Management

Information System
Integrated Business Processes
with ERP System

Mr. Thien Nguyen

thien.nguyen@isb.edu.vn
 Agenda

1. Marketing to Opportunity
2. Order to Cash
3. Procurement to Pay
4. Make to Stock
5. Group Activities
6. Q&A
 Marketing-to-
1 Opportunity
 Marketing-to-Opportunity
Scenario Overview

The following business roles are involved in this scenario:

Creating
Creating Creating and
and Creating
Target Developing
Executing Lead
Group Opportunity Marketing Sales
Campaign
Assistant Representative

• Manage marketing and pre-sales activities with the goal of generating new business for customers and
prospects.
• Run campaigns, capture responses, generate leads, manage opportunities, as well as initiate and track related
sales activities.
• Without campaigns, which means that no marketing department is involved, and leads and opportunities can be
created without using a campaign.
 Marketing-to-Opportunity
Process Details: Creating Target Group
Creating Target Group X

Creating
Creating and
Define and maintain target and Creating
Executing Lead
Developing Performed by
group Opportunity
Campaign Marketing Assistant
i Marketing Manager

• Create a target group based on search criteria, reports, or transactional data.

• Manually add accounts and contacts that do not match the search parameters, but that also need to be
included in the target group.
• Before assigning your target group to a campaign, you can check whether all members in the target group can
be contacted using one particular channel of communication.
 Marketing-to-Opportunity
Process Details: Creating and Executing Campaign

Creating and Executing Campaign X

Execute Contact Finalize

Create target Capture and check Creating and
Creating Target and Creating
campaign group campaign campaign Developing
Group monitor Lead
members responses results Opportunity
campaign
i i i i i

• Create a campaign, assign the newly created target group, and select a campaign type. Performed by
Marketing Assistant
• Takes care of contacting the exported target group members. Marketing Manager
• Captures the campaign responses by assigning an activity, a lead, an opportunity, a sales
quote, or a sales order to a campaign.
• The supported activity types are e-mail, phone call, fax, and letter.
 Marketing-to-Opportunity
Process Details: Creating and Developing Opportunity
Creating Lead - Lead Generation by Marketing and Hand X
Over to Sales

Creating Creating Accept Creating and

and Create Qualify Hand Developing
Target or reject
Executing lead lead over lead Opportunity
Group lead
Campaign i i i i
Click here to display process
variants
Performed by
• Create a lead as a follow-up document of a campaign response. The lead can also be Marketing Assistant
created without any preceding document. Marketing Manager
• A lead is used to qualify a business partner's interest in a particular product or service,
with the aim of establishing and subsequently influencing this interest.
• Once a lead has reached a certain status, it can be handed over to sales to decide whether
an opportunity should be created.
• The sales employee finds the handed over lead in his work inbox and can either accept or
reject it. When accepting or rejecting the lead, the sales employee must maintain a reason.
 Marketing-to-Opportunity
Process Details: Creating and Developing Opportunity

Creating and Developing Opportunity

X

Creating
Creating Plan and
and Creating Create Manage Monitor Finalize
Target track sales Performed by
Executing Lead opportunity opportunity pipeline opportunity
Group activities Sales
Campaign
i i i i i Representative,
Sales Manager

• Create an opportunity as a follow-up document to a lead. All relevant information from the lead is taken
over to the opportunity automatically.
• Manage and capture a large variety of data within the opportunity; can add products, documents, or links
related to the opportunity; All contacts related to the opportunity are available, and any known
competitors can be assigned.
• If an opportunity is in the final sales phase, and the customer wants to place an order, the status can be set
to won, and a follow-up quote or order can be created as a follow-up document.
• In case the opportunity could not be won, the status must be set to Lost. A reason must be maintained for
the opportunity, regardless of whether it has been won or lost.
 Marketing-to-Opportunity
Business Value

Plan Capture Qualify Convert

Analyze Capture
Define Hand Over Convert to
Market and Create Execute Responses Qualify Measure
Target Leads to Opportuniti
Identify Campaigns Campaigns and Create Leads Success
Groups Sales es
Potential Leads
 Order-to-Cash
2 (Sales from Stock)
 Order-to-Cash (Sell-from-Stock)
Scenario Overview

