Func%onal architecture of the industrial firm
Data flow chart only shows informa%on flow, not the physical flow of products
1) Primary func%ons:
•
-
R&D and Product Development - UNIT 2:
CAD: determine which components/materials etc. we need to produce -> Result: BOM which is part
of the master data
CAE: in the past prototypes needed to be tested in the reality but now due to CAE a digital twin can
be created and tested virtually (less costly, faster and more efficient)
CAP: how are we manufacturing, describes the manufacturing steps involved in reaching the final
product and how we can structure the producFon -> results in the task schedule
(if you are a retailer you don't need R&D, you only need to buy the products of a vendor)
•
-
Marke%ng and Sales - UNIT 3:
Customer requires something -› sales offer
Inquiry: Normally via phone website email...
Reminders: if customer does not respond to the sales offer
Sales order is connected with CAD/CAE > we need to make sure that the we have the product that
the customer wants
•
-
Warehousing - UNIT 5
What do we have in stock? -> inventory works indirectly
•
-
Produc%on - UNIT 6:
Primary requirements planning goes to external procurement
More informaFon regarding primary requirements planning see X
Order release -> manufacturing release
Sales planning -> on the long run and therefore includes assump%ons -> you need to know
approximately how many products you need to manufacture and how many products you are going
to sell
Net requirements: What do we need to buy purchase from our suppliers?
Gross requirements: What do we have in the warehouse
Lead %me: Time it requires unFl something gets delivered
AUer everything that regards to primary requirements planning (involves warehousing and
procurement) -> planning -> disposiFon -> hand over to shop floor scheduling -> releasing the order >
CAM
CAM -> provides feedback to monitor progress + wages + material movements (interacFng with
warehousing because we need to know what is sFll available)
Before product is finished we add it to another database (nearly finished products) which is
connected to shipment because they need to start now to arrange/organize shipment
•
-
Procurement - UNIT 4:
External procurement: simply comparing into from warehousing to determine net requirements ->
what is missing? -> will be scheduled for the order to the vendor
Vendor sends whatever we have ordered » delivery note -> tesFng -> goods receipts
then we can add it to our level of inventor
Goods receipt slips: informaFon on the physical product that we have ordered that
comes in
-> Primary requirements/order release (ProducFon) -> Procurement -> Warehousing (adding
inventory)
-> customer order gets transferred into manufacturing order -> we need to have everything readv
•
•
-
Shipping - UNIT 7:
Shipping logis%cs: how do my products get to the customer? (ship, train...?)
Delivery Notes: customer receives informaFon that the shipment gets prepared and when the
company plans to send it out -> increases customer experience
Shipping no%ces: send to the customer
Invoicing goes back to the customer because then he/she knows that he she has to pay something
(post-invoicing)
ConnecFon to customer services due to retours
Customer service - UNIT 8:
Kicks in a^er the product is delivered
Works with problems or ques%ons regarding the product
Find solu%ons: maybe repair something -> leads to acknowledgement -> connecFon to CAQ
Interacts directly with order confirmaFon because every customer service is also an order that needs
to be confirmed towards the customer
2) Secondary func%ons:
•
-
Accoun%ng - UNIT 9:
InformaFon on how we do cos%ng is go\en from produc%on -> wage data, ... -> goes into financial
accounFng
Cost and result accoun%ng: aUer we have delivered, we check whether we have been cost efficient
-> we will be owing money to our suppliers (creditors) but addiFonally customers that ordered from
us owe us money (debtors!
Pre cos%ng: the prices we have considered in our offer
Once we have manufactured and we have all the data and know our creditors, debtors, vendors and
wages, we can calculate the final price
•
-
Finance - UNIT 9
Condensed accoun%ng records = something we can use for accounFng in the future
-> every payment has been listed -> might change from pre to post-invoicing
•
-
Human Resources - UNIT 9:
Employees want to have a paycheck at the end of the month -> wage data -> then take into respect
taxes etc. to reach the final payment which then leads to payoff