LAB #3

Purpose:

This lab is designed to give you further practice on using BPMN by

expanding on the basics we learned in Lab 2. In this lab, you will be drawing a

process map using BPMN and then considering if there are any issues with the

current setup by

answering

several questions.

Narrative:

I. Company and Process Description

DalCrunch (DC) produces and sells breakfast cereal that is supposed to "invigorate

the mind and make students ready for the day!". It has two types of cereal:

DalCrunch Protein (DCP) and DalCrunch Enery (DCE).

To make things easy for reporting, ordering, and managing, DC organizes its sales

into two groups: Wholesale and Direct Sales. Wholesale sells to distributors, who

then distribute to small stores and vending machine operators. Direct sales sells to

grocery stores

. Each group (Wholesale and Direct Sales) has an organizational

structure that interacts with DC's other functional areas like Accounting and Supply

Chain Management. Wholesale and Direct Sales operate separately, which effectively

breaks the marketing and

sales functions into two pieces. Wholesale and Direct

Sales each has four salespeople who work on the road, and two salesclerks who

work in the sales office. Salespeople work on commission and have the power to

offer customers discounts in order to make a

sale.

II. Sales/Order Process

The sales process is as follows:

Sales contacts the customer - either by phone or in person.

If the customer is interested, the customer will request an immediate quote.

The salesperson prepares a handwritten quote on

paper and generates two copies:

the blue copy is faxed or given to the customer and the red copy is faxed or emailed

to the office to be filed.

Once the customer is satisfied with the quote, the customer calls the in

-office sales clerk to place the order.

The sales clerk retrieves the file and begins the process to check the customer's

credit rating.

For new customers, the clerk fills out a credit-

check form that includes basic

customer data and the amount of the order.

The form is then given to Acco

unting and the credit check is performed by the

accountants. Based on the score returned in the credit check, the accountants then

determine the amount of the customer's credit limit. The form is then returned to

the sales clerk showing the customer's cred

it limit.

If the credit limit is above the amount of purchase, assuming that there are no other

orders outstanding, the sales clerk calls the customer to determine what action the

customer wants to take: prepay for the order or dispute the amount of cred

it

granted.

If the credit limit is below the amount of the purchase, assuming that there are no

other orders outstanding, the sales clerk calls the customer to determine what

action the customer wants to take: reduce the amount of the order, prepay, or

dispute the amount of credit granted.

If the customer is an existing customer, then the clerk simply checks the customer's

existing reports to confirm the current balance on account, the credit limit, and the

customer's available balance.

If the credit

is sufficient for the order, the sales clerk enters the customer's order

into the order entry system and sends an email to the warehouse with a packing slip

and electronic shipping labels. The sales clerk also produces and emails a data file

for accounting

to prepare the invoice.

Required:

1.

Develop an "As- Is" process model for the major activities identified in the DC

Sales/Order process usin

g BPMN that we have learned. (6 points)

2.

Identify two problems with the current process ( for example, hand -

written forms) and propose re-design opportunities to eliminate

or solve these problems. For the proposed modifications

for EACH process, you need to (4 points)

a.

Describe the modif

ication or re

-

design you are proposing by

identif

ying specific activ

it

ies and information flows

that would be

added or eliminated from the

"

As

-

Is

"

process model.

Do not

draw a

new

"

To

-

Be

"

process model. Just write

in a paragraph your

recommendations and why they are needed.

b.

If your modification requires an information system, please state the

type of IS needed (ex. TPS, MIS, EIS, ERP) and the reason for it.

Hint

...

.. you may want to consider the principles of bu

siness process re

-

engineering