Order Process: Purchase Card PCard Model WalkThrough

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Order Process Purchase Card (PCard)Model
Walk-Through

• ANSI ASC X12
• SITG/OO_edi Demonstration Project
• October 1999

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Overview

• Context
• Use Case
• Sequence Diagram
• Activity - Buyer
• Activity - Seller

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Context - Purpose

• What is the purpose of this model?
• Develop a description of the business process
  called Order Process Purchasing Card (PCard) so
  common business objects can be identified,
  documented, built and tested. The scope of this
  business process encompasses order request
  through order confirmation.

• Basic Questions
• What are the goals of this system?
• What is the data required to achieve the goals of
  the system that is passing between system
  interfaces?
• Who or what provides the data that is passing
  between system interfaces? (Sources?)
• What are the key activities being performed to
  achieve the goal of the system?
• Who and/or what are the key players in the
  system?
• What are the constraints, controls and rules by
  which the system is to operate?

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Context - Scope

• Business Domain Order Process Purchasing Card
  (PCcard)
• Definition The scope of this model is the
  receipt of the request and the creation,
  placement and confirmation of an order using the
  Order Process Purchasing Card (PCcard)

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Context - System Boundaries

• External Activities to the System under study
• PCard set-up / Management / Administration of
  PCard within the Company / Corporation
• Management of the application process for a PCard
• PCard issuing to employees
• PCard return to corporation
• Disputes
• Adjustments
• Reconciliation

• Auditing
• Regulatory
• IT View / Network provider
• Treasury
• Authorization of Supplier
• Commodity Authorization
• PCard Processor
• Settlement
• Post confirmation PCard authorization

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Context - System BoundariesContinued

• Roles Internal Activities External Activities
• Requestor
• Identifies need
• Submits Requests
• Receives Goods and Services
• Buyer (PCard Holder)
• Orders Goods and Services (enhanced for PCard)
• Acknowledges to Requestor the status of the
  order
• Supplier
• Receives enhanced Order
• Send Request for Authorization
• Receives Authorization and codes
• Bills card issuer
• Satisfies Order
• Acknowledgement to PCard order regarding
  status of order
• PCard Issuer
• Issues PCard
• Receive authorization request
• Acknowledgement of authorization
  status_with code

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USE CASEOrder Process Purchase Card (PCard).

• Description of how a system can be used (from an
  external actors point of view).
• Use cases show the functionality of a system, and
  are described in terms of external actors, use
  cases, and the system being modeled.

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USE CASEActor - Buyer

• Buyer
• A buyer is the requestor of goods and services.
  In this context, the buyer places the order and
  receives the confirmation. The Buyer has a
  PCard.
• Attributes of the Buyer
• --Authority to create order
• --Authority to buy product or service
• --Issued a PCard
• The role is performed by various actors -- buyer,
  administrative support, managers, procurement
  officers, replenishment system, etc.

Create Order
Authorizing Agent
Buyer
Accept Order
Supplier
Order Confirmation
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USE CASEActor - Supplier

• Supplier
• A supplier is the provider of goods and services.
  In this context, the supplier accepts and
  confirms the order.
• The role is performed by various actors -- retail
  clerk, internet provider, order fulfillment and
  manager, etc.

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USE CASEActor - Authorizing Agent

• Authorizing Agent
• The authorizing agent receives the request for
  authorization and returns a response. The role
  is performed by a credit card company.
• The authorization process is outside the scope of
  this model.

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USE CASEUse Case Name - Create Order

• Create Order
• Definition The buyer receives a request for the
  purchase of goods or services determines if
  there is a supplier that can fill the request and
  accepts a purchasing card (PCard) compile the
  order and sends the order.
• Sub Activities
• --Receive request
• --Validate request
• --Select supplier
• --Deny purchase
• --Compile order
• --Send order

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USE CASEUse Case Name - Create Order

• Initiators
• A request to purchase specific service(s) or
  good(s).
• Terminators
• Communicate order.
• Deny request.
• Withdraw request.
• Unacceptable supplier.
• Controlling Factors
• --Ability to determine valid P-card enabled
  supplier.
• --Access to information required to validate
  supplier.
• Exceptions to PCard Process
• --Continuous Replenishmjent Program (CRP)
• --Vendor Managed Inventory (VMI)

• Pre Condition
• Request for product or service to be ordered
  exists.
• Post Condition
• Completed order sent to supplier.
• Desired Output
• Successfully sent order to supplier.
• Input Required to Act
• -Request.
• Output From This Action
• Completed order sent to supplier.

