Business Process Analysis Case Study

Transcription

1 Business Process Analysis Case Study This case study introduces the Global Bike enterprise with focus on its organizational structure and business processes. For this purpose, a comprehensive business process model was developed and visualized using ARIS Business Designer for SAP by Software AG. Products ARIS Global Bike Level Beginner Focus Organizational Structure Business Processes Data Models Authors Hans-Jürgen Scheruhn Stefan Weidner Version 3.1 Last Update July 2017 MOTIVATION This case study introduces GBI s business process model using the ARIS notation (Architecture of Integrated Information Systems). Beside organizational diagrams for the Global Bike companies in Germany and the US, Global Bike s core business processes from the case studies are visualized using eepc and BPMN models. The enterprise model is enhanced with additional diagrams such as a business vocabulary, document flow diagrams as well as various mask diagrams and ERM. To improve navigation between the different diagrams of the enterprise model they have been categorized in 6 different layers following open LEADing Practice standards of the Object Management Group (OMG) as well as arranged in 4 levels of abstraction. PREREQUISITES None NOTES This case study uses the Global Bike data set, which has exclusively been created for SAP UA global curricula. SAP SE / SAP UCC Magdeburg

2 Introduction Learning objective Get familiar with Global Bike s enterprise structure. Time 10 min Scenario As a new Global Bike employee you would like to get familiar with Global Bike s enterprise structure. Does Global Bike operate regionally, nationally, or globally? Which locations are established? The Global Bike Group, in short GBI, is composed of Global Bike Inc., in the US and the German subsidiary Global Bike Germany GmbH. In North America, the three locations Dallas, San Diego and Miami are assigned to the (East and West) sales regions. In Germany, Hamburg is established in the North and Heidelberg in the South. The figure shown below shows the enterprise structure. Enterprise structure In order to visualize its organizational and process structures Global Bike has developed a comprehensive enterprise model based on the ARIS and LEAD notations. It consists of the 6 layers and respective information models assigned to them as visualized below: - Value Layer: As-Is situation - Competency Layer: Organization charts, Business vocabulary, Finance models - Service Layer: Function trees - Process Layer: Business process model (BPMN models) - Application Layer: Value Chain (VC), extended Event-driven process chains (eepc), Screen diagrams - Data Layer: System organization charts, Entity relationship models (ERM), Document flows, Attribute assignment diagrams For ease of orientation, all of the diagrams and models have been assigned to one particular cell of the LEAD matrix shown below which is displayed in the upper left corner of each diagram. SAP SE / SAP UCC Magdeburg Page 2

3 To start processing this case study, please open the following link: SAP SE / SAP UCC Magdeburg Page 3

4 Step 1: Organizational Structure Task Get familiar with Global Bike s organizational structure. Time 10 min Short Description Use the organizational chart to get familiar with Global Bike s organizational structure. In this task you will get familiar with the organizational structure of the US company Global Bike Inc. You will learn the model s four hierarchy levels that correspond to the LEAD architecture: 1. Core level, 2. Overview level, 3. Detail level and 4. Document level. In the following or upcoming chapters, each layer will be explained in further detail. After opening the link given in the Introduction task, on the initial ARIS Publisher page, choose the first profile in the list GBI AS_IS_Status.as-is (OPM-Filter). Then, select English (United States) for language and click on OK. GBI_AS_IS_Status.as-is (OPM-Filter) English (United States) On the navigation bar, select Contents. In the navigation tree on the left side explode node GBI as-it-status which contains all models illustrating Global Bike s as-is status. Note The models located in sub-folder GBI-Repository on base SAP Solution Manager serve as an SAP-based model repository and contain SAP applications as value-added chains (VAC) and extended event-driven process chains (eepc). Please use the following menu path in order to display GBI s US organizational structure: GBI as-is-status GBI-Curriculum Central Models 1. Core level GBI Organizational chart USA [Organizational chart] SAP Solution Manager Menu path SAP SE / SAP UCC Magdeburg Page 4

