August-Wilhelm Scheer Business Process Engineering Reference Models for Industrial Enterprises Second, Completely Revised and Enlarged Edition With 580 Figures, 26 Colour Springer-Verlag Berlin Heidelberg New York London Paris Tokyo Hong Kong Barcelona Budapest Professor Dr. August-Wilhelm Scheer Universitiit des Saarlandes Institut fUr Wirtschaftsinformatik Postfach 15 1150 D-66041 Saarbriicken, FRG Library of Congress CatalogIng-In-PublIcatIon Data Scheer, August-Wilhelm. Business process engineering: reference models for industrial enterprises / August-Wilhelm Scheer. -- 2nd, completely rev. and enlarged ed. p. cm. First ed. publ ished under title: Enterprise-wide data model I ing. Berlin: Springer-Verlag, 1989. Includes bibliographical references and index. ISBN-13:978-3-642-79144-4<U.S.) : DM128.00 1. Computer integrated manufacturing systems. 2. Management information systems. I. Scheer, August-Wilhelm. Enterprise-wide data modelling. II. Title. TS155.63.S33 1994 658.4'038--dc20 94-31047 CIP The first edition appeared in 1989 under the title "Enterprise-Wide Data Modelling. Information Systems in Industry". ISBN-13:978-3-642-79144-4 e-ISBN-13:978-3-642-79142-0 DOl: 10.1007/978-3-642-79142-0 This work is subject to copyright. All rights are reserved, whether the whole or part oft he material is concerned, specifically the rights oftranslation, reprinting, reuse of illustrations, recitation, broad casting, reproduction on microfilms or in other ways, and storage in data banks. Duplication ofthis publication or parts thereofis only permitted under the provisions ofthe German Copyright Law of September 9, 1965, in its version ofJune 24, 1985, and a copyright fee must always be paid. Violations fall under the prosecution act ofthe German Copyright Law. © Springer-Verlag Berlin· Heidelberg 1989,1994 Softcover reprint of the hardcover 2nd edititon 1994 The use ofr egistered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulati ons and therefore free for general use. 4212202-54321 -Printed on acid-free paper Preface to the Second Edition The first English-language edition of this book was published in 1989 under the title "Enterprise-Wide Data Modelling." It introduced a new enterprise data model that has since gone on to enjoy widespread use as a reference model. Since that time, the author has continued to develop the representation of application problems, both on a theoretical basis using modeling languages and on a practical basis using real-world studies. This has led to so many new aspects that this second English-language edition (the original German version is now in its fifth edition) constitutes a completely new book. The new title expresses the stricter emphasis on business processes in contrast to the previous edition, which was geared more toward a functional structure. This approach reflects the trend toward process oriented structural and procedural organization in enterprises that is currently being supported by new means of information processing. Perhaps the most obvious way in which the second English-language edition differs from the first is in the increased number of pages. This is a direct result of the higher degree of detail and the more thorough problem description presented in the new edition. The degree of detail has increased in the case of those problems that are particularly important in terms of selecting and designing information systems in an industrial enterprise, e.g., the product description and CAM factory organization. This approach provides greater reality and thus facilitates a better understanding of the complex organism that is an industrial enterprise. While data modeling dominated the first edition as the descriptive language for information systems, this edition pursues a holistic descriptive approach that is based on the Architecture of Integrated Information Systems (ARIS) developed by the author. In addition to the data view, this approach also comprises the function, organization and control views, and encompasses all phases of the information system VI Preface lifecycle-from analysis, requirements definition and design specification to implementation. The reference models developed here can thus serve as initial models for concrete applications. These ARIS-based problem descriptions inevitably contribute to the increased scope of the discussion. On the other hand, the redundant descriptions found in the earlier edition have been eliminated, e.g., the routine transformation of the entity-relationship models into the relational model. In this connection, only the transformation rules and a few examples are discussed. At the same time, more pronounced decentralization is pursued through the consistent concept of networked leitstand organizations, which offer good prerequisites for client/server information processing architectures. The illustrations are oriented even more strongly toward standard software in order to reflect their significance in terms of real-world representations. In particular, the discussion applies examples from the R/3 system from SAP AG and from the systems from IDS Prof. Scheer GmbH, which build on concepts developed by the author. No "user description" of concrete systems is provided; instead, general foundations are laid in order to facilitate a deeper understanding of the application logic that is reflected in standard software. An attempt is made to close the gap between business administration theory and the "operating instructions" of standard business software. An intensive discussion of the options for terminological generalization and specialization serves to incorporate a significant property of object oriented systems design into the model-namely, class formation. Typical applications for object-oriented representations are embedded in the ARIS concept. More effort has gone into the printing and graphics in the book, so that readability has not been sacrificed despite the increased scope and complexity involved. The graphical descriptive language and numerous illustrations are intended,to aid in providing a higher level of precision in terms of business-related representations. One advantage enjoyed by the earlier edition was the inclusion of a fold-out enterprise data model insert. This fold-out has guided many a systems developer and hangs on the office walls of numerous information managers in poster form to illustrate the problems involved in integration. However, the detailed, expanded ARIS views developed in this new edition no longer permit this form of representation. Consequently, only rough overall representations are provided, and the detailed models developed here are electronically combined into an enterprise model that will support particularly user-friendly analyses with the "ARIS