Deck 11: Enterprise Resource Planning Systems

Question 1

A closed database architecture shares data easily.

Answer 1

False

Question 2

If a chosen ERP cannot handle a specific company process bolt-on software may be available.

Answer 2

True

Question 3

Data mining typically focuses on the operational databases.

Answer 3

False

Question 4

Efficient supply-chain management provides firms with a competitive advantage.

Question 5

Slicing and dicing permits the disaggregation of data to reveal underlying details.

Question 6

OLAP stands for online application processing.

Question 7

Companies typically modify an ERP to accommodate the existing business processes.

Question 8

ERP systems support a smooth and seamless flow of information across organizations.

Question 9

Day-to-day transactions are stored in the operational database.

Question 10

The recommended data architecture for an ERP includes separate operational and data warehouse databases.

Question 11

Core applications are also called OLAP.

Question 12

The primary goal of installing an ERP system is achieving business process reengineering to improve customer service,reduce production time,increase productivity,and improve decision-making.

Question 13

Drill-down capability is an OLAP feature of data mining tools.

Question 14

The client/server model is a form of network topology in which user computers,called clients,access ERP programs and data via a host computer called a server.

Question 15

The primary goal of installing an ERP system is reducing system maintenance costs.

Question 16

Data entered into the data warehouse must be normalized.

Question 17

Supply-chain management software is a type of program that supports efforts related to moving goods from the raw material stage to the customer.

Question 18

A data warehouse is a relational or multi-dimensional database that may require hundreds of gigabytes of storage.

Question 19

In two-tier architecture,the database and application functions are separated.

Question 20

OLAP includes decision support,modeling,information retrieval,and what-if analysis.

Question 21

Which of the following statements is not true?

A)In a typical two-tier client server system, the server handles both application and database duties.
B)Client computers are responsible for presenting data to the user and passing user input back to the server.
C)In three-tier client server architecture, one tier is for user presentations, one is for database and applications, and the third is for Internet access.
D)The database and application functions are separate in the three-tier model.

Question 22

Which of the following statements is least likely to be true about a data warehouse?

A)It is constructed for quick searching and ad hoc queries.
B)It was an original part of all ERP systems.
C)It contains data that are normally extracted periodically from the operating databases.
D)It may be deployed by organizations that have not implemented an ERP.

Question 23

Organizations using ERP systems employ an internal control tool called a role.

Question 24

In spite of the high technology employed in ERP systems,critical business controls such as a three-way match are always performed manually.

Question 25

The implementation of an ERP creates an environment with a single point of failure,which places the organization at risk.

Question 26

Data warehousing processes do not include

A)modeling data
B)condensing data
C)extracting data
D)transforming data

Question 27

The big-bang approach involves converting from old legacy systems to the new ERP in one implementation step.

Question 28

A problem with RBAC is that managers tend to create unnecessary roles.

Question 29

Data cleansing is a step performed by external auditors to identify and repair invalid data prior to the audit.

Question 30

Which statements about data warehousing is not correct?

A)The data warehouse should be separate from the operational system.
B)Data cleansing is a process of transforming data into standard form.
C)Drill-down is a data-mining tool available to users of OLAP.
D)Normalization is a requirement of databases included in a data warehouse.

Question 31

Which statement is true?

A)ERPs are infinitely scalable.
B)Performance problems usually stem from technical problems, not business process reengineering.
C)The higher-end ERP can handle any problems an organization can have.
D)ERP systems can be modified using bolt-on software.

Question 32

An access control list specifies the user-ID,the resources available to the user,and the level of permission granted.

Question 33

The role model assigns specific access privileges directly to individuals.

Question 34

Goals of ERP include all of the following except

A)improved customer service
B)improvements of legacy systems
C)reduced production time
D)increased production

Question 35

Which of the following is usually not part of an ERP's core applications?

A)OLTP applications
B)sales and distribution applications
C)business planning applications
D)OLAP applications

Question 36

A two-tier architecture approach is used primarily for wide area network (WAN)applications.

Question 37

Which statement about ERP installation is least accurate?

A)For the ERP to be successful, process reengineering must occur.
B)ERP fails because some important business process is not supported.
C)When a business is diversified, little is gained from ERP installation.
D)The phased-in approach is more suited to diversified businesses.

Question 38

Core applications are

A)sales and distribution
B)business planning
C)shop floor control and logistics
D)all of the above

Question 39

RBAC assigns access permissions to the role an individual plays in the organization rather than directly to the individual.

