McCloud Company Data Flow Diagram Documentation Project
McCloud Company produces and sells fleece-lined suede leather jackets. Having been in business for almost 40 years in Taos, NM, McCloud Company's products are well-known for their durability and no-nonsense fashion consciousness. Strictly a mail order business, the company handles sales orders exclusively through a company website over the Internet.
You are a newly-hired accountant at McCloud Company. There is currently no complete set of formal documentation of the processing of sales orders and shipping of goods. The procedures related to these processes are as follows:
McCloud Company's customers enter their order information via the Internet. Orders are automatically recorded in a sales order transaction file by McCloud's ERP system. The ERP system automatically generates and sends an email of the sales order to the customer. A sales order is also automatically printed out in the customer service department by the ERP system. A customer service clerk files this copy by customer name and then by date in an open sales order file.
After the sales order is printed in customer service, the ERP system uses data from the sales order transaction file to automatically create a picking ticket that is printed out in the warehouse. Warehouse personnel use the picking ticket to pick ordered items from shelves, noting in the "shipped" column of the picking ticket how many of each item has been pulled. As the warehouse personnel pull the goods from the shelves, they also scan the barcode of the items pulled to update the perpetual inventory master file in the warehouse inventory database. After items are pulled and noted on the picking ticket, the picking ticket is initialed by the warehouse personnel. Warehouse personnel then complete a work order requesting production of all inventory items for which there is a shortage. The work order form is initialed by the warehouse manager and forwarded to the production department. The initialed picking ticket and the goods pulled are sent to the shipping department.
In the shipping department, a shipping clerk enters data from the picking ticket into the ERP system. The ERP system records the data in respective packing slip and bill of lading transaction files. The ERP system automatically prints a three-part packing slip and a three-part bill of lading. The copies of the packing slip are distributed by the shipping clerk as follows:
Part one (original) is placed with the goods to be sent to the customer.
Part two is sent to customer service.
Part three is filed alphabetically by customer name and by date in the shipped orders file.
The copies of the bill of lading are distributed as follows:
Part one (original) is placed with part one of the packing slip and the goods pulled. These items are given to the carrier to be delivered to the customer.
Part two is given to the carrier. This copy is to be retained by the carrier for their own company records.
Part three is filed with part three of the packing slip.
After the carrier picks up the goods, the shipping clerk initials the picking ticket and forwards it to the accounts receivable clerk in the accounting department for billing.
Upon receiving part two of the packing slip, the customer service clerk uses the packing slip to pull the matching sales order filed earlier in the open sales order file. The customer service clerk enters data from the matched documents for updating the sales order in the sales order transaction file in the ERP system as being shipped. The ERP system automatically generates and sends an email to the customer that the shipment is on its way. The customer service clerk then files the matched documents by customer name and then by date in the closed sales order file.
1) Deliverable #1 - Prepare a grouped list of activities and entities for McCloud Company's processing of sales orders and shipping goods.
• The table should have three columns:
i. The first column should list each activity.
ii. The second column should note whether the activity is processing or nonprocessing.
iii. The third column should note what entity performs the activity.
The table should look similar to this:
Entity Performing Activity
Group 1: Capture Order
Enter order information via the internet
Orders are automatically recorded in a sales order transaction file
• Each group of related activities should be clearly labeled for the DFD level 0 process it performs.
• This table should be typed up in Word, Wordperfect, or some other word processing software.
2) Deliverable #2 - Draw a set of DFDs in good form and using standard symbols for McCloud Company's processing of sales orders and shipping goods.
• The set of DFDs should include a Context Diagram, a Level 0 Physical DFD, and a Level 0 Logical DFD.
The solution draws the company data flow diagram for McCloud Company.