business process overview ie 450 enterprise perspective of manufacturing system

SAP America, Inc.SAP America, Inc.

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Business ProcessBusiness Process Overview Overview

IE 450 Enterprise Perspective IE 450 Enterprise Perspective of Manufacturing Systemof Manufacturing System


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Business Processes FunctionalityBusiness Processes Functionality

Financial / Management Financial / Management Accounting and ReportingAccounting and Reporting

ProcurementProcurement

Manufacturing Planning Manufacturing Planning & Execution& Execution

Customer Order Customer Order ManagementManagement


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SalesSales

ProductionProduction

PurchasingPurchasing

Sales Sales orderorder

SOPSOP MPSMPS MRPMRPPlannedPlannedorderorder

Produc-Produc-tiontionorderorder

DeliveryDelivery CustomerCustomerBillingBilling

ShopShopfloorfloorcontrolcontrol

Requi-Requi-sitionsition

VendorVendorselectionselection

PurchasePurchase order order

GoodsGoodsreceiptreceipt

Invoice Invoice verifi-verifi-cationcation

Financial controllingFinancial controlling

Resource controllingResource controlling

Logistics controllingLogistics controlling Sales, Production, Purchasing, WarehouseSales, Production, Purchasing, Warehouse

CustomerCustomerOrderOrder CustomerCustomer

PaymentPayment

Vendor Vendor PaymentPayment

InventoryInventorySourcingSourcing

Presales Presales ActivityActivity



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Manufacturing Manufacturing Planning & ExecutionPlanning & Execution


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Bill Of Material Processing (BOMP)

Few products are a single component

Lead times for the components vary

A BOMP “explodes” out the requirements for a final product


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Example - A car

One Explorer

5 tires Firestone ATX size 270-r60-16

20 lug nuts

4 Crome-alloy wheels

1 steel wheel

1 left front fender

1 right front fender

….


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Business Process Overview

Fore-casting

Sales & OperPlanning

MPS MRPOrder

Settlement

CostingInventory

ManufacturingExecution

Capacity

Production Master Data

Manufacturing PlanningManufacturing Planning& Execution& Execution

Reporting and Analysis

Demand

Mangmnt


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Business Process OverviewBusiness Process Overview

Requirement Requirement for Goods / for Goods /

ServicesServices

Requirement Requirement for Goods / for Goods /

ServicesServices

PurchasePurchase

OrderOrder

PurchasePurchase

OrderOrder

GoodsGoods

ReceiptReceipt

GoodsGoods

ReceiptReceipt

InvoiceInvoice

VerificationVerification

InvoiceInvoice

VerificationVerification

VendorVendor

PaymentPayment

VendorVendor

PaymentPayment

Planning, Reporting and AnalysisPlanning, Reporting and AnalysisPlanning, Reporting and AnalysisPlanning, Reporting and Analysis



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Customer Order Customer Order ManagementManagementFinancial / Management Financial / Management

Accounting and ReportingAccounting and Reporting


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CustomerCustomerOrderOrder



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Inventory Inventory SourcingSourcing

Inventory Inventory SourcingSourcing DeliveryDeliveryDeliveryDelivery BillingBillingBillingBilling Customer Customer

PaymentPayment

Customer Customer PaymentPayment

Sales Order Sales Order ProcessingProcessing

Sales Order Sales Order ProcessingProcessing

Pre-Sales Pre-Sales ActivitiesActivities

Pre-Sales Pre-Sales ActivitiesActivities

Planning, Reporting and AnalysisPlanning, Reporting and AnalysisPlanning, Reporting and AnalysisPlanning, Reporting and Analysis


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Reporting &

Analysis

Reporting &

Analysis

Overview

Overview

StructureStructure&&

OrganizationOrganization

Planning & ForecastingPlanning & Forecasting

DailyDailyActivitiesActivities

PeriodicPeriodicProcessingProcessing

FOUNDATIONFOUNDATION BUSINESS PROCESSBUSINESS PROCESS


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A document that specifies the material and quantity requested by a particular customer

System Walkthrough

Sales Order:Sales Order:



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System Walkthrough

A statement of “the anticipated build schedule” and the impact on our material and capacity requirements plan

Master Production Scheduling (MPS):Master Production Scheduling (MPS):


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A planning system of gross to net calculation of the material plan

System Walkthrough

Material Requirements Planning (MRP):Material Requirements Planning (MRP):


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A documented request for purchase goods or services

Can be created manually or automatically during the MRP process

System Walkthrough

Purchasing Requisition:Purchasing Requisition:


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A binding contract with a vendor to supplyA binding contract with a vendor to supplycertain materials or services based on certain certain materials or services based on certain terms and conditionsterms and conditions

System WalkthroughSystem Walkthrough

Purchase Orders:Purchase Orders:


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The recording of the movement of materials into the warehouse

System Walkthrough

Goods Receipt:Goods Receipt:


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The process of receiving the vendor invoice, comparing it with the purchase order and goods receipts, and recording the corresponding liability to the vendor

System Walkthrough

Invoice Receipt and Verification:Invoice Receipt and Verification:


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Payment processing reduces the liability to a vendor and a company’s cash balance, records discounts taken, and disburses payment

System Walkthrough

Vendor Payment:Vendor Payment:


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The conversion of the order proposal generated by MRP

System Walkthrough

Planned Order Processing:Planned Order Processing:


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The authorization for the shop floor to produce a material

System Walkthrough

Production Order:Production Order:


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The process to issue material from the warehouse to a production order

System Walkthrough

Goods Issue:Goods Issue:


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The process of recording the customer’s payment, increasing the customer’s available credit, reducing receivables, and recording cash discounts given

System Walkthrough

Payment Processing:Payment Processing:



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The recording of actual results from production

System Walkthrough

Completion Confirmation of the Completion Confirmation of the Production Order:Production Order:


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System Walkthrough

The goods receipt of the quantity of the material produced into the warehouse

Production Order Receipt:Production Order Receipt:


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System Walkthrough

The transfer of the ownership of the goods byThe transfer of the ownership of the goods by::

Creating a delivery documentCreating a delivery document

Picking the goods for shipmentPicking the goods for shipment

Physically transferring the goods to the customerPhysically transferring the goods to the customer

Financially recording the goods issueFinancially recording the goods issue


Customer Delivery:Customer Delivery:


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System Walkthrough

The process of billing and invoicing the customer for goods delivered

Customer Billing:Customer Billing:



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System Walkthrough

A flexible set of tools used to analyze financial and management performance

Financial / ManagementFinancial / ManagementAccounting and Reporting:Accounting and Reporting:


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Customer Order Customer Order ManagementManagementFinancial / Management Financial / Management

Accounting and ReportingAccounting and Reporting

business process overview ie 450 enterprise perspective of manufacturing system

Documents

procurement slide

reporting slide

mrp system walkthrough

final product slide

mrp process system walkthrough

planning system of gross

order processing

order proposal