ERP Management 2 — Questions and Answers
Question 1: Which ERP management concept refers to the practice of adjusting production schedules based on actual customer demand rather than forecasts?
- Demand-driven planning (Correct answer)
- Push manufacturing
- Batch processing
- Capacity leveling
Correct answer: Demand-driven planning
Demand-driven planning synchronizes production with real customer orders to reduce waste and inventory.
Question 2: In ERP change management, what is the primary purpose of a 'steering committee'?
- Writing technical specifications
- Providing executive oversight and strategic decisions (Correct answer)
- Training end users on the new system
- Managing database migrations
Correct 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.
Question 3: What does 'process standardization' mean in the context of ERP implementation management?
- Using the same software vendor for all modules
- Aligning business processes across departments to a common, consistent workflow (Correct answer)
- Standardizing IT infrastructure hardware
- Applying uniform data entry screen layouts
Correct 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.
Question 4: Which management metric measures the percentage of production orders completed on time and in full?
- Throughput rate
- On-Time In-Full (OTIF) (Correct answer)
- Days Sales Outstanding (DSO)
- Inventory Turnover
Correct 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.
Question 5: In ERP project management, what is a 'cutover plan'?
- A budget reduction strategy mid-project
- A detailed schedule for transitioning from the legacy system to the new ERP (Correct answer)
- A plan to cut underperforming project team members
- A risk mitigation document for data loss
Correct 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.
Question 6: Which management approach involves giving employees authority to stop production when they detect a defect?
- Six Sigma DMAIC
- Jidoka (autonomation) (Correct answer)
- Theory of Constraints
- Kaizen event
Correct answer: Jidoka (autonomation)
Jidoka, a lean manufacturing principle, empowers workers or machines to stop the production line immediately upon detecting abnormalities.
Question 7: What is the main risk of 'scope creep' during an ERP implementation?
- Reduced user adoption
- Budget overruns and delayed go-live dates (Correct answer)
- Loss of vendor support contracts
- Decreased system performance
Correct 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.
ERP Management 2
Which ERP management concept refers to the practice of adjusting production schedules based on actual customer demand rather than forecasts?