ERP Consulting Solutions Flashcards

Question 1

What is enterprise resource planning software, and why do organizations use it?

Accepted Answer

Enterprise resource planning software is an integrated suite of applications that manages core business processes in a single shared database. Organizations use it so that departments such as finance, sales, procurement, and operations work from the same up-to-date information. This reduces duplicate data entry, improves reporting accuracy, and supports coordinated decisions across the company.

Question 2

What is the general ledger, and why is it central to an ERP system?

Accepted Answer

The general ledger is the master record of financial transactions, grouped into accounts that feed the balance sheet and income statement. In an ERP system, modules such as accounts payable, inventory, and payroll post their transactions directly into it. This keeps financial reporting consistent and reduces manual reconciliation between departments.

Question 3

What is a business process, and how does an ERP system support it?

Accepted Answer

A business process is a set of linked activities that produces a specific result, such as order-to-cash or procure-to-pay. An ERP system supports it by encoding steps, approvals, and data records in configurable workflows. This makes each activity visible, repeatable, and auditable across the departments that depend on it.

Question 4

What are the core modules most ERP suites include, and what do they cover?

Accepted Answer

Most ERP suites include finance, human resources, supply chain management, manufacturing or production, sales and distribution, and procurement modules. Finance handles accounting and budgeting, human resources manages employee records and payroll, and supply chain covers inventory, warehousing, and logistics. Sales manages orders and customers, while procurement handles purchasing from suppliers.

Question 5

What does it mean that an ERP system uses a single shared database?

Accepted Answer

A single shared database means all modules store data in one central repository instead of separate files. When a sales order is entered, the inventory, accounting, and shipping records update from the same data, so no department works from its own copy. This reduces duplicate records and inconsistencies.

Question 6

What is integration in ERP, and why does it matter for legacy systems?

Accepted Answer

Integration connects an ERP system with other applications so data flows between them, such as a warehouse scanner or a bank feed. Legacy systems matter because older applications often hold valuable history and use formats the new platform does not share. Interfaces or middleware translate and move that data, which prevents manual copying and errors.

Question 7

What is the difference between an ERP system and a standalone accounting package?

Accepted Answer

An ERP system covers many business functions, such as finance, operations, human resources, and customer management, on one shared platform. A standalone accounting package focuses mainly on bookkeeping and financial reporting, and usually does not manage inventory, production, or workforce data.

Question 8

Why do some organizations choose cloud-based ERP instead of on-premises deployment?

Accepted Answer

Cloud-based ERP runs on a vendor's hosted infrastructure and is accessed through a web browser, while on-premises ERP runs on servers the organization owns and maintains. Organizations prefer the cloud because it reduces hardware costs, simplifies upgrades, and allows remote access. On-premises deployment may suit firms with strict control requirements or unusual customization needs.

Question 9

What are the main phases of a typical ERP implementation lifecycle?

Accepted Answer

A typical ERP lifecycle includes planning and business case, discovery or requirements analysis, design, build and configuration, testing, deployment or go-live, and post-go-live support. Phase names and boundaries vary between consulting firms and methodologies. The goal of each phase is to reduce risk before the next, more expensive commitment begins.

Question 10

What is the purpose of a project charter in an ERP engagement?

Accepted Answer

A project charter is a document that formally authorizes an ERP project and defines its objectives, scope, sponsor, budget range, and key constraints. It gives the consulting team and the client a shared reference point when disagreements arise about what is included. Signing it confirms executive support, which helps the project secure people and funding.

Question 11

What is a statement of work, and what should it contain?

Accepted Answer

A statement of work is a contract document that describes the services a consulting firm will deliver, the deliverables, timelines, responsibilities, and fees. It should state the project scope, list assumptions and client dependencies, and define how changes are requested and approved. Vague wording leads to later disputes, so precise language protects both parties.

Question 12

What is a project governance structure, and why do ERP projects need one?

Accepted Answer

Project governance is the set of roles, decision rights, and meeting routines that guide how a project is directed and controlled. ERP projects need one because they affect many departments and involve large budgets, so decisions must be made quickly and consistently. A typical structure includes a steering committee and a project manager.

Question 13

Why do consultants hold discovery workshops before designing the new ERP solution?

Accepted Answer

Discovery workshops bring together process owners and key users to document how work is performed today, including exceptions and workarounds. Consultants use these sessions to uncover requirements that written documents miss and to confirm priorities across departments. Insights gathered here shape the future design, so skipping discovery leads to rework and missed expectations.

Question 14

What is a project status report, and what should it communicate to stakeholders?

