Deck 7: Enhancing Business Processes Using Enterprise Information Systems

Question 1

Receiving the goods is followed by ________ in the procure-to-pay process.

A) settling the payment
B) negotiating the price and terms
C) issuing the purchase order
D) creating the order
E) receiving the invoice

Answer 1

E

Question 2

Which of the following is typically the first step in the make-to-stock process?

A) scheduling production
B) procuring inputs
C) processing sales orders
D) negotiating price and terms
E) creating customer records

Answer 2

B

Question 3

In the context of core business processes,which of the following uses a push-based approach?

A) order-to-cash
B) procure-to-pay
C) production-to-order
D) make-to-stock
E) make-to-order

Answer 3

D

Question 4

Which of the following is the first step in the procure-to-pay process?

A) negotiate price and terms
B) issue purchase order
C) receive goods
D) receive invoice
E) settle payment

Question 5

An online retailer has finished creating a customer record.What would be the next step for the retailer in an order-to-cash process?

A) create order
B) allocate stock
C) pick,pack,and ship
D) prepare and send invoice
E) check customer's creditworthiness

Question 6

In the procure-to-pay process,the negotiation of price and terms is followed by ________.

A) settling the payment
B) creating the customer record
C) issuing the purchase order
D) receiving the goods
E) receiving the invoice

Question 7

Which of the following goods are produced using the make-to-order approach?

A) commercial aircraft
B) shampoos
C) lipsticks
D) televisions
E) refrigerators

Question 8

Whenever an order is placed with online retailers,the retailers put together the order,ship it,and charge the customer's credit card.This process of selling a product or service is known as the ________ process.

A) make-to-order
B) time-to-market
C) order-to-cash
D) procure-to-pay
E) make-to-stock

Question 9

Traditionally,companies are organized around five distinct functional areas.Which of the following is one of those areas?

A) supply chain management
B) risk management
C) technology management
D) communication management
E) systems management

Question 10

In the ________ process,raw materials,subcomponents,and accessories are procured based on forecasts,but actual manufacturing does not start until sales orders are received.

A) order-to-cash
B) procure-to-pay
C) make-to-stock
D) acquire-to-dispose
E) make-to-order

Question 11

In the ________ process,goods are produced based on forecasts and are stored in a warehouse and sales orders are then fulfilled from inventory.

A) configure-to-stock
B) make-to-stock
C) make-to-order
D) engineer-to-order
E) assemble-to-order

Question 12

The several processes associated with the acquiring of goods from external vendors are collectively referred to as the ________ process.

A) make-to-stock
B) make-to-order
C) order-to-cash
D) plan-to-produce
E) procure-to-pay

Question 13

Which of the following uses a pull-based approach?

A) make-to-order
B) make-to-stock
C) plan-to-produce
D) account-to-report
E) acquire-to-dispose

Question 14

________ are performed by the functional areas that process inputs and produce outputs.

A) Base activities
B) Core activities
C) Support activities
D) Extended activities
E) Focus activities

Question 15

For most businesses,the ________ process entails several subprocesses including creating a customer record,checking the customer's creditworthiness,creating an order,checking and allocating stock,and shipping.

A) order-to-cash
B) make-to-order
C) procure-to-pay
D) make-to-stock
E) plan-to-produce

Question 16

Which of the following goods are typically produced under a make-to-order approach?

A) expensive high-volume goods
B) cheap high-volume goods
C) very expensive low-volume goods
D) mass-produced goods
E) goods from external vendors

Question 17

Which of the following is a core business process?

A) time-to-purchase
B) make-to-stock
C) plan-to-produce
D) account-to-report
E) hire-to-retire

Question 18

According to the order-to-cash process,what would the next step be for an online retailer after creating an order for a customer?

A) collect payment
B) create customer record
C) check and allocate stock
D) pick,pack,and ship
E) prepare and send invoice

Question 19

________ immediately after the purchase order is issued in the procure-to-pay process.

A) Payment is settled
B) Price and terms are negotiated
C) Credit is checked
D) Goods are received
E) Invoices are received

Question 20

In the order-to-cash process,once "checking credit" is done,it is followed by ________.

