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Examination, October 2004 (Updated Scheme) S4: ENTERPRISE RESOURCE PLANNING AND BUSINESS PROCESS RE-ENGINEERING
Time: 3 Hours SECTION -A
1. Answer six questions:
Max. Marks: '75
4a) Mention the major modules in an ERP system. b) 'Define a business model. c) Mention at least five indirect benefits of an ERP implementation. 4) What do you mean by enablirl~ teci~nology ?
e) Define Business process re-engineering. f) Mention three 'R's of Re-engineering.
g) ~ e f i n comput&ised information system. e
h) Who are the 'Big 5' in the ERP market ? SECTION - I 3
Answerany four questions in this section: 2. Explain the steps of the Re-engineering process briefly to make it effective.
3. Describe the re-engineering proczss in a manufacturing organisation. How does it differ froin that of a service organisation ?
3. Mention the factors to be considered
when selecting an ERP package.
A. Explain the terms: Data Waehousing and Data Mining.
6. How is BPR connected to ERP ?
7. Explain the role of IT in BPR.
SECTION - C Answer any three questions:
-8. Explain SAP R/3 application rnoduie. How this system is considered as the world's most used standard business software for c1ier.t server computing ?
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9. Eiplajii the different phases of an ERP implementation life cycle with a sketch.
10. How buslness process re-engineering differs from business improvement ?
J 1. Explain the five step methodology to implement BPR. ,
12. What are the important steps to be taken before implementirig an ERP package ?
SECTION - D
( 113=13) ~
Failure in ERP system Implementation at General Motors Locomotive Group
Big Business units are still quite capable of failing badly when it'comes to implementing new ERP systems. With all .thebad publicity about spe.ctacular ERP implementation failures by big US companies over the past 10 years, one would think that today's IT departments and business units could develop and manage ERP implementation projects. So failure would not be an option. Many probably do. But others continue to take major hits. Take General Motors (GM) as example The Locomotive Group of GM's electron~otive division (GM-LGED) the World's largest builder of diesel-electric locomotives. GM-LGED encountered severe problems during a roll out of SAPAG's R/3 ERP applications in 2001 that its spare parts business virtually grounded to a halt, forcing GM to launch an emergency turnaround efforts 6 months after the software went live. Officials at GM-LGED said order backlogs and fulfillment cycle times still aren't at levels that fully meet customer demands, although business operations started to improve shortly after ths rescue effort begdn in July 2001.
The SAP softwzre had to be reconfigured, flashed and repopulated with clean data, said Director of after market sales and development at Illinois Electro mot0 cycle system. The $ 2 billion G M subsidiary hired a second consulting firm to help fix the ERP and supply chain management (SCM) systems after its first systems integrator completed the initial rollout. The GM unit, which makes locomotive, diesel engines and armoured vehicles such as tanks, also had the retrain and users and rema? all the business processes that were being. built into the new system. The LGED launched a SAP based ERP aild SCM system during 2001 in order to improve its financial reporting and its ability to forecast spare parts needs. The problems started when the LG went live with R/3 in Jil~iuary 2001. The plan was to make after market operations more efficient by replacing legacy mainframe systems with ERP system modules powered by Rl3 that could handle parts distribution, order entry procurement and financial reporting said to executive director of LG. As per him, the software was not contigured well enough to match internal business r\:ocesses and legacy mainframe data were not properly formatted for the new system. Executive Director said that there were rio problems with the R/3 software, but the applicaticli;~\vex not properly configured to meet G.M.s needs. As a result, the after markei de:,al-tknent could not accurately forecast demand or ensure that
it had to right mix,of parts inventories on hand. He also said "our business process were largely arrested by what happened. We spent a lot of money and expected to get something for it, and got something else instead. It was very disappointing". He declined to identify the first consulting firm that worked on the project, nor would discuss the process they used to originally configure and operate the system. The director and ED both decIined to disclose the cost of the project or the financial impact of the system problems. A spokesman at SAP America Inc, Pennsylvania declined to comment specifically on the situation at GM. 'They continue to be a productive customer at this point' and we continue to work with them' he said. The Director at Illinois said the materials supply and forecasting modules in he ERP system were specially troublesome. The way they yere configures did'nt reflect the conlplexity of the distribution processes that the I,(; uses to supply parts to customers in the U.S and other countries, he said. In addition some legacy data were not adequately reformatted to workwith the SAP applications. The LG brought in Chicago-based technology solutions Co. to help recoilfigure the ERP systems. Executive director said that although most after market operations have returned to normal, GM is looking for continued improvemmts from both IT and business process stand points. The LG is also outsourcing SAP related application-.report, end user training and follow on software implementation for the new ERP system to technology solutions. And despite the major start-up problems with their current ER system, GM still plans to install SAP'S EKP software in the LG's manufactuiing operations and other departments in the next few years.
1 ) G.M locomotive says the problem was not with the ERP software. Then what did cause the major failure of their ERP system ? Explain. 2. What major shortcaTriings in system implementation, conversion or project management practices do you recognise in this case ?
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3) What would you advise C:d-LG to do differently to avoid similar problems in their incoming ERP implementation ? Explain the reasons for your proposals.
IV Sem. M.B.A. ( D ~ ~ ) / Sem. (Eve.) Degree vI Examination, Jiily/August 2005 (Updated Scheme) (Paper - S4) MANAGEMENT Enterprise Resource Plan~ing and Business Process Reengineering
Time: 3 Hours SECTION -A 1. Answer any six questions: a) Objectives of SCM.
b) Describe Pre-ERP scenario.
Max. Marks: 75
c) Order management.
d) List out various modules of ERP.
e) Need for re-engineering.
f) Data mining.
g) Role of IT in ERP. h) Supplier performance.
SECTION - B Answer any four questions:
(4 x 5=20)
2. Discuss the role of SCM in integrating various functions of an organisation.
3. Explain the role of ERP in a manufacturing perspective.
4. What is ERP implementation cycle ? Explain .
5. Discuss the role of various players in the success of ERP implementation.
6. Describe the finance function's role in ERP system.
7. What is BPR ? Discuss the methodology of implementing BPR.
SECTION - C Answer any three questions:
8. Discuss in detail various modules of SAP.
9. What is the role of SCM in successful implementation of SAP ? Discuss.
re la ti^ive
advantages and disadvantages.
11. Write an essay on various ERP markets you are aware of. 12. How change management can be effective through IT applications ? Explain. SECTION - D
13. Case Study (Compulsory)
Explain in detail, how do you interlink SCM activities of an organisation through IT in a global business organisation which is in the process of undertaking BPR. (Take your own examples.)
IV Semester M.B.A. (Day)NI Semester M.B.A. (Evening) Examination, July/August 2006 (Updated Scheme) MANAGEMENT S 4: Enterprise Resource Planning and Business Process Re-Engineering
Time : 3 Hours SECTION - A Answer any six questions: 1. A) Distinguish between BPR and TQM.
Max. Marks: 75
B) Distinguish between ERP and MIS.
C) What is a process ?
D) How is BPR different from value Engineering ?
E) Distinguish between quality and reliability.
F) Define competitive advantage.
G) Distinguish between validation and verification. . H) What are triggers ? I) What is a virtual corporation ? SECTION - B Answer any four questions:
2. Discuss some of the main reasons for the failure of ERP implementations.
3. What are the advantages and limitations of carrying out a BPR exercise before an ERP implementation ?
4. It is an essential anabler in BPR. Discuss with examples.
5. What are the characteristics of companies which are lively to benefit the most from RPR ? Illustrate with examples.
6. List the components of a typical ERP system for a large multi-product, multilocation organization.
7. Why should an organization invest in a ERP system ? What are the precautions to be taken before making an investment ?
SECTION Answer any three questions:
8. Who are the key players in a BPR exercise ? Explain their role with examples.
9. List and describe the different phases of the ERP implementation'life cycle. 10. Why is top management commitment considered critical to the success of initiatives like ERP and BPR ? Cite one successful example each for such a commitment (one for ERP and one for BPR).
11. How can an effective and efficient data management system lead to a sustainable competitive advantage for a company ? Illustrate with examples.
12. Describe the recurring themes encountered during BPR. Illustrate with examples.
SECTION - D
13. This Section is compulsory:
Reliance Industries Limited (RIL) is entering the retail sector in a big way over the next few years, the company plans to invest Rs. 30,000 crores in this sector. RIL has already opened a logistics hub and hopes to have hundreds of outlets across the length and breadth of the Country. The inventory to be carried could be 15000 - 20000 items in each outlet. Thousands of jobs are sought to be created. Answer the following questions: A) If you were the CIO of the retail arm of RIL, what kind of ERP system would you choose ? Justify your answer.
B) List, with reasons, five critical success factors for RIL's retail operations. C) Suppose the Government were to announce tomorrow that FDI without any restrictions would be allowed in retailing. If you were the CEO of RIL's retail operations, would you still invest as planned ? Why or why not ?
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IV Serrlester hlRA (Day and Evening)/ VI Semester MBA (Evening) Degree Examination, September/October 2003 MANAGEMENT S.6: Enterprise Resource Planning and ~ u s i b e s s Process Reengineering
Max. Marks: 50
SECTION - A
three. Each question carries 2 marks.
1 . Distinguish between a process and'a function.
1. Define Business I'rocess Reengineering.
WJhat 1s lie co~lcept underlying ERP ?
Ilclinc Enlerprise Resource Planning.
5. How is BPR different from Value Engineering ?
SECTION - B
.Ar!swer any three. Each question carries 5 marks.
Oulline t l ~ c steps involved in a BPR implementation. Critically analyse the differences between BPR and TQM.
3. A s s u n ~ i t ~ n organisation implements ERP effectively, what benefits are likely to accrue ? ag
9. Why should BPR precede ERP ? Justify your answer with an example.
10 "Despite ell the hype created, the fact remains that a significant number of ERP -
implementations fail". Explain the reasons for such failures. SECTION - C Answer any two. Each question carries 8 marks.
( 2 x 8 = 16)
Discuss, wit11 suitable examples, a few recurring themes you would come across
l'eople are critical to a successful redesign effort. Who are the key players and what are their maill roles ? cture of Lhe SAP-PJ3 system.
14. Discuss the different phases of an ERP implementation lifc cyc!e.
SECTION - D
15. Choose any company in the real world which has undertaken a Business Process Reengineering effort. With specific reference to that company, answer the fi~Llowing questions:
A) Why was BPR considered necessary ?
B) Who initiated the effort ?
C) How was the irnplemenlation carried out ? Compare Ihe actual with the ideal srcps in
D) What were the results ? Did the company achievc quantum leaps in perfol-~nnncc ? Illustrate with facts.
E) What are the lessons that one can lcarn from ~ l l i exalnple ? s