**5. Order-execution reference processes and inter-company interfaces**

In the course of the following chapters, the reference processes for the inter-company order execution of producers in non-hierarchical networks of the machinery and equipment industry are worked out. For this purpose, the order-execution tasks will be described in detail and put in their time-logical order within the corresponding order-execution process. In addition, the points of interaction, that is the informational inter-company interfaces, between the producer and the suppliers will be pointed out. There are points of interaction between the customer and the producer as well and these are also shown in the figures. As these points of interaction are not of primary interest in the context of the paper, they are only mentioned for the sake of completeness but are not further explained. With regard to chapter 2, the types of information exchanged at the producer-supplier interfaces will furthermore be determined.

Figure 9 shows a detailed overview of the process activities within the general orderhandling process in the machinery and equipment industry deviated from the Aachener Model for Production Planning and Control (PPC) (Schuh, 2006).

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Processes for Inter-Company Order Management 659

Fig. 10. Sequence of coordination points for bottleneck- and long-running products /

The procurement of a complex bottleneck product e.g. requires the order-handling process to start already during the bid preparation phase of the producer. The procurement demand

services

Fig. 9. Schematic overview of the detailed process-steps (Schmidt, 2008)

As stated before, the design of an optimal order-handling process is dependent on the product/service-type and the relationship type of each single transaction. The product/service-type determines the specific starting point of the order management process and its further handling. That means the product/service-type affects the consideration and order of the specific process steps performed for its accomplishment. The relationship-type determines the design and content of the coordination-points between producer and supplier. Consequently, the first step towards a configuration logic is the determination of the relevant type-specific process activities and their order on a gross level. These gross processes are visualized in Figure 10 in form of a process landscape.

Fig. 9. Schematic overview of the detailed process-steps (Schmidt, 2008)

These gross processes are visualized in Figure 10 in form of a process landscape.

As stated before, the design of an optimal order-handling process is dependent on the product/service-type and the relationship type of each single transaction. The product/service-type determines the specific starting point of the order management process and its further handling. That means the product/service-type affects the consideration and order of the specific process steps performed for its accomplishment. The relationship-type determines the design and content of the coordination-points between producer and supplier. Consequently, the first step towards a configuration logic is the determination of the relevant type-specific process activities and their order on a gross level.

Fig. 10. Sequence of coordination points for bottleneck- and long-running products / services

The procurement of a complex bottleneck product e.g. requires the order-handling process to start already during the bid preparation phase of the producer. The procurement demand

Configuration Logic of Standard Business

order execution (cf. KL 1 in Fig. 12).

proposal is submitted to the customer.

department.

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practical knowledge of the project team, has to be drawn in instead. The resulting project gross design already includes first make-or-buy decisions, which refer to main components and services. At that point, the feasibility of the components or services intended to be subcontracted, has to be discussed with potential main suppliers. This bilateral interaction and the corresponding bidirectional exchange of information between the producer and potential suppliers is the first producer-supplier-interface in the course of the inter-company

Proposals, which include all necessary schedule-, price- and specification-related information, have to be obtained by the producer at this point as aside from prevailing inhouse restrictions, the available resources of the potential main suppliers and their ability to

In the following, an outside-purchasing suggestion concerning the reservation of external production capacities and critical outsourced items is already forwarded to the procurement

The next task in the course of the bid preparation process deals with the determination of the tender price and other commercial conditions based on in-house calculations and information derived from the supplier proposals. Within the final task of proposal creation, the commercial and legal conditions for the making of the requested product or equipment as well as for its delivery are set and all relevant information (e.g. technical specifications, commercial and legal conditions as well as the basic project schedules) are eventually consolidated in a final proposal. The process of bid preparation is terminated as this final

deliver have to be taken into account when determining the date of delivery.

Fig. 12. Detailed structure of the bid preparation process (Schmidt, 2008)

has to be allocated via the procurement department, concretized during the project planning in terms of specification and availability and afterwards to be ordered by the procurement department and supervised in form of project monitoring. The process regarding an already known long-running product or service on the other hand starts within the project planning. When the long-running product or service has been requested and ordered by procurement, the progression of the purchased parts/services is also monitored.

Figure 11 illustrates which process steps are accordingly relevant for the order-management process to be analyzed – namely the bid preparation process, the project planning process, the procurement process and the monitoring and controlling process are illuminated as these process steps incorporate the main variables and leverages influencing delivery reliability in the focus of the determined product/service types of bottleneck- and longrunning-products/services.

Fig. 11. Gross structure of planning and order-handling processes in the machinery and equipment industry
