Papazoglou Webserv 2e Cs Solution Notes Part2

Service Oriented Architecture Case Study

Part 2 – Business Process Modeling & Business Service Analysis


1 – Introduction This report aims at the study and application of a top‐down Service Oriented

Architecture (SOA) development approach to the AVERS Supply Chain, which was described in detail in the literature review of the previous assignment.

The remainder of this report is structured as follows: The first section describes the core business processes involved in each domain of the Supply Chain – i.e. Supply, Manufacturing and Distribution. The following section describes the interactions between the domains using the BPMN 2.0 Modeling approach.

The next section aims at explaining the identification of the business services that perform the activities, and provides an abstract design of each service – the functionality along with the respective input and output object. Finally, it describes the consolidation of the services and how SOA principles are applied in order to use all the functionalities in a loosely coupled manner in the AVERS Supply Chain.

2 – AVERS Supply Chain: Core Processes As mentioned in the previous assignment, the ANSI/ISA‐95 is a standard that provides models and terminology for defining the interfaces between an enterprise’s business system and its manufacturing control systems. In this assignment, ANSI/ISA‐95’sfunctional flow data model presented in Figure 1will be used to define the core processes involved in each domain of the Supply Chain.



Figure 1 – The Main Manufacturing Functions and Information Flows

ANSI/ISA‐95 standard defines 12 core functions regarding manufacturing enterprises and further defines for each of those their inherent sub functions. In the previous assignment only 3 of the functions were defined as vital, since the scope of the document was to deal strictly with the order processing and manufacturing domain of AVERS. However, since in this assignment there was a change in scope, it will be needed to include 4 other functions to cover all 3 domains of the supply chain.

It was decided to leave out of the scope of this project the following functions: Quality Assurance; Product Cost Accounting; Maintenance Management; Marketing and Sales; and Research Development and Engineering. It is believed that these are support functions for the core domains of the supply chain, and for the sake of simplicity should not be detailed.

The functions which are identified as our core processes are as follows, with its sub processes as defined in the Standard:

• Order Processing o Customer order handling, acceptance and confirmation; o Sales forecasting; o Waiver and reservation handling; o Gross margin reporting;



o Determining production orders.

• Production Scheduling o Determine production schedule; o Identify long‐term raw material requirements; o Determine pack‐out schedule for end products; o Determine available product for sales.

• Production Control o Controlling the transformation of raw materials into end product in accordance

with production schedule and production standards; o Performing plant engineering activities and updating of process plans; o Issuing requirements for raw materials; o Producing reports of performance and costs; o Evaluating constraints to capacity and quality; o Self‐test and diagnostics of production and control equipment; o Creating production standards and instructions for SOPs (standard operating

procedures), recipes, and equipment handling for specific processing equipment.

• Material and Energy Control o Managing inventory, transfers, and quality of material and energy; o Generating requests for purchasing of materials and energy based on short‐

and long‐term requirements; o Calculating and reporting inventory balance and losses of raw material and

energy utilization; o Receiving incoming material and energy supplies and requesting quality

assurance tests; o Notifying purchasing of accepted material and energy supplies.

• Procurement o Placing orders with suppliers for raw materials, supplies, spare parts, tools,

equipment and other required materials; o Monitoring progress of purchases and reporting to requisitioners; o Releasing incoming invoices for payment after arrival and approval of goods; o Collecting and processing of unit requests for raw materials, spare parts, etc.,

for order placement to vendors.

• Product Inventory Control o Managing inventory of finished products; o Making reservations for specific product in accordance with product selling

directives; o Generating the pack‐out end product in accordance with delivery schedule; o Reporting on inventory to production scheduling; o Reporting on balance and losses to product cost accounting; o Arranging physical loading/shipment of goods in coordination with product

shipping administration.

• Product Shipping Administration



o Organizing transport for product shipment in accordance with accepted orders

requirements; o Negotiating and placing orders with transport companies; o Accepting freight items on site and releasing material for shipment; o Preparing accompanying documents for shipment (BOL, customs clearance); o Confirming shipment and releasing for invoicing to general accounting; o Reporting on shipping costs to product cost accounting.

Even though it is believed that these processes are all important to the whole AVERS supply chain, they are still too complex due to exaggerated detail on some support processes, such as accounting and energy management. Therefore, for the sake of simplicity, a thorough revision in all sub processes was made, in order to leave only those entirely relevant to the core supply chain comprising all 3 domains.

