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The ARMS Procurement System at Tustin State University Summary The administrative managers at Tustin State University (TSU) pulled together to work on improving the computer information system. The existing system was cumbersome, and inaccurate. A new computerized information system was expected to reduce a significant number of errors in the process. People soft was awarded the contract to implement the new purchasing information system. Shortly after human resources department implemented ARMS, the ISU purchasing department evaluated their computer systems. The purchasing department discovered that they were using at least seven different ways to purchase items. Purchasing realized that this was confusing and difficult for their customers and they felt it was very important to identify their customers' needs. The customers responded by stating they wanted an integrated purchasing system that included reconciliation of outside orders and internal orders. In addition, the customers wanted a system that would reconcile emergency departmental purchases with a procurement card to the purchasing system. With the knowledge of the customers' needs and an idea of successful purchasing systems, a TSU purchasing ,evaluation team was formed. In cooperation with Anderson Consulting, a conceptual design was developed for their integrated purchasing system. For the next year, a team was set up to study, review, and make changes to the newly designed integrated purchasing system. The team developed two major interrelated forms of purchasing - the ARMS system and the procurement card-to solve the procurement problems at TSU. Assignment Question (Please answer the following questions with the data provided). Use flow diagrams to show the differences between the new and old system, then answer the two questions below: 1. A) How should the team solve the errors in the ARMS purchasing module? How do you recommend searching through 280,000 vendor catalogs? B) There are also a significant number of errors in the vendor database. The ARMS system cannot decipher between vendors's billing address and its shipping address. How should this be corrected? Department Need Identification Process (Old System-Manual): Step 1. Department Identify Needs from 8 sources (catalogs, shopping trips, sales reps, Yellow pages and ect.) Step 2. Department identifies issuance method. There are seven choices: (eg.1303 form, 100w form, | LDPO etc...) Step 3. Verify and enter requisition into centralized Purchasing system Step 4. Generate Purchase Order, then place order with vendor Invoice Process (Old System-Manual) Step 1. Requisitioner receives invoice and forwards to the department Step 2. The department approves or disapprove invoice - If not approved, the invoice is returned to requisitioner - Mail approve invoice to accounts payable Step 3. Accounts payable prepares approved invoice for data entry. A photocopy is made of the invoice. The invoice is manually verified and entered into the computer. Step 4. The invoice is then returned to the originating department for filing Need Identification Process (ARMS-automated IT) New system Step 1. Identify need and source through Vendor catalog and sources. The vendor catalog contains 280,000 items - one stop Step 2. The requester creates a requisition online from (i.e. items, vendor, and special conditions) Step 3. The requisition is sent to the buyer via ARMS. The buyer verifies the price and vendor and send to department for approval. Step 4. After approval, the buyer creates a Purchase Order Step 5. The buyer send PO to vendor via FAX through ARMS. The department can monitor order status through AMS Invoice Process (ARMS-automated IT) new system Step 1. Accounts payable receives invoice via electronic data interchange (EDI) Step 2. ARMS matches the PO with the invoice. If there is no match, the error is researched and corrected Step 3. Account payable reviews the PO and invoice online. Step 4. The invoice is paid via an electronic funds transfer. The ARMS Procurement System at Tustin State University Summary The administrative managers at Tustin State University (TSU) pulled together to work on improving the computer information system. The existing system was cumbersome, and inaccurate. A new computerized information system was expected to reduce a significant number of errors in the process. People soft was awarded the contract to implement the new purchasing information system. Shortly after human resources department implemented ARMS, the ISU purchasing department evaluated their computer systems. The purchasing department discovered that they were using at least seven different ways to purchase items. Purchasing realized that this was confusing and difficult for their customers and they felt it was very important to identify their customers' needs. The customers responded by stating they wanted an integrated purchasing system that included reconciliation of outside orders and internal orders. In addition, the customers wanted a system that would reconcile emergency departmental purchases with a procurement card to the purchasing system. With the knowledge of the customers' needs and an idea of successful purchasing systems, a TSU purchasing ,evaluation team was formed. In cooperation with Anderson Consulting, a conceptual design was developed for their integrated purchasing system. For the next year, a team was set up to study, review, and make changes to the newly designed integrated purchasing system. The team developed two major interrelated forms of purchasing - the ARMS system and the procurement card-to solve the procurement problems at TSU. Assignment Question (Please answer the following questions with the data provided). Use flow diagrams to show the differences between the new and old system, then answer the two questions below: 1. A) How should the team solve the errors in the ARMS purchasing module? How do you recommend searching through 280,000 vendor catalogs? B) There are also a significant number of errors in the vendor database. The ARMS system cannot decipher between vendors's billing address and its shipping address. How should this be corrected? Department Need Identification Process (Old System-Manual): Step 1. Department Identify Needs from 8 sources (catalogs, shopping trips, sales reps, Yellow pages and ect.) Step 2. Department identifies issuance method. There are seven choices: (eg.1303 form, 100w form, | LDPO etc...) Step 3. Verify and enter requisition into centralized Purchasing system Step 4. Generate Purchase Order, then place order with vendor Invoice Process (Old System-Manual) Step 1. Requisitioner receives invoice and forwards to the department Step 2. The department approves or disapprove invoice - If not approved, the invoice is returned to requisitioner - Mail approve invoice to accounts payable Step 3. Accounts payable prepares approved invoice for data entry. A photocopy is made of the invoice. The invoice is manually verified and entered into the computer. Step 4. The invoice is then returned to the originating department for filing Need Identification Process (ARMS-automated IT) New system Step 1. Identify need and source through Vendor catalog and sources. The vendor catalog contains 280,000 items - one stop Step 2. The requester creates a requisition online from (i.e. items, vendor, and special conditions) Step 3. The requisition is sent to the buyer via ARMS. The buyer verifies the price and vendor and send to department for approval. Step 4. After approval, the buyer creates a Purchase Order Step 5. The buyer send PO to vendor via FAX through ARMS. The department can monitor order status through AMS Invoice Process (ARMS-automated IT) new system Step 1. Accounts payable receives invoice via electronic data interchange (EDI) Step 2. ARMS matches the PO with the invoice. If there is no match, the error is researched and corrected Step 3. Account payable reviews the PO and invoice online. Step 4. The invoice is paid via an electronic funds transfer

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