Business Processes: Functional Org Structure

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Questions and Answers

Which organizational structure is most commonly used by businesses?

  • Network structure
  • Matrix structure
  • Functional structure (correct)
  • Divisional structure

Processes typically operate independently within a functional organizational structure.

False (B)

What is the term for the effect where departments focus on their own objectives without considering the overall process goals?

Silo effect

Enterprise systems support ______ processes across different departments.

<p>end-to-end</p> Signup and view all the answers

Which of the following is NOT typically considered a key business process?

<p>Marketing (A)</p> Signup and view all the answers

A trigger is the final step in a generic business process.

<p>False (B)</p> Signup and view all the answers

Match the key business processes with their descriptions:

<p>Procurement = Acquiring necessary materials or resources Production = Creating or manufacturing goods Fulfillment = Delivering goods or services to customers</p> Signup and view all the answers

Which department is typically responsible for creating a purchase requisition?

<p>Warehouse (B)</p> Signup and view all the answers

The production process begins with the receipt of finished goods in the warehouse.

<p>False (B)</p> Signup and view all the answers

In the fulfillment process, what action follows after a sales order is created?

<p>Prepare shipment (pick and pack)</p> Signup and view all the answers

In the asset management process, the final step before settlement is performing the ______.

<p>maintenance</p> Signup and view all the answers

Which department typically handles the settlement in both the asset management and customer service processes?

<p>Accounting (A)</p> Signup and view all the answers

Planning is typically the final stage in a project management process.

<p>False (B)</p> Signup and view all the answers

What is the initial step or event that starts a generic business process?

<p>Trigger</p> Signup and view all the answers

GBI, or Global Bicycle, Incorporated, is a ______ company used for educational purposes.

<p>fictional</p> Signup and view all the answers

Which of the following is a key result of investments in enterprise systems (ES)?

<p>Increased productivity (A)</p> Signup and view all the answers

Communication and coordination among functions are not necessary for effective process execution.

<p>False (B)</p> Signup and view all the answers

According to the diagrams, what action immediately precedes 'Issue raw materials' in the Production process?

<p>Authorize production</p> Signup and view all the answers

In a procurement process, after receiving materials, the ______ department receives the invoice.

<p>accounting</p> Signup and view all the answers

Match the following organizational units of GBI with their primary function:

<p>Miami distribution center = Distribution of goods Dallas manufacturing plant = Manufacturing of goods Heidelberg manufacturing plant = Manufacturing of goods</p> Signup and view all the answers

Which of the following challenges is most directly addressed by using modern Enterprise Systems?

<p>Managing geographically dispersed processes (D)</p> Signup and view all the answers

Optimizing functional goals always ensures the optimization of overall process goals.

<p>False (B)</p> Signup and view all the answers

In the context of inventory and warehouse management, which process directly precedes the activity of 'Prepare for storage?'

<p>Receive materials</p> Signup and view all the answers

In the context of inventory and warehouse management, the sequence of activities 'Locate materials,' 'Issue materials' occurs within the overarching ______ process.

<p>Production</p> Signup and view all the answers

Assuming GBI implements a strict segregation of duties, which of the following individuals should NOT perform both the 'Create Service Request' and 'Perform Service' tasks within the Customer Service Process?

<p>Sales Representative and Production Technician (C)</p> Signup and view all the answers

Flashcards

Functional Organizational Structure

A structure where the organization is divided into functions or departments.

Silo Effect

A situation where departments focus on their own objectives without considering the overall process objectives.

Business Processes

Sequence of tasks or activities that produce desired outcomes.

Procurement

The process of ordering and receiving goods or services.

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Fulfillment

The process of filling a customer order.

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Production

The process of creating a product or service.

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Create Purchase Requisition

Creating a request to purchase something from a vendor.

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Issue Raw Materials

Issuing raw materials to production.

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Shipping

Sending a delivered product to a customer.

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Warehouse Management

The process of tracking the storage of goods.

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Perform Maintenance

Performing maintenance on machines.

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Create Service Offer

Creating service offer.

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Project Management Process

Planning, Budgeting, Execution, Settlement.

