Business Process Overview IE 450 Enterprise Perspective of Manufacturing System

Financial / Management Accounting and Reporting Procurement Manufacturing Planning & Execution Customer Order Management

Manufacturing Planning & Execution

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

Example - A car One Explorer 5 tires Firestone ATX size 270-r lug nuts 4 Crome-alloy wheels 1 steel wheel 1 left front fender 1 right front fender ….

Procurement

Procurement

Manufacturing Planning & Execution Procurement Customer Order Management Financial / Management Accounting and Reporting

Customer Order Management

Financial / Management Accounting and Reporting

FOUNDATION BUSINESS PROCESS

A document that specifies the material and quantity requested by a particular customer System Walkthrough Sales Order:

System Walkthrough A statement of “the anticipated build schedule” and the impact on our material and capacity requirements plan Master Production Scheduling (MPS):

A planning system of gross to net calculation of the material plan System Walkthrough Material Requirements Planning (MRP):

A documented request for purchase goods or services Can be created manually or automatically during the MRP process System Walkthrough Purchasing Requisition:

Purchase Orders:

The recording of the movement of materials into the warehouse System Walkthrough Goods Receipt:

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:

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

The conversion of the order proposal generated by MRP System Walkthrough Planned Order Processing:

The authorization for the shop floor to produce a material System Walkthrough Production Order:

The process to issue material from the warehouse to a production order System Walkthrough Goods Issue:

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:

The recording of actual results from production System Walkthrough Completion Confirmation of the Production Order:

System Walkthrough The goods receipt of the quantity of the material produced into the warehouse Production Order Receipt:

System Walkthrough Customer Delivery:

System Walkthrough The process of billing and invoicing the customer for goods delivered Customer Billing:

System Walkthrough A flexible set of tools used to analyze financial and management performance Financial / Management Accounting and Reporting:

Manufacturing Planning & Execution Procurement Customer Order Management Financial / Management Accounting and Reporting