Computer Science 1032A/B Chapter Notes - Chapter 2: Total Quality Management, Six Sigma, Executive Information System

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Computer Science 1032 Chapter 2
How did the stuff get here?
- example: a cup of coffee from Tim Hortons
- interaction of business processes
- organizations make use of these processes to deliver goods and services to
- business processes are central to what every organization does
What is a Business Process?
Business Process series of tasks or steps designed to produce a product or service,
best thought of as a system so its sometimes referred to as business system
Business processes include inventory management processes, manufacturing
processes, sale processes, and customer support processes
Inventory Management Process
Goal ensure that is enough inventory to fulfill customer’s requests while making
sure that there is not too much inventory
Works to balance the demands from customers with the inventory purchased from
Inventory management system
- supports the process by collecting information
- inventory database keeps track of what customers have ordered (quantity
ordered) and what is currently in inventory (quantity on hand)
- when stock in inventory hits a critical point, the Reorder Point When a good
hits this point new time to order new supplies
- each good has its own reorder point
- manager creates a Purchase Order sent to supplier, supplier receives the
Purchase Order and ships the appropriate goods along with the Shipping
Invoice to the restaurant
- Shipped Goods are first checked, newly received goods are placed in
- Inventory database is updated with Quantity Received
- Supplier is then paid for the goods the supplier has shipped
- shows element of the business process
- shows interaction of the elements
- different representations can be used
- modeling and design system analysis and design
Components of a Business Process
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- consists of purely manual activities people following procedures,
automated or controlled by computers (hardware directed by software) or
combo of both
- items of value
- example: case of milk
- both suppliers and customers are considered resources have value
- external, not under the business’ direction and control
- structures within the business process
- resources can be stored in facilities ex. Factories
- activities use information to determine how to transform the inputs they
receive into the outputs they produce
Quantity Received (information) and
Shipping Invoice (information) into
Payment To Supplier(resource)
Data is meaningful bits of information *
Example: data hourly wage, information average wage
Data - facts and figured collected, store, recorded, processed not meaningful on
its own
What is Information?
Information derived from data, data recoded facts of figure
- difference that makes a difference
- processed data something we do to data to produce information
Characteristics of Good Information
- correct and complete data
- crucial for management
- check to ensure accuracy
- provided in time for its use
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