Handling an Processing
Creating Creating Initiating Processing Creating
Incoming Receivables
Sales Sales Creating Sales Orders Outbound Outbound Customer
Customer and
Quotes Contract Delivery Delivery Invoices
Inquiry Payments

Creating
Processing
Down
Receivables Processing
Payment
Marketing-to-Opportunity and Inspections Customer Returns
Request -
Payments
Customer

The following business roles are involved in this scenario:

Sales/Customer Warehouse Accounts Receivable

Warehouse Operator
Service Representative Manager Accountant
 Order-to-Cash (Sell-from-Stock)
Scenario Overview

This scenario enables you to sell goods from stock using a wide range of standard features to handle sales quotes, sales
orders, deliveries, customer invoices, and payments. This scenario includes features such as:
• Available-to-Promise (ATP) Check: The system informs you of whether the products can be delivered at the
requested date and in the requested quantity
• Pricing: The system determines prices and discounts automatically. You can also enter these manually, if required.
The system can support you by displaying the cost and profit margin
• Credit Card: Sales order processing supports the payment by credit cards with integration to payment service
providers
• Credit Limit Check: You can minimize credit risk by specifying a credit limit for a customer. If a credit limit in an
order is exceeded, a delivery block is set automatically
• Automatic Order Creation: A sales order can be created on the basis of a lead, opportunity, sales quote, or
through an e-shop or B2B interface (external system)
 Order-to-Cash (Sell-from-Stock)
Process Details: Handling an Incoming Customer Inquiry

Handling an Incoming X
Customer Inquiry

Receive an Processing
incoming fax Creating Initiating Processing Creating
Creating Creating Sales Orders Receivables
or e-mail and Sales Outbound Outbound Customer
Sales Quotes and
log an inquiry Contract Delivery Delivery Invoices Payments
i
Click here to display process
variants
Creating
Processing
Down
Receivables Processing
Payment
and Inspections
Request -
Payments
Customer
Sales/Customer
Service Representative

• Manage the arrival of incoming customer inquiries via various input channels such as phone, e-mail, or the Internet.
• Quickly identify the account and contact, there are several possibilities such as automatic identification based on the
telephone number of an incoming call, or you can enter the name of a caller manually in a Google-like search.
 Order-to-Cash (Sell-from-Stock)
Process Details: Creating Sales Quotes
Creating Sales Quotes X

Handling an Processing
Creating Initiating Processing Creating
Incoming Create a Approve a Creating Sales Orders Receivables
Sales Outbound Outbound Customer
Customer sales quote sales quote and
Contract Delivery Delivery Invoices
Inquiry Payments
i i

Creating
Processing
Down
Receivables Processing
Payment
and Inspections
Request -
Payments
Customer
Sales/Customer
Service Representative

• Create a sales quote with fixed terms and price conditions when a customer requests an offer for products or
services. Create the sales quote on the basis of an opportunity or a lead and enter the necessary details in the sales
quote such as the account and the products or services.
• The cost of sales can be determined using product valuation, enabling you to evaluate the profitability of the sales
quote. Price and discount adjustments can be made in the sales quote.
• After the sales quote has been created, it is submitted based on the output settings.
 Order-to-Cash (Sell-from-Stock)
Process Details: Creating Sales Quotes
Creating Sales Contract X

Create a Approve a Creating Processing

Initiating Processing Creating
sales Quote Receivables
Sales Quote sales Creating Sales Orders Outbound Outbound Customer
for Contract and
for contract contract Delivery Delivery Invoices
Payments
i i

Creating
Processing
Down
Receivables Processing
Payment
and Inspections
Request -
Payments
Customer Sales/Customer
Service Representative

• Create a sales contract with fixed terms and price conditions when a customer requests an offer for products. Enter
the necessary details in the sales quotes for contract such as the account and the products. Enter further customer
information as additional text.
• After the sales quote has been created and approved, the sales contract is created. Sales contracts can also be
created directly, and do not require any approvals.
 Order-to-Cash (Sell-from-Stock)
Process Details: Creating Sales Orders

Creating Sales Orders X

Handling an Creating Processing

Initiating Processing Creating
Incoming Creating Create a Approve a Receivables
Sales Outbound Outbound Customer
Customer Sales Quotes sales order sales order and
Contract Delivery Delivery Invoices
Inquiry Payments
i i

