Management Information Systems Chapter 10 Quiz
110 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What happens in a system when an item is sold at a store?

  • Inventory increases by one unit.
  • Sales figures decrease by one unit.
  • Sales figures remain unchanged.
  • Cash position increases by the amount paid. (correct)

    • Which function does Financial Planning and Budgeting NOT typically include?

  • Financial forecasting.
  • Sales order processing. (correct)
  • Budgeting.
  • Economic forecasting.

    • Which type of information system is primarily used for managing financial transactions?

  • Accounting/Finance Information Systems. (correct)
  • HR Information Systems.
  • Marketing Information Systems.
  • Production/Operations Management Systems.

    • What is a key benefit of the virtual close feature in financial management?

    <p>It provides real-time financial health information.</p> Signup and view all the answers

    Which of the following is NOT a component of investment management?

    <p>Tracking sales orders.</p> Signup and view all the answers

    What is one of the key functions of the finance & accounting ERP module?

    <p>Accounts payable</p> Signup and view all the answers

    Which feature of the finance & accounting ERP module allows setting limits on customer debt?

    <p>Credit-management</p> Signup and view all the answers

    What primary goal does the production & materials management ERP module aim to achieve?

    <p>Reduce excess or insufficient inventory</p> Signup and view all the answers

    Which function is NOT commonly found in a human resources ERP module?

    <p>Production scheduling</p> Signup and view all the answers

    Which of the following functions is part of the finance & accounting ERP module?

    <p>General ledger</p> Signup and view all the answers

    What type of analysis does the finance & accounting ERP module support?

    <p>Credit risk analysis</p> Signup and view all the answers

    What does the human resources ERP module track?

    <p>Employee benefits</p> Signup and view all the answers

    Which of the following is primarily managed by the production & materials management ERP module?

    <p>Quality control</p> Signup and view all the answers

    What is a transaction in the context of business events?

    <p>Any business event that generates data worthy of being captured</p> Signup and view all the answers

    Which of the following is NOT a capability of a Transaction Processing System (TPS)?

    <p>Performing complex data analysis</p> Signup and view all the answers

    What characterizes Online Transaction Processing (OLTP)?

    <p>Transactions are processed as they occur</p> Signup and view all the answers

    Which of the following describes Batch Processing in a TPS?

    <p>Data from transactions is collected and processed at a later time</p> Signup and view all the answers

    What is one primary advantage of using a Transaction Processing System?

    <p>It maintains high levels of data privacy and security</p> Signup and view all the answers

    Which feature is essential for a system to qualify as a Transaction Processing System?

    <p>The capability for real-time data collection and processing of transactions</p> Signup and view all the answers

    What is one important requirement of Transaction Processing Systems?

    <p>They must be designed to avoid errors and downtime</p> Signup and view all the answers

    Which of the following best describes how data is handled in a Transaction Processing System?

    <p>Data is captured, stored, and processed from business transactions</p> Signup and view all the answers

    What is a characteristic of the Vanilla approach to ERP implementation?

    <p>Utilizes a standard ERP package with minimal customization</p> Signup and view all the answers

    Which of the following is a drawback of the Custom approach to ERP systems?

    <p>It may degrade the performance of the software</p> Signup and view all the answers

    The Best of breed approach to ERP systems involves what?

    <p>Choosing the best modules from various vendors</p> Signup and view all the answers

    What is a primary advantage of the SaaS (cloud-based) ERP model?

    <p>It provides anywhere, anytime access</p> Signup and view all the answers

    What is a common limitation when using ERP systems developed by vendors?

    <p>Organizations are required to change their existing processes to fit the system's best practices</p> Signup and view all the answers

    How does ERP improve organizational processes?

    <p>By making processes more efficient and effective</p> Signup and view all the answers

    What is a potential disadvantage of adopting a SaaS ERP system?

    <p>Diminished competitive advantage when using the Vanilla approach</p> Signup and view all the answers

    What does the term 'best practices' refer to in the context of ERP systems?

    <p>The most successful methods for executing business processes using ERP</p> Signup and view all the answers

    Which statement about the Custom approach to ERP systems is true?

    <p>Requires customization for each new version of the ERP software.</p> Signup and view all the answers

    Which of the following features is typically associated with the SaaS ERP model?

    <p>Management and maintenance responsibility lies with the vendor</p> Signup and view all the answers

    What represents a limitation when processes bring a competitive advantage?

    <p>Adopting best practices</p> Signup and view all the answers

    What is a significant cost associated with ERP implementation?

    <p>Hardware costs</p> Signup and view all the answers

    Which of the following is NOT a common reason for ERP failure?

    <p>Poor employee feedback</p> Signup and view all the answers

    Which of these factors can significantly impact the costs of ERP implementation?

    <p>Integration of software components</p> Signup and view all the answers

    What is a primary benefit of implementing ERP systems?