Navigator" . Preface VII The author's recent books on business information science conform to the basic principle shown in Figure 01. Business information science serves as a facilitator between business applications and information technology. However, dual relationships exist between these two elements. On the one hand, information technology has to be analyzed as to the extent to sldaoU08 UO!IBJlS!U!WP'v' ssau!sns uo fi6010Ulpa.l UO!IBWJOJUI JO aouanuul -.. o biJ u:: VIII Preface which new technological developments can lead to new application concepts. This "direction of influence" is represented by the arrows shown on the left side of Figure 01. The description of the entire panorama of information technology is not the primary focus of business information science; instead, it concerns itself only with the segment that leads to changes in business application concepts. And it is on this area that business information science must concentrate particularly. The arrows on the right side of the diagram are intended to illustrate the influence that DP-oriented business concepts exert on information technology. They show that DP-oriented application concepts place demands on the further development of information technology to provide effective support for it. The author has examined both perspectives involved in this relationship in his book entitled "Principles of Efficient Information Management," which was published in its second edition in 1992. A further general business administration concept that analyzes the basic effects of information technology on business processes was discussed in the book entitled "CIM-(Computer Integrated Manufacturing)-Towards the Factory of the Future," which was also published in its second edition in 1992. Both books thus discuss general DP-oriented concepts that can serve as the point of departure for special DP-oriented solutions in enterprises. These types of general concepts are implemented by means of information systems. Information systems thus serve as concrete facilitators between general business concepts and information technology. Since information systems involve both the business-related subject level as well as information technology, they are correspondingly complex; as a result, they are categorized in order to reduce this complexity. The author's ARIS system-developed in "Architecture of Integrated Information Systems," which was published in English in 1992- represents an effort to address these issues. The present book, "Business Process Engineering-Reference Models for Industrial Enterprises," pursues these views and levels of information systems as they relate to an industrial enterprise. The business-related relevance of the tier concept for information systems decreases as one moves closer to the technical implementation phase. At the same time, the stability of the concepts decreases, since information technology, with its breathtaking pace of development, primarily influences the technical implementation of information systems. This principle is reflected by the emphasis of the problems treated here. On the whole, the objective of this book is to illustrate the multitude of informational and organizational problems involved in an industrial Preface IX enterprise in a more modern form, while simultaneously developing new DP-oriented solutions. This should not only be the function of business information science, but also of modern business- and manufacturing oriented industrial engineering. I wish to thank the translators Brian Gingerich and Sue Ellen Wright, the project coordinator Uwe Wiesemann, and, in particular, the reviser Michael T. Sherer, for the meticulous translation of the text into English. I would also like to thank Dipl.-Kfm. Volker Zimmermann for coordinating the translation, Dipl.-Kfm. Markus Remme for his comprehensive support during the preparation of the German edition, and Dipl.-Oec. Dagmar Reul-Schneider and cando rer. inform. Monika Kaiser, who produced the illustrations. My thanks also go to Carmen Kachler for her careful preparation and translation of the illustrations. I am also grateful to Lucie Bender for her organizational support and to all my assistants for their ideas and inspiration. Saarbriicken, August 1994 August-Wilhelm Scheer From the Preface of the First Edition In this book the design of the logical data structures occupies the foreground. For this purpose the design language of the entity relationship model is used. In recent years this language has proved an equally important tool for both the applications user and the information technology specialist. Since its creation in 1976 it has been further extended at numerous scientific conventions. At the heart of the book are the functional areas of an industrial firm. Although the data structures are thereby designed according to functional area the integration principle of supra-functional processing of tasks occupies the foreground. This book aims to achieve both a scientifically based procedural method and a practically relevant, tried and tested approach. The author's experience of developing and introducing integrated information systems in several large industrial firms is incorporated in the treatment presented. Saarbriicken, June 1989 August-Wilhelm Scheer Overview Part A: Architecture and Description of Integrated Information Systems A.I Architecture of Integrated Information Systems (ARIS) A. II Selecting and Representing the Description Methods Employed A.III Further Procedures Part B: Logistics Processes B.I Production Logistics B.II Inbound and Outbound Logistics B.III Human Resource Logistics B.lV Overall Concepts of Logistics Part C: Integrated Product Development Processes Teil D: Information and Coordination Processes D.I Accounting D.II Information Management Contents Part A: Architecture and Description of Integrated Information Systems 1 A.I Architecture of Integrated Information Systems (ARIS) 4 A.I.l Integrated Information Systems 4 A.I.2 The ARIS Approach 10 A.I.2.1 Descriptive Views 10 A.I.2.2 Descriptive Levels 13 A.II Selecting and Representing the Description Methods Employed 17 A.II.l Requirements Definitions 18 AII.1.1 Requirements Definition: The Function View (Functional Structure, Process Sequence, Processing Forms) 18 AII.1.2 Requirements Definition: The Organization View 23 AIL1.3 Requirements Definition: The Data View 30 AII.1.3.1 The Basic ER Model 30 All. 1.3.2 Extended ER Models 33 All. 1.3.2. 1 Extending the Model with Design Operators 34 AII.1.3.2.2 Event and Condition Representations 38 AII.1.3.2.3 Extended Cardinalities 39 All. 1.3.2.4 Identification and Existential Dependence 40 AII.1.3.3 Alternative Forms of Representation 41 All. 1.3.4 Establishing the Design Aids Used 43 AII.1.3.5 An Example 44