The Bondstreet Company sells medical supplies to hospitals, clinics, and doctors' offices. Customers place orders over the phone to the Bondstreet customer fulfillment center. Bondstreet uses an ERP system for all of its business processes. The sales process starts when the custmers calls the Bonstreet fulfillment center and gives his name to the CSR. The CSR keys the customer name into the ERP system, and the system retrieves the customer record and displays that data on the sales order entry screen. The CSR examines the data on the screen to ensure that the correct record has been retrieved. If everything checks out, the CSR enters the computer compares the amount of the order to the available credit to ensurethat the purchase does not exceed the credit amount limit and allocates the inventory. After the order has been entered, the clerk saves the order, and the computer creates a sales order record, prints an picking ticket in the warehouse, and displays the sales order number to the CSR. The CSR reads the sales order number to the customer. In the warehouse, clerks pick the goods from the shelf, record the quantity picked and the lot number on the picking ticket, and bring the goods and attached picking ticket to the shipping department. The shipping clerk scans the sales order number from the picking ticket, and the computer displays the orderon the screen. The shipping clerk then scans each item and saves the shipment data. The computer updates the sales order and inventory master data (for lot number and quantity shipped) and creates a record for billing (in the billing-due list data store). The computer also prints a packing slip on a printer in the shipping department that the shipping clerk attaches to the goods and gives the goods to the carrier for shipment to the customer. A: Draw a systems flowchart. B: Prepare a control matrix, including explnations of how each recommended existing control plan helps to accomplish - or would accomplish in the case of missing plans - each related control goal. Your choice of recommended control plans could come from Exhibit 10.1 (pp. 388-390) plus any additional technology-related control plans from Chapter 9 that are germane to your company's process. Assume that the effectivemess goals in Figure 10.13 (pp. 384-385) are appropriate for the operations process in the case assigned by your instructor. C: Annotate the flowchart prepared in part (a) to indicate the points where the control plans are being applied (codes P-1, ...., P-n) or the points where they could be applied but are not (codes M-1, ..., M-n).

racy: The automatic retrieval Explanation of Cell Entries Entries for Control Matrix in Figure 10.13 EXHIBIT 10.1 ation of Cell Sales order input accuracy: The auto customer information when the customer entered and inventory data when an i helps ensure the accuracy of the input data beentered keys less data and makes use of the customer master data that were previously entered and ived code ta when an item number is P-1: Enter customer order close to where the order is rece Effectiveness goals A and C efficient employment o resources: Use of this strategy places CSRs in a position to process customer orders immediately, and being familiar w the orders allows the CSRs to input the orders more quickly which leads to timely acknowledgements and shipments an more orders processed by each representative (efficiency) Sales order input completeness: By having the CSRs enter the sales data rather than forwarding to a data e the risk of orders getting lost should be reduced Note: We assume, for example, that input order ted for reasonableness. le, that input order quantities are edi nput completeness: By having the CSRs enter P4: Programmed edit checks. ntry function. Effectiveness goals A and C By editing and correctir as it is input, rather than later, we can process orders in . Sales order input accuracy: Because CSRs are familiar with the type of data being entered and can correct any input errors on the spot," input accuracy should be improved. Efficient employment of resources: Programmed edits pro- vide quick, low-cost editing of input data. Sales order input accuracy: By editing input data andr ing erroneous data, input accuracy is improved. P-2: Customer credit check Effectiveness goal B: The credit check is performed by ascer . taining that the amount of the customer order (plus the amount n orders and the amount of any outstanding receiv- ables balance) falls within the credit limit established by the P-5: Compare input data with master data credit department. if the request flls outside the limit, then the Note: The CSR compares the screen data to the input custom item numbers to determine that the numbers were input control terminates the sale Security of resources: Termination of orders exceeding credit limits ensures that the organization protects its resources by dealing only with customers who have demonstrated an ability to satisfy their liabilities Sales order input validity: Valid sales orders include those that fall within authorized credit limits (i.e., there is a reason able expectation of payment) . Effectiveness goals A and C efficient employment of resources: Orders and shipments may be processed more quickly and at a lower cost if errors, such as entering the wrong customer number or wrong item numbers, are detected and prevented from entering the system. . Security of resources, sales order input validity: If there is no customer record in the customer master data, the sale to this customer may not be authorized, and any inventory shi Sales order input accuracy: By comparing the input data, such as customer number and item numbers, to the data on the screen, the CSR can ensure that data are input correctly. P-3: Populate input screens with master data. e Effectiveness goals A and C efficient employment of resources: Because the input sales order screens are populated with data from customer and inventory master data, the CSRs use fewer key strokes for each input (efficiency), enter data more quickly, and provide more timely acknowledgement of customer orders and shipment of goods to customers Sales order input validity: If the CSR correctly enters a cus tomer code, and the system does not populate the input with customer master data, we presume that there is no matching customer master data and no authorized customer. This pre- vents the entry of invalid orders Shipping notice input validity: When the shipping clerk scans the picking ticket, the system should populate the input with sales order master data. If not, we presume that there is no P-6: Preformatted screens. Effectiveness goals A and C, efficient employment of resources: This simplifies the data entry process, allowing the CSR to enter orders more quickly, which leads to mor timely acknowledgements and shipments and allows mor orders to be input over a period of time (efficiency Sales order input accuracy: Preformatted screens may input errors by populating certain fields and re Incorrectly formatted fields, thereby preventing the omitting data or entering data with errors. reduc matching sales order master data and, therefore, no autho- rized order. This prevents the entry of invalid shipments