    <p>Improvement or redesign of inefficient processes</p> Signup and view all the answers

    Which module is primarily focused on managing customer relationships?

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

    What percentage of the total ERP implementation costs is attributed to professional services?

    <p>45.5%</p> Signup and view all the answers

    What is a common average duration for ERP implementation?

    <p>2 years</p> Signup and view all the answers

    Which of the following is considered a core function of ERP?

    <p>Financial management</p> Signup and view all the answers

    What risk do companies face if ERP implementation fails?

    <p>Losses in revenue</p> Signup and view all the answers

    What is one of the two basic purposes of audits?

    <p>Access the organization’s financial health</p> Signup and view all the answers

    Which of the following is NOT a core module of ERP systems?

    <p>Customer relationship management</p> Signup and view all the answers

    In what decade was MRP-II introduced?

    <p>1980s</p> Signup and view all the answers

    What unique feature do ERP systems offer compared to FAIS?

    <p>Integration of information into a single system</p> Signup and view all the answers

    What does the acronym EMA stand for?

    <p>Expense Management Automation</p> Signup and view all the answers

    How does ERP facilitate order fulfillment?

    <p>It automates the flow of information across departments.</p> Signup and view all the answers

    What is one function of Human Resource Management Information Systems?

    <p>Employee recruitment</p> Signup and view all the answers

    What capability does financial ratio analysis provide?

    <p>Assessment of financial health</p> Signup and view all the answers

    Which of the following is a primary characteristic of an ERP system?

    <p>Utilizes a shared database</p> Signup and view all the answers

    What was the original focus of MRP in the 1960s?

    <p>Inventory control</p> Signup and view all the answers

    What is one benefit of using ERP systems for order fulfillment?

    <p>Real-time updates across the organization</p> Signup and view all the answers

    Which of the following is an example of an information system supporting operations management?

    <p>Inventory management system</p> Signup and view all the answers

    What challenge does FAIS present compared to ERP systems?

    <p>Duplication of information</p> Signup and view all the answers

    What is a major advantage of implementing ERP systems in an organization?

    <p>Collaboration across all business functions</p> Signup and view all the answers

    What component does NOT typically relate to investment management systems?

    <p>Sales ledger integration</p> Signup and view all the answers

    Which area is primarily supported by financial planning and budgeting systems?

    <p>Economic forecasting</p> Signup and view all the answers

    Which characteristic is essential for a virtual close feature in financial transactions?

    <p>Real-time financial data access</p> Signup and view all the answers

    Which function is NOT characteristic of accounting/finance software packages?

    <p>Payroll management</p> Signup and view all the answers

    What does the integration of accounting/finance software with other functional areas allow for?

    <p>Unified financial reporting</p> Signup and view all the answers

    What is a primary function of the finance & accounting ERP module?

    <p>Managing asset depreciation</p> Signup and view all the answers

    What is a feature of the human resources ERP module?

    <p>Health and safety metrics</p> Signup and view all the answers

    Which function is NOT associated with the production & materials management ERP module?

    <p>Payroll management</p> Signup and view all the answers

    What analysis does the finance & accounting ERP module support?

    <p>Product profitability analysis</p> Signup and view all the answers

    What is a key benefit of using the production module in ERP systems?

    <p>Reduction of inventory costs</p> Signup and view all the answers

    Which task is primarily managed by the finance & accounting ERP module?

    <p>Accounts payable management</p> Signup and view all the answers

    What aspect of employee information does the human resources ERP module track?

    <p>Compensation and benefits</p> Signup and view all the answers

    Which of the following best describes a feature of credit management within the finance & accounting ERP module?

    <p>Set limits on customer debt levels</p> Signup and view all the answers

    What is a disadvantage of the Custom approach to ERP implementation?

    <p>Customizing the ERP can be costly and risky</p> Signup and view all the answers

    Which of the following best describes the Best of breed approach in ERP implementation?

    <p>Selecting the best modules from various vendors to suit unique processes</p> Signup and view all the answers

    What is a primary feature of the SaaS ERP model?

    <p>Offloads system management to the vendor</p> Signup and view all the answers

    Which is a limitation of ERP systems built on 'best practices'?

    <p>Companies must often adapt their processes to fit the ERP design</p> Signup and view all the answers

    What is a significant risk associated with modifying ERP software?

    <p>Potential degradation of software performance</p> Signup and view all the answers

    Which advantage is associated with the SaaS ERP approach?

    <p>Scalability and pay-per-use pricing</p> Signup and view all the answers

    What is one of the benefits of implementing an ERP system?

    <p>Improved efficiency of processes</p> Signup and view all the answers

    What challenge might arise from using the Vanilla approach to implement ERP?

    <p>Possibility of a competitive advantage breach</p> Signup and view all the answers

    Which statement is true regarding the flexibility of ERP systems?

