Modern ERP: Systems Diagramming & Process Mapping

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is one primary purpose of systems documentation?

Describing business processes (correct)

Training employees on software

Designing user interfaces

Creating marketing materials for products

What percentage of public companies emphasized reading or preparing systems documentation post-Sarbanes-Oxley Act?

82% (correct)

72%

92%

62%

Which of the following is NOT a benefit of using a process map?

Enhancing product marketing strategies (correct)

Highlighting workflow inefficiencies

Identifying opportunities to streamline processes

Promoting awareness of employee responsibilities

What symbol in a process map represents the transformation of inputs into outputs?

Activities Signup and view all the answers

What method is considered less effective for gathering information for a process map?

One-on-one interview method Signup and view all the answers

In developing a process map, what does the term 'trigger' refer to?

The initial event to start the process Signup and view all the answers

What is the purpose of swim lanes in a process map?

To represent roles participating in the process Signup and view all the answers

What does a process flow line in a process map indicate?

The type of information flowing in and out of activities Signup and view all the answers

Which of the following roles would likely be included in a process map for order fulfillment?

Sales Clerk Signup and view all the answers

Which term describes the outcomes that come from decision points in a process map?

Decision descriptors Signup and view all the answers

What should be the focus when assessing a process for non value-added steps?

The customer's perspective on the process Signup and view all the answers

What is a primary risk associated with handoffs in a process?

Reduced role clarity Signup and view all the answers

Which issue is likely to cause delays by limiting the performance of an entire system?

Bottlenecks Signup and view all the answers

What does cycle time refer to in process evaluation?

The overall time required to complete the process Signup and view all the answers

What is a common problem that arises from role ambiguity?

Confusion over responsibilities Signup and view all the answers

What should be avoided to prevent unnecessary delays in a process?

Making decisions too late Signup and view all the answers

Which of the following best describes data duplication in process mapping?

Identifying unnecessary flows of information Signup and view all the answers

In process mapping, what should the roles retain throughout the map?

The same responsibilities Signup and view all the answers

What is a significant contributor to cycle time delays?

Long wait times between activities Signup and view all the answers

What should be included when starting with a high-level process map?

Broadly defined activities and roles Signup and view all the answers

Study Notes

Modern ERP: Systems Diagramming and Process Mapping

Systems Documentation has three basic purposes: describing business processes, assessing internal control procedures, and evaluating/designing/changing information systems.
Systems Diagrams graphically represent systems, including flowcharts, ER diagrams, and other techniques.
Importance of systems diagramming: A recent study highlighted increased emphasis on reading and preparing systems documentation for 72% of private and 82% of public companies since the Sarbanes-Oxley Act of 2002. A 2006 study found that 77% considered the ability to read system diagrams "very important" or "somewhat important," and 66% felt likewise about the ability to prepare such diagrams.

Process Maps

A process map, also called a cross-functional flowchart, documents, analyzes, streamlines, and redesigns business activities.
Benefits:
- Defines the "as is" process and clarifies changes needed for the "to be" process.
- Determines if "as is" measures are appropriate.
- Promotes awareness of employee responsibilities.
- Shows the impact of a role's performance on upstream/downstream activities in the process.
- Highlights workflow inefficiencies and opportunities for improvement.
- Pinpoints internal controls needing audit testing.

Process Map Symbols

Activities (events) transform inputs into outputs.
Decision points represent yes/no outcomes, depicting alternatives.
Process flow lines connect symbols, labeled to show information flow.
Data stores support the process.
Termination points mark the end of the process.
On-page connectors reduce clutter, used when processes are on a single page.
Off-page connectors manage processes spanning multiple pages.

Gathering Information for a Process Map

Group interview method: All process participants are interviewed together using a skilled facilitator to promote unbiased discussions that question conventional wisdom.
One-on-one interview method: Less effective than group interviews because each person is interviewed individually.
Walkthrough: A physical review of the process scope to confirm if the documented process accurately reflects the current workflow.

Guidelines for Developing a Process Map

Define the purpose and explain it to participants.
Identify the process scope.
Determine participating roles and assign them to swim lanes (horizontal bands).
The trigger event initiates the process (first swim lane).
Events move from left-to-right or top-to-bottom chronologically.
Information exchange details are on the flow lines.
Decision points end with a question mark, outcomes labeling flow lines emerging.
The last swim lane accommodates information systems supporting the process.

Process Map Example

Example of an electric city order fulfillment process map. (a diagram of the specific steps)

Hints for Constructing Process Maps

Maintain consistent effort level across the map.
Start with a high-level map and use detailed documentation for activities.
Create glossary of process acronyms.
Use humps where flow lines intersect.
Maintain consistent role assignments (swim lanes) even across multiple pages.
Terminate the process in the final swim lane.

Advanced Process Map Example

Examples of Monster Furniture warehouse order-to-cash process maps (diagrams). (two pages)

Process Problems to Uncover

Handoffs: Transferring responsibility can lead to mistakes, miscommunication, and delay.
Bottlenecks: Multiple flows converging to a single activity can limit system performance and delay processes.
Rework: Time spent fixing errors during processes.
Role ambiguity: Lack of clarity on roles/responsibilities leads to confusion among participants.
Data duplication: Excessive flows between information systems can mean unnecessary data exists in multiple places.
Cycle time: measuring the time consumed during process flow from start to finish.
Flow time: measures time between activities, identifies delays and underutilization.
Non-value-added steps: customer workflow is examined. Unnecessary or repeated steps are often problematic.

Process Decision Issues to Uncover

Authority ambiguity: Defining who has decision-making authority.
Decision necessity: Avoid unnecessary decisions that lead to delays in the process.
Decisions made too early/too late: potential errors.

Developing the "To-be" Process

Identifying the customer, their needs, and willingness to pay.
Determining performance expectations and satisfaction levels.
Defining process start and end points (optimal).
Identifying crucial/added-value process steps.
Deciding/differentiating what can be changed (in scope) from what cannot (out of scope).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the critical aspects of systems documentation, diagramming, and process mapping in modern ERP systems. This quiz covers key techniques and their importance, especially in the context of compliance and business efficiency. Evaluate your understanding of flowcharts, ER diagrams, and the benefits of process mapping.