A) collecting payment
B) creating an order
C) allocating stock
D) picking,packing,and shipping
E) preparing and sending the invoice

Question 21

Outbound logistics activities focus on the ________.

A) processing of orders
B) distribution of end products within the order-to-cash business process
C) pricing of goods and services
D) transformation of raw materials into end products
E) receiving and stocking of raw materials,parts,and products

Question 22

Systems that focus on the specific needs of individual departments and are not designed to communicate with other systems in the organization are referred to as ________.

A) internally focused applications
B) externally focused systems
C) stand-alone applications
D) enterprise-wide systems
E) enterprise-information systems

Question 23

Human resource activities ________.

A) are classified as a support activity since the primary activities cannot be accomplished without the employees to perform them
B) include the design and development of applications that support the primary business activities
C) include the purchasing of goods and services that are required as inputs to the primary activities
D) integrate the internal applications with suppliers,business partners,and customers
E) streamline the organization's internal value chain

Question 24

Applications that are designed and developed exclusively for a specific organization are known as ________.

A) collaborative software
B) custom software
C) groupware
D) ready-made application software
E) packaged software

Question 25

Customers can purchase ________ software off the shelf to help them with their personal documents and communications.

A) personalized
B) tailored
C) packaged
D) custom
E) bespoke

Question 26

An internally focused system helps an organization coordinate with ________.

A) its suppliers
B) its business partners
C) the government
D) its departments
E) its customers

Question 27

Legacy systems can prove problematic when information from multiple departmental systems is required to support business processes and decision making.Which of the following is most similar to the above scenario?

A) Chuck's is a retail chain that has an inventory management system which is tied to an RFID system.This system notifies Chuck's managers when the inventory in its stores falls below a certain level.
B) Quick Software Solutions has an automated system to track employee absence.It also uses a non-automated system like attendance registers that employees sign every day.This information is updated to Quick's database management system on a weekly basis.
C) Nuok Tires supplies its products to Fresto,an automobile manufacturer.Nuok Tires' factories are located close to Fresto's factories to minimize transportation costs.
D) Fender,a guitar manufacturer,allows customers to design their guitars online.Potential buyers need to send the design with the order to receive their customized guitars.
E) Jsutmi successfully pursues a just-in-time inventory system.Recently,however,it has not been able to meet demand due to labor problems.

Question 28

A(n)________ coordinates business processes with customers,suppliers,and business partners of an organization.

A) internally focused system
B) legacy system
C) stand-alone system
D) intermediary system
E) externally focused system

Question 29

A(n)________ is an integrated suite of business applications for virtually every department,process,and industry,allowing companies to integrate information across operations on a company-wide basis using one large database.

A) legacy system
B) management information system
C) decision support system
D) distributed system software
E) enterprise system

Question 30

Which of the following is a support activity?

A) outbound logistics activities
B) operations and manufacturing activities
C) technology development activities
D) customer service activities
E) marketing and sales activities

Question 31

Designing and developing applications that support the primary business activities are a part of the ________ activities.

A) operations and manufacturing
B) outbound logistics
C) technology development
D) procurement
E) inbound logistics

Question 32

A ________ information flow relates to the information that is produced by a company and sent along to another organization.

A) stand-alone
B) legacy
C) packaged
D) custom
E) downstream

Question 33

Inbound logistics involves business activities associated with ________.

A) distributing end products within the order-to-cash business process
B) creating marketing literature
C) communicating with potential and existing customers
D) receiving and stocking raw materials,parts,and products
E) order processing

Question 34

A system that communicates across organizational boundaries is sometimes referred to as a(n)________.

A) legacy system
B) interorganizational system
C) intraorganizational system
D) internally focused system
E) stand-alone system

Question 35

________ are applications written by third-party vendors that are used by many different users and organizations.

A) Packaged software
B) Custom software
C) Bespoke software
D) Personalized software
E) Tailored software

Question 36

The hardware and software that must be implemented to support the applications that the primary activities use are a part of the ________ activities.

A) human resources
B) technology development
C) procurement
D) inbound logistics
E) infrastructure

Question 37

Assembly processes are ________ activities.

