MS%20PowerPoint%20Standard%20(Folie)

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The Logistic Chain
Franz Birsel
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Definition of Item
Procedure of the logistic Chain Definition of
items
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Process
The logistic chain contains the process from the
customer order to the delivery.
Customer order
no
Order
Material- component
no
available
Demand planning
available
Vendor
yes
yes
Stock
Production order
Stock
Incoming goods
Invoice
Delivery
Accounting control
Invoice
Accounting
Customer
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Customer Order Master Data
For the creation of a customer order you need the
following master data

• Material Data
• Debitor Data

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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.
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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.
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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

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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

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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.
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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.
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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.
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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
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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 needed services were
• at which workplace the transaction was executed
  
• who has executed the transaction

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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.
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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.
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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)

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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

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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
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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.

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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.
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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

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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.
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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.
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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.
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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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Questions
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