Accepted Answer

A project status report is a regular summary of progress against the plan, covering completed work, upcoming activities, risks, issues, and budget or schedule variances. It should communicate clearly whether the project is on track, what decisions are needed, and who owns each action.

Question 15

How does a consulting firm estimate the effort and cost of an ERP project?

Accepted Answer

Consultants estimate effort by breaking the scope into work packages, then assigning hours by role, such as functional consultant, technical developer, or project manager. They multiply these hours by rates, add allowances for travel, licenses, and contingency. Estimates are refined as discovery reveals more detail, so early figures are ranges rather than fixed quotes.

Question 16

What is a change request process, and why is it important in a consulting engagement?

Accepted Answer

A change request process is the formal method for proposing, assessing, approving, and tracking any modification to agreed scope, timeline, or budget. It is important because ERP projects often expand through small requests that add cost and delay. Each request should document its impact on schedule and fees before approval.

Question 17

What is a business requirement, and how does it differ from a system requirement?

Accepted Answer

A business requirement describes an outcome the organization needs, such as reducing invoice processing time or tracking landed costs. A system requirement describes how the software must behave to meet that need, such as automatically matching invoices to purchase orders. Together, they keep design and build aligned with what the business needs.

Question 18

What is fit-gap analysis, and what does each outcome mean?

Accepted Answer

Fit-gap analysis compares documented business requirements with the standard functionality of the chosen ERP software. A fit means the standard feature fully meets the need without change. A partial fit requires configuration or a workaround, and a gap means the software cannot meet the need without custom development or a process change.

Question 19

What is the difference between configuration and customization in an ERP system?

Accepted Answer

Configuration adjusts settings, parameters, and workflows that the vendor built into the standard product, such as tax codes, approval limits, or number formats. Customization changes or adds code, so the system behaves differently from its standard design. Customization usually increases upgrade effort and maintenance cost, so consultants prefer configuration when possible.

Question 20

Why is it important to involve end users in requirements gathering?

Accepted Answer

End users perform the daily tasks the system must support, so they can identify details that managers and executives may not see. Involving them early reduces the risk of building functions that look good on paper but slow real work. It also builds ownership, which improves adoption once the new system goes live.

Question 21

What is a requirements traceability matrix, and what problem does it solve?

Accepted Answer

A requirements traceability matrix is a table that links each business requirement to its design element, configuration item, test case, and training material. It solves the problem of requirements being lost or partly delivered as a project moves through its phases. With it, the team can confirm that every requirement is built and tested.

Question 22

How do you prioritize requirements that stakeholders all consider critical?

Accepted Answer

Consultants usually apply a structured method such as MoSCoW, which sorts requirements into must have, should have, could have, and won't have for this release. Each category is judged against regulatory needs, revenue impact, operational risk, and dependency on other features. Explicit trade-offs keep the list realistic.

Question 23

Why should consultants document the current state before designing the future state?

Accepted Answer

Documenting the current state shows how work actually flows, including delays, duplicate entry, and workarounds, so the design targets real problems. Without that baseline, teams may copy old inefficiencies into the new system or measure success against nothing. The baseline gives a reference point for measuring whether the implementation improved cycle times.

Question 24

What is a proof of concept in ERP selection, and when is it useful?

Accepted Answer

A proof of concept is a time-boxed test in which a candidate system handles a few realistic business scenarios using the client's sample data. It is useful when requirements are complex or when a vendor claims a capability that needs verification. Results should be judged against agreed criteria, not impressions from a demonstration.

Question 25

What is data migration in an ERP implementation, and why is it risky?

Accepted Answer

Data migration is the process of extracting, cleansing, transforming, and loading existing data from legacy systems into the new ERP. It is risky because legacy data is often incomplete, duplicated, or stored in inconsistent formats, and errors may not appear until transactions fail. Poor migration can corrupt balances and delay go-live.

Question 26

What is a data cleansing exercise, and when should it begin?

Accepted Answer

A data cleansing exercise identifies and corrects duplicate, outdated, incomplete, or inaccurate records before they are loaded into the new system. It should begin early because owners need time to review records and business rules must be confirmed. Starting late forces teams to make rushed decisions near cutover, when mistakes are costly to fix.

Question 27

What is a cutover plan, and what should it include?

Accepted Answer

A cutover plan is a sequence of steps for switching from legacy systems to the new ERP, including the final data load and system freeze. It should list responsibilities, dependencies, go or no-go criteria, validation checks, and a rollback option if critical problems appear. Rehearsing it before go-live reveals hidden timing issues.

Question 28

What are the main types of ERP testing, and what does each one check?

