BPI - Business Process based application Integration - and its application for Supply Chain Management System

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1 BPI - Business Process based application Integration - and its application Supply Chain Management Kazuyuki Aoyama aoyama@bisd.hitachi.co.jp Business Solution s Development Division Hitachi, Ltd.

2 Why EAI now? Rapid Rapid Change in in Business Environment Rapid Rapid Change in in Inmation Technology Business depends on inmation system and technology Business system becomes complex more and more But still, business style need to be changed... The The Purpose Purpose EAI: EAI: To To support support improvement improvement and and progress progress enterprise enterprise business business systems systems in in order order to to keep keep up up with with the the radical radical change change business business environment environment But, how?... BPI (Business Process based application Integration)

system becomes complex more and more But still, business style need to be changed.

3 What is BPI? Business process definition is set as the core the integration architecture components and business process are combined by BPI Framework (s) Business Process Definition BPI Framework Existing s Package Database s Human Package

4 Features BPI Capability step-by by-step improvement Business Process Definition Flexibility Changes Business Process BPI Framework Flexibility Changes Component Integration including human decisions Reusability Reusability Design & Design Program & Program Business Process Definition Business Process Definition Integration Model Integration Model Data Model & Mapping Rule Data Model & Mapping Rule Framework Framework & & s s

Reusability Reusability Design & Design Program & Program Business Process Definition Business Process

5 Hitachi s s Workflow specialized Integration Business Process Definition Definer Definer Server Support variety process model Form-circulation business process A predefined process Collaborative business process A Semi-predefined process in which operations are different each process instance Project-type business process Ad-hoc process in which a work item is broken down at every step into smaller tasks Open interface CORBA based interface A Semi-predefined process in which operations are different each process instance data access A Semi-predefined process in which operations are different each process instance Existing application on mainframe Package Web-based application Status Monitoring Administration Process instances Monitor Monitor Adaptability changes Changes at runtime Changes rules in business process definition such as conditions can be done at runtime Process instance migration Process instance migration utility is available to migrate process instances from an old business process definition into new ones. All Rights Reserved,Copyright 2000,Hitachi,Ltd.

smaller tasks Open interface CORBA based interface A Semi-predefined process in which operations are different each process instance data access A Semi-predefined process in which operations are

6 A Case Study - BPI application SCM Supply Chain Management (SCM) Acquisition Process Manufacturer Production Planning Generates future material shortage inmation based on the production plan, current inventory, and issued P.O. shortage inmation is transmed to purchase requisition and distributed to appropriate buyers Buyers Receiving the purchase requisitions, buyers issue purchase order with their pressional decisions Production Plan Purchasing & Management () (Hitachi s MRP Engine) Purchasing & Management () Receipt BOM Data extraction & transm Execution & complete detection Data transm & distribution Event detection (purchase order, inventory receipt) (controls (controls flow flow the the process) process)

shortage inmation is transmed to purchase requisition and distributed to appropriate buyers Buyers Receiving the purchase requisitions, buyers issue purchase order with their

7 Integration Schedule and Outputs March April May June July August September Business Analysis & Design Business Process Modeling Data Modeling BP Definition Data Model Integration Modeling Integration Model Design Study (, ) Data Mapping Design Data Mapping Program Design & Implementation Program Design Study APIs Program Design Program Design Coding, Testing, & Debugging

Modeling Integration Model Design Study (, ) Data Mapping Design Data Mapping Program Design

8 Examples Design (1) Business Level: Business Process Modeling MRP & Requisition BP Executing MRP Execute MRP Waiting Requisition Requisition (Parallel Work Item) Requisition material A Requisition material F Business Business processes processes and and rules rules processes processes are are defined defined should should be be considered considered However, However, business business process process should should not not be be designed designed closely closely dependent dependent on on the the & Receipt BP Accepting Requisition Creating Waiting Waiting Receipt Accept Requisition Create Issue Receipt

defined should should be be considered considered However, However, business business process process should should not not be be designed designed

9 Level: Integration Modeling Examples Design (2) are are combined combined to to work work items items in in business business process process definition definition using using BPI BPI Framework Framework (s) (s) Level Level Process Process may may be be defined defined as as a a sub-process sub-process a a business business process process MRP & Requisition BP Executing MRP Execute MRP Waiting Requisition Requisition (Parallel Work Item) Requisition material A Requisition material F MRP Execution BP Level Process Production Planning Production Plan Creating Input Data Create Input Data BPI Framework Data Transmer Executing Execute AP Start & Complete Detect Storing Execution Result Store Execution Result Data Transmer DB Evaluator Evaluate Shortage DB and generate parallel work items each records Input Shortage

