Franz Birsel

1. The Logistic Chain Franz Birsel

2. Definition of Item Procedure of the logistic Chain Definition of items

3. Process The logistic chain contains the process from the customer order to the delivery. Customer order no Order Material- component no Demand planning available available Vendor yes yes Production order Stock Stock Incoming goods Invoice Accounting control Delivery Invoice Accounting Customer

4. Customer Order – Master Data For the creation of a customer order you need the following master data: • Material Data • Debitor Data

5. Customer Order At entering an order the delivery of the goods can only be fulfilled on the date of delivery if the product is available in time for all necessary handling activities before the delivery. On the side of provision you have to ensure that in case of insufficient supply the production and the purchasing has to be informed in order to produce and order the goods in time. This information about materials needed for the sales is forwarded through the demands to the disposition. Demands therefore represent the planned despatches. By passing on of demands the production is informed that goods have to be produced and the purchasing is informed that orders have to be created and sent to the vendors.

6. Demand Planning The demand planning (Material disposition) calculates the material demand through the disposition of the lists of items from the orders and compares the demand with the stocks on hand and the current orders. Based on the respective dates of orders the work plans are calculated when which material quantities at what deadline have to be ordered.

7. Planned-/Production Order For the creation of a planned-/production order you need following master data : • Material data • Work place • Work schedule • List of items

8. Work Plan / Workplace In the work plan is defined which working steps (transaction) in what order are executed in order to produce a product. Behind each transaction stands a workplace. Each transaction contains following information: • Target time (Men and / or machines) • scheduled availability (Shift model / working hours) • available workload • amount of machines • Tariff for the calculation • Information about confirmation/feedback About the information of the transactions results the scheduling of the production orders: Backwards-scheduling – the date of demand for the customer defines at what deadline the production has to be started Forward-scheduling – the start of production defines at what deadline the production has to be finished

9. List of Items In the list of items all materials are listed which are necessary in order to produce the the desired end product. Each position of list of items can either be provided externally or produced internally. External supply – the material is ordered through an order at the vendor Internal supply – the material is provided through an own production order For this material a work plan and a list of items has to exist Every material in a list of items is related to a transaction in the work plan. By scheduling the work plan it is exactly defined at what deadline which material has to be available. • single-level The end product consists throughout of bought-in parts • multi-level The end product consists of bought-in parts and of manufactured in-house parts, which also have an own list of items and initiate an own production order.

10. Planning Order The planning order is used for the despatching of orders of production disposition. The planning order is connected with the work plan and the list of items. From this connection the processing time of the order and the raw material needed is calculated with the demand planning. A planning order is only a notice of intent to produce sth. – a planning order cannot be produced. Changes in the lists of items and work plans will be considered in the course of the next demand planning in the planning order. In order to produce the planning order has to be converted in a demand order.

11. Production Order The production order is created from the planning order. The production order is fixed within the system and will not be changed in the course of the demand planning. The production order contains a copy of the work plan and the lists of items – changes can only be done directly on the production order. At first the production order is created and then released. Production order created Reservations are created, the raw material needed can be taken from the stock. Production order released The production can be started, confirmations/feedbacks can be done.

12. Demand Planning / Scheduling Time of Production from Work schedule Material supply from the list of items End-product Today End date Start date Customer-Delivery date Time of Production from Work schedule Material supply from the list of items Unfinished product Today

13. Confirmations/Feedbacks The feedback documents the state of the process of orders, transactions, sub-transactions and single capacities and therefore is an instrument of the order control. The feedback is used to determine • which quantity in a transaction was produced as yield, as junk or as rework quantity • how big the neededservices were • at which workplace the transaction was executed • who has executed the transaction

14. Material Provision/Supply • direct supply After opening the production order the needed material is booked from the stock true to quantity directly on the production order. • retrograde charging The needed material component is located in sufficient quantity at a storage location in the production. The issue posting from the stock is done fully automatically by feedback in the quantity which is lodged in the list of items.

15. Material Disposition • consumption-driven Disposition By reaching the defined minimum stock level it will be fully automatically re-ordered and also the stock re-filled to the defined maximum stock level. • demand-driven Disposition The needed material component will be ordered true to quantity due to the existing production orders.

16. Material Order For the automatical creation of an order your need following mater data: • Material data • Creditor data • Purchasing info record • Order book • Quotation (not compulsory)

17. Purchasing Info Record The purchasing info record is used as source of information for the purchasing. Here the allocation of the vendor and the material is done. The purchasing info record contains above all the following data: • the current prices and conditions • the number of the last order • the limit of tolerance for the over- retr. underdeliveries • the planned time of delivery of the vendor for the material • Vendor evaluation data

18. Order book In the order book the possible resources for the material are listed, valid within a defined period of time. In the order book you can see within which period of time a material from a certain vendor can be supplied. The order book supports the clarification of the question: which vendors can delivery a certain material at a certain period of time? Is is also used for the automatical selection of vendors for a material. The order book is an important part of the purchasing improvement and the automatisation

19. Order Requisition Request to the purchasing to provide a material or service in a certain quantity at a certain date. An order requisition contains items for which respectively a procurement type is defined. There are the following procurement types: • Normal • Subcontracting • Consignment The item contains the quantity and the date of the delivered material retr. the quantity of the rendered service. For items which are assigned for subcontracting for every delivery date the provided material components can be indicated. A BANF is an internal slip, which has no use outside the company.

20. Order Request of the purchasing organisation to a vendor to deliver at a certain deadline a certain quantity of materials retr. to render services. The order can be created directly or through implementation from a BANF. In the order each item is assigned for a factory. Every factory belongs to an entry range to which the creditor invoice is issued. The by an order followed business transactions will be documented item by item in the purchase order history.

21. Release of Communications The Communication control serves to transfer the orders to the vendors. Through the communication control the release of communications is automated. The order can be transfered as follows: • Release on paper and transfer through regular mail • Release through FAX • Release through E-mail • Transfer through EDI

22. Incoming Goods/Goods Receipt At goods receipt of ordered material with reference to the order will be executed. The orders which the purchasing create, contain all information which are necessary for the execution of the goods receipt. The goods receipt can be done directly in the „free available stock “ or in the quality test area. Material from the quality test area cannot be processed (taken) directly, but have to be transferred to the „free available stock“ after finishing the necessary tests. Material, which was order as consignment will be transferred automatically in a consignment stock. At goods receipt the slips for the accounting depts. will be fully automatically issued.

23. Invoice Receipt The logistic accounting control is done with reference to the order. The system checks if the invoiced price corresponds with the price on the order and if the delivered quantity matches the invoiced quantity. At conformity the invoiced amount will automatically be demanded for payment in the accounting dept. At non-conformity the invoice will be locked for payment and the purchasing has to clarify the differences with the vendor.

24. Delivery/Despatch The delivery to the customer is executed with reference to the customer order. The system checks if the despatched goods are available in the stock. Hereupon the packing and picking of the goods is done. With the picking also the goods issue from the stock is done simultaneously. With the goods issue posting the system is informed that the customer order is released for the invoicing.

25. Invoicing The invoicing is the last link in the logistic chain. An invoice is automatically issued to the customer. The basis of calculation is the commisioned and delivered quantity and the specified price in the customer order.

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