OIM 452 EXAM 1&2 QUESTIONS AND ANSWERS
What is a functional organizational structure? - Answers - divided into
functions/departments who perform specialized tasks/activities
What cuts across a functional organizational structure? - Answers - processes
Why is a functional organizational structure so common? - Answers - spreads
responsibility across an org. instead of in one spot; allows for specialization
What is the Silo Effect? - Answers - optimization of functional goals over process
goals, each process has no regard for the consequences of others
Why does the Silo Effect exist? - Answers - each department works independently and
focuses on its own objectives
How can an org. reduce/eliminate the Silo Effect? - Answers - thinking sideways- focus
on end-to-end process and desired outcomes, no functional boundaries
What does process execution require? - Answers - communication and coordination
among functions, transparency
What is an enterprise system? - Answers - a firm-wide info system that serves as a
common, integrated information infrastructure for basic business processes
What have investments in ES provided? - Answers - increased profitability &
productivity, competitive edge
What is a business process? - Answers - a sequence of tasks or activities that produce
desired outcomes, triggered by some kind of event
Why is process view essential for successful managers? - Answers - can liberate from
Silo Effect, must have solid understanding of processes to fulfill company and customer
needs
How can you improve business processes? - Answers - brute force (add people or
equipment), change/alter process
What are processes interrelated with? - Answers - other processes, sub-processes
What are the 3 key business processes? - Answers - procurement, fulfillment,
production
What is Material Planning? - Answers - plan
What is Asset Management/Customer Service? - Answers - service
,What is Human Capital Management? - Answers - people
What is Program and Project Management? - Answers - projects
What is Lifecycle Data Management? - Answers - design
What is Inventory and Warehouse Management? - Answers - store
What is Financial Accounting as a process? - Answers - external
What is Management Accounting as a process? - Answers - internal
What is Procurement? - Answers - buying/acquiring materials used by the org.; raw
materials needed to make products
What is Production? - Answers - make, creation of the products within an org.
What is Fulfillment? - Answers - selling/delivering products to org.'s customers
What are the steps/locations in the procurement process? - Answers - create PR
(WH), create/send PO (Purch.), receive materials (WH), receive invoice & send
payment (Acct.)
What are the steps/locations in the production process? - Answers - request
production (WH), authorize production (Prod.), issue raw materials (WH), create product
(Prod.), receive finished goods (WH)
What are the steps/locations in the fulfillment process? - Answers - receive customer
PO & create sales order (Sales), prepare & send shipment (WH), create/send invoice &
receive payment (Acct.)
Why is it important that processes be coordinated/interrelated? - Answers - to ensure
successful performance, produce quality products, maintain equipment, customer
satisfaction
Which processes are asset management and customer service closely integrated with?
- Answers - production and sales
What is the world's most popular enterprise resource planning (ERP) system? -
Answers - SAP
What are the 2 architectures of ES? - Answers - client-server and service-oriented
What is client-server architecture (CSA)? - Answers - uses 3 layers to provide
functionality contained in one system on desktop
, What are the 3 layers in CSA? - Answers - presentation, application, and data
What does CSA use to communicate with the application layer? - Answers - web
browser or graphical user interface (GUI)
What are the advantages of CSA? - Answers - reduces costs of
acquiring/implementing/using ES, increases scalability
What is service-oriented architecture (S0A)? - Answers - multiple client server systems
communicate via web services
What are the advantages of SOA? - Answers - create new apps quickly/inexpensively,
can build composite apps on top of 3-tier servers without changing underlying apps
What are the disadvantages of SOA? - Answers - exposes business processes/data in
an ES
How are web services used in SOA? - Answers - to expose ES functionality, standard
interface (input & output)
How are composite applications used in SOA? - Answers - connect multiple apps via
web services, new capabilities without changing old
What is an ERP system? - Answers - focus on internal operations of an org., integrate
functional/cross-functional business processes
What type of ERP system is SAP? - Answers - fully integrated, global, supports
multiple languages and currencies
What is SRM? - Answers - Supplier Relationship Management
What is ILS? - Answers - Integrated Library System (used for specialized industries)
What is EHR? - Answers - Electronic Health Records (used for specialized industries)
What is PLM? - Answers - Product Lifecycle Management
What is ELS? - Answers - Enterprise Learning System
What is SEM? - Answers - Strategic Enterprise Management
What is a supply chain? - Answers - all roles involved in the end-to-end production and
usage of a product, flow of materials, production, provisioning, distribution
