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11.What are the typical business processes?
There are three types of business processes:
1. Core processes: processes that constitute the core business
and create the primary value stream. Typicalcore processes are
Purchasing, Manufacturing, Advertising and Marketing, and
Sales.
2. Administrative processes: the processes that govern the
operation of a system. Typical administrativeprocesses include
"Corporate Governance" and "Strategic Management".
3. Supporting processes: which support the core processes.
Examples include Accounting, Recruitment, Callcentre, Technical
support.
A business process begins with a mission objective and ends with
achievement of the business objective.Process-oriented
organizations break down the barriers of structural departments and
try to avoid functionalsilos.
A business process can be decomposed into several sub-processes,
which have their own attributes, butalso contribute to achieving
the goal of the super-process. The analysis of business processes
typically includesthe mapping of processes and sub-processes down
to activity level.
Business Processes are designed to add value for the customer
and should not include unnecessary
activities. The outcome of a well-designed business process is
increased effectiveness (value for the customer)and increased
efficiency (less costs for the company).
Business Processes can be modelled through a large number of
methods and techniques. For instance, theBusiness Process Modelling
Notation is a Business Process Modelling technique that can be used
for drawingbusiness processes in a workflow.
11(a). Describe business functions in anorganisation.
The Functions that are performed in any
businessorganization:
Production or acquisition of inputs required to sell goods
andservices.
Marketing, a strategic function of creating customers.
Sales, or implementing the marketing strategy.
Finance, controlling the company's use of the basic
resourcemoney.
Administration and personnel, the management function of
planning, directing and overseeingeverything in the business
Marketing
If the firms marketing strategy calls for aggressive marketing
and promotion.Separate department mebe needed for advertising.
Finance
If its finance strategy calls for low debt, itmay need only a
small finance department.
Human resource
Human resource strategy polish the newmanagers or employees And
develop skillsof new managers atlower levels in theorganization
Research and developmentR & D
R&D is about improving the products afirm makes or the way
it makes themMany large firms havededicated R&D staff But
R&D is an expensive activitySo firms often rely on usingthe
ideas of othersin some industries, R&Dis the main source of
future business growth
Examples are
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Car manufacturers
(investing large sums of capital in developing new vehicle
models)
Pharmaceutical companies
(reliant on newdrug products for future growth)
11(b). Describe the decision making processes inan organisation
or describe Simons Decisionmaking model.
Decision making is a process in which the decision maker uses to
arrive at a decision. The core of this processis described by
Herbert Simon in a model. He describes the model in three phases
as
(a)Intelligence; (b)Design; and (c)Choice.
Intelligence: Raw data collected, processed and examined.
Identify a problemcalling for a decision.
Design: Inventing, developing and analysing the different
decisionalternatives and testing the feasibility of
implementation. Assessthe value of the decision outcome.
Choice: Select one alternative as a decision, based on the
selection criteria.
In the intelligence phase, the MIS collects the data. The data
isscanned, examined, checked and edited.Further, the data issorted
and merged with other data and computations are made,summarised and
presented.In this process, the attention of themanager is drawn to
all problem situations by highlighting thesignificantdifferences
between the actual and the expected, thebudgeted or the
targeted.
In the design phase, the manager develops a model of theproblem
situation on which he can generate andtest the differentdecisions
to facilitate its implementation. If the model developed isuseful
in generating thedecision alternatives, he then furthermoves into
phase of selection called as choice.
In the phase of choice , the manager evolves a selection
criterionsuch as maximum profit, least cost,minimum waste, least
timetaken, and highest utility. The criterion is applied to the
variousdecision alternativesand the one which satisfies the most
isselected.
12.Describe sales order processing.
Sales order processing is an important step in a series of
processes that leads directly to revenue for yourcompany. And the
way your company handles its sales orders says a lot about it.
Traditionally, most sales orders arrive via fax, and processing
these can be a costly, manual and time-consuming process. But if
you could process your orders quickly, efficiently, and correctly,
every time, youwould not only generate revenue more quickly, you
would also promote better customer satisfaction, which
leads to repeat business. To process orders correctly and reduce
customer inquiries about order status, youneed a tool that can both
automate your processes and integrate with your existing enterprise
systems.
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13.Write short note on purchase order.
