Concepts In Enterprise Resource Planning 4th Edition by Monk – Test Bank A+

$35.00
Concepts In Enterprise Resource Planning 4th Edition by Monk – Test Bank A+

Concepts In Enterprise Resource Planning 4th Edition by Monk – Test Bank A+

$35.00
Concepts In Enterprise Resource Planning 4th Edition by Monk – Test Bank A+
  1. The tasks associated with managing a company’s workforce is now known as human capital management or HCM.

ANS: T PTS: 1 REF: 159

  1. The responsibilities of an HR department include manufacturing goods and purchasing raw materials.

ANS: F PTS: 1 REF: 159

  1. Ensuring that these tasks are accomplished and that valid human resources-related information is communicated throughout the organization requires a system that effectively controls the flow of information.

ANS: T PTS: 1 REF: 160

  1. Employee turnover is strongly tied to effective communications from human resources.

ANS: F

Employee turnover is strongly tied to job satisfaction and compensation.

PTS: 1 REF: 165

  1. Succession planning should be performed on every employee in the company.

ANS: F

A succession plan outlines the strategy for replacing key employees when they leave the company or move to another position within the company. The success of a company depends in large part on the skills, abilities, and experience of its management team.

PTS: 1 REF: 175

MULTIPLE CHOICE

  1. The tasks associated with managing a company’s workforce is now known as ____.
a.human capital managementc.workforce management
b.resource managementd.hiring management

ANS: A PTS: 1 REF: 159

  1. The job of managing salary and benefits provided to each employee and confirming that the proper benefits are disbursed to new and current employees falls under the ____ department.
a.Accounting and Financec.Individual
b.Human Resourcesd.Administrative

ANS: B PTS: 1 REF: 160

  1. To record employee working times, SAP ERP uses ____.
a.punched cardsc.CATS (cross application time sheets)
b.RFIDsd.multiple databases

ANS: C PTS: 1 REF: 173

  1. The parts of an employee’s pay that is comprised of base pay, bonuses, gratuities, overtime, sick pay , and vacation allowances are known as ____.
a.payroll runc.voluntary deductions
b.statutory deductionsd.remuneration elements

ANS: D PTS: 1 REF: 173

  1. ____ are skills or abilities associated with a position, while ____ are skills or abilities associated with a specific employee.
a.Qualifications; requirementsc.Duties; tasks
b.Requirements; qualificationsd.Tasks; duties

ANS: B PTS: 1 REF: 175

  1. What is a plan for replacing key employees called?
a.Duty rosterc.Succession plan
b.Replacement circulard.Reincarnation study

ANS: C PTS: 1 REF: 175

  1. SAP’s ERP helps the administration of employees taking time off under a government act that allows compensation for family and medical problems. This act, passed in 1993, is the ____.
a.FIAc.FMLA
b.QOTAd.PROBA

ANS: C PTS: 1 REF: 177

  1. Which functional part of the organization communicates changes in salaries, benefits, and policies to employees?
a.Sales and Marketingc.Accounting and Finance
b.Supply Chain Managementd.Human Resources

ANS: D PTS: 1 REF: 160

  1. What is the source of Fitter Snacker’s problems with Human Resources?
a.Inaccurate informationc.Inconsistent information
b.Out-of-date informationd.All of the above

ANS: D PTS: 1 REF: 160

  1. What is the name of the group of candidates selected to be interviewed by Fitter Snacker for a particular position? For example, assume 20 applicants applied and only three were selected to be interviewed.
a.Short listc.Final three
b.Select groupd.Applicants

ANS: A PTS: 1 REF: 162

  1. What is probably the most important function of a human resources department?
a.Recruiting and hiringc.Benefits management
b.Payroll processingd.New hire training

ANS: B PTS: 1 REF: 173

  1. SAP ERP provides an Organization and Staffing Plan tool that is used to define a company’s ____ and the positions within the organizational structure as a whole.
a.management structurec.hiring process
b.benefits programd.job titles

ANS: A PTS: 1 REF: 169

  1. The process of determining each employee’s pay is called a ____.
a.payroll runc.cash-out
b.weekly round-upd.remunerations session

