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Comprehensive Overview of Enterprise Manufacturing Systems: Business Processes and Functionality

This document provides a detailed overview of enterprise manufacturing systems, highlighting their critical business processes and functionalities. It covers manufacturing planning and execution, procurement, customer order management, and financial management. Key topics include master production scheduling (MPS), material requirements planning (MRP), purchasing requisitions, vendor payments, and customer billing. It emphasizes the interrelationships between these processes and their impact on effective resource management and operational efficiency within manufacturing organizations.

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Comprehensive Overview of Enterprise Manufacturing Systems: Business Processes and Functionality

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  1. IE 450 Enterprise Perspective of Manufacturing System Business Process Overview

  2. Business Processes Functionality Manufacturing Planning & Execution Procurement Customer Order Management Financial / Management Accounting and Reporting

  3. Financial controlling Resource controlling Sales Presales Activity Sales order InventorySourcing Delivery CustomerBilling CustomerPayment Customer Order Production Plannedorder MPS Produc-tionorder Shopfloorcontrol SOP MRP Purchasing Requi-sition Purchase order Vendor Payment Invoice verifi- cation Vendorselection Goodsreceipt Logistics controlling Sales, Production, Purchasing, Warehouse Business Processes Functionality

  4. Business Processes Functionality Manufacturing Planning & Execution

  5. Bill Of Material Processing (BOMP) • Few products are a single component • Lead times for the components vary • A BOMP “explodes” out the requirements for a final product

  6. Example - A car • One Explorer • 5 tires Firestone ATX size 270-r60-16 • 20 lug nuts • 4 Crome-alloy wheels • 1 steel wheel • 1 left front fender • 1 right front fender • ….

  7. Business Processes Functionality Procurement

  8. Business Process Overview Procurement Requirement for Goods / Services Purchase Order Goods Receipt Invoice Verification Vendor Payment Planning, Reporting and Analysis

  9. Business Processes Functionality Manufacturing Planning & Execution Procurement Customer Order Management Financial / Management Accounting and Reporting

  10. Business Processes Functionality Customer Order Management Customer Order

  11. Business Process Overview Customer Order Management Pre-Sales Activities Sales Order Processing Inventory Sourcing Delivery Billing Customer Payment Planning, Reporting and Analysis

  12. Business Processes Functionality Financial / Management Accounting and Reporting

  13. Periodic Daily Structure Processing Activities & Reporting & Analysis Overview Organization Business Process Overview Financial / Management Accounting and Reporting Planning & Forecasting FOUNDATION BUSINESS PROCESS

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

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

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

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

  18. System Walkthrough Purchase Orders: • A binding contract with a vendor to supplycertain materials or services based on certain terms and conditions

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

  20. System Walkthrough Invoice Receipt and Verification: • The process of receiving the vendor invoice, comparing it with the purchase order and goods receipts, and recording the corresponding liability to the vendor

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

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

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

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

  25. Customer Order System Walkthrough Payment Processing: • The process of recording the customer’s payment, increasing the customer’s available credit, reducing receivables, and recording cash discounts given

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

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

  28. Customer Order System Walkthrough Customer Delivery: • The transfer of the ownership of the goods by: • Creating a delivery document • Picking the goods for shipment • Physically transferring the goods to the customer • Financially recording the goods issue

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

  30. System Walkthrough Financial / ManagementAccounting and Reporting: • A flexible set of tools used to analyze financial and management performance

  31. Business Processes Functionality Manufacturing Planning & Execution Procurement Customer Order Management Financial / Management Accounting and Reporting

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