Handbook Integral Logistics Management: Operations and Supply Chain Management Within and Across Companies

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This well-established handbook presents integral logistics management as the management of the flow of goods, data and control along the comprehensive life cycle of products and services in both classical and service industries. It offers a well-founded overview for managers, practitioners and advanced users. For the 6th edition, the content has been tightened and the following topics have been extended:

  • the design of integrated offers of intangibles and tangibles goods in industrial product-service systems
  • the integrated design of product, distribution, retail, service, and transportation networks for global location planning
  • new examples of frameworks, standards and indices to practically demonstrate the social and environmental performance in sustainable in supply chains.

Other new sections deal with:

  • the benefit of different types of cooperation between the R&D and engineering departments in companies with an “engineer-to-order” (ETO) production environment
  • the suitability of scenario planning for long-term demand forecasting, if influence factors of the surrounding systems play a role in an unknown manner.

Furthermore, each section now contains at the beginning its intended learning outcomes (ILO).

The material covers most of the key terms in the five APICS CPIM (Certified in Production and Inventory) modules as well as in the ASCM / APICS CSCP (Certified Supply Chain Professional) program.

Author(s): Paul Schönsleben
Edition: 6
Publisher: Springer
Year: 2022

Language: English
Pages: 900
City: Berlin

Foreword to the Sixth Edition
Foreword to the First Edition
Acknowledgments (Third to Sixth Editions)
Acknowledgments (First and Second Editions)
Overview of Contents
Contents
Detailed Contents
Introduction
Structure of the Book
Notes to the Reader and Additional Teaching Material
1 Logistics, Operations, and Supply Chain Management
1.1 Basic Concepts, Issues, and Challenges
1.1.1 Important Terms of the Working Environment and of Business Life
1.1.2 Service, and Service Orientation in the Classical Industry
1.1.3 Service Industry, and Product Orientation in the Service Industry
1.1.4 The Industrial Product-Service System
1.1.5 The Product Life Cycle, and Logistics and Operations Management
1.1.6 The Synchronization of Supply and Demand Using Inventories
1.1.7 The Supply Chain and the Extended Enterprise, Supply Chain Management and Integral Logistics Management
1.1.8 The Role of Planning and Control and the SCOR Model
1.2 Business Objects
1.2.1 Business-Partner, and Order-Related Business Objects
1.2.2 Product-Related Business Objects
1.2.3 Process-Related Business Objects
1.2.4 Resource-Related Business Objects
1.2.5 Rough-Cut Business Objects
1.3 Strategies in the Entrepreneurial Context
1.3.1 Entrepreneurial Objectives in a Company and in a Supply Chain
1.3.2 Resolving Conflicting Entrepreneurial Objectives
1.3.3 Customer Order Penetration Point (OPP) and Coordination with Product and Process Design
1.3.4 Target Area Flexibility: Investments in Enabling Organizations, Processes, and Basic Technologies
1.3.5 Enabling Technologies Toward Personalized Production
1.4 Performance Measurement
1.4.1 The Basics of the Measurement, Meaning, and Practical Applicability of Logistics Performance Indicators