ANS: A PTS: 1 REF: 173

  1. The SAP ERP system evaluates the input data to payroll and notes any discrepancies in a(n) ____.
a.payroll reportc.discrepancy list
b.error logd.off-target list

ANS: B PTS: 1 REF: 173

  1. An outgrowth of the ____ is that companies must account for the expected costs that occur as a result of long-term incentives such as the exercising of stock options.
a.Income Statementc.Consolidated statements
b.Balance Sheetd.Sarbanes-Oxley Act

ANS: D PTS: 1 REF: 177-178

SHORT ANSWER

  1. Define the terms human capital management.

ANS:

Companies are increasingly aware of the importance of an experienced, well-trained workforce and have begun using the term human capital management (HCM) to describe the tasks associated with managing a company’s workforce.

PTS: 1 REF: 159

  1. What are remuneration elements?

ANS:

The remuneration elements of an employees pay include the base pay, bonuses, gratuities, overtime, sick pay, and vacation allowances that the employee has earned during the pay period.

PTS: 1 REF: 173

  1. What are statutory and voluntary deductions?

ANS:

The statutory and voluntary deductions include taxes (federal, state, local, Social Security, and Medicare), company loans, and benefit contributions.

PTS: 1 REF: 173

  1. What are the differences between requirements and qualifications?

ANS:

Requirements are skills or abilities associated with a position, while qualifications are skills or abilities associated with a specific employee. Requirements and qualifications refer to the same concept from a different perspective.

PTS: 1 REF: 175

  1. What is succession planning?

ANS:

A succession plan outlines the strategy for replacing key employees when they leave the company or move to another position within the company.

PTS: 1 REF: 175

ESSAY

  1. Outline the responsibilities of an HR department.

ANS:

Attracting, selecting, and hiring new employees using information from resumes, references, and the interview process.

Communicating information regarding new positions and hires throughout the organization and beyond.

Ensuring that employees have the proper education, training, and certification to successfully complete their duties.

Handling issues related to employee conduct.

Making sure employees understand the responsibilities of their jobs.

Using an effective process to review employee performance and determine salary increases and bonuses.

Managing the salary and benefits provided to each employee and confirming that the proper benefits are disbursed to new and current employees.

Communicating changes in salaries, benefits, or policies to employees.

Supporting management plans for changes in the organization (expansion, retirements and so on) so that competent employees are available to support business processes.

PTS: 1 REF: 160

  1. Discuss employee turnover and the cost of hiring.

ANS:

Employee turnover can be a significant problem. The cost of hiring an employee has been estimated from thousands of dollars to $50,000. When evaluating the cost of hiring an employee, and company should consider both the direct costs of hiring an employee, and the less tangible costs that occur during an employee’s first year or so. For example, while new employees are learning their jobs, other employees have to take time from their normal jobs to train them, which can negatively impact their productivity.

Another cost that is difficult to quantify is the employees historical knowledge of the job, which is lost when an employee leaves a company. For example, if a purchasing manager leaves a company, then all of the managers knowledge about supplier relations is lost. The company does have a record of the contract signed with the supplier, but details of the negotiations that led to the contract may not be documented. Such details can be crucial in successfully negotiating the next contract. The manager may have developed good relations with the supplier and knows who to contact when there are problems. These relationships are not specified as part of the purchasing manager position, but accrue over time with the individual holding the position. When companies experience high rates of turnover, they lose knowledge and skills that may be crucial to keeping them competitive.

Employee turnover is strongly related to job satisfaction and compensation. If employees have satisfying jobs and are well compensated, they are less likely to leave the company. Human Resources can help maintain a satisfying work environment through a number of means, including training programs for supervisors and managers, conducting periodic employee satisfaction surveys, and gathering data from employee exit surveys. Human Resources also has a critical role to play in compensation, which should be related to the skills and tasks required of the job and the performance of the employee. An important function of the HR Department is to make sure compensation levels are competitive and are applied fairly to all employees. Failure to do so can result in high rates of turnover as well as discrimination lawsuits.

