Test3

Question 1

Transaction

Answer 1

Recorded business event; needs to be recorded internally as well as externally (with date/time stamp), not optional due to the impact this information has on other operations of the organization and its stakeholder

Question 2

Swimlane Diagram

Answer 2

Who does what taks, flows from one to another based on decision. Good for reegnineering; reads left to right. You identify what comes of the activity and what is next handling the output until reach the end, final deliverable of the process. Can have alternate flows & parallel flows (binary process, requires a trigger)

Question 3

Reeingineering

Answer 3

Process redesign; radical redesign of business process, org structure, info systems and values of the organization to achieve a breakthrough in business results. Reduces delivery time, increase quality, revenues, enhance customer satisfaction

Question 4

Automation

Answer 4

The use of machines, control systems, and information technologies to optimize productivity in the production of goods & delivery of services - of Existing work processes.
A repetitive task - execution delegated to a machine

Question 5

4 necessary components of Automation/4 mental activities

Also used to explore whether the task CAN be automated from a technial viewpoint

Answer 5

1. Goal setting type of activity
2. Measuring/sensoring
3. Comparing
4. Deciding or choosing

Question 6

Advantages of Automation

Answer 6

Speed, accuracy, availability (convenience, productivity, long-term cost reduction (replacing humans), privacy

Question 7

Disadvantages of Automation

Answer 7

Limited application scope, inability to handle exceptions (smart = stupid sprinkers run in rain); lack of security, heavy upfront investment

Question 8

Business impact Tennessee Valley Authority reengineering project

Answer 8

IS rengineering project to improve efficiency & reduce power costs. Allowed them to purchase in volume and save $23.5 million (big impact!)

Question 9

Major accomplishment of Progressive Insurance

Answer 9

Immediate Response Claim Handling - worked out of vans rather than offices. Able to inspect vehicles within 9 hours of customer call before reengineering they were closer to the industry standar of 7-10 business days. Growth of 1.3 billion in 1991 to $9.5 billion in 202

Question 10

Essential difference between Ford and Maza A/P system

Answer 10

Ford had A/P dept of >500 people vs. Mazda had 5 people. Ford did not have an expert computer system capable of rationalizing processes - did not have automated process of finding mismatches. Mazda eliminated mismatches from occurring in the first place. don’t send POs; entered into DB and match at time of receiving.

Question 11

What should be explored regarding the type of function to be automated?

Answer 11

Automated input (caller ID, biometrics, webcam); Automated processing, automated outpute (audio output, biometrics)

Question 12

Explore whether a task SHOULD be automated from an Economic standpoint…

Answer 12

Manual: Fixed costs are low; variable costs are very hight (payroll) vs.
Automated: Fixed costs are high (software, hardware, training); variable costs are low(?): maintenance, upgrades

Question 13

Payback Period calculation

Answer 13

Fixed costs / (cost savings or revenue enhancements)/time period

Question 14

Explore whether a task SHOULD be automated from a SOCIAL standpoint…

Answer 14

Are impacts on people acceptable? Amazon open 24/7

Question 15

Explore whether a task SHOULD be automated from an MARKETING standpoint…

Answer 15

Does automated have positive image associated with it? (not if luxury goods)

Question 16

Automation paradox

Answer 16

As automated systems become more reliable & efficient, the more likely it is human operators will mentally “switch off” and rely on automated systems. As automated systems become more complex, odds of accidents diminish, but severity of failure is amplified.

Understanding variables & understanding disruptions is paramount.

Question 17

Typical Components of TPS in business

Answer 17

Sales, Shipping, Billing, A/R, Production, Inventory, Purchasing, Receiving, A/P, Payroll

Interconnected cyclic systems with output of one system often serving as input to another

Question 18

Control Data

Answer 18

Data used for reporting/monitoring/improving the operations (Managerial Relevance)

Question 19

Transaction data

Answer 19

Data used for running the operation (Operational Relevance)

Question 20

Ripple Effect

Answer 20

Data traveling to other departments where needed - due to interdependec - what happens in one tends to impact other subsystems.

Question 21

Documents

Answer 21

External proof of a transaction

Question 22

Is a query a transaction?

Answer 22

If the query itself is meant to be tracked. When customers inquire on availability of an item it would usually be a read/access operation. However, mgmt may realize that they are a way of tracking demand.

Question 23

TPS Characteristics

Answer 23

Large amounts of input/out
Large number of users
Huge storage requirements
Low computational complexity
Fast input/output, process capabilities
High degree of concern - security
High degree of concern - reliability/fault tolerance

Question 24

Can a system be designed to meet first operational needs then try to meet managerial needs?

Answer 24

No!

TPS feeds management reporting systems about the effectivness & efficiency of the operations

Question 25

What is the strategic significance of TPS?

Answer 25

Its direct correlation with customer satisfaction (product or service and process involved in acquiring).Customers most often interact with the TPS function of the organization - often focus is in the wrong area (higher levels)

Question 26

ERP

Answer 26

Enterprise Resource Planning
Modular, integrated software application - spans all organizational functions and relies on ONE core database
Goal: integration of depts/functions to a single computer system

Question 27

Software Concrete

Answer 27

Limitation of ERP is it is software concrete - offers high adapability not typical in off-the shelf applications but comes from configuration tables that can only be used during the implementation process (like concrete, adaptable moldable, but difficult to modify once it sets)

Question 28

CRM

Answer 28

Customer Relationship Management
Puts customer at the center. CRM systems store all customer related information - relies on personal & transactional data to increase profitability. It is a strategic initiative

Question 29

SCM

Answer 29

Supply Chain Management
Combo art/science that goes into improving the way companies find raw materials to make products/services & deliver to customers
5 Components: Plan, source, make, deliver, return

Question 30

Harrah’s Use of CRM

Answer 30

Loyalty rewards card (opt-in); use CLV - customer lifetime value - determines present value of the likely future income stream generated by an individual purchaser - how to spend to keep them coming back

Question 31

Barclay’s Use of CRM

Answer 31

Rapid access to loan information at customer point of contact - customers satisfied with fast response.

Question 32

RFID

Answer 32

Radiofrequency identification ships in SCM - providing tools to enable integrated supply chain management. They provide lots of information - manuafactured, picked, packed, shipped. Ability to enable new processes & new applications