PROGRAM - MBA - SEMESTER - IV

SUBJECT CODE & NAME - OM0011 - ENTERPRISE

RESOURCE PLANNING
1.
Define Enterprise Resource Planning (ERP).
Briefly explain the major benefits of an ERP
system.
Enterprise Resource Planning
ERP is an information system that controls and integrates all the business functions
of an organisation. It is a multi-module application that integrates the
activities of different departments, such as production, finance, human
resource and marketing.
According to Deloitte Consulting, ERP is a packaged business software system
that enables a company to automate and integrate the majority of its business
processes; share common data and practices across the enterprise; and
produces and access information in a real-time environment.

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2. Write short notes on the following:

a. Decision Support System (DSS)

b. Executive Information System (EIS)

c. Customer Relationship Management (CRM)
d. Management Information System (MIS)
Decision Support System (DSS)
You make a number of decisions in your everyday life; for example, what to cook
for breakfast? What to wear for office? Similarly, organisations also need to
make certain decisions to carry out their operations smoothly. The decisions made
by organisations usually involve huge cost. One right decision can lead to
the remarkable growth of an organisation, while a wrong decision can ruin
the business completely.
Therefore, business decisions are considered to be highly critical. In order to
make effective
decisions, an organisation requires timely and accurate information. DSS is an
interactive information system that provides substantial support to managers while
taking critical business decisions. It is a

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3.
Explain the different
implementation life cycle.
The different phases of
follows:

the

phases

of

an

ERP

ERP implementation lifecycle are as

1. Pre-evaluation screening: - Pre-evaluation screening is the first

phase of the ERP implementation lifecycle. It includes examining all the
available ERP systems. Among these systems, those that are able to
meet the organisations requirements are selected.

2. Package evaluation: - The package evaluation phase involves a deep

analysis of all the shortlisted ERP systems in order to select the final
system. It is the most important phase as the success of ERP
implementation highly depends on the selection of the right

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4. Explain the role of manufacturing and

production planning module of an ERP system.
Briefly
explain
the
sub-modules
of
the
manufacturing module.
Role of Manufacturing and Production Planning Module of an ERP
system
An
ERP
system
integrates
the activities of different departments of an
organisation such as manufacturing, marketing, accounting, and human resource.
The manufacturing and production planning module of an ERP system helps an
organisation plan and perform its production activities effectively by providing
accurate and timely information. Some of these activities include MRP, shop-floor
control, inventory management, and capacity planning. The manufacturing and
production planning module of an ERP system integrates all the software and
hardware used for performing manufacturing activities. Moreover, the module
helps in reducing paperwork, design cost, lead time,

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5. Explain the role of ERP in sales and distribution.

Briefly explain the sub-modules of the sales and
distribution module.
Role of ERP in Sales and Distribution
These products and services are passed through an extensive distribution
network before they reach the end users. This distribution network
involves wholesalers, retailers, and commission agents. An effective
distribution network helps in delivering the right product to the right
customer at the right time. This ultimately helps in increasing the sales and
profit of an organisation.
To achieve higher sales volume and profit margins, most organisations
implement an ERP system with sales and distribution functionality. The
sales and distribution module of an

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6. Define the role of vendors and consultants in

ERP implementation.
Role of a vendor
A vendor provides ERP systems to client organisations as per their
requirements at a mutually agreed price. Generally, a contractual agreement
is signed between a vendor and a client organisation. This agreement states
all the terms and conditions related to the systems functions, level of quality,
price, and performance. After an ERP system is purchased by an organisation, a
team of experts (vendor) need to install the system and ensure its
operational efficiency. Most of the vendors appoint a liaison officer to keep track on
the activities of this team of experts. Apart from this, the team is responsible for
providing training to the organisations employees, so that they can learn about
the functionality of the ERP system. Generally, this training is provided to the key
users of

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