MIS 305 midterm

Data in the vendor master are grouped into what three segments?

1. client code (general data / client level): address, vendor number, preferred communication 2. company code (financial accounting): reconciliation account, terms of payment, bank account 3. purchasing organization (materials management): purchasing currency, salesman's name, vendor partners

The data in the customer master is/are divided into what three segments?

1. general data 2. accounting data 3. sales area data

In the fulfillment process, what is a plant?

A facility from which the company delivers products and services to its customers

What is a storage location?

A storage location is a place within a plant (facility) where materials are kept until they are needed. a plant can have multiple storage locations for different purposes (ex. staging area, inspection area, etc)

what is BOM?

Bill of Material the components that are necessary to produce a material. In discrete and repetitive manufacturing, the BOM is a complete list of all the materials, both raw materials and semi finished goods, that are needed to produce a specified quantity of the material.

Name the organizational data that is included in a planned order?

Client, Company Code, Plant, and Storage Location

What is Financial Accounting?

Department in charge of recording, summarizing, and reporting transactions over a period of time. tracking financial impacts of processes w primary goal of meeting legal & regulatory reporting requirements (externally focused)

If a company has adopted the make-to-stock strategy, what is the trigger for the production of goods?

In make-to-stock production, the production process is triggered by a need to increase inventory.

What is the Procurement Process?

Includes all of the tasks involved in acquiring needed materials externally from a vendor. Purchasing / obtaining

Which master data is used in numerous processes?

Material Master (most commonly used master data in an org.) where Procurement buys materials, Production makes materials, and Fulfillment sells materials.

How many company codes can a plant belong to?

Only one United States (US00) or Germany (DE00) A company code can contain multiple plants

What are some examples of production resource tools?

PRTs are movable resources that are shared among different work centers. Examples of PRTs are calibration or measurement instruments, jigs and fixtures, and documents such as engineering drawings.

What terms refer to an organizational element that performs multiple functions and is relevant to several processes?

Plant San Diego, Dallas, Miami Facility where products and services are created/provided, materials are stored & used for distribution, production planning is carried out, service or maintenance is performed

What user inputs are included in a goods receipt? The user based on the completed work.

Quantities, Dates, and the Production order number(material)

What is product routing?

Routings enable you to plan the production of materials (products). Therefore, routings are used as a template for production orders and run schedules as well as a basis for product costing. Which operations (process steps) have to be carried out and in which order to produce a material (product). specifies the sequence in which these operations must be carried out, the work center where they are to be performed, and the time needed to complete them. It can also list additional resources, known as production resource tools, which the company needs to complete the operations.

What is an Enterprise System?

Support end-to-end processes. essential to the efficient and effective execution & management of business processes. large complex computing systems which handle large volumes of data and enable organizations to integrate and coordinate their business processes Hard to manage that are geographically dispersed without the use of modern information systems.

What does a stock requirement list contain?

The amount of stock required of a certain product or material to potentially fulfill a transaction or order.

What is Project Management?

The organization and execution of projects while working within constraints with budgets and schedules. planning & executing large scale projects such as construction of a new factory or the production of complex products such as airplanes can be internal or external

What does a routing identify in a production order?

The route or process an unfinished product goes through during the manufacturing process where different parts or materials are assigned to a certain eventual end product. This may occur in facilities where materials are kept.

Define Business Process.

The sequence of tasks that produce a desired outcome and each event is triggered by another.

What is Material Planning?

The system used for calculating the materials and components needed to manufacture a product. uses historical data & sales forecast to plan which materials will be procured & produced when & in which quantities

What are the basic time elements relevant to producing a material?

Typical time elements are setup time, processing time (machine and labor), and teardown time. The keys utilize specific formulas to calculate how much time must be allotted for each of these elements.

What is Lifecycle Planning?

When a company seeks the most cost-effective strategy for managing assets over their life by capitalizing on timely treatments to extend the life of the asset at a low cost. supports the design and development of products from the initial product idea stage through the discontinuation of the product.

When does confirmation in the production process happen?

When the finished goods have been produced, the person completing the work records a confirmation of the work completed in the SAP ERP system.