Creating
Processing
Down
Receivables Processing
Payment
and Inspections
Request -
Payments Sales/Customer
Customer
Service Representative
 Order-to-Cash (Sell-from-Stock)
Process Details: Creating Sales Orders

• Create a sales order with fixed terms and price conditions when a customer orders products or services.
• The order can be created on the basis of a quote, copying all conditions from the quote to the order or you enter the
necessary details in the order such as the account, the products or services, the requested date , and customer
information as additional text.
• The product availability is checked, and the system informs you of availability.
• The system can determine the cost of sales using product valuation, enabling you to evaluate the profitability of the
order. After creating the order, you release it to logistics.
• An order confirmation form can be sent to the customer, depending on the output settings. The sales order can also
be generated automatically through business-to-business communication or a connected e-shop.
 Order-to-Cash (Sell-from-Stock)
Process Details: Processing Receivables and Payments
Handling an Creating Initiating
Incoming Creating Sales Creating Sales Orders Outbound
Customer Sales Quotes Contract Delivery
Inquiry
…
Processing Externally-Initiated Payments by Incoming X
Bank Transfer

Creating
Down Enter a Process a
Allocate a Clear a
Payment remittance bank
payment payment
Performed by
Request - advice statement Accounts
Customer
i i i i Receivable
Accountant
Click here to display process variants

• The processing of incoming payments, initiated either internally by your company or externally by your customers.
Payments can be made manually, or automatically via a payment run in which the system proposes open items for
payment. Create the payment medium, either manually or as part of an automatic run, using files for direct debit or
credit card payments.
• When the payments are credited to the company's bank account, the bank statement is entered in the system, either
uploaded electronically or entered manually, before being confirmed. If payments are initiated externally by the
customer, the bank statement provides notification of payment. The payments are matched in the system to the open
invoices before being cleared.
 Order-to-Cash (Sell-from-Stock)
Process Details: Initiating Outbound Delivery

Initiating Outbound Delivery - X

Shipment from Your Own Site

Handling an Determine ship-

Creating from and check Initiate Processing Creating
Incoming Creating Sales Creating Sales Orders outbound Outbound Customer
Customer Sales Quotes product
Contract delivery Delivery Invoices
Inquiry availability
i i …
Click here to display process
variants
Creating
Down Processing
Payment Receivables Processing
Request - and Performed by Inspections
Customer Payments
Warehouse Manager

• Enables you to manually perform ATP checks for sales order items.
• Depending on the current situation the system might change the source of supply for the sales order.
• By releasing the confirmed scheduled lines to logistics execution you initiate the outbound delivery process.
 Order-to-Cash (Sell-from-Stock)
Process Details: Processing Outbound Delivery

Processing Outbound Delivery - with Tasks X

Confirm a
Create a Create a warehouse Finalize an Processing
Initiating Accept a Creating
warehouse warehouse task and outbound Receivables
Outbound deviation Customer
request task post goods delivery and
Delivery Invoices
… i i
issue
i i i
Payments

Click here to display process variants

Processing
Inspections
Performed by
Warehouse Operator

• Depending on the complexity of your warehouse processing, the Processing Outbound Delivery business process
can help you coordinate your outbound logistics activities with or without task support from the system.
• It helps you to efficiently control and manage outbound deliveries from the time a delivery proposal is received to the
moment it is delivered to your customer or returned to your supplier.
• With the release of the outbound delivery the system prints a delivery note or sends an ASN automatically.
• The Processing Outbound Delivery business process still allows the warehouse manager to manually make
changes or create tasks for the warehouse worker.
 Order-to-Cash (Sell-from-Stock)
Process Details: Processing Inspections

