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SSA® ERP LN 6.1 Enterprise Business Model (EBM)

Case Descriptions

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Publication Information

Document code: P3506B US

Release: SSA® ERP LN 6.1 Enterprise Business Model (EBM)

Publication date: August 06

Table of Contents

Chapter 1 Case CHL01a: Order-to-Payment, Make-to-Stock (MTS).........................................1-1 Scope...........................................................................................................................................1-1 Business assumptions .................................................................................................................1-1 Case assumptions .......................................................................................................................1-2 Case description ..........................................................................................................................1-2 Diagram .......................................................................................................................................1-3

Chapter 2 Case CHL01c: Order-to-Payment, Engineer-to-Order (ETO)...................................2-1 Scope...........................................................................................................................................2-1 Business assumptions .................................................................................................................2-2 Case assumptions .......................................................................................................................2-2 Case description ..........................................................................................................................2-3 Diagram .......................................................................................................................................2-4

Chapter 3 Case CHL01d: Order-to-payment, Assembly Mixed Model Flow............................3-1 Scope...........................................................................................................................................3-1 Business assumptions .................................................................................................................3-1 Case assumptions .......................................................................................................................3-2 Case description ..........................................................................................................................3-2 Diagram .......................................................................................................................................3-3

Chapter 4 Case CHL03a: Plan-to-Stock .....................................................................................4-1 Scope...........................................................................................................................................4-1

ii | Table of Contents

Business assumptions .................................................................................................................4-2 Case assumptions .......................................................................................................................4-2 Case description ..........................................................................................................................4-3 Diagram .......................................................................................................................................4-4

Chapter 5 Case CHL04a: Order-to-Payment, (Purchase-to-Order) ..........................................5-1 Scope...........................................................................................................................................5-1 Business assumptions .................................................................................................................5-1 Case assumptions .......................................................................................................................5-1 Case description ..........................................................................................................................5-2 Diagram .......................................................................................................................................5-3

Chapter 6 Case CHL05a: Planned Maintenance from Service Contract..................................6-1 Scope...........................................................................................................................................6-1 Business assumptions .................................................................................................................6-1 Case assumptions .......................................................................................................................6-2 Case description ..........................................................................................................................6-2 Diagram .......................................................................................................................................6-3

Chapter 7 Case CHL06a: Request for Repair ............................................................................7-1 Scope...........................................................................................................................................7-1 Business assumptions .................................................................................................................7-1 Case assumptions .......................................................................................................................7-2 Case description ..........................................................................................................................7-2 Diagram .......................................................................................................................................7-3

Chapter 8 Case CHL07a: Financial Management ......................................................................8-1 Scope...........................................................................................................................................8-1 Business assumptions .................................................................................................................8-1 Case assumptions .......................................................................................................................8-1 Case description ..........................................................................................................................8-2

iii | Table of Contents

Diagram .......................................................................................................................................8-3

Chapter 9 Case CHL08a: Return Management ..........................................................................9-1 Scope...........................................................................................................................................9-1 Business assumptions .................................................................................................................9-1 Case assumptions .......................................................................................................................9-2 Case description ..........................................................................................................................9-2 Diagram .......................................................................................................................................9-3

Chapter 10 Case CHL09a: Request for Quotation, Engineer-to-Order (ETO) .........................10-1 Scope.........................................................................................................................................10-1 Business assumptions ...............................................................................................................10-2 Case assumptions .....................................................................................................................10-2 Case description ........................................................................................................................10-3 Diagram .....................................................................................................................................10-5

Chapter 11 Case CHL11a: Request for Quotation (Process-Driven Project) ..........................11-1 Scope.........................................................................................................................................11-1 Business assumptions ...............................................................................................................11-2 Case assumptions .....................................................................................................................11-2 Case description ........................................................................................................................11-3 Diagram .....................................................................................................................................11-5

Chapter 12 Case CHL12a: Order-to-Payment (Process-Driven Project) .................................12-1 Scope.........................................................................................................................................12-1 Business assumptions ...............................................................................................................12-2 Case assumptions .....................................................................................................................12-2 Case description ........................................................................................................................12-3 Diagram .....................................................................................................................................12-4

Chapter 13 Case CHL13a: Request for depot repair .................................................................13-1 Scope.........................................................................................................................................13-1

iv | Table of Contents

Business assumptions ...............................................................................................................13-1 Case assumptions .....................................................................................................................13-2 Case description ........................................................................................................................13-2 Diagram .....................................................................................................................................13-4

Chapter 14 Case CHL14a: Order-to-Payment (MTS), including Freight Management ...........14-1 Scope.........................................................................................................................................14-1 Business assumptions ...............................................................................................................14-2 Case assumptions .....................................................................................................................14-2 Case description ........................................................................................................................14-3 Diagram .....................................................................................................................................14-4

About this Guide

The Enterprise Business Model’s main components are the business control diagrams, including the business functions and business processes with attached application components. Together, the model’s components make up the Enterprise Business Repository.

One aspect of the business control diagram repository is the cases. Cases start with a trigger to perform an action. A case models all business functions and attached processes that are required to perform the actions to come from the trigger to fulfillment of that trigger.

Cases are examples of how to deploy the Enterprise Business Model Repository in a particular situation. To change cases of the Business Enterprise Model, you can simply copy the case and change triggers, functions, or even processes.

Using cases, you limit the scope significantly, which can be an advantage or a disadvantage, depending on the situation. An alternative to using cases is to use the business function structure, the function model of the Enterprise Business Model, to define the scope.

In the following case descriptions, the scope, business assumptions, case assumptions, and description of the case itself are attached. The case assumptions describe the assumptions in more detail, and more related to the underlying applications.

The case CHL00a Implementation Master Data (IMD) covers the IMD functionality. This case covers all possible situations; therefore, no separate description of the case is added.

All cases are attached as children to the first level business control diagram, which depicts the Enterprise Business Model and Repository as a whole.

vi | About this Guide

Send us your comments We continually review and improve our documentation. Any remarks/requests for information concerning this document or topic are appreciated. Please e-mail your comments to [email protected].

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Scope

This business case describes the fulfillment of a sales order request for standard goods delivered from stock. The business case starts with a request from a customer and ends with the invoicing and payment of goods sold.

Business assumptions

This business case applies to standard items that are in stock, for example, in a finished-goods warehouse at:

The manufacturing plant

A service parts warehouse

A distribution center owned by a manufacturing plant

A wholesaler

1Chapter 1 Case CHL01a: Order-to-Payment, Make-to-Stock (MTS)

1-2 | Case CHL01a: Order-to-Payment, Make-to-Stock (MTS)

Case assumptions

This case includes the following assumptions:

This business case is suitable for the standard typology.

Planning based on forecast and production is carried out in another case: CHL03a.

Warehouse scheduling activities are assumed to take place before order picking can be started.

Picking, packing, and shipping are carried out sequentially. All packing activities for both item packing and unit packing are carried out in the main function packing.