What is a functional organizational structure? - Answers - divided into
functions/departments who perform specialized tasks/activities
What cuts across a functional organizational structure? - Answers - processes
Why is a functional organizational structure so common? - Answers - spreads
responsibility across an org. instead of in one spot; allows for specialization
What is the Silo Effect? - Answers - optimization of functional goals over process
goals, each process has no regard for the consequences of others
Why does the Silo Effect exist? - Answers - each department works independently and
focuses on its own objectives
How can an org. reduce/eliminate the Silo Effect? - Answers - thinking sideways- focus
on end-to-end process and desired outcomes, no functional boundaries
What does process execution require? - Answers - communication and coordination
among functions, transparency
What is an enterprise system? - Answers - a firm-wide info system that serves as a
common, integrated information infrastructure for basic business processes
What have investments in ES provided? - Answers - increased profitability &
productivity, competitive edge
What is a business process? - Answers - a sequence of tasks or activities that produce
desired outcomes, triggered by some kind of event
Why is process view essential for successful managers? - Answers - can liberate from
Silo Effect, must have solid understanding of processes to fulfill company and customer
needs
How can you improve business processes? - Answers - brute force (add people or
equipment), change/alter process
What are processes interrelated with? - Answers - other processes, sub-processes
What are the 3 key business processes? - Answers - procurement, fulfillment,
production
What is Material Planning? - Answers - plan
What is Asset Management/Customer Service? - Answers - service
,What is Human Capital Management? - Answers - people
What is Program and Project Management? - Answers - projects
What is Lifecycle Data Management? - Answers - design
What is Inventory and Warehouse Management? - Answers - store
What is Financial Accounting as a process? - Answers - external
What is Management Accounting as a process? - Answers - internal
What is Procurement? - Answers - buying/acquiring materials used by the org.; raw
materials needed to make products
What is Production? - Answers - make, creation of the products within an org.
What is Fulfillment? - Answers - selling/delivering products to org.'s customers
What are the steps/locations in the procurement process? - Answers - create PR
(WH), create/send PO (Purch.), receive materials (WH), receive invoice & send
payment (Acct.)
What are the steps/locations in the production process? - Answers - request
production (WH), authorize production (Prod.), issue raw materials (WH), create product
(Prod.), receive finished goods (WH)
What are the steps/locations in the fulfillment process? - Answers - receive customer
PO & create sales order (Sales), prepare & send shipment (WH), create/send invoice &
receive payment (Acct.)
Why is it important that processes be coordinated/interrelated? - Answers - to ensure
successful performance, produce quality products, maintain equipment, customer
satisfaction
Which processes are asset management and customer service closely integrated with?
- Answers - production and sales
What is the world's most popular enterprise resource planning (ERP) system? -
Answers - SAP
What are the 2 architectures of ES? - Answers - client-server and service-oriented
What is client-server architecture (CSA)? - Answers - uses 3 layers to provide
functionality contained in one system on desktop
, What are the 3 layers in CSA? - Answers - presentation, application, and data
What does CSA use to communicate with the application layer? - Answers - web
browser or graphical user interface (GUI)
What are the advantages of CSA? - Answers - reduces costs of
acquiring/implementing/using ES, increases scalability
What is service-oriented architecture (S0A)? - Answers - multiple client server systems
communicate via web services
What are the advantages of SOA? - Answers - create new apps quickly/inexpensively,
can build composite apps on top of 3-tier servers without changing underlying apps
What are the disadvantages of SOA? - Answers - exposes business processes/data in
an ES
How are web services used in SOA? - Answers - to expose ES functionality, standard
interface (input & output)
How are composite applications used in SOA? - Answers - connect multiple apps via
web services, new capabilities without changing old
What is an ERP system? - Answers - focus on internal operations of an org., integrate
functional/cross-functional business processes
What type of ERP system is SAP? - Answers - fully integrated, global, supports
multiple languages and currencies
What is SRM? - Answers - Supplier Relationship Management
What is ILS? - Answers - Integrated Library System (used for specialized industries)
What is EHR? - Answers - Electronic Health Records (used for specialized industries)
What is PLM? - Answers - Product Lifecycle Management
What is ELS? - Answers - Enterprise Learning System
What is SEM? - Answers - Strategic Enterprise Management
What is a supply chain? - Answers - all roles involved in the end-to-end production and
usage of a product, flow of materials, production, provisioning, distribution