1.4.2 Performance Indicators in the Target Area of Quality
1.4.3 Performance Indicators in the Target Area of Costs
1.4.4 Performance Indicators in the Target Area of Delivery
1.4.5 Performance Indicators in the Target Area of Flexibility
1.4.6 Performance Indicators of the Primary Entrepreneurial Objective
1.5 Summary
1.6 Keywords
1.7 Scenarios and Exercises
1.7.1 Rough-Cut Business Objects
1.7.2 Improvements in Meeting Entrepreneurial Objectives
1.7.3 Entrepreneurial Objectives and ROI
1.7.4 Assessing the Economic Value Added (EVA) of Supply Chain Initiatives
1.8 References
2 Supply Chain Design: Business Relations and Risks
2.1 Ownership and Trade in a Supply Chain
2.1.1 The Make-or-Buy Decision — Transaction Costs as the Basis of Forming Companies
2.1.2 Global Trading — Value-Content Requirements and Tariff-Orientation in a Supply Chain
2.1.3 Total Cost of Ownership in a Global Supply Chain
2.2 Strategic Procurement
2.2.1 Overview on Strategic Procurement
2.2.2 Traditional Market-Oriented Relationship Compared with CustomerSupplier Partnership
2.2.3 Strategic Procurement Portfolios
2.2.4 Strategic Selection of Suppliers
2.2.5 Basics of Supplier Relationship Management and E-Procurement Solutions
2.3 Designing a Partnership Relationship
2.3.1 Target Area Strategies for Intensive Cooperation
2.3.2 The Advanced Logistics Partnership (ALP) Model, a Framework for Implementation of Intensive Cooperation in the Supply Chain
2.3.3 Top Management Level: Building Trust and Establishing Principal Relationships
2.3.4 Middle Management Level: Working Out Collaborative Processes in the Supply Chain
2.3.5 Operational Management Level: Collaborative Order Processing — Avoiding the Bullwhip Effect
2.3.6 Example Practical Application
2.3.7 The Virtual Enterprise and Other Forms of Coordination among Companies
2.4 Supply Chain Risk Management
2.4.1 Identification of Supply Chain Risks
2.4.2 Assessment of Supply Chain Risks
2.4.3 Handling Supply Chain Risks
2.5 Summary
2.6 Keywords
2.7 Scenarios and Exercises
2.7.1 Advanced Logistics Partnership (ALP)
2.7.2 Evaluate Company Relationships in the Supply Chain
2.8 References
3 Supply Chain Design: Location Planning and Sustainability
3.1 Design Options for Integrated Production, Distribution, and Service Networks
3.1.1 Design Options for Production Networks
3.1.2 Design Options for Distribution Networks
3.1.3 Network Structure for Decentralized Distribution, and Design Options for Retail Networks
3.1.4 Design Options for Service Networks
3.1.5 Design Options for Transportation Networks
3.1.6 Integration of the Portfolios of the Partial Networks
3.2 Location Selection and Location Configuration
3.2.1 Location Selection Using Qualitative Methods and Factor Rating
3.2.2 Location Selection and Location Configuration with Linear Programming
3.3 Sustainable Supply Chains
3.3.1 The Changing Concept of Sustainability with Reference to the Triple Bottom Line
3.3.2 Economic Opportunities for Social Commitment
3.3.3 Economic Opportunities for Environmental Commitment
3.3.4 Energy Management Concepts and Measures for Improved Environmental Performance
3.3.5 The Measurement of the Environmental Performance
3.3.6 Social and Environmental Dimensions in Industrial Practice
3.4 Summary
3.5 Keywords
3.6 Scenarios and Exercises
3.6.1 Location Configuration with Linear Programming
3.7 References
4 Process Analysis and Concepts for Planning & Control
4.1 Elements of Business Process Management
