ERP As-Is & To-Be Process Modeling 3 — Questions and Answers
Question 1: In To-Be process modeling for an ERP, what is the significance of defining 'trigger events' for each process?
- They establish what initiates a process, ensuring the ERP is configured to start workflows correctly (Correct answer)
- They determine the cost center charged for each transaction
- They identify which legacy system to decommission first
- They set the reporting hierarchy for management dashboards
Correct answer: They establish what initiates a process, ensuring the ERP is configured to start workflows correctly
Trigger events define what starts a process (e.g., a purchase order received), which is critical for configuring ERP workflow automation.
Question 2: A company's As-Is order-to-cash cycle takes 14 days. The To-Be model targets 5 days. What type of analysis justifies this target in the business case?
- Cycle time analysis and benchmarking against industry standards (Correct answer)
- Capacity planning for warehouse expansion
- Network latency testing of the ERP servers
- User acceptance testing results
Correct answer: Cycle time analysis and benchmarking against industry standards
Cycle time analysis combined with industry benchmarking provides evidence-based justification for To-Be cycle time reduction targets.
Question 3: Which technique involves assigning time and cost estimates to each step in the As-Is process to quantify the impact of inefficiencies?
- Activity-based costing (ABC) applied to process steps (Correct answer)
- Critical path method scheduling
- Monte Carlo simulation
- Root cause analysis
Correct answer: Activity-based costing (ABC) applied to process steps
Activity-based costing assigns time and cost to each process activity, enabling quantification of current-state inefficiency costs.
Question 4: When the To-Be model requires a process that the ERP standard functionality does not support, what is the preferred first course of action?
- Re-engineer the business process to fit standard ERP functionality (Correct answer)
- Immediately customize the ERP source code
- Cancel the ERP implementation project
- Outsource the process to a third party
Correct answer: Re-engineer the business process to fit standard ERP functionality
Best practice is to adapt the business process to standard ERP functionality (fit-to-standard) before considering customization.
Question 5: In a To-Be process model, an 'exception handling' path is best described as:
- An alternate flow that manages non-standard scenarios outside the happy path (Correct answer)
- A batch process run at month-end closing
- The primary user interface for data entry
- A report generated for executive review
Correct answer: An alternate flow that manages non-standard scenarios outside the happy path
Exception handling paths in To-Be models define how the process responds when conditions deviate from the standard (happy path) scenario.
Question 6: What does 'process harmonization' mean in the context of a multi-site ERP rollout?
- Standardizing processes across all business units so they operate identically in the ERP (Correct answer)
- Installing identical hardware at each site
- Translating system documentation into multiple languages
- Assigning the same project manager to each site
Correct answer: Standardizing processes across all business units so they operate identically in the ERP
Process harmonization means aligning and standardizing how all sites perform the same process so a single ERP configuration supports them all.
Question 7: Which of the following best describes a 'conference room pilot' in the context of To-Be process validation?
- A structured test where end users execute To-Be processes in a configured ERP sandbox to validate design (Correct answer)
- An executive presentation of project status held in a conference room
- A vendor demonstration of ERP capabilities to stakeholders
- A technical review of server infrastructure requirements
Correct answer: A structured test where end users execute To-Be processes in a configured ERP sandbox to validate design
A conference room pilot is a hands-on test session where users run real business scenarios through the configured ERP to validate that To-Be processes work as designed.
ERP As-Is & To-Be Process Modeling 3
In To-Be process modeling for an ERP, what is the significance of defining 'trigger events' for each process?