Exam 1 Flashcards

1
Q

What is a functional structure? Pros and Cons?

A

Divided into functions, departments, each of which is responsible for a set of closely related activities.
Pros - Same tools, language
Cons- Info does not pass well, no collaboration

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2
Q

What is the Silo Effect?

A

Focusing on functional objectives without regard to process objectives or “Big Picture”

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3
Q

What does it mean when a process execution requires to “think sideways”?

A

view business across functional boundaries and focus on the end-to-end nature of the process and intended outcomes

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4
Q

What are Enterprise Systems?

A

Support end-to-end processes, by removing barriers to sharing information between functional areas and managing processes holistically.

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5
Q

IT Systems _______ & _______ business processes

A

integrate & automate

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6
Q

What are business processes?

A

Sequence of tasks or activities that produce desired outcomes

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7
Q

What are the key processes for supply chain?

A

Procurement (Buy)
Production (Make)
Fulfillment (Sell)

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8
Q

Processes are _______ with other processes, and may have _________.

A

Interrelated, Sub-processes

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9
Q

What are three triggers for Procurement?

A

Requisition, Transaction, Material Requirement

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10
Q

What are the systems views of business Processes that produce the output?

A

Constraints (policies, rules)
Input (material)
Resources (labor, machine)

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11
Q

Acquiring needed materials externally

A

Procurement (buy)

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12
Q

Acquiring needed materials internally

A

Production (make)

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13
Q

Efficiently processing customer orders

A

Fulfillment (sell)

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14
Q

What is material planning? (plan)

A

match the supply of material with demand for all the products, components, and so on that the organization uses.

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15
Q

Purchased materials from external source, not sold, used in production.
Acronym?

A

Raw Materials (ROH)

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16
Q

“Halfway complete” - produced in-house using other materials. used in production of finished goods

A

Semifinished Goods (HALB)

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17
Q

Created by the production process from other materials, such as raw materials and semifinished goods.

A

Finished Goods (FERT)

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18
Q

What is Inventory and Warehouse Management? (store)

A

Storage and Movement of material so that they can be quickly and easily located when needed

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19
Q

What is Asset Management? (service)
______ maintenance performed periodically.
______ maintenance done as needed.
______ depreciation.

A

Preventative
Corrective
Straight-line

–> equipment

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20
Q

What is Customer Service Process? (service)

A

Warranty and non-warranty repair and service of products

Many organizations consider this separately from asset management

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21
Q

What is Human Capital Management? (people) What are typical processes?

A

numerous processes related to all aspects of managing and developing the people in an organization?

  • Recruitment, Hiring, Training, Compensation and Benefits, Payroll Administration
  • integration
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22
Q

What is Project Management? (project) Internal example? External Example?

A

Temporary endeavor undertaken to create a unique product, service, or result. can be internal (plant, new product design, IT system) or external (engineer to order product, aircraft)

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23
Q

What is financial accounting? (track-______) What are the three documents? What are the four key processes?

A

External - tracking the financial impact of processes with the primary goal of meeting legal and regulatory reporting requirements.

  • P&L Statement, Balance Sheet, Cash Flow Statement
    1) General Ledger
    2) Accounts Receivable <-buy stuff
    4) Asset Accounting
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24
Q

What is management accounting? (track-______) What is it also known as? What does typical cost tracking cover?

A

Internal - tracking cost and revenue for internal reporting that is intended to help management control cost and revenues and assess the profitability of various products and market segments.
“Controlling”
-Material cost, labor cost, overhead.

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25
Q

Client this semester?
Company Code?
Plant?

A

Global Bicycle Incorporated (GBI)
GBI US, GBI Germany
Miami dist. center, San Diego dist. center, Dallas manufacturing plant
Heidelberg manufacturing plant, Hamburg dist. center

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26
Q

Purchased and resold to customers with no additional processing

A

Trading Goods (HAWA)

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27
Q

What is Supply Chain Management? Objective?

A

Coordination of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system
-to coordinate activities to maximize the supply chains competitive advantage and benefits to the ultimate consumer

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28
Q

For supply chain management, competition is no longer between companies, it is between _______.

A

supply chains

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29
Q

the objective of a process strategy is to build a production process that meets _______ requirements and _______ specifications within cost and other managerial constraints.

A

Customer, Product

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30
Q

Names:
Grandfather -
Father -
You -

A

Calculation Systems
Functional Systems
Integrated Systems, Cross-Functional

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31
Q

What is the world’s most popular Enterprise System?

A

SAP Enterprise Resource Planning (ERP)

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32
Q

Refers to the ways the user interacts with the software (people & process), the technical structure of the software (applications & data), and the ways the software physically managed on computer hardware (infrastructure)

A

The Architecture of an Enterprise System

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33
Q

Describe a Client-Server Architecture

A

Three components/layers:
Presentation Layer
Application Layer
Data Layer

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34
Q

Presentation Layer?

