Management Flashcards
7 cards from real ERP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Management flashcards as text
What is 'hypercare' in ERP project management?
Answer: An intensive support period immediately after go-live with extra resources on standby
Hypercare is the post-go-live phase where the full project team remains available to rapidly resolve issues before transitioning to steady-state support.
In ERP management, what does 'total cost of ownership' (TCO) include beyond the initial software license?
Answer: Implementation, training, customization, maintenance, and upgrade costs over the system's lifetime
TCO encompasses all costs over the ERP system's life, including hidden costs like ongoing customization, upgrades, and internal staff time.
Which ERP management technique assigns overhead costs to products based on the activities that consume resources?
Answer: Activity-based costing (ABC)
Activity-based costing identifies cost drivers for each activity and allocates overhead proportionally, giving more accurate product profitability data.
What is the purpose of an 'ERP center of excellence' (CoE)?
Answer: A dedicated team that manages ERP upgrades, best practices, and continuous improvement across the organization
A CoE centralizes ERP expertise to standardize processes, govern configurations, drive adoption, and deliver ongoing value after go-live.
In ERP supply chain management, what is 'safety stock' designed to protect against?
Answer: Unexpected demand spikes or supply delays
Safety stock is buffer inventory held to prevent stockouts caused by demand variability or supplier lead time uncertainty.
Which management concept in ERP describes the practice of continuously reviewing and improving business processes after go-live?
Answer: Continuous improvement (CI)
Continuous improvement is an ongoing effort to incrementally enhance ERP-supported processes using data, user feedback, and best practices.
What is 'parallel running' in the context of ERP go-live management?
Answer: Operating both the old and new system concurrently to validate results before full cutover
Parallel running mitigates go-live risk by letting users compare outputs from the legacy and new ERP systems until confidence in the new system is established.