1. Chapter 7 Conversion Business Process
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2. 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

3. Review of Conversion Accounting
LO# 1
Review of Conversion Accounting

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

5. 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.

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

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

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

9. 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

10. 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

11. 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

12. 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.

13. 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.

14. 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.

15. 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.