Multisite example - LN enterprise model of the aircraft manufacturerThe aircraft manufacturer is modeled using the various Enterprise Modeling Management building blocks available in LN. Companies The aircraft manufacturer is modeled as a logistic company and a corresponding financial company. The aircraft manufacturer is modeled as a logistic company because in LN, a logistic company is used to maintain companywide transactional data and logistic and commercial master data. Because financial reporting is performed centrally, and all parts of the organization are part of one legal entity, one financial company is also defined for the aircraft manufacturer. This diagram displays the enterprise units, sites, departments, and warehouses involved in the logistics, production, and financial flows of the aircraft manufacturer: Enterprise units To reflect the financial flow of the aircraft manufacturer, each production unit is modeled as an enterprise unit. Production unit A is modeled as enterprise unit EUA, production unit B is modeled as enterprise unit EUB, and production unit C is modeled as enterprise unit EUC. Sales unit S is modeled as enterprise unit EUS. Enterprise unit EUA includes all facilities, such as warehouses and work centers, involved in the production of the oxygen masks and the Eagle Long Range. It does not include the finished goods warehouses, from where the completed aircraft are shipped to the customers. Enterprise unit EUB includes these entities:
Enterprise unit EUC includes these entities:
Enterprise unit EUS includes these entities:
In LN, an enterprise unit represents a part of an organization that is responsible for its own financial management. An enterprise unit thus reflects the financial flow of a business unit. Also, standard costs are defined by enterprise unit. Each production unit, and the sales unit, must be defined as separate enterprise units. This is because the aircraft manufacturer performs management accounting at the unit level, and the standard costs are different at each production unit and the sales unit. Sites To reflect the production and logistics flow of the aircraft manufacturer, these sites are defined:
The sites have been modeled to allow you to define this data:
Site subentity settings For the sites, these subentity settings are required:
Warehouses The shop floor warehouses, normal warehouses, inspection warehouses, and finished goods warehouses of each production unit are defined as warehouses in LN, and linked to the site where the warehouse is located. Except for the finished goods warehouses, the warehouses of each site are also linked to the enterprise unit defined for the production unit. The finished goods warehouses of each site are linked to enterprise unit EUS for these reasons:
To define the intercompany trade price between each production unit and sales unit S, these intercompany trade relationships must be set up:
Thus the finished goods warehouses are linked to the site of the production unit to which they belong, and to the enterprise unit of the sales unit. In this way, the logistic data of the site, such as lead times and the carrier, and the standard costs of the enterprise unit apply to the finished goods warehouses. Offices
The sales office of sales unit S is defined as sales office SO, because commercial data such as the sales price and sales order data are defined in sales offices in LN. Sales office SO is linked to enterprise unit EUS, because management accounting is performed at unit level and sales office SO belongs to sales unit S. The sales office is linked to site SA to indicate that the sales office is located at site SA. Purchase office PB is linked to site SB, because it is located at site SB and the purchase price of the oxygen masks is defined at site level in LN. Purchase office PB is linked to enterprise unit EUB, because the aircraft manufacturer performs management accounting at unit level. Also, the financial transactions involved in the purchase of the oxygen masks at production unit B must be booked in the financial company, which is linked to enterprise unit EUB. Similarly, purchase office PC is linked to site SC and enterprise unit EUC. Work centers The work centers and production halls of each production unit are defined as departments of type work center in LN, and linked to the site defined for the production unit. Planning clusters Because each site performs its own production planning, a separate planning cluster is defined for each site. For site SA, planning cluster PLA is defined. For sites SB and SC, planning clusters PLB and PLC, respectively, are defined.
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