4.1.1 Terms in Business Process Engineering
4.1.2 Order Management and Graphic Presentation of Logistics Processes
4.2 Push and Pull in the Design of Business Processes
4.2.1 Pull Logistics
4.2.2 Push Logistics
4.2.3 The Temporal Synchronization between Use and Manufacturing with Inventory Control Processes
4.3 Important Techniques of Analysis in Business Process Engineering
4.3.1 Organization-Oriented Process Chart
4.3.2 Manufacturing and Service Processes in the Company-Internal and Transcorporate Layout
4.3.3 Detailed Analysis and Time Study of Processes
4.4 Characteristic Features Relevant to Planning & Control in Supply Chains
4.4.1 Principle and Validity of Characteristics in Planning & Control
4.4.2 Six Features in Reference to Customer, and Item or Product or Product Family
4.4.3 Five Features in Reference to Logistics and Production Resources
4.4.4 Seven Features in Reference to the Production or Procurement Order
4.4.5 Important Relationships between Characteristic Features
4.4.6 Features of Transcorporate Logistics in Supply Chains
4.5 Branches, Production Types, and Concepts for Planning & Control
4.5.1 Branches of Industry in Dependency upon Characteristic Features
4.5.2 Production Types
4.5.3 Concepts for Planning & Control
4.5.4 Selecting an Appropriate Branch Model, Production Type, and Concept for Planning & Control
4.6 Summary
4.7 Keywords
4.8 Scenarios and Exercises
4.8.1 Concepts for Planning & Control within the Company
4.8.2 Synchronization between Use and Manufacturing with Inventory Control Processes
4.8.3 Basic Process Analysis and Manufacturing Processes in the Company-Internal Layout
4.9 References
5 The MRP II / ERP Concept: Business Processes and Methods
5.1 Business Processes and Tasks in Planning & Control
5.1.1 The MRP II Concept and Its Planning Hierarchy
5.1.2 Part Processes and Tasks in Long-Term and Medium-Term Planning
5.1.3 Part Processes and Tasks in Short-Term Planning & Control
5.1.4 Reference Model of Processes and Tasks in Planning & Control
5.1.5 Beyond MRP II: DRP II, Integrated Resource Management, and the “Theory of Constraints”
5.2 Master Planning — Long-Term Planning
5.2.1 Demand Management: Bid and Customer Blanket Order Processing and Demand Forecasting
5.2.2 Sales and Operations Planning and Resource Requirements Planning
5.2.3 Master Scheduling and Rough-Cut Capacity Planning
5.2.4 Supplier Scheduling: Blanket Order Processing, Release, and Coordination
5.3 Introduction to Detailed Planning and Execution
5.3.1 Basic Principles of Materials Management Concepts
5.3.2 Overview of Materials Management Techniques
5.3.3 Basic Principles of Scheduling and Capacity Management Concepts
5.3.4 Overview of Scheduling and Capacity Management Techniques
5.3.5 Available-to-Promise and Capable-to-Promise
5.4 Logistics Business Methods in R&D (*)
5.4.1 Integrated Order Processing and Simultaneous Engineering
5.4.2 Release Control and Engineering Change Control
5.4.3 Different Views of the Business Object According to Task
5.5 Summary
5.6 Keywords
5.7 Scenarios and Exercises
5.7.1 Master Scheduling and Product Variants
5.7.2 Available-to-Promise (ATP)
5.7.3 Theory of Constraints
5.7.4 Master Planning Case
5.8 References
6 The Lean / Just-in-Time Concept and Repetitive Manufacturing
6.1 Characterizing Lean / Just-in-Time and Repetitive Manufacturing
6.1.1 Just-in-Time and Jidoka — Increasing Productivity through Reduction of Overburdening, Unevenness, and Useless Effort, or Waste
