Exam 1 Flashcards
What is a functional structure? Pros and Cons?
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
What is the Silo Effect?
Focusing on functional objectives without regard to process objectives or “Big Picture”
What does it mean when a process execution requires to “think sideways”?
view business across functional boundaries and focus on the end-to-end nature of the process and intended outcomes
What are Enterprise Systems?
Support end-to-end processes, by removing barriers to sharing information between functional areas and managing processes holistically.
IT Systems _______ & _______ business processes
integrate & automate
What are business processes?
Sequence of tasks or activities that produce desired outcomes
What are the key processes for supply chain?
Procurement (Buy)
Production (Make)
Fulfillment (Sell)
Processes are _______ with other processes, and may have _________.
Interrelated, Sub-processes
What are three triggers for Procurement?
Requisition, Transaction, Material Requirement
What are the systems views of business Processes that produce the output?
Constraints (policies, rules)
Input (material)
Resources (labor, machine)
Acquiring needed materials externally
Procurement (buy)
Acquiring needed materials internally
Production (make)
Efficiently processing customer orders
Fulfillment (sell)
What is material planning? (plan)
match the supply of material with demand for all the products, components, and so on that the organization uses.
Purchased materials from external source, not sold, used in production.
Acronym?
Raw Materials (ROH)
“Halfway complete” - produced in-house using other materials. used in production of finished goods
Semifinished Goods (HALB)
Created by the production process from other materials, such as raw materials and semifinished goods.
Finished Goods (FERT)
What is Inventory and Warehouse Management? (store)
Storage and Movement of material so that they can be quickly and easily located when needed
What is Asset Management? (service)
______ maintenance performed periodically.
______ maintenance done as needed.
______ depreciation.
Preventative
Corrective
Straight-line
–> equipment
What is Customer Service Process? (service)
Warranty and non-warranty repair and service of products
Many organizations consider this separately from asset management
What is Human Capital Management? (people) What are typical processes?
numerous processes related to all aspects of managing and developing the people in an organization?
- Recruitment, Hiring, Training, Compensation and Benefits, Payroll Administration
- integration
What is Project Management? (project) Internal example? External Example?
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)
What is financial accounting? (track-______) What are the three documents? What are the four key processes?
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
What is management accounting? (track-______) What is it also known as? What does typical cost tracking cover?
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.
Client this semester?
Company Code?
Plant?
Global Bicycle Incorporated (GBI)
GBI US, GBI Germany
Miami dist. center, San Diego dist. center, Dallas manufacturing plant
Heidelberg manufacturing plant, Hamburg dist. center
Purchased and resold to customers with no additional processing
Trading Goods (HAWA)
What is Supply Chain Management? Objective?
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
For supply chain management, competition is no longer between companies, it is between _______.
supply chains
the objective of a process strategy is to build a production process that meets _______ requirements and _______ specifications within cost and other managerial constraints.
Customer, Product
Names:
Grandfather -
Father -
You -
Calculation Systems
Functional Systems
Integrated Systems, Cross-Functional
What is the world’s most popular Enterprise System?
SAP Enterprise Resource Planning (ERP)
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)
The Architecture of an Enterprise System
Describe a Client-Server Architecture
Three components/layers:
Presentation Layer
Application Layer
Data Layer
Presentation Layer?
How you interact with the application (menus, typing, selecting)
Application Layer?
What the application allows you to do (create formulas, compose an essay)
Data Layer?
Where the application stores your work (hard drive, flash drive)
What did the shift to the three-tier client server architecture do?
Dramatically reduced the costs of acquiring, implementing, and using an ES while significantly increasing the scalability of the systems
What is scalability?
the ability of the hardware and software to support a greater number of users easily over time, typically at a decreasing cost per user
Describe a Service Oriented Architecture (SOA)
technologies that allow systems to connect with one another through standardized interfaces called Web services
Web Services?
used to expose ES functionally “Connect my system to another”
-standard interface - input and output
Composite Applications?
connect multiple applications via web services
-build new capabilities without changing the underlying applications
“build a business process by linking pre-built software components”
Processes interrelated with other processes
interdependent
Processes may have sub-processes
hierarchical
Processes pass data between one another
permeable
Core software used by companies to coordinate information in every area of business using common database and shared management reporting tools.
Enterprise Resource Planning (ERP) System
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 ______.
1) internal
2) functional, cross-functional
3) SAP
4) languages, currencies
SAP ERP Modules:
Financial Accounting -
(FI) - Track
SAP ERP Modules:
Management Accounting/Controlling
(CO) - Track
SAP ERP Modules:
Materials Management
(MM) - Buy
Purchase-to-Pay
SAP ERP Modules:
Sales and Distribution
(SD) - Sell
Order-to-Cash
SAP ERP Modules:
Production Planning
(PP) - Make
Demand-to-Supply
SAP ERP Modules:
Inventory Management
Warehouse Management
(IM)
WM
Enterprise Systems (4) Application Suite for Supplier, Company, and Customer:
- Product Lifecycle Management (PLM)
- Customer Relationship Management (CRM)
- Supply Chain Management (SCM)
- Supplier Relationship Management (SRM)
Administers the processes of research, design, and product management.
Product Lifecycle Management (PLM)
Connects the company’s ERP system to those of its customers. Provide capabilities to manage marketing, sales, and customer service.
Customer Relationship Management (CRM)
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.
Supply Chain Management (SCM)
Contains functionality to manage the quotation and contracts processes. These systems act as extension to the procurement and material planning processes of ERP systems.