Processing
Creating Initiating Processing Creating
Creating Receivables
Sales Creating Sales Orders Outbound Outbound Customer
Sales Quotes and
Contract Delivery Delivery Invoices
Payments
…
Processing Inspections X
Creating
Processing
Down
Receivables Record
Payment Inspect Decide
and inspection
Request - samples about quality
Payments results Performed by
Customer
Inspector
i i i Quality Engineer
Quality Manager
The Processing Inspections business process allows you to process, monitor, and analyze inspections of products :
• Inspections at goods receipt: Receiving inspections for supplier deliveries, first articles, customer returns, and stock transfers
• Inspections in production: In-process control and final inspections for production
• Inspections in shipping: Final inspections for customer shipments
As part of this process, you inspect the samples taken for inspection, record results, make a decision about the quality of the
inspected goods, and, if necessary, trigger corrective or preventive actions.
Planned inspections are triggered automatically based on a suitable logistics or production model. Unplanned inspections are
triggered manually by the user.
 Order-to-Cash (Sell-from-Stock)
Process Details: Creating Customer Invoices
Creating Customer X
Invoices

Transfer Processing
Creating Initiating Processing Release an
Creating invoice Receivables
Sales Creating Sales Orders Outbound Outbound invoice
Sales Quotes requests and
Contract Delivery Delivery
Payments
… i i

Creating
Processing
Down Performed by
Receivables Processing
Payment
and Inspections Accounts Receivable
Request -
Payments
Customer Accountant

• The system creates invoice requests automatically after services have been performed or products delivered.
• You must transfer these requests to an invoice which is sent to the customer and passed to Cash Flow
Management.
• You can do this manually or with an invoice run.
• It is possible to combine several requests into one invoice or split them into several invoices.
 Order-to-Cash (Sell-from-Stock)
Process Details: Processing Receivables and Payments
Processing Externally-Initiated Payments by Incoming X
Bank Transfer

Initiating Processing Creating Enter a Process a

Allocate a Clear a
Creating Sales Orders Outbound Outbound Customer remittance bank
payment payment
Delivery Delivery Invoices advice statement
… i i i i
Click here to display process variants
Creating
Processing
Down
Receivables Processing Performed by
Payment
and Inspections
Request - Accounts Receivable
Payments
Customer
Accountant

• Enables the processing of incoming payments, initiated either internally by your company or externally by your customers.
The process uses country-specific payment methods.
• Payments can be made manually, or automatically via a payment run in which the system proposes open items for
payment. You then release the payments and the system posts them to accounting. You create the payment medium,
either manually or as part of an automatic run, using files for direct debit or credit card payments.
• When the payments are credited to the company's bank account, the bank statement is entered in the system, either
uploaded electronically or entered manually, before being confirmed.
• If payments are initiated externally by the customer, the bank statement provides notification of payment. The payments
are matched in the system to the open invoices before being cleared.
 Order-to-Cash (Sell-from-Stock)
Business Value

Order Fulfill Settle

Execute
Warehouse
Initiate Create Process
Create Create Sales Create Sales Tasks Create Invoice Post to Ledger
Outbound Outbound Receivables
Opportunity Quote Order (Optional) /
Delivery Delivery
Post Goods
Issue
 Procurement to
3 Pay
 Procure-to-Pay (Stock)
Scenario Overview

Processing Processing
Processing Processing Processing Processing Processing
Planning Initiating Inbound Supplier
Purchase Requests for Purchase Inbound Payables and
Supply Purchasing Delivery Invoices
Requests Quotation Orders Deliveries Payments
Notifications

Processing
Inspections

• Purchase stock products, including those based on product specifications, based on a requirement that can be
generated from a planning system, such as a Materials Requirements Planning (MRP) system.
• It covers all stages of the procurement process, from demand planning and creation of a purchase order, through
automatic or manual assignment of sources of supply, sending the purchase order to a supplier, to goods and
services receipt, invoice verification, and payment.

The following business roles are involved in this scenario:

Performed by
Operational Supply Strategic Warehouse
Accounts Payable/
Buyer Planner Buyer Manager
Accountant
 Procure-to-Pay (Stock)
Process Details: Planning Supply
Planning Supply X

Check and Processing Processing

Plan Processing Processing Processing Processing
Plan material resolve an Initiating Inbound Supplier
capacity Purchase Requests for Purchase Inbound
exception Purchasing Delivery Invoices
Requests Quotation Orders Deliveries
Notifications
i i i …

