Question

Create a system flowchart and review the controls in the process. See attached document for details.
Flowchart Assignment Business Process Diagramming and Control Evaluation The project is based on the business processes and controls for Order Entry/ Shipping and Billing / Cash Receipts at NashGulch Furnishings. NashGulch Furnishing sells high end, i.e. expensive and unique, home and office furnishings to design studios, building contractors, and architects. Customers place orders over the phone to the NashGulch customer fulfillment center, Nash Gulch uses an enterprise system for all of its business processes. Nash Gulch Furnishings Required (summary): 1. Systems flowcharts for Order Entry/Shipping and Billing processes a. Annotated to show where controls occur (or where a control might be missing) 2. Control checklist (based on the control matrices for the processes) 3. A brief, i.e. page, "controls analysis to summarize the key business process and controls. A good idea is to focus on what is done very well and what is done poorly (.e. missing or weak controls). Required (Details): 1. Draw systems flowcharts for the business processes. See pages 3 through 4 for company process details. Note that the business processes may require either multiple pages or multiple individual flowcharts (for each process). Reference materials that you may find useful: a. Systems Flowcharting: Ch 4 AIS textbook and class overheads b. Application Controls checklists: Ch 9 AIS textbook and Ch 1 in the Classic Rockers textbook PDF c. Order Entry / Sales business process: Ch 10 AIS textbook d. Billing and A/R business process: Ch 11 AIS textbook e. Your system flowcharts must be completed in Excel (or Visio). Previously, Excel files were provided in Blackboard that can be used as starting points. Follow the guidelines for Input - Process - Output and the patterns used for manual paper vs system processing of data. 2. Analyze the controls in place and possibly missing in the processes. Use the control matrix examples in the textbook (control matrices and the detailed control plans) as a "checklist to review the potential controls that may be present and/or missing in the processes. Cross- reference these controls (present and missing) onto the system flowcharts with annotations (i.e., control numbers such as P-1, P-2, M-1). The end results of step 2 will be

Answer 1

Business system flowchart

A flow chart, or flow diagram, is a graphical representation of a process or system that details the sequencing of steps required to create output. A typical flow chart uses a set of basic symbols to represent various functions, and shows the sequence and interconnection of functions with lines and arrows.

E-Commerce Workflow Diagram Customer Customer Service Online Order Credit Card Transaction Delivery Online Payment Quality Assurance Warehouse

The 6 steps to making a business process flow diagram

1. Determine the main components of the process.
2. Order the activities.
3. Choose the correct symbols for each activity.
4. Make the connection between the activities.
5. Indicate the beginning and end of the process.
6. Review your business process diagram.

1. SYSTEM FLOWCHART

• Order entry/Sales business process

-- - - D-- Orders Process Order in Warehouse Receive Orders Ship Products D- - - - - -

Customer Call Placing Order Customer Service Representative (CSR) Shipping Warehouse Goods to the customer

• Billing and A/R Business Process

Billing Department Billing Clerk Execute Billing program Job Completed Sending Electronic Invoice Examine Sales Order Data

2.CONTROL CHECKLISTS

At the heart of these high-frequency checks, however, are the questions you include in your actual audit checklists to verify processes are being done right. such as providing context on why and how to check individual items. Today, we’re examining 7 types of questions to consider for your process audit checklists, including:

• Safety
• Materials
• Motions
• Workstation design
• Process for reporting issues
• Documentation
• Follow-up

1. Safety

While companies tend to separate safety and quality, any expert will tell you that they directly influence one another. That’s why LPA checklists should verify that equipment is safe, workers use it correctly, and that they follow safety protocol. Example questions such as:

• Are employees wearing personal protective equipment (PPE) such as hearing protection, hardhats and/or safety glasses?
• Are machine guards are in place and functioning properly?
• Do workers follow standard safety procedures, using movements that reduce ergonomic risks?
• Is loose clothing tucked in and long hair tied back?
• Is safety equipment like fire extinguishers and eye-washing stations easily accessible and in working order?

2. Materials

Manufacturing quality products starts with having your materials in order, making this an important area to cover in your process audit checklist. Questions you might ask include:

• Does each workstation have the right materials in the right quantity?
• Are operators using materials in the correct order?