Value added services are handled in another case: CHL03a.

Case description

This business case is triggered by a request from a customer that can result either in a sales order to be entered or a sales schedule to be entered. After sales order processing, warehouse orders are generated to pick goods from stock.

Finally, products are packed for each order or order line, prepared for shipment, and are then ready for transportation to the customer. After all order lines have been prepared for shipment, sales orders or sales schedules can be closed and invoices can be prepared.

Case CHL01a: Order-to-Payment, Make-to-Stock (MTS) | 1-3

Diagram

CHL01a: Order-to-Payment; Make-to-Stock (MTS)-------------------------------------------- 1. Sales Order to be Entered 2. Customer Data to be Managed 3. Picking to be Performed 4. Goods to be Packed 5. Goods to be Shipped 6. Sales Orders to be Closed 7. Invoice to be Created 8. Invoice to be Paid 9. Bank Statement to be Processed

Warehousing

Account Payable Invoices

Cash Management

Invoicing

Bank StatementProcessing

Picking Packing Shipping

Order Entry - Sales(Standard)

Customer DataManagement

Order Closure -Sales (Standard)

Goods Flow

Customer

Bank

1.

9.

8.

2.

7.

3.

4. 5. 6.

Figure 1-1 Case CHL01a Order-to-Payment, Make-to-Stock (MTS)

1-4 | Case CHL01a: Order-to-Payment, Make-to-Stock (MTS)

Scope

The objective of this case is to describe the subsequent activities that must be carried out to respond adequately to a request for a customized product based on a created quotation. The high-level engineering has already been carried out and only the latter part of the engineering still must be completed. The result of the case is a delivered, customized product.

For example, this case is common for engineer-to-order organizations that produce customer-specified products. An example is the machine-building industry.

This case is actually the follow-up of the case as described in CHL09a, in which the quotation for the customized item is created. In this case, however, the item is actually produced.

2Chapter 2 Case CHL01c: Order-to-Payment, Engineer-to-Order (ETO)

2-2 | Case CHL01c: Order-to-Payment, Engineer-to-Order (ETO)


This case makes the following assumptions concerning the business:

The Project Control System is used as the supporting functionality for these types of projects in the business environment ERP LN Manufacturing.

Prototyping and R&D are left out of scope. Engineering is only the drawing and mental process. The end deliverable is an E-BOM. Process engineering is not required for this type of project.

Case assumptions

This case makes the following assumptions:

The customer is already known from the quotation phase, and does not have to be re-entered in Customer Data Management.

The potential iteration in the process to define the final specifications in between the sign-off of the quotation and the issuing of the sales order is not explicitly modelled.

All items, including the long-lead-time items, are ordered in the contract-phase.

The production of the customized product can only be started after goods that have specifically been ordered for this product are received at the warehouse.

The invoicing is usually carried out at several points during an actual project, for example, at contract signing, production start, production finish, and actual delivery. However, in this case, for reasons of simplicity, the case is assumed to only show the invoicing-part of the process at the end of the project.

Case CHL01c: Order-to-Payment, Engineer-to-Order (ETO) | 2-3

Case description

The input for this case is a request from the customer for a quotation to be copied into an actual order that contains the commercial, technical, and quality requirements as specified during the quotation phase.

First, in the main function order entry, the quotation can be copied into an actual order. The project can then be defined in more detail and the final product engineering can be carried out. Based on the information coming from product engineering, the final modifications/additions to be made to the project can be made and a budget can be calculated for the project.

In project planning, a planning can then be made and can be checked against the available capacity. If the available capacity is not enough, modifications to the plan can be made.

Based on this planning, the purchase orders, as well as the long-lead-time items, can then be sent to the supplier or subcontractor. When the goods are received, the process can continue.

Production order scheduling can now schedule the production orders. Immediately after production order scheduling, project cost and planning control is triggered so that any progress made to the project can then be measured. Production order execution control can then initiate the actual start of the production and can monitor the progress that is made with the production orders.

Before you can start to produce goods, you must pick the goods. Production order execution control can close the production orders when the orders are finished. After production, inspection of the individual items can take place and when the final product is then ready for delivery, shipping can be carried out.

Because project cost and planning control controlled the project during the total production of the final product, project cost and planning control will recognize when the project has ended. From there, project evaluation and closing will be triggered. After final delivery, the invoice can be sent and processed further by invoicing, credit control and bank statement processing.

2-4 | Case CHL01c: Order-to-Payment, Engineer-to-Order (ETO)

Diagram

CHL01c: Order-to-Payment; Engineer-to-Order (ETO)----------------------------------------------- 1. Sales Order to be Entered 2. Project to be Defined 3. Product to be Engineered 4. Project to be Defined 5. Project to be Budgeted 6. Project to be Planned 7. Purchase Order to be Entered 8. Purchase Order to be Fulfilled 9. Receipt to be Processed 10. Production Order to be Scheduled 11. Project to be Controlled 12. Production Order to be Executed 13. Materials and Components to be Picked 14. End Product to be Stored 15. Project to be Evaluated 16. Invoice to be Created 17. Invoice to be Paid 18. Open Entry to be Controlled 19. Bank Statement to be Processed

Engineering

Sales

Project Management

Purchase

Production

Warehousing

Accounts Receivable Invoices

Cash Management

Purchase OrderEntry

Product Engineering- w ith EDM (MRT,

MJS)

Project Evaluation &Closing - Product

Oriented

Project Definition -Product Oriented

Project Budgeting -Product Oriented

Project Planning -Product Oriented

Project Control -Product Oriented

Order Entry - Sales(Specific)

Scheduling - SFCOrder (MJS, BSS

Not In Use)

ProductionExecution - Job

Shop (MJS)

Store Goods Store Goods Picking - Advanced Inspection Shipping -AdvancedPackingPicking - AdvancedReceiving -

Advanced

Invoice CreationCredit Control

Electronic BankStatementProcessing

Goods Flow

Customer

Supplier

Bank

7.

13.

12.

14.

1.

18.

19.

17.

8.

2.

3.4.

5.

6.

10.

11.

15. 16.

9.

Figure 2-1 Case CHL01c Order-to-Payment, Engineer-to-Order (ETO)

Scope

This business case describes the fulfillment of a sales order request for goods that are not in stock, but are configured and assembled upon receipt of a customer order. Typically, the subassemblies and components are produced to stock. The business case starts with a request from a customer and ends with the invoicing and payments of goods sold.


This business case applies to “mixed model flow” production environments, such as car, excavator, and tractor assemblers. This case also applies to preconfigured items, based on the customer’s specifications, which the customer chooses from standard options and features.

3Chapter 3 Case CHL01d: Order-to-payment, Assembly Mixed Model Flow

3-2 | Case CHL01d: Order-to-payment, Assembly Mixed Model Flow

Case assumptions


This business case is suitable for the predefined typology, which is an assembly-driven environment that uses mixed-model production.

The Assembly Planning and Assembly Control modules are used to support the assembly process.