A) outbound logistics
B) marketing and sales
C) customer sales
D) administrative
E) operations and manufacturing

Question 38

Which of the following is a core activity?

A) human resource activities
B) technology development
C) operations and manufacturing
D) administrative activities
E) infrastructure activities

Question 39

A(n)________ information flow consists of information that is received from another organization.

A) stand-alone
B) legacy
C) packaged
D) upstream
E) downstream

Question 40

Administrative activities focus on the ________.

A) design and development of applications that support the primary business activities
B) hardware and software that must be implemented to support the applications that the primary activities use
C) business activities associated with employee management
D) processes and decision making to orchestrate the day-to-day operations of an organization
E) purchasing of goods and services that are required as inputs for the primary activities

Question 41

By breaking down business processes into individual services,organizations can react more swiftly to changing business needs.To achieve these benefits,services have to follow three main principles:

A) reusability,interoperability,and reliability
B) reusability,reliability,and componentization
C) reusability,interoperability,and componentization
D) reusability,interoperability,and accessibility
E) reusability,accessibility,and componentization

Question 42

Information systems management is one of the traditional functional areas that companies are organized around.

Question 43

________ is a systematic,structured approach to improvement,in which people critically examine,rethink,and redesign business processes in order to achieve dramatic improvements in one or more performance measures,such as quality,cycle time,or cost.

A) Business process management
B) Business activity monitoring
C) Business service management
D) Application performance management
E) Application service management

Question 44

Which of the following types of software is best suited for tasks that are unique to a particular business?

A) collaborative
B) custom
C) groupware
D) packaged
E) ready-made application

Question 45

According to business process management,what would be management's next step after developing a vision for the organization?

A) They should identify the ways in which information systems can be used to improve the various business processes.
B) They should design and implement a prototype of the new processes.
C) They should manage the information technology to be used from a business transaction perspective.
D) They should identify the critical processes that are to be redesigned.
E) They should understand and measure the existing processes as a baseline for future improvements.

Question 46

Financial management,operations management,human resource management,and other important internal activities require the support of ________.

A) ERP essence components
B) ERP exterior components
C) ERP core components
D) ERP extended components
E) ERP basis components

Question 47

Which of the following software is cost effective since the vendor that builds the application spreads out the development costs by selling copies to a large number of users?

A) packaged software
B) bespoke software
C) adapted software
D) corrected software
E) custom software

Question 48

Packaged software is ________.

A) highly useful for standardized,repetitive tasks
B) developed exclusively for a specific organization
C) unique to a particular business or organization
D) an application that needs to be maintained internally when changes are required
E) used to accommodate a customer's particular preferences and expectations

Question 49

The features and modules that an enterprise system comes with out of the box are referred to as the ________.

A) best-practices version
B) reengineered version
C) vanilla version
D) customized version
E) modified version

Question 50

In the 1990s,business process management was known as ________.

A) business systems management
B) business process reengineering
C) business service reengineering
D) application performance management
E) application service management

Question 51

Which of the following statements is true with regards to packaged and custom software?

A) Packaged software are applications that are designed and developed exclusively for a specific organization.
B) The development costs of custom software are much higher than for packaged software because of the time,money,and resources that are required to design and develop them.
C) Packaged software is well suited for tasks that are unique to a particular business.
D) Custom software is cost effective since the vendor that builds the application can spread out development costs through selling to a large number of users.
E) Custom software is highly useful for standardized,repetitive tasks,such as writing a report or preparing a presentation.

Question 52

Applications that integrate business activities across departmental boundaries are often referred to as ________ systems.

A) manufacturing resource planning
B) computer-integrated manufacturing
C) capacity requirement planning
D) enterprise resource planning
E) materials requirement planning

Question 53

In service-oriented architecture,________.

A) business processes are broken down into individual components or services
B) business processes of an organization are standardized
C) business processes of an organization are carried out by a large,comprehensive system
D) business processes are shared with channel partners
E) business processes are modified to prevent illegal activities within the process

Question 54

How is business process management similar to quality improvement approaches such as total quality management?

