Chapter 7

Question 1

Define Enterprise resource planning (ERP)

Answer 1

a set of integrated programs that manage a company’s vital business operations for an entire multisite, global organization

-Its software that integrates various business processes and functions across different departments within an organization into a single system

Question 2

What are the functions of an ERP system?

Answer 2

-Helps streamline and automate processes

Question 3

What do ERP systems use to store and manage data from various departments, providing a unified view of information across the organization?

Answer 3

Centralised databases

Question 4

What are modules?

Answer 4

They are applications used by ERP systems which are tailored to specific business functions, allowing users to access relevant information and perform tasks efficiently

Question 5

What are the advantages of ERP

Answer 5

-Improved access to data for operational decision-making

-Elimination of costly, inflexible legacy systems

-Improvement of work processes based on best practices

-Upgrade of technology infrastructure

Question 6

Define legacy systems

Answer 6

Legacy systems refer to outdated or older computer systems, software, or technologies that are still in use within an organization

Question 7

What are the disadvantages of ERP?

Answer 7

-Expense and time in implementation

-Difficulty implementing change

-Difficulty integrating with other systems

-Risks in using one vendor

-Risk of implementation failure

Question 8

List the tips for avoiding many common cases for failed ERP implementations

Answer 8

-Plan to spend a lot of time and money training people

-Assign a full time executive to manage a project

Question 9

List the functions of a TPS

Answer 9

-Processes detailed data necessary to update records about fundamental business operations

-The systems include order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger, etc.

-They provide data for other business processes such as Management information systems/decision support systems (MIS/DSS) and Special-purpose information systems

Question 10

Define a batch processing system

Answer 10

Computerized processing in which business transactions are accumulated over some time and prepared for processing as a single unit or batch

Question 11

Explain what Online Transaction Processing (OLTP) is

Answer 11

Computerized processing and gathering all data necessary to complete the processing of transactions

Question 12

What do organizations expect their TPS to do?

Answer 12

-Process data generated by and about transactions

-Maintain a high degree of accuracy and integrity

-Avoid processing fraudulent transactions

-Produce timely user responses and reports

-Increase labour efficiency

-Help improve customer service

-Help build and maintain customer loyalty

-Achieve competitive advantage

Question 13

List the Transaction processing activities

Answer 13

-Capture and process data that describes fundamental business transactions

-Update databases

-Produce a variety of reports

Question 14

List the steps in the processing cycle

Answer 14

-Data collection

-Data editing

-Data correction

-Data manipulation

-Data storage

-Document production

Question 15

Explain data collection

Answer 15

= Capturing and gathering all data necessary to complete the processing of transactions

Data collection can be:
Manual
Automated via special input devices (such as scanners, point-of-sale devices, and terminals)

Data should be:
-Collected at source
-Recorded accurately, in a timely fashion

Question 16

Explain Data editing

Answer 16

Checking data for validity and completeness to detect any problems

Question 17

Explain data correction

Answer 17

=Re-entering data that was not typed or scanned properly

-If invalid data is detected, the system should provide error messages

Question 18

Define data manipulation and its activities

Answer 18

=Performing calculations and other data transformations related to business transactions

It can include the following:
-Classifying data
-Sorting data into categories
-Performing calculations
-Summarizing results
-Storing data in the organization’s database for further processing

Question 19

Define document production

Answer 19

The process of generating output records, documents and reports

Question 20

List the various TPS applications

Answer 20

-Sales processing

-Order processing

-Inventory management

-Payment processing

-Human Resource management

-Customer relationship management

-Supplier management

-Financial transactions

-Online Transaction processing

-Point of Sale Systems

Question 21

Explain Sales processing

Answer 21

Systems that record sales transactions, update inventory levels, and generate invoices or receipts.

Question 22

Explain Order processing

Answer 22

Applications that manage customer orders, track order status, and facilitate order fulfilment processes.

Question 23

Explain payment processing

Answer 23

Systems responsible for processing payments, such as credit card transactions, billing customers, and reconciling accounts.

Question 24

Explain inventory management

Answer 24

Software used to monitor inventory levels, track stock movements, and generate reorder notifications.

Question 25

Explain Human resource management

Answer 25

: Applications that handle employee-related transactions, including payroll processing, time and attendance tracking, and benefits administration