PTS: 1 REF: 165

  1. How does the SAP ERP system distinguish between a task, job, and person?

ANS:

SAP ERP distinguishes between a person, task, job, and position. In SAP, a person is a unique individual who holds a position and who performs tasks, which are the assigned responsibilities related to a specific job or position. Tasks can be assigned to a position directly, or they can be grouped together in a job. A job is a general classification of tasks that are routinely performed together. For example, the job of department head could be defined by assigning it tasks such as review employee performance and prepare monthly budget reports.

A position is an individual employee assignment within the organization. Tasks can be assigned directly to a position, or they can be assigned to the position by assigning a job to that position. For example, the position of purchasing manager could be defined with the department head job assigned to it. The purchasing manager would then be responsible for the review employee performance and prepare monthly budget reports tasks. The purchasing manager position could also have tasks such as review monthly spending assigned to it directly.

PTS: 1 REF: 169-170

  1. What is management by objectives (MBO)?

ANS:

The concept of management by objectives (MBO) was first outlined by Peter Drucker in his 1954 book The Practice of Management. In MBO, managers are encouraged to focus on results, not activities, and negotiating a contract of goals with their subordinates without dictating the exact methods for achieving them. SAP ERP provides a comprehensive process to support the MBO approach that incorporates performance appraisal. The appraisal results can affect the employees compensation, generating annual pay raises that can be either significant or insignificant, depending on the employees performance. Likewise, managers can include the results of achieved objectives in the employees qualifications profile.

PTS: 1 REF: 178

Chapter 7: Process Modeling, Process Improvement, and ERP Implementation

TRUE/FALSE

  1. A process model can be as simple as a diagram with boxes and arrows or as complex as computer software that allows for process simulation.

ANS: T PTS: 1 REF: 184

  1. A graphical representation of the movement or flow of concrete or abstract items is a spreadsheet.

ANS: F PTS: 1 REF: 184

  1. The term process mapping is often used interchangeably with flowcharting.

ANS: T PTS: 1 REF: 184

  1. An assessment of disparities between an organization’s current situation and its long-term goals is known as a swimlane assessment.

ANS: F

Once a company develops a process map, it can perform a gap analysis, which is an assessment of disparities between how the process currently works and how the organization wants it to work.

PTS: 1 REF: 184

  1. Process boundaries define which activities are to be included in the process.

ANS: T PTS: 1 REF: 186

  1. ERP software such as SAP has many business applications but none of them support business processes.

ANS: F PTS: 1 REF: 184

  1. In flowchart analysis, each activity in the process is analyzed for the value it adds to the product or service.

ANS: F

SAP ERP software supports hundreds of business processes, and SAP has developed graphical models for many of these business processes using the event process chain (EPC) format.

PTS: 1 REF: 189

  1. Dynamic process modeling takes a basic process flowchart and puts it into motion, using computer simulation techniques to facilitate the evaluation of proposed process changes.

ANS: T PTS: 1 REF: 198

  1. Software programs that automate the execution of business processes and address all aspects of the process are called ERP Wizards.

ANS: F PTS: 1 REF: 200

  1. Organizational change management is a trivial part of the implementation process.

ANS: F PTS: 1 REF: 206

MULTIPLE CHOICE

  1. A graphical representation of a business process is known best as a ____.
a.mapc.flowchart
b.state diagramd.stack

ANS: C PTS: 1 REF: 184

  1. When doing process mapping, one of the most important tasks is to define the ____. These define which activities are to be included in the process.
a.scalesc.legends
b.process boundariesd.scopes

ANS: B PTS: 1 REF: 186

  1. Beyond the simple tools of flowcharting, a helpful tool called ____ allows one to describe a business process in greater or less detail depending on the task at hand.
a.hierarchical modelingc.detail focused charting
b.drill down stagingd.magnifying glass charting

ANS: A PTS: 1 REF: 187

  1. A deployment flowchart is also known as a(n) ____.
a.event process chain flowchartc.ERP flowchart
b.swimlane flowchartd.best practices flowchart

