The business process:

Based on the request for raw materials from the production department and the inventory on hand, the warehouse manager analyzes the raw material requirements, - this is usually done every morning at 9 AM, if there are any product not available or short, warehouse manager will create and send a purchase requisition to purchasing department, along with an estimate of how much goods are needed and when. The purchasing staff will evaluate the purchase requisitions from the warehouse, as well as from other departments, they may reject the purchase requisitions, for several reasons, for example, the product is no longer produces by the supplier, or there is a substitute product that is better or cheaper. They will issue a rejection report and give it to the respective department, the rejection report includes the reasons for the rejection. If the purchasing staff agrees with the purchase requisition, they will create the purchase orders (POs). Before the purchasing department could make any purchase, they need to select the suppliers and negotiate the terms and conditions of the purchase and put the information to the system. The warehouse staff will evaluate the rejected purchase requisitions, and evaluate it, based on the evaluation, they can make a new purchase requisition for new items the substitute for old items, the same item or just abandon it.

The purchasing supervisor will print the purchase orders - usually at noon, if he agrees on the purchase order he will sign it and then give it to the purchasing admin to send it to the supplier. If the PO rejected, the purchasing supervisor will make a cross mark and make notes on the PO, then return it to the purchasing staff. Purchasing staff based on the supervisor's refusal, will make revisions (change data on the computer) to the PO. This revision follows the previous procedure such as if there is a new purchase requisition, if it is canceled/rejected, then a rejection report will be made and given to the department who requests it, if it is revised, for example changing the supplier or the delivery date, then it will be analyzed again by the supervisor and so on.

After the supplier receives a PO from PT. ABC, they will send the goods according to the specified date. Along with the goods sent they also include the PO from PT. A B C. The warehouse reception staff will check the goods sent if any goods are not as expected, for example, products that are sent are different or damaged then the product will not be accepted and returned to the sender. If it is received, the warehouse reception staff will write down the new qty(quantity) next to the qty in the PO form if the amount received is different, but if it is the same, the goods reception staff will give a circle to the qty in the PO, then the warehouse purchasing staff sign the document, and give it to the warehouse admin to be inputted to the computer, after being inputted the warehouse admin print the receiving report, the first printing will be given to the supplier, the second printing will be given to the accounting department and the last one will be filed.

The Suppliers based on the receiving reports that are due will make the invoices to PT. ABC, and send it to PT. ABC, along with the invoices the suppliers also put the PT.ABCs receiving reports. Account Payable (AP) staffs after receiving an invoice from the supplier, they will check it using the computer, whether the receiving report exist, all information is matched and has not been collected if it is valid and has not been collected, and the AP staff will look for the receiving report in the archive. The three documents, the Invoice from the supplier, the receiving report from the supplier, and the receiving report from the archive, will then be given to the credit note staff. This staff will search the credit memo from the supplier and if found it, it will be given to AP supervisor along with three documents from the AP staff, AP supervisor will analyze it if the supervisor found there's no issue with the document the supervisor will sign it and using the system, the AP supervisor then key in the data to the system and produce the disbursement ticket. The disbursement ticket contains the information on how much the supplier will be paid (the sum of invoices deducted the sum of credit memos), the bank account, etc. The disbursement tickets and the documents will be given to disbursement staff. If the supervisor not agrees, the supervisor will send the documents to the finance manager to have a resolution. The disbursement staff based on the document tickets will make a transfer order to the bank using the bank system. At the same time, the disbursement staff also marks the receiving reports as paid in PT. ABC system, and prints the disbursement report from PT. ABC system, and gives it to the finance manager. The finance manager based on the disbursement report release the transfer order in the bank system, then it will be processed by the bank, and the money will be transferred to the supplier's bank account.

Every morning the warehouse staff will print two-ply of factory delivery order that contain the goods requested by the production department that need to be sent by that day. Then along with the document they send the raw materials (the goods) to the factory, the factory staff will compare the document and the goods, and if there is a discrepancy, the factory staff will make a note on the documents and sign it, if theres no discrepancy the factory staff simply sign the document. The factory staff keeps the first copy of the report to be filed, and hand over the second ply of the report to warehouse staff, as proof that they already receive the good. The warehouses staff will give the document to their warehouse admin. Based on the document that factory staff has been signed, the warehouse admin will key in the data to the computer to update the inventory.