6.1.2 Characteristic Features for Simple and Effective Planning & Control Techniques of Repetitive Manufacturing
6.2 The Lean / Just-in-Time Concept
6.2.1 Lead Time Reduction Through Setup Time Reduction and Batch Size Reduction
6.2.2 Lead Time Reduction Through Manufacturing Segmentation, Cellular Manufacturing and One-Piece Flow
6.2.3 Further Concepts of Lead Time Reduction
6.2.4 Line Balancing — Harmonizing the Content of Work
6.2.5 Just-in-Time Logistics
6.2.6 Generally Valid Advantages of the Lean / Just-in-Time Concept for Materials Management
6.2.7 Generally Valid Advantages of the Lean / Just-in-Time Concept for Capacity Management
6.3 The Kanban Technique
6.3.1 Kanban: A Technique of Execution and Control of Operations
6.3.2 Kanban: A Technique of Materials Management
6.3.3 Kanban: Longand Medium-Term Planning
6.4 The Cumulative Production Figures Principle
6.5 Implementing Procedure and Comparison of Techniques
6.5.1 Implementing Procedure
6.5.2 Comparison of Techniques: Kanban versus Order Point Technique (*)
6.6 Summary
6.7 Keywords
6.8 Scenarios and Exercises
6.8.1 Operation Time versus Operation Cost, or the Effect of Varying Setup Time and Batch Size
6.8.2 The Effect of Cellular Manufacturing on Lead Time Reduction
6.8.3 Line Balancing — Harmonizing the Content of Work
6.8.4 Calculating the Number of Kanban Cards
6.9 References
7 The Concept for Product Families and One-of-a-Kind Production
7.1 Logistics Characteristics of a Product Variety Concept
7.1.1 High-Variety and Low-Variety Manufacturing
7.1.2 Different Variant-Oriented Techniques, and the Final Assembly Schedule
7.2 Adaptive Techniques
7.2.1 Techniques for Standard Products with Few Variants
7.2.2 Techniques for Product Families
7.3 Generative Techniques
7.3.1 The Combinatorial Aspect and the Problem of Redundant Data
7.3.2 Variants in Bills of Material and Routing Sheets: Production Rules of a Knowledge-Based System
7.3.3 The Use of Production Rules in Order Processing
7.4 Generative and Adaptive Techniques for Engineer-to-Order
7.4.1 Classical Procedure and Different Archetypes of Engineer-to-Order
7.4.2 Approach for Basic Engineer-to-Order
7.4.3 Approach for Repeatable Engineer-to-Order
7.5 Cooperation between R&D and Engineering in ETO Companies
7.5.1 Different Means Used for Cooperation between the R&D and the Order-specific Engineering Departments
7.5.2 The Portfolio of Cooperation Types between R&D and Engineering in ETO Companies
7.6 Summary
7.7 Keywords
7.8 Scenarios and Exercises
7.8.1 Adaptive Techniques for Product Families
7.8.2 Generative Techniques — the Use of Production Rules in Order Processing
7.8.3 Generative Techniques — Setting the Parameters of a Product Family
7.9 References
8 The Concept for the Process Industry
8.1 Characteristics of the Process Industry
8.1.1 Divergent Product Structures and By-Products
8.1.2 High-Volume Line Production, Flow Resources and Inflexible Facilities
8.1.3 Large Batch Size, Lot Traceability, and Loops in the Order Structure
8.2 Processor-Oriented Master and Order Data Management
8.2.1 Processes, Technology, and Resources
8.2.2 The Process Train: A Formalized Processor-Oriented Production Structure
8.2.3 Lot Control in Inventory Management
8.3 Processor-Oriented Resource Management
8.3.1 Campaign Planning
8.3.2 Processor-Dominated Scheduling versus Material-Dominated Scheduling
8.3.3 Consideration of a Nonlinear Usage Quantity and of a Product Structure with Loops
8.4 Special Features of Long-Term Planning
8.4.1 Determining the Degree of Detail of the Master Production Schedule
8.4.2 Pipeline Planning across Several Independent Locations
