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OM0011 – Enterprise Resource Planning

OM0011 – Enterprise Resource Planning


Summer 2013

Master of Business Administration- MBA Semester 3

OM 0011 – Enterprise Resource Planning


Q1. Differentiate between Commercial and Open Source ERPs software packages.

(Differences — 5 marks; Type of organisation/company where is these ERP’s are used — 2 marks; description of one ERP software for each type of ERP — 2marks; conclusion — 1 mark) 10 marks


Answer : Difference between commercial and open source ERP software :


1. Pricing :


Most open source software is freely distributed with no up-front licensing fees. Further savings come from ease of deployment, training and integration. Commercial ERP is an expensive package and suitable only for bigger corporations.


2. Flexibility :


When you compare commercial and open source ERP, commercial systems are not flexible in nature. They let business with no other choice but to change their way of business. However when it comes to open source ERP everything was decided by the code .


Q2. For a successful MRP system three types of information are very essential. Describe the types of information. (Master Production Schedule — 3 marks ;Bill of Material — 4 marks ;Inventory Records — 3 marks) 10 marks


Answer :  Three types of information systems :


1. Master production schedule :


A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods.


Q3. Explain the features, benefits and Limitations of ERP Inventory Management.

 (Explanation ERP inventory management — 1 mark; features — 3 marks ;benefits — 3 marks; limitations — 3 marks) 10 marks


Answer : ERP Inventory Management :


Whether a manufacturer, wholesaler or retailer, management of inventory is critical to controlling costs and ensuring the smooth operation of business.  ERP Software gives  real time information on current stock levels and values including stock on order, raw materials, work in progress and finished goods.


Features :



Q4. What are the activities of Human Resources management systems?

(explanation of activities — 10 marks) 10 marks


Answer :  Activities of human resource management systems :


A Human Resources Management System (HRMS) is a software application that combines many human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis and review into one package.


1. The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes


Q5. Explain any two benefits of an ERP implementation?

(5 marks for each benefit) 10 marks  


Answer : Benefits of an ERP Implementation :


An Enterprise Resource Planning (ERP) system implementation project will likely be among the most complex and demanding endeavors a higher education institution will attempt. A project of this size requires significant commitments of money, time, and human resources from departments across the institution.


1. Integrated Information:


The key benefit of implementing ERP is integration. ERP helps in reducing operational costs by coordinating various



Q6. Who is an ERP vendor and what are his roles?

 (Explanation of ERP vendor — 4 marks; role — 6 marks) 10 marks


Answer : ERP Vendor :


Vendors  are the people who have developed the ERP packages. They are the people who have invested huge amounts of time and effort in research and development, to create the packaged solutions. If one studies the history of ERP packages and finds out how each package evolved, then it soon becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments.

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