ch1

Question 1

cross-functional

Answer 1

work horizontally crosses vertical functional silos

Question 2

enterprise systems (ES)

Answer 2

support end-to-end processes. responsible for great gains in productivity. SAP is most popular globally.

Question 3

functional structure

Answer 3

each function responsible for RELATED ACTIVITIES

Question 4

8 typical functions

Answer 4

1 - purchasing
2 -operations
3 - warehouse
4-sales/marketing
5-research and development
6-finance and accounting
7-human resources
8-information systems

Question 5

silo effect

Answer 5

business functions become isolated from the rest of the company

Question 6

business process

Answer 6

set of tasks or activities that produce desired outcomes.

• all triggered by some event (like ordering online).
• w/o collaboration between specialists, will be ineffective

Question 7

procurement process

Answer 7

buying materials needed

Question 8

production process

Answer 8

actually make the product internally

Question 9

fulfillment process

Answer 9

selling and delivering your product

Question 10

lifecycle data management process

Answer 10

design of the product

Question 11

material planning process

Answer 11

plan materials/quantities when to order and produce. match supply and demand

Question 12

inventory and warehouse management (IWM) process

Answer 12

store and track the materials

Question 13

asset management and customer service process

Answer 13

repair internal assets and products sold

Question 14

project management process

Answer 14

plan and execute large products

Question 15

financial accounting (FI) process

Answer 15

track financial impacts of process steps for legal reporting

Question 16

mangement accounting (CO) process

Answer 16

internal financial reporting to manage profitability

Question 17

human capital management (HCM) process

Answer 17

recruiting, training, benefits management

Question 18

procurement process steps

Answer 18

1-create purcahse requistion
2-create and send order
3-receive materials
4-recieve invoice
5-send payment

Question 19

purchase requisition

Answer 19

purchase order REQUEST

Question 20

production process steps

Answer 20

1-request production
2-authorize production
3-issue raw materials
4-create product
5-recieve finished goods

Question 21

fulfillment process steps

Answer 21

1-recieve customer purchase order
2-create sales order
3-prepare shipment
4-send shipment
5-create and send invoice
6-recieve payment

Question 22

lead time

Answer 22

lag time between order placement and recieving shipment

Question 23

projects vs process

Answer 23

project are very large and short term

Question 24

accounting settlement

Answer 24

assign costs and revenues to activity, usually kinda unclear

Question 25

general ledger

Answer 25

records financial impacts of various process steps

Question 26

major types of costs

Answer 26

• materials cost
• labor costs
• overhead costs

Question 27

general frameworks to remember of processes

Answer 27

1-triggers
2-tasks
3-data
4-outcomes