Notwithstanding, it was decided to group some of the top‐level processes that are closely related to simplify the modeling, such as the grouping of Order Processing and Production Scheduling in a single core process.

The modified core processes and its inherent sub processes are defined as follows:

1) Order Processing and Production Scheduling a. Customer order handling, acceptance and confirmation; b. Waiver and reservation handling; c. Determining production orders, schedule and available product for sales.

2) Production Control a. Check accordance of schedule with production schedule and standards; b. Performing plant engineering activities and update of process plan; c. Issuing requirements for raw materials; d. Transformation of raw materials into end products.

3) Material Control and Procurement a. Managing inventory; b. Managing transfers of material; c. Placing orders with suppliers for raw materials, supplies, spare parts, tools,

equipment and other required materials; d. Monitoring progress of purchases and reporting to requisitioners; e. Receiving incoming material supplies; f. Releasing incoming invoices for payment after arrival and approval of goods.

4) Product inventory control and Product Shipment Administration a. Managing inventory of finished

products; b. Making reservations for specific product in accordance with product selling

directives; c. Organizing transport for product shipment in accordance with accepted orders

requirements; d. Negotiating and placing orders with transport companies;



e. Releasing material for shipment; f. Preparing accompanying documents for shipment; g. Confirming shipment and perform invoicing.

These processes and sub processes will be further detailed in the next session of this document in BPMN models.

3 – BPMN Modeling This section describes the modeling of the four core processes and their sub‐process

using the BPMN 2.0 notation. The tool used to model the processes was Signavio.

Order Processing and Production Scheduling:

The file Order_Processing_Production_Scheduling.pdf shows the modeling of this core process. The three sub‐processes shown here are displayed in the subsequent pages, with relevant meaningful naming.The ‘Making reservations for specific product in accordance with product selling directives’ and ‘Raw Material Supply AVERS’ sub‐processes are covered in the ‘Material Control & Procurement’ core process.

Production Control:

The file Production_Control.pdf shows the modeling of the entire production control process. When a Production Request is received, the system first assures that it has means to fulfill the order, by checking if the production process is well known (existence of product rule) and if it can have enough raw materials. If none of these conditions are met, the order is then rescheduled so that these constraints can be further met. If the conditions are met, the system verifies if the needed raw materials are already available and allocates it to the production line. If not it requests its movement to the production line before allocation. When the raw material is finallyreserved for production, the system commands the beginning of the order with the allocated resources and,when finished,transfers the products from its temporary storage to the destination warehouse.

Material Control and Procurement:

The file Material_Control_and_Procurement.pdfshows the sub‐processes and their respective activities that are performed by the raw material supply department of AVERS OEM, as well as the interactions with the external material suppliers. There are basically three important entities that the raw material supply processes deal with: the material request orders, the replenishment orders and the material transfer orders. The first correspond the internal requests within AVERS from different departments to the raw material supply department. The second are the purchase orders sent to external material suppliers. Finally, the third are the orders to move stock from warehouses to the locations which requested them.

Product inventory control and Product Shipment Administration:

The file Product_inventory_control_and_Product_Shipment_Administration.pdf shows the process model covering shipment details like selecting a logistics carrier, organizing the



shipment, etc. Furthermore, inventory activities are modeled like updating the inventory after sending a product to a customer, sending an invoice to the customer, etc.

4 – Business Service Analysis In this section, the various business services that perform all the process activities in the previous sections are defined. A business service basically consists of an abstract design specifying the Main Functionality, the input parameters and the output of the functionality. It is designed such that it can be implemented by any IT service. The following illustrates the Business Services defined in each of the core processes of the AVERS Supply Chain.