Accepted Answer

ERP testing includes unit, integration, user acceptance, and regression testing. Unit testing checks individual configurations or custom objects in isolation, while integration testing confirms data passes between modules and external systems. User acceptance testing lets business users confirm real scenarios work, and regression testing confirms new changes have not broken existing functions.

Question 29

Why is a parallel run useful before a system goes live?

Accepted Answer

A parallel run processes real transactions in both the legacy and new systems for a period, then compares the results. It is useful because discrepancies reveal configuration errors, migration gaps, or process misunderstandings before users depend on the new system. Its downside is extra effort, so teams usually limit it to high-risk areas.

Question 30

What are go-live options, and how do they differ in risk?

Accepted Answer

Common go-live approaches include big bang, where all locations switch at once, phased, where modules or sites move in stages, and pilot, where one group uses the system first. Big bang is faster and avoids running two systems, but it concentrates risk. Phased and pilot approaches limit exposure but extend the overall timeline.

Question 31

What is a defect triage meeting, and how should defects be prioritized?

Accepted Answer

A defect triage meeting reviews logged defects, confirms they can be reproduced, and assigns owners and target dates. Defects are prioritized by severity, which measures impact on operations, and by urgency, which measures how soon a fix is needed. Critical defects blocking core transactions such as billing or payroll take precedence over cosmetic issues.

Question 32

What is a sandbox environment, and why do ERP teams maintain several copies?

Accepted Answer

A sandbox is a separate, non-production copy of the ERP system used for configuration, development, and testing without affecting live data. Teams usually maintain several environments, such as development, test, training, and production, so changes can move through controlled stages. This separation reduces the chance that untested changes disrupt daily operations.

Question 33

What is change management in an ERP project, and why does it matter?

Accepted Answer

Change management is the structured approach to helping people adopt new processes, roles, and tools that an ERP project introduces. It matters because technically sound systems can fail when users resist, misunderstand, or bypass them. Effective change management addresses communication, training, leadership sponsorship, and feedback channels so people understand the reasons for change.

Question 34

Why do stakeholder analysis and sponsorship matter during ERP change?

Accepted Answer

Stakeholder analysis identifies who is affected by the project, how much influence each person holds, and how supportive they are likely to be. Executive sponsorship gives the project authority to resolve conflicts, allocate resources, and enforce new processes. Together, these practices help the team target communication and address resistance before it hardens into delay.

Question 35

What role does role-based training play in successful ERP adoption?

Accepted Answer

Role-based training teaches each user group only the transactions, screens, and reports that match their responsibilities. This reduces information overload and helps people practice realistic tasks before go-live. Training materials are usually built from the same scenarios used in testing, so users see familiar processes rather than generic menus.

Question 36

What is hypercare, and what typically happens during that period after go-live?

Accepted Answer

Hypercare is an intensive support period immediately after go-live, when extra specialists are available to resolve issues quickly. During this time, teams monitor transaction volumes, track incident tickets, prioritize fixes, and confirm that key processes such as month-end close run correctly. Ownership then transfers to the ongoing support team.

Question 37

How should an organization measure whether ERP adoption is succeeding after go-live?

Accepted Answer

Organizations should track both usage and outcome measures, such as login activity, transaction completion rates, data entry accuracy, and time to close. Usage shows whether people are working in the system, while outcomes show whether business results are improving. Surveys and support ticket trends add context about frustrations that metrics alone may not reveal.

Question 38

What is a post-implementation review, and when should it be held?

Accepted Answer

A post-implementation review is a structured assessment that compares the delivered system against the original objectives, budget, and timeline. It is held after users have settled into routine work and the system has run through a full business cycle. Lessons are documented and used to improve future projects and support plans.

Question 39

How can a consulting team support knowledge transfer to the client's internal staff?

Accepted Answer

Knowledge transfer happens through shadowing, paired work, documented configuration decisions, and training sessions led by consultants and then delivered by client staff. Teams plan the handover early, so internal employees take on administration tasks before consultants leave. Clear runbooks, support procedures, and a defined role for each internal owner reduce dependence on external experts.

Question 40

What should a support model define after go-live, and who should own it?

Accepted Answer

A support model defines service levels, escalation paths, response times, and the teams responsible for each tier. A first-line help desk handles routine questions, a functional support team resolves process and configuration issues, and technical specialists address defects and integration failures. Ownership rests with the client's internal service team, supported by the consulting firm.

ERP Consulting Solutions Flashcards

1ERP fundamentals and core modules

2Consulting lifecycle and methodology

3Requirements and fit-gap analysis

4Implementation, migration, and testing

5Change, training, and support

Learning Resources