a. Identify at least three weaknesses in O'Brien Corporation's revenue cycle proce dures, explain the associated problem, and propose a solution. Present your answer in a three-column table with these headings: Weakness, Problem, Solution. b. Draw a BPMN diagram to depict O' Brien Corporation's revenue cycle revised to incorporate your solutions to step a.
O Brien Corporation is a midsized, privately owned industrial instrument manufacturer
supplying precision equipment to manufacturers in the Midwest. The corporation is 10
years old and uses an integrated ERP system. The administrative offices are located
in a downtown building, and the production. Shipping. and receiving departments are
housed in a renovated warehouse a few blocks away
Customers place orders on the company s website, by fax, or by telephone
. AI
sales are on
credit, FOB destination. During the past year, sales have increased dra
matically, but 15% of credit sales have had
to written off as uncollectible. including
several large online orders to first-time customers who denied ordering or receiving the
mercanise
Customer orders are DiCked and sent to the warehouse. where thev are placed near
the loading dock in alphabetical sequence b customer name. The loads dock is used
both for outgoing shipments to customers and for receipt of incoming deliveries. There
are l0to
20 incoming deliveries every day, from a variety of sources.
The increased volume of sales has resulted in
a number of errors in which customers
were sent the wrong items. There have also been some delays in shipping because items
that Supposedly were in stock could not be found in the warehouse. Although a perpetual
inventor iS maintained, there has been no phsical count or inventory for two vears
When an item 1s missing, the warehouse staff writes the information down in a log book
Once a week.
, the warehouse staff uses the log book to
update the inventory recoras.
The system is contigured to prepare the sales invoice only after
- shipping employ
ees enter the achal
quantiles sent to a customer, thereby ensuring that
customers are
dilled ony for 1lms sent no 1r on Dack ordr.
REQUIRED
a. Identify at least three weaknesses in O'Brien Corporation's revenue cycle proce
dures, explain the associated problem, and propose a solution. Present your answer
in a three-column table with these headings: Weakness, Problem, Solution.
b. Draw a BPMN diagram to depict O' Brien Corporation's revenue cycle revised to
incorporate your solutions to step a.
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