A) They are intended to be cross-functional approaches to improve an organization.
B) They focus on radical redesign and drastic improvement of processes.
C) They focus on incremental change of processes.
D) They focus on the activities typically occurring at the operational level of the organization.
E) They focus on providing capabilities for discovering "hidden" predictive relationships while conducting a forecast.

Question 55

Which of the following is true regarding enterprise resource planning (ERP)?

A) It stores data in different locations.
B) It is an older version of materials requirement planning.
C) It helped in developing the manufacturing resource planning package.
D) Stand-alone applications are a developed version of ERP.
E) It makes the process of sharing information between business activities easier.

Question 56

________ support the primary external activities of the organization for dealing with suppliers and customers.

A) ERP essence components
B) ERP aggrandized components
C) ERP abridged components
D) ERP extended components
E) ERP core components

Question 57

Which of the following is true regarding the formula for success of an enterprise system?

A) Enterprise systems implementations should include personnel from different departments.
B) The success of an enterprise system depends directly on the support received from middle-management.
C) Enterprise systems are simple to understand and implement when compared to stand-alone systems.
D) Using outside consultants tends to complicate the implementation of an enterprise system.
E) Once enterprise systems go live,employees experience an immediate growth in productivity.

Question 58

Specifically,ERP extended components focus primarily on ________.

A) customer relationship management and product lifecycle management
B) product lifecycle management and supply chain management
C) customer relationship management and human capital management
D) human capital management and supply chain management
E) customer relationship management and supply chain management

Question 59

________ support the important internal activities of the organization for producing their products and services.

A) ERP focus components
B) ERP core components
C) ERP extended components
D) ERP base components
E) ERP covering components

Question 60

According to business process management,which of the following would be the next step taken by management after identifying the ways in which the information systems can be used?

A) identifying the critical processes that are to be redesigned
B) understanding and measuring the existing processes as a baseline for future improvements
C) reducing costs and shortening the time it takes to get products to market
D) designing and implementing a prototype of the new process
E) developing a vision for the organization that specifies the business objectives

Question 61

Using service-oriented architecture,business processes are broken down into individual components that are designed to achieve the desired results for the service consumer.

Question 62

Briefly explain the order-to-cash process.

Question 63

The core business processes common to most business organizations are order-to-cash,procure-to-pay,and make-to-stock.

Question 64

There are two major categories of enterprise resource planning (ERP)components-ERP core components and ERP extended components.

Question 65

A legacy system is an integrated suite of business applications for virtually every department,process,and industry,allowing companies to integrate information across operations on a company-wide basis using one large database.

Question 66

Enterprise resource planning replaces stand-alone applications by providing various modules based on a common database and similar application interfaces that service the entire enterprise rather than portions of it.

Question 67

Customer relationship management applications concentrate on the activities involved in promoting and selling products to the customers as well as providing customer service and nourishing long-term relationships.

Question 68

A system that communicates across organizational boundaries is sometimes referred to as an interorganizational system (IOS).

Question 69

Enterprise resource planning core components support the primary external activities of the organization for dealing with suppliers and customers.

Question 70

The processes associated with buying goods from external vendors are together referred to as the procure-to-pay process.

Question 71

Systems that focus on the specific needs of individual departments are typically not designed to communicate with other systems in the organization and are therefore referred to as stand-alone applications.

Question 72

The make-to-order process uses the pull-based approach.

Question 73

Enterprise resource planning control refers to the locus of control over the computing systems and data contained in these systems,as well as decision making authority.

Question 74

The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outside a company.

Question 75

Internally focused systems coordinate business processes with customers,suppliers,and business partners.

Question 76

In the make-to-stock process,raw materials,subcomponents,and accessories are procured based on forecasts,but actual manufacturing does not start until sales orders are received.

Question 77

Rather than storing information in separate places throughout the organization,enterprise systems provide a central repository common to all corporate users.

Question 78

Enterprise resource planning extended components support internal operations such as financial management,operations management,and human resource management.

Question 79

To achieve benefits,a service should have interoperability which means that the service should be usable in many different applications.

Question 80

The order-to-cash process entails subprocesses such as price and terms negotiations,issuing of the purchase order,receiving the goods,and receiving and paying the invoice.