Business Process Modeling  Paper

 Business Process Modeling  Paper

Instructions/Descriptions

ITSS3300 Business Process Modeling Course Paper

Submission Notes:

Submit your complete assignment to eLearning by the due date in a Microsoft Word document with embedded graphics for question 2, or a PDF document. (You will not be given credit for any other formats.)

Consider the following scenario:

JSM Manufacturing is a small, local company that manufactures personal protective equipment, such as surgical masks, gowns, and face shields. The company relies on a network of suppliers of raw materials, transportation providers, and for other required products and services.

These vendors receive purchase orders from JSM for materials and services, and typically ship directly to JSM’s manufacturing facility. Invoices are sent to JSM’s accounts payable department for payment processing, which receives, verifies, and processes approximately 200 invoices per month.

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JSM’s accounts payable department consists of one (1) person who is responsible for verifying the invoices before paying them.

• When the accounts payable clerk receives a batch of invoices, typically in the form of a paper bills in the mail, she sorts them by vendor and purchase order number.
• On Tuesday of every week, the accounts payable clerk meets with the purchasing department to review the bills with the purchase orders to verify the bills were for the correct items at the correct price. JSM purchasing department contacts the vendor to reconcile any differences (either to the purchase order or to the invoice, which would require the vendor to generate another invoice).
• The accounts payable clerk meets with JSM receiving department every Wednesday to verify that the ordered items have indeed been received. The receiving department contacts the purchasing department of any discrepancies, and the purchasing department, in turn, contacts the vendor about the discrepancy. Again, reconciliation would require adjusting the purchase order, invoice, or both.
• Finally, the accounts payable clerk processes the invoice for payment. Payments are always made on Fridays.
• Note that invoices are received throughout the week and are sorted whenever the clerk has time to perform that task.

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The process certainly has some issues. Vendors often complain about the length of time it takes for JSM to pay their bills. Also, since the onset of the CoVID-19 pandemic, the demand for JSM’s products has skyrocketed, requiring the company to find more suppliers to meet its demand for more raw materials, resulting in far more invoices arriving at the company every week.

As a result of these issues, JSM has hired you to access the business impact of the situation and see what could be done to improve the overall process.

The Assignment:

1. Business Process. (15 points)
2. List at least 3 issues with the current process. (10 pts)
3. Explain the impact of the existing process on operational efficiency. (5 pts)
4. Diagram the existing Process.(50 points).
5. Using a diagramming tool (Visio, Lucidchart, PowerPoint) model the existing process.  Use swim lanes to show process participants, and separators to show time scales. Remember to submit in PDF format. (50 pts)
6. Metrics (15 points)
7. Identify 3 measurements or metrics that could be put in place to measure the impact of the existing process on operational efficiency. (15 pts)
8. Process Improvements (20 points).
9. Discuss the changes that could be made to make the process more efficient. (10 pts)
10. Explain how information systems could support those changes. Discuss what data the systems should capture and what decisions the system could improve. (10 pts)

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Business Processes and Data Flow

ITSS 3300

Timothy Stephens

(Supplemental Material from Laudon, Dennis, Wixom, Roth, et al)

Course Objectives

Describe the evolving nature of IS and IT and its role in today’s organizations.

Describe and model key business processes and apply knowledge of information technologies to support operational and strategic business processes.

Apply information systems viz. spreadsheet and analytics software, to solve business problems.

Understand core IS concepts within an organization such as

*Data management,

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*Information technology,

*Enterprise systems,

*Information systems management

*Business intelligence

that enable students to relate information systems to their field of study.

Describe and model key business processes and apply knowledge of information technologies to support operational and strategic business processes.

Business Processes

Business processes

Sets of activities, routines, steps

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Flows of material, data, information, knowledge

May be tied to functional area or be cross-functional

Businesses: Can be seen as collection of business processes

Business processes may be assets or liabilities

Business processes are at the heart of every business. This could include anything from ordering a hamburger at McDonalds, to applying for a driver’s license at the DMV. Studying a firm’s business processes is an excellent way to learn a great deal about how that business actually works. How could a business process be a liability? Think of some dysfunctional business processes or really poor business process.

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Structured and Dynamic Processes

Structured Processes

Support operational and structured managerial decisions and activities

Standardized

Usually formally defined and documented

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Exceptions rare and not (well) tolerated

Process structure changes slowly and with organizational agony

Example: Customer returns, order entry, purchasing, payroll, etc.

Dynamic Processes

Support strategic and less structured managerial decision and activities

Less specific, fluid

Usually, informal

Exceptions frequent and expected

Adaptive processes that change structure rapidly and readily

Example: Collaboration; social networking; ill-defined, ambiguous situations

Structured processes are formally defined, standardized processes involving day-to-day operations: accepting a return, placing an order, purchasing raw materials, and so forth.

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Dynamic processes are flexible, informal, and adaptive processes normally involving strategic and less structured managerial decisions and activities.

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Business Process Examples

Sales and Marketing

Identifying Prospects

Human Resources

Producing Payroll

Finance and Accounting

Creating Financial Statements at Period Close

Supply Chain

Maintaining Inventory Levels

Manufacturing, Production

Assembling The Product

Remember that organizations typically have some form of separate management and operating structures for various business functions. Other examples include checking the product for quality (manufacturing and production), selling the product (sales and marketing), paying creditors (finance and accounting), and evaluating job performance (human resources).

How Information Technology Improves Business Processes

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Efficiency Increases of existing processes

Automating steps that were manual

Enabling entirely new processes

Changing flow of information

Replacing sequential steps with parallel steps

Eliminating delays in decision making

Supporting new business models

Examples of entirely new business processes made possible by information technology are downloading a song from iTunes or buying a book or e-book from Amazon. You might also remember the Amazon book reader Kindle which is continuously connected to the Internet and allows customers to download books and pay for them using Amazon’s one-click purchase method.

ITSS3300 Business Process Modeling Course Paper

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