ANS: B PTS: 1 REF: 188

  1. In value analysis, which of the following activities should be eliminated?
a.Real valuec.No value
b.Business valued.Value add

ANS: C PTS: 1 REF: 197

  1. In value analysis, which of the following activities is defined as a value for which the customer is willing to pay?
a.Real valuec.No value
b.Business valued.Value add

ANS: A PTS: 1 REF: 197

  1. Which software programs automates the execution of business processes?
a.SAP Wizardsc.Workflow tools
b.ASAPd.Swimlanes

ANS: C PTS: 1 REF: 200

SHORT ANSWER

  1. Define organizational change management (OCM).

ANS:

Managing the human behavior aspects of organizational change is called organizational change management (OCM).

PTS: 1 REF: 206

  1. Define scope creep.

ANS:

A common problem in ERP implementations is scope creep, which is the unplanned expansion of the projects goals and objectives. Scope creep causes the project to go over time and over budget and increases the risk of an unsuccessful implementation. Defining the project’s scope ahead of time helps prevent this problem.

PTS: 1 REF: 207

  1. What is the function of the Development (DEV) system in the SAP system landscape concept?

ANS:

The Development (DEV) system is used to develop configuration settings for the system, as well as special enhancements using ABAP code. These changes are automatically recorded in the transport directory, which is a special data file location on the DEV server.

PTS: 1 REF: 210

PROBLEM

  1. Create a swimlane document flowchart for the following problem.

OLD FASHIONED UNIVERSITY COURSE SCHEDULING PROCESS

Old Fashioned University administrators strongly believe that some changes are good and that some changes are not so good. That philosophy must be kept in mind, when trying to understand OFU’s course registration system, which is a partly-manual, partly computerized system.

The individual student starts the process by filling out course cards. A card is merely a pre-printed 3”x5” card that has a space for the student’s name, student ID number, and the desired course’s ID number. The student completes a card for each course they want to take next semester.

The student takes their stack of cards to the OFU Advisement Center, which is staffed by OFU academic advisors. These advisors are trained to know what courses can be taken by students in the various OFU majors. The student drops off their stack of cards for analysis.

An advisor takes a stack of cards and performs what is called an Advisor Review. The student need not be present. The advisor looks up the student’s history in the OFU Student Information System (OFUSIS). This history shows what courses the student has already taken. The history is a file on disk and the contents for that student is shown in a window on the advisor’s computer monitor. The advisor also opens up the Advisor Resource, a file on disk that has the course registration rules. These rules are course pre-requisites, degree requirements for each major and so on. This is a file on disk, and the contents are shown in another window on the advisor’s computer monitor. The contents of these two files are used by the advisor during the Advisor Review. The advisor goes through the stack of cards. If a course may not be taken by the student in the next semester, its card is put into the Rejected Card stack. If a course may be taken by the student in the next semester, its card is put into the Accepted Card stack. After doing this for a student’s stack of cards, the advisor writes an entry to the Advisor Log. The log is a file on disk that is merely a running diary of what the advisor did in a day. The rejected cards are put into a wastebasket for eventual shredding. The accepted stack is retained for the student in an alphabetized file.

The student comes to the Center to retrieve their accepted card stack. The student manually fills out a Scantron form, bubbling in a line of data for each accepted course. Number two pencils are used for this step. This step is called the Scantron Sheet Preparation step. The student keeps the stack of cards as a memento of this important step in their academic career. Completed forms are put into a basket at the notoriously cranky OFU Advisement Center receptionist’s desk. The receptionist is supposed to smile at each student as they leave, but always the receptionist frowns.

The Scantron forms are sent to the OFU Computing Center. Under software program control a mark sense reader scans the forms. This step is called the Mark Sense Read step. The courses requested by each student are written to a file on disk. The file is called the Master Course Requested file. Data are merely appended to the end of the file for each student (each record is merely: student number, course number).

