Magal and Word ! Essentials of Business Processes and Infor

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1. Chapter 6: Integrated Processes. 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. ID: 373533 Download Presentation

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Magal and Word ! Essentials of Business Processes and Infor




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Presentations text content in Magal and Word ! Essentials of Business Processes and Infor

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

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Chapter 6: Integrated Processes

Slide2

Outline

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

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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

Slide3

Integrated Processes

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

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Key Concepts and Assumptions

Regarding fulfillment, procurement, production

Conceptual Framework

Physical Flow

Document and Data Flow

Information Flow

NO Financial Impact

Slide4

Assumptions regarding processes

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

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Fulfillment

Sell from stock

Materials are available to fill customer orders

Procurement

Procure to stock

Production

Make to stock

Necessary raw materials are available

Slide5

New assumptions

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

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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

Slide6

Physical Flow

Magal and Word | Essentials of Business Processes and Information Systems | © 2009

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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

Slide7

Physical flow

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

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The Fulfillment Process: initial Steps

Review Inventory of Finished Goods

The Production Process: initial Steps

Review Inventory of Raw Materials

The Procurement Process

The Production Process resumed and completed

The Fulfillment Process resumed and completed

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Integrated Process

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

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

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Customer Purchase Order

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Step 1: Fulfillment process

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

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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)

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

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Inventory Report – STSB200

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

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SRL STSB2000 – with Sales Order

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Step 1: Fulfillment process

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

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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?

Can’t continue with fulfillment (prepare shipment, etc.)

Need to acquire material STSB 2000

How does SSB acquire STSB 2000 (Buy or make?)

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Step 2: Production Process

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

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Create planned order

How many to request? (100)

Convert to production order

How many to produce?

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

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SRL STSB2000– with Planned Order

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

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SRL STSB2000– with Production Order

Slide17

Step 2: Production Process

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

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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

Slide18

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

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Inventory Report - Raw Materials

Slide19

Step 2: Production Process

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

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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?

Can’t continue with production

Need to acquire raw material

How does SSB acquire these?

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Step 3: Procurement

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

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Create requisition

For how many?

Create purchase order

For how many?

Goods receipt

Example: Track progress of truck assembly

Slide21

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

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SRL STTA2100 – after P Req

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

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SRL STTA2100 - after PO

Slide23

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

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SRL STTA2100 - after production

Slide24

Step 3: Procurement

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

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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

Slide25

Step 4: Production Process resumed

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

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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

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

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SRL STSB2000 – After Production

Slide27

Step 4: Production Process completed

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

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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

Slide28

Step 5: Fulfillment process resumed

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

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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

Slide29

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

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SRL STSB2000 – During Delivery

Slide30

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

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SRL STSB2000 - After Delivery

Slide31

Outline

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

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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

Slide32

Additional Intra-Company Processes

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

32

Human Capital Management

Asset Management

Slide33

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

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Human Capital Management Process

Slide34

Asset Management Process

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

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Slide35

Extended (Inter-Company) Processes

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

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Supply Chain Management (SCM)

Supplier Relationship Management (SRM)

Product Lifecycle Management (PLM)

Customer Relationship Management (CRM)

Slide36

Plan-to-Produce Process in SCM

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

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Slide37

Source-to-Settle Process in SRM

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

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Slide38

Idea-to-Market Process in PLM

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

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Slide39

Demand-to-Order Process in CRM

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

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Slide40

Exercise Using Simulated SAP

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

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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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