5 Now, you see the organizational structure of GBI US (Competency layer). With Co-CEOs John Davis and Peter Schwarz, the Global Bike Group is run by a dual leadership distributed between the two geographic regions US and European Union (EU). Each of these regions has its own President. Co-CEO President Competency layer Core business level Furthermore, the highest level (Core level) includes individual organizational units. There are five main US departments: Administration and Financials, Marketing and Sales, Operations, IT and Human Resources. Each of these departments has a general manager who has additional employees under their management. If you look at Department Operations and follow its hierarchical structure down to the next level (Overview level) you see that there are three plant managers under the Vice President (Operations) authority. One level below, in the Detail level, Plant Manager Hiro Abe directs Production supervisor Jun Lee and Warehouse Supervisor Ricardo Robles. Those are responsible for additional nine or three positions. Core level Overview level Detail level SAP SE / SAP UCC Magdeburg Page 5

6 Competency layer Overview level Detail level Should a person independent of his/her position act in a specific role, he/she is assigned to a yellow rectangle with a dotted line. Production supervisor Jun Lee, for example, is acting as a Production planner. This role consists of specific tasks which will be detailed later. From the examples above you have learned all important elements of an organizational chart. In the following list, you find general definitions for all four elements. An organizational unit describes an integral unit of a given enterprise which managers and further positions can be assigned to. Positions are responsibilities explicitly defined within an organization. Each position defines individual requirements. Persons are employees with a relationship to the company and fill positions assigned to a respective organizational unit. Roles combine similar tasks within the company and may be assigned to several persons. Another example for roles in the Global Bike enterprise can be illustrated by the sales employees Elisabeth Harmon and Gabriela Montes in the Marketing Department. Both are assigned to the roles Customer agent und Contact agent. Organizational unit Position Person Role SAP SE / SAP UCC Magdeburg Page 6

7 Step 2: Object Information Task Display additional information for different model objects. Time 10 min Short Description Use the enterprise model to display detailed information for the employee Elisabeth Harmon. For each of the objects introduced in the previous task (organizational unit, position, person, and role) you may display detailed information by simply clicking on the desired object. If you look at the right hand side of the window you will find a table with object information. Elisabeth Harmon is a person listed in the GBI Organizational chart USA only. She fills the position Sales person 1 and acts as Customer agent and Contact agent roles. Now, if you select the role Customer agent (by clicking on the object in the organizational chart or by clicking on the object type under Connected to in the Object screen on the right) you will see, below Relevant for, that the GBI Organization chart DE is listed as well. This is because the role Customer agent exists in both the US and Germany. In addition to the employees you already know (Elisabeth Harmon, Gabriela Montes and David Lopez), you find Chris Oderwald and Dennis Spies. Select the GBI Organization chart DE which displays the organizational diagram for Global Bike Germany GmbH. The role Customer agent should already be selected and centered in your screen. Left to this element you find the persons Chris Oderwald and Dennis Spies who are filling the position Internet Sales Person 1 and 2 in the German company. For all objects, you can do an extensive or comprehensive search using the Search bar that is located in the upper middle part of the screen (see snapshot below). SAP SE / SAP UCC Magdeburg Page 7

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9 Step 3: Business Processes Task View the current status of GBI business processes. Description Use the ARIS model to get familiar with the GBI business processes. Time 15 min Besides the central (cross-module) models you find the module-specific SAP models in the menu folders below: Controlling (CO) Human Capital Management (HCM) Materials Management (MM) Production Planning & Execution (PP) Sales and Distribution (SD) Go back to the folder as-is-status to have an overview of all functional areas in Global Bike that are already modeled. GBI as-is-status GBI-Curriculum Menu path Choose the folder Sales and Distribution (SD). Under Core level you find all SAP SD processes. In the sub-item Overview level these processes are brought into chronological order in a business process chain. Core level Overview level The sales process is divided into three sub-processes. In marketing, master data is entered and/or changed. Then, an offer is created with reference to the quotation received from the customer. Upon confirmation, the offer is converted into a sales order. Subsequently, the order is prepped for SAP SE / SAP UCC Magdeburg Page 9

