Module 12 - Chapter 6: Integrated

Processes
Module 12 – Additional Intra and
Intercompany Processes

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 Outline
Integrated Processes
Fulfillment + procurement + production
Only process supported by ES; no manual process
Additional Intra-Company Processes
Extended (Inter-Company) Processes
Exercise Using Simulated SAP ERP

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 Integrated Processes
Key Concepts and Assumptions
Regarding fulfillment, procurement, production
Conceptual Framework
Physical Flow
Document and Data Flow
Information Flow
NO Financial Impact

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 Assumptions regarding processes
Fulfillment
Sell from stock
Materials are available to fill customer orders
Procurement
Procure to stock
Production
Make to stock
Necessary raw materials are available

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 New assumptions
Fulfillment
Sell from stock -> sell to order
Materials are available to fill customer orders ->
materials may not be available
Procurement
Procure to stock -> procure to order
Production
Make to stock -> make to order
Necessary raw materials are available -> may not be
available

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 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

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 Physical flow
1. The Fulfillment Process: initial Steps
 Review Inventory of Finished Goods
2. The Production Process: initial Steps
 Review Inventory of Raw Materials
3. The Procurement Process
4. The Production Process resumed and completed
5. The Fulfillment Process resumed and completed

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 Integrated Process

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 Customer Purchase Order

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 Step 1: Fulfillment process
Assume inquiry and quotation
Receive PO
100 standard skateboards (STSB2000)
Create Sales Order in the ES
Prepare shipment
Do we have enough in inventory?
Check stock status
 Previous assumption: stock is available
 Inventory report
 Stock requirements list (SRL)

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 Inventory Report – STSB200

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 SRL STSB2000 – with Sales Order

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 Step 1: Fulfillment process
Assume inquiry and quotation
Receive PO
100 standard skateboards (STSB2000)
Create Sales Order in the ES
Prepare shipment
Do we have enough in inventory?
Check stock status
Not enough material - what next?
Can’t continue with fulfillment (prepare shipment, etc.)
Need to acquire material STSB 2000
How does SSB acquire STSB 2000 (Buy or make?)

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 Step 2: Production Process
Create planned order
How many to request? (100)
Convert to production order
How many to produce?

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 SRL STSB2000– with Planned Order

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 SRL STSB2000– with Production Order

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 Step 2: Production Process
Create planned order
Convert to production order
Issue raw material to production
Do we have enough?
Check stock status
 Inventory reports
 Stock requirements list for each material
 Use truck assembly (STTA 2100) as an example

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 Inventory Report - Raw Materials

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 Step 2: Production Process
Create planned order
Convert to production order
Issue raw material to production
Do we have enough?
Check stock status
 Inventory reports
 Stock requirements list for each material

Not enough material - what next?

Can’t continue with production
Need to acquire raw material
How does SSB acquire these?

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 Step 3: Procurement
Create requisition
For how many?
Create purchase order
For how many?
Goods receipt
Example: Track progress of truck assembly

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 SRL STTA2100 – after P Req

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 SRL STTA2100 - after PO

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 SRL STTA2100 - after production

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 Step 3: Procurement
Create requisition
Create purchase order
Goods receipt
Now we have material to produce STSB2000
Return to production process
Continue with the rest of the procurement process

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 Step 4: Production Process resumed
Create planned order
Convert to production order
Issue raw material to production
Do we have enough? Yes, we just completed procuring
them
Produce product
Move to finished goods

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 SRL STSB2000 – After Production

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 Step 4: Production Process completed
Create planned order
Convert to production order
Issue raw material to production
Do we have enough? Yes, we just completed procuring
them
Produce product
Move to finished goods
Done with production
Now back to fulfillment

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 Step 5: Fulfillment process resumed
Assume inquiry and quotation
Receive PO
100 standard skateboards (STSB2000)
Create Sales Order in the ES
Prepare shipment
Do we have enough in inventory? Yes, we just completed
producing them
Pick and pack
Send shipment
Send invoice
Receive payment
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 SRL STSB2000 – During Delivery

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 SRL STSB2000 - After Delivery

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 Outline
Integrated Processes
Fulfillment + procurement + production
Only process supported by ES; no manual process
Additional Intra-Company Processes
Extended (Inter-Company) Processes
Exercise Using Simulated SAP ERP

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 The application suite

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 Additional Intra-Company Processes
Human Capital Management
Asset Management

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 Human Capital Management Process

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 Human Capital Management Example

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 Human Capital Management
Skills

• Hard Skills – What are

these?

• Soft Skills – What are these?

• What is most important to

employers?
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 Human Capital Management

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 Human Capital Management
Off-Boarding

• Retiring

• Resignation vs
Laid off

• Fired – Implications?

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 Asset Management Process

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 Asset Managment

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 Extended (Inter-Company) Processes
Supply Chain Management (SCM)
Supplier Relationship Management (SRM)
Product Lifecycle Management (PLM)
Customer Relationship Management (CRM)

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 Plan-to-Produce Process in SCM

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 Source-to-Settle Process in SRM

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 Supply Chain Management

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 Supplier Relationship Management

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 Idea-to-Market Process in PLM

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 Product Life Cycle Management

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 Demand-to-Order Process in CRM

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The complete process
 Exercise Using Simulated SAP
The exercises will take you through the following steps that
have been discussed in this chapter:
receive a customer inquiry
create a quotation
receive a customer purchase order
create a sales order
review the inventory of finished goods
create a planned order
convert the planned order to a production order
review the inventory of raw materials
create a purchase requisition for a number of raw materials
convert the requisition to a purchase order
receive goods from the vendor

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