8.5 Summary
8.6 Keywords
8.7 Scenarios and Exercises
8.7.1 Batch Production versus Continuous Production
8.7.2 Manufacture of By-Products
8.7.3 Production Planning in Process Industries
8.8 References
9 ERP and SCM Software
9.1 Software in the Area of ERP and SCM: An Introduction
9.1.1 History and Origin of ERP Software
9.1.2 Scope and Range of ERP and SCM Software
9.2 Contents of ERP and SCM Software
9.2.1 Classical MRP II / ERP Software
9.2.2 Software for Customer Order Production or the Variant-Oriented Concept
9.2.3 Software for the Process Industry or the Processor-Oriented Concept
9.2.4 Software for Transcorporate Planning & Control in a Supply Chain
9.2.5 Software for Customer Relationship Management (CRM)
9.2.6 Standard or Company-Specific Software?
9.3 Factors for Successful Implementation of ERP and SCM Software
9.3.1 Possibilities and Limitations of the IT Support of Planning & Control
9.3.2 Factors That Influence Individual Acceptance and the Range of Implementation of ERP Software
9.4 Summary
9.5 Keywords
9.6 Scenarios and Exercises
9.6.1 Factors That Influence People’s Acceptance of ERP Software
9.6.2 Standard or Company-Specific Software
9.6.3 Software for Transcorporate Planning & Control
9.7 References
10 Demand Planning and Demand Forecasting
10.1 Overview of Demand Planning and Forecasting Techniques
10.1.1 The Problem of Demand Planning
10.1.2 Subdivision of Forecasting Techniques
10.1.3 Principles of Forecasting Techniques with Extrapolation of Time Series and the Definition of Variables
10.2 Historically Oriented Techniques for Constant Demand
10.2.1 Moving Average Forecast
10.2.2 First-Order Exponential Smoothing Forecast
10.2.3 Moving Average Forecast versus First-Order Exponential Smoothing Forecast
10.3 Historically Oriented Techniques with Trend-Shaped Behavior (*)
10.3.1 Regression Analysis Forecast
10.3.2 Second-Order Exponential Smoothing Forecast
10.3.3 Trigg and Leach Adaptive Smoothing Technique
10.3.4 Seasonality
10.4 Future-Oriented Techniques
10.4.1 Trend Extrapolation Forecast
10.4.2 The Delphi Method
10.4.3 Scenario Forecasts
10.5 Using Forecasts in Planning
10.5.1 Comparison of Techniques and Choice of Suitable Forecasting Technique
10.5.2 Consumption Distributions and Their Limits, Continuous and Discontinuous Demand
10.5.3 Demand Forecasting of Variants of a Product Family
10.5.4 Safety Demand Calculation for Various Planning Periods
10.5.5 Translation of Forecast into Quasi-Deterministic Demand and Administration of the Production or Purchase Schedule
10.6 Summary
10.7 Keywords
10.8 Scenarios and Exercises
10.8.1 Choice of Appropriate Forecasting Techniques
10.8.2 Moving Average Forecasting Technique
10.8.3 First-Order Exponential Smoothing
10.8.4 Moving Average Forecast versus First-Order Exponential Smoothing Forecast
10.9 References
11 Inventory Management and Stochastic Materials Management
11.1 Stores and Inventory Management
11.1.1 Characteristic Features of Stores Management
11.1.2 Inventory Transactions
11.1.3 Physical Inventory and Inventory Valuation
11.2 Usage Statistics, Analyses, and Classifications
11.2.1 Statistics on Inventory Transactions, Sales, and Bid Activities
11.2.2 The ABC Classification and the Pareto Chart
11.2.3 The XYZ Classification and Other Analyses and Statistics
11.3 Order Point Technique and Safety Stock Calculation
11.3.1 The Order Point Technique
11.3.2 Variants of the Order Point Technique
11.3.3 Safety Stock Calculation with Continuous Demand
11.3.4 Determining the Service Level and the Relation of Service Level to Fill Rate (*)