Order Processing and Production Scheduling:

Order Management Services:

Register Purchase Order Customer Name Customer Address Customer SSN / Tax Number Customer Credit Card Number ( IF individual) Ordered Item

INPUT Purchase Order

Quantity Order ID (Primary Key) Customer Information Ordered Item

OUTPUT Purchase Order (Registered)

Quantity Verify Purchase Order

Order ID (Primary Key) Customer Information Ordered Item

INPUT Purchase Order (Registered)

Quantity Order ID (Primary Key) OUTPUT Verification Result Boolean (Accepted/Rejected)

Consolidate Single Order Customer Status (standard/preferred/individual) Order ID (Primary Key) Customer Information Ordered Item

INPUT Purchase Order (Verified)

Quantity Order ID (Primary Key) Customer Information Ordered Item(s)

OUTPUT Purchase Order (Consolidated)

Quantity Create BILL

Order ID (Primary Key) Customer Information Ordered Item(s)

INPUT Purchase Order (Consolidated)

Quantity OUTPUT BILL Order ID (Primary Key)



Customer Information Ordered Item(s) Quantity Product(s) Price (excluding Shipping Cost)

Customer Relationship Management Services:

Check Customer Type Order ID (Primary Key) Customer Information Ordered Item

INPUT Purchase Order (Registered)

Quantity OUTPUT Customer Type Standard/Preferred Retailer / Individual Check Credit Worthiness (Individual Customers)

Customer SSN / Tax Number INPUT Customer Information Customer Credit Card Number

OUTPUT Credit Worthiness Status Boolean (Success / Failure)

Production Control:

Production Request Services

Create Production Request Product Type ID Product Rule ID Production Line ID Quantity

INPUT Production Request Information

Storage Warehouse OUTPUT Production Request

Order Information Production Request Order ID

Create Product Rule Not Found Alarm Product Rule ID INPUT Product Request

Information Product Type ID OUTPUT Alarm Information Alarm ID CreateNot Enough Raw Material Alarm

Material ID INPUT Material Information Quantity

OUTPUT Alarm Information Alarm ID Reschedule Production Request

Production Request Order ID INPUT Production Request Order Information Error Type

Production Rule Services

Check Existence of Product Rule INPUT Production Rule Product Type ID



Information Product Rule ID

OUTPUT Production Rule Information Response

Is Production Rule Available (Boolean)

Check For Substitute Product Rule Product Rule ID INPUT Production Rule

Information Product Type ID OUTPUT Substitute Production

Rule Information Substitute Product Rule ID

Production Line Services

Check Compliance of Production Line to Product Rule Product Rule ID Production Request Order ID

INPUT Production Schedule Information

Production Line ID OUTPUT Production Line

Information Response Is Production Line Ready for Product Rule (Boolean)

Prepare Production Line Product Rule ID Production Request Order ID


Production Line ID Production Line ID Production Line Resetting ID

OUTPUT

Production Line Information Response

Is Production Line Ready (Boolean) Allocate Raw Material To Production Line

Product Rule ID Production Request Order ID Production Line ID


Quantity Material ID Quantity Allocated Location ID Product Line ID

OUTPUT

Material Allocation Data[]

Production Request Order ID Produce End Product According To Product Rule

Product Rule ID Production Request Order ID Production Line ID


Quantity Production Response ID Production Lot ID Product ID

OUTPUT

Production Data[]

Temporary Storage Location ID Move Product to Inventory

Production Response ID INPUT Production Data Storage Warehouse

OUTPUT Product Movement Product ID



Origin Location ID Destination Location ID

Data[]

Production Response ID

Raw Material Services

Check Availability of Raw Materials Material ID INPUT Production Rule

Information Quantity OUTPUT Production Rule

Information Response Is Raw Material Available (Boolean)

Request Transfer of Raw Material to Production Line Material ID INPUT Material Movement

Request Data[] Quantity Material ID Quantity Moved Origin Location ID

OUTPUT

Material Movement Data[]

Destination Location ID

Material Control and Procurement:

Inventory Management Services

CheckInventoryStatus Material ID INPUT Material Information Needed Quantity Amount Avaialbility (Boolean) Material Data (ID, name, characteristics, etc)

OUTPUT Inventory Information

Stock Data (number, location) CreateTransferMaterialOrder

Material ID Source Location Destination Location Requested Quantity

INPUT Material Transfer Information

Requisitioner Data Transfer Order ID Material Data Quantity Source Location Destination Location

OUTPUT Material Transfer Order Information

Estimated Delivery Date and Time StockReceivedMaterial

Replenishment Order ID Material Data Storage Location

INPUT Material Information

Quantity OUTPUT Stock Operation Material Data



Quantity Stored Storage Location

Information

Operation Success Flag (Boolean)

