Magal and Word ! Essentials of Business Processes and
Information Systems | 2009 1 Chapter 6: Integrated Processes Slide
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 Slide 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
Slide 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 Slide 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 Slide 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 Slide 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 Slide 8 Integrated
Process Magal and Word ! Essentials of Business Processes and
Information Systems | 2009 8 Slide 9 9 Customer Purchase Order
Slide 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) Slide 11
Magal and Word ! Essentials of Business Processes and Information
Systems | 2009 11 Inventory Report STSB200 Slide 12 Magal and Word
! Essentials of Business Processes and Information Systems | 2009
12 SRL STSB2000 with Sales Order Slide 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?) Slide 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? Slide 15 Magal and Word ! Essentials of Business Processes
and Information Systems | 2009 15 SRL STSB2000 with Planned Order
Slide 16 Magal and Word ! Essentials of Business Processes and
Information Systems | 2009 16 SRL STSB2000 with Production Order
Slide 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 Slide 18 Magal and Word ! Essentials of Business
Processes and Information Systems | 2009 18 Inventory Report - Raw
Materials Slide 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? Slide 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 Slide 21 Magal and Word ! Essentials of
Business Processes and Information Systems | 2009 21 SRL STTA2100
after P Req Slide 22 Magal and Word ! Essentials of Business
Processes and Information Systems | 2009 22 SRL STTA2100 - after PO
Slide 23 Magal and Word ! Essentials of Business Processes and
Information Systems | 2009 23 SRL STTA2100 - after production Slide
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 Slide 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
Slide 26 Magal and Word ! Essentials of Business Processes and
Information Systems | 2009 26 SRL STSB2000 After Production Slide
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 Slide 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 Slide 29 Magal and Word ! Essentials of Business
Processes and Information Systems | 2009 29 SRL STSB2000 During
Delivery Slide 30 Magal and Word ! Essentials of Business Processes
and Information Systems | 2009 30 SRL STSB2000 - After Delivery
Slide 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 Slide 32 Additional
Intra-Company Processes Magal and Word ! Essentials of Business
Processes and Information Systems | 2009 32 Human Capital
Management Asset Management Slide 33 Magal and Word ! Essentials of
Business Processes and Information Systems | 2009 33 Human Capital
Management Process Slide 34 Asset Management Process Magal and Word
! Essentials of Business Processes and Information Systems | 2009
34 Slide 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) Slide 36 Plan-to-Produce Process in SCM Magal and
Word ! Essentials of Business Processes and Information Systems |
2009 36 Slide 37 Source-to-Settle Process in SRM Magal and Word !
Essentials of Business Processes and Information Systems | 2009 37
Slide 38 Idea-to-Market Process in PLM Magal and Word ! Essentials
of Business Processes and Information Systems | 2009 38 Slide 39
Demand-to-Order Process in CRM Magal and Word ! Essentials of
Business Processes and Information Systems | 2009 39 Slide 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