11.4 Batch or Lot Sizing
11.4.1 Production or Procurement Costs: Batch-Size-Dependent Unit Costs, Setup and Ordering Costs, and Carrying Cost
11.4.2 Optimum Batch Size and Optimum Length of Order Cycle: The Classic Economic Order Quantity
11.4.3 Optimum Batch Size and Optimum Length of Order Cycle in Practical Application
11.4.4 Extensions of the Batch Size Formula (*)
11.5 Summary
11.6 Keywords
11.7 Scenarios and Exercises
11.7.1 The ABC Classification
11.7.2 The ABC-XYZ Analysis and its Use in Materials Management
11.7.3 Safety Stock Variation versus Demand Variation
11.7.4 Batch Sizing Depending on Stockout Costs (*)
11.7.5 Effectiveness of the Order Point Technique
11.8 References
12 Deterministic Materials Management
12.1 Demand and Available Inventory along the Time Axis
12.1.1 Allocated Quantities, and the Projected Available Inventory
12.1.2 Projected Available Inventory Calculation
12.1.3 Scheduling and Cumulative Projected Available Inventory Calculation
12.1.4 Operating Curves for Stock on Hand
12.2 Deterministic Determination of Independent Demand
12.2.1 Customer Order and Distribution Requirements Planning (DRP)
12.2.2 Consuming the Forecast by Actual Demand (*)
12.3 Deterministic Determination of Dependent Demand
12.3.1 Characteristics of Discontinuous Dependent Demand
12.3.2 Material Requirements Planning (MRP) and Planned Orders
12.3.3 Determining the Timing of Dependent Demand and the Load of a Planned Order
12.4 Batch or Lot Sizing
12.4.1 Combining Net Requirements into Batches
12.4.2 Comparison of the Different Batch-Sizing Policies
12.5 Analyzing the Results of Material Requirements Planning (MRP)
12.5.1 Projected Available Inventory and Pegging
12.5.2 Action Messages
12.6 Summary
12.7 Keywords
12.8 Scenarios and Exercises
12.8.1 Projected Available Inventory Calculation
12.8.2 MRP Technique: Determining Net Requirements and Planned Release
12.8.3 Order Point Technique versus MRP Technique
12.9 Literaturhinweise
13 Time Management and Scheduling
13.1 Elements of Time Management
13.1.1 The Order of the Operations of a Production Order
13.1.2 Operation Time and Operation Load
13.1.3 The Elements of Interoperation Time
13.1.4 Administrative Time
13.1.5 Transportation Time
13.2 Buffers and Queues
13.2.1 Wait Time, Buffers, and the Funnel Model
13.2.2 Queues as an Effect of Random Load Fluctuations
13.2.3 Conclusions for Job Shop Production
13.2.4 Logistic Operating Curves
13.3 Scheduling of Orders and Scheduling Algorithms
13.3.1 The Manufacturing Calendar
13.3.2 Lead Time Scheduling: Calculating the Manufacturing Lead Time
13.3.3 Backward Scheduling and Forward Scheduling
13.3.4 Network Planning
13.3.5 Central Point Scheduling
13.3.6 The Lead-Time-Stretching Factor and Probable Scheduling
13.3.7 Scheduling Process Trains
13.4 Splitting, Overlapping, and Extended Scheduling Algorithms
13.4.1 Order or Lot Splitting
13.4.2 Overlapping
13.4.3 An Extended Formula for Manufacturing Lead Time (*)
13.4.4 Extended Scheduling Algorithms (*)
13.5 Summary
13.6 Keywords
13.7 Scenarios and Exercises
13.7.1 Queues as an Effect of Random Load Fluctuations (1)
13.7.2 Queues as an Effect of Random Load Fluctuations (2)
13.7.3 Network Planning
13.7.4 Backward Scheduling and Forward Scheduling
13.7.5 The Lead-Time-Stretching Factor and Probable Scheduling
13.8 References
14 Capacity Management
14.1 Fundamentals of Capacity Management
14.1.1 Capacity, Work Centers, and Capacity Determination
14.1.2 Overview of Capacity Management Techniques
14.2 Infinite Loading
14.2.1 Load Profile Calculation
14.2.2 Problems Associated with Algorithms for Load Profile Calculation
