Magal Chapter 5 - Chapter 5 The Production Process Click to...

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Unformatted text preview: Chapter 5: The Production Process Click to edit Master subtitle style 1 1 Magal and Word | Essentials of Business Processes and ! and Information Systems | © 2009 Information Systems | © 2009 2/25/11 Outline A Basic Production Process Role of Enterprise Systems in the Production Process Exercise Using Simulated SAP 2 2 Magal and Word | Essentials of Business Processes and 2/25/11 ! and Information Systems | © 2009 Information Systems | © 2009 Basic Production Process Definition Plan to produce – what to make, how, quality level, etc. Design to produce (customizable products) – computers, cars Engineer to produce (highly specialized)- very specific product Key concepts and assumptions Conceptual Framework Physical flow 3 3 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 Data and Document Flow 2/25/11 Key Concepts and Assumptions Production processes and strategies Assembling vs. manufacturing Discrete vs. process manufacturing Make-to-stock vs. make-to-order Master Data in the Production Process What were master data in procurement and fulfillment? Bill of Material Work Centers Product Routing 4 4 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Processes and Assembling vs. manufacturing Components vs. raw materials Components: nuts, bolts, wheels -> skateboard Raw materials: plastic pellets -> plastic plate Discrete vs. process manufacturing – NOTE Discrete Distinct items (countable) Pencil, computer, coffee cup, skateboard Component parts generally identifiable 5 5 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Processes and Make-to-order vs. make-to-stock Make-to-order Process triggered by response to customer order Make-to-stock Process triggered by need to increase inventory SSB characteristics Discrete From components - assembly Make to stock- selling out of inventory Material type: assembled product (vs. 6 6 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Bill of Material (BOM) Identifies components needed to make one unit of finished product Result of the product design process which leads to an engineering drawing SSB BOM for standard skateboard (next slide) Multiple levels of BOM A component may have its own components Example: components of the standard truck assembly Which components could be manufactured 7 7 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Engineering Drawing of the 8 8 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Bill of Material 9 9 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Work Center Where the work of assembling the product occurs One or more tasks are completed in each work center SSB Work centers WC# 200: Material staging WC# 230: Final assembly WC# 300 Packing and inspection SSB “Plant” includes Front office space 10 10 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 SSB Plant Layout 11 11 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Product Routing Define the steps or operations needed to produce the product For each operation Work center Time needed (for some unit of measure, such as “each”) Materials used 12 12 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Product Routing for Standard 13 13 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production capacity Number of skateboards per unit of time (hour, day) Approximately 50 per day (8 hours) Operation Number 10 20 30 40 50 60 Operation Name Stage Material Assemble SB Inspect Deck Pack in Packing Box Final Inspection Move to Storage Total Time Time (minutes) per unit Time needed for 50 SB (or operation) (minutes) 5 per 50 6 per SB 1 per SB 1 per SB 1 per SB 5 per 50 5 300 50 50 50 5 460 = 7.66 hours 14 14 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Conceptual Framework Physical Flow Document and Data Flow Planned Order Production Order Material Withdrawal Slip Goods Receipt Document Information Flow Instance-level Information Process-level Information 15 15 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Physical Flow 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 16 16 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 2/25/11 A Basic Production Process 17 17 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Planned Order 18 18 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Order – Initial State 19 19 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Order – Completed 20 20 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Material Withdrawal Slip 21 21 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Goods Receipt Document 22 22 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Role of Enterprise Systems in the Production Process Execute the Process Request Production Authorize Production Issue Raw Materials to Production Order Create (Assemble) Products Receive Finished Goods into Storage Capture and Store Process Data Monitor the Process Instance-Level Information Flow 23 23 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Information Flow Instance level information What is the status of a particular planned order Has it been approved? Have the skateboards been produced? What step in the process is the order in? Process level information What is the average time needed to make a skateboard? What is the average time taken to complete 24 24 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 each step in the routing? 2/25/11 ES in the Production– Process Execution and Capture and Store 25 25 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Creating a Planned Order in SAP 26 26 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Goods Issue for Production Order in SAP 27 27 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Confirmation in SAP 28 28 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Goods Receipt for Production Order in 29 29 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 ES in Production – Monitor Instance level Inventory status report Stock requirements list Drill down to a production order Process level 30 30 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 2/25/11 Stock Requirements List in SAP 31 31 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Production Order Status in SAP 32 32 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Process Level Information Average time to produce a skateboard Average time to produce an order (of 50) How many on time? How many delayed? Reasons for delay 33 33 Magal and Word | Essentials of Business Processes and Information Systems | © 2009 2/25/11 Process Level Information 34 34 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 Exercise Using Simulated SAP The exercises will take you through the following steps that have been discussed in this chapter: Create a planned order Convert the planned order to a production order Issue materials to the production order Confirm production Move finished materials to inventory 35 35 Magal and Word | Essentials of Business Processes ! and Information Systems | © 2009 2/25/11 ...
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This note was uploaded on 02/24/2011 for the course BA 3351 taught by Professor Yu during the Spring '09 term at University of Texas at Dallas, Richardson.

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