Enterprise Resource Planning Revision

What are ERP systems used for?

ERP systems are software platforms used by companies to manage key aspects of business operations like inventory and expenses.

List three aspects managed by ERP systems.

Finance, human resources, manufacturing.

What is an advantage of real-time data sharing in ERP systems?

It increases communication between departments.

How do ERP systems improve chain efficiency?

They track stock levels and lead times, ensuring overproduction or material shortages don’t occur.

What is a major drawback of ERP systems?

They are expensive to implement and maintain.

Why is training employees a disadvantage when implementing ERP systems?

It could limit productivity until every staff member is familiar with the system.

What happens if one part of an ERP system fails?

The entire system can be compromised, causing the process to collapse and stop production.

What should companies weigh when implementing ERP systems?

Implementation costs and staff training against long term benefits.

What does ERP stand for?

Enterprise Resource Planning.

How does ERP systems aid in decision-making?

By providing cost tracking to help companies make informed decisions about pricing, investments, and budgeting.