Acct6001 Accounting Information Systems For Assessment Answers

Questions:

Answers:

Statement of scope

The given “Order processing and supply” process of GAAM (Global Athletic Apparel Manufacturer) starts with placing of the orders by the retail stores and ends when the delivery of the products to the specific retail stores.

Desired outcomes and Stakeholders

After analysing the given case study for Global Athletic Apparel Manufacturer, it can be observed that, due to the irregular placement of the orders it is difficult for the organization to manufacture and make available different types of clothing and athletic wares for the stores. The desired outcomes of this process are efficient and accurate delivery of the ordered products by the stores. In addition to that, the through a proper order processing model the it is desired by the organization to minimized the cost that is required to manage the return of the products and handling of the returns from the customers. Moreover, the process model should enhance the amount of accounts receivable which is currently decreased from 12.5 to 10.5 times per year.

Different stakeholders of this process are the customers or the retail stores, the Customer representatives, accounts receivable department, the warehouse assistant, courier responsible for

Existing business process model 

Process flow and exceptions

 In the above business process model, it starts with the placing of orders by the retail stores. In the next step, the orders are received by the customer representative of the GAAM. The Customer representative makes two copies of the order placed by the retail store. One of the copies are sent to the accounts receivable and another is sent to the warehouse assistant in order to get confirmation about the availability of the products.

In the next stage, when the ware house assistant confirms the availability of the products in the warehouse, the goods are packaged and goods release forms (two copies) are prepared. The packed products are sent to the shipping department. After the delivery of the products are done invoices is prepared depending on the details of the customer order copy and gods released from. The invoices are sent to the customers each weekend and payment by them is done by cheques. The cheques are forwarded by the customer representative to the accounts receivable department of GAAM.

Business rules for the business process

Following are the some of the business rules that needs to be followed by the organization to improve the performance of the processes,

1. The orders by the customers or the retailers will be packed and delivered only after confirming the number of orders placed by the retail customers.
2. The retailers or the customers having outstanding payable amount for the previous order would not be able place new order.
3. The orders by a retailer would not be confirmed if the time gap between the previous and latest order is less than one week.
4. The discount for the orders would not be applicable for the customers who had not paid the full amount for the last order. 

Entry Criteria and Inputs

In order start and initiate the process it is important for the customers or retailers to clear all the outstanding payments for their previous orders.

When the two copies are made of the customer order, it is important for the company to again confirm the quantity of the product by contacting the customer.

The invoice for the order will be will be sent only after the details of the shipment (Goods released form and customer orders) are same and verified by the employees of GAAM.

Exit criteria

The exit criteria for this process are,

Successful and accurate shipment of the products to the retail stores or the customers.

The payment for the shipment of the orders are received by the company successfully.

Current strengths, inefficiencies in the present model

The strengths of the present process model are,

The availability of the products are confirmed before the orders are accepted by the GAAP.

Inefficiencies of the present model are,

The whole process is operated manually by the business organization.

The stock of the products at the different stores are not tracked by the business organization in order to manufacture the specific products that are required by a specific store.

Due to manual processing of the orders, the whole process is exposed human errors due to which the quantity of the products or the payment for the shipment may not match with the actual orders.

Business process reengineering

In order improve the performance of the business process of the GAAP, it is recommended to use the POS, so that the business organization can track the sale of products and according to that manufacture the products that are demanded by the custmers.

References

Bhaskar, H.L., 2016. A critical analysis of information technology and business process reengineering. International Journal of Productivity and Quality Management, 19(1), pp.98-115.

Esbenshade, J., Vidal, M., Fascilla, G. and Ono, M., 2016. Customer-driven management models for choiceless clientele? Business process reengineering in a California welfare agency. Work, employment and society, 30(1), pp.77-96.

Huang, S.Y., Lee, C.H., Chiu, A.A. and Yen, D.C., 2015. How business process reengineering affects information technology investment and employee performance under different performance measurement. Information Systems Frontiers, 17(5), pp.1133-1144.

LUCA, M., 2014. Business Process Reengineering. Risk in Contemporary Economy, pp.233-236.

Willmott, H., 2016. Process Reengineering, Information Technology and the Transformation of Accountability: The Remaindering. Information Technology and Changes in Organizational Work, p.62.