    <p>ERP systems increase organizational agility and adaptability</p> Signup and view all the answers

    What is a common issue with adopting a SaaS ERP system?

    <p>Security vulnerabilities inherent in cloud computing</p> Signup and view all the answers

    What is a significant limitation of adopting best practices in processes that provide a competitive advantage?

    <p>It may restrict unique business process innovation.</p> Signup and view all the answers

    What is the primary reason many ERP implementations succeed or fail?

    <p>The involvement of employees affected by the system.</p> Signup and view all the answers

    What is a common cost distribution for ERP implementation?

    <p>23.2% allocated for consulting fees.</p> Signup and view all the answers

    Which factor is NOT commonly associated with ERP implementation failure?

    <p>Successful employee involvement.</p> Signup and view all the answers

    What percentage of total ERP implementation costs are typically spent on software?

    <p>17.5%</p> Signup and view all the answers

    Which of the following accurately defines a transaction in a business context?

    <p>Any business event that generates data worthy of being captured and stored.</p> Signup and view all the answers

    Which of the following is considered a core module of ERP systems?

    <p>Human Resource Management (HRM)</p> Signup and view all the answers

    What could be a consequence if an ERP implementation fails?

    <p>Significant revenue loss, as observed in case studies.</p> Signup and view all the answers

    What is the primary characteristic of Batch Processing in a Transaction Processing System (TPS)?

    <p>Processing groups of data periodically.</p> Signup and view all the answers

    What is described as a benefit of new generation ERP systems?

    <p>They enable access through web-enabled links.</p> Signup and view all the answers

    Which capability is essential for an effective Transaction Processing System?

    <p>Maintaining accurate and secure records.</p> Signup and view all the answers

    In what way does Online Transaction Processing (OLTP) differ from Batch Processing?

    <p>OLTP processes transactions immediately as they happen.</p> Signup and view all the answers

    Which approach is considered a common reason for ERP failure?

    <p>Trying to implement too many changes at once.</p> Signup and view all the answers

    What is a key requirement for maintaining a Transaction Processing System's efficiency?

    <p>Capability to handle high volumes and variations in transaction data.</p> Signup and view all the answers

    Which aspect is often underestimated during an ERP implementation?

    <p>The training of internal staff.</p> Signup and view all the answers

    What is a significant benefit of using a Transaction Processing System?

    <p>Facilitates better decision-making through improved data handling.</p> Signup and view all the answers

    Which characteristic is NOT associated with a Transaction Processing System?

    <p>Frequent manual processing of transactions.</p> Signup and view all the answers

    What potential challenge could a Transaction Processing System face?

    <p>Increased downtime from hardware malfunctions.</p> Signup and view all the answers

    What is a primary goal of auditing within an organization?

    <p>To assess the organization’s financial health</p> Signup and view all the answers

    Which of the following options does NOT represent a core ERP module?

    <p>Customer relationship management</p> Signup and view all the answers

    Which factor indicates a significant advantage of using an ERP system compared to FAIS?

    <p>Integration of functional areas</p> Signup and view all the answers

    What was the primary focus of MRP-II when it was introduced?

    <p>Entire factory production processes</p> Signup and view all the answers

    What is a primary feature of order fulfillment with ERP systems?

    <p>Information is updated in real-time across modules</p> Signup and view all the answers

    Which statement best describes a feature of Enterprise Resource Planning (ERP) systems?

    <p>They use a common platform and database for integration.</p> Signup and view all the answers

    What is one key element of financial ratio analysis?

    <p>Evaluating operational efficiency</p> Signup and view all the answers

    What significant feature is associated with the evolution of ERP systems?

    <p>Aggregation of best practices from multiple vendors</p> Signup and view all the answers

    What purpose do financial management ERP modules serve?

    <p>They track and oversee financial transactions.</p> Signup and view all the answers

    Which of the following statements is NOT true regarding the advantages of ERP?

    <p>Implementing ERP eliminates all inefficiencies.</p> Signup and view all the answers

    What key function does the human resource management module typically include?

    <p>Payroll and employee records management</p> Signup and view all the answers

    What characterizes the transition from FAIS to ERP?

    <p>Need for integration across functional areas</p> Signup and view all the answers

    Which ERP vendor is noted for seeking integration across various functional areas?

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

    Which option is a limitation often faced by organizations that have not implemented ERP systems?

