Best ERP Practices Interview Questions

Ques 1.What is ERP?

Answer 1. ERP stands for Enterprise Resource Planning. It integrates internal and
external management information across an entire organization, including finance,
accounting, manufacturing, sales and services. In 1990 Group first employed the
acronym ERP

Ques 2.What are the features of ERP?

Answer 2. Following are the features of ERP

Facilitate the flow of information between all business functions inside the boundary of
organization

It manages the connections to outside stakeholders

Features of ERP

steps for implementation of ERP:ERP questions and answers for freshers engineers

Ques 3. What are the characteristics of ERP?

Answer 3. Following are the

characteristics of ERP

An integrated system that operates in real time

A common database, which supports all applications

A consistent look and feel throughout each module

Ques 4. What are the different levels of Best-ERP Practices?

Answer 4. Best practices are incorporated into most ERP systems which reduces risk by
71% when compared to other software implementation. Different levels of Best-ERP
Practices can be understood by the following diagram

ERP-Best Practices

Ques 5. What are the functional areas of ERP?

Answer 5. Following are the functional areas of ERP

Financial Accounting

Management Accounting

Human Resources

Supply chain management

Manufacturing

Functional Areas

Ques 6. List the main ERP system vendors?

Answer 6. Out of more than 100 ERP providers worldwide, SAP-AG,ORACLE,PEOPLE-
SOFT AND baan- collectively called the “Big Five” of ERP software vendors. They control
70% of the ERP market share

Following statistics show the contribution of ERP system vendors in the market

Ques 7. What are the advantages of ERP?

Answer 7. Following are the advantages of ERP

Sales forecasting, which allows inventory optimization

Chronological history of every transaction

Order and revenue tracking

They bring legitimacy and transparency

Real time information throughout the company

Data standardization and accuracy

 Matching purchase order and costing

Ques 8. What are the disadvantages of ERP?

Answer 8. Following are the disadvantages of ERP

It is very expensive to purchase

It is such a complex program that many companies cannot adjust it

Project tracking and reporting deficiencies

Accounting rules are difficult to understand

Ques 9. Explain the evolution of ERP ?

Answer 9. The evolution process can be represented as

Inventory Management and control :- It is the process of maintaining the appropriate

level of stock

Material Requirement Planning :- It utilizes software application for scheduling

production processes

Manufacturing Requirement Planning :- It utilizes software application for coordinating

manufacturing processes

Enterprise Resource Planning :- It uses multiple model for improving internal business
process

Evolution of ERP

Ques 10. What are the components of ERP?

Answer 10. Following are the components of ERP

Transactional Database

Management Portal

Human Resources

Supply chain management

Workflow management

Customizable Reporting
Components of ERP

This entry was posted in Resources and tagged Characteristics of ERP, Components Of
ERP, Enterprise Resource planning, ERP system vendors, Functional areas of ERP,
interview question and answers on ERP on January 14, 2013 by Peenal Desai

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