The end product is not stored. After assembly, the end product is delivered straight to the customer.

During production scheduling, the planned production order generated by planning will be allocated to the sales order.

Only purchased items are supplied to the assembly line. You can, however, schedule production orders for lower level assembly parts and send the orders to the assembly line.

Sending of purchase schedules to supplier and receiving the receiving process of the parts is outside the scope of this case.

Case description

This business case is triggered by a request from a customer that results in a sales order to be entered.

Based on requirements from the market, products are designed and engineered. Processes engineering is executed to be able to assembly these products.

Assembly part requirements are calculated based on the existing sales orders, resulting in material releases that can be sent to the supplier. A description of these requirements is outside the scope of this case.

Assembly orders are generated, scheduled, and executed. During assembly order generation, a planned assembly order is allocated to the sales order. After the assembly process, the products are shipped to the customer. Subsequently, you can prepare invoices. After invoicing, you can close the sales orders.

Case CHL01d: Order-to-payment, Assembly Mixed Model Flow | 3-3

Diagram

CHL01d: Order-to-Payment; (Assembly Mixed Model Flow)------------------------------------------------ 1. Products to be Engineered 2. Processes to be Engineered 3. Products to be Used in Planning 4. Processes to be Used in Planning 5. Order to be entered 6. Customer Data to be Managed 7. Order to be Planned 8. Assembly Part Requirements to be Planned 9. Material releases to be Created 10. Assembly orders to be Scheduled 11. Assembly Orders to be Executed 12. Shipping Schedules to be Created� 13. Marerials to be Sourced 14. End Product to be Shipped 15. Order to be Closed 16. Invoice to be Created 17. Invoice to be Paid 18. Bank Statement to be Processed

Warehousing

Enterprise Planning Production

Engineering

Engineering

Account Management

Sales

Enterprise (Assembly) Planning

Production

Warehousing

Cash Management

Accounts Payable Invoices

Assembly PlannigMaster Data

Shipping -Advanced

Assembly ControlMaster Data

Assembly: Productengineering

Assembly: Processengineering

ProcessPurchaseSchedules

Order Entry - Sales(Predefined)


Assembly:Scheduling

Assembly:Execution

Order Planning Assembly planning

Sourcing

Invoice Creation



Goods Flow

Customer

Market

10

Bank

15.13.

8.

7.

14.

5.

1.2.

4.3.

9.

12.

10.

18.

17.

16.11.

6.

Figure 3-1 CHL01b Order-to-Payment, Assemble-to-Order (ATO)

3-4 | Case CHL01d: Order-to-payment, Assembly Mixed Model Flow

Scope

The objective of this case is to translate the demand forecast into actual stock, such as components, subassemblies, or end items, relative to the Customer Order De-coupling Point (CODP). The demand forecast, which the logistics manager usually calculates, based on the input of the sales force, is the input for the planning process. The planning engine generates purchase and production order advice to meet this demand. This case deals with a cross-functional flow that runs from planning to goods in stock.

For example, this case is applicable to nearly every industry, although placing expensive products in stock is uncommon.

4Chapter 4 Case CHL03a: Plan-to-Stock

4-2 | Case CHL03a: Plan-to-Stock


In this case, the following assumptions are made regarding the business:

Customers and partners are expected to provide accurate input for the demand planning. The update of this information is carried out on a regular basis.

You can only place components in stock and the production starts when a real order comes into the sales-department. However, this case deals with end products made to stock.

The planning is used in a single-site environment. No stock-level optimization for various sites was taken into account. You can solve this problem through supply-chain planning, however, this type of planning is not modeled in this case.

Case assumptions

The following assumptions are made in this case:

When the purchase order is created, no search procedure is assumed to be required to select a supplier to get the best quotation, quality, price, or lead-time.

Value added services is not a mandatory step in the warehouse. Value Added Service (VAS) requires kiting of specific components to deliver the components to a production line.

Payments to the supplier are assumed to be made through the bank and not by using warranties or cash payments.

As a production typology, job shop manufacturing was selected. However, you can also use repetitive manufacturing. Mixed model flow production is not used for this case, because this type of production is related to an ATO environment.

As a sales typology, commodity driven sales was selected. You can also select assembly-driven sales. Contract-driven sales and project-driven sales are not used for this case.

Project typologies are not relevant for this case, because project is not one of the major functions.

Case CHL03a: Plan-to-Stock | 4-3

Case description

Demand Management is triggered to create a demand plan based on a sales forecast or historical data. Demand Management passes this plan to Planning to create a master plan for end items. An order planning is generated for the material requirements to activate purchase, production, or replenishment (RPL) orders. Purchase handles the anonymous purchasing, which is based on forecasts and orders. Warehouse is triggered to receive the goods, while A/P Invoices and Payments ensure the supplier is paid.

Production is triggered to carry out orders and receive the materials to support production, from the warehouse. Warehousing is triggered to receive the produced goods from the shop floor.

4-4 | Case CHL03a: Plan-to-Stock

Diagram

CHL03a: Plan to Stock----------------------------------------- 1. Demand to be Planned 2. Master Plan to be Created 3. Order to be Planned 4. Purchase Order to be Created 5. Purchase Order to be Delivered 6. Purchase Order to be Received 7. Goods to be Inspected 8. Goods to be Stored 9. Value Added Service to be Performed 10. Production to be Scheduled 11. Production Order to be Executed 12. Components to be Picked 13. End Product to be Stored 14. A/P Invoice to be Processed 15. Payment to be Created 16. Payment to be Executed 17. Bank Statement to be Processed

Demand ManagementEnterprise Planning

Production

Warehousing

Purchase


Cash Management

Picking - Advanced

Receiving -Advanced

Value AddedServices

Inspection Store GoodsStore Goods

Scheduling - SFCOrder (MJS, BSS

Not In Use)

ProductionExecution - Job

Shop (MJS)

Order Planning

Master Planning

Purchase OrderEntry

Payments by Bank


Invoice Processing -Normal

Demand Planning -ERP

Goods Flow

Supplier

Bank

Time

7. 9.

10.

11.

12. 13.

2.

3.

5.

14.

15.

16.

17.

4.

1.

8.

6.

Figure 4-1 Case CHL03a Plan-to-Stock

Scope

The objective of this case is to describe the processing of orders for goods, which are purchased on receipt of the sales order. Mostly, the goods are cross-docked, or even directly delivered.

For example, this case is applicable for trading companies. The goods are usually either only stored in small quantities or are not stored at all.


In many trading companies, goods are bought upon receipt of a customer order. In this case, no R&D activities, engineering activities, or production activities are performed.

Case assumptions

This business case is suitable for a commodity-driven environment.