These steps go on daily in Advisement and in the Computing Center for the two week registration period. Each day in that period the Center runs the Interim Course Scheduling program. The purpose of this program is to incrementally build up the course registration schedule, day by day. The input to the Interim program the Master Course Requested file, which is opened for reading. The other input is the Preliminary Course Registration file, another file on disk. The day’s entries to the Master Course Requested file are processed, and the Preliminary Course Registration Schedule is updated. This file will need much refinement at the end, to get to the final course registration schedule. But at least it is a serviceable starting point for that purpose.

At the end of the registration period, the Computing Center runs the Super Duper Course Registration Program. The Supe (as it is affectionately known in the computing center) is a complicated linear programming package that slots students into courses, based on course capacity, number of sections, course pre-requisites and other factors. The input to the Supe is the Preliminary Course Registration Schedule file, which is opened for reading and stays open as long as the Supe runs. There are three outputs, once the program is finished running:

  1. A set of student course schedules, showing the courses that each student was given by the Supe. These schedules are sent to the Advisement Center.
  2. A set of class lists showing which students are in each section of each course. These class lists are sent to the academic departments on campus, for distribution to faculty members.
  3. A multi-copy Summary Report. One copy is filed in the Computing Center. Another copy is sent to the Advisement Center. A third is sent to the Registrar’s Office.

Students are asked to come to the Advisement Center to pick up their course schedule. Rarely do students get exactly what they asked for and they generally frown when told that the Supe knows what is good for them. Seeing these frowns makes the receptionist smile.

The Registrar gives the report a brief read and then puts it in a file cabinet for future reference.

The Academic Department secretaries put the class lists into faculty member mailboxes.

ANS:

PTS: 1 REF: 188-189

  1. Create a swimlane document flowchart for the following Fitter Snacker sales process. Use the swimlanes of Customer, Sales, Manufacturing, and Procurement.

Here is a description of what happens when a customer wants to buy cases of Fitter Snacker bars. In this situation, they are not buying through the sales person, they are buying through the inside sales department (handled only by phone):

  1. The Customer that wants to buy the bars fills out a multipart paper request and sends it to the sales department.
  2. The Sales department sends a copy of the customer’s request to the Manufacturing Department and to the Procurement Department. The Sales Department files their copy of the paper form alphabetically by customer name.
  3. The order arriving in the Manufacturing Department triggers the creation of a preliminary work order. To create this preliminary work order, the department gets data from (a) the sales order, (b) their current production plan file (a window on the plant manager’s PC), (c) their current capacity requirement plan (another paper document), and (d) their history of prior work file which is on the plant manager’s PC’s hard drive and read off the computer screen. An estimate of time, labor, and overhead is manually prepared and entered into a preliminary work order form, which is a multi-part paper form. One copy of the form is sent to the Procurement Department, one copy sent to the Sales Department which is filed by sales order number in a file cabinet, and the Manufacturing department files one copy of the report by order date in the cabinet. The prior work file is not yet updated since the bars have yet to be manufactured.
  4. To simplify matters, let’s assume that the Procurement Department does NOT have to buy any raw materials. Since this is the case, assume the Procurement Department simply files the preliminary work order form and also files the Sales Request (order).
  5. Since the raw materials are available, the Manufacturing Department can now go ahead and create a complete work order. The preliminary work order is retrieved from the file cabinet. This is used as input to the computer program: Final work order scheduling. There are two outputs to this program: a printed final work order document and an update to the Current Production Plan file. The printed work order document is filed in the “To-do” file by order date.

ANS:

PTS: 1 REF: 188-189

ESSAY

  1. What is value analysis? How can the concept be expanded?

ANS:

The simple technique of value analysis can also be used to generate process-improvement ideas. In value analysis, each activity in the process is analyzed for the value it adds to the product or service. The value added is determined from the perspective of the customer. Activities can add:

Real value:Value for which customer is willing to pay.

Business value:Value that helps the company run its business.

No value:An activity that should be eliminated.

Activities that cost more than their value added should be improved. The Fitter Snacker expense report process does not provide real value, because Fitter Snackers customers do not care whether sales employees receive prompt and accurate reimbursement of their business expenses. However, the expense report process does provide business value, and it should provide this value at a minimum cost. Evaluating the value of a business activity is not a hard science. Determining the value of a good or service is easy – it’s what someone is willing to pay for it. Applying this idea to a part of a business process is more challenging, because parts of a process can’t be sold on the open market. While a challenging task, evaluating each activity on the basis of value provided can highlight opportunities for improvement.