14.2.3 Methods of Balancing Capacity and Load
14.2.4 Order-Wise Infinite Loading
14.3 Finite Loading
14.3.1 Operations-Oriented Finite Loading
14.3.2 Order-Oriented Finite Loading
14.3.3 Constraint-Oriented Finite Loading
14.4 Rough-Cut Capacity Planning
14.4.1 Rough-Cut Network Plans and Load Profiles
14.4.2 Rough-Cut Infinite Loading
14.4.3 Rough-Cut Finite Loading
14.5 Summary
14.6 Keywords
14.7 Scenarios and Exercises
14.7.1 Capacity Determination
14.7.2 Algorithms for Load Profile Calculation
14.7.3 Rough-Cut Capacity Planning
14.8 References
15 Order Release and Control
15.1 Order Release
15.1.1 Order Proposals, Order Release for Procurement and Production, as well as Accompanying Documents and Container Logistics
15.1.2 Load-Oriented Order Release (Loor)
15.1.3 Capacity-Oriented Materials Management (Corma)
15.2 Shop Floor Control — Production Activity Control and the Manufacturing Execution System
15.2.1 Issuance of Accompanying Documents for Production
15.2.2 Operations Scheduling, Dispatching, Finite Forward Scheduling, and the (Electronic) Control Board (Leitstand)
15.2.3 Sequencing Methods
15.3 Order Monitoring and Shop Floor Data Collection
15.3.1 Recording Issues of Goods from Stock
15.3.2 Recording Completed Operations
15.3.3 Progress Checking, Quality Control, and Report of Order Termination
15.3.4 Automatic and Rough-Cut Data Collection
15.4 Distribution Control
15.4.1 Order Picking
15.4.2 Packaging and Load Building
15.4.3 Transportation to Receiver
15.5 Summary
15.6 Keywords
15.7 Scenarios and Exercises
15.7.1 Load-Oriented Order Release (Loor)
15.7.2 Capacity-Oriented Materials Management (Corma)
15.7.3 Finite Forward Scheduling
15.7.4 Order Picking
15.8 References
16 Cost Estimation, Job-Order Costing, and Activity-Based Costing
16.1 Costs, Cost Elements, and Cost Structures
16.1.1 Actual, Direct, and Overhead Costs
16.1.2 Average Costs and Standard Costs
16.1.3 Variable Costs and Fixed Costs
16.1.4 Cost Accumulation Breakdown: The Cost Breakdown Structure of a Product
16.2 Cost Estimation
16.2.1 An Algorithm for Cost Estimation of Goods Manufactured
16.2.2 Representation of the Cost Accumulation and Comprehensive Calculation for a Product Line
16.3 Job-Order Costing
16.3.1 Actual Quantities and Actual Costs
16.3.2 Cost Analysis
16.3.3 The Interface from Order Management to Cost Accounting
16.4 Activity-Based Costing
16.4.1 Limits of Traditional Product Costing
16.4.2 Introducing Activity-Based Costing: Aim, Basic Premise, and Technique
16.4.3 Typical Processes (Activities) and Process Variables
16.4.4 Activity-Based Product Cost Estimation
16.5 Summary
16.6 Keywords
16.7 Scenarios and Exercises
16.7.1 Job-Order Costing
16.7.2 Activity-Based Costing
16.7.3 Comparing Job-Order Costing and Activity-Based Costing
16.8 References
17 Representation and System Management of Logistic Objects
17.1 Order Data in Sales, Distribution, Production, and Procurement
17.1.1 Customer and Supplier Data, and the Corporate Group Structure
17.1.2 The General Structure of Orders in Sales and Distribution, Production, and Procurement
17.1.3 The Order and Partial Order Header
17.1.4 The Order Position
17.1.5 Inventories and Inventory Transactions
17.2 The Master Data for Products and Processes
17.2.1 Product, Product Structure, Components, and Operations
17.2.2 Item Master
17.2.3 Bill of Material, Bill-of-Material Position, and Where-Used List
17.2.4 Work Center Master Data
17.2.5 The Work Center Hierarchy
17.2.6 Operation and Routing Sheet
17.2.7 Production Equipment, Bill of Production Equipment, and Bill of Tools