10 delivery to the customer. This is done at the operations department located in Dallas. Delivery plans will be set as outlined in the sales order. Finally, the process ends in the financial department where the customer s payment is received and entered in the system. Process layer Overview level In order to display the process more closely, you can view the first process steps by clicking on the hierarchy ARIS symbol and select Create new Customer (EPC). As a result you see the appropriate (extended) eventdriven process chain (eepc), which is located at the application layer under Detailed level. Detailed level SAP SE / SAP UCC Magdeburg Page 10

11 Application layer Detail level Every single EPC has a begin and an end event depicted by a pink colored hexagon. Functions, on the other hand, are visualized as rounded rectangles (green or white). In this given case, the event new customer to be created is the trigger for the function create customer and is fulfilled with the event customer created. Events and functions are connected by arrows. In contrast to a simple EPC, an extended EPC (eepc) additionally depicts organizational units (see Chapter Organizational Structure), data objects (blue rectangles) and input/output media (green rectangles). Through the assignment to the modeling objects, responsibilities as well as the input and output of data is symbolized. Finally process interfaces (rounded rectangle merged with hexagon) are used to refer to previous or following process steps. EPC eepc SAP SE / SAP UCC Magdeburg Page 11

12 Note: Please note that in this case study all organizational units refer to a specific instance like Plant Miami MI00 instead of using the type (Plant). Although contrary to common model practice, this representation is transparent and efficient; it is to better understand this Business Process Analysis case study. Instance vs. Type SAP SE / SAP UCC Magdeburg Page 12

13 Step 4: eepc Organizational Units Task Get familiar with the organizational units in the eepc. Time 10 min Description Use the ARIS model to identify all organizational units relevant for process step Create new customer. This example illustrates the creation process of a customer master record being triggered by the need for a new customer (starting event). In the following process step, a staff member who is specifically appointed for this task needs to specify in the SAP ERP system all relevant data such as organizational units (company code, sales organization, distribution channel, division and plant) and other characteristics (attributes) for this specific customer. Application layer Detail level SAP SE / SAP UCC Magdeburg Page 13

14 Based on the company overview in the introduction chapter, some SAP terms were added to the ARIS model, for example client or plant. This resulted in specific Global Bike organizational charts. You find the chart for Sales and Distribution by single-clinking on any system organizational unit in the eepc and selecting organizational chart System Organization Sales and Distribution in the object information details on the right. Data layer Detail level When entering a master data record in the ERP system a region and an organization unit needs to be specified. For global enterprises, it is important to differentiate between customers to be created in Germany or in the US and respectively it is important where the order is placed. Special consideration must be, in particular, be given to different currencies, laws, and taxes. This is done by selecting a given company code which is the smallest financially independent unit within an SAP ERP system. For instance, a customer in the US needs to be created for company code US00. Then, the question is whether sales organization US West or US East is serving the customer and which plant (San Diego, Dallas, Miami) is responsible for delivery. Besides the distribution channel (Internet, Wholesale), the division must be determined. Within GBI, divisions can be bicycles and accessories (e.g. kneepads or T-shirts). Company Code Sales organization Plant Distribution channel Division According to the eepc, the function Create Customer can be processed by the employee with the position East Representative Miami. Navigate back to the eepc Create new customer and click on the object East Representative Miami. In the object details box on the right side, in the section Relevant for please select the organizational chart GBI Organization chart USA. In the organizational structure of US SAP SE / SAP UCC Magdeburg Page 14

15 subsidiary you can see that David Lopez is responsible for the creation of new customers in the US. To go back to the eepc, you can click on East Representative Miami again and choose EPC Create new customer on the right. Competency layer Detail level SAP SE / SAP UCC Magdeburg Page 15