The value analysis concept can be expanded to look at both the time and cost of each process step. For each step in the current process, you would estimate the actual time and cost. Then you would estimate the value-added time and cost determining how much of the actual time is adding value and how much of the cost is worth paying for.

We will use a Fitter Snacker process to illustrate value analysis. The company’s mail expense report function could cost upwards of $50, including not just the cost of the envelope and postage, but also the time spent by the salesperson to mail the expense report. The value analysis includes elapsed time for mailing the expense report the length of time from when the salesperson mails the report until the sales manager receives it. This elapsed time should include the time it takes for the salesperson to find a mailbox, the time for the postal service to deliver the expense report to the company headquarters, plus the time it takes the company’s internal mail system to deliver the expense report to the sales manager.

PTS: 1 REF: 197

  1. In the Harrington book, Business Process Improvement, what questions should companies ask about their business processes to identify areas of improvement? Cite five of them.

ANS:

– Are there unnecessary checks and balances?

– Does the activity inspect or approve someone else’s work?

– Does it require more than one signature?

– Are multiple copies required?

– Are copies stored for no apparent reason?

– Are copies sent to people who do not need the information?

– Is there unnecessary written correspondence?

– Are there people or agencies involved that impede the effectiveness and efficiency of the process?

– Do existing organizational procedures regularly impede the efficient, effective, and timely performance of duties?

– Is someone approving something they already approved (for example, approving capital expenditures that were approved as part of a budget)?

– Is the same information being collected at more than one time or location?

– Are duplicate databases being maintained?

PTS: 1 REF: 198

  1. Why, and in what circumstances, are workflow tools useful?

ANS:

Most business processes are performed regularly, enabling employees responsible for the process to become efficient in the tasks involved in the process. For example, the sales order process is fundamental to a manufacturing business; the salespeople, sales order clerks, warehouse managers, accounts receivable clerks, and others are spending most of their day supporting the process. If the process is efficiently designed and managed and the employees are properly trained, workers will have enough repetition to become efficient in their daily tasks.

Many business processes, however, are performed sporadically. The effectiveness of these processes can be poor, especially when they cross functional boundaries. Many times the work falls through the cracks, not necessarily through negligence but due to a lack of repetition. For example, the process of establishing credit limits occurs occasionally, and requires coordination between Sales, which identifies new customers and gathers basic data (contact names, addresses, terms and conditions) and Accounts Receivable, which must evaluate the customers credit history to establish a credit limit. Unless the process of establishing a credit limit is managed properly, a new customers order may be blocked for an unacceptable length of time. For sporadic processes, a workflow tool can automate the process to ensure that the tasks are performed in a timely and correct manner.

PTS: 1 REF: 200

  1. Discuss the SAP system landscape for implementation. Why is it important to keep the systems separate?

ANS:

SAP recommends a system landscape for implementation like the one shown in Figure 7-18. In this system landscape, there are three completely separate SAP systems, designated as Development (DEV), Quality Assurance (QAS), and Production (PROD). The development (DEV) system is used to develop configuration settings for the system as well as special enhancements using ABAP code. These changes are automatically recorded in the transport directory, which is a special data file location on the DEV server. These changes are imported into the QAS system, where they are tested to make sure that they function properly. If any corrections are needed, they are made in the DEV system and transported to the QAS system. Once the configuration settings and ABAP programs pass testing in the QAS system, all settings, programs, and changes are transported to the PROD system, the system that the company uses to run its business processes.

The use of separate systems is important during the initial implementation of an SAP ERP system, and it is even more important after the Go Live phase. All software packages have occasional updates, and having systems available to test these updates before applying them to a production system can prevent problems. If a company wishes to use features of the SAP ERP system that were not included in the initial project implementation, then the company should have a process like the one SAP provides to manage changes to the production system in a controlled fashion.

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