Term
| (MIS) - Management Information Systems |
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Definition
| Acquisition, design, implementation, and use of information systems in a business context |
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Term
| (IS) - Information System |
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Definition
| collects, processes, stores, analyzes and disseminates information for a specific purpose |
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Term
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Definition
*help people in business achieve the goals and objectives of that business
*help manage and execute business processes
*create innovative products, processes and/or services |
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Term
| Info. System Five Components |
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Definition
1)Hardware – desktops, laptops
2)Software – operating systems, application programs
3)Data – facts and figures entered into computers
4)People – users, technologists, IS support
5)Procedures – how the other four components are used |
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Term
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Definition
*Automate Business Processes
*Innovate |
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Term
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Definition
*Part of an org. that takes input and transforms them into outputs
*Sequence of tasks or activities that take a set of inputs and convert them into desired outputs e.g. Procurement, Fulfillment, Production |
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Term
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Definition
| (Input)->(Step 1)->(Step 2)->(Step3)->(Output) |
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Term
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Definition
1)Buy Parts
2)Make Skateboard
3)Sell skateboard |
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Term
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Definition
1) intro slide - IBM Smart Worker
2)Louisville Slugger intro to ERP-Procurement
3)Boston Scientific Video-Fulfillment
4)Louisville Slugger bat production process-Production |
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Term
| Typical Organizational Functions |
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Definition
*purchasing
*operations
*warehouse
*sales& marketing
*Research & Development
*finance/acnt
*HR
*Information technology |
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Term
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Definition
*communication between functions
1)paper based focus only on their "silo", loose sight of big
picture, many errors
2)supported by functional and enterprise systems |
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Term
| Process using Functional Systems |
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Definition
Sales->Warehouse->Accounting
^all of these use different info systems
*leads to delays |
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Term
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Definition
*Increased lead times->insufficient inventory and increased cycle times->takes long time to fill customer order
*Excess inventory
*Lack of visibility of processes=cant see status of others, how well process
is performing over time
*paperwork not readily available. b/c ppl view as silos |
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Term
| Process using Enterprise Systems |
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Definition
| *sales,warehouse,and acct all use the same info. system |
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Term
| Role of Enterprise System in Org's |
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Definition
1)Execute process
*Automation
2)Capture/store process data
*Auto and Manual capture
3)Monitor performance
*Instance level information (status)
*Process level information (aggregate) |
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Term
| Info Systems for Competitive Advantage |
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Definition
*Porter’s 5 Forces
*Competitive Strategy
*Value Chain
*Business Processes |
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Term
| How does organizational strategy determine information systems structure? |
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Definition
| Industry Structure > Competitive Strategy > Value Chains > Business Processes > Information Systems |
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Definition
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Term
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Definition
1)cost leader
2)product differentiation
*these can be industry wide or focused on industry segment |
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Term
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Definition
*Each competitive strategy requires a system whose
benefits>cost & provide VALUE to customer
*VALUE is amount of money customer is willing to spend on
product
*value-cost=margin
*value chain=network of value creating activities, divided into
primary & support activities |
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Term
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Definition
1)Production
2)Procurement
3)Fulfillment |
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Term
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Definition
Def:computer-based systems that capture, store, and retrieve
data associated with process activities.
1.Hardware
2.Software
3.Data
4.Procedures
5.People |
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Term
Porter's Five Forces
-Determine industry structure |
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Definition
1)Bargaining power of CUSTOMERS
2)Threat of SUBSTITUTIONS
3)Bargaining power of SUPPLIERS
4)Threat of new entrants-VENDORS
5)RIVALRY
*Intensity of each force determines the characteristics of the industry, how profitable it is, and how sustainable that profitability will be.
*An organization develops its competitive strategy based on how it intends to respond to these forces. |
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Term
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Definition
*value chain. each stage accumulates cost and adds value &
reaches total margin of the chain
1)inbound logistics:receive, store, raw material (inputs), value
is parts &time
2)operations/manufacturing:transforming inputs to final
product,
3)outbound logistics:collect, store & distribute product to
buyers
4)sales & marketing: inducing buyers to purchase products
and providing a means for them to do so
5)customer service: assisting customers use of the products
and thus maintaining & enhancing value of product |
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Term
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Definition
*Contribute indirectly to production, sale, and service of product
and contribute to MARGIN
1)procurement=raw materials (find vendors, contracts)
2)technology= R&D, new met hods, procedures
3)human resources= training, recruiting, compensating
4)infrastructure= general management, finance, accounting,
legal |
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Term
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Definition
Def=interactions across value activities.