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Study Notes

  • Business Processes

Functional Organizational Structure

  • A functional organizational structure is the most common type.
  • It divides the organization into functions or departments.
  • Each function performs specialized tasks or activities.
  • Processes cut across functions.

The Functional Structure

  • Includes commonly used business functions such as:
    • Purchasing
    • Production
    • Warehouse
    • Sales and Marketing
    • Research and Development
    • Finance and Accounting
    • Human Resources
    • Information Systems

Silo Effect

  • Occurs when focusing on functional objectives without regard to process objectives.
  • Happens when optimizing functional goals versus process goals.
  • Process execution requires communication and coordination among functions.

Enterprise Systems

  • Enterprise systems (ES) are needed to manage geographically dispersed processes.
  • Enterprise systems support end-to-end processes.
  • Investments in ES have provided increased profitability, productivity, and a competitive edge.

Business Processes

  • A sequence of tasks or activities that produce desired outcomes.
  • Key processes include:
    • Procurement
    • Fulfillment
    • Production
  • Processes are interrelated with other processes.
  • Processes may have sub-processes.

A Generic Business Process

  • A generic business process includes:
    • Trigger
    • Step 1
    • Step 2
    • Step 3
    • Outcomes

Key Business Processes

  • Includes:
    • Material Planning
    • Inventory and Warehouse Management
    • Asset Management / Customer Service
    • Procurement
    • Production
    • Fulfillment
    • Lifecycle Data Management
    • Human Capital Management
    • Financial Accounting
    • Management Accounting
    • Program and Project Management

A Procurement Process

  • Warehouse creates a purchase requisition.
  • Purchasing creates and sends a purchase order.
  • Warehouse receives materials.
  • Accounting receives an invoice.
  • Accounting sends the payment.

A Production Process

  • Warehouse requests production.
  • Production authorizes production.
  • Warehouse issues raw materials.
  • Production creates the product.
  • Warehouse receives finished goods.

A Fulfillment Process

  • Sales receives a customer purchase order.
  • Sales creates a sales order.
  • Warehouse prepares the shipment (pick and pack).
  • Warehouse sends the shipment (ship).
  • Accounting creates and sends the invoice.
  • Accounting receives payment.

Inventory and Warehouse Management Process

  • Contains a production, procurement and fulfillment process
  • The production process includes:
    • Production requests materials from the Warehouse
    • Warehouse locates materials
    • Warehouse issues materials
    • Warehouse receives materials
    • Warehouse prepares materials for storage
    • Warehouse stores the materials
  • The procurement process includes:
    • Warehouse receives materials
    • Warehouse prepares for storage
    • Warehouse stores the materials
  • The fulfillment process includes:
    • Warehouse locates materials
    • Warehouse prepares shipment
    • Warehouse ships to customer

An Asset Management Process

  • Production requests maintenance.
  • Production authorizes maintenance.
  • Production performs maintenance.
  • Accounting handles settlement.

A Customer Service Process

  • Sales creates a service request.
  • Sales authorizes service.
  • Production performs the service.
  • Accounting handles settlement.

A Project Management Process

  • Includes the following steps:
    • Trigger
    • Planning
    • Budgeting
    • Execution
    • Settlement
    • Outcomes

Global Bicycle, Incorporated (GBI)

  • Global Bicycle Incorporated (GBI) is a fictional company.
  • Additional background information can be found in the overview document on the SAP University Alliance Community.
  • http://uac.sap.com
  • GBI data is used to illustrate key concepts and processes.
  • Hands-on exercises use GBI data.

GBI Organizational Structure

  • GBI Global is the corporation
  • Includes GBI US and GBI Germany
  • GBI US includes the Miami and San Diego distribution centers.
  • The corporation also includes the Dallas manufacturing plant.
  • GBI Germany includes the Heidelberg manufacturing plant and the Hamburg distribution center.

Other Resources: SAP Service Marketplace

  • Contains SAP enterprise support
  • Provides SAP Support Portal, SAP Partner Portal and SAP Community Network links and info
  • Found online at http://service.sap.com.

SAP Educational Services

  • Consists of:
    • Classroom training
    • Self-study options
    • E-Learning
    • End user training
    • SAP Academy
    • Customer site training

SAP Help Portal

  • Provides web-based documentation for all SAP Solutions.

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