MIS - Exam 2

Question 1

Scope of Processes

Answer 1

1. Operational -
   
   • Routine/Everyday, Commonplace
   • Use TPS (Transaction Processing System)
2. Managerial -
   
   • Concern with use of resources in pursuit of its objectives.
   • Use MIS (Management Information System)
3. Strategic -
   
   • Resolve issues with long-range impact on the organization.
   • Use ESS (Executive Support System)

Question 2

4 Characteristics of Process

Answer 2

1. Stability of Flow -
   
   • Structured
   • Dynamic
2. Scope of Process -
   
   • Operational
   • Managerial
   • Strategic
3. Objectives of Process -
   
   • Effectiveness
   • Efficiency
4. Value Chain -
   
   • See other slide for 5 Value Chain operations

Question 3

Value Chain Activities

Answer 3

1. Inbound Logistics Processes
2. Operational Processes
3. Outbound Logistic Processes
4. Sales & Marketing Processes
5. Customer Service

Supporting-

6. Human Resources Processes
7. Technology Processes
8. Infrastructure Processes

Question 4

5 Ways IS can be used to Improve Processes (ADCAP)

Answer 4

1. Improve Activity of a Process
2. Improve Data Flow among activities
3. Improve Control of Activities
4. Use Automation
5. Improve Procedures

Question 5

Difference between Effectiveness and Efficiency

Answer 5

Effectiveness - achieve organizational strategy.

Efficiency - create more output with same input or same output with less input.

Question 6

Business Process

Answer 6

A sequence of activities for accomplishing a function.

Question 7

Activity -

Answer 7

A task within a business process.

Question 8

Resource -

Answer 8

An item (people, computers, data, document collections) necessary to accomplish an activity.

Question 9

Actor -

Answer 9

Resources that are either human or computer hardware.

Question 10

Role -

Answer 10

A subset of activities in a business process that are performed by a particular actor.

Question 11

2 Ways Management can improve Processes -

Answer 11

1. Process Objectives
   
   • Classify objectives as effective or efficient to overcome ambiguity.
   • Make unstated objectives explicit.
   • Ensure objective are appropriate for the Strategy.
2. Process Measures -
   
   • Reasonable - Valid and compelling
   • Accurate - Exact and Precise
   • Consistent - Reliable

Question 12

6 Mgt Process Principles to Improve Processes (AUFBSO)

Answer 12

1. Improve Activity
2. Remove unproductive resources
3. Improve feedback
4. Remove bottlenecks
5. Redesign the Structure
6. Outsource the Activity

Question 13

Information Silo

Answer 13

The data needed for a process activity is unavailable because it is stored in an isolated, separated information system.

Question 14

What is ERP?

Answer 14

Enterprise Resource Planning- A suite of software, a database, and inherent processes for consolidating business operations into a single, consistent, information system.

Question 15

What is EAI?

Answer 15

Enterprise Application Integration - Software that enables information silos to communicate with each other and share data.

Question 16

5 Core Processes/Modules of an ERP?

Answer 16

1. Supply Chain Management (SCM)
2. Manufacturing
3. Customer Relationship Management (CRM)
4. HR Management
5. Accounting

Also
Operations/Logistics
Sales/Marketing

Question 17

3 Characteristics of an ERP -

Answer 17

1. Create and use a single database consolidating the data.
2. Provide industry leading integrated processes which increase speed & communication.
3. Centralize activities increasing efficiencies

Question 18

What is MRP and MRPII

Answer 18

Material Requirements Planning - used to manage inventory, production, and labor. Bill of materials.

MRPII - Added Financial tracking and; equipment/facility scheduling capabilities.

Question 19

3 Types of Data

Think T-Mobile

Answer 19

1. Transactional Data - Data related to events or transactions (qty, purchases, enrollment). 1 time occurrence.
2. Master Data (Reference Data) - Data used within the organization that doesn’t change with each transaction. Has persistence /reusable. Customer, vendor, employee.
3. Organizational Data - Data about the organization. Physical locations, names of Financial accounts, etc.

Question 20

3 Types of People Involved in an ERP

Answer 20

1. Users
2. IT (System) Analyst
3. Consultant

Question 21

Access Control

Answer 21

Specified limits on who can interact with an IS resource.

Question 22

5 Steps to Implementing an ERP-

Answer 22

1. Re-examine Strategy
2. Performs gap analysis.
3. Develops Processes.
   4 . Configure ERP software
4. Install - Write Procedures, testing , and training
5. Determine industry structure using porters tools.
6. What ERP System supports this strategy?
7. How does the ERP integrate with the supply chain?
8. Gap Analysis (expectations vs abilities)
9. Define objectives and measures.
10. Select Processes from the ERP vendor portfolio that aligns with your strategy/objectives.
11. Write procedures to use ERP to achieve/execute these processes.
12. Verify the ERP addresses and resolves issues and can achieve the objectives.