Waiting Requisition Requisition (Parallel Work Item) Requisition material A Requisition material F MRP Execution BP Level Process Production Planning Production Plan Creating Input Data Create Input

10 Level: Data Mapping Examples Design (3) Data Data mapping mapping rules rules between between source source and and target target are are defined defined each each Data Data Transmer Transmer type type.. Data Data Model Model developed developed at at previous previous step step makes makes this this easier. easier. Tables in Code Input Format Code * references Type Registered Date Effective Start Date Code (FK) Language Code Name Name Effective Start Date Effective End Date Buyer Code Category Block Category Warehouse Code... Fixed by J

. Data Data Model Model developed developed at at previous previous step step makes makes this this easier.

11 Overall Structure Activator Program API MRP & Requisition BP Execute MRP Requisition Requisition each & Receipt BP Accept Requisition Create Issue Receipt (a) BP Junction Activate sub-process, and notify end the sub-process BP Junction Create Input Data Execute Store Execution Result Requisition Requisition (g) Worklist Show issued purchase requisition records each buyer Production Plan Production Plan Detail -Shop Warehouse Vendor Shop Production Capacity - Warehouse Info.(Gen.) Info (Org.) P.O. P.O Detail P.O. Ship BOM (C) Execution/Complete Detection Execute, and notify the completion MRP WCO Link Transmer (table to table) Input s MPS Shop Production Lot Info. In/Out BOM Supply Calendar (Local) Calendar () WCO Link Execution / Complete Detection Server (b) Transmer (table to table) Collects data from and other system, and transm it into input files WCO Link Transmer (table to table) Shortage Info -Vendor BP Junction (d) Transmer (table to table) Extract material shortage data from, transm it, and put it in Process Data Management (e) BP Junction Create BP2 Instances each work item Requisition each in BP1 Program which is independent to Program which is dependent to Note: Arrows in this diagram indicates the direction call, or reference. Arrows do not indicate flows data. WCO Link Transmer (record to record) (f) Transmer (record to record) Register Requisition records Requisition Registration Requisition Process Data Management Client (Customized) Server Worklist management Worklist P.O. Client (h) Wrapper Put P.O. record into Wrapper All Rights Reserved,Copyright 2000,Hitachi,Ltd. Registration WCO Link Watcher Receipt (i) DB Watcher Periodically check table, and detect entry inventory receipt record

Production Plan Detail -Shop Warehouse Vendor Shop Production Capacity - Warehouse Info.(Gen.) Info (Or

12 Findings from the SCM Integration (1) Types BPI Framework Execution / Complete Detection Execute an application with parameters, detect completion, and notify the completion to the Transmer (table to table) Import data from multiple tables in source applications, transm the data, and put the data into target applications Transmer (record to record) Receive record data, transm the data and put the data into target application BP Junction Put process instance into a business process with passing parameters, and watch the status the business process (e.g. completion the process) DB Watcher Check data in an application periodically, and notify the result to the when predefined condition occurs in the data DB Evaluator Transmer type BPI Framework Component Dependent () Work Item Common Part (WCO Link) Notify Completion Execute Notify Independent Dependent () Check data in an application once, and notify the result to the Worklist Provide list work items each users, and activate appropriate application when the user select a work item on the list. Data Import Component Data Export Component

13 Findings from the SCM Integration (2) Reusability design and program Cost the integration/development (Human.Month) Scrap & build (estimated) BPI without reusable templates Generic part BPI BPI with templates (estimated) Business Analysis & Design 4 4 Business Template (3) Detail Design (1) 3 Business Template % Design Integration Template (9) dependent (3) Integration Template Program Design & Implementation 16 program (10) Integration (6) 12 program (2) BPI Framework Component Generic (7.3) Customer dependent ( 2.7) 7.3 Generic part BPI Framework Component % Total % Relative cost using templates

(3) Detail Design (1) 3 Business Template 1 27.

14 Our Challenges Methods Methods and and Procedures Procedures Procedures Procedures BPI BPI BP BP Design Design Integration Integration Enhancement Enhancement Model Model Tools Tools & Products Products Enhancement Enhancement BPI BPI Design Design Support Support Tool Tool Toolkit Toolkit BPI BPI Methodology Concept & Evaluation Evaluation Template Template Development Development Business Business Domains Domains (SCM, (SCM, CRM, CRM, ) ) Customer s Customer s Business Business

BPI Design Design Support Support Tool Tool Toolkit Toolkit BPI BPI Methodology Concept & Evaluation Evaluation Template

Functional Area Systems Production / Operation Systems

ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples: