12th Commerce IT Chapter 6 Exercise – Enterprise Resource Planning (ERP) | Maharashtra Board (Free Solution)

12th Commerce IT Chapter 6 Exercise

Chapter 6 – Enterprise Resource Planning (ERP)

Q 1. Fill in the blanks

1) “An enterprise is a group of people and other resources working together for a common goal”.

2) Different types of resources in an enterprise are men, material, money and machine.

3) The financial module can collect financial data from various functional departments and generate valuable financial reports.

4) A Data Warehouse is a source of an organization’s electronically stored data.

Q 2. State True/False.

1) Planning helps to improve future performance of an organisation.
Answer: True

2) MIS is implemented by a company to handle its contact with its customers.
Answer: False

3) To run an ERP system, trained and experienced employees are needed.
Answer: True

4) Better decision from an enterprise will help them to go a step ahead of its competitors.
Answer: True

Q 3. Match the following.

A	B
1) Trained Staff	a) ERP Package
2) Information integrity	b) Problem in ERP Implementation
3) Odoo	c) ERP Technology
4) MIS	d) Benefits of ERP

1) – b) Problem in ERP Implementation
2) – d) Benefits of ERP
3) – a) ERP Package
4) – c) ERP Technology

Solution of other subjects
Solution of Chapters of IT
1 – 2 – 3 – 4 – 5 – 6

Free online lecture on the above topic – Click Here

Q 4. Answer in brief.

1) Give any four benefits of ERP system.

Answer: There are so many advantages on implementing an ERP system in an enterprise. Some of the major benefits are briefly explained

a) Improved resource utilization

An enterprise can plan and manage its resources effectively by installing ERP software. So the wastage or loss of all types of resources can be reduced, and improved resource utilization can be ensured.

b) Better customer satisfaction

Customer satisfaction means meeting maximum customers’ requirements for a product or service. Using an ERP system, a customer will get more attention and service of an enterprise without spending more money and time.

c) Provides accurate information

In today’s competitive world, an enterprise has to plan and manage the future cleverly. To achieve this an enterprise needs high quality, relevant, updated and accurate information.

d) Decision making capability

Accurate and relevant information given to decision-makers will help them to take better decisions for running a system more smoothly. The better decision from an enterprise will help them to go a step ahead of its competitors.

e) Increased flexibility

An ERP system allows organizations to be more flexible so that they can more easily adapt and capitalize on new business opportunities.

2) List down different modules of ERP system.

Answer:

a) Financial module

This module is the core of many ERP software packages. It can collect financial data from various functional departments and generate valuable financial reports. Financial reports include balance sheets, general ledger, trial balance, financial statements, etc. This module also includes financial accounting, investment management, enterprise controlling, and treasury.

b) Manufacturing module

The manufacturing module contains necessary business rules to manage the entire production process. This module of ERP enables an enterprise to combine technology and business processes to get integrated solutions. It also provides freedom to change manufacturing and planning methods as and when required.

c) Production planning module

This module is used for optimizing the utilization of available resources and helps the organization to plan their production. This module identifies the materials required, allocates optimal resources using data and sales forecasting with the sales data.

d) HR module

HR stands for Human Resource. HR module maintains an updated and complete employee database including personal information, salary details, attendance, performance, promotion, etc. of all employees in an enterprise.

e) Inventory control module

This module covers processes of maintaining the appropriate level of stock in the warehouse. It is responsible for identifying the inventory requirements and setting the target of the stock items required.

3) Describe any 2 problem areas in ERP implementation.

Answer: Some of the problems and limitations of using an ERP package in an enterprise are as follows

a) High cost

The cost of ERP software configuration and implementation is very high. The high price of the package, associated license fees and other charges are the main problems of ERP installation.

b) Requirement of additional trained staff

To run an ERP system, trained and experienced employees are to be appointed in the enterprise. The
correct selection of an ERP package alone cannot guarantee the success of an enterprise. In addition, the
contribution of skilled and trained persons in using ERP system is very important.

c) Operational and maintenance issues

Implementation of an ERP needs major changes in the current process of an enterprise. Sometimes, it will be difficult to adjust with these changes by employees and management of an enterprise, as it is human nature to resist changes.

d) Security Control

Implementation of an ERP needs to follow security measures on each and every stage. This includes access-controlled restrictions based on hierarchy in an organization. The system has to take care of unauthorized access at each level in an organisation.

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12th Commerce IT Textbook Solutions

Chapter Name	Solution Link
1) Advanced Web Designing	Click Here
2) Digital Marketing	Click Here
3) Computerised Accounting with GST	Click Here
4) E-Commerce and E-Governance	Click Here
5) Database Concepts using Libre Office Base	Click Here
6) Enterprise Resource Planning (ERP)	Click Here

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