INTRODUCTION TO BUSINESS PROCESSES

INTRODUCTION TO BUSINESS PROCESSES

1. FUNCTIONAL ORGANIZATIONAL STRUCTURE

   • Organizations are divided into functions or departments, o which is responsible for a set of closely related activities

2. SILO EFFECT

   • It is when workers complete their tasks in their functional silos without regard to the consequences fo the other components in the process

3. ENTERPRISE SYSTEMS

   • Systems that support end-to-end processes are called enterprise systems
     • They are essential to the efficient and effective execution and management of business process

4. BUSINESS PROCESSES

   • Various process steps are carried out by different functional areas or departments,
     • Effective communication and collaboration among the departments is essential to the smooth execution on these processes
     • An organization uses many processes to achieve its objective
       • Organizations use specific terms to identify these processes
         • THE PROCUREMENT PROCESS
           • It includes all of the tasks involved in acquiring needed materiales externally from a vendor
           • THE PRODUCTION PROCESS
             • A company uses the production process to acquire needed matriales internally
             • FULFILLMENT-SELL
               • It is concerned with efficiently processing customer orders. It is triggered by a customer purchase order that is received by the sales department
               • MATERIAL PLANNING-PLAN
                 • Its purpose is to match the supply of materials with the demand. The supply of materials is a function of many internal and external factors.
                 • INVENTORY AND WAREHOUSE MANAGEMENT-STORE
                   • It is concerned with the storage and movement of materials. For business to operate efficiently, it is essential that materials be stored so that they can be quickly and easily located when needed
         • LIFECYCLE DATA MANAGEMENT-DESIGN
           • It provides a set of tools to manage product design and improvement throughout the lifecycle of a product
           • ASSET MANAGEMENT AND CUSTOMER SERVICE
             • It is concerned with both the preventive and corrective maintenance of an organization's equipment, it is performed periodically.
             • HUMAN CAPITAL MANAGEMENT - PEOPLE
               • It consists of numerous processes related to all aspects of managing people in an organization. It is the people in the functional areas who actually perform the tasks, then, human capital management toughes every process in the organization
               • PROJECT MANAGEMENT - PROJECTS
                 • It refers to the processes a company uses to plan and execute large-scale projects, they can be internal or external. Projects rely on resources and capabilities available in other processes
                 • FINANCIAL ACCOUNTING-TRACK FOR EXTERNAL REPORTING
                   • It is concerned with tracking the financial impacts of processes with the primary goal of meeting legal and regulatory reporting requirements
                   • MANAGEMENT ACCOUNTING-TRACK FOR INTERNAL REPORTING
                     • It is concerned with tracking costs and revenues for internal reporting that is intended to help management control costs and revenues and assesthe profitability of many products and market segments

5. GLOBAL BIKE INCORPORATED (GBI)

   • It is fictional company and its operations have been greatly simplified o make its processes and its SAP ERP sytem easier to work
   • It was founded in 2001
   • It has two bicycle manufactures
     • United States
     • Germany
   • It has three lines of business
     • Deluxe and professional touring bikes
     • Men's and women's of-road bikes
     • Bike accesories