Deck 7: Conversion Business Process

Question 1

Business rules describe appropriate actions to take based on process conditions.

Answer 1

True

Question 2

Conversion labor costs become part of cost of goods sold.

Answer 2

True

Question 3

Which of the following is not a basic activity in the conversion process?

A) Issue raw material
B) Perform work and account for labor
C) Ship products to stores
D) Authorize production

Answer 3

C

Question 4

Integrated Case
Serena's Tennis Togs,Inc.,was founded by one of the world famous women's tennis players to produce tennis and other sports clothing for the many women that appreciate Serena's unique fashion sense.Serena's Tennis Togs,Inc.(STTI)makes and markets multiple types of recreational clothing lines for women.This case focuses on STTI's acquisition/payment and conversion processes.
STTI Conversion cycle.When STTI gets an order from one of their distributors (sales orders are not modeled in this case),a manufacturing supervisor issues one or more production orders to authorize production of the clothing items.Each production order applies to only one finished clothing item.For cost accounting purposes,STTI determines the total standard labor and material cost for each production order.
STTI has carefully planned the material and labor required for each of its finished clothing items.Its master assembly plan specifies the sequence of steps (assembly operations)as well as the raw materials required to produce each finished clothing item.The master assembly plan also specifies the standard labor and material cost for each step.Each step in the master assembly plan is identified with a master assembly number.
The actual manufacturing process occurs in a series of assembly steps (each step is identified by control # in the production control records).Each step may use several types of material.STTI tracks the actual material and labor costs for each step in their production control records.STTI also tracks the total standard and actual costs for each production order.
The STTI manufacturing process employs two classes of employees: crafters and supervisors (model separately).Crafters get the raw materials from inventory and use them in the assembly steps.Each assembly step may involve several crafters,and crafters may work on several assembly steps.
The crafters are paid on an hourly basis.Production supervisors are paid salaries and bonuses.(Model them separately).
STTI Purchases.STTI's financial success depends on the quality of their products,so the company buys only the highest quality raw materials and follows a structured acquisition process.First,the buyers issue purchase orders to vendors for one or more required raw material items.Second,the vendor ships the products to STTI,and STTI records purchases upon receipt and acceptance of the items.In some cases,vendors fulfill several purchase orders with one shipment.
STTI takes advantage of all prompt payment discounts.If multiple vouchers are due to the same vendor on a certain day,the cashier combines those into one payment.STTI pays for each purchase in full,less any applicable discount,on the day that the payment is due.
After receipt and acceptance,each raw material item is stored in its designated bin to facilitate its issue to the production process,although each bin may hold several different types of raw material.Each bin is color-coded for easy identification.
General.All economic agents,resources,and types are put into the database before any relationships with other entities are instantiated.STTI tracks its employees in separate classes according to their particular job,although each internal agent is keyed by employee#.(So,don't model one Employee agent; model separate internal agents,e.g.,buyers,crafters,cashiers,supervisors.)
REQUIRED: 1)use the information above and the list of attributes below to draw a UML class diagram showing the classes,associations,and multiplicities,2)prepare a listing of the tables necessary to support STTI's processes using all the attributes.Name each table and clearly identify primary keys with PK and foreign keys with FK.List your tables in the following order: RESOURCES,EVENTS,AGENTS,TYPE IMAGES,and LINKING.Use only the following list of attributes (remember that there should be no classes without attributes).
Attributes

Question 5

Which of the following types of business is least likely to employ a conversion process?

A) Restaurant
B) Retail store
C) Bakery
D) Machine shop

Question 6

Which of the following best describes the purpose of an intermediate error event?

A) Directs sequence flow when an activity aborts
B) Delays the sequence until a specified time
C) Waits for external messages
D) Ends a process

Question 7

Gateways can direct sequence flow to support looping.

Question 8

Integrated Case
Gary Cooper (yes - that is his real name,and his nickname is Coop)loves classic cars,but he knows he will never be able to afford most of them.He also knows that most classics are unreliable and expensive to own.Plus,they do not have the features and comforts of modern cars.So,he created a company that constructs custom replicas of classic cars.His replicas have modern mechanical parts and many of the features that can be found in today's cars.More importantly,they meet modern safety and emission requirements.This case describes Coop's sales and production processes.
Coop's Cars: Coop developed a list of replicas for the most sought-after classic cars.He sells replica European Sports Cars,such as Porsche,Ferrari,and Jaguar,as well as some American muscle cars.Coop tracks each car,engine,and color combination with a custom car product number.The customer gets to select among the various engine and color options for his/her car.Customers typically order one car (one product number),but some customers love the cars so much that they order several at once.Customers must provide at least a 25% deposit with the order,but they can pay the balance after they take delivery of the car.
Car chassis: Coop maintains an inventory of car chassis with body shells,interior,seats,etc.Consequently,he can deliver a custom car in just a few days.When the inventory of car chassis gets low,an employee issues a chassis production order.The chassis assembly plan describes the specific parts that go into each chassis as well as the specific chassis assembly operations required.Coop's employees then conduct the assembly operations to assemble the new chassis.
Customizing: After the customer places an order and selects the chassis,engine,and color combination,Coop's employees start the customizing operations.The engine is placed in the car and the car is painted.Then,after some initial testing,the car is placed in inventory,ready for delivery to the customer.Although several employees work on the customizing operations,Coop also designates one employee to supervise the process and assure a high quality finished car.
Miscellaneous: Coop keeps all his employee records in one table,but he also categorizes employees according to their specialty.He records information about employees,customers,employee types,custom cars,and classic parts before they are linked to other classes.
REQUIRED: 1)use the information above and the list of attributes below to draw a UML class diagram showing the classes,associations,and multiplicities,2)prepare a listing of the tables necessary to support Coop's processes using all the attributes.Name each table and clearly identify primary keys with PK and foreign keys with FK.List your tables in the following order: RESOURCES,EVENTS,AGENTS,TYPE IMAGES,and LINKING.Use only the following list of attributes (remember that there should be no classes without attributes).
Attributes

