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ERP interview questions

Enterprise Resource Planning is an integration tool used in large companies that have too many departments.
While preparing for ERP interview questions, a candidate must focus on technical proficiency. Most questions
will test their coding and project management skills. Answers for the ERP interview questions should be filled
with technical knowledge along with management. It is a multi-disciplinary platform that deals with
departments like a design, production, inventory, delivery, management, finance, logistics, and human
resources. The job also requires good team cooperation for working on the drawbacks and miscues.

Candidates must ensure to be clear with all the fundamentals to answer ERP interview questions easily.
Questions may be asked more about their previous work experiences and projects too. Candidates with good
fundamental knowledge and also having trained for ERP are mostly preferred. Companies will look for analysts
who are the most suitable for them, so candidates must know the essentials.

These common ERP interview questions will help them in their preparations.

Q1. What is ERP according to you?

ERP systems is a set of techniques that help to drive the fundamental business processes. It is a cross-functional
enterprise that is completely used for integrated business management and improving the efficiency of
companies. The optimum utilization of ERP in companies can be beneficial for planning, managing and
supervising. The areas where ERP is used are production, financial markets, accounting, sales, manufacturing
and services. So, ERP is a software tool that makes management simple for companies.

Q2. Tell about the important components of ERP.

There are six main components in ERP.

Transactional databases
Management portals
Human Resources
Supply chain management
Workflow management
Customization reports

Q3. Why do you think companies should opt for an ERP system?

An ERP system is capable of integrating every department and their functions under one computer. This forms a
platform for all departments to share information and communicate easily. All the departments in a company
including the HR, production, design, supply chain management and finance can be integrated into software that
is run by a single database.

Q4. What are the different types of ERP?

The popular types of ERP preferred by companies are SAP, Oracle Financials, Microsoft Dynamics, PeopleSoft,
BAAN, and JD Edwards. SAP is more successful than any other ERP because it has many advantages over all
of them. There can be drastic improvements made if ERP is installed and maintained in the right way.

Q5. What type of ERP systems are you familiar with?

Today, many organizations have designed a complex system that contains multiple ERPs. Some companies
develop their own system along with the available open system software. Thus, a candidate can answer this
question according to the requirement of the company's system requirement.

Q6. What is implementation in ERP and how was your previous experience in
implementing?

The implementation process is the primary purpose of ERP systems. This involves installing the software,
updating it with the financial data and then the users, processes are configured. After this, the users should
become familiar with all processes and the software. There is a systematic way of implementing ERP in a
company for effective utilization. Candidate can explain the objectives of how they implemented previously and
how helpful it happened to be for the company.

Q7. Tell about the possible steps in implementation.

Firstly, we must analyze the problem and define the objectives required. The infrastructure required for this
should be checked too. Then we must clearly define its scope for the future. According to the present condition,
we must evaluate the options in ERP for future improvement. This will identify the required ERP solution, so it
can be updated with important and necessary data. The users should check on the system now and then; they can
also customize it when required. Employees must be capable of using the right technology, knowledge of ERP
and training should be conducted for them. In the end, the implementation process ends with project
management and testing.

Q8. What are the variables in ERP?

The parameters of a query that are not filled with values are called variables. These will not be defined with a
value unless the query is inserted into workbooks. The types of variables in ERP are texts, characteristic
variables, user entry, formulas, replacement path and hierarchy nodes.

Q9. How knowing many functional areas can help you in the development of the
enterprise?

Knowing many functional areas can be beneficial because we can comprehend the drawbacks that each
department is facing currently. We can create a secured platform for all departments to coordinate and
communicate together. This helps us to rectify and recover major flaws for improving the enterprise.

Q10. What are the different functional areas that you are familiar with?

The major purpose of ERP is the integration of all departments of a company. Candidate can explain in which
functional area they worked previously. They can also explain the process of integrating two different
departments effectively using ERP. Also, explain how they managed to overcome errors and problems.

Q11. What is a data dictionary?

In ERP, the data dictionary is used to compile the internal structure of databases in its different iterations. This
is the primary component that guides all the users after ERP is declared in a company. We have to develop good
data dictionaries as it is helpful to everyone in the enterprise.

Q12. Why do you think ERP is the most effective with large enterprises?

ERP requires multiple server connections to integrate all the departments in a company. It requires large
hardware components and multiple workstations to set up ERP in an enterprise. The financial sector is also
included under ERP, which means it makes long accounting processes for large companies simpler. However,
many types of ERP software are available to meet the different company's requirement. Some of them are open
source ERP, small business ERP, generalist, and vertical ERPs.

Q13. Explain the new trends and improvements in ERP.

Mobile ERP is now available in the form of mobile apps on Apple, Windows and Android. Social ERP has
evolved with which we can connect the social media data of the company with the customized ERP systems.
There is a two-tier ERP that can be used for very large companies across countries. The first tier is designed for
the main corporate office while the second tier is for the subsidiary level. These are some of the new trends that
ERP is witnessing right now.
Q14. How you develop your own customized transaction software?

When the implementation of ERP is stable in a company, we can track every detail about the inventory in all
departments. A customized transaction software can help users to make real-time inventory easily. So
candidates who have developed one become more preferable. You can explain briefly of how and why you
developed a customized transaction software.

Q15. What protocol do most ERP systems use?

Most ERP systems or programs use TCP/IP protocol for communication with the clients. This protocol is
considered safe and quick because it sends information in packets and then reassembles it to the user.

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