Question 23

5 Benefits of an ERP -

Answer 23

1. Real-time data sharing
2. Implementation of integrated industry best practices.
3. More data = dashboards = better management oversight
4. No information silos
5. Better supply chain integration = reduced costs and increased efficiencies

Question 24

ERP Implementation Challenges (SGCDC)

Answer 24

1. ERP Vendor selection
2. Gap analysis
3. Configuration
4. Data Issues
5. Cutover pressure - Old to New System

Question 25

People Challenges

Answer 25

Management - Premature - Oversells - Fails to anticipate cultural resistance Team - - Collaboration breaks down Individual- - Pain with no gain

Question 26

Culture

Answer 26

The day to day work habits and practices that workers take for granted.

Question 27

ERP Upgrade Challenge-(RJC-LTS)

Answer 27

1. Surprise and resistance 2. Justification 3. Version lock from customization 4. No long-term upgrade strategy

Question 28

ABAP

Answer 28

SAPs application language

Question 29

SAP Modules

Answer 29

``` Quality management Financial accounting Plant maintenance Human Resources Project Systems Production planning Controlling Sales & Distribution Materials Management Business intelligence ```

Question 30

Procurement

Answer 30

The process of obtaining goods and services such as raw materials parts, and services.

Question 31

3 Procurement Process Activities

Answer 31

1. Order 2. Receive 3. Pay

Question 32

3 Sales Process Activities

Answer 32

1. Sell 2. Ship 3. Payment

Question 33

SAP

Answer 33

A collection of interconnected & interdependent modules.

Question 34

Module

Answer 34

A distinct and logical grouping of processes.

Question 35

Purchase Order

Answer 35

A written document requesting delivery of a specified quantity of a product or service in return for payment.

Question 36

Types of Inventory

Answer 36

Raw Materials | Finished Goods

Question 37

3 Way Match

Answer 37

A match between the invoice, P.O., and goods receipt.

Question 38

SRM

Answer 38

Supplier Relationship Management - automates, simplifies, and accelerates a variety of supply chain processes by reducing procurement costs, build supplier relationships, better supplier options, and improved time to market.

Question 39

Returns Mgt Process

Answer 39

Manages returns of faulty products for businesses.

Question 40

SCM

Answer 40

Supply Chain Management- the design, planning, execution, and integration of all supply chain processes by using a collection of tools, techniques and management activities to help business develop integrated supply chains that support organizational strategy. Share real-time data Improve integration

Question 41

Bullwhip Effect

Answer 41

When companies order more supplies than are needed due to a sudden change in demand.

Question 42

Process Integration / Synergy

Answer 42

Occurs when processes are mutually supportive thus fulfilling an objective of other processes.

Question 43

Sales

Answer 43

An exchange of goods or services for money.

Question 44

3 Functions of CRM

Answer 44

1. Marketing 2. Sales 3. Customer service

Question 45

2 Types of CRM

Answer 45

1. Operational | 2. Analytical

Question 46

CRM

Answer 46

Customer Relationship Management - The administration of customer facing processes and managing all the interactions with customers.

Question 47

Posting

Answer 47

When legal ownership of the material has changed.

Question 48

Ecommerce

Answer 48

A multi firm process of buying and selling goods and services using internet technology.

Question 49

Difference between Merchant and Non-Merchant Companies

Answer 49

Merchant companies own the goods they sell. Non-Merchant companies do not own/possess the items they sell. - Auctions - Clearinghouses - Electronic Exchanges

Question 50

Disintermediation

Answer 50

The elimination of middle layers of distributors and suppliers. Cutting out the middle man.

Question 51

3 Ways Ecommerce Improve Market Efficiency

Answer 51

1. Disintermediation 2. Data Flow - between buyers and sellers. 3. Software - sharing of marketing data

Question 52

3 Challenges of Improving a Group of Processes

Answer 52

1. People are distracted from their most important process. 2. Process change constantly. 3. People must know objectives of many processes

Question 53

CRM vs SCM Processes

Answer 53

CRM - Sales - Service - Promotion SCM - Procurement - Demand Management - Returns Mgt

Question 54

Bottleneck

Answer 54

Occurs when a limited resource greatly reduces the output of an integrated series of activities or processes.

Question 55

Internal Control

Answer 55

Systematically limiting the actions and behaviors of employees, processes, and systems within the organization to safeguard assets and achieve objectives.

Question 56

Procurement Objectives

Answer 56

``` Save time Save money Find reliable high quality suppliers Relationship maintenance Supporting other processes (sales & operations) Efficiency ```