    <p>Inefficient workflow across departments</p> Signup and view all the answers

    Study Notes

    Course Information

    • Course title: Management Information Systems
    • Course code: ADM 2372
    • Instructor: Mayur Joshi, PhD
    • Instructor email: [email protected]

    Week 7: Enterprise Systems and Enterprise Resource Planning (Chapter 10)

    • Topics covered: Transaction Processing Systems (TPS), Functional Area Information Systems, Enterprise Resource Planning (ERP) Systems, ERP Support for Business Processes

    Transaction Processing Systems (TPS)

    • Definition: A transaction is any business event that generates data worthy of capture and storage in a database. Examples include: product manufacturing, service consumption, employee hiring, and payroll generation
    • Purpose: TPS supports monitoring, collection, storage, and processing of data from basic business transactions
    • Features: Continuous real-time data collection, efficient handling of high volumes of data, avoiding errors, accurate record keeping, and maintaining privacy and security
    • Batch Processing: Data collected, grouped, and processed periodically (e.g., nightly).
    • Online Transaction Processing (OLTP): Data collected and processed as soon as the transaction occurs (e.g., paying for an item in a store).
    • Relationship to other systems: Interacts with functional area information systems (FAIS) to provide detailed reports.

    Functional Area Information Systems

    • Includes systems for Accounting & Finance (A&F IS), Marketing (Marketing IS), Production/Operations Management (POM IS), and Human Resource Management (HR IS)

    ERP Systems

    • Definition: Integrate planning, management, and use of all organizational resources, using one central database/platform
    • Core modules: Financial management, Operations management, Human resource management
    • Extended modules: Supply chain management, customer relationship management.

    From FAIS to ERP

    • FAIS: Separate functional areas, no integration, duplication of information, and incompatibility between hardware and software platforms
    • ERP: Single software, single database, single version of truth
    • Connection between FAIS and ERP: Facilitates data transfer and avoids duplication from independent departments.

    Evolution of ERP

    • 1960s: MRP (Material Requirements Planning) for manufacturing.
    • 1980s: MRP-II (Manufacturing Resource Planning), encompassing entire factory production process, including labor and cash flow.
    • 1980s: SAP, sought integration of manufacturing processes in other departments (HR, engineering, etc.), now called Enterprise Resource Planning (ERP).

    Major ERP Vendors

    • SAP
    • Oracle

    Example: Order Fulfillment Process (without ERP)

    • Information is transferred between departments (Sales, Accounting, Production).

    Example: Order Fulfillment Process (with ERP)

    • Customer order triggers various processes automatically
    • Inventory is checked and updated
    • Manufacturing is scheduled and resources are notified
    • Shipment is arranged automatically
    • ERP system facilitates communication between departments and customers

    ERP: Finance & Accounting Module

    • Manages financial data and processes
    • General ledger, accounts payable, accounts receivable, budgeting, and asset management
    • Features: Credit management (setting limits) , Product profitability analysis

    ERP: Production Module

    • Handles production planning and execution, including demand forecasting, production scheduling, job cost accounting, and quality control
    • Goal: Reduce excess or insufficient inventory and help avoid delayed production
    • Relationships with other modules: Integrates with other modules (e.g., finance) to ensure resources are allocated, and to account for production.

    ERP: Human Resources Module

    • Track employee information, including payroll, benefits, compensation, performance, and compliance with legal requirements and tax authorities
    • Supports analysis like productivity assessment, salary trends, health, and safety metrics.
    • Important functionalities: Payroll, benefits, compensation, performance management, compliance.

    Implementing ERP

    • On-premise (in-house implementation)
    • Vanilla: Standard ERP package with minimal or no customization
    • Custom: System customized to organization's specific needs (expensive and risky)
    • Best of breed: Mix and match modules from different vendors to optimize for specific organizations
    • SaaS (Cloud-based)
    • Rent the system; vendor maintains, manages, and provides security; service level agreements enforce vendor-client responsibilities

    ERP Advantages

    • Increased flexibility and agility
    • Organization-wide information which helps decision-making
    • Improves processes making them efficient and effective

    ERP Disadvantages / Limitations

    • ERP systems are built on "best practices" which may not suit every organization's needs
    • Customization is costly and risky, often leading to modification problems
    • Significant costs associated with implementation
    • Risk of failure
    • Process changes may be needed
    • Failure to effectively communicate and involve staff
    • Lack of flexibility according to specific organizational needs
    • Not all modules are created equal; companies need to adapt to fit ERP software into their environment

    Integrated processes with ERP Systems

    • Shows how ERP systems integrate processes across departments (Sales, Warehouse, Accounting, Production).

    ERP: New Generation & Modules

    • ERP II systems are accessible by customers, suppliers, and partners via web-enabled connections
    • ERP includes core (finance, HR, production) and extended modules (supply chain management, customer relationship management).
    • Modules are interconnected

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Week 7 Enterprise Systems and ERP (Chapter 10) PDF

    Description

    Test your knowledge on Enterprise Systems and Enterprise Resource Planning based on Chapter 10 of Management Information Systems. This quiz covers essential topics such as Transaction Processing Systems, their features, and their importance in business processes. Gain a better understanding of how ERP supports various functional areas within an organization.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser