The following capsule cases present short narratives of processes used by three actual organizations whose names have been changed for the purpose of this problem. You will use the cases to practice the mechanics of drawing data flow diagrams.
Capsule Case 1: Rock of Gibraltar Insurance Co.

Rock of Gibraltar Insurance Co. (ROG) is one of the largest automobile insurance companies in the country. Each year, ROG receives more than 30,000 claims billings from Plexlite Glass Corp. (Plex), the country's largest auto glass replacement chain and a leading manufacturer of replacement windshields. Recently the two companies entered into an agreement to abandon paper invoices and adopt EDI for the processing of claims. The new process works as follows: An insured party calls ROG to report glass damage. The ROG representative taking the call gives the insured an authorization number and opens a claim record on ROG's claims processing system. The insured party takes the automobile to a Plex shop to have the glass repaired, gives Plex the authorization number, and pays the deductible amount required by the insurance policy. After the Plex store replaces the glass, the store manager enters the authorization number and other data into its computer system via a point-of-sale (POS) terminal, and the data are recorded to the receivables data. Plex's computer system collects the invoice data from the individual Plex stores and transmits the data each week to ROG in EDI format through IVANS, a value added network owned by the insurance industry. Thus, the data is received by ROG's computer system without the need for human intervention. After the data are checked electronically against the open claim data for proper authorization number, auto make and model, proper insurance coverage, and correct pricing by Plex, the claims invoice is written to the validated claims data, and an EDI message informs Plex which claims will be paid. Claims rejected by ROG's system are processed manually; description of the exception routines is beyond the context of this case. Once a week, ROG's treasurer accesses the validated claims data and sends a single check to Plex for all claims approved that week.
Capsule Case 2: Baby Bell Telephone Co.

Baby Bell Telephone Co. uses a computer-assisted PtoP process called PRP (purchasing, receiving, payables) that includes an EDI function. An abbreviated description of the purchasing portion of PRP follows. (The description covers only the purchase by field technicians of items to be delivered by suppliers directly to the technicians in the field.) The company's field technicians continually need to replace items such as small hand tools, wire, and power tools. (Note: Assume that an external entity called "Field Inventory System" triggers the PRP system by identifying a "Field inventory replacement need.") They do so by using handheld computers to log into the PRP system. Users have login IDs and passwords that allow them access only to information for which they have clearance. Once logged in, a technician enters the requested item's stock number. PRP presents the user with a display showing the item's description, size, and so forth. Information on price, brand, or supplier is not provided to most users because it is information they don't need to know. To complete the order request, the user visually verifies the information shown in the display, keys in the quantity ordered, and presses the "enter" key. PRP records the order in the purchase order master data (disk). The order is routed through a wide area network to the workstation of an available order entry clerk in the purchasing department. The clerk enters a code that requests PRP to match the item's stock number with the supplier code in the inventory master data. The system then retrieves the supplier's standing data (e.g., name, address, whether or not an EDI vendor, and so forth) from the vendor master data and displays it on the workstation screen. The purchasing clerk next enters another code that either transmits the order electronically to the vendor through an EDI VAN or prints a hard copy purchase order document that is mailed to the vendor, in the case of a supplier that does not have EDI capability. In either case, the purchase order master data are updated to show that the PO has been issued. Hard copy purchase orders are put in envelopes and mailed.
Capsule Case 3: Big 3, Inc.

Big 3, Inc. (BIG), is a major manufacturer of automobiles. This narrative gives an abbreviated description of the procedures used by BIG in buying original equipment windshields from its only supplier of windshields, Akron Glass Co. (AGC). When BIG's inventory system requests the purchasing department to reorder windshields, the order information is recorded to the purchase order data store and transmitted electronically directly from BIG's computer to AGC's computer via the Internet. AGC returns an electronic acknowledgment to BIG. When AGC is ready to ship the order, it transmits an electronic invoice to BIG and prints a paper bill of lading that is given to the trucker who transports the goods. BIG's computer records the invoice to the pending invoices data. The receiving department at BIG keys in the goods received. The keying operation creates a receiving record in the receiving data and updates the purchase order master data store to reflect the receipt. Each morning, a clerk in BIG's accounts payable department accesses the electronic invoices received from all EDI suppliers the previous day. He audits the invoice by checking it against data from the purchase order master data store (e.g., descriptions, quantities, prices, and purchase terms) and from the receiving data. The clerk then enters the date to be paid and a code to authorize payment of each invoice. The payment authorization is transmitted electronically to BIG's bank where it is stored in the authorized payments data until the specified payment date. The evening before the payment date, BIG's bank forwards the payment-with remittance data electronically "attached" to it-to AGC's bank. The payment data are in encrypted, authenticated form. BIG's bank account is debited for the payment. The next morning, AGC's bank account is credited for the payment. BIG's remittance data are translated to a standard lockbox format, integrated with AGC's other lockbox remittances, and reported online to AGC for automatic posting to its accounts receivable database.

REQUIRED: For the capsule case assigned by your instructor, complete the following requirements:

a. Prepare a table of entities and activities.

b. Draw a context diagram.

c. Draw a physical data flow diagram (DFD).

d. Prepare an annotated table of entities and activities. Indicate on the table the groupings, bubble numbers, and bubble titles to be used in preparing a level 0 logical DFD.

e. Draw a level 0 logical DFD.