chapter extension 8 functional processes, applications, and systems
TRANSCRIPT
Chapter Extension 8
Functional Processes, Applications, and
Systems
Q1 How do functional processes relate to functional applications and systems?
Q2 What are the functions of sales and marketing applications?
Q3 What are the functions of operations applications?
Q4 What are the functions of manufacturing applications?
Q5 What are the functions of human resources applications?
Q6 What are the functions of accounting applications?
Study Questions
CE11-2Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Functional processes
Processes that support a single organizational function• Accounts payable,
sales lead-tracking, customer support business processes
Functional application
Computer program that supports or automates major
activities in a functional process
Q1: How Do Functional Processes Relate to Functional Applications and Systems?
CE11-3Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Determine
requirements of
function
Evaluate functiona
l applications and select closest
fit
Implement
application in
context of
supported
functional process
Alter proces
s or software
Build remainin
g components of an informati
on system
Acquire and install hardware,
populate database, adapt
standard procedures, and
train staff
Creating Functional Information Systems
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•Model of “as-is” functional process•Create components •Evaluate functional applications and select one that provides closest fit
•Implement processes/application•Build remaining components of information system
Functional process
Organizations acquire functional application software and adapt it to support functional processes by creating functional information systems
Functional Applications and Business Process Management (BPM)
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Process: Reserving golf tee
times and tennis courts
Model process and
determine specific
requirements
Identify potential off-the-shelf
applications and select
Create default and
custom procedures for using software
Example of a Functional Application at Fox Lake: Reservation Application
CE11-6Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Acquire hardware, populate database,
modify procedures, train users
Q2: What Are the Functions of Sales and Marketing Applications?
CE11-7Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Find and transform prospects into customers and sell more product to existing customers
• Prospect generation• Send postal mailings and email• Web sites may be used to send
product information, white papers for contact information
• Maintains customer name, product interests, past purchases, history of contacts with customer
Lead-tracking
applications
Lead-generation application
s
Lead Generation and Lead Tracking Applications
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Form for Lead Tracking and Customer Management
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• Obtain additional sales from existing customers
• Maintain customer contact and order-history data
• Track customer credit status
Customer-management applications
• Compare past sales records with projections and sales estimates
• Assess desirability of product to different market segments
• Manage product through life-cycles
Product and brand
management applications
Customer-Management and Product and Brand Management Applications
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Manage finished-goods inventory and movement of goods to customer
Used by non- manufacturers, distributors, wholesalers, retailers
Principle operations applications
•Finished-goods inventory management•Order entry •Order management •Customer service
Q3: What Are the Functions of Operations Applications?
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Functions of Operations Applications
CE11-12Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
• Inventory applications: Support inventory control, management, and policy
• Manufacturing-planning applications
• Manufacturing-scheduling applications
• Manufacturing operations applications
Manufacturing
applications
Q4: What Are the Functions of Manufacturing Applications?
CE11-13Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
• Figure CE11-4
Manufacturing Information Systems
CE11-14Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
•Support inventory control, management, and policy
•Cover inventory control, track goods and materials into, out of, and between inventories
•Use UPC bar codes and RFID tags
Inventory applications
•Use past data to compute stocking levels and reorder levels, and reorder quantities according to inventory policy
•Computing inventory counts and losses
Inventory-management applications
Q4: What Are the Functions of Manufacturing Applications? (cont’d)
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•Large inventories to minimize operations disruptions and lost sales due to outage
•Increase sales via greater selection and availability
Inventories viewed as
assets
•Keep inventories small, eliminate if possible
•Just-in-time inventory policy (JIT)
Inventories viewed as liabilities
•Wal-Mart has large inventories in stores, but minimizes inventories in warehouses and distribution centers
Hybrid
Inventory Policy: Two Schools of Thought
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• Implement inventory philosophy• Find balance between inventory
cost and item availability • Compute ROI• Report effectiveness of current
inventory policy• Evaluate alternative policies by
performing what-if analyses
Inventory applications help to:
Inventory Policy: Two Schools of Thought (cont’d)
CE11-17Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
• List of materials that comprise subassemblies to be manufactured
Bill of materials (BOM)
• May be augmented to show labor and equipment requirements
Schedule equipment, people, and
facilities
Manufacturing-Planning Applications
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Bill of Materials Example
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Sample Manufacturing Plan
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• Demand pull products through manufacturing in response to signals from customers or other production processes. (Demand-side method, JIT)
Pull manufacturin
g process
• Analyze past sales levels, estimate future sales, create master production schedule. Produce and push into sales (Supply-side method).
Push manufacturin
g process
Combined push and pull
systems
Three Philosophies of Manufacturing
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• Company creates an MPS and plans manufacturing accordingly, but it uses kanban-like signals to modify schedule.
•Application that plans need for materials and inventories used in manufacturing process
Materials requirement
planning (MRP)
•MRP plus planning of materials, personnel, machinery
•Linkages with sales, marketing via MPS
•“what-if” analyses on variances
Manufacturing resource
planning (MRP II)
Manufacturing-Scheduling Applications
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Computer programs operate lathes, mills, and robots, and even entire production lines
• Operate production lines• Computer-aided manufacturing• Computer-aided design• Robotics
These run machines rather than support business processes
Manufacturing Operations
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• Recruitment• Compensation, pensions,
bonuses, and so on in liaison with Payroll
• Training and development • Assessment
HR Functions Support
Q5: What Are the Functions of Human Resources Applications?
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Functions of Human Resources Applications
CE11-25Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Cost-accounting─determine marginal costs and profitabilityAccounts receivable─includes receivables, payments, collectionsCash management─scheduling payments; planning use of cash
Financial reporting─produce financial statements
General ledgers─show assets and liabilities
Accounts payable─reconcile payments against purchasers
Budgeting─allocate and schedule revenues and expenses
Treasury applications─concern management and investment
Q6: What Are the Functions of Accounting Applications?
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Functions of Accounting Applications
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Active Review
CE11-28Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Q1 How do functional processes relate to functional applications and systems?
Q2 What are the functions of sales and marketing applications?
Q3 What are the functions of operations applications?
Q4 What are the functions of manufacturing applications?
Q5 What are the functions of human resources applications?
Q6 What are the functions of accounting applications?
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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall