ERP ERP Project Governance 1 — Questions and Answers
Question 1: What is the primary role of an ERP steering committee?
- Write technical specifications for developers
- Provide executive oversight, resolve escalations, and approve major project decisions (Correct answer)
- Conduct end-user training sessions
- Manage day-to-day project tasks
Correct answer: Provide executive oversight, resolve escalations, and approve major project decisions
The steering committee provides strategic direction, removes roadblocks, and ensures the ERP project aligns with organizational goals.
Question 2: Which document formally authorizes an ERP project and names the project manager?
- Project scope statement
- Project charter (Correct answer)
- Risk register
- Business requirements document
Correct answer: Project charter
The project charter officially sanctions the ERP project, establishes its objectives, and grants the project manager authority to use resources.
Question 3: What is the purpose of an ERP project governance framework?
- Define the technical architecture of the ERP system
- Establish decision rights, accountability structures, and escalation paths for the project (Correct answer)
- Document all system customizations
- Create the training schedule
Correct answer: Establish decision rights, accountability structures, and escalation paths for the project
A governance framework clarifies who makes which decisions, who is accountable for outcomes, and how issues are escalated in the ERP project.
Question 4: In ERP governance, a RACI matrix is used to:
- Measure system performance benchmarks
- Define Responsible, Accountable, Consulted, and Informed roles for each project task (Correct answer)
- Track software defects
- Plan data migration sequences
Correct answer: Define Responsible, Accountable, Consulted, and Informed roles for each project task
A RACI matrix eliminates ambiguity by clearly assigning responsibility and accountability for every ERP project activity or deliverable.
Question 5: What is scope creep in an ERP project, and why is it a governance concern?
- Gradual system slowdowns due to data volume
- Uncontrolled expansion of project requirements that increases cost and risk without formal approval (Correct answer)
- Adding users to the system after go-live
- Running parallel systems during cutover
Correct answer: Uncontrolled expansion of project requirements that increases cost and risk without formal approval
Scope creep undermines budget, schedule, and quality because unapproved additions bypass the governance change control process.
Question 6: Which governance artifact tracks identified risks and their mitigation strategies throughout the ERP project?
- Project charter
- Risk register (Correct answer)
- Configuration workbook
- RACI matrix
Correct answer: Risk register
The risk register is a living document that logs potential ERP project risks, their probability, impact, owners, and mitigation or contingency plans.
ERP ERP Project Governance 1
What is the primary role of an ERP steering committee?