5Chapter 5 Case CHL04a: Order-to-Payment, (Purchase-to-Order)

5-2 | Case CHL04a: Order-to-Payment, (Purchase-to-Order)

Case description

After Order Creation receives and registers the order, Customer Data & Management is triggered to add or modify customer data. Product Assortment Management is triggered to manage item data. Purchase is triggered by Sales to complete the demand. Purchase triggers the supplier to send the purchase order and the guarantee requested by the supplier. After the supplier accepts the guarantee, the goods are sent. Upon receipt of the goods, Warehousing is triggered to cross-dock the goods to the shipping area, after which the goods can be delivered. Sales triggers A/R Invoices to invoice the customer. Upon receipt of the bank statement, Receipts processes the payment and the open entry is closed.

Case CHL04a: Order-to-Payment, (Purchase-to-Order) | 5-3

Diagram

CHL04a: Order-to-Payment (Purchase-to-Order)------------------------------------------ 1. Sales Order to be Entered 2. Customer Data to be Managed 3. Product to be Managed 4. Customer Price to be Managed 5. Purchase Order to be Created 6. Purchase Order to be Processed 7. ASN to be Processed 8. Receipt to be Processed 9. Goods to be Crossdocked 10. Goods to be Packed 11. Goods to be Shipped 12. Sales Order to be Closed 13. Invoice to be Created 14. Invoice to be Paid 15. Bank Statement to be Processed 16. Purchase Order to be Monitored 17. Purchase Order to be Closed 18. Invoice to be Processed 19. Payment to be Created 20. Payment to be Processed 21. Bank Statement to be Processed

SalesAccount Management

Purchase

Warehousing

Account Payable Invoices Account Receivable Invoices

Cash Management


ProductManagementSales Pricing



Receiving - Advanced Store Goods Packing Shipping -Advanced


Payments by Bank

Purchase OrderClosure

Purchase OrderEntry

Invoice Processing -Normal Invoice Creation

Goods Flow

Customer

Supplier

BankBank

2.

1.

15.

14.

13.

4. 3.

5.6.

18.19.

20.

21.

12.

11.10.9.8.

7.

16.

17.

Figure 5-1 Case CHL04a Order to Payment, (Purchase-to-Order)

5-4 | Case CHL04a: Order-to-Payment, (Purchase-to-Order)

Scope

The objective of this case is to describe what subsequent activities are planned and carried out based on the service contract with the customer. In the service contract, for example, the service level agreement, the specific warranties for each item in the configuration structure are specified. Based on the contract details, a periodic preventive maintenance is planned from which service orders are created. Based on available capacity, the service orders can be planned or re-planned and scheduled or rescheduled. After all materials and tools are available, the maintenance or repair is performed and finally the invoice based on actual use is sent to the customer.


For complex and unique configurations at the customer site, a new configuration is defined and managed.

6Chapter 6 Case CHL05a: Planned Maintenance from Service Contract

6-2 | Case CHL05a: Planned Maintenance from Service Contract

Case assumptions

In this case, the following assumptions are made:

Material and tools are available in the warehouse and are not purchased specifically for the customer.

Customer is known.

Warranty specifications are predefined.

Case description

The input for this case is a request for a service contract. In the request, the pricing and warranty terms for a configuration is specified. Based on the specification, a quotation is made, which consists of one of more customer-specific configurations and prices. In each configuration, the item hierarchy plus the agreed warranty is described.

The contract is drawn up based on the quotation. The contract then requires a final approval by the customer.

After the contract is signed, an overview can be generated in which all periodic (preventive) service activities are specified.

Afterwards, all generated service orders can be planned or re-planned and scheduled or rescheduled based on available resource capacity.

In case of sufficient capacity, all materials are issued from the warehouse to the site and the order can be carried out. After the activities have ended the actual material usage and the hours spent are registered for invoicing purposes.

After finalizing all activities, the service order can be closed and all costs can be transferred to the financial department and invoiced to the customer, depending on the warranty.

Case CHL05a: Planned Maintenance from Service Contract | 6-3

Diagram

CHL05a: Planned Maintenance from Service Contract--------------------------------------------- 1. Quotation to be Entered 2. Configuration to be Managed 3. Contract to be Created 4. Maintenance-Plan to be Managed 5. Service Order to be Prepared and Planned 6. Service Order to be Scheduled 7. Materials and Tools to be Issued 8. Service Order to be Executed 9. Service Order to be Closed 10. Invoice to be Created 11. Invoice to be Paid 12. Open Entry to be Controlled 13. Bank Statement to be Processed

Enterprise Planning

Sales

Account Management

Engineering

Warehousing

Cash Management

Account Receivable Invoices

Service Execution Control

Service ActivityPreparation and

Planning

Service ActivityScheduling and

Dispatching

Service ActivityExecution

Management

Service OrderClosure

QuotationManagement -

Service (contractbased)

MaintenancePlanning

Picking - Advanced Invoice CreationCredit Control


ServiceConfigurationManagement

Contract Entry -Service

Customer

Bank13.

11.

5.

6.

7.

8. 9.

10.

12.

1.2.

4.

3.

Figure 6-1 Case CHL05a Planned Maintenance from Service Contract

6-4 | Case CHL05a: Planned Maintenance from Service Contract

Scope

The objective of this case is to describe which subsequent activities are required to solve a customer’s problem. A call is entered to describe the problem. Next, the call is assigned to an engineer who attempts to solve the problem. In case no solution is readily available, the call is escalated to an order that is usually planned and carried out.


No assumptions are made in regards to the business in this case.

7Chapter 7 Case CHL06a: Request for Repair

7-2 | Case CHL06a: Request for Repair

Case assumptions

The following assumptions are made in this case:


Customer is known.

No quotation is made when the call is transferred to an order.

Case description

The input for this case is a problem at the customer site. The problem is described in the form of a call where all relevant customer information is captured.

Based on the description, the call is assigned to a support engineer who is responsible to solve the problem by means of a diagnostic tree. If the problem cannot be solved immediately, the call is escalated and transferred into a service order.

Next, the service orders can be planned or re-planned and scheduled or rescheduled based on available resource capacity.

In case of sufficient capacity, all material is issued from the warehouse to the site and the order can be carried out. After the activities have ended, the actual material usage and spent hours are registered for invoicing purposes.

After finalizing all activities, the service order can be closed and all costs can be transferred to the financial department and possibly invoiced to the customer, depending on the warranty.

Case CHL06a: Request for Repair | 7-3

Diagram

CHL06a: Request for Repair--------------------------------------------- 1. Call to be Entered 2. Call to be Handled 3. Service Order to be Entered 4. Service Order to be Prepared and Planned 5. Service Order to be Scheduled and Dispatched 6. Materials and Tools to be Issued 7. Service Order to be Extecuted 8. Service Order to be Closed 9. Call to be Closed 10. Invoice to be Created 11. Open Entry to be Controlled 12. Invoice to be Paid 13. Bank Statement to be Processed

Call/Order Management

Service Execution Control

Warehousing


Cash Management

Call EntryService Order Entry

Call Closure

Call Handling

Picking - Advanced

Service ActivityScheduling and

Dispatching

Service ActivityPreparation and

Planning

Service ActivityExecution

Management

Service OrderClosure



Customer

Bank

1.

