ERP Management 5

Question 1

What is 'hypercare' in ERP project management?

Accepted Answer

An intensive support period immediately after go-live with extra resources on standby

Answer

Hypercare is the post-go-live phase where the full project team remains available to rapidly resolve issues before transitioning to steady-state support.

Question 2

In ERP management, what does 'total cost of ownership' (TCO) include beyond the initial software license?

Accepted Answer

Implementation, training, customization, maintenance, and upgrade costs over the system's lifetime

Answer

TCO encompasses all costs over the ERP system's life, including hidden costs like ongoing customization, upgrades, and internal staff time.

Question 3

Which ERP management technique assigns overhead costs to products based on the activities that consume resources?

Accepted Answer

Activity-based costing (ABC)

Answer

Activity-based costing identifies cost drivers for each activity and allocates overhead proportionally, giving more accurate product profitability data.

Question 4

What is the purpose of an 'ERP center of excellence' (CoE)?

Accepted Answer

A dedicated team that manages ERP upgrades, best practices, and continuous improvement across the organization

Answer

A CoE centralizes ERP expertise to standardize processes, govern configurations, drive adoption, and deliver ongoing value after go-live.

Question 5

In ERP supply chain management, what is 'safety stock' designed to protect against?

Accepted Answer

Unexpected demand spikes or supply delays

Answer

Safety stock is buffer inventory held to prevent stockouts caused by demand variability or supplier lead time uncertainty.

ERP - Management Practice Test

ERP - Management Practice Test

ERP Management 5