Material Request Services

CreateMaterialRequest Material ID Requisitioner Data Quantity

INPUT Material Request Information

Delivery Location Request Order ID Requisitioner Data Material Data Quantity

OUTPUT Material Request Order Information

Delivery Location CollectMaterialRequestsTo Replenishment Order

Material ID INPUT Material Request Information Requested Quantity

Replenishment Order ID OUTPUT Grouping Replenishment Order Information Is Ready to Dispatch (Boolean)

UpdateMaterialsDeliverySchedule Replenishment Order ID Material Data Quantity Delivery Location

INPUT Material Delivery Schedule Change Information

Estimated Delivery Date and Time Replenishment Order ID Material Data Quantity Delivery Location

OUTPUT Material Delivery Schedule Information

Estimated Delivery Date and Time CheckOrderCompliance

Replenishment Order ID Received Material Data

INPUT Replenishment Order and Received Material Information Received Quantity

Replenishment Order ID Material Compliance Flag (Boolean)

OUTPUT Order Compliance Information

Material Quantity Compliance Flag (Boolean) CheckMaterialSpecificationCompliance

Replenishment Order ID INPUT Replenishment Order and Received Material Information

Received Material Data

Replenishment Order ID OUTPUT Order Compliance Information Material Specifications Compliance Flag

(Boolean)



Supplier Relationship Services

FindSupplier Material Data Requisitioner Data Requested Delivery Location

INPUT Requested Material and Location Information

Requested Quantity Supplier ID OUTPUT Supplier Information Supplier Data (name, address, etc.)

ReleaseReplenishmentOrderInvoice Replenishment Order ID Expected Payment Date

INPUT Replenishment Order Data

Payment Method Replenishment Order Data OUTPUT Replenishment Order

Invoice Invoice Data

Notification Services

NotifyRequisitionersMaterialRequestStatus INPUT Material Request

Information Request Order ID

Request Order ID Requisitioner Data Request Order Status

OUTPUT Notification Information

Notification Date NotifyRequisitionersDeliverySchedule INPUT Request Order


Request Order ID Delivery Location Estimated Delivery Date and Time Quantity


Notification Date NotifyRequisitionersAvailableMaterial INPUT Replenishment Order


Request Order ID Material Data Stock Location Available Quantity


Notification Date

External Supplier Services

QuoteMaterialPrice Material Data INPUT Material Information Requested Quantity



Requested Delivery Date Material Data Price

OUTPUT Quote Information

Payment Data PlaceMaterialReplenishmentOrder

Material Data Quantity Requested Delivery Date Delivery Location

INPUT Requested Material Information

Agreed Price Replenishment Order ID Material Data Estimated Delivery Date and Time Delivery Location Final Price

OUTPUT Replenishment Order Information

Payment Data CheckMaterialReplenishmentOrderStatus INPUT Replenishment Order

Information Replenishment Order ID

Replenishment Order ID Current Status Estimated Delivery Date and Time

OUTPUT Replenishment Order Status Information

Delivery Location CheckPaymentConfirmation

Replenishment Order ID INPUT Replenishment Order Information Payment Data (date, amount, mean, etc.)

Replenishment Order ID OUTPUT Payment Confirmation Information Payment Confirmation Flag (Boolean)

Product inventory control and Product Shipment Administration:

Prepare Inventory Results for Logistics Provider Order ID (Primary Key) Customer Information Ordered Item(s) Quantity

INPUT BILL

Product(s) Price (excluding Shipping Cost) Ordered Item(s) Number of Items Warehouse Address (Shipment Pickup)

OUTPUT Shipment Information

Delivery Address Collect Shipment Quotes

OrderID Ordered Item(s) Number of Items Warehouse Address (Shipment Pickup)

INPUT Shipment Information

Delivery Address



OrderID Carrier Expected Shipment Date Expected Delivery Date Shipment option

OUTPUT Shipment Details

Total shipment price Book selected route/carrier

Carrier Number of Items Expected Shipment Date Expected Delivery Date

INPUT Shipment Details

Total Shipment Price Order ID (Primary Key) OUTPUT Approval Status Boolean (Approved/Rejected)

Inform pick‐up date for products(Notification) INPUT Shipment order details Order ID

Shipment Order ID Shipment Pickup Date Warehouse Address (Shipment Pickup)

Delivery Address Inform updated Shipment Status (Notification)

