Chapter

7 Conversion
Business
Process
 Learning Objectives

LO 7-1 Describe the business activities that comprise the conversion process.
LO 7-2 Develop an activity model of the conversion process using BPMN.
LO 7-3 Understand and apply different activity modeling options.
LO 7-4 Develop business rules to implement controls for the conversion process.
LO 7-5 Develop a structure model for the conversion process using UML class diagrams.
LO 7-6 Implement a relational database from the UML Class Diagram of the conversion
process.

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 LO 1

Review of Conversion Accounting

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 LO 2

Sunset Graphics Conversion Process

1. When the quantity on hand of a product dropped below the minimum level,
the item manager authorized production to increase the quantity on hand.
2. Based on the bill of material for that item, they issued material into work in
process.
3. Sunset partners then constructed the items.
4. Upon completion, the products were placed in inventory.

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 LO 2

Basic Conversion BPMN Activity Model

The basic activity model implements the process steps.

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 LO 3

Refining the Model with Lanes

Process flow loops Process flow Intermediate error event interrupts flow if
again until all batches loops until the inspection fails
are complete batch is complete

Define which steps are performed by each function. Add error handling and looping until finished.

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 LO 3

Simplifying with Collapsed Subprocess

Looping subprocess for the production batches;

Loop indicates that the process repeats until some specified condition is satisfied.

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 LO 3

Contents of the Subprocess

The contents of the collapsed subprocess are defined separately.

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 LO 4

Business Rules Examples for

Conversion Process
Process Steps Intention Partner Access Controls Application Controls
Authority/Action
Authorize Partner with proper Supervisor must authorize Partner authorizing System must provide
Production authority authorizes production > $5,000. production cannot authorization order
production to ensure modify inventory records number control, default
finished goods available to values, range and limit
meet expected demand checks, and create audit
trail

Issue Raw Issues from raw material Partner issuing material Partner recording issue System must only allow
Material according to bill of must not be same partner of material cannot partner to enter the
material recorded that authorized production modify bill of material number of items issued
accurately based on bill of material,
subject to range and limit
checks on quantities

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 LO 4

Business Rule Types

Supervisor must authorize production Example of Obligatory rule – states
> $5,000. what should occur

Partner issuing material must not be Example of Prohibited rule – states

same partner that authorized what should not occur
production

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 LO 5

Sunset’s Basic Conversion UML Class Models

1. Authorization to produce.
2. Specifies the finished good to
produce.
3. Records R/M Issue.
4. Specifies the bill of materials.
5. Records use of labor.

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 LO 5

Revised Conversion UML Class Diagram

Bill of materials
promoted to Type
Image

Assigns Employees responsible for

specific Product Categories

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 LO 6

Database Relationships

UML class diagram indicated 8 tables for classes and 2 linking tables (marked by the arrows).

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 LO 6

Integrated Model

Resources and internal agents are

shared across processes; events and
external agents are process-specific.

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End of Chapter 7