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 Chapter 07

Conversion Business Process

True / False Questions

1. Conversion labor costs become part of cost of goods sold.

True False

2. Gateways can direct sequence flow to support looping.

True False

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

True False

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

True False

5. A labor plan class would establish standard overhead allocation rates.

True False

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6.

The primary key of the Production Authorization table would be posted in the Production
Steps table as a foreign key.

True False

7.

The primary key of the Employees table would be posted in the Production Steps table as a
foreign key.

True False

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8.

The primary key of the Production Steps table would be posted in the Production Plan table
as a foreign key.

True False

9.

The link between the Products and Production Plan tables would be implemented as a linking
table.

True False

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10.

The link between the Production Plan and Materials tables would be implemented as a
linking table.

True False

Multiple Choice Questions

11. 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

12. 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

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13. 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

14. 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.

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.

16. 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

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17. 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.

18. 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.

19. 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.

20. 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.

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Essay Questions

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21. 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.

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 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

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22. 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 todays' 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

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 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

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23. 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:

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 Chapter 07 Conversion Business Process Answer Key

True / False Questions

1. Conversion labor costs become part of cost of goods sold.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Describe the business activities that comprise the conversion process.
Source: Original
Topic: Conversion processes

2. Gateways can direct sequence flow to support looping.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Develop an activity model of the conversion process using BPMN.
Source: Original
Topic: Conversion processes

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

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Develop business rules to implement controls for the conversion process.
Source: Original

7-15
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 Topic: Conversion processes

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

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Develop business rules to implement controls for the conversion process.
Source: Original
Topic: Conversion processes

5. A labor plan class would establish standard overhead allocation rates.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

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6.

The primary key of the Production Authorization table would be posted in the Production
Steps table as a foreign key.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Implement a relational database from the UML Class Diagram of the conversion process.
Source: Original
Topic: Conversion processes

7.

The primary key of the Employees table would be posted in the Production Steps table as
a foreign key.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology

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 Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Implement a relational database from the UML Class Diagram of the conversion process.
Source: Original
Topic: Conversion processes

8.

The primary key of the Production Steps table would be posted in the Production Plan
table as a foreign key.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Implement a relational database from the UML Class Diagram of the conversion process.
Source: Original
Topic: Conversion processes

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9.

The link between the Products and Production Plan tables would be implemented as a
linking table.

FALSE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Implement a relational database from the UML Class Diagram of the conversion process.
Source: Original
Topic: Conversion processes

10.

The link between the Production Plan and Materials tables would be implemented as a
linking table.

TRUE

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology

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 Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-06 Implement a relational database from the UML Class Diagram of the conversion process.
Source: Original
Topic: Conversion processes

Multiple Choice Questions

11. 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

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Describe the business activities that comprise the conversion process.
Source: Original
Topic: Conversion processes

12. 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

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-01 Describe the business activities that comprise the conversion process.
Source: Original

7-20
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 Topic: Conversion processes

13. 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

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-02 Develop an activity model of the conversion process using BPMN.
Source: Original
Topic: Conversion processes

14. 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.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Understand and apply different activity modeling options.
Source: Original
Topic: Conversion processes

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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.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-03 Understand and apply different activity modeling options.
Source: Original
Topic: Conversion processes

16. 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

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-04 Develop business rules to implement controls for the conversion process.
Source: Original
Topic: Conversion processes

7-22
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17. 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.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

18. 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.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand

7-23
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McGraw-Hill Education.
 Difficulty: 2 Medium
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

19. 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.

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

20. 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.

AACSB: Analytic
AICPA BB: Leveraging Technology

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 AICPA FN: Leveraging Technology
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

Essay Questions

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21. 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.

7-26
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 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

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 Diagram:

Table listing:

Resources
Cash = cash account # (PK), cash account balance
Raw Material = raw material # (PK), raw material description, raw material QOH, standard
unit price for this raw material, bin# (FK)
Finished Clothing Items = finished clothing item # (PK), finished clothing item price,
finished clothing item quantity on hand = QOH

Events
Purchase Orders = purchase order # (PK), purchase order date, purchase order = PO total
dollar amount, scheduled delivery date, receiving report# (FK), buyer employee# (FK),
vendor# (FK)
Purchases = receiving report # (PK), total purchase $ amount, actual $ amount paid for
this purchase, buyer employee # (FK), vendor # (FK), check # (FK)
Cash Disbursements = check # (PK), check amount, cash account # (FK), cashier
employee # (FK), vendor # (FK)

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 Assembly steps = record # (PK), assembly step date, production order # (FK), master
assembly list # (FK)
Production Order = production order # (PK), production order due date, actual labor cost,
actual material cost, standard labor cost, standard material cost, finished clothing item#
(FK), supervisor employee# (FK)

Agents
Buyer = employee # (PK), employee name, buyer rating
Cashier = employee # (PK), employee name, cashier bond status
Crafter = employee # (PK), employee name, crafter hourly wage
Production supervisor = employee # (PK), employee name, salary, YTD bonus for this
supervisor
Vendor = vendor # (PK), vendor name, individual accounts payable, percent on-time
deliveries for this vendor, percent on-time payments to this vendor

Type Images
Master Assembly Plan = master assembly # (PK), standard labor cost for assembly step,
sequence in which assembly step performed, finished clothing item # (FK)
Bin = bin # (PK), bin color

Linking Tables
Purchase-Raw Material = receiving report # + raw material # (PK), actual quantity of raw
material received
Purchase Order-Raw Material = purchase order # + raw material # (PK)
Assembly step-Crafter = step record # + crafter employee # (PK), actual time for this
crafter in this assembly step
Assembly Step-Raw Material = raw material # + step record # (PK), raw material actual
quantity used in this assembly step
Master Assembly-Raw Material = master assembly list # + raw material # (PK), raw
material standard quantity for this assembly step

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

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22. 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
todays' 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

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 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

Diagram:

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 Table listing:

Resources
Chassis Parts = Chassis Part # (PK), Chassis part description, Chassis part QOH, Actual
cost of this chassis part
Car Chassis = Chassis # (PK), Chassis description, Chassis QOH, Chassis actual cost,
Chassis standard cost
Engines = Engine # (PK), Engine cylinders, Engine horsepower
Custom Cars = Custom Car Product # (PK), Chassis # (FK), Engine# (FK), Custom car
price, Custom car actual cost, Custom car standard cost
Cash = Cash Account # (PK), Cash account balance

Events

Assembly Operations = Chassis Assembly Operation # (PK), Chassis assembly operation

date, Chassis Assembly Plan# (FK), Chassis Assembly Order# (FK), Total actual cost of
this assembly operation, Total standard cost of this assembly operation

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 Chassis Order = Chassis Assembly Order # (PK), Chassis assembly order date, Total
actual cost of this chassis assembled on this order, Total standard cost of this chassis
assembled on this order, Chassis# (FK), Employee # (FK)
Customizing Operations = Customizing Operation # (PK), Customizing operation date,
Chassis # (FK), Engine # (FK), Employee # (FK), Customer Order # (FK)
Customer Order = Customer Order # (PK), Customer order date, Customer order delivery
date, Customer order total $ amount, Employee # (FK), Customer # (FK)
Cash Receipt = C/R # (PK), Cash receipt date, Cash Acct # (FK), Customer Order # (FK),
Customer # (FK), Employee # (FK)

Agents
Employee = Employee # (PK), Employee Type (FK), Employee hire date, Employee name,
Employee pay rate,
Customer = Customer # (PK), Customer address, Customer name

Type Images
Chassis Assembly Plan = Chassis Assembly Plan # (PK), Chassis# (FK), Chassis assembly
planned sequence,
Employee Type = Employee Type (PK), Number of employee of this type

Linking Tables
Chassis Assembly Plan-Chassis Part = Chassis Assembly Plan # + Chassis Part # (PK),
Standard cost of this part in this chassis, Standard qty of this part in this chassis
Chassis Parts-Assembly Operations = Chassis Part # + Chassis Assembly Operation #
(PK), Actual qty of this part in this chassis
Assembly Operations-Employee = Chassis Assembly Operation # + Employee # (PK),
number of hours this employee worked on this assembly operation
Customizing Operations-Employee = Customizing Operation # + Employee # (PK), number
of hours this employee worked on this customizing operation
Custom Cars-Customer Order = Custom Car Product # + Customer Order# (PK), Qty of
this custom car ordered on this order

AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-05 Develop a structure model for the conversion process using UML class diagrams.
Source: Original
Topic: Conversion processes

7-33
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McGraw-Hill Education.
 7-34
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23. 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:

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 (One possible diagram)

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 AACSB: Analytic
AICPA BB: Leveraging Technology
AICPA FN: Leveraging Technology
Blooms: Apply
Difficulty: 3 Hard
Learning Objective: 07-02 Develop an activity model of the conversion process using BPMN.
Source: Original
Topic: Conversion processes

7-37
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McGraw-Hill Education.