TEST BANK FOR Enterprise Resource Planning By Mary Sumner (Solution manual)

Exam (elaborations) TEST BANK FOR Enterprise Resource Planning By Mary Sumner (Solution manual) Exam (elaborations) TEST BANK FOR Enterprise Resource Planning By Mary Sumner (Solution manual) Enterprise Resource Planning, 1/E CHAPTER 1: A FOUNDATION FOR UNDERSTANDING ENTERPRISE RESOURCE PLANNING SYSTEMS CHAPTER OBJECTIVES 1. Develop an understanding of how ERP systems can improve the effectiveness of information systems in organizations. 2. Understand the business benefits of enterprise resource planning (ERP) systems. 3. Understand the history and evolution of ERP. CHAPTER OUTLINE 1. A Foundation for Understanding Enterprise Resource Planning Systems a. The Emergence of Enterprise Resource Planning Systems 1. What is ERP? 2. The Evolution of ERP 3. The Integrated Systems Approach b. Business Benefits of ERP c. ERP Modules d. ERP Design Alternatives e. The Business Case for ERP 1. Cost-Benefit Analysis for ERP 2. Can ERP Provide a Competitive Advantage? f. The Challenge of Implementing an ERP System g. Summary ANSWERS TO END-OF-CHAPTER QUESTIONS Questions for Discussion: 1. Use on-line library databases to identify articles in trade publications which provide case studies of ERP implementations. These articles may provide some insight into each of these questions. a. How widespread is the use of ERP across certain industries? b. What are the benefits reported from implementing ERP? c. What are its limitations? 2. Research and learn about the implementation of ERP. Use trade publications and on-line library databases (e.g. ABI Inform, ProQuest, First Search, Wilson Select Plus, available through your library) to conduct a search for articles. a. Find a success story of ERP implementation. What factors contributed to the success of this implementation? Enterprise Resource Planning/Sumner 2 b. Find a story of problems encountered with an ERP implementation. What factors contributed to the obstacles which were encountered?? Possible resources: Austin, Robert D., Sole, Deborah, and Cotteleer, Mark J. “Harley Davidson Motor Company: Enterprise Software Selection.” Harvard Business School case study (2003): 1-23. Austin, Robert D., Nolan, Richard L., and Cotteleer, Mark J. “Cisco Systems, Inc.:Implementing ERP.” Harvard Business School case study (2002): 1-19. Gabriele Hirt, Sabine and Swanson, E. Burton. “Adopting SAP at Siemens Power Corporation.” Journal of Information Technology 14 (1999): 243-251. Jesitus, John. “Broken Promises? Fox Meyer’s project was a disaster. Was the company too aggressive or was it misled?” Industry Week (1997): 31-37. Songini, Marc L. “Halloween Less Haunting For Hershey This Year.” Computerworld. Vol. 34 (45), p.13-14. Stedman, Craig. “Failed ERP Gamble Haunts Hershey.” Computerworld. Vol. 33(44), p. 1. Weiss, Todd R., Songini, Marc L. “Hershey Upgrades R/3 ERP System Without Hitches.” Computerworld, Vol. 36(37), p. 25-28 Case: Business Research You are a business analyst for MPK Industries, a consulting firm that tracks worldwide trends in information technology. Using suggested on-line databases and Internet resources provide answers to the following questions. 1. What is the expected future growth of the ERP marketplace in terms of overall sales? a. Break this down by sales in the United States and international sales? b. Break this down by Fortune 500 companies and mid-cap companies (e.g. mid-cap companies are defined as having sales between $50 and $400 million per year). 2. What is the relative market share of the major ERP vendors? a. Break this down by sales in the U.S. and international sales. b. Break this down by Fortune 500 companies and mid-cap companies. Instructor’s Manual 3 Possible Resources: Web site What it provides Results of vendor surveys Market research Links to useful ERP sites, articles, publications, and chat rooms Links to support groups for many vendors Links to current APICS news CHAPTER 2: RE-ENGINEERING AND ENTERPRISE RESOURCE PLANNING SYSTEMS CHAPTER OBJECTIVES 1. Recognize the factors associated with the evolution to enterprise systems, including business process re-engineering, client-server networking, and the emergence of integrated databases. 2. Understand the role of process modeling in re-designing business processes. CHAPTER OUTLINE 2. Re-engineering and Enterprise Resource Planning Systems a. Background b. Business Process Re-engineering c. Process Modeling d. Re-engineering at Reliable Finance Company 1. Background of the Business 2. Analysis of the Current Loan Application and Screening System 3. Current Problems 4. Objectives e. Making Re-engineering Work f. How Information Technology Facilitates ERP 1. Emergence of Client-Server Computing 2. Integrated Databases g. The Emergence of Process Enterprises 1. ERP and Business Process Change h. Summary Enterprise Resource Planning/Sumner 4 ANSWERS TO END-OF-CHAPTER QUESTIONS Questions for Discussion: 1. Conduct a search to find a case in business re-engineering, similar to some of the cases mentioned in this chapter (e.g. Ford, Mutual Benefit Life, Hewlett Packard). a. Was an ERP system associated with the business-process re-engineering? Many ERP projects reported in the trade journals will include a description and discussion of the re-engineering of business processes which occurred when the ERP system was implemented. When an organization implements ERP, it is important to re-engineer existing business processes to conform with the “best practices” which are supported by the ERP software. b. What business benefits were derived from adopting “best practices?’ The benefits of implementing the “best practices” which are supported by the ERP system include many of the benefits which were described in Chapter 1. Some of these benefits include: quickened response time, improved order management, decreased financial close cycles, improved interaction with customers, improved on-time delivery, lowered inventory levels, and reduced operating costs. c. What obstacles needed to be overcome as a result of implementing changes in workflow, work methods, and work systems? One of the major obstacles to be overcome is resistance by individuals who are affected by changes in work methods and procedures. It is important to communicate the benefits of the ERP implementation and to provide effective training for everyone who is affected by the change in business processes. 2. Why is business process re-engineering a critical component of the successful implementation of ERP? The implementation of an ERP system provides an opportunity to re-engineer the organization’s business processes around the “best practices” which are supported by the ERP. In most cases, this provides better operating efficiency, access to shared information across cross-functional units, elimination of redundant processes, and improved business productivity. 3. How does information technology facilitate the process of business re-engineering. Without information technology, would business process change be possible? Information technology enables the transition to shared databases and business processes which depend upon “network” access to these shared databases. For example, the re-engineering of the Accounts Payable process at Ford Motor Company depended upon the creation of an integrated, shared database among Purchasing, Receiving and Accounts Payable. In another example, the re-engineering of Hewlett Instructor’s Manual 5 Packard’s purchasing process required remote access to a central shared database of negotiated vendor prices. Case Exercise: 1. What problems with business processes and information do you feel occur in the current payment processing system at Reliable Finance? Problems with the current payment