ERP Practices Interview Questions

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Jan 14 • Resources • 34826 Views • 15 Comments on ERP Practices Interview Questions

Enterprises Resource Planning (ERP) is a cross functional enterprise system that is driven by an software module that supports the basic business processes of company. This is one of the most vital subject that is asked in the Interview. We have collected a number of question with answers that will surely help you in your preparation. All the Best !!

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:-
1. Facilitate the flow of information between all business functions inside the boundary of organization.
2. It manages the connections to outside stakeholders

Implementation steps for ERP

Features 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:-
1. An integrated system that operates in real time.
2. A common database, which supports all applications.
3. A consistent look and feel throughout each module.

ERP-Best Practices

Best Practices of ERP

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:-

Ques 5. What are the functional areas of ERP ?
Answer 5. Following are the functional areas of ERP:-
1. Financial Accounting.
2. Management Accounting.
3. Human Resources.
4. Supply chain management.
5. Manufacturing.

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:
1. Sales forecasting, which allows inventory optimization.
2. Chronological history of every transaction.
3. Order and revenue tracking.
4. They bring legitimacy and transparency.
5. Real time information throughout the company.
6. Data standardization and accuracy.
7. Matching purchase order and costing.

Ques 8. What are the disadvantages of ERP ?
Answer 8. Following are the disadvantages of ERP:-
1. It is very expensive to purchase.
2. It is such a complex program that many companies cannot adjust it.
3. Project tracking and reporting deficiencies.
4. Accounting rules are difficult to understand.

Ques 9. Explain the evolution of ERP ?
Answer 9. The evolution process can be represented as:-
1. Inventory Management and control :- It is the process of maintaining the appropriate level of stock.
2. Material Requirement Planning :- It utilizes software application for scheduling production processes.
3. Manufacturing Requirement Planning :- It utilizes software application for coordinating manufacturing processes.
4. Enterprise Resource Planning :- It uses multiple model for improving internal business process. You can also see this from the figure below:

Evolution for ERP

Evolution of ERP

Components of ERP

Components of ERP system

Ques 10. What are the components of ERP ?
Answer 10. Following are the components of ERP:-
1. Transactional Database.
2. Management Portal.
3. Human Resources.
4. Supply chain management.
5. Workflow management.
6. Customization Report

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15 Responses to ERP Practices Interview Questions

  1. Anonymous says:
  2. Anonymous says:
  3. Anonymous says:


  5. T S Kumthekar says:

    I want to know the ERP functional queries or questions asked during interview

  6. T S Kumthekar says:
  7. Anonymous says:
  8. Andrew Biwott says:

    Name some data-types that would be relevant to a project-based, renewable energy company like PowerGen.

  9. Rashmi Rani says:

    This article will give you a brief idea of one of the important software platform known as ERP. Almost every software company works on this and this can be a useful article to extract valuable information about it. It is better to have a glance on this if you are aspiring to be an ERP or a SAP consultant in a software company as to have a prior knowledge is not bad..

  10. Pallavi sinha says:

    Information present in this article looks impressive and in well organised manner. interested one can take reference from here

  11. Shaheen Khan says:

    some question related to enterprise resource planning is present here and topic is nicely covered & quite informative

  12. Shilpa Ranjan says:

    This article provide us the the detail of the concept of ERP which is also called as enterprise resource planning. GO through the article this can be helpful for one who wants to get the full concept of the topic..!!!!

  13. patlakshi says:

    The details here are so well written that it could be easily understandable. And for those who are prepairing it is very good opportunity make best use of it.

  14. Shilpa Ranjan says:

    This article explains about the ERP which is also called as enterprise resource planning. Go through this article this will provide you the introduction about ERP in very simple and plain english…!!!!! Very informative and can be understood easily !!!

  15. Puja Agarwal says:

    Explanation is quite good ans easy to understand…

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