17.2.8 Composition of the Basic Master Data Objects
17.3 Extensions Arising from the Variant-Oriented Concept
17.3.1 Expert Systems and Knowledge-Based Systems
17.3.2 Implementation of Production Rules
17.3.3 A Data Model for Parameterized Representation of a Product Family (*)
17.4 Extensions Arising from the Processor-Oriented Concept
17.4.1 Process, Technology, and the Processor-Oriented Production Structure
17.4.2 Objects for Lot Control
17.5 The Management of Product Data and Product Life Cycle Data
17.5.1 Product Life Cycle Management and Engineering Data Management
17.5.2 The Engineering Database as Part of a Computerized System
17.5.3 Data and Functional Model for General EDM Tasks
17.5.4 Object Classes and Functions for Release and Engineering Change Control (*)
17.6 Summary
17.7 Keywords
17.8 Scenarios and Exercises
17.8.1 Different Forms of Representing Bills of Material
17.8.2 Where-Used Lists
17.8.3 Basic Master Data Objects
17.9 References
18 Quality Management — TQM and Six Sigma
18.1 Quality: Concept and Measurement
18.1.1 Quality of Processes
18.1.2 Quality of Products
18.1.3 Quality of Organizations
18.1.4 Quality and Its Measurability
18.1.5 Quality Measurement and Six Sigma (6σ)
18.2 Quality Management Tasks at the Operations Level
18.2.1 The Deming Cycle (PDCA Cycle) and the Shewhart Cycle
18.2.2 The Six Sigma Phases
18.2.3 Quality Planning: PDCA Plan Task — DMAIC Define Phase
18.2.4 Quality Control: PDCA Check Task, Part 1 — DMAIC Measure Phase and Analyze Phase, Part 1
18.2.5 PDCA Do Task — DMAIC Improve Phase
18.2.6 Quality Assurance: PDCA Check Task, Part 2 — DMAIC Measure Phase and Analyze Phase, Part 2
18.2.7 PDCA Act Task — DMAIC Control Phase
18.2.8 Project Management, Continual Improvement, and Reengineering
18.3 Quality Management Systems
18.3.1 Standards and Norms of Quality Management: ISO 9000:2015
18.3.2 Models and Awards for Total Quality Management
18.3.3 Audits and Procedures for Assessing the Quality of Organizations
18.3.4 Benchmarking
18.4 Summary
18.5 Keywords
18.6 References
19 Systems Engineering and Project Management
19.1 Systems Engineering
19.1.1 Systems Thinking and the Top-Down Approach
19.1.2 Phases of Life of a System and System Life Cycle
19.1.3 The Problem Solving Cycle
19.1.4 Differences between Software Engineering and Classical Systems Engineering
19.2 Project Management
19.2.1 Goals and Constraints of a Project
19.2.2 Project Phase, Project Life Cycle, and Work Breakdown Structure
19.2.3 Project Scheduling and Effort Planning
19.2.4 Project Organization
19.2.5 Project Cost, Benefits, Profitability, and Risk
19.3 Summary
19.4 Keywords
19.5 Literaturhinweise
20 Selected Sections of Information Management
20.1 Important Terms in Information Management
20.2 Modeling Enterprise Information Systems
20.2.1 Basic Principles of Modeling
20.2.2 Various Dimensions in the Modeling of Information Systems for Business Processes
20.2.3 Dimension: Hierarchy Creation
20.2.4 Dimension: Various Views in Modeling
20.3 Modeling Information Systems in the Data View and Object View
20.3.1 Object, Attribute, and Object Class
20.3.2 View and Primary and Secondary Keys
20.3.3 Association and (Association) Role
20.3.4 Single-Valued and Multivalued Roles, and Total and Partial Roles
20.3.5 Association Types
20.3.6 Breaking up an n-to-n Association; Association Class
20.3.7 Different Notations and the Reidentification Key
20.3.8 Breaking Up a Reflexive n-to-n Association
20.3.9 Using the Hierarchical Constructs Based on Basic Object Classes: The Company-Wide Generic Object Model
20.4 Summary
20.5 Keywords
20.6 References
Index