IIBM – Enterprise Resource Planning Answer sheet

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choices:

1. Which of the following describes an ERP system? (1)
2. ERP systems provide a foundation for collaboration between departments
3. ERP systems enable people in different business areas to communicate
4. ERP systems have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive the organization’s performance.
5. All of the above

1. The responsibilities of the office manager in a firm that produces electronics spares is: (1)
2. Everything in the office runs efficiently
3. Furniture and other equipment in the office is adequate
4. Processing all the incoming official mail and responding to some
5. All of the above

1. Physiological Barriers to listening are:
2. Hearing impairment
3. Physical conditions
4. Prejudices
5. All of the above

1. What is the main function of Business Communication: (1)
2. Sincerity
3. Positive language
4. Persuasion
5. Ethical standard

1. Which presentation tends to make you speak more quickly the unusual: (1)
2. Electronic
3. Oral
4. Both „a‟ and”b”
5. None of the above

1. Labov’s Storytelling Model is based on: (1)
2. Communication through speech
3. Language learning
4. Group Discussions
5. None of the above

1. Diagonal Communication is the: (1)
2. Communication across boundaries
3. Communication between the CEO and the managers
4. Communication through body language
5. Communication within a department

1. Direct Eye contact of more than 10 seconds can create: (1)
2. Discomfort &Anxiety
3. Emotional relationship between listeners and speakers
4. Excitement
5. None of the above

1. How to make Oral Communication Effective? (1)
2. By Clarity
3. By Brevity
4. By Right words
5. All of the above

1. Encoding means: (1)
2. Transmission
3. Perception
4. Ideation
5. None of the above

Part Two:

1. Define ERP? (5)
2. What are ERP packages? (5)
3. What are the reasons for the explosive growth of the ERP market? (5)
4. What is Business Integration and how do the ERP systems achieve it? (5)

Section B: Caselets (40 marks)

Caselet1

With eight plants globally running from a single ERP instance on a server in Zeeland, Michigan, the IT team faced the challenges of scaling their systems to support the global growth fueling their company’s expansion. Running IQMS’ manufacturing ERP system delivered via Hosted Managed Services (HMS) provides Ventura Manufacturing the most economical system architecture for greater scalability and efficiency as well as to attain disaster recovery goals.

Ventura is an award-winning semi-automated assembly and production company that serves the automotive, office furniture, education seating, and molding and assembly of optical silicone industries globally. Headquartered in Zeeland, Michigan, the company has multiple plants in Zeeland in addition to plants in Budaörs, Hungary, Saltillo, Mexico, and Shanghai, China.

As demand for Ventura’s services grew and the company began attracting customers worldwide, it was apparent the dependency on a single ERP system on-premise in Zeeland, Michigan was becoming an impediment to faster growth. “Relying on a single system to manage our global plants was proving to be a huge scale challenge,” said Joel Boyles, IT Team Lead at Ventura Manufacturing.

Ventura’s customer base is globally based and to serve them as responsively and effectively as possible, Ventura decided to open new production plants in Hungary and Shanghai, China.

With eight plants globally running from a single ERP instance on a server in Zeeland, Michigan, the IT team faced the challenges of scaling their systems to support the global growth fueling their company’s expansion. The IT team at Ventura prides itself on offering live support to any plant, anywhere in the world that needs help, anytime. “When we just had the plants in Mexico and Hungary, our existing staff could scale to support the calls coming from plants for help with their IT systems and take care of ERP-related tasks,” Joel said. When the Shanghai, China facility went online, Ventura was reaching the limits of scale and speed with their IT teams and the system running on-premise in Zeeland.

As demands increased on the system, so did concerns over Availability and Disaster Recovery Objectives the IT Team had defined. Two metrics that are of specific interest to Ventura’s IT team are the Recovery Time Objective (RTO) and Recovery Point Objective (RPO). IT defined the RTO goal as 8 hours and the RPO as 15 minutes, achievable on a 24/7 basis. To accomplish these goals, Ventura would need to create an entirely new system platform that could scale more efficiently with their growing business. The new platform would also need to increase the speed of system updates, which had been a problematic area in the past for the single system to complete.