Question 9

Which of the following best describes the purpose of a bill of material class?

A) Links each raw material item to one or more finished good items.
B) Shows the issues of raw material items into work in process.
C) Links finished goods to production.
D) Shows the raw material usage variance.

Question 10

Which of the following least reflects the purpose of a business rule in the conversion process?

A) Segregating authorizing, issuing, and conversion work duties
B) Limiting who can view and change records in the system
C) Ensuring no production without a customer order
D) Assuring that all products meet quality standards

Question 11

A labor plan class would establish standard overhead allocation rates.

Question 12

Review the following diagram.Which answer provides the best interpretation of the multiplicities for the association between the Employees and Production Authorization classes?

A) The employee records the completion of a job and updates finished goods.
B) Each production authorization results in the increase to the quantity on hand of one product.
C) Employees manage multiple products.
D) One employee can authorize production multiple times.

Question 13

Consider the following BPMN diagram of a subprocess.Which of the following is required to correct an error in the diagram?

A) Change the intermediate event to a start event.
B) Change the intermediate error event to an exclusive gateway
C) Add a sequence flow to an end event after the discard errors activity.
D) Drop the activity named Discard Errors.

Question 14

Application controls limit access to viewing and changing records in a system.

Question 15

Which of the following is the best reason that a collaboration model would not be used to diagram the conversion process?

A) All conversion activities are internal to the organization.
B) A collaboration model does not include swimlanes.
C) The orchestration of the activities is not shown in a collaboration model.
D) The choreography between pools is not shown in a collaboration model.

Question 16

Correct the BPMN Activity Diagram
After a very successful career in business,Ray Robertson decided to leave the rat-race to pursue his life-long (adult life-long)interest in brewing unique,hand-crafted beers.He wanted his business to reflect his passions: beer,football,and the Oregon Ducks,so the name Yellow Duck Brewing Company seemed natural.Since recent medical research has shown that moderate beer consumption is healthy,Ray carefully selected the freshest ingredients for his beer to make his beers even healthier.The unofficial motto of the Yellow Duck Brewing Company became,"the only beer to have when you are having only one!" This case describes the sales and bottling processes for Yellow Duck.
Yellow Duck Sales Process
Customers order specific bottled beer products when they place their order,and Yellow Duck often rejects orders depending on the availability of that beer.(The availability of any bottled beer depends on what Yellow Duck has brewed recently and the bottles on hand.)Yellow Duck bottles its beers when a customer service employee receives an order for one or more bottled beer products from a customer.Yellow Duck records the sale when the customer picks up the beer from the customer service employee.Yellow Duck only sells its beer to wholesale customers,so each customer pays for all the sales during the month in one payment at the end of the month.
Yellow Duck Bottling Process
Yellow Duck sells its beer in distinctive bottles,designed by local artists,to stand out from more mundane beers.The bottling process takes place in a series of steps.Each step is authorized by a supervising employee and also involves several other employees who carefully transfer brewed beer into the bottles,apply the labels,and place the bottles in the bottled beer inventory.At that point the beer is ready for sale to the customer.Each bottling step involves only one particular bottle number but may involve several different brewed beers.
REQUIRED: Using the description above,correct the BPMN activity diagram with shown below so that the diagram accurately depicts Yellow Duck's sales and bottling process.
Incorrect BPMN diagram:

Question 17

Review the following diagram.Which answer provides the best interpretation of the multiplicities for the association between the Products and Production Authorization classes?

A) The employee records the completion of a job and updates finished goods.
B) Each production authorization is related to one product.
C) Each product is related to one production authorization.
D) One employee can authorize production multiple times.

Question 18

In a basic UML diagram of the conversion process,which of the following best describes the purpose of a duality association?

A) Shows the participation of employees in the process.
B) Links work in process events to the original production authorization.
C) Indicates issue of raw material into the process.
D) Tracks completion of work in process and increase to finished goods inventory.