ERP Implementation and Management (1)

Question 1

The most common structure of a medium to large business is a functional structure, which involves interaction between 7 main departments.

Name the 7 departments.

Answer 1

• Purchasing Production
• Warehouse
• Sales and Marketing
• R&D
• Finance and Accounting
• Human Resources
• Information Systems

Question 2

Medium to large businesses can have their departments broken down into 4 “silos”.

Name all 4 silos.

Answer 2

• Purchasing
• Marketing
• Sales
• Operation

Question 3

ERP contributes to many different business processes which require multiple departments input.

Name the three main business processes.

Answer 3

• Buying the goods. (Procurement process).
• Producing the goods. (Production process).
• Selling the goods. (Fulfilment process).

Question 4

Why would a business incorporate ERP into the running of their system?

Basically name the advantages.

Answer 4

1. Efficiency- ERP eliminates repetitive processes and greatly reduces the need to manually enter data.
2. Forecasting- ERP gives employees and managers accurate forecasting tools, allowing for more accurate predictions and estimates for the future.
3. Collaboration- ERP improves the connectivity between the silos of a business allowing for better overall connectivity.
4. Scalability- ERP software will typically be able to scale alongside the business as it grows.