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Date Created: 06/14/16
Lab 9: Redesigning Business Processes: The Procurement Process CRN: 14559 DATE SUBMITTED: 03/13/16 GSU ID NUM. 002-03-6719 FULL NAME: Khanh Phan GSU E-MAIL Kphan7@student.gsu.edu ADDRESS: Assignment Be sure to read the entire lab protocol. Then, complete the following activities and questions that follow. Please format your final document 1. List the transactions that must occur within the reengineered purchase and payment system and the activity or event that triggers the transaction. (Add or delete rows as needed) TRANSACTION ACTIVITY/EVENT TRIGGERING THE TRANSACTION Create purchase order Decrease in Inventory Shared Database sends Payments initiated when goods electronic are received payment to Vendor Delivery at the Receiving Send notification to “Purchasing” Department department Vendor Sends Good Shipment of items bought Customer Receives Goods Matches goods received with purchase order Electronic database updated Electronic record of all transactions occurring throughout the purchase and payment 2. What transaction files and databases are needed to support the process and what principal data items does each contain? (Add or delete rows as needed) FILE/DATABASE KEY DATA ITEMS NAME Inventory Item number, item name, quantity, price, vendor name Purchasing Vendor name, product name, quantity, retail order price, delivery date, and product number Packing Slip Purchasing order, quantity, list of purchased items, receipt, date, customer information, product information Vendor Store name, address, id number, website, and Database phone number Product Product id, price, discount information, quantity, Database and sales Customer Name, items bought, address, phone number, and Database payment history. 3. For each transaction outlined in question (1), list the actions taken and data items that are referenced. For example, when a delivery occurs, what actions must occur? What data will be used? Which data file(s) or database(s) will be accessed? N TRANSACTION ACTION TAKEN DATA ITEMS O REFERENCED 1 Create Purchase New order will be Inventory, Order created Purchase_order 2 Shared Database Vendor Receives Purchase order, Price, sends Payment Quantity _Ordered electronic payment to Vendor 3 Delivery at the Send notification to Purchasing_order_No, Receiving “Purchasing” Inventory_Delivered_Da Department department te 4 Vendor Sends Goods are packaged Purchase_order, Goods and Address, then shipped Customer_Information, List_of_Purchased_Items 5 Customer Receives Goods are accounted Quantity, Receipt, Goods for Vendor_Information, Product_number 6 Electronic database Items are recorded Inventory, Payments updated into _Made system 4. Based on the reengineered procurement process, how will vendors receive or obtain a Hanska Markets purchase order? The vendor and the customer will notify or contact each other electronic Laboratory #9: Redesigning Business Processes Page | 2 means (email, fax) because the reengineered process has become paperless 5. Describe the steps that occur when a vendor’s driver arrives at the company’s receiving department with a delivery. Be sure to explain how Hanska receiving employees will be able to verify the purchase order and the matching listed items with those in the delivery. Step 1: Driver arrives to receiving department Step 2: Hanska employees unload and store items received Step 3: Items are recorded and checked from purchase order slip Step 4: Driver and employee record that good has been sent and received Step 5: Record is stored into personal database for confirmation 6. How will accounts payable staff members know when a delivery (including its items) is fully validated by the company’s receiving department? A record is kept that a purchase is made and items to be received are pending. Once items are received or delivered to customer they are recorded and thoroughly checked for their quantity. If the items match the purchase order a confirmation is sent to accounts payable for payments to be initiated 7. How will accounts payable staff members know when to pay an invoice? Customer will send a confirmation email to accounts payable when they check items received match the purchasing order. 8. Draw a revised flowchart, based on the one shown on page 1 that illustrates information flow (not document flow) in the reengineered purchase and payment process. Laboratory #9: Redesigning Business Processes Page | 3 Email Emai Email Send Electronicall Ema i Laboratory #9: Redesigning Business Processes Page | 4 EXPEDITING VENDOR PAYMENTS TO GAIN IMPROVED PRICES 9. Describe an efficient and repeatable process that will enable Hanska Markets to prepare a vendor’s check within 48 hours. The process you design should not require intervention by staff members or involvement of managers or staff from other Hanska Market departments. (e. g., phone calls, email messages, or manual steps) A vendor’s check can be created through a third party, such as PayPal or any online payment system, where no one is intervening through the process. The process is completely electronic. EXCEPTION HANDLING 10.It is inevitable that the delivery slip accompanying authorized and awaited deliveries will not include the required purchase order reference. Can this delivery situation be handled in the newly designed system while also enabling employees to adhere to Hanska Markets’ stated policies? If so, how? If not, what action do you recommend that the company’s receiving employees take? Yes this situation can be handled by first when purchases are made a confirmation or receipt can be emailed to the customer so they have a record of what they ordered. Also when employees receive the good they must check that the quantity and items match the purchasing order they have stored electronically 11.If a company wants to continue to do business with a preferred vendor, even though that supplier insists on receiving a numbered, paper purchase order, how should that request be accommodated by the company’s paperless purchase and payment process? This request can be handled through faxing. Because number, paper purchase orders can be email to a fax number where the vendor can easily have the information paper based 12.What other exceptions to the normal procurement process can be anticipated? Discrepancies and faults or damages that are meant to be returned or excessive that the company will ship and return to the vendor, because that normally does not happen. Laboratory #9: Redesigning Business Processes Page | 5