13.

12.

5.

6.

7.

10.

4.

8.

11.

9.

2.3.

Figure 7-1 Case CHL06a Request-for-Repair

7-4 | Case CHL06a: Request for Repair

Scope

This case describes the processes that are carried out to provide the management with financial information. The case is built up in a way that differs from the other business cases, because all the processes that are shown are time-triggered.


This case assumes that every year, next year’s financial plan is created, and that every quarter, the current financial plan is updated.

Case assumptions

This case only includes functions that are time-triggered. The functions related to accounts payable, accounts receivable and cash management have been omitted because these functions are already included in other business cases.

8Chapter 8 Case CHL07a: Financial Management

8-2 | Case CHL07a: Financial Management

Case description

Financial plan to be maintained: The case starts with the financial plan that is maintained, which can be either at the end of a fiscal year to create the plan for next year, or at the end of the quarter to adjust the plan based on the actual data. The financial plan is translated into department budgets.

Cost budget to be maintained: Based on the financial plan, detailed cost budgets are generated. In addition, allocations between cost centers and allocations to cost objects are calculated. Based on these allocations, the operation rates and surcharges are calculated. Finally, the product costs are calculated or re-calculated based on these rates and surcharges.

Integration processing to be performed: The logistical transactions are translated into financial entries and posted in the general ledger.

Ad hoc reporting to be performed: The financial data are analyzed using the ad hoc reporting facilities that ERP LN provides.

Cost analysis to be performed: The cost allocations are updated periodically, based on the actual costs.

Period end processing to be performed: At the end of the period, some recurring tasks are performed. Subsequently, the period is closed, which means that the data from the previous period are frozen, and you can create the official financial reports.

Sales statistics to be analyzed.

Purchase statistics to be analyzed.

Statutory and management reporting to be performed.

Statutory reporting (special reports) to be performed.

Periodical fixed assets processing.

Case CHL07a: Financial Management | 8-3

Diagram

CHL07a: Financial Management--------------------------------------------------- 1. Financial Plan to be Managed 2. Cost Budget to be Managed 3. Integration Processing to be Performed 4. Reporting to be Performed 5. Cost to be Analyzed 6. Fixed Asset to be Processed 7. Period End Processing to be Performed 8. Statutory Reporting (Special Reports) to be Performed

Financial Planning & BudgettingCost Accounting

Posting & Auditing

Reporting & Analyzing

Fixed Assets

IntegrationProcessing

Period EndProcessing

Statutory Reporting- specials Europe Reporting

Cost Budgeting -Regular

Cost Analysis -Regular

Financial Planningand Budgeting

Fixed AssetPeriodical

Processing

Yearly /Quarterly

Daily

Periodically

2. 1.

3.

8.

5.

7.

4.

6.

Figure 8-1 Case CHL07a Financial Management

8-4 | Case CHL07a: Financial Management

Scope

The objective of this case is to describe which activities must be carried out to respond adequately to a return order from a customer and a return order to a supplier for a standard product. As a result, two variants of return orders are handled in one case. The first four major steps of the case cover the process of customer returns. The supplier returns are handled in Steps 5 through 9.

Examples of this case include incorrect deliveries, surpluses, damaged goods, obsolete stock, and so on.


This case makes the following assumptions in regard to business:

Returns are announced so that the return can be created in the system.

No swap of goods will occur.

The amount to be credited will be settled with another invoice.

9Chapter 9 Case CHL08a: Return Management

9-2 | Case CHL08a: Return Management

Case assumptions


For the completion of the total case, the returned goods from the customer are assumed to be purchased items and that these items will be returned to the original supplier.

The transfer of the goods back to the supplier is assumed to be required, and goods cannot be repaired on site.

The return order is created based on the original sales/purchase order.

The original trigger is created by inspection for return to the supplier.

Case description

The input for this case is a call from a customer. The items at the customer location are not ordered, not required, or damaged. During the call with Customer Return Management, the return reason will be discussed and a solution will be provided. If the material is not swapped, you also cannot repair the goods. The customer agrees to return the material.

In this case, a return order is generated by the system and the return number is reported to the customer. Next, the return shipment will be planned and, after the pickup at the customer’s location, the items will be delivered at the warehouse.

The material will be received as a normal receipt. In some cases, the material will be blocked upon receipt, such as recall, damaged, or obsolete material, and/or inspected, such as recall or damaged material, by product quality.

After the receipt, the return order will be closed and a credit note will be sent to the customer. Because regular business with the customer is assumed to take place, the amount will not be credited by means of the bank. The amount will be settled with another, unpaid invoice of the customer.

In this case, Inspection decides that the material cannot be re-sold to another customer and, therefore, must be returned to the vendor. Supplier Return Management contacts the supplier to negotiate the return of the material.

Case CHL08a: Return Management | 9-3

To ship the goods, a return order (purchase) will be generated. The material is picked, packed, and then shipped back to the supplier.

After the material is shipped, a credit note is received from the supplier. The parties agreed that the credit note will be settled with an unpaid invoice of the supplier.

Diagram

CHL08a: Return Management------------------------------------------- 1. Customer Return to be Managed 2. Sales Return Order to be Received 3. Goods to be Inspected 4. Sales Order to be Closed 5. Credit Note to be Created 6. Goods to be Stored 7. Supplier Goods to be Returned 8. Supplier Return to be Managed 9. Goods to be Picked 10. Goods to be Packed 11. Goods to be Shipped 12. Purchase (Return) Order to be Closed 13. Credit Note to be Created

Purchase

Warehousing

Sales

Account Receivable InvoicesAccount Payable Invoices

Customer ReturnsManagement


Receiving -AdvancedInspectionStore Goods

Packing Shipping -Advanced

Picking -Advanced

Process Credit Note(Europe)

Supplier ReturnManagement

Purchase OrderClosure

Credit Note (Europe)

Customer

Supplier

7.

1.2.

3.6.

11.

4.

5.

12.

8.

13.

9.

10.

Figure 9-1 Case CHL08a Return Management

9-4 | Case CHL08a: Return Management

Scope

The objective of this case is to describe which subsequent activities must be carried out to respond adequately to a request for a quotation for a specified product. High-level product engineering is required to complete the quotation. This quotation can result in an order if the customer agrees to the proposal.

For example, this case is common for engineer-to-order organizations that produce customer specified products. An example is the machine-building industry.

The process of the customer who actually accepts the quotation is modeled in case CHL01c. In this case, the production of the item, which is controlled on a project basis, and the actual delivery to the customer, are also represented. The process of bidding and negotiating with the customer is not represented in any case.

10Chapter 10 Case CHL09a: Request for Quotation, Engineer-to-Order (ETO)

10-2 | Case CHL09a: Request for Quotation, Engineer-to-Order (ETO)


This case makes the following assumptions in regards to the business:

In this business environment, ERP LN ERP Manufacturing, Project Control System is used as the supporting functionality for these types of projects.

