Test Bank For Integrated Business Processes With ERP Systems 1st Edition by Simha R. Magal | Complete Solution | Guide A+.
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Course
Integrated Business Processes
Institution
Integrated Business Processes
Test Bank For Integrated Business Processes With ERP Systems 1st Edition by Simha R. Magal | Complete Solution | Guide A+.Test Bank For Integrated Business Processes With ERP Systems 1st Edition by Simha R. Magal | Complete Solution | Guide A+.Test Bank For Integrated Business Processes With ERP Sy...
After completing this chapter you will be able to:
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1. Define the functional organizational structure, and explain why this structure creates problems
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for modern businesses
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2. Describe key business processes in an organization ia ia ia ia ia ia
3. Identify the main integration points between and among processes
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4. Understand the cross-functional nature of processes and their relationship to organizational
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areas
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5. Adopt and apply an integrated perspective to business processes
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6. Describe GBI’s organizational structure ia ia ia
7. Explain how the SAP system promotes an integrated approach to business processes
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Chapter Outline and Teaching Suggestions
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1. The Functional Organizational Structure
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a. The Silo Effect ia ia
b. Enterprise Systems ia
Discuss how companies are organized, and explain that the functional structure is the most
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common organizational structure. You can use a university or company or a business school
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department that you are familiar with as an example. Point out that processes are cross-
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functional. Ask the question: Why is the functional structure so common? Figure 1-1 will
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assist you in explaining the cross-functional nature of business processes.
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Explain the silo effect and its negative implications for modern business organizations. You
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can give an example such as creating a sales order in sales and marketing with no integration
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or communication with inventory management or production.
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Point out that the nature of the functional organizational structure and the cross-functional
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nature of processes directly conflict with each other.
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Explain the benefits of an enterprise system (ES) (i.e., supports end-to-end processes,
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productivity, competitive edge, monitoring and changing of business processes, etc.).
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2. Business Processes ia
, a. Procurement - Buy ia ia
b. Production - Make ia ia
c. Fulfillment - Sell ia ia
d. Material Planning - Plan ia ia ia
e. Inventory and Warehouse Management - Store ia ia ia ia ia
f. Lifecycle Data Management - Design ia ia ia ia
g. Asset Management and Customer Service - Service
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h. Human Capital Management - People ia ia ia ia
i. Project Management - Projects ia ia ia
j. Financial Accounting - Track for Track for External Reporting ia ia ia ia ia ia ia ia
k. Management Accounting - Track for Internal Reporting ia ia ia ia ia ia
Define and explain a business process. Point out that organizations use many processes to
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achieve their objectives and they employ specific terms to identify the processes. Processes
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can be directly related or closely related to creating and delivering goods and services. Use
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Figure 1-2 to illustrate a process that is executed in response to a need (trigger). The process
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is carried out through a sequence of steps and results in an output. You can use an example
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such as ordering supplies.
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Processes can be supported by other processes and can have numerous sub-processes. Point
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out that communication and coordination of tasks are very important. Figure 1-3 can assist
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you in explaining this point. Ask students to indentify some other processes that they are
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familiar with.
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Describe and give examples of the business processes (A - K). Figures 1-4 through 1-10 will
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assist you.
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3. Global Bicycle, Incorporated (GBI)
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Explain that Global Bicycle, Incorporated (GBI) is a fictional company that is used to
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illustrate the important concepts, processes, and techniques discussed in the textbook.
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Figure 1-11 will assist you in explaining GBI's organizational structure.
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Call up the SAP University Alliance Community (UAC) website http://uac.sap.com, and
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demonstrate the functionality and services available for students. Also instruct students to
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read the GBI Backround Document on the UAC to understand GBI’s history, products and
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operations.
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4. How To Use This Book
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a. Chapter Structure ia
b. SAP Software and Certification ia ia ia
c. WileyPLUS
, Explain the four key sections in most of the process chapters. Provide a brief background on
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the origins of SAP and the problems it initially solved.
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Explain that most SAP consultants are not programmers and have mastered the material
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presented in this book.
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Explain the three levels of SAP Certification and the value added of becoming a SAP-certified
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consultant.
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Point out that the importance of the WileyPLUS online supplements and the value added to
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passing the SAP Certification exam. Reinforce the point that using this textbook and the
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ancillary materials can substitute for taking a formal TERP 10 course.
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Review questions ia
1. Question:
Describe the functional organizational structure. Why do you think this structure is so common?
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.
Answer:
The functional organization structure is divided into functions, or departments, each of which is
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responsible for a set of closely related activities. This type of organizational structure is widely
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used because it spreads the responsibility across an organization instead of locating it in one
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particular person or group. In addition, it enables people to specialize in terms of skills and
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knowledge.
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2. Question:
What is the silo effect? Why does it exist? How can an organization reduce or eliminate the
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silo effect?
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Answer:
The silo effect refers to an organizational structure in which workers complete their tasks in
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their functional “silos” without regard to the consequences for the other functions in the
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process. This situation exists because each department within a functional organization
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works independently and focuses on its objectives. This tendency can be reduced by thinking
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sideways or viewing the business across functional boundaries and focusing on the end-to-end
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nature of the process and its intended outcomes.
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3. Question:
What is a business processes? Why is a process view of organizations essential to becoming a
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successful manager?
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Answer:
A business process is a set of tasks or activities that produce desired outcomes. Every process
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is triggered by some event, such as receiving a customer order or recognizing the need to
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purchase something. A process view can liberate managers from the silo effect. Managers
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must
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