ERP ERP Fundamentals 3 — Questions and Answers
Question 1: Which ERP implementation strategy involves running the old system and new ERP simultaneously for a period?
- Big bang
- Phased rollout
- Parallel running (Correct answer)
- Pilot deployment
Correct answer: Parallel running
Parallel running keeps both legacy and new ERP systems active simultaneously so outputs can be compared and risks mitigated before full cutover.
Question 2: What is the primary function of the ERP General Ledger (GL) module?
- Track employee work hours
- Record all financial transactions and produce financial statements (Correct answer)
- Manage customer relationships
- Automate procurement workflows
Correct answer: Record all financial transactions and produce financial statements
The General Ledger is the central repository for all financial data, supporting the creation of balance sheets, income statements, and other financial reports.
Question 3: What does 'total cost of ownership' (TCO) include when evaluating an ERP system?
- Only the initial software license fee
- License, implementation, training, maintenance, and upgrade costs over time (Correct answer)
- Hardware costs alone
- Only ongoing subscription fees
Correct answer: License, implementation, training, maintenance, and upgrade costs over time
TCO encompasses all direct and indirect costs over the ERP's lifetime, including implementation services, customization, training, support, and upgrades.
Question 4: In an ERP system, what is a 'master record'?
- A backup copy of the database
- Core reference data such as vendor, customer, or material information used across transactions (Correct answer)
- An audit log of all system changes
- The initial configuration file loaded during implementation
Correct answer: Core reference data such as vendor, customer, or material information used across transactions
Master records store foundational data (e.g., vendor master, material master) that is reused across multiple transactions and modules.
Question 5: Which ERP capability allows field service teams to access system data from mobile devices?
- Batch processing
- Mobile ERP (Correct answer)
- Business intelligence dashboards
- EDI integration
Correct answer: Mobile ERP
Mobile ERP extends system access to smartphones and tablets, enabling field workers to update orders, view inventory, and log time remotely.
Question 6: A 'configuration' in ERP differs from a 'customization' because configuration:
- Requires modifying source code
- Uses built-in system settings and parameters without changing underlying code (Correct answer)
- Is only performed by the software vendor
- Always requires a new software license
Correct answer: Uses built-in system settings and parameters without changing underlying code
Configuration adjusts ERP behavior through settings and parameters within the standard product, while customization involves coding changes that complicate upgrades.
Question 7: What is the role of an ERP 'super user' during and after implementation?
- A vendor representative who manages the contract
- A power user who receives advanced training and supports colleagues in their department (Correct answer)
- The system administrator responsible for server maintenance
- An auditor who reviews system security
Correct answer: A power user who receives advanced training and supports colleagues in their department
Super users are trained deeply on specific modules and serve as internal experts who support peers, troubleshoot issues, and reduce dependence on external consultants.
ERP ERP Fundamentals 3
Which ERP implementation strategy involves running the old system and new ERP simultaneously for a period?