16 Step 5: eepc Functions (SAP Screens) Task Get familiar with the screens in an eepc. Description Use the ARIS model to display the screen used in eepc Create new customer. Time 10 min The East Representative Miami has collected all necessary information and is about to enter it in an SAP ERP screen to create a new customer master record. Application layer Detail level The customer data is entered into the SAP system by means of an input mask in transaction XD01 Customer create which is represented by a green rectangle. To display details, click on the ARIS icon next to this object. SAP SE / SAP UCC Magdeburg Page 16

17 For general customer data, the SAP system requires information such as name, address, and postal code. Such attributes are either descriptive in nature and, for the most cases, can be entered optionally (simple ellipses) or foreign keys (double border and two vertical bars). The latter enables references to other existing data objects and is usually realized with dropdown menus. Descriptive attribute vs. foreign key Application layer Document level To return to the eepc, click on the mask icon (green rectangle) again and then in the info box to the right choose the EPC Create a new customer. The end event Customer created is reached. SAP SE / SAP UCC Magdeburg Page 17

18 Step 6: eepc Data Task Get familiar with data objects in an eepc. Time 5 min Description Use the ARIS model to display the data object used in eepc Create new customer. Now that the East Representative Miami has entered and saved all relevant data of the new customer in the SAP ERP system, the customer master record is stored in the system. If an order is placed, now or in the future, the customer does not need to provide the same information again, as they are stored in the system and are accessible to all departments. Application layer Detail level After selecting the object customer master in the eepc, the object details will be displayed on the right hand side. In the Relevant for section, please choose the Technical terms model Business Vocabulary / Objects. This SAP SE / SAP UCC Magdeburg Page 18

19 model lists synonyms for the term customer master used in the GBI context. Take a moment to familiarize yourself with the terms. Competency layer Detail level Click on the data object icon (blue rectangle) again. Then, on the right side under Relevant for beside eepcs you will find also instances of eerms. Here, please choose the eerm Data model Integration SD FI. eerm Data layer Detail level This diagram is a simple example of an ERM - Entity Relationship Model by Chen. Entities such as organizational data, master data, or transactional data relate to each other. With help of ERMs these relationships describe, for example, that a customer can create several (n) customer orders or none (0), if it is yet a prospective business partner. A sales order only exists for exactly one customer. This is called a 1-to-n relationship. Furthermore, a sales order entails one or more outbound deliveries. The other way around, an SAP system can merge deliveries for one or more sales orders. This is then called an m-to-n relationship. Single-click on the blue data object Customer Master and select the eerm GBI Data model on the right hand side. SAP SE / SAP UCC Magdeburg Page 19

20 Data layer Detail level Now you can see an overview of different functional areas in Global Bike. For every department relevant master and transactional data objects are listed. As already explained, these data records in the SAP system are available to all departments with respective authorizations. The customer master record that was created in SD (Sales and Distribution) by the East-Representative Miami is also relevant for the FI (Financial Accounting) department because specific customer details are needed for invoicing, for example. SAP SE / SAP UCC Magdeburg Page 20

21 Step 7: eepc Document Flow Task Get familiar with the document flow in Sales and Distribution. Description Use the ARIS model to follow the document flow in SD. Time 10 min As soon as transactions are executed in SAP ERP, the system automatically creates corresponding documents, e.g. a customer quotation or an invoice. The flow of these documents can be represented graphically. Go back to the SD business process chain: GBI as-is-status GBI-Curriculum Sales and Distribution (SD) 2. Overview Level Sales and Distribution (SD) [BPMN process diagram (BPMN 1.x)] Document flow Menu path Process layer Overview level Have a closer look at the process Create Customer Inquiry. It belongs to the Sales area and can be opened by clicking on the ARIS icon and selecting the EPC diagram. Create Sales Order SAP SE / SAP UCC Magdeburg Page 21

22 Application layer Detail level In addition to the modeling elements mentioned before, this eepc features two information carrier objects. Click on the lower one (Customer Inquiry). In the object information box under Relevant for, you find the information carrier diagram GBI Document Flow. Please open the diagram. GBI document flow Data Layer Detail level At the very top, you find the customer s information system and the GBI sales department right below. When a customer makes an inquiry e.g. requesting sales price for 5 Deluxe Touring Bikes and 2 Professional Touring Bikes an inquiry document is created in the GBI system. Its content is identical to the order inquiry (purchase order number) in the SAP SE / SAP UCC Magdeburg Page 22