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USE CASEUse Case Name - Accept Order

• Accept Order
• Definition The supplier receives the order from
  the buyer validates the order, and obtains
  authorization for the purchase.
• Sub Activities
• --Receive order
• --Validate buyer
• --Validate product
• --Check product availability
• --Price order
• --Buyer credit check (BCC) required ?
• --BCC
• --Required PCard authorization before ship
• --Conduct authorization
• --Release order

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USE CASEUse Case Name - Accept Order

• Initiators Receipt of order from buyer
• Terminators
• --Release of order --Unrecognized buyer
• --Unrecognized product --Product not available
• --Credit not approved --Authorization declined
• Controlling Factors
• --Access to PCard authorization data
• --Access to internal data
• --Business rules
• a. Buyer identification
• b. Product identifiication
• c. Product availability
• d. Internal credit check
• e. External authorization

• Exceptions to normal PCard process None
• Pre Conditions Order is available
• PostConditions Sent order
• Desired Output Accepted order
• Input required to Act Order
• Output from this Action
• --Processed order
• --Pick list
• --Order status

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USE CASEUse Case Name - Order Confirmation

• Order Confirmation
• Definition The supplier explicitly conveys
  confirmation or the buyer assumes confirmation
  that the order placed has been accepted.

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USE CASEUse Case Name - Order Confirmation

• Initiator --Release of the order
• Terminators --Completion of confirmation
• Controlling Factors
• --Access to required data.
• --Ability to communicate between buyer/seller
• --Business rule(s)
• a. Confirmation
• Exceptions --Provisional confirmation given to
  buyer because order can not be confirmed.

• Pre Condition --Released order
• Post Condition --Communicated order status
• Desired Output --Explicit or implied
  confirmation of order.
• Input Required To Act --Order status
• Output from action --Confirmed order

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Sequence Diagram

• Describes how objects interact with each other.
• Sequence diagrams focus on time, meaning they
  display when messages are sent and received

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Activity - Buyer

• Shows interactions, focusing on the work
  performed.
• The activity diagram displays a sequence of
  actions including alternative execution and
  objects involved in performing the work.

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Activity - BuyerReceive Request

• 1. Defined --Communication of a requirement for
  P-card purchase to p-card holder
• 2. Sub activities -None
• 3. Initiators --Initiated by request.
• 4. Terminators - Request is received by p-card
  holder.
• 5. Controlling factors -- Policies, limits,
  authorization, and communications.
• 6. Exceptions - none
• 7. Pre condition -- P-card holder not aware of
  request.
• 8. Post condition --P-card holder aware of
  request.
• 9. Desired output -- Request adequately
  communicated to p-card holder.
• 10. Input required to act -- order request
• 11. Output -- received request

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Activity - Buyer Valid Request

• 1. Define--Ensure the requester and request is
  valid, i.e. is it an authorized purchase, p-card
  holder, product (given the p-card limits for that
  purchase.)
• 2. Sub activities
• -- Check p-card limits/contraints system/reports
• -- Check employee records or P-card set up
• 3. Initiators--Received order request
• 4. Terminators--Decision on validation
• 5. Controlling factors -- Availability of P-card
  system, reports, management staff.
• 6 Exceptions -- None
• 7. Precondition --Invalidated request
• 8. Post condition-- valid request or invalid
  request
• 9. Desired output -- Correct validation.
• 10. Input required to act -- request
• 11. Output -- decision

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Activity - Buyer Select Supplier

• 1. Definition Determine if supplier has ability
  to deliver products or services per requirements
• 2 Sub activity Check catalog, Check database,
  check historic orders
• 3 Initiators Valid order request
• 4 Terminator Determination of product/supplier
  availability
• 5 Controlling factors Availability of catalogs,
  databases
• 6 Exceptions Partial availability of products
  or substitutions.
• 7 Pre condition A validated request
• 8. Post condition Supplier selected
• 9. Desired output Correct decision
• 10. Input validated request
• 11. Output Selected supplier or no supplier

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Activity - Buyer Compile Order

