Business Process Modeling: Organizational Structure, Information Systems, Procurement, and ERP System

This article discusses the most common organizational structure, functional and enterprise information systems, procurement process, ERP system, and more. It explains the benefits and drawbacks of each system and process, and how they impact an organization. The article also covers the difference between a Bill of Material and Product Routing, Made to Order and Made to Stock strategy, and the impact of globalization on an organization.

Running head: BUSINESS PROCESS MODELING
Business Process Modeling
Name of the Student
Name of the University
Author Note

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

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

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4. Explain the difference between the functional view and process view of Organizations.
Why is the process view important today?
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.
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. Within the procurement process what is a three way match used for? What is used to
complete the match?
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.

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6. Explain the difference between a Bill of Material and Product Routing?
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. 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?
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. Explain the difference between a Made to Order and Made to Stock strategy. What are
the perceived advantages and disadvantages of each approach?
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

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

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

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

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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).

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References
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organizational learning: current themes and future directions. Global Strategy Journal, 5(2),
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Kesharwani, D. 2014. Enterprise Information System. Global Journal of Global Journal of
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