What is a Silo Effect System?

When there exists a lack of communication and common goals between departments in an organization/enterprise -- SAP intends to reduce silo or combat it by integrating the numerous parts, departments, operations of a company/organization into one system. When processes are integrated into one place or system, there is better access and transfer of information overall.

What type of data is included in a confirmation?

Where the work was completed. How much work was completed. Who completed the work.

What is a Cross-functional System?

a business structure in which functions are divided by departments depending on the expertise of a department. processes cut across these departments.

What is a work center?

a location where value-added work needed to produce a material is carried out. where actual production takes place (shop floor) once materials are issued to production order. It is where specific operations, such as drilling, assembling and painting, are conducted. A work center can also be a machine or a group of machines; an entire production line; a work area, such as an assembly area; or a person or group of people who are responsible for completing operations in different parts of the plant.

What are examples of a shipping point?

a rail depot, loading dock, a mailroom

Define purchasing organization

a unit within an enterprise which performs strategic activities related to purchasing for one or more plants. It procures materials / services, evaluates and identifies vendors, negotiates contracts & purchase conditions w/ vendors, agreements, pricing, and other terms. two models: enterprise level (GL00) and company level (US00) subdivides a company according to requirements of purchasing.

What types of Master data are relevant to the production process?

bills of material, work centers, product routings, material master, and production resource tools.

Define purchasing group

carries out the day-to-day purchasing activities of purchasing organizations. The purchasing group is responsible for procurement.

What type of organizational data is utilized in the procurement process?

client, company code, & plant storage locations, purchase organization, purchasing group

What are the key organizational data relevant to the production process?

client, company code, plant, and storage location

What are the key organizational elements in the fulfillment process?

client, company code, sales area, plant storage location, shipping point, credit control area

Finished Goods (FERT)

created by the production process from other materials, such as raw materials and semifinished goods. They are generally not purchased. (produced using other materials, sold to customer) As a result, the material master for finished goods will include data related to production and fulfillment, but not procurement.

Which of the organizational levels is associated with the method used to distribute materials to a customer?

distribution channel

What type of data is within the goods receipt?

goods movement in which we accept goods into our system Material, Quantity deliveredVerification, Storage LocationOrder history, physical inventory, Inventory G/L account

What is the typical characteristic of a wholesale channel?

offers volume discounts requires minimum purchase order does NOT sell directly to consumers does not include sales tax in calculating prices

What is included in the header information of a production order?

order number, plant, scheduler, and status.

What term is used to represent the structure of an enterprise?

organizational data (structure of the enterprise in terms of legal or business purposes) includes enterprise (client), companies (company code), and facilities (plant)

Semi-Finished Goods (HALB)

produced using other materials, and are not purchased or sold.

Trading Goods (HAWA)

purchased from a vendor, and resold to customers without additional processing

Raw Materials (ROH)

purchased from an external source—a vendor—and used in the production process. not sold to end-customers

What is the intersection or combination of material data and vendor data?

purchasing information record allows buyers to quickly determine which vendors have offered / supplied specific materials

Which action triggers sales order processing in the fulfillment process?

receipt of a customer purchase order

What is the final step in the fulfillment process?

receipt of payment from the customer

What are the key organizational elements included in a sales area?

sales organization, distribution channel, and division.

What is the Production Process?

the actual creation of products within the organization acquiring materials internally by making them

What is the highest organizational level in SAP ERP?

the client for us: global bike inc (GBI enterprise), comprising companies (US and germany)

What are the outcomes of a goods issue to a production order?

the material, Fl, CO documents, Material Master updated, GL accounts updated, Material reservations, Actual cost updated.

What is Human Capital Management?

the process of hiring people, managing workforces, and optimizing productivity focuses on people within the organization including functions such as recruiting, hiring, training, benefits management

What is a Three-Way Match in Procurement?

when the Purchase Order, Goods Receipt, and the Invoice Receipt details all match.

What best defines material staging?

when the operation whereby the component materials are moved from storage and prepared for use, takes the same amount of time for 10 bikes as for 15 bikes.