A

How you interact with the application (menus, typing, selecting)

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35
Q

Application Layer?

A

What the application allows you to do (create formulas, compose an essay)

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36
Q

Data Layer?

A

Where the application stores your work (hard drive, flash drive)

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37
Q

What did the shift to the three-tier client server architecture do?

A

Dramatically reduced the costs of acquiring, implementing, and using an ES while significantly increasing the scalability of the systems

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38
Q

What is scalability?

A

the ability of the hardware and software to support a greater number of users easily over time, typically at a decreasing cost per user

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39
Q

Describe a Service Oriented Architecture (SOA)

A

technologies that allow systems to connect with one another through standardized interfaces called Web services

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40
Q

Web Services?

A

used to expose ES functionally “Connect my system to another”
-standard interface - input and output

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41
Q

Composite Applications?

A

connect multiple applications via web services
-build new capabilities without changing the underlying applications
“build a business process by linking pre-built software components”

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42
Q

Processes interrelated with other processes

A

interdependent

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43
Q

Processes may have sub-processes

A

hierarchical

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44
Q

Processes pass data between one another

A

permeable

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45
Q

Core software used by companies to coordinate information in every area of business using common database and shared management reporting tools.

A

Enterprise Resource Planning (ERP) System

46
Q

4 Facts of ERP Systems:

1) focus primarily on _____ operations of an organization
2) integrate _____ and ____-_______ business processes
3) _____ is a fully integrated, global ERP system
4) Supports multiple ______ and ______.

A

1) internal
2) functional, cross-functional
3) SAP
4) languages, currencies

47
Q

SAP ERP Modules:

Financial Accounting -

A

(FI) - Track

48
Q

SAP ERP Modules:

Management Accounting/Controlling

A

(CO) - Track

49
Q

SAP ERP Modules:

Materials Management

A

(MM) - Buy

Purchase-to-Pay

50
Q

SAP ERP Modules:

Sales and Distribution

A

(SD) - Sell

Order-to-Cash

51
Q

SAP ERP Modules:

Production Planning

A

(PP) - Make

Demand-to-Supply

52
Q

SAP ERP Modules:
Inventory Management
Warehouse Management

A

(IM)

WM

53
Q

Enterprise Systems (4) Application Suite for Supplier, Company, and Customer:

A
  • Product Lifecycle Management (PLM)
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
  • Supplier Relationship Management (SRM)
54
Q

Administers the processes of research, design, and product management.

A

Product Lifecycle Management (PLM)

55
Q

Connects the company’s ERP system to those of its customers. Provide capabilities to manage marketing, sales, and customer service.

A

Customer Relationship Management (CRM)

56
Q

Connects the company to other companies that supply the materials needed to make products. Help companies plan for their production demand requirements and optimize complex transportation and logistic for materials.

A

Supply Chain Management (SCM)

57
Q

Contains functionality to manage the quotation and contracts processes. These systems act as extension to the procurement and material planning processes of ERP systems.

A

Supplier Relationship Management (SRM)

58
Q

Serve as a type of “Enterprise Operating System” for a companies ES.

SAPs?

A

Application Platforms

SAP NetWeaver

MS Word–>Windows,Mac OS
SAP ERP–>SAP NetWeaver

59
Q

What are the three types of data in Enterprise Systems?

A

Organizational data
Master Data
Transaction data

60
Q

Used to represent the logical and physical structure of an enterprise
- rarely changes
example?

A

Organizational Data
Client
Company Code
Plant

61
Q

Long-term data that typically represent entities associated with various processes
Typically include 3 views:

A

Master Data

  • General data (acorss company codes)
  • Financial data (CC specific)
  • Area-specific data (Sales. Purchasing, Plant)
62
Q

Categorize materials based on the way they are used in the firm’s operations

A

Material Types

63
Q

Related to material types and include materials with similar characteristics so they can be managed collectively.

Example?

A

Material Groups

Bicycles can be grouped on how they are used by customers “Touring” or “Off-Road”

64
Q

Material can be used differently by different organizational levels. Examples?

A

Different Company Codes
Different Plants
Different sales-related organizational elements

65
Q

Data generated during execution of process steps, requires organizational data, master data, situational data.

Example?

A

Transaction Data

ex) sales order creation

66
Q

Record of transactions can be seen through 4 documents:

A
Transaction documents (requisition, purchase order, invoice)
FI documents (debit,credit)
CO documents (margin,revenue)
Material documents (inventory on hand)
67
Q

_____ ______ identify tasks that are scheduled to be completed in a process
example?

A

Work Lists

-picking due list, billing due list, delivery due list

68
Q

____ _____ display lists of master data and documents and have selection parameters and scope-of-list parameters

A

Online Lists

69
Q

_______ Parameters determine which documents will be included in the list

A

Selection

70
Q

_______ Parameters define which data will be included in the selected documents

A

Scope-of-List

71
Q

_______ provides reporting based on aggregated data in information structures

A

Onlines Analytics Processing (OLAP)

72
Q

Each information structure in the OLAP environment is defined in terms of three features:

A
Period Definition (time)
Characteristics (grouping)
Key Figures (quantities)
73
Q

What are two key points regarding Reporting using SAP BW?