A purchase order (PO) is a commercial document issued by a buyer
to a seller, indicating types, quantities, andagreed prices for
products or services the seller will provide to the buyer. Sending
a purchase order to asupplier constitutes a legal offer to buy
products or services. Acceptance of a purchase order by a seller
usuallyforms a one-off contract between the buyer and seller, so no
contract exists until the purchase order isaccepted.
14.Why data validation necessary? What are thedifferent types of
data validation checks that are kept ina program.
Data validation is done to ensure a program operates on clean,
correct and useful data.
Following are some of the checks that may be carried out for
validation data.
Presence check:- The validation program checks that all
mandatory items of data are present. For example, thecustomer
account number couldnt be omitted on a sales order.
Character count:- here the exact number of characters are
checked at input.
Picture count:- This check ensures entire fields are in correct
format.
Range check:- This checks that a field lies within a particular
range.
Check digit check:- Lengthy code numbers and customer numbers
are prone to error on entering. So analgorithm called check digit
check ensures correctness of the entry.
Algorithm for check digit check is given below:
(i) First assign weight to each digits starting from the low
order position in the data using values 2through 10 and moving to
the left.
(ii) The next step is to multiply the weights by the
numbers.
(iii) The numbers are summed.
(iv) The sum is divided by the modulus number giving a result
with a remainder.
(v) Subtract the remainder from the modulus divisor and get the
result. The result number is the checkdigit check.
15. computerised financial accounting system?
Financial accounting system gives the professional accountant
the tools to review the financial record of aclient while reducing
time spent by the accountant in collecting basic document and time
for moresophisticated analysis.
A strong accounting system is one basis for strong management.
The proper design of the accounting isessential through planning is
important. Computers help in executing all the above
characteristics fast.
16.What is Financial Accounting? Explain withexample.
The financial accounting system maintains the vouchers, books of
accounts and ledgers and assures theintegrity of the companys
business transactions. In most organisations, financial accounting
is totallycomputerised.
Sales accounting and analysis system is described below.
A sales accounting and analysis system consists of the following
components.
a) Editing customer orders for codification and description.
b) Checking the credit status of the custumer.
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c) Checking availability of items in stock.
d) Updating the stock records and taking action for replenishing
stocks.
e) Preparation of invoice from dispatch notes.
f) Preparation of statement of accounts.
g) Sales analysis and profitability report.
17. Computerising of payroll.Pay is the key to work. It is very
important from the point of view of the organisation as well as
theemployee that the pay is calculated without error and on time.
So, speedier and accurate maintenance ofthe payroll becomes a
matter of importance. Automation does this to a large extent.
The payroll system maintains detailed records of all employees
and permits authorise personnel to obtain avariety of reports based
on an individual employee or a selected group of employees
The payroll data file should contain following information.
(i) Employees pay history
(ii) Pension plan
(iii) Vacation time accrual
(iv) Sick time accrual
(v) Total earnings
(vi) Loan details
(vii) Deductions
(viii)Net earnings.
18.What is control break processing?
In a computer program, a control break occurs when there is a
change in the value of one of the keys on whicha file is sorted
which requires some extra processing.
The control break processing procedures is as follows:
1. Read the file.
2. Move the control field in equal to the hold area in the
working storage.
3. As long as control field is equal to the hold area , execute
the detailed routine for the input record. Thismeans, add the
appropriate amount to a control total, print the detail record and
read the next record.
4. If the control field is not equal to the hold area
i) Print the control total.
ii) Initialise the control total field to zero.
iii) Reinitialise the hold field with the new control fild value
if there are more records.
iv) Process the detailed record as in step 3.
v) Print headings on a new page if each control total is to
appear on a separate page.
vi) If required after all records have been processed perform a
control break to print the lastcontrol group..
19.What is data handling?
Data handling refers to several level of managing data. These
are
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(a) Data handling is the part of the operating system that
manages the physical storage and retrieval ofdata on a floppy disk
or other storage device.
(b) Data handling refers to the software that allows for
creation, storage, retrieval and manipulation offiles interactively
at a terminal or personnel computer.
(c) Data handling is the management of all data and information
within an organisation and includes dataadministration, the
standards for defining data and the way in which people perceive
and use it intheir day to day tasks
20.What is Pseudo codes?
Pseudo code is a program analysis tool that is used for planning
program logic. It is an imitation of the actualcomputer
instructions and these are written in ordinary natural language
such as English.
Example:
Pseudo code for drink selection:
IF Tea
Then Pour a cup of tea
Else pour a cup of coffee
End IF
