Chapter 7

Conversion
Business Process

Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
 Learning Objectives
• LO#1 Describe the business activities that comprise the
conversion process
• LO#2 Develop an activity model of the conversion process
using BPMN
• LO#3 Understand and apply different activity modeling
options
• LO#4 Develop business rules to implement controls for the
conversion process
• LO#5 Develop a structure model for the conversion process
using UML class diagrams
• LO#6 Implement a relational database from the UML Class
• LO#7 Diagram of the conversion process
7-2
 LO# 1

Review of Conversion Accounting

7-3
 LO# 2

Sunset Graphics Conversion Process

1. When the quantity on hand of a product dropped below the
minimum level, the item manager authorized production to
increase the quantity on hand.
2. Based on the bill of material for that item, they issued
material into work in process.
3. Sunset partners then constructed the items.
4. Upon completion, the products were placed in inventory.

7-4
 LO# 2

Basic Purchases BPMN Activity Model

The basic activity model implements the process steps.

7-5
 LO# 3

Refining the Model with Swimlanes

The inventory manager tracks inventory

levels and authorizes new production

The conversion partners set up batches

and perform work to create finished signs
and banners

First, define one pool and swimlanes showing functional

responsibility. 7-6
 LO# 3

Refining the Model with Swimlanes

Then, define the steps performed by each function.

7-7
 LO# 3

Refining the Model

Process flow loops until Intermediate error event interrupts flow if

the batch is complete inspection failed

7-8
 LO# 3

Refining the Model

Second loop in process flow until all batches are complete

7-9
 LO# 4

Business Rules Examples for Conversion Process

Process Steps Intention Partner Access Controls Application
Authority/Action Controls

Authorize Partner with proper Supervisor must Partner authorizing System must provide
Production authority authorizes authorize production production cannot authorization order
production to ensure > $5,000. modify inventory number control,
finished goods records default values, range
available to meet and limit checks, and
expected demand create audit trail

Issue Raw Issues from raw Partner issuing Partner recording System must only
Material material according to material must not be issue of material allow partner to enter
bill of material same partner that cannot modify bill the number of items
recorded accurately authorized of material issued based on bill of
production material, subject to
range and limit checks
on quantities

7-10
 LO# 4

Business Rule Types

Supervisor must authorize Example of Obligatory rule –

production > $5,000. states would should occur

Partner issuing material must Example of Prohibited rule –

not be same partner that states what should not occur
authorized production

7-11
 LO# 5

Sunset’s Basic Conversion UML Class

Models

1. Authorization
2. Which finished goods to
produce
3. Records R/M Issue
4. Specifies the bill of
materials
5. Records use of labor

7-12
 LO# 5

Revised Conversion UML Class Diagram

Bill of materials promoted to

Type Image

Partners responsible for

specific Product Categories

7-13
 LO# 6

Implementing UML Diagram in a Database

Database will contain 8 tables to implement classes and 2 linking tables

for the relationship between Purchases and Products. 7-14
 LO# 6

Posting Foreign Keys Example

Which tables will get foreign keys?

Foreign keys implement links for one-to-many relationships.

7-15
 LO# 6

Database Relationships

Blue arrow highlights linking tables to implement the

two many-to-many relationships. 7-16