• 1. Definition Assemble required information to
  send order to specific supplier.
• 2. Sub activity none
• 3. Initiators Valid request and selected
  supplier
• 4. Terminator compiled order
• 5. Controlling factors Have all information,
  access to information
• 6. Exceptions None
• 7. Precondition Validated request with selected
  supplier
• 8 Post conditions compiled order
• 9. Desired output properly compiled order
• 10 Input required to act validated request
• 11. Output order

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Activity - Buyer Send Order

• 1. Define -- Send the completed order to the
  selected supplier
• 2. Sub activity none
• 3. Initiators Compiled Order
• 4. Terminators Order is sent
• 5. Controlling Factors Communication available,
  policies and procedures
• 6. Exception none
• 7. Precondition compiled order
• 8 Post Condition sent order
• 9 Desired output sent order
• 10 Input compiled order
• 11 Output sent order

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Activity - Supplier

• Shows interactions, focusing on the work
  performed.
• The activity diagram displays a sequence of
  actions including alternative execution and
  objects involved in performing the work.

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Activity - Supplier Receive Order

• 1 Definition Receipt by supplier of an order.
• 2 Sub Activities
• -- Monitor for order (check to see if order
  present)
• -- Check completeness of order
• 3 Initiators Buyer sends order
• 4 Terminators Order received
• 5 Controlling Factors
• -- Manual - during business hours (buyer
  Service Representative/ Human Resources
  Available)
• -- Automated - System available
• 6 Exception none
• 7 Precondition Waiting for order
• 8 Post condition Order received
• 9 Desired output Received order
• 10 Input required to act Order sent from buyer
• 11 Output
• -- Complete order
• -- Incomplete order

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Activity - Supplier Indentify Buyer

• 1 Definition Establish identity of buyer
• 2 Sub Activities
• - Check internal database
• - Record identifier information provided by
  buyer and verify
• - Check outside sources
• 3 Initiators Receipt of order
• 4 Terminators Completion of data gathering on
  buyer
• 5 Controlling Factors Availability of systems,
  resources
• 6 Exceptions none
• 7 Pre Conditions Buyer not identified
• 8 Post Conditions
• --Buyer identified
• --Buyer not identified
• 9 Desired Output Correctly Identify buyer
• 10 Input required to act Buyer information from
  order
• 11 Output
• --Order with an identified buyer
• --Order with an unidentified buyer

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Activity - Supplier Identify Product(s)

• 1 Definition Identify the product(s)
• 2 Sub Activities
• --Check product catalog
• --Validate status of product
• --Reformat or convert to an acceptable format,
  etc.
• 3 Initiators Receipt of order
• 4 Terminators
• --Invalid product code
• --Valid product code
• 5 Controlling Factors Order processing business
  rules
• 6 Exceptions none
• 7 Pre conditions Product not identified
• 8 Post conditions
• -- Order with all products identified
• -- Order with all products unidentified
• -- Order with some products unidentified
• 9 Desired Output Correctly identify the product
• 10 Input required to act Product information
  from order
• 11 Output

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Activity - Supplier Check Availability

• Definition Determine if product can be provided
  per buyer's request.
• 2 Subactivities Verify buyer is authorized to
  order product.
• 3 Initiators Order with identified products.
• 4 Terminators Determination of product
  availability.
• 5 Controlling factors
• -- Business policies and procedures.
• -- System availability
• 6 Exceptions None
• 7 Pre condition Inventory status unknown.
• 8 Post condition Inventory status known.
• 9 Desired Output Availability of ordered
  products.
• 10 Input required to act Order with identified
  products.
• 11 Output Order with product availability status.

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Activity - Supplier Split order

• 1 Definition Decision to process an order when
  some of the products are unidentified.
• 2 Subactivities None
• 3 Initiators Order with some products
  unidentified
• 4 Terminators Decision made
• 5 Controlling factors Business rules
• 6 Exceptions None
• 7 Pre condition Some products unidentified
• 8 Post condition Decision made
• 9 Desired Output Correctly applying business
  rules
• 10 Input required to act Order with some
  products unidentified
• 11 Output Decision

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Activity - Supplier Execute Split

• 1 Definition Split order into identified and
  unidentified products.
• 2 Subactivities None
• 3 Initiators Order with some unidentified
  products.
• 4 Terminators Creation of order with identified
  products and order with unidentified products.
• 5 Controlling factors Business rules regarding
  split orders.
• 6 Exceptions None
• 7 Pre condition Existence of order with some
  unidentified products.
• 8 Post condition
• -- Order with identified products.
• -- Order with unidentified products.
• 9 Desired Output Split order
• 10 Input required to act Identified and
  unidentified products.
• 11 Output
• -- Order with identified products.
• -- Order with unidentified products.