Prototyping and R&D are outside the scope. Engineering is the process of the drawing and creating the bill of material of the end item. In this case, the engineering is performed without engineering change orders.

For managing the quotation creation process, no complex project management tools are used. A project for the quotation creation process is solely defined for entering engineering hours.

Prefinancing occurs frequently in this environment, which can have an impact on the quotation, for example, a request for pre-payment. However, this does not show explicitly in the case.

An invoice is usually not sent in the quotation phase; invoices can only be sent in the actual contract phase.

Case assumptions


The customer is not yet known and, therefore, must be entered in Customer Data Management.

In the quotation phase, no items are ordered and inquiries can be made. Actual orders can only be entered in CHL01c.

The potential iteration in the process of defining the final specifications in between the sign-off of the quotation and the issuing of the sales order is not modeled in this case. After the quotation has been sent to the customer, a long period of negotiation usually takes place. In this case, requests for quotation-changes can be seen as the same initial request trigger.

Request for Quotation Management handles the Specifications, Price, Quality, and Lead-time (SPQL) definition. Purchase Inquiry Management carries out the investigation for purchased items concerning SPQL.

Case CHL09a: Request for Quotation, Engineer-to-Order (ETO) | 10-3

Case description

The input for this case is a request for a quotation from the customer, which contains the commercial, technical, and quality requirements specified by the customer. First, in the main function, request for quotation management, the customer request is translated and registered in a quotation with quotation lines. Here, the financial planning and budgeting, as well as the available capacity, can also be checked to see whether, if, and when the customer can expect the quotation. In this case, you can also decide that, for a particular RFQ, no actual quotation will be made and, therefore, the customer must then be informed about this denial.

This case also assumes that the customer is not known at the moment of placing the RFQ and, therefore, all the customer-related data can be entered in Customer Data Management.

If in RFQ Management you determined to provide follow-up to a particular RFQ, you can define a project on which hours can be booked during the quotation phase. As a result, the amount of hours booked on a particular RFQ is then known. In addition, you can also create a rough definition of the project here.

Next, you can perform product engineering for the product. A check will be carried out to verify whether similar projects were performed previously out of which parts can be copied. The high-level product design, bills of material (BOMs), product structures, and other documentation based on the requirements are created.

If unknown components might be required for this project, purchase inquiries can be sent out to suppliers and subcontractors to obtain information about specifications, prices, delivery times, and so on.

Based on the engineered product and the gathered related information, a more detailed project can then be defined for the actual building and construction of the product.

In Project Estimating, a lead-time and a price for the project can then be calculated.

You might be required to adapt or modify the financial plans and budgets according to the possibility of winning a particular sales order.


You must take into consideration the influence that a relatively large order can have on the financial situation of the company before you can send the quotation to the customer. Based on available resources, budgets, and so on, a decision must be made as to whether or not the project fits in the current financial plan or whether the financial plan might have to be modified. A result of this can also be a request for pre-financing to be sent along with the quotation to the customer.

The quotation can then be created and sent to the customer. This quotation creation job must be performed repeatedly. The proposal is sent back and forth a several times.

The case that follows logically after this case is CHL01c Order-to-Payment (ETO).

Case CHL09a: Request for Quotation, Engineer-to-Order (ETO) | 10-5

Diagram

CHL09a: Request for Quotation (ETO)-------------------------------------------- 1. Request for Quotation to be Controlled 2. Customer Data to be Controlled 3. Project to be Defined 4. Product to be Engineered 5. Purchase Inquiry to be Managed 6. Request for Quotation to be Processed 7. Project to be Defined 8. Project to be Estimated 9. Financial Planning to be Executed 10. Quotation to be Created 11. Quotation to be Accepted

Purchase Engineering

Project Management

Account Management

Sales

Financial Planning & Budgeting



Specif ied


Specif ied

Project Definition -Product Oriented

Project Estimating -Product Oriented


MJS)

Purchase InquiryManagement


Customer

Supplier1.

6.

4. 2.

3.

7.

8.

10.9.

11.

5.

Figure 10-1 Case CHL09a Request for Quotation, Engineer-to-Order (ETO)

Scope

The objective of this case is to describe which activities must be carried out to respond adequately to a request for a quotation for a customized product. High level product-engineering and process-engineering is required to complete the quotation. This quotation can result in an order if the customer agrees to the proposal.

For example, this case is common for project-industries types of organizations that produce customer-specified products, an example of which is industrial machinery and equipment manufacturing companies.

The process of the customer who is actually accepting the quotation is modeled in case CHL0la. This case also presents the production of the item, which is controlled using project management, and is delivered to the customer. The process of bidding and negotiating with the customer is not represented in any case.

11Chapter 11 Case CHL11a: Request for Quotation (Process-Driven Project)

11-2 | Case CHL11a: Request for Quotation (Process-Driven Project)


This case makes the following assumptions concerning the business:

In this business environment, ERP LN Project is used as the supporting functionality for these types of projects, because the project is highly activity-driven.

The overall scope of the project is managed using Work Breakdown Structure (WBS).

Prototyping and Research & Development are left out of the scope. Engineering is only the drawing and mental process. The end deliverable is a production bill of material (P-BOM).

For managing the quotation creation process, no complex project management tools are used, a project for the quotation creation process is solely defined for entering engineering hours.

Prefinancing occurs frequently in this environment, which can have an impact on the quotation, for example, a request for prepayment. However, this does not show explicitly in the case.

An invoice is usually not sent in the quotation phase. Invoices can only be sent in the actual contract phase.

Case assumptions


Usually, quite some time is spent on pre-qualifications and investigations before an actual quotation will be created, however, this process is not modeled.

The customer is not yet known and, therefore, must be entered in Customer Data Management.

The potential iteration in the process of defining the final specifications in between the sign-off of the quotation and the award of project contract is not modeled. In the quotation phase, no items are ordered and inquiries can be made. Actual orders can only be created in CHL0la.

After the quotation has been sent to the customer, a long period of negotiation usually takes place. In this case, requests for quotation-changes can be seen as the initial request trigger.

Case CHL11a: Request for Quotation (Process-Driven Project) | 11-3

Case description

The input for this case is a request for a quotation from the customer, which contains the commercial, technical, and quality requirements specified by the customer. The customer request is translated and registered roughly in Project Definition as a project. This case assumes that the customer is not known at the moment the request for quotation (RFQ) is placed and, therefore, all the customer-related data can be entered in Customer Data Management. You can define an additional project here, on which hours can be booked during the quotation phase, so that afterwards the amount of hours booked on a particular RFQ are known.

The complete scope is captured in a clearly defined WBS. Estimating is performed for each element of the WBS. The resource requirements, including items (BOMs) required for the project are determined for each WBS element.

Next, you can perform product engineering for the project. A check will be performed to verify whether similar projects were implemented previously out of which parts can be copied. The high-level product design, engineering-bill of material (E-BOM), product structures, and other documentation based on the requirements are created. If unknown components might be required for this project, purchase inquiries can be sent out to suppliers and subcontractors to obtain information about specifications, prices, delivery times, and so on.

