2.2-2 Categorizing Activities in an Organization

Question 1

TPS Activities

Answer 1

1. ROUTINE Operational:
   - Placing a PO
   - Recording a sale
2. ROUTINE Reporting:
   - Aged accounts receivable report
   - Quarterly financial statements

*Structured & Readily computerized; many of these activities are AUTOMATED

Question 2

MIS Activities

Answer 2

1. MONITORING:
   - Reviewing staff absence reports
   - Back-Ordered inventory lists
2. PLANNING:
   - Planning inventory levels
   - Preparing a budget
   - Evaluating returns on a capital investment

*Less structured, not routinely computerized

Question 3

DSS Activities

Answer 3

1. FINANCING:
   - Analyzing the return potential of capital projects
2. INVESTING:
   - Determining best investment vehicle for temp surplus cash

*Semi-structured, beyond the capabilities of an MIS

Question 4

ESS Activities

Answer 4

1. FINANCIAL FORECASTING:
   - Projecting 5-yr market potential
   - Economic trends
2. STRATEGIC PLANNING:
   - Identifying a niche market
   - Setting long term goals

*Unstructured, requiring information from external sources