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Activity - Supplier Price Order

• 1 Definition Assign monetary value to available
  products.
• 2 Subactivities
• -- Identify contract price / Currency
• -- Calculate shipping handling, tax
• -- Special pricing/Volume pricing
• --Terms Conditions
• 3 Initiators Identified buyer, identified
  product, and available product.
• 4 Terminators Order priced
• 5 Controlling factors
• -- Access to contract database
• -- Access to list price catalog
• -- Shipping, handling, and tax rules
• 6 Exceptions None
• 7 Pre condition Unpriced order
• 8 Post condition Priced order
• 9 Desired Output Correctly priced order
• 10 Input required to act Unpriced order
• 11 Output Priced order.

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Activity - Supplier Is Buyer Credit Check (BCC)
Required?

• 1 Definition Determine if business rule requires
  internal credit check of buyer once the order has
  been priced.
• 2 Subactivities None
• 3 Initiators Priced order
• 4 Terminators Final decision on BCC required Y/N
  
• 5 Controlling factors None
• 6 Exceptions None
• 7 Pre condition Unknown if internal BCC is
  required.
• 8 Post condition BCC requirement is known.
• 9 Desired Output Correct decision
• 10 Input required to act Priced order
• 11 Output
• -- Priced order with BCC required.
• -- Priced order BCC not required.

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Activity - Supplier Buyer Credit Check (BCC)

• 1 Definition Determine credit worthiness of the
  buyer.
• 2 Subactivities None
• 3 Initiators Priced order with BCC requirement.
• 4 Terminators Credit worthiness determined.
• 5 Controlling factors
• -- Access to database
• -- Business Rules
• -- Availability of credit checking staff
• 6 Exceptions None
• 7 Pre condition Priced order requiring a BCC.
• 8 Post condition Priced order with BCC
  completed.
• 9 Desired Output Priced order with a correct
  credit status.
• 10 Input required to act Priced order with BCC
  requirement.
• 11 Output Credit status for buyer

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Activity - Supplier Is PCard Authorization
required before shipping?

• 1 Definition Determine if PCard authorization
  is required before shipping.
• 2 Subactivities None
• 3 Initiators
• -- Priced order with BCC approved
• -- Priced order with BCC not required.
• 4 Terminators Decision
• 5 Controlling factors Business rules and
  procedures
• 6 Exceptions None
• 7 Pre condition Priced order with either an
  approved BCC or BCC not required.
• 8 Post condition Knowledge about the PCard
  authorization requirement before shipment.
• 9 Desired Output Correct decision to accomplish
  PCard authorization.
• 10 Input required to act Priced order with
  either an approved BCC or BCC not required.
• 11 Output
• -- Priced order with authorization required
  before shipping.
• -- Priced order not requiring authorization
  before shipping.

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Activity - Supplier Conduct Authorization

• 1 Definition Request and receive authorization
  data for PCard purchase from authorizing agent.
  Note Authorization includes approval or denial.
  
• 2 Subactivities
• -- Compile level 1, 2, or 3 data.
• -- Communicate authorization data.
• 3 Initiators Priced order requiring PCard
  authorization before shipment.
• 4 Terminators Return of authorization data.
• 5 Controlling factors Availability of P-card
  authorization systems.
• 6 Exceptions None
• 7 Pre condition PCard authorization required
  before shipment.
• 8 Post condition Authorization data received.
• 9 Desired Output Authorization data.
• 10 Input required to act Priced order requiring
  PCard authorization before shipment.
• 11 Output Authorization data -- approved or
  denied.

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Activity - Supplier Release Order

• 1 Definition Forward order data to warehouse for
  fulfillment.
• 2 Subactivities None
• 3 Initiators
• -- PCard authorized order.
• -- Order not requiring PCard authorization.
• 4 Terminators Order released.
• 5 Controlling factors Availability of supplier
  order fulfillment system.
• 6 Exceptions None
• 7 Pre condition Order is awaiting release.
• 8 Post condition Order has been released.
• 9 Desired Output Released order that fulfills
  buyer requirements.
• 10 Input required to act Order waiting release.
• 11 Output Released order

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Questions