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

Description

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 systemsthe integrated design of product, distribution, retail, service, and transportation networks for global location planningnew 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 environmentthe 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. 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