23 customer system, but needs to be created in the GBI system manually (see below). The resulting offer and the sales order will be deposited as well by the SAP system. A notification in the GBI-System is created. This notification corresponds to the order request (requisition number) in the customer system, but must be entered manually in GBI-System. Inquiry in SAP ERP GBI system As you can see in the document flow, the quotation and the sales order are created with reference to the initial inquiry in the SAP system as well. In the diagram, please select the Sales order object. On the right side under Relevant for click on EPC Create Sales Order Referencing a Quotation. Sales Order SAP SE / SAP UCC Magdeburg Page 23

24 Application layer Detail level Using the GBI document flow you were able to navigate from one process step to another effectively because both the steps and the documents are built on each other and interlinked. After you have learned more about the connection between documents and processes, we now focus on information that such documents contain. Thus, click on the ARIS icon of the information carrier Sales order (white element). You now see three sections of a sales order document (header, line items, scheduled line items) in an SAP ERP system. SAP SE / SAP UCC Magdeburg Page 24

25 Data Layer Document Level Header A primary key, e.g. Sales order number, uniquely identifies a single data record. It can be specifies by the user on initial creation or the system automatically selects the next free number from a predefined number range. A foreign key references to an existing primary key (of another object; here: customer). The primary key of the reference onject can be found in the object informations on the right, e.g. the customer ID in the SAP GBI system. A descriptive attribute allows free data input, e.g. a date or an amount. Primary key Foreign key Descriptive attribute The header includes general data relevant for the whole document. Which customer placed the order? When has the order been made? What is the purchase order number in the customer system? For comparison find the SAP screen with exemplary sales document header data below. Data Layer Document level SAP SE / SAP UCC Magdeburg Page 25

26 In the second section, (Item detail tab in the SAP system) all sales order line items are listed separately with their respective material number and order quantity. Line items As shown in the screenshot below sales order line items are represented in the ARIS model similarly. In the last step (Schedule lines tab in the SAP system) confirmed quantities as well as possible delivery dates are displayed. Scheduled line items In ARIS scheduled lines are modeled as shown below. SAP SE / SAP UCC Magdeburg Page 26

27 Step 8: SD FI Integration Task Get familiar with the accounting model (SD FI integration). Time 10 min Description Use the ARIS model to understand the integration between Sales and Distribution (SD) and Finance (FI). Go back to the GBI Document Flow: GBI as-is-status GBI-Curriculum Central Models 3.Detailed level GBI Document Flow [Information carrier diagram] Menu path Data layer Detail level In the GBI case study for the sales module, a quotation is created with reference to a customer inquiry. Later on, the customer accepts the offer and a sales order is generated from the inquiry. The sales order process can also be triggered by an external sales order without previous creation of a quotation. Before the sales order is saved, the system checks availability of material on stock for the desired amount on the requested delivery date. If the availability check is positive, the sales order can be saved and released. The relevant material amount is reserved, packed and shipped. For each successful step a document is created in the system. When the goods leave the company, there is a financial effect on the G/L accounts, as the stock value of the respective material account is decreased. At the same time, the Accounts Receivable sub ledger account of the customer who requested the material is debited. In order to illustrate this correlation, click on Good Issue and choose (in the object information) the information carrier diagram FI - SD Integration Point. SD FI integration SAP SE / SAP UCC Magdeburg Page 27

28 Competancy layer Detail level A goods issue document records the decreasing of material stock by debiting an inventory G/L account. The customer invoice debits a customer sub-ledger account which is finally reconciled against the trade account receivables in the general ledger. The customer payment balances the debtor bill and money gets transferred to the bank account. SAP SE / SAP UCC Magdeburg Page 28

