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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 1 Chapter 6: Integrated Processes.

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Presentation on theme: "Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 1 Chapter 6: Integrated Processes."— Presentation transcript:

1 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 1 Chapter 6: Integrated Processes

2 Outline Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 2 Integrated Processes Fulfillment + procurement + production Only process supported by ES; no manual process Additional Intra-Company Processes Extended (Inter-Company) Processes Exercise Using Simulated SAP ERP

3 Integrated Processes Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 3 Key Concepts and Assumptions Regarding fulfillment, procurement, production Conceptual Framework Physical Flow Document and Data Flow Information Flow NO Financial Impact

4 Assumptions regarding processes Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 4 Fulfillment Sell from stock Materials are available to fill customer orders Procurement Procure to stock Production Make to stock Necessary raw materials are available

5 New assumptions Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 5 Fulfillment Sell from stock -> sell to order Materials are available to fill customer orders -> materials may not be available Procurement Procure to stock -> procure to order Production Make to stock -> make to order Necessary raw materials are available -> may not be available

6 Physical Flow Magal and Word | Essentials of Business Processes and Information Systems | © 2009 6 What is the trigger? What are the steps? What is the purpose of each step? Who is involved in each step? How is communication and coordination accomplished

7 Physical flow Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 7 1. The Fulfillment Process: initial Steps Review Inventory of Finished Goods 2. The Production Process: initial Steps Review Inventory of Raw Materials 3. The Procurement Process 4. The Production Process resumed and completed 5. The Fulfillment Process resumed and completed

8 Integrated Process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 8

9 9 Customer Purchase Order

10 Step 1: Fulfillment process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 10 Assume inquiry and quotation Receive PO 100 standard skateboards (STSB2000) Create Sales Order in the ES Prepare shipment Do we have enough in inventory? Check stock status Previous assumption: stock is available Inventory report Stock requirements list (SRL)

11 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 11 Inventory Report – STSB200

12 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 12 SRL STSB2000 – with Sales Order

13 Step 1: Fulfillment process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 13 Assume inquiry and quotation Receive PO 100 standard skateboards (STSB2000) Create Sales Order in the ES Prepare shipment Do we have enough in inventory? Check stock status Not enough material - what next? Cant continue with fulfillment (prepare shipment, etc.) Need to acquire material STSB 2000 How does SSB acquire STSB 2000 (Buy or make?)

14 Step 2: Production Process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 14 Create planned order How many to request? (100) Convert to production order How many to produce?

15 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 15 SRL STSB2000– with Planned Order

16 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 16 SRL STSB2000– with Production Order

17 Step 2: Production Process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 17 Create planned order Convert to production order Issue raw material to production Do we have enough? Check stock status Inventory reports Stock requirements list for each material Use truck assembly (STTA 2100) as an example

18 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 18 Inventory Report - Raw Materials

19 Step 2: Production Process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 19 Create planned order Convert to production order Issue raw material to production Do we have enough? Check stock status Inventory reports Stock requirements list for each material Not enough material - what next? Cant continue with production Need to acquire raw material How does SSB acquire these?

20 Step 3: Procurement Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 20 Create requisition For how many? Create purchase order For how many? Goods receipt Example: Track progress of truck assembly

21 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 21 SRL STTA2100 – after P Req

22 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 22 SRL STTA2100 - after PO

23 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 23 SRL STTA2100 - after production

24 Step 3: Procurement Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 24 Create requisition Create purchase order Goods receipt Now we have material to produce STSB2000 Return to production process Continue with the rest of the procurement process

25 Step 4: Production Process resumed Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 25 Create planned order Convert to production order Issue raw material to production Do we have enough? Yes, we just completed procuring them Produce product Move to finished goods

26 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 26 SRL STSB2000 – After Production

27 Step 4: Production Process completed Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 27 Create planned order Convert to production order Issue raw material to production Do we have enough? Yes, we just completed procuring them Produce product Move to finished goods Done with production Now back to fulfillment

28 Step 5: Fulfillment process resumed Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 28 Assume inquiry and quotation Receive PO 100 standard skateboards (STSB2000) Create Sales Order in the ES Prepare shipment Do we have enough in inventory? Yes, we just completed producing them Pick and pack Send shipment Send invoice Receive payment

29 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 29 SRL STSB2000 – During Delivery

30 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 30 SRL STSB2000 - After Delivery

31 Outline Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 31 Integrated Processes Fulfillment + procurement + production Only process supported by ES; no manual process Additional Intra-Company Processes Extended (Inter-Company) Processes Exercise Using Simulated SAP ERP

32 Additional Intra-Company Processes Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 32 Human Capital Management Asset Management

33 Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 33 Human Capital Management Process

34 Asset Management Process Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 34

35 Extended (Inter-Company) Processes Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 35 Supply Chain Management (SCM) Supplier Relationship Management (SRM) Product Lifecycle Management (PLM) Customer Relationship Management (CRM)

36 Plan-to-Produce Process in SCM Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 36

37 Source-to-Settle Process in SRM Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 37

38 Idea-to-Market Process in PLM Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 38

39 Demand-to-Order Process in CRM Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 39

40 Exercise Using Simulated SAP Magal and Word ! Essentials of Business Processes and Information Systems | © 2009 40 The exercises will take you through the following steps that have been discussed in this chapter: receive a customer inquiry create a quotation receive a customer purchase order create a sales order review the inventory of finished goods create a planned order convert the planned order to a production order review the inventory of raw materials create a purchase requisition for a number of raw materials convert the requisition to a purchase order receive goods from the vendor


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