IM341 Documentation Case Scenario

Motor Building Industry (MBI) Incorporated develops and manufactures natural-gas powered motors. Capital tools are

the larger, more-prominent assets of the organization. Because of their long life and significant value, considerable

attention is devoted to their acquisition and use. The following procedures are used in acquiring capital tools for MBI Inc.

(Note: Any online files in the scenario below refer to disk files.)

A capital tool is defined as any individual item that costs over $10,000. Capital tools must be requested by a

department manager and reviewed by the capital tool planning committee before they are submitted to the

purchasing department. When a manager needs a capital tool, he or she accesses an online capital tool purchase

request reference/help file and uses a customized computer application to complete the purchase request

application. A copy of the completed request form record is stored in an online request transaction file. The

capital tool planning committee chair monitors the request transaction file for new records and reviews the

purchase request for accuracy and completeness. Completed form records are updated (marked reviewed and

approved) and printed. The paper copy of the completed request form is then forwarded to MBI's purchasing

department.

MBI uses a supply chain software package that allows them to send an electronic copy of the order directly to the

appropriate vendor. To generate the electronic purchase order, the purchasing department manager uses the

request form received from the capital tool planning committee chair, along with an online vendor catalog file, to

create a purchase order record in the purchase order transaction file. The corresponding online purchase request

transaction file record is updated to give it a status of "ordered". The manager files the request hardcopy in a

processed request (paper) file. The documents are stored by requesting department code.

When a potential shipment is received, the receiving clerks at the dock uses their computers to access the

purchase order transaction file and confirm the order. The clerks receive the tools, inspect them, and use an

online application to create a receiving report in the receiving transaction file. The corresponding record in the

purchase order transaction file is updated to note that the order was received. The receiving clerks then route the

tool to the department that originally requested it. Receiving clerks print a hardcopy of the receiving report and

send it to the treasury department.

MBI has contracts with their vendors that require them to pay for each capital tool purchase as close to the time of

receipt as possible. In return, MBI receives significant cost savings from their vendors. To expedite this

arrangement, MBI does not have a separate "recognize liability" information process. Vendors send electronic

vendor invoices at the time of shipment. Once the treasury department receives the receiving report from

Receiving, a clerk compares the receiving report to 1- the vendor invoice received electronically from the vendor,

and 2- the purchase order record in the purchase order transaction file. Treasury then issues an electronic EFT

payment request to the bank, and sends a payment forthcoming notice to the vendor via email. The electronic

vendor's invoice, along with an electronic copy of the payment request is recorded to a payment transactions file.

Treasury also prints a hardcopy summary of the purchase and payment and sends it to the General Ledger system

for further processing. The receiving report hardcopy is filed by vendor name.

Required: All documentation must be uploaded to Canvas. ou may SCAN IN your hand drawn work to submit

electronically or use Lucid Chart for documentation. If you use Lucid Chart, you MUST provide a link to the site

in the comments section of the assignment AND UPLOAD A COMPLETED PDF .

1. design a context diagram of this process.

2. design a level 0 DFD of this process.

3. Compare this scenario with the following flowcharts. Indicate where the flowcharts DO NOT MATCH the

scenario by CORRECTING the documentation. You may design by drawing symbols or documenting in words

what is in the solution versus what should be.

4. Based on your learning, list any suggestions you would make to improve the information processing or data flows

described in this narrative.

NoteAlthough it is not necessary for this assignment, you are strongly encouraged to

learn to use a professional documentation tool such as Lucid Chart to enhance your

marketability as a professional. Ability to use this software tool will be tested in this

course.

IM341 Documentation Case Scenario

MBI Flowchart - Page 1 of 3

Requesting Department Capital Tool Planning Committee

Need identified

Approve request,

update and print

hardcopy

Request

Page

2

Request

Reference

File

Request

Transactions

Request

Transactions

New request

added

Create

Request

IM341 Documentation Case Scenario

MBI Flowchart - Page 2 of 3

Purchasing Department Receiving Department

Create

electronic

purchase

order

Record

Receipts

Request

DC

Request

Customer

Legend:

DC= department code

Receiving

Report

Page

3

Electronic

Purchase

order

Shipment

received

Request

Transactions

Vendor

Catalog

File

Payment

Transactions

Purchase

Order

transactions

Purchase

Order

Transactions

.

1

IM341 Documentation Case Scenario

MBI Flowchart - Page 3 of 3

Treasury Department

Create

Payment

Disbursement

(EFT)

Page

2 Vendor

Vendor's Invoice

Sent

electronically

Legend:

D= date

EFT = electronic funds transfer

D

Receiving

Report

Vendor

General

Ledger

EFT Payment

Forthcoming

notice

Bank

EFT

Request

Payment

Transactions

Purchase

Order

Transactions