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MI0038 —Enterprise Resource Planning

MI0038 —Enterprise Resource Planning

Summer 2013

Master of Business Administration- MBA Semester 4

MI0038 —Enterprise Resource Planning -4 Credits

(Book ID: B1324)

Note: Assignment (60 marks) must be written within 6-8 pages. Answer all questions. Kindly note that answers for 10 marks questions should not exceed 400 words and 5 marks should not exceed 200 words. Each question is followed by evaluation scheme.


Q1. a. Consider two organisational environment in which one of the organisation is having no or little communication between departments and the other organisation where all the departments know what the others are doing. Now which environment is considered to be better and why?

 (identifying which environment — 2 marks, explaining the reasons — 4 marks)


Answer :  Better environment :

Second organisation has better environment where different departments know the other one because Communication is one of the organizational functions that helps a company to stay efficient and productive. One of the more important forms of organizational communication is inter-departmental communication, the Institute for Public Relations notes. The importance of communication between different departments in an organization becomes most evident



b. Explain integrated Management of integration.

(explanation- 4 marks) 6+4 marks


Answer :   Integrated Management of integration :


An integrated management system is a management system that integrates all of an organization’s systems and processes in to one complete framework, enabling an organization to work as a single unit with unified objectives.

With an integrated system, your organization becomes a unified whole, with each function aligned behind a single goal: improving the performance of the entire organization. Instead of “silos”, you have a genuinely co-ordinate system: one that’s greater than the sum of its parts, and can achieve more than ever before.


Q2. Earlier payroll systems used the systems which were more than process time sheets, print payroll checks and keep total number of annual wages and deductions. Present day systems used computer-based system that optimizes the collection, collation, transfer and presentation of information throughout an organisation. Identify the type of system used by earlier payroll system and current system and define them. What are the main differences between the two systems? Explain the various characteristics of MIS. (identifying the types- 2 marks, definitions- 2 marks, listing the 4 differences — 4 marks, characteristics of MIS- 2 marks ) 10 marks

Answer :  Type of system used by earlier payroll system :

Earlier payroll systems used the systems which were more than process time sheets, print payroll checks and keep total number of annual wages and deductions.

The old  payroll system is an inexpensive method of performing the payroll process. old payroll means that you, or another employee within your company, calculate the payroll each pay period entirely on paper. You will need to calculate taxes, insurance, 401K, and any other applicable deductions in addition to each employee’s actual earnings. The advantage of using a manual system is that it is very inexpensive, with virtually no start-up costs.

Characteristics of MIS :

1. Management oriented:


The system is designed form the top to work downwards. It does not mean that the system is designed to provide information directly to the top management. Other levels of management are also provided with relevant information.


Q3. Normally when we review a potential software suppliers, we tend to focus only on the potential product’s functionality and cost. Though these elements are important, the methodology neglects other areas of importance. What are the key selection criteria for ERP software.

(listing the criteria for various departments- 5 marks, explaining the necessary questions- 5 marks) 5+5 marks

Answer : Selection criteria for ERP software :

Step 1: Evaluation

Form an evaluation committee that includes top management, functional experts and end-users from the different departments within your company. Consider hiring external consultants to assist. Throughout the selection process, end each step with a consensus of all members to gain enterprise-wide acceptance of the final ERP system.

Step 2: Make An Assessment

Assess your existing business processes and the scale of your operation, so you can determine what’s being done well. Identify the gaps or key challenges that can be solved with the help of an ERP system.


Q4. a. List the major subsystems of manufacturing and production planning module.

(listing — 4 marks)

Answer : Major subsystems of manufacturing and production planning module :

Manufacturing Module :-

This module enables an enterprise to marry technology with business processes to create an integrated solution. It provides the information based upon which the entire operation should be run. It provides the freedom to change manufacturing and planning methods, as need change.

Some of the major subsystem of the manufacturing are

1.            Material and capacity planning

2.            Shop floor control

3.            Quality management

4.            Repetitive manufacturing

5.            Cost management

b. Explain the various modules in detail with example

 (explanation-4 marks, examples- 2 marks)

Answer : Various modules :

A systematic procedure of module-based modeling is designed and proposed to develop a simulation of any flow-type multistage manufacturing system adopting especially the dual-card kanban system.


Master Data – includes the material master, work centers, routings and bill of materials.


Q5. Explain the relation between output variety and the type of manufacturing process with a neat diagram (Diagram- 2 marks, explanation- 8 marks) 10 marks

Answer :  Relation between output variety and the type of manufacturing process :

The quality of the output product always depend on the inputs and manufacturing processes . The variation in output is directly related to processes used in the manufacturing .

A production function specifies the output of a firm, an industry, or an entire economy for all combinations of inputs. Diminishing returns (also called diminishing marginal returns) refers to a progressive decrease in the marginal output of a production process, as the amount of a single factor of production is increased while holding the amounts of all other factors of production constant.


Q6. Describe in detail the workflow of HRM that deploys ERP systems with a neat diagram

(Diagram- 3 marks, listing the different sub modules- 2 marks, explaining-5 marks) 10 Marks


Answer :  Workflow of HRM that deploys ERP system :

Taking the example of employee’s payroll system the workflow of HRM is Given :

Sub modules of HRM :

The Human Resources management system consists of many components, which are capable of working together. Hereunder, we will mention some of these functionalities knowing that we stay at your entire disposition in order to explain and demonstrate the whole human resources sub-modules to you to understand and appreciate the power tools and functionalities of this application:

1. Personnel Administration;


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