A

1) Offline from transactional system

2) Combines heterogeneous data

74
Q

Financial Accounting Process that records the financial impact of business process steps

A

General Ledger Accounting

75
Q

Internal divisions of an enterprise that are used as areas of responsibility to meet external reporting requirements that can be further divided into segments.

A

Business Areas

76
Q

What is a chart of accounts and what are the three types?

A

Ordered listing of accounts that comprise a company’s general ledger.

1) operative COA (required)
2) country specific COA (optional)
3) Group COA (optional)

77
Q

ordered listing of accounts that comprise a company’s general ledger that can be used by multiple company codes. Companies must use at least one.

A

Chart of Accounts

78
Q

Objects that can absorb costs

A

cost objects

79
Q

Account information can be displayed at three levels:

A

Balance
Line Item
Original FI document

80
Q

What are the three phases to fixed asset accounting?

A

Acquisition - Depreciation - Disposal

81
Q

What are three types of Tangible assets?

A

Fixed, Leased, Assets under construction

82
Q

What consists of the 3-way match for the basic procurement process?

A

Purchasing - Create and send purchase order
Warehouse - Receive materials
Accounting - Receive invoice

83
Q

places within a plant where materials are kept until they are needed

A

Storage location

84
Q

What are the three types of purchasing organizations?

A

Enterprise Level (Highly Centralized) - cross company code
Company Level - cross plant
Plant-Level - (Highly Decentralized) - plant specific

85
Q

individual or group of individuals responsible for purchasing a certain material or groups of materials. activities? serves as the main contact with the vendor. example) realtor

A

Purchase Group - planning, creating purchase requisitions, requesting quotations from vendors, and creating and monitoring purchase orders

can be internal or external

86
Q

hybrid-model, one centralized purchase organization for high-level decisions across the enterprise

A

Reference Purchasing Organization

87
Q

Identifies the GL accounts associated with the material and used when inventory stock is updated.

A

Valuation Class

88
Q

price control - total value of the materials divided by the quantity in stock

A

moving average

89
Q

time required to receive material into stock

A

Goods Receipt Processing Time

90
Q

specifies how much over delivery and under delivery the ordering party will accept

A

Delivery Tolerances

91
Q

defines which process steps and data are needed when a company purchases material or services.

A

Item Categories

92
Q

to obtain material from another plant in the same organization

A

stock transfer

93
Q

components provided sent to third party and finished product received from third party

A

subcontracting

94
Q

ship to third party; bill to us (drop shipment)

A

third party order

95
Q

pay vendor only when material is used in production or sold to customer

A

consignment

96
Q

Account Assignment Category Codes:

A
Asset (A)
Order (F)
Cost Center (K)
Sales Order (C)
Project (P)
97
Q

Process that results in a change in stock and always results in a creation of a material document

A

Goods Movement

98
Q

What are the 6 steps to Procurement Process?

A

1) Purchase Requisition
2) Source of Supply Determination
3) Purchase Order
4) Goods Receipt
5) Invoice Verification
6) Payment

99
Q

What are Oliver White’s 4 Principles?

A

Transparency
Quality Data
Accountability
Simulation of Reality

100
Q

formal communication to a vendor that represents a commitment to purchase the indicated materials under the stated terms.

A

purchase order

101
Q

Negotiates contracts and general conditions with vendors and responsible for strategic aspects of purchasing

A

purchase organization

102
Q

Purch. Org. Model that only one purchasing organization for the overall enterprise and all of the plants within the enterprise. Assigned to each plant, but not to the company code.

A

Enterprise Level (Highly Centralized) -cross company code

103
Q

Purch. Org. Model that one single purchasing organization is responsible for multiple plants in one company code. Assigned to both the plant and company code.

A

Company Level - cross plant

104
Q

Purch. Org. Model that each plant has its own purchasing organization.

A

Plant-Level (Highly decentralized) - specific

105
Q

price control - constant for a specific period of time

A

Standard price

quarterly, monthly

106
Q

What are some data needed to properly store materials?

A

environmental regulations
special containers
shelf life
special handling

107
Q

Vendor Master data is grouped into three segments:

A

General Data
Accounting Data
Purchasing Data

108
Q

intersection or combination of vendors and materials and used to default data when creating purchase orders

A

purchasing info records

one info record per combination of vendor and material

109
Q

What are three pricing conditions and where are they obtained fro?

A

Gross Price
Discounts and Surcharges
Freight/shipping

Contracts and agreements, and other sources

110
Q

What are three different stock types/statuses?

A
Unrestricted use
In quality inspection
Blocked stock (damaged, unusable, wrong delivery)
111
Q

a Goods movement _______ results in a creation of a material document

A

always