Processing
Inspections
• Enables your company to effectively carry out material and capacity planning.
• Up-to-date overview of the demand and supply situation for either a product and supply
planning area combination, or a product, product specification, and supply planning area
combination. Performed by
• The multi-level planning run calculates the required supply and then creates the supply and Supply Planner
demand pegging network accordingly, also taking into consideration the selected product
specification.
• You can then decide what action to take, for example, you can manually create or update
planning proposals.
• The load leveling function is also available to verify the feasibility of the supply plan and
level out the load if it is not possible to increase capacity.
 Procure-to-Pay (Stock)
Process Details: Initiating Purchasing

Initiating X
Purchasing

Processing Processing
Processing Processing Processing Processing Processing
Planning Initiate Inbound Supplier
Purchase Requests for Purchase Inbound Payables and
Supply purchasing Delivery Invoices
Requests Quotation Orders Deliveries Payments
Notifications

Processing
Inspections
Performed by
Supply Planner

The Initiating Purchasing business process enables you to create purchase requests based
on purchase proposals, including product specifications, and forward these purchase
requests to the purchasing department.
 Procure-to-Pay (Stock)
Process Details: Processing Purchase Requests
– Bundle and Order
X
Processing Purchase Requests –
Bundle and Order

Bundle and
Assign a
create a
source of
purchase
supply
order Processing Processing
i i Processing Processing Processing
Planning Initiating Inbound Supplier
Requests for Purchase Inbound
Supply Purchasing Delivery Invoices
Quotation Orders Deliveries
Notifications
…
Initiate RFQ
processing

i Processing
Performed by Inspections
Click here to display process variants
Operational Buyer

• Enables you to transfer purchase requests into purchase orders.

• You can assign missing sources of supply and then bundle multiple assigned purchase requests into purchase
orders.
 Procure-to-Pay (Stock)
Process Details: Processing Requests for Quotation

Processing Requests for Quotation X

Compare Processing
Processing Group Processing Processing
Planning Initiating Create a quotes and Inbound
Purchase sourcing Purchase Inbound
Supply Purchasing request for Enter quotes create Delivery
Requests request Orders Deliveries
quotation follow-up Notifications
items
documents
i i i i …

Processing
Inspections
• Enables your purchasing department to bundle your company's purchasing requirements and to
find appropriate sources of supply for the materials and services required.
• This includes finding sources of supply for purchase requests, for example, and for the negotiation of
Performed by
new or expiring purchasing contracts.
Strategic Buyer
• Invite new or existing suppliers to participate in requests for quotation and compare the quotes
received easily in the system to determine most suitable supplier for your requirements.
• Once you have determined the winning quote, the bidders are notified about the outcome of the
request for quotation process, and follow-up documents, such as purchase orders or contracts, can be
created.
 Procure-to-Pay (Stock)
Process Details: Processing Purchase Orders
X
Processing Purchase Orders

Create and Processing

Processing Processing Send a Approve a Acknowledg Monitor a
Planning Initiating maintain a Inbound
Purchase Requests for purchase purchase e a purchase purchase
Supply Purchasing purchase Delivery
Requests Quotation order order order order
order Notifications
i i i i i …

• Enables you to work on automatically created purchase orders or to manually

create a purchase order with or without reference to a contract or a list price.
• The purchase order can contain stock material with or without product
specification, services, or non-stock material that can be ordered for different Performed by
purposes (for example, for cost centers, projects, or as an individual material Operational Buyer
within an asset procurement process).
• You can also create third-party purchase orders for materials and services
manually, which can be assigned to sales orders, service orders, or customer
projects.
• It is also possible that an approval procedure depending on the purchase
order value is in place.
 Procure-to-Pay (Stock)
Process Details: Processing Delivery Notifications -
Supplier Delivery Notifications
Processing Delivery Notifications X
Supplier Delivery Notifications

Create a Processing
Processing Processing Processing Supplier Processing
Planning Initiating Supplier
Purchase Requests for Purchase Inbound Inbound
Supply Purchasing Invoices
Requests Quotation Orders Delivery Deliveries
Notification
i …
Click here to display process variants

Processing
Inspections
• Allows you to create delivery notifications manually or via B2B
communication from your supplier, which can also be an affiliated
company using SAP ERP.
• You can process your supplier deliveries with or without
warehouse tasks. Performed by
Warehouse Manager
 Procure-to-Pay (Stock)
Process Details: Processing Inbound Deliveries -
Based on Purchase Orders Without Task Control
Processing Inbound Deliveries – Based X
on Purchase Orders Without Task Control