Question 40

Which of the following is usually not part of an ERP's OLAP applications?

A)logistics
B)decision support systems
C)ad hoc analysis
D)what-if analysis

Question 41

Which of the following is a reason that data warehouses are created and maintained separately from operational databases?

A)The data is used in different ways that requires it to be physically separate.
B)No ERP system incorporates data warehousing capability.
C)Audit controls require that data for management analysis be kept separate from transaction data.
D)A separate centralized data warehouse is an effective means of collecting data from diverse sources.

Question 42

Define ERP.

Question 43

What is a data warehouse?

Question 44

Legacy systems are

A)old manual systems that are still in place
B)flat file mainframe systems developed before client-server computing became standard
C)stable database systems after debugging
D)advanced systems without a data warehouse

Question 45

A data mart is

A)another name for a data warehouse
B)a database that provides data to an organization's customers
C)an enterprise resource planning system
D)a data warehouse created for a single function or department

Question 46

What is SCM software?

Question 47

Online transaction processing programs

A)are bolt-on programs used with commercially available ERPs
B)are available in two models-two-tier and three-tier
C)handle large numbers of relatively simple transactions
D)allow users to analyze complex data relationships

Question 48

Closed database architecture is

A)a control technique intended to prevent unauthorized access from trading partners
B)a limitation inherent in traditional information systems that prevents data sharing
C)a data warehouse control that prevents unclean data from entering the warehouse
D)a database structure that many of the leading ERPs use to support OLTP applications

Question 49

Most ERPs are based on which network model?

A)peer to peer
B)client-server
C)ring topology
D)bus topology

Question 50

Define the term core applications and give some examples.

Question 51

Define OLAP and give some examples.

Question 52

What is bolt-on software?

Question 53

Data cleansing involves all of the following except

A)filtering out or repairing invalid data
B)summarizing data for ease of extraction
C)transforming data into standard business terms
D)formatting data from legacy systems

Question 54

Which of the following is not a risk associated with ERP implementation?

A)A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system.
B)Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new systems.
C)The selected system does not adequately meet the adopting firm's economic growth.
D)ERPs are too large, complex, and generic for them to be well integrated into most company cultures.

Question 55

Which statement is least accurate?

A)Implementing an ERP system has as much to do with changing the way an organization does business as it does with technology.
B)The big bang approach to ERP implementation is generally riskier than the phased-in approach.
C)To take full advantage of the ERP process, reengineering will need to occur.
D)A common reason for ERP failure is that the ERP does not support one or more important business processes of the organization.

Question 56

Which of the following is not a risk associated with ERP implementation?

A)opposition to changes in the business culture
B)choosing the wrong ERP
C)choosing the wrong consultant
D)All of these are risks associated with ERP implementations.

Question 57

The big bang approach

A)is more ambitious and risky than the phased-in approach
B)is a popular alternative to the phased-in approach
C)reduces the chance of system failure
D)all of the above

Question 58

The setup of a data warehouse includes

A)modeling the data
B)extracting data from operational databases
C)cleansing the data
D)all of the above

Question 59

Supply chain management software

A)is typically under the control of external partners in the chain
B)links all of the partners in the chain, including vendors, carriers, third-party firms, and information systems providers
C)cannot be integrated into an overall ERP
D)none of the above

Question 60

Extracting data for a data warehouse

A)cannot be done from flat files
B)should only involve active files
C)requires that the files be out of service
D)all of the above

Question 61

Why must a data warehouse include both detail and summary data?

Question 62

Describe the two-tier client server model.

Question 63

What is scalability?

Question 64

What is meant by the OLAP term: slicing and dicing?

Question 65

What is the purpose of role-based governance software?

Question 66

What is the closed database architecture?

Question 67

What are the basic stages of the data warehousing process?

Question 68

What is meant by the OLAP term: consolidation?

Question 69

What is meant by the OLAP term: drill-down?

Question 70

Describe the three-tier client server model.

Question 71

What is data mining?

Question 72

What should management do to assess the potential benefits from implementing an ERP?

Question 73

Why are data in a data warehouse stored in unnormalized tables?

Question 74

How can a firm acquire bolt-on software? What are the options?

Question 75

Why do ERP systems need bolt-on software? Give an example.

Question 76

Internal efficiency is cited as one reason for separating the data warehouse from the operational database.Explain.

Question 77

What is data cleansing?

Question 78

What are the three key internal control concerns for managers and auditors regarding ERP roles?

Question 79

What is the client-server model?

Question 80

What is the big bang approach?