Exam 1 Flashcards by Ali Fleming

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

How well did you know this?

Not at all

Perfectly

What is the Silo Effect?

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

How well did you know this?

Not at all

Perfectly

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

How well did you know this?

Not at all

Perfectly

What are Enterprise Systems?

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

How well did you know this?

Not at all

Perfectly

IT Systems _______ & _______ business processes

integrate & automate

How well did you know this?

Not at all

Perfectly

What are business processes?

Sequence of tasks or activities that produce desired outcomes

How well did you know this?

Not at all

Perfectly

What are the key processes for supply chain?

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

How well did you know this?

Not at all

Perfectly

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

Interrelated, Sub-processes

How well did you know this?

Not at all

Perfectly

What are three triggers for Procurement?

Requisition, Transaction, Material Requirement

How well did you know this?

Not at all

Perfectly

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

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

How well did you know this?

Not at all

Perfectly

Acquiring needed materials externally

Procurement (buy)

How well did you know this?

Not at all

Perfectly

Acquiring needed materials internally

Production (make)

How well did you know this?

Not at all

Perfectly

Efficiently processing customer orders

Fulfillment (sell)

How well did you know this?

Not at all

Perfectly

What is material planning? (plan)

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

How well did you know this?

Not at all

Perfectly

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

Raw Materials (ROH)

How well did you know this?

Not at all

Perfectly

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

Semifinished Goods (HALB)

How well did you know this?

Not at all

Perfectly

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

Finished Goods (FERT)

How well did you know this?

Not at all

Perfectly

What is Inventory and Warehouse Management? (store)

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

How well did you know this?

Not at all

Perfectly

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

Preventative
Corrective
Straight-line

–> equipment

How well did you know this?

Not at all

Perfectly

What is Customer Service Process? (service)

Warranty and non-warranty repair and service of products

Many organizations consider this separately from asset management

How well did you know this?

Not at all

Perfectly

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

How well did you know this?

Not at all

Perfectly

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)

How well did you know this?

Not at all

Perfectly

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

How well did you know this?

Not at all

Perfectly

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.

How well did you know this?

Not at all

Perfectly

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

Exam 1 Flashcards

(111 cards)