Chapter 7 Conversion Business Process Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives LO#1 Describe the business activities that comprise the conversion process LO#2 Develop an activity model of the conversion process using BPMN LO#3 Understand and apply different activity modeling options LO#4 Develop business rules to implement controls for the conversion process LO#5 Develop a structure model for the conversion process using UML class diagrams LO#6 Implement a relational database from the UML Class LO#7 Diagram of the conversion process

Review of Conversion Accounting LO# 1 Review of Conversion Accounting

Basic Purchases BPMN Activity Model LO# 2 Basic Purchases BPMN Activity Model The basic activity model implements the process steps.

Refining the Model with Swimlanes LO# 3 Refining the Model with Swimlanes The inventory manager tracks inventory levels and authorizes new production The conversion partners set up batches and perform work to create finished signs and banners First, define one pool and swimlanes showing functional responsibility.

Refining the Model with Swimlanes LO# 3 Refining the Model with Swimlanes Then, define the steps performed by each function.

Refining the Model Process flow loops until the batch is complete Intermediate error event interrupts flow if inspection failed

LO# 3 Refining the Model Second loop in process flow until all batches are complete

Business Rules Examples for Conversion Process LO# 4 Process Steps Intention Partner Authority/Action Access Controls Application Controls Authorize Production Partner with proper authority authorizes production to ensure finished goods available to meet expected demand Supervisor must authorize production > $5,000. Partner authorizing production cannot modify inventory records System must provide authorization order number control, default values, range and limit checks, and create audit trail Issue Raw Material Issues from raw material according to bill of material recorded accurately Partner issuing material must not be same partner that authorized production Partner recording issue of material cannot modify bill of material System must only allow partner to enter the number of items issued based on bill of material, subject to range and limit checks on quantities

Business Rule Types Supervisor must authorize production > $5,000. LO# 4 Business Rule Types Supervisor must authorize production > $5,000. Example of Obligatory rule – states would should occur Partner issuing material must not be same partner that authorized production Example of Prohibited rule – states what should not occur

Sunset’s Basic Conversion UML Class Models LO# 5 Sunset’s Basic Conversion UML Class Models Authorization Which finished goods to produce Records R/M Issue Specifies the bill of materials Records use of labor

Revised Conversion UML Class Diagram LO# 5 Revised Conversion UML Class Diagram Bill of materials promoted to Type Image Partners responsible for specific Product Categories One-to-one relationship between purchase orders and receipts allows the two events to be collapsed into one.

Implementing UML Diagram in a Database LO# 6 Implementing UML Diagram in a Database Database will contain 8 tables to implement classes and 2 linking tables for the relationship between Purchases and Products.

Posting Foreign Keys Example LO# 6 Posting Foreign Keys Example Which tables will get foreign keys? The partner number (primary key for Sunset Partners) will become a foreign key in the Production Authorization and Material Issue events. The Production Authorization Number will become a foreign key in the Material Issue event. Foreign keys implement links for one-to-many relationships.

Database Relationships LO# 6 Database Relationships Missing the relationship between Supplier Categories and Partners. Post the Partner number in the Supplier Category table. Blue arrow highlights linking tables to implement the two many-to-many relationships.