Understanding Functional Structure, Information Systems, Procurement, And ERP Modules Is Essential For Essay.

1.What is the most common Organizational Structure? How did the structure evolve? What are the benefits and drawbacks associated with the implementation of such a structure?

2.What is a functional information system? What is their value to an organization? What are their main drawbacks?

3.What is an enterprise information system? How do these systems differ from functional systems? What is their value to organization?

4.Explain the difference between the functional view and process view of Organizations. Why is the process view important today?

5.Within the procurement process what is a three way match used for? What is used to complete the match?

6.Explain the difference between a Bill of Material and Product Routing?

7.Identify some of the key problems associated with the manual, or paper-based, business process. How does an enterprise system eliminate or reduce the impact of these problems

8.Explain the difference between a Made to Order and Made to Stock strategy. What are the perceived advantages and disadvantages of each approach?

9.What impact has globalization had on an organization? How do they respond?

10.What does it mean when it is said that a product may have several views? What is a view and what are they used?

11.In the SAP environment, explain the difference between Organizational, Master and Transactional data? Provide examples.

12.Explain the four common material types in an ERP System.

Functional Structure and Its Advantages and Disadvantages

1. The functional structure is the most basic type of organizational structure

These structures developed from the concept of high control framework, higher area of the manufacturing organization that turns towards higher efficiency level.

The most common benefits of the functional organizational structure are the dependable level of departmental competence by the grouping of employees by specialization (Stadtler 2015). Besides the related advantage of this type of organizational structure are the operational speed and quality handle of the support issues of the organization for an increased level of customer satisfaction. Some of the disadvantages of the functional structure is weakening of common bonds, co-ordination gap and increased territorial disputes over goal disagreements among the overpopulated team in the organization.

2. A: The functional information system: It is a system which gives detailed information or data on a specific type of action or adjacent group of activities and the abstract of data for the restriction of management for those activities.

This system is regarded as one of the valuable resources of the organization. Some of the valuable contributions of this system in the organization include communication, globalization and cultural diversity, availability, and creation of newer types of jobs. Besides effectiveness of cost and productivity are some of the results of the positive impact of the system on the organization.

Some of the main drawbacks of this system are lack of job security, unemployment, dominant culture, issues related to security and expenses related to implementation.

3. A:     Enterprise information system: It is the system that provides leadership in the services of information technology by providing support to the organization’s goal with a proactive and focuses on customer services (Kesharwani 2014).

It is impossible to depend on manually connecting functional information system in case of managing complex data across the entire procedure by just printing data from one system to other. Hence, the organizations must also forward to integrated enterprise systems from the functionally focused information systems. The enterprise system can streamline the process of procurement.

The enterprise information system is beneficial for the organization in certain areas like the improvement of the quality and accuracy level of data, increased operational efficiencies, information management, safeguarding of the organization’s information, the agility and flexibility of the organization to meet the dynamic demands of the market.

4. A:     The functional view of an organization involves the shift from the vertical structure to the cross-functional structure in which teams include members from various functions for the creation of a suitable team for the specific process. The functional view includes operation in the functional silos working on the same process of the unit (Tseng and Hu2014). This view does not support or ensure any concern or other processes of the organization.

Functional Information System and Its Benefits and Drawbacks

The process view is important today for the business because the view focuses on the creation of the product for the customer rather than targeting on the activities and the functions. This view enables the organization to focus on the formation of values for the customers and creation of procedures out of the functions.

5. A: The three-way match defines a procedure to produce the invoice of the vendor for ensuring accurate and complete payments. The three-way match is highly beneficial and is used mainly to save the revenue of the business, to ensure optimal vendor relationships and to prepare the business for the audits.

For completing the three-way match, some of the basic things that are used include purchasing orders, packing slips or order receipts and invoices.

6. A:    The ‘Bill of Material’ is a core functionality to set up the production module of the ERP system. The major use of the ‘Bill of Material’ is to explain the composition of the product of a end item that are manufactured. On the other hand, ‘Product Routing’ is another platform of production that explains the methods of manufacturing. In case of product routing, the route for the product manufacturing is prerequisite to constructing the module of production.

7. A:One of the major problems of using the manual or paper-based procurement process is that the chances of delay between the various departments are high. The paperwork can lie on an individual’s working desk for months and days; the essential documents could also be in the electronic mail which can be shifted both externally and in internal ways.