29 Challenge 1: Global Bike Germany GmbH Objective Understand the structure of Global Bike Germany GmbH. Time 10 min Motivation After you have made yourself familiar with the GBI company in the US you would like to understand the German GBI company in detail. Scenario Look at the departments of Global Bike Germany GmbH in the organization chart and note down their titles and their division leader. Finally, check if number and titles of the departments match Global Bike Inc. in the US. Note As the challenges are based on the Business Process Analysis case study you may use all previous tasks as a reference. However, it is recommended to solve the challenges without extra help in order to test your acquired skills. SAP SE / SAP UCC Magdeburg Page 29

30 Challenge 2: Global GBI Roles Objective Understand positions and roles of the marketing department. Time 10 min Scenario Look at the marketing department of Global Bike Group in both organizational charts (US & Germany). Whom are the roles Customer Inquiry Processing and Customer Order Processing assigned to? Customer Inquiry Processing: Customer Order Processing: SAP SE / SAP UCC Magdeburg Page 30

31 Challenge 3: Personnel Structure Objective Use the object information to navigate through organizational chart USA. Time 10 min. Scenario How would you get from Paul Hansen (President US) to Danielle Cohen (Chief Financial Officer) only by using the object information? SAP SE / SAP UCC Magdeburg Page 31

32 Challenge 4: Organizational Units Objective Understand organizational units in eepcs. Time 10 min Scenario In the ARIS menu, choose the BPMN model Sales and Distribution Process Business (SD). Open the eepc for the second process step (Create Contact Person for Customer). Which job (position) in the US processes this step? Which person is assigned to this position in GBI US? In which role does this employee act? Which other employee is this role assigned to in the Global Bike group? SAP SE / SAP UCC Magdeburg Page 32

33 Challenge 5: SAP Screens Objective Understand the usage of SAP screens in eepcs. Time 10 min Scenario In eepc Create Contact Person for Customer, which transaction and which screens are used in the SAP ERP system? Which information relates to primary keys, foreign keys and descriptive attributes? SAP SE / SAP UCC Magdeburg Page 33

34 Challenge 6: Accounting Model Objective Understand the accounting model MM FI. Time 20 min Scenario Open the accounting model SD FI as shown in step 8 of this case study. Click on Bank Credit and then, using the object information on the right, navigate to the accounting model FI MM Integration Point. Explain the differences of both models based on their underlying business processes (procurement vs. sales). SAP SE / SAP UCC Magdeburg Page 34

35 Challenge 7: Business Vocabulary Objective Find synonyms of data objects. Time 10 min Scenario Open the Technical terms model Business Vocabulary / Objects as described in step 6 of this case study. Locate the objects Vendor and Work Center and list their synonyms. SAP SE / SAP UCC Magdeburg Page 35

36 Challenge 8: Document Flow Objective Have a closer look at the document flow in GBI. Time 15 min Scenario Which documents are generated by external partners and in which eepcs are they used as input? Use the accounting models to check which of these documents are relevant for financial accounting. SAP SE / SAP UCC Magdeburg Page 36

37 Challenge 9: SAP Screens Objective Have a closer look at SAP screens in eepc Create Customer Order Referencing a Quotation on the detail level. Time 10 min Scenario Which primary key is generated for a customer order? Which and how many foreign keys are used in the respective SAP screens and in which screens are they originally created? SAP SE / SAP UCC Magdeburg Page 37

38 Challenge 10: GBI Data Model MM/FI Objective Understand the GBI data model Integration MM FI. Scenario How does a Vendor relate to a Purchase Order? Time 10 min SAP SE / SAP UCC Magdeburg Page 38

39 Challenge 11: Organizational Units in SAP ERP Objective Explain the organizational units in SAP ERP used in organizational chart Time 10 min System Organization Sales and Distribution on the detail level. Select one plant after another and explore their object information. Scenario Which plants are used in the GBI processes presented in this ARIS model? SAP SE / SAP UCC Magdeburg Page 39

40 Log Out Note After you are done working with the ARIS model please ensure to click on Log out. SAP SE / SAP UCC Magdeburg Page 40