Chapter 1 - Business Processes

Question 1

The lifecycle data management process supports..

Answer 1

• the design and development of products from the initial product idea stage through the discontinuation of the product

Question 2

The material planning process …

Answer 2

• uses historical data and sales forecasts to plan which materials will be procured and produced and in what quantities

Question 3

The inventory and warehouse managemewnt (IWM) process is used to.

Answer 3

..store and track materials

Question 4

Asset management and customer service processes are

Answer 4

used to maintain internal assetsand deliver after-sales customer service

Question 5

Financial accounting (FI) processes track…

Answer 5

• the financial impacts of process steps with the goal of meeting legal reporting requirements
• Tracks externalfor example IRS or SEC (securities and Exchange Commission)

Question 6

Management account or controlling (CO) processes track…

Answer 6

internal reporting to manage costs and revenues

Track internally … costs and revenues

Question 7

Procurement Process involves…

Answer 7

• all tasks involved in acquiring needed materials externally
• 5 steps completed in 3 functional areas

Question 8

What are the steps in the procurement process

Answer 8

1. warehouse recognizes a need and creates purchase requisition
2. purchasing department identifies suitable vendor and creates a purchase order
3. Vendor ships materials, which are received by warehouse
4. vendor sends invoice, which is received by the accounting department
5. Accounting department sends payment

Question 9

How may a procurement process by triggered? List 4

Answer 9

1. warehouse recognises low inventory levels
2. material planning process could indicate that the company needs to procure materials based on forecasted demand for products
3. The asset manager or customer serive dept may need a part to repair a machine or a product previously purchased
4. a customer order (fulfillment process) may need parts for manufacturing

Question 10

Production process acquires

Answer 10

needed materials internally

Question 11

How may a production process be triggered?

Answer 11

1. a customer order
2. material planning process

Question 12

List the steps in a prduction process triggered by the warehouse

Question 13

What is fulfillment concerned with?

Answer 13

Fulfillment is concerned with efficiently processing customer orders

Question 14

List the steps in the fulfillment process

Answer 14

1. Triggered by a customer purchase order received by the sales department
2. Sales validates the order and creates a sales order
3. wharehouse prepares and sends the shipment to the customer notifies accounting
4. accounting creates and sends an invoice
5. accounting receives payment

Question 15

What is the purpose of material planning?

Answer 15

to match of the supply of materials with the demand

(could be finished goods, semifinished goods such as wheel assemblies or raw materials such as tubes and tires etc)

Question 16

What is lead time?

Answer 16

the time between the placing the order and receiving the shipment

Question 17

Describe the influence that following processes have on material planning:

fulfillment,

procurement

production

IWM

Answer 17

fulfillment process provides sales data that is used to forecast demand of finished goods

procurement and production provide lead times and capacitites

IWM provides data on material availability

in turn, material planning will trigger procurement and production processes to ensure that demand is met and IWM processes to ensure that materials are stored until needed

Question 18

What process is concerned with the storage and movement of materials

Answer 18

Inventory and warehouse Management (IWM)

Question 19

organizations must constantly improve its products and create new and innovative products that reflect changes in customer tastes and preferences. Which process provides the necessary tools.

Answer 19

The lifecycle data management provides the tools to manage product design and improvement

Question 20

what process is concerned with the preventive and corrective maintenance of an organization’s equipment

Answer 20

Asset Management and Customer Service

Question 21

What is the name of the process that relates to all aspects of managing people?

Answer 21

Human Capital Management Process

Question 22

What are some of the processes within Human Capital management (HCM)

Answer 22

recruitment

hiriring

training

compenstation and benefits management

payroll administration

Question 23

Projects can be internal or external depending on the recipient of the final outcome. If you had a project to build a Formula One Car for an external customer, what other processes will integrate with the Project Management Process

Answer 23

Procurement for purchasing materials

production for making components

HCM for supervising people

fulfillment for selling to customers

accounting for keeping track of costs and revenues? pg 14

accounting to issue customer invoices

accounting, for the end of the project, will complete the settlement process to assign costs and revenues to the appropriate parties

Question 24

What process is to track for external reporting?

Answer 24

FI (Financial Accounting)

Question 25

What process is concerned with internal reporting?

Answer 25

Management accounting or controlling (CO)

Question 26

When did SAP introduce the first integrated, end-to-end enterprise system and what did they call it?

Answer 26

SAP R/3 in 1992

R stands for real time

Question 27

What does FI track and produce

Answer 27

External - legal and regulatory statements.

Profit and Loss (income statement)

balance sheet

Question 28

what are the 4 key financial processes that an organization analyses

Answer 28

1 general ledger

2 Accounts payable

3 accounts receivable

asset accounting

Question 29

what is the CO module concerned with?

Answer 29

tracking costs and revenues for internal reporting