Joel Boyles, IT Team Lead, says the challenges of scalability and disaster recovery are what drove the urgency for Ventura to decide that Hosted Managed Services (HMS) from IQMS was the best possible solution. “Plant system updates including MRP were taking at least 2 hours per plant, which translated into our IT teams having 24/7 shifts in our Zeeland-based IT offices,” Joel said. “We had to redefine our system architecture for greater scalability and speed.”

Ventura chose IQMS’ Enterprise IQ delivered via Hosted Managed Services (HMS) because it was the most economical and fastest option for solving the system performance challenges and attaining the disaster recovery goals the company has. Under the IQMS HMS purchase option, software licenses are owned in perpetuity by Ventura, and hardware and platform software is provided by the IQMS data center. IQMS is managing the Ventura systems today in a secure data center environment. Ventura’s IT team can gain access to key system metrics and key performance indicators anytime via any browser-enabled laptop, tablet, or smartphone.

Questions

1. How Ventura Defined A Global Roadmap To Greater Speed And Reliability? ( 20)

Caselet 2

Enterprise resource planning (ERP) is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business, including:

• Product planning, cost, and development
• Manufacturing
• Marketing and sales
• Inventory management
• Shipping and payment

Functions of ERP

• ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system. ERP systems track business resources—

 cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll.

• The applications that make up the system share data across the various departments (manufacturing, purchasing, sales, accounting, etc.) that entered the data.
• ERP facilitates information flow between all business functions,

ERP Implementation

Success

Company Background

 Cadbury is a British multinational confectionery company owned by Mondelēz International.

 It is the second-largest confectionery brand in the world after Wrigley\’s.

 Founder: John Cadbury

 Founded in: 1824, B Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate

Confectionery business, Cadbury has maintained its undisputed leadership over the years.

ERP Implementation

Cadbury turns out, in recent years, Kraft implemented SAP ERP 6.0 (System Analysis and Program Development) in what SAP called one of its largest global ERP implementations. Kraft credited ERP with reducing operational costs. 11,000 employees were sending data to the company\’s SAP solution and it was linked to 1,750 applications by 2008. That same year, Kraft also added SAP\’s master data management solution, Net Weaver, to integrate legacy systems.

• Cadbury was left with a glut of chocolate products at the start of the year after the installation of a new SAP-based enterprise resource planning (ERP) system led to an excess of chocolate bars building up at the end of 2005.
• The new U.K. computer system is part of a five-year IT transformation project, called \”Probe\”, aimed at integrating Cadbury Schweppes\’ supply chain, purchasing, manufacturing, distribution, sales, and marketing systems on a global, SAP-based

ERP platform

• Cadbury Schweppes is aiming for ultimate savings from the Probe project, but its implementation has been far from smooth. The project was beset by problems and delays when it was first introduced in Australia in 2002.

Benefits of ERP

• Cadbury was on a fast-paced growth and could not continue with the existing systems and the pace was too slow due to added inefficiencies. ERP added efficiency and guided the led all the issues fast-paced growth.
• The implementation of ERP brought in a new way of the warehouse management system and brought structure to branch offices and the depots.
• While implementing the ERP systems, the company has built it upon the past strengths of the company thereby not losing out on its competitive
• The initial implementation took time and then the successive implementations took less time and cost and there is a huge advantage in saving cost while in the implementation phase itself.
• The reaction from competition does not matter in this because this is not a change that was advertised to the market. This is an internal process restructuring and was a welcome change within the company which badly needed the change.
• The company also has built a robust regular feedback system to monitor the changes and check if they go according to the initial plan. The entire implementation is functional and hence there must be a high increase in the efficiency. The ERP vendor was also selected from among the best in-class vendors which helped the process occur in a streamlined fashion and avoided any possible chances of hiccups during the initial

Implementation phase.

The system has also been deployed to the vendors. They have a portal called Vendor Connect where they can see their inventory movement and make plans accordingly. Hence the restructuring happens not only internally but also across to the supplier which will add to the benefits that are accrued.

It was considered at low cost and high result implementation which by itself highlights the success and the benefits.

Questions

1. Why did the Big Bang approach fail for The Hershey Company? (20)

END OF SECTION B

Section C: Applied Theory (30 marks)

1. What is the difference between ERP and CRM software? (15)
2. What are some of the risks associated with ERP software? (15)

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