After the product engineering has been performed and the E-BOM is finished, you must create the production-bill of material (P-BOM). This process is carried out in process engineering where the routing is also defined.

Based on the engineered product and the gathered related information, you can define a more detailed project for the actual building, construction, and implementation of the product.

In Project Estimating, you can then calculate a lead-time and a price for the project.

You might be required to adapt or modify the financial plans and budgets according to the possibility of winning a particular sales order. The influence a relatively big order can have on the financial situation of the company must be taken into consideration before the quotation can be sent to the customer.


Based on available resources, budgets, and so on, a decision must be made as to whether or not the project fits in the current financial plan or whether the financial plan might have to be modified. A result of this can also be a request for pre-financing to be sent along with the quotation to the customer.

You can then create the quotation and send the quotation to the customer. This quotation creation job must be performed several times. The proposal is also sent back and forth a number of times.

The case that follows logically after this case is CHLl2a Order-to-Payment (Process-Driven Project).

Case CHL11a: Request for Quotation (Process-Driven Project) | 11-5

Diagram

CHL11a: Request for Quotation (Process-driven Project)------------------------------------------------ 1. Request for Quotation to be Managed 2. Customer Data to be Managed 3. Project to be Engineered 4. Purchase Inquiry to be Managed 5. Request for Quotation to be Processed 6. Process to be Engineered 7. Project to be Defined 8. Project to be Estimated 9. Financial Plan to be Managed 10. Quotation to be Accepted


Account Management

Project Management

Financial Planning & Budgeting



MJS)Process EngineeringPurchase Inquiry

Management


Project Estimating -Process Oriented

Project Definition -Process Oriented

CustomerSupplier

5.4. 6.

1.

2.3.

7.

8.

9.

10.

Figure 11-1 Case CHL11a Request for Quotation (Process-Driven Project)

Scope

The objective of this case is to describe which subsequent activities must be carried out to respond adequately to a request for a designed solution based on a created quotation. The high-level product engineering and process engineering has already been implemented and only the final part of the engineering must be performed. The result of this case is a created or delivered designed solution.

For example, this case is common for project industries types of organizations that produce customer-specified designed solutions, for example, the industrial machinery and equipment manufacturing companies.

This case is actually the follow-up of the case as described in CHL11a, in which the quotation for the designed solution is created. Only in this case, the project creation and realization is modeled.

12Chapter 12 Case CHL12a: Order-to-Payment (Process-Driven Project)

12-2 | Case CHL12a: Order-to-Payment (Process-Driven Project)


In this case, the following assumptions are made concerning the business:

In this business environment, ERP LN Project is used as the supporting functionality for these types of projects.

The overall scope of the project is managed using Work Breakdown Structure (WBS).

Prototyping and R&D are left out of scope. Engineering is only the drawing and mental process. The end deliverable is a P-BOM.

Case assumptions


The customer is already known from the quotation phase and, therefore, is not entered in Customer Data Management.

The potential iteration in the process of defining the final specifications in between the sign-off of the quotation and the issuing of the sales order is not modeled.

All items, including the long-lead-time items, are ordered in the contract-phase.

The production of the customized product can only be started after goods that have specifically been ordered for this product are received at the warehouse. Usually, a project starts with an empty warehouse, mainly filled with very generic items, whereas project-specific items are usually required for a project.

Installation of equipment at site is part of the project contract. The work is carried out by the Service Department.

The invoicing is usually carried out at various moments during an actual project, for example, contract signing, production start, production finish, and actual delivery. However, this case assumes, for reasons of simplicity, to only show this invoicing-part of the process at the end of the project.

Case CHL12a: Order-to-Payment (Process-Driven Project) | 12-3

Case description

The input for this case is a request from the customer for a quotation to be copied into an actual order that contains the commercial, technical, and quality requirements, as specified during the quotation phase.

First, in the main function project definition, the status of the project can be changed. Next, the project can be defined in more detail and the final product-and process engineering can be implemented. Based on the information that comes from engineering, the final modifications and additions to the project can be made and a budget can be calculated for the project.

Next, in Project Planning, you can make a planning and check the planning against the available capacity. If the available capacity is insufficient, you can make modifications to the plan.

Based on this planning, you can begin to implement the project, and you can the send the purchase orders, as well as the long-lead-time items, to the supplier or subcontractor. As soon as the goods are received, the process can continue.

Project Administration is now triggered to administrate hours, costs and commitments, revenues, and progress.

Immediately after Project Administration, Project Cost and Planning Control are triggered so the progress made to the project can be measured. Execution Control can then initiate the actual start of the execution and can trigger picking, inspection, shipping of the goods and installation at project site.

Installation of equipment and machinery on site is performed by creating service orders from the labor requirements.

Because Project Cost and Planning Control controlled the project during the total implementation of the project, the project appears to have ended. From there, project evaluation and closing will be triggered. At this point, clusters are created using the As-Built structure of Project Product for service and maintenance.

Next, you can send and further process the invoice through Invoicing, Credit Control, and Bank Statement Processing.

12-4 | Case CHL12a: Order-to-Payment (Process-Driven Project)

Diagram

CHL12a: Order-to-Payment (Process-Driven Project)---------------------------------------------- 1. Project to be Defined 2. Product to be Engineered 3. Production Process to be Engineered 4. Project to be Defined 5. Project to be Budgeted 6. Project to be Planned 7. Project Execution to be Controlled 8. Purchase Order to be Created 9. Purchase Order to be Fulfilled 10. Purchase Order to be Received 11. Project to be Administrated 12. Project to be Controlled 13. Components to be Picked 14. End Product / Components to be Stored 15. End Product / Components to be Shipped to BP / Project Site 16. Product / Components to be installed at Project Site 17. Project to be Evaluated and Closed 18. Invoice to be Created 19. Invoice to be Paid 20. Open Entry to be Controlled 21. Bank Statement to be Processed

Service


Project Management

Warehousing

Account Receivable Invoices

Cash Management

Purchase OrderEntry

Product Engineering- Change Ordersw ith EDM (MJS,

MRT)

ProcessEngineering

Project Evaluation &Closing - Process

Oriented

Project Definition -Process Oriented

Project Budgeting -Process Oriented

Project Planning -Process Oriented

Project Control -Process Oriented

Execution ControlProject

Administration

Store Goods Picking - AdvancedStore GoodsPicking - Advanced Inspection Shipping - BasicReceiving -Advanced



Service ExecutionControl

Goods Flow

CustomerSupplier

Bank

15.

14.

8.

20.

21.

19.

9.

16.

18.

17.

2.4.

10.

6.

5.

3.

1.

7.12.

11.

13.

