THEORY EXAMINATION (SEM–VI) 2016-17 ERP

ERP (EIT602) – SECTION-WISE SOLVED ANSWERS

SECTION – A

(Short Answers | 2 marks each)

a) Link Access Procedure

Link Access Procedure refers to the method by which different users or systems access a shared database or communication link in an ERP environment. It ensures controlled, secure, and efficient data transfer between ERP modules and external systems.

b) ERP Vendors

ERP vendors are companies that develop, sell, implement, and support ERP software. Examples include SAP, Oracle, Microsoft, and Infor. These vendors provide ERP solutions tailored to different industries and business sizes.

c) ERP Advantages

ERP offers benefits such as improved data accuracy, integrated business processes, real-time information flow, reduced operational costs, better decision-making, and enhanced organizational efficiency.

d) Need for Data Warehousing

Companies need data warehousing to store historical and integrated data from multiple sources. It supports data analysis, reporting, and decision-making without affecting daily transaction systems.

e) Limitations of ERP

ERP systems are expensive, complex to implement, time-consuming, and require skilled manpower. Resistance to change and customization difficulties are also major limitations.

f) Three Major Reasons to Undertake ERP

Organizations adopt ERP to integrate business processes, improve operational efficiency, and gain real-time visibility across departments.

g) Limitations of ERP (Definition)

ERP limitations include high implementation cost, inflexibility, dependency on vendors, and risk of project failure if not managed properly.

h) Data Mining Mechanism

Data mining is performed by using algorithms and tools to analyze large datasets, identify patterns, relationships, and trends, and convert raw data into meaningful information.

i) Impact of E-commerce on ERP

E-commerce enhances ERP success by enabling real-time order processing, customer data integration, inventory management, and faster supply chain coordination.

j) Risks in ERP Implementation

Risks include budget overruns, project delays, poor user training, data migration issues, resistance to change, and system integration failures.

SECTION – B

(Descriptive Answers | 10 marks each)

a) ERP Market and ERP Market in India

The ERP market refers to the global and regional demand, supply, and adoption of ERP software solutions across industries. In India, ERP is widely used in manufacturing, banking, education, healthcare, telecom, and government sectors. Indian companies use ERP to manage finance, HR, supply chain, and operations efficiently in a competitive environment.

b) Project Life Cycle Stage & Supply Chain Models

The project life cycle includes initiation, planning, execution, monitoring, and closure stages. Each stage ensures proper control and progress of ERP implementation.

Supply chain management models include:

Push model

Pull model

Push-Pull hybrid model

These models define how goods are produced and delivered based on demand and forecasting.

c) SDLC and Its Phases

SDLC (System Development Life Cycle) is a structured process used to develop information systems.

Its phases include:                                         Requirement analysis

System design                                               Development

Testing                                                           Implementation

Maintenance

In ERP, SDLC ensures systematic planning and deployment.

d) Make-to-Stock vs Make-to-Order

Make-to-Stock produces goods in advance based on demand forecasts. It ensures quick delivery but risks inventory surplus.
Make-to-Order produces goods after customer orders. It reduces inventory cost but increases delivery time.

e) Main Functional Modules of ERP

ERP consists of integrated modules such as:              Finance and Accounting

Human Resource Management                                  Production Planning

Sales and Distribution                                                 Supply Chain Management

Customer Relationship Management

Each module shares a common database for seamless data flow.

f) ERP vs E-commerce Applications

ERP systems manage internal business processes, while E-commerce applications handle online buying and selling. ERP focuses on integration and operations, whereas e-commerce focuses on customer interaction and online transactions.

g) Business Process Re-engineering (BPR)

BPR is the radical redesign of business processes to achieve dramatic improvements in cost, quality, and speed.
Success factors include top management support, clear objectives, employee involvement, effective communication, and proper IT support.

h) ERP and CRM Integration

ERP integrates with CRM to combine customer data with internal processes. This integration improves customer service, sales forecasting, order processing, and customer satisfaction.

SECTION – C

(Long Answers | 15 marks each)

3) OLAP and Data Warehouse Architecture

OLAP (Online Analytical Processing) is a technology used for complex data analysis, reporting, and decision support.

Data Warehouse Architecture consists of:

Data sources                                                   ETL (Extract, Transform, Load) process

Data warehouse storage                                 OLAP server

Front-end tools for reporting

The OLAP server sits between the data warehouse and user tools, enabling multidimensional data analysis.

4) Key Attributes of Supply Chain Management

Key SCM attributes include:                             Integration

Responsiveness                                                Flexibility

Cost efficiency                                                  Information sharing

Collaboration

For example, integration ensures smooth coordination between suppliers, manufacturers, and distributors, while responsiveness helps meet customer demand quickly.

5) Short Notes

a) MRP and MRPII

MRP (Material Requirement Planning) calculates material needs based on production schedules.
MRPII (Manufacturing Resource Planning) extends MRP by integrating finance, HR, and production planning.

b) SSAD

SSAD (Structured Systems Analysis and Design) is a methodology used to analyze, design, and document information systems using structured tools like data flow diagrams.

c) ERP Tools

ERP tools include SAP ERP, Oracle ERP, Microsoft Dynamics, PeopleSoft, and open-source ERP tools. These tools support integration, automation, and enterprise-wide management.