Order ID Shipment Order ID Carrier Number of Items Expected Shipment Date Expected Delivery Date Shipment Selected Warehouse Address (Shipment Pickup) Delivery Address

INPUT Shipment order details

Total Shipment Price Send Invoice (Notification)

Order ID (Primary Key) Carrier Number of Items Delivery Address Shipment Date Customer Information Total Shipment Price Ordered Item(s) Quantity

INPUT Shipping Order Confirmation

Total Price (including Shipping Cost)



5 – Application of SOA Design Principles The design of a SOA system is based on a clear definition and description of underlying services, which can then be composed in required ways to execute complete business processes. The Business Services, as we may call them, provide a technical grounding to execute a function, or provide an interface to access a system. The design of these services must be done in such a way that each piece of functionality is modularized properly into a Business Service that can be invoked independently, with the appropriate input parameters. Finer operations that must be executed in a special sequence, or ones that require state to be maintained, must be encapsulated into business functions that can be invoked on their own. The following is a description of a few design decisions that have been made based on the SOA design principles as outlined in the problem description:

High Cohesion: The business services that have been described must be flexible enough to be able to be executed in any order. The arguments it accepts as input must contain all the information required to perform that business service, so that any chaining of information interchanges between services is not necessary. In the Order Management Business Services description, it can be seen that all the business functions accept the Order Id as the main key for performing operations. To get any details about orders, or customers related to that order, the Order Id can be supplied to get the initial information, which can then be used to perform additional operations. Any new application or service bus that needs to interface with these services just needs to know the interface definition and make the corresponding calls. This allows us to have an architecture with a high degree of cohesion. If this is absent, we might have different applications with unstandardized interface definitions, different message formats etc. which reduce interoperability. In such a case, more intermediaries like adapters and message transforming components will have to be added. In some cases, the interface return type definitions can be missing key information that is not retrievable by other ways. We have attempted to keep these issues in mind while designing the business services.

Loose Coupling: This is closely related to the principle of High Cohesion. It deals with standardized and self‐contained input and output parameters, which means that any application which has this information can invoke the business service. This means that there is no implied information or shared database which supplies working data that is not passed through the business service interface. At the physical implementation level, it will also mean that there is a common infrastructure for invoking a business function, which allows any service to be invoked seamlessly of its physical implementation details (e.g. CORBA, Web Services). Loose coupling also includes asynchrony in operation. For example, the Ordering process is divided into functions like Customer checks, Quantity retrieval, payment processing etc. Each business service operates on its own, and can execute in parallel with the others. On the level of a single process, all operations that can be done in parallel, such as



customer checks and quantity retrieval, can be done in parallel. Execution can move on without waiting for the results of any business function. On a process engine level, components that that have a higher priority and/or larger volume, can be made redundant to be able to service requests from many process instances simultaneously.

Appropriate Granularity: Determining the level of granularity for a business function is of prime importance. Choosing a level of granularity that is too fine will result in a very large service portfolio. This will typically include many services that are executed in the same orchestration, and hence which belong to the same logical service. It will result in a cluttered SOA design which might complicate the design of the end business processes. If the level of granularity is too coarse, it might result in a design that makes it impossible to invoke specific business functions. For e.g., in the order process, if approve shipping details is included in the bill generation function, they will be tied together, and it will be impossible to approve shipping details at a later time, in an asynchronous manner. It is important to note that the business services defined will be further developed from infrastructural and component based services, so it will always be possible to drill down the business services to finer components. It is not these lower level views of the SOA design that are described here. The granularity of the business functions should also be at an appropriate level so that the business processes that execute them can do it in a dynamic and lucid manner.



6 – Conclusion The Business Process Modeling of the AVERS supply chain described in this document

shows the importance of the top‐down SOA development approach. The ANSI/ISA‐95 standard is used to define the core processes, along with the respective sub‐processes in each domain of the Supply Chain. Then, the BPMN 2.0 is used to model the identified processes and sub‐processes using the Signavio Tool. In the next step, the business services that perform the process activities are designed in an abstract manner, specifying the Main Functionality, the input parameters and the output of the functionality. The purpose of such an abstract design is for the ease of implementation by any IT Service. Finally, it is seen how the design of the business services is consolidated by applying the different SOA design principles.

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Papazoglou Webserv 2e Cs Solution Notes Part2