Module 4: Intro to Business Processes Flashcards
What is an organization divided into?
Functions
Departments
What are functions?
They perform specialized tasks or activities
What are processes?
Processes cut across functions
What are enterprise systems used for?
They are used to support end-to-end processes across organization
What are the benefits of enterprise systems?
Break silo effect
Increased productivity/profitability
Support competitiveness
What are business processes?
They are a sequence of tasks or activities that produce desired outcomes
Processes are interrelated with each other
Processes may have sub-processes
Give the steps of a generic business process
- Trigger/create/request (depending on process)
- Authorize
- Plan
- Execute
- Money (accounting to complete transaction)
What is a functional organizational structure?
It is the most common organizational structure
What is the Silo Effect?
It is the focus on functional objectives without regard to process objectives
Optimizes functional goals vs process goals
Process execution requires communication and coordination among functions
What are the steps of a procurement process?
Warehouse: create purchase requisition
Purchasing: create and send purchase order
Warehouse: Receive materials
Accounting: receive invoice and send payment
What are the steps of a production process?
Warehouse: request production
Production: authorize production
Warehouse: issue raw materials
Production: create production
Warehouse: receive finished goods
What are the steps of a fulfillment process?
Sales: receive customer purchase order and create sales order
Warehouse: prepare shipment (pick and pack) and send shipment (ship)
Accounting: create and send invoice and receive payment
What are the steps of the management process?
Production: request maintenance, authorize maintenance, perform maintenance
Accounting: settlement
What are the steps of a customer service process?
Sales: Create service request and authorize service
Production: perform service
Accounting: settlement
What are the steps of a project management process?
Trigger
Planning
Budgeting
Execution
Settlement
Outcomes