Processing Processing
Processing Processing Processing
Planning Initiating Inbound Post a goods Supplier
Purchase Requests for Purchase
Supply Purchasing Delivery receipt based on Invoices
Requests Quotation Orders
Notifications a purchase order
i …
Click here to display process variants

Processing
Inspections

• The Processing Inbound Deliveries - Based on Purchase Orders

Without Task Control business process allows you to post received
products to stock based on a purchase order. Performed by
• You directly post the goods receipt and the system records the products Warehouse Manager
as delivered and confirms the supplier delivery.
• A quality inspection can be created automatically.
• The incoming goods can be stored in a quality logistics area.
 Procure-to-Pay (Stock)
Process Details: Processing Supplier Invoices
Processing Supplier Invoices X

Processing Resolve a
Processing Processing Processing Processing Create a Approve a Processing
Inbound supplier
Purchase Requests for Purchase Inbound supplier supplier Payables and
Delivery invoice
Requests Quotation Orders Deliveries invoice invoice Payments
Notifications exception
… i i i

Click here to display process variants

Processing
Inspections Performed by
Accounts Payable/
Accountant
• Enables you as an accountant to enter, verify, and post invoices, credit memos, and down payment requests that you
received from your supplier by fax or by mail.
• Alternatively, your supplier, which can also be an affiliated company, can send you these documents electronically as
XML messages. An automated invoice-verification process compares all supplier invoices with their corresponding
purchase documents, if available.
• You can also charge supplier invoice items to partner companies, and you can distribute additional costs, such as
freight, among all other supplier invoice items.
• When the supplier invoice is complete and correct, you post it. The supplier invoice is then used to pay your suppliers.
 Procure-to-Pay (Stock)
Process Details: Processing Payables and
Payments
Processing Payables and Payments - Processing Payments Automatically X

Create a
Processing Processing Check and
Processing Processing payment Process a
Inbound Supplier release a Approve a Allocate a
Purchase Inbound medium and bank
Delivery Invoices payment payment payment
Orders Deliveries send to bank statement
Notifications proposal
or payee
… i i i i i

Click here to display process variants

Processing
Inspections Performed by
Accounts Payable/
Accountant

• Enables the processing of outgoing payments initiated either internally by your company or externally by your suppliers. Payments
can be made manually or automatically via a payment run in which the system proposes the open items for payment.
• You then release the payments and the system posts them to accounting. You create the payment medium, either manually or as
part of an automatic run. The standard work center provides checks, outgoing bank transfers, credit memos, as well as other
country-specific payment methods.
• Once the payments have been debited from the bank account, the bank statement is entered in the system, in which it is uploaded
electronically or entered manually, before being confirmed.
• If payments are initiated externally, the bank statement provides the notification that a payment has been made. The payments are
matched in the system to the open invoices before being cleared.
 Procure-to-Pay (Stock)
Business Value

Initiate Procure Fulfill Settle

Receive /
Initiate Create Send Acknowledge
Source and Receive Manage Verify Post to
RFQ Purchase Purchase Purchase Pay Invoice
Bundle Delivery Inventory Supplier Ledger
Processing Order Order Order
Invoice
4 Make to Stock
 Make-to-Stock
Scenario Overview

• Enables your company to produce goods and place them in stock.

Planning Initiating Executing • Your customer demands such as sales orders or service orders can then
Supply Production Production be covered using this existing stock.
• Define demand management procedures to define the appropriate make-
to-stock strategies that best suit your company’s business requirements.
Processing • Using forecast demand, you can plan for periodic demand.
Inspection • Customer demands are then covered by this produced or procured
s stock and consume the forecast demand according to the predefined
in
Production demand management procedures.
• Multi-level supply planning ensures that the goods receipts for all
required products, including product specifications, are planned on time
which, in turn, means that you can trigger the creation of purchase orders
and production orders on time.
• Using the check tasks to ensure the quality of your produced products.