*porters idea "business process design" organizations should
not improve existing functional systems, they should create
NEW more efficient processes that integrate activities |
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Term
| How do business processes create value? |
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Definition
margin: value-cost
*facilities are resources at rest (inventories and databases)
-INCREASE MARGIN:
*add value
*reduce costs |
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Term
| How does Competitive Strategy determine Business Processes and the Structure of Information Systems? |
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Definition
*if its best of breed, they try to ensure superb service ensure
that value added will exceed cost of service |
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Term
| Bottom line of Info Systems for Competitive Advantage |
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Definition
*organizations analyze their industry, then choose competitive
strategy
*create business process with value generating activities
*processes determine scope and requirements of information
system |
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Term
| Functional Information Systems |
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Definition
*Designed to support business processes for a single functional area e.g. sales information system
*Rich functionality
*Data integration is NOT built-in and may result in process delays, just-in-case inventory and lack of visibility
*Integration of functional information systems is extremely complex and expensive
*Best-of-breed strategy |
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Term
| Enterprise Information Systems |
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Definition
*Supports all functional areas providing support to all lines of businesses for all processes e.g. Customer Relationship Management
*Typically have less functionality than functional information systems
*Data integration built-in
*Integrated strategy |
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Term
| Types of Enterprise Systems |
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Definition
1)ERP-Enterprise Resource Planning, (SAP) was first, focus on internal
2)SCM-Supply Chain Management
3)SRM-Supplier Relationship Management
4)PLM-Product Life cycle Management
5)CRM-Customer Relationship Management |
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Term
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Definition
*Organizational
*Transaction
*Master |
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Term
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Definition
*structure of enterprise
*defines:
companies, geographical hierarchy, sales organizations,
purchasing organizations, physical facilities (plants,
warehouses), HR organizations
*data rarely changes
-beneficial to avoid duplication |
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Term
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Definition
*key entities that org interacts with
customers
-vendors
-suppliers
-employees
-products
*not connected to specific step, but are used repeatedly in
processes
*change occasionally |
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Term
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Definition
*day to day
*constant change
*who what when where how
*sales:customer, products, quantities, dates & times, locations,
*purchases: vendor, products, quantities
*production: materials, resources, etc. |
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Term
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Definition
*Sell-from-stock=High volume/low cost products, little choice for buyer, ex)ipod
*Configure-to-order=Low volume/high cost products, base model+options, ex)car
*SSB uses sell from stock |
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Term
| Why care about Procurement Process? |
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Definition
*maintain stable supply of materials
*to minimize stock-out costs=may pay higher acquisition cost to find goods elsewhere, loss of revenue, loss of opp. cost, loss of future customers
*ensure quality inputs to business
*streamline business operations
*create a B2B relationship-extended value chain |
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Term
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Definition
1)create purchase requisition
2)sourcing(identify supplier)
3)create purchase order
4)receive goods/shipment
5)post goods received
6)receive invoice from vendor
7)Post outgoing payment |
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Term
| Procurement Process (conceptual framework) |
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Definition
A)physical flow=what is the trigger, what are the steps, what is purpose of each step, who is involved in each step, how is comm. and coordination accomplished
*warehouse->purchasing->warehouse->acct
B)document flow
1)purchase requisition(internal)
2)purchase order(internal&external)
3)packing list(come w/the shipment)
4)goods receipt document(internal)
5)vendor invoice(from External vendor)
6)vendor payment
C)information flow
1)Instance-level information=status of purch. requisition/order, has req. been acted on/has a PO been created and sent
2)Process level Info= How well is process doing?, how much time does it take on avg-per material/per vendor, which vendors are prompt? |
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Term
| Role of ES in Procurement Process |
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Definition
*Execute the process=create purchase requisition, create purch. order, validate shipment against-packing list, post goods received, validate invoice against-goods receipt/purch. order, post outgoing payment
*Monitor the Procurement process=instance level info flow/process level info flow |
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Term
| Procurement Process Monitoring (information flow) |
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Definition
-Instance level=status info, ex)status of purch. requisition
-Process level=aggregate info, ex)how is the process doing? |
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Term
| Procurement Sub-Processes (steps) linkage w/Business Doc's |
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Definition
1)Create purch. requisition->purchase req.
2)Identify supplier->Purchase Order
3)Create purch. order->Purchase Order
4)Receive goods->Packing list/goods receipt
5)Post goods received->Goods receipt
6)Receive invoice->Vendor invoice
7)Post outgoing payment->vendor payment |
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Term
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Definition
Def:All the steps needed to fill a customer order
-Conceptual Framework
1)Physical Flow
2)Document Flow
3)Information Flow
-Key Concepts
1)Sell-from-stock
2)Configure to order
3)SSB uses sell from stock |
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Term
| Fulfillment Physical Flow |
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Definition
| sales->sales->warehouse->acct |
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Term
| Fulfillment Document Flow |
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Definition
1)Customer Inquiry
2)Quotation
3)Customer Purchase Order
4)Sales Order
5)Picking Document
6)Packing Document
7)Customer Invoice
8)Customer Payment |
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Term
| Fulfillment Information Flow |
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Definition
1)Instance-Level Information
*Status of a customer inquiry / order
*Has the order been acted on? Which step of the process is it in?
*Have goods been shipped? When? Where are the goods?
*If not, when can we expect shipment?
*If shipped, has an invoice been sent?
*Has payment been received?
2)Process-Level Information
*How well is the process doing?
*How much time does it take on average? Per material? Per customer?
*Which customers are prompt in payment? Who habitually pay late?
*What do we sell most? Which customer(s)? |
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Term
| Role of ES in Fulfillment Process |
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Definition
1)Execute the Process
*Create Quotation
*Create Sales Order
*Prepare Shipment
*Send Shipment
*Create and send Invoice
*Receive and process payment
2)Capture and Store Process Data
3)Monitor the Process
*Instance-Level Information Flow
*Process-Level Information Flow |
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Term
| Fulfillment Process Monitoring (Info. Flow) |
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Definition
-Instance level – status information
*Status of a customer order (order history)
-Process level – aggregate information
*How is the process doing? |
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Term
| Fulfillment Sub-Processes (steps) linkage w/Business Doc's |
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Definition
1)Receive customer inquiry->Customer Inquiry
2)Create sales quotation->Sales Quotation
3)Receive customer order->Customer Purch. Order
4)Create sales order->Sales Order
5)Prepare shipment->Picking List
6)Send the shipment->Packing List
7)Create/send invoice->Customer invoice
8)Post incoming payment->Customer Payment |
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Term
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Definition
Def:all the steps needed to assemble or manufacture a finished product
*Plan to produce
*Design to produce(customizable products)
*Engineer to produce(highly specialized)
-Conceptual Framework
1)Physical flow
2)Document flow
3)Information flow |
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Term
| Production Process Key Concepts |
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Definition
1)Production processes and strategies
*assembling vs. manufacturing
*discrete vs. process manufacturing
*make-to-stock vs. make-to-order
2)Master Data in the Production Process
*Bill of Material
*Work centers
*Product routing
3)SSB Characteristics
*Assemble from components
*Discrete
*Make to stock
*Material type is assembled product
*Standard skateboard |
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Term
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Definition
*Visual representation of a product and its components
*Result of the Product Design Process
*Used to create a bill of material |
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Term
| Bill of Material (BOM) Master Data |
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Definition
-Identifies components needed to make one unit of finished product
*BOM comes from the engineering drawing
-Muliple levels of BOM
*a component may have its own components
*ex)components of the standard truck assembly
-Used to support the production planing process
*Helps identify the quantities of raw material needed to produce a specified number of finished goods
*Used in product costing |
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Term
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Definition
-Define the steps or operations needed to produce the product
-For each operation
*Work center
*Time needed (for some unit of measure, such as “each”)
*Materials used |
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Term
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Definition
| Warehouse->Production->Warehouse->Production->Warehouse |
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Term
| Product Document and Data Flow |
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Definition
*Planned Order
*Production Order
*Material Withdrawal Slip
*Goods Receipt Document |
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Term
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Definition
*Instance level information
*Process level information |
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Term
| Role of ES in Production Process |
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Definition
-Execute the Process
*Request Production
*Authorize Production
*Issue Raw Materials to Production Order
*Create (Assemble) Products
*Receive Finished Goods into Storage
-Capture and Store Process Data
-Monitor the Process
*Instance-Level Information Flow
*Process-Level Information Flow |
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Term
| Product Sub-Processes (steps) linkage w/Business Doc's |
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Definition
1)Request Production->Planned Order
2)Authorize Production->Production Order/Material Withdrawal Slip
3)Issue Raw Materials->Material withdrawal slip
4)Create Product->Production Order
5)Received Finished Goods->Goods Receipt |
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Term
| Integrated Process New Assumptions |
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Definition
-Fulfillment
*Sell to order instead of sell to stock
*Finished goods may not be available to fill order
-Production
*Make to order instead of make to stock
*Necessary raw materials may not be available
-Procurement
*Procure to order |
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Term
| Know the Integrated Process Chart |
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Definition
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Term
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Definition
1)Fulfillment Process
*assume inquiry and quotation
*receive PO
*create sales order in ES
*Prepare shipment
*not enough material?
2)Production Process
*create planned order
*convert to production order
*issue raw mat. to production
*not enough material?
3)Procurement Process
*create requisition
*create purchase order
*goods receipt
*acquired enough material
4)Return to Production Process
*issue raw mat. to production
*Produce product
*Move to finished goods
5)Return to Fulfillment
*Prepare shipment
-Pick&Pack
*Send shipment
*Send invoice
*Receive payment |
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