Intended learning outcomes: Present in detail the order as a business object. Produce an overview on terms such as customer, supplier, business partner, due date, customer order, procurement order, production order, overhead order.
The order serves as an instrument both in the legal sense and with regard to process organization, within and across companies. The following business objects are basic for the definition of an order.
A business partner of a company is a general term for a customer, receiving a good or service, or a supplier, selling or providing a good or service.
A date is a fixed point in time at which an event occurs. It is normally expressed as day and time of day ([MeWe18]).
A due date is a date on which something is scheduled, i.e., expected in the prescribed, normal, or logical course of events ([MeWe18]).
A time period is a period on the time axis. The start date is the beginning, and the end date is the end of the time period. In a logistics environment, it is mostly a completion date.
An order as a business object is rather complex. It contains all the information required for planning & control of the flow of goods.
An order as a business object consists at minimum of a business partner (in addition to the company itself) and a date and sets binding obligations with regard to:
- Who the business partners are: the customer and the supplier
- When the order is issued, or what the order validity date is
- Within what time period the order is fulfilled (order start date and order completion date or order end date — in general the order due date).
Depending on the purpose, the order, with its constituent order items or order positions, also sets binding obligations with regard to
- The items (identification, quantity, due date) that must be manufactured or procured.
- The components (identification, quantity, due date) that must be ready for use or building in.
- The work, tasks or services that must be performed and in what sequence; this also includes transport, inspection, and other similar tasks.
- Whether and how order tasks are linked to other orders.
These definitions hold for all kinds of orders, both in industry and the service sector.
The kind of order classifies an order according to its business partners.
- A customer order or a sales order is an order from an external customer (i.e., a customer that is not part of the company) to the company.
- A procurement order or a purchase order is an order from the company to an external supplier.
- A production order or a manufacturing order or a job order or a shop order is an internal order, or order from an internal customer (i.e., a customer that is part of the company) to manufacture a good.
- An overhead order or a work order is a company internal order, e.g., for R&D, for items to be manufactured (such as tools) or for services that concern the infrastructure of the company (such as equipment maintenance and repair).
Continuation in next subsection (1.2.1b).
Course section 1.2: Subsections and their intended learning outcomes
1.2 Business Objects
Intended learning outcomes: Present business-partner, and order-related business objects in detail. Explain product-related, process-related, and resource-related business objects. Produce an overview on rough-cut business objects.
1.2.1 Customer, Supplier: Business-Partner Objects; Order, Customer Order, Procurement Order, Production Order, Overhead Order: Order-Related Business Objects
Intended learning outcomes: Present in detail the order as a business object. Produce an overview on terms such as customer, supplier, business partner, due date, customer order, procurement order, production order, overhead order.
1.2.1b Order Promising, Order Confirmation, Order Status, Order Header, Order Main Section, Order Footer: Order-Related Business Objects
Intended learning outcomes: Produce an overview on terms such as order promising, order confirmation, order status. Differentiate between order positions for items (to be) delivered and labor (to be) performed.
1.2.2 Item, Component, End Product, Assembly, Raw Material, Spare Part, Item Family: Product-Related Objects
Intended learning outcomes: Produce an overview on business objects such as item, specializations thereof (particularly part and component), spare part and item family.
1.2.2b Product Structure, Bill of Material, Product Family, Product Variant, Commonality: Product-Related Objects
Intended learning outcomes: Explain the product structure and the bill of material. Differentiate between a convergent and a divergent product structure. Describe the concepts of product family, product variant, and commonality.
1.2.3 Operation, Operation Time, Setup, Run Time, Routing Sheet, Critical Path, Interoperation Time, Production Lead Time: Process-Related Business Objects
Intended learning outcomes: Present in detail business objects such as operation, setup and run time. Explain the routing sheet, the critical path, interoperation time and the production lead time.
1.2.3b Production Structure, Product Module, Cumulative Lead Time, Process Plan, Lead-Time Offset: Process-Related Business Objects
Intended learning outcomes: Describe the production structure, the product module, and the cumulative lead time. Disclose the process plan. and the lead-time offset.
1.2.4 Employees, Facilities, Workstation, Production Equipment, Work Center, Capacity, Load, Standard Load, Actual Load: Resource-Related Business Objects
Intended learning outcomes: Produce an overview on terms such as employees, facilities, workstations, production equipment, work center, capacity, load, work-center load. Differentiate between standard load and actual load
1.2.4b Work Center Load, Load Profile, Capacity Utilization, Work Center Efficiency, Rated Capacity: Resource-Related Business Objects
Explain the work-center load and the load profile of a work center. Disclose capacity utilization and work center efficiency. Differentiate between rated capacity and theoretical capacity.
1.2.5 Rough-Cut Product Structure, Rough-Cut Work Center, Rough-Cut Operation, Rough-Cut Process Plan: Rough-Cut Business Objects
Intended learning outcomes: Identify reasons and principles for defining rough-cut business objects. Disclose the rough-cut product structure, the rough-cut work center, the rough-cut operation, and the rough-cut process plan. Explain a way to derive a rough-cut process plan from a detailed process plan.
1.2.5b Bill of Resources, Product Load Profile: Rough-Cut Business Objects
Intended learning outcomes: Describe the bill of resources. Explain a way to establish a product load profile from a rough-cut process plan.