Figure 12-1 Case CHLl2a Order to Payment (Process Driven Project)

Scope

The objective of this case is to describe which subsequent activities are required to solve a customer's problem related to a product that can be repaired at a repair center only. A call is entered that describes the problem and the necessity. Afterwards, the call is assigned to an engineer who is trying to solve the problem or get more details. If the problem is not solved, the call is escalated to a maintenance sales order, which can handle repair or replacement of the part under question. The maintenance sales order is executed either as a parts replacement order, as a replacement receipt or delivery, or loaner or receipt, or as parts repair order, which results in the receipt, repair, or delivery of the part.


No business assumptions are made in this case.

13Chapter 13 Case CHL13a: Request for depot repair

13-2 | Case CHL13a: Request for depot repair

Case assumptions



Customer is known.

Quotation for maintenance sales order can be made but from the information from work orders.

Case description

The input for this case is a problem reporting from a customer site in regards to a defective or worn-out item. The problem is described in the form of a call where all relevant customer information is captured. A problem faced on a product at the customer site serves as the input for this case. The problem is described in the form of a call in which all relevant customer information is captured. This case is an instance in which repair or replacement of the product causing problems from a repair center is particularly essential.

Based on the description, the call is assigned to a support engineer who is responsible for understanding the problem by means of a diagnostic tree. If the problem cannot be solved immediately, the call is escalated and transferred into a maintenance sales order, to keep track of the material being returned for repair or replacement.

Afterwards, the maintenance sales order can be handled for repair or replacement, or for loaning out items. Next, the maintenance sales order is settled financially.

In the case of a replacement, the maintenance sales orders can accept an incoming defective item and then send a functioning item as a replacement. In this case, the replacement is handled in the maintenance sales order itself.

In case of a repair, the maintenance sales order lines can lead to work orders, which are handled to repair the incoming defective item. While handling the work order, you might be required to pick up the item from a warehouse or a predefined location. You can also be required to draw parts, accessories, and tools while you carry out the work orders.

Case CHL13a: Request for depot repair | 13-3

Actual lines can be registered on the concluded work orders. The maintenance sales order is concluded with the delivery of the item.

Next, these work orders are concluded logistically and financially. The costs can be useful as inputs to the maintenance sales orders.

Next, the maintenance sales orders are concluded and closed by updating the lines for financials and then registering the cost coverage based on service level agreements and, finally, invoicing the customer for the necessary net amounts. As a result, in the financial functions, you can track the account receivables.

13-4 | Case CHL13a: Request for depot repair

Diagram

Call/Order Management

CHL13a: Request for Depot Repair----------------------------------------- 1. Call to be Entered 2. Call to be Handled 3. RMA Requirement 4. Maintenance Sales Order to be Entered 5. Work Order to be Created 6. RMA Receipt to be Tracked 7. Items, Tools and Parts to be Issued 8. Work Order to be Handled 9. Work Order to be Completed 10. Service to be Delivered 11. Call to be Closed 12. Invoice to be Created 13. Invoice to be Paid 14. Open Entry to be Controlled 15. Bank Statement to be Processed

RMA/Depot Repair Control

Warehousing


Cash Management

Call Entry

Call Closure

Call HandlingMaintenance SalesOrder Entry

Handling ofMaintenance Sales

Orders

Work OrderManagement

Closure of WorkOrders

Closure ofMaintenance Sales

Orders

Picking - Advanced



Customer

Bank

1.2.3.

6.

7.

4.

5. 8. 9.

14.

12.

15.

13.

10.

11.

Figure 13-1 Case CHLl3a Request for Depot Repair

Scope

This business case describes the fulfillment of a sales order request for standard goods delivered from stock (refer to case CHL01a). The added value of this case is that the sales order also triggers a requirement for managing the transport.

The business case starts with a request from a customer, which results in warehousing- and transport-related activities, and ends with the invoicing and payment of goods sold and the invoicing of the transport services involved.

14Chapter 14 Case CHL14a: Order-to-Payment (MTS), including Freight Management

14-2 | Case CHL14a: Order-to-Payment (MTS), including Freight Management


This business case applies to standard items that are in stock, for example in a finished goods warehouse at:

The manufacturing plant

A service parts warehouse

A distribution centre owned by a manufacturing plant

A wholesaler

This business case applies to a so-called shipper, a commercial enterprise involved in manufacturing, wholesale, and so on, for whom transport is not core business but who wants to be involved in the management of the transport of his products to, for example, customers.

The shipper wants to be involved in the handling and monitoring of the transport of his products to customers. The shipper might decide on a complete freight management procedure, including freight order handling, load planning, and even invoicing of transport services to customers. However, the shipper might also choose to subcontract the planning and execution of all or some of the transport activities to external carriers. Alternatively, the shipper might prefer to still be responsible for the planning, but leave the actual execution to specialists (carriers / logistic service providers).

Case assumptions

This case includes the following assumptions:

This business case is suitable for the standard typology.

Warehouse scheduling activities are assumed to take place before order picking can be started.

Picking, packing, and shipping are carried out sequentially. All packing activities for both item packing and unit packing are carried out in the main function for packing.

Case CHL14a: Order-to-Payment (MTS), including Freight Management | 14-3

Case description

This business case is triggered by a request from a customer that can result in a sales order to be entered. After sales order entry, freight orders are generated at an early stage, before any signal has gone to the warehouse. This enables a thorough freight planning and costing, resulting in a feasible load plan, loads, and shipments, as well as a proper freight cost calculation. Alternatively, freight orders can be subcontracted with or without being planned.

In addition, the sales order triggers the generation of warehouse orders to initiate the picking of goods from stock. The outbound advice and picking procedure can be based on the loads and shipments created by the planning engine.

Finally, products are packed for each order and prepared for shipment to the customer.

After all order lines have been prepared and shipped, sales and freight orders are closed and invoices can be prepared for the goods as well as the accompanying transport services.

14-4 | Case CHL14a: Order-to-Payment (MTS), including Freight Management

Diagram

CHL14a: Order-to-Payment (MTS); Including Freight Management---------------------------------------------------------- 1. Sales Order to be Entered 2. Customer Data to be Managed 3. Sales Order to be Copied to Freight Order 4. Freight order to be Prepared for Subcontracted 5. Freight order to be Planned 6. Freight Order Clusters to be Subcontracted 7. Planned Loads and Shipments to be Picked 7a. Planned Loads and Shipments to be Subcontracted 8. Subcontracted Freight Orders, Loads, Shipments to be Picked 9. Goods to be Packed 10. Goods to be Shipped 11. Sales Order to be Closed 12. Freight Orders to be Released for Invoicing 13. Invoice to be Created 14. Invoice to be Paid 15. Bank Statement to be Processed

Freight OrderSubcontracting

Freight OrderControl

Freight Planning andCosting

Freight OrderRelease for

Invoicing

Invoicing

Bank StatementProcessing

Picking Packing Shipping




Goods Flow

Customer

Carrier

Bank

3.5.7.

4.

12.

13.

6.

7a.

8.

1.

15.

14.

2.

9. 10. 11.

Figure 14-1 Case CHL14a Order-to-Payment (MTS), including Freight Management

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