Bài giảng Enterprise information systems - Chapter 11: The Conversion Business Process

Chapter 11The Conversion Business ProcessChapter Learning ObjectivesIdentify the activities and documents common to most conversion business processesRecognize the similarities and differences between various types of conversion processesExplain the various components of the REA ontology in the conversion business processCreate a REA business process level model for an enterprise’s conversion processIdentify common information needs within the conversion processCreate database queries to retrieve conversion process information from a relational database2Conversion Process in an Enterprise Value System3Conversion Process in an Enterprise Value Chain4Conversion Cycle Core REA Pattern5Conversion Cycle Extended Business Process Level Pattern6Cookie Baking Conversion Business Process Level Model7Conversion Cycle EventsEconomic Increment EventProduction Run; the event that produces a finished product resourceRepresents a batch or job in a job-order-costing environment (and may be labeled as such)Represents a machine run in a process-costing environment, or some equivalent time period such as a growing seasonData typically captured include an assigned identifier, starting date/time and ending date/time of the event, and data as to the resources and agents involved in the production runRelational Tables Encompassing Production Run Event9Conversion Cycle EventsEconomic Decrement EventMaterials Issuance Represents the using up of raw materials in the production process. Those raw materials are usually transformed into finished goods and lose their own identity and nature in the process. Is usually symbolized by a move ticket or similar document Data typically captured include date/time of issuance; origin and destination of the issuance, the underlying production order, and the agents involved in authorizing it (supervisor) and executing it (inventory clerk)10Move Ticket for Material Issuance11Relational Tables Encompassing Material Issuance Event12Conversion Cycle EventsEconomic Decrement EventLabor OperationRepresents the performance of a particular activity in the conversion process by a production employee, thereby using up that person’s laborIs usually symbolized by a job time ticket or time track formData typically captured include the starting and stopping times for the labor operations and descriptions of the labor operations on a specific date by a specific employee 13Job Time Ticket for Labor Operation14Relational Tables Encompassing Labor Operation Event15Conversion Cycle EventsEconomic Decrement EventMachine OperationRepresents the performance of a particular activity in the conversion process by a machine, thereby consuming part of the machine’s useful lifeIs usually symbolized by an entry on the WIP job ticket Data typically captured includes the starting and stopping dates and times for the machine operations, what machines were involved, who authorized them (supervisor) and who executed them (production employee)16Relational Tables Encompassing Machine Operation Event17Conversion Cycle EventsIncrement Commitment EventProduction (Job) OrderA commitment event that schedules a work-in-process job, committing to a future increase in finished productsIs usually symbolized by a Production Order number and data such as what finished good is being produced, what quantity is being produced, who approved it, the order date and requested completion date. The production order document may also summarize data such as what specific labor operations and materials are needed 18Production Order19Relational Tables Encompassing Production Order Event20Conversion Cycle EventsDecrement Commitment EventRaw Materials (or Labor or Machine) RequisitionIs a Commitment event whereby the production commits to transfer materials from the materials warehouse to the production floor, thus it commits to a future decrease in materials (or labor or machinery). If insufficient materials are on-hand in the warehouse or if insufficient labor is available, this may trigger activities in the purchasing or payroll departments; however, those activities are part of the acquisition/payment and payroll processes, not the conversion processIs usually symbolized by a materials requisition documentData captured typically include the date/time of requisition and information about the resources and agents involved in the event21Materials Requisition22Relational Tables Encompassing Materials Requisition Event23Conversion Cycle RelationshipsDualityTransformations are more complex than transfers found in other processesInvolve materials use, labor use, and equipment consumptionOften compromised such that only materials use is tracked directly, with labor and equipment consumption costs assigned via some allocation schemeOften labor operations and machine operations are not maintained separately from work-in-process job because they are subsumed into the job; relationships of the production run to the labor type and machine resources are often maintained24Conversion Cycle RelationshipsStock-flow Materials and labor are typically used up completely in the material issuances and labor operations; such stock flows are called UseMachines are typically only partially used up in machine operations, such a stock flow is called ConsumeFinished goods are produced by the production run (similar to inventory being purchased in acquisition cycle)FulfillmentMaterial issuances fulfill raw material requisitionsProduction runs fulfill production orders25Conversion Cycle RelationshipsReservationsRaw materials are reserved for use via the requisition eventFinished Goods are reserved for availability via the production orderParticipation relationshipsTypically all agents in the conversion cycle are internal agentsUsually includes a direct association relationship (responsibility) between production supervisors and employees26Conversion Cycle RelationshipsLinkages Between Materials and Finished GoodsContains information needed for Bill of Materials, I.e., a finished good is composed of what raw material items (in what quantities)Between Labor (type) and Finished GoodsContains information needed for Operations List, I.e., a what labor operations are needed to produce a finished good27Bill of MaterialsCaptures Linkage (Raw Materials-Finished Goods) information28Operations ListCaptures Linkage (Labor Type-Finished Goods) Information29Relational Tables Encompassing Linkage Relationships: Ingredients-Cookies30Relational Tables Encompassing Linkage Relationships: Labor Types-Cookies31Conversion Cycle RelationshipsReciprocalProduction orders trigger the requisitioning of materials; this reciprocal relationship represents a schedule of what is to be produced and what will need to be used and consumed to accomplish the production. CustodyCompanies often give custody of materials (and possibly finished goods) to a set of inventory clerks to protect the goods from theft or other misappropriation32Resource