Supplier Relationship Management (SRM)
Serve as a type of “Enterprise Operating System” for a companies ES.
SAPs?
Application Platforms
SAP NetWeaver
MS Word–>Windows,Mac OS
SAP ERP–>SAP NetWeaver
What are the three types of data in Enterprise Systems?
Organizational data
Master Data
Transaction data
Used to represent the logical and physical structure of an enterprise
- rarely changes
example?
Organizational Data
Client
Company Code
Plant
Long-term data that typically represent entities associated with various processes
Typically include 3 views:
Master Data
- General data (acorss company codes)
- Financial data (CC specific)
- Area-specific data (Sales. Purchasing, Plant)
Categorize materials based on the way they are used in the firm’s operations
Material Types
Related to material types and include materials with similar characteristics so they can be managed collectively.
Example?
Material Groups
Bicycles can be grouped on how they are used by customers “Touring” or “Off-Road”
Material can be used differently by different organizational levels. Examples?
Different Company Codes
Different Plants
Different sales-related organizational elements
Data generated during execution of process steps, requires organizational data, master data, situational data.
Example?
Transaction Data
ex) sales order creation
Record of transactions can be seen through 4 documents:
Transaction documents (requisition, purchase order, invoice) FI documents (debit,credit) CO documents (margin,revenue) Material documents (inventory on hand)
_____ ______ identify tasks that are scheduled to be completed in a process
example?
Work Lists
-picking due list, billing due list, delivery due list
____ _____ display lists of master data and documents and have selection parameters and scope-of-list parameters
Online Lists
_______ Parameters determine which documents will be included in the list
Selection
_______ Parameters define which data will be included in the selected documents
Scope-of-List
_______ provides reporting based on aggregated data in information structures
Onlines Analytics Processing (OLAP)
Each information structure in the OLAP environment is defined in terms of three features:
Period Definition (time) Characteristics (grouping) Key Figures (quantities)
What are two key points regarding Reporting using SAP BW?
1) Offline from transactional system
2) Combines heterogeneous data
Financial Accounting Process that records the financial impact of business process steps
General Ledger Accounting
Internal divisions of an enterprise that are used as areas of responsibility to meet external reporting requirements that can be further divided into segments.
Business Areas
What is a chart of accounts and what are the three types?
Ordered listing of accounts that comprise a company’s general ledger.
1) operative COA (required)
2) country specific COA (optional)
3) Group COA (optional)
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.
Chart of Accounts
Objects that can absorb costs
cost objects
Account information can be displayed at three levels:
Balance
Line Item
Original FI document
What are the three phases to fixed asset accounting?
Acquisition - Depreciation - Disposal
What are three types of Tangible assets?
Fixed, Leased, Assets under construction
What consists of the 3-way match for the basic procurement process?
Purchasing - Create and send purchase order
Warehouse - Receive materials
Accounting - Receive invoice
places within a plant where materials are kept until they are needed
Storage location
What are the three types of purchasing organizations?
Enterprise Level (Highly Centralized) - cross company code
Company Level - cross plant
Plant-Level - (Highly Decentralized) - plant specific
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
Purchase Group - planning, creating purchase requisitions, requesting quotations from vendors, and creating and monitoring purchase orders
can be internal or external
hybrid-model, one centralized purchase organization for high-level decisions across the enterprise
Reference Purchasing Organization
Identifies the GL accounts associated with the material and used when inventory stock is updated.
Valuation Class
price control - total value of the materials divided by the quantity in stock
moving average
time required to receive material into stock
Goods Receipt Processing Time
specifies how much over delivery and under delivery the ordering party will accept
Delivery Tolerances
defines which process steps and data are needed when a company purchases material or services.
Item Categories
to obtain material from another plant in the same organization
stock transfer
components provided sent to third party and finished product received from third party
subcontracting
ship to third party; bill to us (drop shipment)
third party order
pay vendor only when material is used in production or sold to customer
consignment
Account Assignment Category Codes:
Asset (A) Order (F) Cost Center (K) Sales Order (C) Project (P)
Process that results in a change in stock and always results in a creation of a material document
Goods Movement
What are the 6 steps to Procurement Process?
1) Purchase Requisition
2) Source of Supply Determination
3) Purchase Order
4) Goods Receipt
5) Invoice Verification
6) Payment
What are Oliver White’s 4 Principles?
Transparency
Quality Data
Accountability
Simulation of Reality
formal communication to a vendor that represents a commitment to purchase the indicated materials under the stated terms.
purchase order
Negotiates contracts and general conditions with vendors and responsible for strategic aspects of purchasing
purchase organization
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.
Enterprise Level (Highly Centralized) -cross company code
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.
Company Level - cross plant
Purch. Org. Model that each plant has its own purchasing organization.
Plant-Level (Highly decentralized) - specific
price control - constant for a specific period of time
Standard price
quarterly, monthly
What are some data needed to properly store materials?
environmental regulations
special containers
shelf life
special handling
Vendor Master data is grouped into three segments:
General Data
Accounting Data
Purchasing Data
intersection or combination of vendors and materials and used to default data when creating purchase orders
purchasing info records
one info record per combination of vendor and material
What are three pricing conditions and where are they obtained fro?
Gross Price
Discounts and Surcharges
Freight/shipping
Contracts and agreements, and other sources
What are three different stock types/statuses?
Unrestricted use In quality inspection Blocked stock (damaged, unusable, wrong delivery)
a Goods movement _______ results in a creation of a material document
always
