Lecture 3

Question 1

Re-engineering

Answer 1

Fundamental rethinking and radical re-design of business processes. Related to the value chain

Question 2

Value chain consists of _______ and ______ activities.

Answer 2

primary; secondary

Question 3

Re-engineering strives to redesign an organization’s ______ ________

Answer 3

value chain

Question 4

Primary activity examples

Answer 4

• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service

Question 5

Secondary activity examples

Answer 5

• Organization
• HR
• Technology
• Purchasing

Question 6

Elements of re-engineering

Answer 6

• integration
• technology
• cross functional coordination
• continuous improvement

Question 7

Process Model

Answer 7

Provides graphical representation of the current system

Question 8

Elements of a process model:

1) Data Store-
2) Data flow-
3) Organizational unit-
4) Triggers and outcomes-

Answer 8

1) Data needed by the business process
2) Data transfer between processes or between processes and data store
3) Where activity takes place
4) Triggers process, results from processes

Question 9

The ERP development process

Answer 9

1) Planning
2) Requirements Analysis
3) Design
4) Detailed design
5) Implementation
6) Maintenance

Question 10

What is the most expensive component of ERP?

a. Software
b. Hardware
c. Consulting
d. Training
e. Implementation

Answer 10

a. Software 30.2%
b. Hardware 17.8%
c. Consulting 24.8%
d. Training 10.9%
e. Implementation 13.6%

Service (Consulting, training, and implementation) are the most expensive.