes estimated production goals to dictate when materials should be ordered.

    <p>False</p> Signup and view all the answers

    In the 1960s through the 1980s, production systems were primarily focused on low-volume production of many products.

    <p>False</p> Signup and view all the answers

    One of the problems with traditional production systems is the lack of integration between sales and production divisions.

    <p>True</p> Signup and view all the answers

    Quality control in production systems only involves monitoring finished products and does not include incoming materials.

    <p>False</p> Signup and view all the answers

    ERP systems enhance productivity by eliminating paperwork and bottlenecks in production processes.

    <p>True</p> Signup and view all the answers

    Capacity planning simply estimates the amount of raw materials needed for production without considering production goals.

    <p>False</p> Signup and view all the answers

    The main role of Material Management Systems is to solely track finished products.

    <p>False</p> Signup and view all the answers

    Data collection systems within ERP support operational-level processes by providing real-time information.

    <p>True</p> Signup and view all the answers

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