Do workers receive materials just in time, or are delays and excess materials contributing to waste and inefficiency?

3. Motions

The specific motions workers use can impact efficiency, quality and safety. Manufacturing audit checklists often cover motion-related questions, for instance:

• Do employees follow each step of standard work instructions?
• Are operators moving in the most efficient manner, or is there a better way to execute the task?
• Are assembly operations uniform, or are hiccups interrupting the process?
• How do people move materials? Are there steps that could be eliminated or improved?

4. Workstation Design and Location

Process audit checklists should incorporate questions that assess whether the workstation itself supports safety and efficiency. As you write your quality audit checklist, consider questions such as:

• Is this the best place in the plant for achieving this station’s objective?
• How does the location fit into your process in terms of shipping, receiving and safety?
• Does the station have the appropriate equipment and fixtures for the task?
• Are error-proofing devices available and functioning correctly? Do operators use them every time?

5. Process for Reporting Issues

A robust process for reporting issues is critical to creating a culture of quality. Because if you don’t act on issues quickly, people are less likely to speak up when they see problems.

Process audit checklist questions for this area might ask:

• What reporting options do employees have to express concerns about quality, safety or efficiency? Are people aware of these options?
• Do operators have direct access to manufacturing engineers to give feedback on work instructions?
• Are reported problems documented and corrected quickly, or is there a delay?

6. Documentation of Processes

Documentation, particularly standard work instructions, is the cornerstone to an effective quality process. Document-related quality audit checklist questions should look at issues like:

• What is the standard work documentation process on the shop floor?
• Can operators access the most recent instructions? If so, are they reviewing them regularly and do they actually understand the process?
• What’s the procedure for changing or modifying the documentation? Do operators regularly review changes, and can they explain them?

7. Follow-up

Your manufacturing quality checklist needs to cover follow-up and action items to make sure any non-conformances are handled appropriately. Areas to focus on are:

• What are the proposed changes to the process or area?
• How will you monitor and assess follow-up?
• What new questions should you occasionally check in future audits based on customer complaints or corrective actions?
• If you don’t use an automated platform, how will you rotate audit questions and ensure auditors have updated checklists?
• Can you address the problem on the spot, or will you need to focus on containment until root cause analysis and corrective action are complete?

Customer Support Process Checklist This is a checklist to run for each support ticket you process. 1 Ticket info 2 Determine the ticket type 3 Action Ticket: Simple Question 5 Technical Issue O App Question Sales Question Marketing/PR Question

Order Fulfillment Checklist Run this order fulfillment checklist to successfully prepare and deliver any items your customers order 1 Introduction 2 Receiving an order: 3 Record order details Confirm that payment has been received 5 Retrieving products from your inventory: 6 Check that the products are in stock Request the ordered products from your inventory 8 Record which products were taken from storage

The types of questions discussed here cover some of the most common categories of questions addressed in process audits. But this list isn’t comprehensive, nor will each category appear on every checklist.

3. CONTROL ANALYSIS

Controls are a subset of business systems which specifically help protect your company from careless, costly, or uninformed decisions or behaviors.

When you build a business versus a job, you want your team to have the authority to get tasks done without running everything past you. You want them to take the initiative and have the discretion to make decisions and get valuable work done without you being the limiting factor that slows the business down.

At the same time, you want to ensure that the business is protected--that the right things are getting done, at the right time, and hence producing the right results. Your business must be confident that resources are focused on what matters most, and that simple mistakes that can and should easily be avoided are.

Business Process Analysis:- Business Process Analysis (BPA) is a methodology for the analysis of a business with a view to understanding the processes and improving the efficiency and effectiveness of its operations. It describes the processes involved, parties participating, information exchanged and documents produced.

Processess

• The process starts off when the customer places the order.
• The ordered item is moved into the cart.
• The next step is payment option where the customer can either select online payment or cash on delivery (COD).
• If the payment is done via online then, stock verification is done.
• Once verified the item’s availability is measured. If yes, then it’s sent out for shipping. If no, then the item is arranged and shipped.
• The item is shipped to the desired location, and out for delivery.
• Here if the customer did not make the payment online then, the customer will make payment via cash on delivery (COD).
• Customer verification is done via signature or identification proofs.
• Then the item reaches the customer and the process stops.