The following business roles are involved in this scenario:

Supply Production Warehouse Warehouse Production

Quality Quality
Planner Planner Manager Operator Operator
Manager Inspector Engineer
 Make-to-Stock
Process Details: Planning Supply
Planning Supply X
• Enables your company to effectively carry out material
Check and capacity planning.
Plan and Plan Initiating Executing • The multi-level planning run calculates the required
material resolve an capacity Production Production supply and then creates the supply and demand
exception
i i i pegging network accordingly, also taking into
consideration the selected product specification.
Processing • If planned order is created manually product
Inspection specification must be provided for specified products.
s
in • If there are planning issues, the system raises
Performed by Production exceptions to alert you to them. You can then decide
Supply Planner what action to take, for example, you can manually
create or update planning proposals.
• The load leveling function is also available to verify the
feasibility of the supply plan and level out the load if it
is not possible to increase capacity.
 Make-to-Stock
Process Details: Initiating Production
Initiating Production X
• Enables you to create production requests
Planning Initiate
Create Release
Executing
based on production proposals, create and
production production schedule production orders, release
Supply production Production
order order
i production orders, and assign production
i i
tasks to responsible employees.
• At production order creation, a quality
Processing inspection will be created if a check
Inspections operation is available in the related
in Production production model, and at production order
Performed by Production Planner
Supply Planner release, the related inspection will be
released.
• A check task will be created upon production
order release to enable the quality inspection
to be performed.
 Make-to-Stock
Process Details: Executing Production
Executing Production X
• The production tasks have been
Confirm forwarded to task folders where they
Replenish Execute Remove Confirm
Planning Initiating component
replenish-
production finished removal
are processed by the responsible
Supply Production ment employees.
s tasks products tasks
tasks
i i i i i • The tasks contain all the information
required for production.
• Three types of production task exist:
supply, make, and check enabling
Processing integrated supply to production,
Inspections make, and inspection processes.
in Production
• To complete production execution,
you record your results using the
confirmation functions.
• The confirmation captures and
saves the execution data such as
material flow and activities data, and
triggers inventory and financial
accounting updates.
Warehouse Manager Warehouse Operator Production Operator
 Make-to-Stock
Process Details: Processing Inspections in
Production

Planning Initiating Executing • Allows you to process, monitor, and

Supply Production Production
analyze inspections of products.
• As part of this process, you draw and
prepare samples, execute the inspection,
Processing Inspections in Production X record results, confirm activities and
quantities, make a decision about the
Prepare
Record Confirm Decide quality of the inspected goods, and, if
inspection check about necessary, trigger corrective or
samples tasks
results quality
i i i i
preventive actions.
• Quality inspections are triggered
automatically by the system and can be
processed via a check task. They are
initiated by an overlying business
process, such as the production process.
Quality Inspector Quality Engineer
Manager
 Make-to-Stock
Business Value

Plan Supply Initiate Execute Valuate

Execute
Create Create and Post
Check and Production Remove
Plan Plan Production Release Replenish Valuation
Resolve Tasks and Finished
Material Capacity Requests Production Components Warehouse
Exceptions Check Products
(Automated) Orders Inventory
Quality
5 Group Activities
 Research Business Case Arkon Company

You will use the SAP ByD business process to perform the following tasks based on
the Akron Company’s situation:
• What is the best way for the marketing department (MD) to grow the new market?
How can a marketer turn a new lead into an opportunity if they have one?
Additionally, notify the sales department (SD) about these leads.
• How can the SD answer the delivery date to the client when he/she needs 50 the
hot water boilers and receive 5 days from the order date after receiving the
opportunity information from MD? Assume that the order date is today's date and
that the transportation time is 2 days.
• How does the SD get inventory information to the warehousing department? How
can they notify the planning department to generate the planning production if
there is insufficient stock available? They must purchase the materials for
manufacture, and the lead time for getting the materials is two days.
 Research Business Case Arkon Company

The production department need 2 materials for producing with details information as
below:
Material A: Purchase Price = 10 USD/kg
Material B: Purchase Price = 30 USD/kg
Production capacity: 5 each/day
The labor cost is 2 USD/hour
The machine cost is 2.5 USD/hour
The overhead cost is 1.5 USD/hour
R&D department create a the hot water boiler need to 10 kg material A and 20 kg
material B
Is Akron Company capable of meeting the customer's order requirements? How can
the Akron Corporation make a 10% profit?
THANK YOU