SCM 4380 - ERP - MIDTERM REVIEW EXAM QUESTIONS WITH WELL DEFINED ANSWERS GRADED A+.

Business Process - correct answer A set of tasks or activities that produce desired outcomes. Buy, make, sell. Design, plan, store, service. Financial Accounting - correct answer Concerned with tracking the financial impacts of processes with the primary goal of meeting legal and regulatory reporting requirements. Externally-focused. Examples: income statement and balance sheet Managerial Accounting - correct answer AKA: Controlling Concerned with tracking costs and revenues for internal reporting, intended to help management control costs and revenues and assess the profitability of various products and market segments. Supports decision-making. Silo Effect - correct answer Workers in different functional areas perform their tasks in insolation (functional silos) without regard to the consequences for other components of the process. Lose sight of the "big picture" of larger processes (fulfillment, procurement, etc.) Challenge at hand: coordinating among different functional areas of the organization. Functional Structure - correct answer Organization is divided into functions, or departments, each of which is responsible for a set of closely related activities. Procurement Process (Buy) - correct answer All of the activities involved in buying or acquiring the materials used by the organization, such as raw materials. Production Process (Make) - correct answer The actual creation of the products within the organization. Fulfillment Process (Sell) - correct answer Consists of all the steps involved in selling and delivering the products to the organization's customers. Business Intelligence - correct answer The overall capabilities a company uses to collect and analyze data from a variety of sources to better understand its operations and make better managerial decisions Supply Chain Management - correct answer Connects a company to other companies that supply the materials it needs to make its products. Helps company plan for their production requirements and optimize complex transportation and logistics for materials Architecture - correct answer The technical structure of the software, the ways that users interact with the software, and the ways the software is physically managed on computer hardware. Application Suite - correct answer The collection of inter-company systems and the underlying intra-company ERP system. Suite vendors: SAP, Oracle Enterprise Resource Planning - correct answer Focus primarily on intra-company processes, the operations that are performed within and organization. Integrate functional and cross-functional business processes. SAP was first to create a fully integrated and global ERP system Data Layer - correct answer Where the application stores your work (hard drive or flash drive) Finished Goods - correct answer FERT Created by the production process from other materials. Generally not purchased, so will include data related to production and fulfillment but not procurement. Three Tier Client Server Architecture - correct answer Reduced costs of acquiring, implementing, and using an ES while significantly increasing the scalability (the ability of the hardware and software to support a greater number of users easily over time at a decreasing cost per user) of the systems. Master Data - correct answer Represent entities associated with various processes. Three types of data in an ERP system and how they're related - correct answer (1) Organizational: depicts about the enterprise structure (2) Master: describes about the entities related wit different processes; customers, vendors, materials (3) Transaction: the result of master data; the reflection of executing process steps; quantity of items, date, price, etc. Transaction data is a mix of org, master, and situational data. Material types (4) - correct answer Materials categorized based on way they are used in firm's operations. Type determines which business processes are permitted to use the material. (1) Raw materials (2) Semifinished goods (3) Finished goods (4) Trading goods Accounting Data - correct answer Include tax-related data, bank data, and payment terms and methods. Company code level; relevant to all purchasing transactions in the company code. Financial Accounting Data - correct answer Include the valuation currency, the valuation class, and the price control. General Data - correct answer Include vendor's name, address, and communication information. Client level; consistent across all company codes and purchasing organizations in the enterprise. Vendor Master Data - correct answer Include the data needed to conduct business with a vendor and to execute transactions related to the purchasing process. Consists of general data, accounting data, and purchasing data Company Level Purchasing Organization - correct answer aka: Cross-Plant Model A single purchasing organization is responsible for multiple plants in one company code. Can set up a separate purchasing organization for each country. Less centralized than enterprise level model. Enterprise Level Purchasing Organization - correct answer aka: Cross-Company Code Most centralized model. Only one purchasing organization for the overall enterprise and all of the plants within the enterprise. Third Party Order - correct answer Refers to the items that the vendor ships directly to a customer. Used for trading goods, since coming directl