Ch.1 Flashcards
The most common organizational structure you are likely to encounter
Functional structure
Workers complete their tasks in their functional silos without regard to the consequences for the other components in the process.
Silo effect
Systems that support end-to-end processes.
Are complex application software packages designed to support multiple functional areas of an organization and allow for comprehensive integration of organizational data.
enterprise systems (ES)
is a set of tasks or activities that produce desired outcomes.
business process
Three processes are directly related to creating and delivering products and services. They are buy, make, and sell. Organizations use specific terms to identify these processes.
procurement process (buy)
production process (make)
fulfillment process (sell)
refers to all of the activities involved in buying or acquiring the materials used by the organization, such as raw materials needed to make products. procurement process is concerned with obtaining needed materials externally (by buying them).
procurement process (buy)
involves the actual creation of the products within the organization concerned with acquiring needed materials internally
production process (make)
consists of all the steps involved in selling and delivering the products to the organization’s customers. ervice
fulfillment process (sell)
Closely related to buying, making, and selling are four processes used to design, plan, store, and service products. Once again, organizations use specific terms for these processes. .
- Lifecycle Data management process(design
- Material planning process (plan)
- Inventory and warehouse management (IWM) process (store)
- Asset management and customer service processes (service)
supports the design and development of products from the initial product idea stage through the discontinuation of the product.
lifecycle data management process (design)
uses historical data and sales forecasts to plan which materials will be procured and produced and in what quantities.
material planning process (plan)
is used to store and track the materials.
inventory and warehouse management (IWM) process (store)
are used to maintain Internal assets such as machinery and to deliver after-sales customer service such as repairs.
asset management and customer service processes (service)
Two support processes are related to people and projects.
- Human capital management (HCM) processes (people)
- Project management processes (projects)
focus on the people within the organization and include functions such as recruiting, hiring, training, and benefits management.
Human capital management (HCM) processes (people)
are used to plan and execute large projects such as the construction of a new factory or the production of complex products such as airplanes.
Project management processes (projects)
Last two processes, which track the financial impacts of processes.
- Financial accounting (FI) processes (track-external)
- Management accounting or controlling (CO) processes (track-internal)
processes (track-external) track the financial impacts of process steps with the goal of meeting legal reporting requirements
Financial accounting (FI)
processes (track-internal) focus on internal reporting to manage costs and revenues
Management accounting or controlling (CO)
encompasses all the products, components, parts, and so on that an organization uses.
material
is temporary in nature and is typically associated with large, complex activities, such as the construction of a factory or an aircraft.
project
Is concerned with tracking costs and revenues for internal reporting that is Intended to help management control costs and revenues and assess the profitability of various products and market segments.
management accounting, or controlling
Is the pioneer in enterprise systems. It was the first company to build a packaged enterprise system, which means that it designed a single piece of software that is used by many companies.
SAP (pronounced by saying each letter individually, like IBM or ABC)