Every evening the warehouse staff also do a partially inventory checking to make sure that the computer on hand aligns to the physical on hand, and if there are any differences between the quantity of goods and the data on the warehouse computer, the warehouse staff will update the items on the inventory adjustment menu with reason partial inventory. In addition to partial inventory, the warehouse also searches for damaged goods to be destroyed or returned to the supplier. For items that will be destroyed, they need to make a report to be signed by their manager and to update the data on the computer. Its done through the inventory adjustment menu with reason bad stock. As for items that can be returned to suppliers, the warehouse will produce a report of the return of goods. For the adjustment report, they print two-ply, after their manager sign it, the first ply will be given to the accounting department and the second ply for their file. To return the bad stock to their supplier the need to print three plies, the first ply for suppliers, second ply to finance and the last to keep as an archive

Every morning, the production manager evaluates and edits the work plan on the computer screen, based on this work plan, they do the production. The production manager can make changes, and immediately approve the work plan through the system. Once it approved, the production manager will print a two-ply production plan - one for him to organize the works and archived it, while the other will be given to Quality Control staff (QC). Every afternoon, the quality control staff will check the production results and compare them with the work plan. Then they enter data into the computer to update data such as the finished goods, the bad finished good - the good that does not meet the criteria, then the QC staff will print production reports for that batch on two-ply paper, the first copy to be archived and the second copy to be given to the packaging staff. Based on the production report of this item, the packaging staff does the packing of the goods. After completion, the packaging staff will enter the number of items that already packed the items that are ready to be sold to the computer and print an item packaging report - this report consists of 2 copies. This report is then given to the production manager to be signed, the first copies to be archived and the other one will be given to warehouse staff. After the warehouse staff gets this report, the warehouse staff will take the goods that are ready to be sold at the factory, and take to the warehouse to be kept. Based on this report the warehouse admin enters data to the computer, so the sales department can find out the number of items that are ready to sell.

PT. This ABC sells its products online. Their web site not only displays items that are in stock, but also products that are out of stock, including new models that will be produced or already in the production line. But the computer will not display products that are out of stock and will not be manufactured anymore. To buy the goods, the customer visits the company's website, browsing, and if there is something that interested to them, the customer can click on the item to order the goods or to get more information. If a customer clicks on the product, the computer will display detailed information, including the availability of the product. If the product is still in production, then the computer will display an estimate of the product that will be available to the customer. The computer will ask the customer to

put the qty to order. And the computer will calculate and display the price, and ask the customer to confirm the order, once the customer confirms, the product will be put on the basket. After filling the order quantity and confirm the order, the customer can continue to browse at the products and shop again or choose to check out. At the time of checking out, the customer will be given a display in the form of a "shopping basket" containing the products ordered by the customer, the shipping address if available and the total to be paid by the consumer, including shipping costs, at this time the customer is allowed to change the order quantity by bigger or smaller, can be filled 0 to cancel the order, at this time too, the computer still have to make sure that the customer did not fill the qty order more than the amount of stock that available to order.

For the first order, the customer needs to provide the shipping address that will be stored on the system. But for the next order, the computer will display the shipping address, and the customer can change the address. If there is a change of shipping address, the computer will automatically recalculate the shipping costs. Customers can close the browser at any time and leave this menu, or continue to payment. If the customer has successfully made a payment, the computer will notify the warehouse that there is a new order. The computer in the warehouse immediately prints a delivery ticket. Each stage of the delivery process is completed the warehouse will update the ticket status, there are several stages that exist: Goods prepared (pick and pack), sent, arrived and received. Each of these stages completion the customer will receive a notification via email.

Every Friday the sales manager will analyze sales data and trends to ask the production department to produce the specified product to be sold, the sales manager does it manually in the Excel file, after he determines the product and the amount to be requested then he will give this file to the sales admin to make requests for production to the production department is done through their system by key in the product request for production to the system. After the sales admin has done with this task, the sales manager checks the data, makes any correction and approves it. Once it approved by the sales manager, the production manager will be notified through email. Base on the capacity of the production, the job queue, the production manager will create or update the weekly production plan. And request to warehouse manager to prepare the raw material and send it on specified date, by key in the raw-material request on the system. Once the sales manager key in the data, the warehouse manager able to see the data right away through the systems, so they do not need any print out.

Questions:

LO: illustrate the roles of Information Technology in Business Process and Organizational activities to achieve its goals.

1. As we can see, in our case above has no human resources and payroll cycle. Please do some research on Human Resource and Payroll cycle, and base on the research please create the HRD and payroll cycle that not too complex and suitable for this case as a base to create the narration, the narration at least contains: Hiring process, Payroll calculation process, Payroll disbursement process!(10%), Base on the narration please create the system flowchart! (15%)

LO 1: describe the model of business process 2. Based on the case above including the human resources and payroll cycle, please explain the linkages between cycle in the form: Diagram (7.5%) and table including the explanation! (7.5%)

3. Based on the case above all cycles, including human resources and payroll cycle on question number 1, create the DFD:

Context Diagram (only one) 10% Level 0 Diagram (only one) (15%) Level 1 Diagram (as many as the number of the cycles dont combine them

LO 1: describe the model of business process

4. Describe the main activities, the information needed for General Ledger and Reporting Process! (5%)

LO3 : illustrate the roles of Information Technology in Business Process and Organizational activities to achieve its goals

5. Explain the general threats in General Ledger and Reporting Process, and describe the controls that can be used to mitigate those threats! (10%)