business processes 2 Flashcards
what are the 2 main functions of the HR management process?
- personnel function = hire, train and employ appropriately qualified employees
- payroll processing information systems = process payroll activities and reporting
what are the HR management activities/objectives?
- hiring, training and employing workers
- complying with regulatory reporting requirements
- making timely and accurate payments to employees
- reporting on payroll deductions
- maintaining employee earnings records
- providing an interface for personnel and payroll activities
what is involved in the hiring process?
match skills with needs of the organisation
what is involved in the training process?
- current skills
- desired skills
- training programme
- employee training records
what is involved in the assigning process?
organise and direct work
- identify activities
- identify employees
- matching
what is involved in the compensating process?
- methods of compensation
- methods of payment
- overtime
what is involved in the evaluating process?
- recognise and reward performance
- help with hiring, firing, promoting
- CPD
- identify training needs
what is involved in the terminating process?
- downsizing / rightsizing
- less frequent if rest is done properly!
what are the HRM inputs?
- personnel action forms (documents hiring or changes in employee status)
- time sheets (tracks hours worked)
- payroll deductions authorisations (authorisation to deduct certain amounts)
- tax withholding forms (authorisation to withhold appropriate tax amounts)
what are the HRM outputs?
- financial statement information
- employee listings (current employees, may contain employee-specific information)
- pay checks (final documents; subject to strict internal controls)
- cheque registers (used to make journal entries for salary and payroll tax expenses)
- payroll summaries (used to analyse expenses, including benefits)
- tax reports (government required information, income tax, social security tax, unemployment tax)
examples of fixed assets?
machines, warehouses, plants, etc.
what are the two main functions of fixed asset management process?
- fixed asset management function (long term assets and purchase, maintenance, valuation, disposal)
- enterprise asset management system (automate management of assets)
what are the fixed asset management activities?
what do we do when we have a new fixed asset?
- tracking purchases or fixed assets
- recording fixed asset maintenance
- allocating fixed asset costs (recording depreciation)
- valuing fixed assets
- tracking disposal of fixed assets
what are the inputs for fixed asset management?
- purchase requisition, and then purchase order (requires approval by management)
- supplier invoice (sent when asset is shipped)
- receiving report (identified receipt of fixed asset)
- construction work order (if asset is built by company)
- repair and maintenance form (notification to update expense and asset accounts)
- fixed asset change form ( transfer of fixed asset; locations, sale, trade, or retirement)
what are the outputs for fixed asset management?
- financial statement information
- fixed asset register (identification numbers, location)
- depreciation register (depreciation expense, accumulated depreciation)
- repair and maintenance reports (current period expenses, historical expenses)
- report on retired assets (disposal of fixed assets)
what is the process of the production process?
- begins with the use of raw materials
- ends with the transfer of finished goods to warehouse
what are the primary objectives of the production process?
- converting raw materials to finished goods efficiently
- collecting and reporting of information
what is involved in production process activities?
- track purchases
- control inventory
- control and coordinate the production process
- monitor and control manufacturing costs
- provide input for budgets
explain the concept of lean production
- eliminate waste throughout the organisation
- focus on reduction of non-value-added waste
how to eliminate waste?
just-in-time inventory system
what is a just-in-time inventory system?
- a make-to-order inventory system
- attempts to minimise inventory at all levels
dependent upon AIS:
- timely and accurate processing of information
- ensure continuous workflow by providing adequate raw materials
what is involved in product design?
meeting customer requirements while minimising production costs
what is involved in cost accounting?
- to provide information for planning, controlling, and evaluating the performance
- to provide accurate cost data about products (job order costing, process costing)
what is involved in planning and scheduling?
production plan efficient enough to meet existing orders and anticipate short-term demand without creating excess finished goods inventories
what is involved in production operations?
collect data about:
- raw materials used
- labour hours expensed
- machine operations performed costs incurred
what are the production process inputs?
- master production schedule (displays quantities of goods needed to meet sales demands)
- bill of materials (identified types and quantities of parts needed)
- material requisition form (request to acquire materials from storeroom or warehouse)
- production order
- job time card (identified the distribution of labour costs to specific jobs or production orders)
what is involved in the production order?
- authorises the manufacture of goods
- incorporates data from sales projections and inventory levels
- dictates the production schedule
what are the production process outputs?
- financial statement information (details the costs and pricing)
- materials price list (prices charged for raw materials)
- periodic usage report (provides information on use of raw materials)
- inventory reconciliation report (reconciles physical inventory with book balances)
- inventory status report (allows managers to monitor inventory levels)
- production cost report
- manufacturing status report (provides information about the status of various jobs)
what is included in the production cost report?
- details the actual costs for production items
- production operation, cost element, and/or separate jobs
what is the process for the finance process?
where the money is coming from and how it is spent?
- deals with how a company acquires and uses financial information
- cash, and other liquid assets, investments
how is finance acquired?
- sales of goods and services
- borrowing cash or selling ownership shares
what are finance process activities?
- effective cash management (lockbox systems and electronic funds transfer)
- cost of capital optimisation
- earn maximum return on investments
- project cash flows
explain the financing system
provide the capital resources an organisation needs to fund all aspects of its business
- have cash on hand when needed
- no idle cash
what are the main uses of cash?
- acquisition/payment
- HR process
what are the financing process inputs?
- remittance advices
- deposit slips
- bank statements
what are remittance advices?
accompanies a customer’s payment on account
what are deposit slips?
documents account deposits
what are bank statements?
used to reconcile company balance with bank balance
what are the financing process outputs?
- financial statement information
- cash budget
- investment reports
- debt and interest reports
- financial ratios
- financial planning model reports