Query TypesDetailed status information at one or more points in time for each resource instanceDetailed status information at one or more points in time for only those resource instances meeting specified criteriaSummarized status information at one or more points in time for all resource instancesSummarized status information at one or more points in time for only those resource instances meeting specified criteria 33List of machinery owned by an enterpriseAverage age of machinery on a specified dateList of raw materials normally stocked by an enterpriseList of finished products normally produced by an enterpriseAverage standard cost of labor types for an enterpriseConversion Cycle Resource Queries34Event Query TypesDetailed information about each event instance e.g., what happened, when and where did it happen, etc.Detailed information about each event instance that meets specified criteria e.g. events of a specified type that occurred during a specified time period or that occurred at a specified locationSummarized information for all instances of an event type for a specified time period e.g. total of the event instances during a specified time periodSummarized information for only those instances of an event type for a specified time period that meet specified criteria e.g. average dollar value of the event instances for a specified location during a specified time period35Event Queries in the Conversion ProcessLength of a specific production runEnd time minus start timeAverage length of production runs during a specific time periodTotal number of production runs that occurred at a specific plant or workstation or during a specific time periodDate and/or time an issuance of materials occurred36Count number of ingredient issuances made to Workcenter E37When did the most recent Ingredient Requisition occur?38Agent Query TypesDetailed status information at one or more point in time for each employeeDetailed status information at one or more points in time for each employee who meets specified criteriaSummarized status information at one or more points in time for all employeesSummarized status information at one or more points in time for all employees who meet specified criteria39Conversion Cycle Agent QueriesList of employees including selected attributes such as addresses and telephone numbers40Conversion Cycle Duality Relationship QueriesIdentification of labor operations related to one or more specific production runsIdentification of machine operations related to one or more specific production runsCalculation of the time taken for a labor (or machine) operation as a percentage of a complete production runCount of the number of raw material issuances (or labor operations or machine operations) related to a specific production run41Which labor operations related to batch WJ142How many ingredient issuances were associated with each cookie batch?43Conversion Cycle Fulfillment Relationship QueriesIdentification of unfulfilled commitment eventsE.g. production orders for which production runs have not yet occurredIdentification of fulfilled commitment eventsE.g. material requisitions for which material issuances have occurredIdentification of economic events for which commitments were not madeE.g. production runs that were not ordered44Conversion Cycle Fulfillment Relationship QueriesCalculation of length of time between commitment and economic eventsE.g. length of time elapsed between material requisition and material issuanceIdentification of causes of economic eventsE.g. which production order led to a production runIdentification of results of commitment eventsE.g. which material issuance filled a material requisition45Query to Identify Untriggered Ingredient Issuances46Conversion Cycle Reservation QueriesWhat resources or resource types is a commitment event agreeing to increase or decrease?E.g. what finished good or finished good type is a production order committing to produce?What quantity of a resource or resource type is a commitment event agreeing to increase or decrease?E.g. What quantity of each material type is a material requisition committing to use up? What dollar value of a resource or resource type is a commitment event agreeing to increase or decrease?E.g. What is the dollar value of the finished goods a production order is committing to produce? 47Conversion Cycle Reservation QueriesWhen did an event commit to increase or decrease a specific resource or resource type?E.g. When did a materials requisition commit to using up a specific material type?Where did an event commit to increase or decrease a specific resource or resource type? E.g. To which materials warehouse location was a materials requisition issued?48Query to identify quantities and descriptions of ingredients to be used up by issuance #100249Conversion Cycle Participation QueriesWhich agent(s) participated in a specified event? E.g. Which production supervisor authorized a machine operation?How many events of a specified type has a specified agent participated? E.g. On how many production orders has a production employee been scheduled to work?What is the total dollar value of events of a specified type in which a specified agent has participated for a specified time period? E.g. What is the total dollar value of all material issuances approved by a production supervisor?50Query to identify names of baking employees who participated in baking order #PO251When did a specified event in which a specified agent participated occur?E.g. When was the most recent production order supervised by a specific production supervisorWhere did a specified event in which a specified agent participated occur?E.g. at which location did the most recent material issuance by a specific inventory clerk occurConversion Cycle Participation Queries52Conversion Cycle Linkage QueriesWhat raw materials are needed to produce a specific type of finished good?E.g. what ingredients are in chocolate chip cookiesWhat quantity of each raw material is needed to produce a specific type of finished good?E.g. how much butter is in a batch of snickerdoodlesWhich finished goods contain a specific type of raw material?E.g. which of our cookies contain nutsWhat labor types are needed to produce a specific type of finshed good?E.g. what types of labor go into a batch of molasses cookies53Query to identify descriptions of finished cookie types that require labor type “frost cookies”54SummaryWe discussed the conversion process and how it fits in at the value system and value chain levelsWe discussed the extended REA pattern at the business process levelWe examined documents typically used to represent events and discussed related resources and agentsWe examined examples of relational database tables for the conversion cycle and discussed data input into those tablesWe systematically discussed types of queries for the conversion process to support decision-makers in various functional areasWe provided selected examples of queries of various types55Chapter 11End of Chapter