The enterprise system reduces delays, paper clutters and reduces errors by making it in such a way that the master data is entered only once and after that only the references are required to be addressed (Kuss et al. 2017).

8. A:The main differences between ‘Make to Order’ and ‘Make to Stock’ lies on the rate of the sales order. In case of make to order, the order of production are connected to one or more orders of sales whereas, in case of make to stock production, the orders are the results of planning, production and are entirely based on the sales prognosis (Hotho, Lylesand Easterby-Smith 2015).

Advantages of Made to order strategy: the Better flow of cash since costs are broken up along the way and no cash goes inside. Besides, the revisions are easy to implement without throwing away the items in the stock.

Enterprise Information System and Its Advantages

Disadvantages of Made to order strategy: Inefficiency and more wastage

Advantages of Made to stock strategy: Ability to grow the production equally on a specific time period.

Disadvantages of Made to stock strategy: Requirement of strong statistical capabilities or supporting sales forecasting process. Unstable and full of erratic movements.

9. A: The impact of globalization over the performance of the organization has changed over the years. Some of the notable effects of globalization on the organization are changes in the planning strategy, changes in the leadership strategies, and changes in the structure of the organization (Rahim2017).

Some of the factors that result in these changes in the organization or the possible response to the impact of globalization on the organization include cross-cultural differences, the emergence of global managers and workforce diversity.

10. A: There may have been several views of the product; this means as the order is made the information will be forwarded to the procurement procedure. In the procedure of procurement, the product availability will be verified by the system in master data and verification will also be done by the production process. Finally, when the process is fulfilled, the system will initiate verification of the product from the same source similarly to the sense that the history of the product has been checked severally from three processes of the business.

The view is the master data-based view. They have generally used to re-correct the facts that are missing without altering other queries and for ignoring order repetition.

11. A: In the SAP environment, master data is the data that is frequently required in the business and which does not change often. Some of the examples are the creation of company codes, vendors, and customers.

Transaction data, on the other hand, is the kind of data that keeps on changing and relies on the daily activities that are carried out in the organization (Patiland Prasad2017). Examples of transactional data include data related to deliveries, sales, invoices, and sales.

Organizational data in SAP provides a flexible equipment to maintain the structure of the organization in case of different scenarios like services, sales and enterprise buyer professional. Examples include organizational data model and organizational data profiles.

12. A: The four basic types of material in an ERP System are

1) Raw materials, these are generally purchased from vendors, examples are tire and wheels.

2) Semi finished goods, these are produced from raw materials, examples are front wheel assemblies.

3) Finished goods, these are the produced from other raw materials or semi-finished goods, example are bicycles.

4) Trading goods, these are raw materials sold to customers, examples are helmets (Ptakand Schragenheim2016).

References

Hotho, J.J., Lyles, M.A. and Easterby?Smith, M., 2015. The mutual impact of global strategy and organizational learning: current themes and future directions. Global Strategy Journal, 5(2), pp.85-112.

Kesharwani, D. 2014. Enterprise Information System. Global Journal of Global Journal of Enterprise Information System Enterprise Information System, [online] 6(2), pp.1-113. Available at: https://s3.amazonaws.com/academia.edu.documents/35000868/Vol-6_Issue-2__April-June_2014.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1524417112&Signature=y0JiSA6EdHNIhaAaM6dr44U6uGE%3D&response-content-disposition=inline%3B%20filename%3DVol-6_Issu-2_GJEIS.pdf [Accessed 22 Apr. 2018].

Kuss, E., Leopold, H., Meilicke, C. and Stuckenschmidt, H., 2017, September. Ranking-based evaluation of process model matching. In OTM Confederated International Conferences" On the Move to Meaningful Internet Systems" (pp. 298-305). Springer, Cham.

Patil, R. and Prasad, S.R., 2017. SAP Governance, Risk and Compliance Access Control Implementation. International Journal of Engineering Science, 10960.

Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for integrating the supply chain. Crc Press.

Rahim, M.A., 2017. Managing diverse situations in organizations. In Diversity, Conflict, and Leadership (pp. 9-18). Routledge.

Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer, Berlin, Heidelberg.

Tseng, M.M. and Hu, S.J., 2014. Mass customization. In CIRP Encyclopedia of Production Engineering (pp. 836-843). Springer Berlin Heidelberg.