Management Flashcards

Which ERP management concept refers to the practice of adjusting production schedules based on actual customer demand rather than forecasts?

Answer: Demand-driven planning

Demand-driven planning synchronizes production with real customer orders to reduce waste and inventory.

In ERP change management, what is the primary purpose of a 'steering committee'?

Answer: Providing executive oversight and strategic decisions

A steering committee provides executive sponsorship, resolves cross-functional conflicts, and ensures the project aligns with business strategy.

What does 'process standardization' mean in the context of ERP implementation management?

Answer: Aligning business processes across departments to a common, consistent workflow

Process standardization harmonizes how tasks are performed across the organization so the ERP system can enforce consistent rules.

Which management metric measures the percentage of production orders completed on time and in full?

Answer: On-Time In-Full (OTIF)

OTIF is a key ERP supply chain KPI that tracks delivery reliability from both a timing and quantity perspective.

In ERP project management, what is a 'cutover plan'?

Answer: A detailed schedule for transitioning from the legacy system to the new ERP

A cutover plan documents every step required to switch operations from the old system to the live ERP, typically over a tight go-live weekend.

Which management approach involves giving employees authority to stop production when they detect a defect?

Answer: Jidoka (autonomation)

Jidoka, a lean manufacturing principle, empowers workers or machines to stop the production line immediately upon detecting abnormalities.

What is the main risk of 'scope creep' during an ERP implementation?

Answer: Budget overruns and delayed go-live dates

Scope creep adds unplanned requirements that consume budget and time, making cost and schedule overruns the primary risks.