Field Project on

A Study on Business Process

Modelling : Mapping to FMCG
Industry

Introduction
Need of the Project
Supply chain is the backbone of FMCG
industry
Supply chain structure is Complex
Standardization of supply chain is the
need
Supply chains emphasize the process
approachof the Project
Objective

Supply Chain Structure

Understand the complete Purchase Order Processing followed in FMCG industry

Develop a business process map of that using Data Flow Diagram (DFD)

Why DFD?
Based on advantages- disadvantages- uses, DFD best suits for this business problem

Literature Review
Research paper

Supported Area

Hanil Jeong, Hyunbo Cho, Albert Jones, Seongjun Lee,

Seokcheon Lee (Journal of Service Science and Management,
2012) , Business Process Models for Integrated Supply Chain
Planning in Open Business Environment , IEEE publication

Developing business process

models that reflect realistic
business scenarios and enable
integrated supply chain planning
in
the
open
business
environment

Wu Bei, Shanshan Wang, Jun Hu (2000), An analysis of Supplier Framework for supplier selection
Selection in Manufacturing Supply Chain Management , IEEE an evaluation model of supplier
publication
selection
Guijun Wang, Stephen Miller (2008), Intelligent Aggregation of Developing aggregate purchase
Purchase Orders in e-Procurement , IEEE publication
order process to reduce costs
Madhu Bala and Dinesh Kumar (2005), Supply chain Identification of the supply chain
performance attributes for the fast moving consumer goods performance attributes that are
industry, IEEE publication
relevant to the Fast Moving
Consumer Goods
Yonglei Tao, Chenho Kung (2003), Formal definition and A formal basis for the DFD
verification of data flow diagrams, Journal of Systems and

Business Process Modeling

Definition
Its an abstract representation of a business process and it closely replicates the
reality
Uses- understanding, communicating,
managing or executing a process

improving,

developing,

Benefits Allows analysis and understanding of the process flows

Helps managers know if there is room for further optimization and efficiencies
Ensures consistency, traceability and focus towards a shared goal

Business Process Methodologies

Flow chart
Data Flow Diagrams
Role Activity Diagrams
Role Interaction Diagrams

automating,

Data Flow Diagram

DFD are diagrams that show the flow of
data or information from one place to
another
A DFD is a graphical representation that is
appropriate to show system functionality,
with its underlying processes and flow of
data
The functional decomposition of DFDs
enables multiple levels of representation
by creating child diagrams for each activity
It shows how information enters and leaves
the process; what activities change the
information; where information is stored
within the process, and the organizational
function to which the activity belongs

Notation

Data Flow Diagram

Advantages
The multiple levels of representation facilitate changes and system improvement
Functional decomposition enables each process to be subdivided into sub processes, which can be further
subdivided
Easy to use technique due to the small number of elements required in order to construct a model.
The expressivity of the modelling elements facilitates the construction of a DFD model for inexperienced users
Easy to understand both conceptually and in presentation

Disadvantages
Each process only show the flow of data, not materials or workflow
DFDs do not provide the capability to describe process sequencing or process control mechanisms

Uses
Process at the logical level. This means that we will be able to describe what a process will do, rather than how
it will be done
DFD are used in the functional model to specify the meaning of operations and constraints and show functional
dependencies

Business Process Mapping: FMCG Industry

DFD for Complete Purchase
Order Process
Sub processes Involved
Sales Process
Receiving Process
Accounting Process

Customer places PO with Sales

Department
Sales department places PO
with
vendor
in
case
of
insufficient
inventory
and
processes
customer
PO
immediately or after inventory
is replaced depending upon
available stock
Receiving Department receives
order sent by vendor, checks
for
any
discrepancy
and
updates inventory data
Accounts department handle

DFD of complete PO process

Business Process Mapping: FMCG Industry

DFD for Sales Process

Main tasks
Fill out standard PO form
Check stock
Generate Vendor PO
Generate customer billing
copy, Packing Slip,
Invoice
DFD of operations of Sales department

Business Process Mapping: FMCG Industry

DFD for Receiving Process

Main tasks
Record vendor packing
slip
Record vendor invoice
Credit inventory received

DFD of operations of Receiving department

Business Process Mapping: FMCG Industry

DFD for Accounting Process

Main tasks
Apply customer payment
Summarize bills and archive
paid bills
Generate vendor complaint
Generate vendor payment
and archive paid bills

DFD of operations of Accounting department

Findings
Data flow diagram representation cannot work for all kind of business
processes. Depending on its advantages-disadvantages-uses, it should
be used at proper situations
DFD modelling of purchase order process helps in standardizing the
process, thus removing any confusions or ambiguities in its application
at any point in the supply chain
DFD modelling is done after process reengineering of general purchase
order process. For eg- Vendor analysis process, Customer Credit check
process
These reengineerings help in making cost effective decisions for the

ThankYo
u