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ADL 91 Enterprise Resource Planning V1
Assignment – A
Question 1. a. What is an ERP system? Suffice your answer with an example in the
Question 1. b. Comment on “ERP is a package software and not a custom-made
software for a specific form”.
Question 2. a. Why do organizations go in for ERP?
Question 2. b. What would the typical modules of ERP system constitute? Clarify
with an example.
Question 3. a. Why is change management necessary for ERP?
Question 3. b. What are the special challenges of introducing ERP in a
Question 4. a. Describe briefly the various steps required during the
implementation of a typical ERP project.
Question 4. b. Comment on “ERP is a package software and not a custom-made
software for a specific form”.A heating system
Question 5. ERP decisions are “high-risk, high-reward” decisions. Elucidate the
statement with respect to the Indian scenario.
Assignment – B
Question 1. a. What are the drawbacks of Over Customisation? Support your answer
with an example in the Educational Distance Learning Systems.
Question 1. b. What are the risks associated with ERP implementation.
Question 2. a. Why is the Top Management commitment necessary for the success of
Question 2. b. What are the pitfalls of ERP implementation?
Question 3. a. What does Hardware Sizing mean?
Question 3. b. How is Data Warehousing related to ERP?
At a very early stage in October 1996, HPL decided to use SAP solutions as a
strategic information management tool. HPL derived a competitive advantage in
adopting the SAP solution right from the project stage itself. Says Sethi / VP,
Information Systems “SAP is a backbone application and is seen as an integral
part of the HPL organization. We wanted the entire organization to be configured
around the best business practices pertinent to the industry.” He adds, “In
hindsight, it was a good choice because SAP has been used as a platform by a
large number of petrochemical and Oil and Gas companies around the world. This
would place HPL in the same sort of bracket.”
The advantage of SAP lies in on-line, real-time transaction processing and
integration, linking the company’s business processes and application in an
overall system for planning, controlling and monitoring. “Thanks to the
user-friendly interface of SAP R/3, the users have responded with enthusiasm and
are at ease during the implementation” adds Banerjee.
HPL has adopted all the SAP modules. However, being a start-up organization, HPL
did not go for the big-bang approach, by unfolding the entire range of R/3
package in one go. The implementation plan is being carried out in two phases.
Phase-I has been configured to support the organization at its project stage and
Phase-II is expected to address the manufacturing organization. “Modules that
have been implemented are in keeping with the business requirements that HPL
needs to address at the project stage. The core modules like financial
accounting, controlling, treasury, materials management, sales and distribution
and project systems have been implemented at this stage. Some of the key
benefits accruing from Phase-I are material codification, integrated on-line
information, effective inventory management budget control, cost accumulation
for capitalization, reporting in multiple currencies, smooth information flow
between various functions, amongst others.”
By the end of this year the modules in Phase-II like plant maintenance, quality
management, production planning etc., will be rolled out, thus completing a
major portion of the SAP R/3 suite. Phase-II will see the generation of enormous
information in the manufacturing operation, which can be integrated, as part of
the total business information system. The data can analysed within as well as
outside the SAP framework by the decision support system, a key requirement of
HPL. Says Sethi “We will have a highly information-driven factory at HPL which
will become a subset of a highly information-driven business right up to the
customer and supplier.”
SAP supports all the computing platforms in a most flexible manner. The
three-tier client/server architecture of SAP supports a host of operating
systems and a wide choice of database applications to work with. The
architectural framework of SAP will enable it to become the central information
infrastructure with various other third party utilities and applications formed
around it like process control system, data warehousing, decision support
systems etc. HPL has two SAP servers – an Intel based development server of one
make and a Production Server of another make. HPL uses VSAT to connect its three
locations on a closed user group network for voice, data, video and campus
networking of the plant information highway is underway.
HPL has kept abreast of the latest developments in electronic business commerce
and has made Internet available to all the users through a 64 Kbps radio link to
VSNL – country’s major internet and other overseas communication services
provider. Says Sethi, “One of the key benefits of SAP is that it is web-enabled
which can facilitate the company’s vision of integrating the extended supply
chain over the Internet to form a large global community.”
Mr. Sethi sums up the benefits of company-wide SAP installation “It impacts the
organization at two levels – the strategic initiative of the organization, which
is a pre-requisite in the competitive global market today and the core
operations, which is a foundation for performance and costs of manufacturing.”
Assignment – C
Answer True or False
1. ERP systems can be compared to the “fly-by-wire” operation of an aircraft.
2. ERP systems lead to significant cost savings by continuously monitoring the
3. ERP systems have been evolved from Manufacturing Planning (MRP) systems of
the 1970s and the material Resources Planning (MRP II) systems of the 1980s.
4. Since ERP implements the organizational processes, it is necessary to
re-engineer the business process before introducing ERP.
5. ERP is a high-end-mission-critical application with significant investment in
hardware and software.
6. Introduction of ERP software would need mostly customization rather than
7. The skills for customization are more process-oriented rather than IT/IS
8. Top Management commitment is not a critical success factor in ERP
9. Top Management commitment does not address the issue of empowering people to
usher in changes.
10. ERP is coordination only between the hardware vendor and the consultant.
11. ERP solutions use technology to address business issues, at the same time
striving to keep technology transparent to the users.
12. The very first step in implementation is mapping of the current business
processes to the ERP solutions and arriving at the “to be” model.
13. ERP cannot help organizations in addressing needs like reduced cycle time,
reduced inventories and sharing information seamlessly across the organization.
14. ERP provides the means to optimize the organizational resources.
15. ERP as it exists today, acts as the link between supply chain and the demand
16. ERP is not a production-oriented information system.
17. ERP is the latest enhancement of MRP II with the added functionality of
Finance, distribution and Human Resources Development, integrated to handle the
global business needs of an integrated and networked enterprise.
18. ERP is supposed to provide timely and accurate production oriented
information for long-range planning and day-to-day operational planning and
19. The ERP selection exercise can consume enormous time and manpower in
identifying evaluation criteria and gathering information on alternatives.
20. The ERP products should be scored on three major criteria, the Product,
implementation ease and the Future Road Map.
21. the real benefit of ERP comes in the long-term when the organization is in a
position to apply the experience of the best business processes evolved over
years of implementing the ERP for other organizations.
22. Project Champions do not provide the leadership so as to sustain the trials
and tribulations of an ERP implementation project.
23. The “go live” date marks the end of ERP project.
24. Most ERP projects “go live” at the start of the fiscal/financial year.
25. ERP customization does not involve fitting the ERP software to meet the
demands of a particular organization.
26. ERP implementations that are geographically distributed do not need reliable
communication links for on-line transaction processing.
27. Hardware sizing for ERP is not a specialized job.
28. Low end Unix versions may not support ERP.
29. ERP vendors do not recommend DBMS that do not support “row-level locking.”
30. ERP does not address the service industry.
Select any one of the correct answers
31. ERP systems can be compared to
(a). fly-by-wire operation of an aircraft
(b). fly-by-airplane operation
(c). none-of the above
32. ERP systems have evolved from
(a). Materials Requirements planning
(b). MRP systems of 1970 & MRP II systems of 1980
(c). Manufacturing Resources Planning
33. Top Management commitment in ERP is
(a). to write a big cheque
(b). to select champions from key functions and detain for the ERP project
(c). to select champions and ensure release for ERP core commitee
34. The special role of consultants is
(a). that they are actively engaged in ERP consulting
(b). that they have accumulated the richest ERP implementation experiences
(c). that they have developed their own methodologies of implementation that
add significant value to ERP software.
35. The responsibility of the ERP Project team
(a). is to implement the ERP for a specific organisation
(b). to work on behalf of the consultant
(c). to lead the functional teams
36. The go-live dte in the ERP project corresponds to
(a). end of the project implementation
(b). start of the fiscal year
(c). shift from the legacy system to ERP system date
37. The “bolt-on” approach calls for
(a). tighter integration
(b). is the same as “plug-and-play” approach
(c). or, could be delivered as ERP of choice
38. Which is not an dominant approach to ERP implementation
39. Data migration is the
(a). transfer of master data from legacy system
(b). transfer of manual data
(c). cleaning of data from machine-readable form
40. Operating systems that support ERP would need a
(a). high-end operating system that supports multi-tasking, multi-user
(b). muli-threading to support high performance
(c). both a) & b)
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