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Transcript of Mm Processes Presentation
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation2
WHAT ARE THE CHANGES AND BENEFITS…?• Creation of Different Document type for material and service PO for Raigarh and all out location.
• All new vendor code introduced with proper specification of vendor and combination of vendor class and
classification.
• Introduction of comparative statement and negotiation check list as per our requirement from SAP.
• Introduction of PR type –NORMAL PR and URGENT PR
• Budget Check introduced at PR and PO level
• Extra mandatory field introduced in PR screen
• PR/PO Release via WORK FLOW
• Reminders procedure at RFQ and PO
• PR release strategy material group vise eg,Special approval item –IT, Furniture and Air Condition items
• Introduction of business intelligence BI for reporting and MIS purposes.
• Emailing solution for RFQ and PO
• GR or Inbound Delivery on receipt of materials at Port
• contracts and scheduling agreement introduced
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation3
New changes relating to Store
• Gate entry in SAP Module
• Invoicing for returning materials to vendors by store
• Sub-contracting process
• Empty cylinders management
• Gr. With reference to OBD / STO
• Gr. for finished materials issued for captive consumption.
• Purchase made against Scheduling agreements
• Work flow for PR,Po and GR
• Storage location of each plant is redefined on the basis activity e.g. DRI-Electrical,DRI-mechanical etc
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation4
Organization Structure• Plants:
• 1101- First digit – Location, Second digit- Unit, Last two digits- Serial No.
• At the Raigarh location 3 Logical Plants have been created to serve as “General Plants”
corresponding to the units
• This would facilitate the business requirement of procuring MRO items for which ROP will
be maintained and also for common materials across units
• The physical plants (logistics plant) have also been created as plants. The Purchase
Requisition Document Type would be different for each location
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation5
Plant Nomenclature
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SAP Implementation | JSPL | Confidential © 2008 IBM Corporation6
REQUSITIONER FIELD
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SAP Implementation | JSPL | Confidential © 2008 IBM Corporation7
TRACKING NUMBER
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SAP Implementation | JSPL | Confidential © 2008 IBM Corporation8
Purchase Requisitions
• Requisition documents have been classified into :
• 1. Normal (Delivery date is as proposed by system based on planned delivery time, or a date after this)
• MRP generated requisitions will also be treated as normal PR’s.
• 2. Urgent (Required Delivery date is before the delivery date proposed by the system based on the
planned delivery time)
• Release strategy applicable is determined based on the following criteria:
• 1. Document type
• 2. Total Requisition value
• 3. Material group
• 4. Plant
• 5. Requisitioner
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation9
NEW PR TYPE
NORMAL PR –
Every material code in the material master has a specified LEAD TIME and as and when a requistioner is creating a PR, system will automatically calculate the delivery date for that material as per the lead time maintained and the delivery date field will be unchangeable.
URGENT PR –
When a requistioner require a material in lesser days other then specified the he/she will use urgent type of
PR and specified their required delivery date, here the delivery date field will be changeable
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation10
URGENT PR
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SAP Implementation | JSPL | Confidential © 2008 IBM Corporation11
URGENT PR
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation12
NORMAL PR
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation13
Additional fields in PR
• Following fields have been introduced and made mandatory at item level in the requisition
• Recommended source – (Y/N) Mandatory field• End Usage - (Y/N) Mandatory field• Whether AMC is required - (Y/N) Mandatory field• Whether spares are required - (Y/N) Mandatory field• Whether E & C is required - (Y/N) Mandatory field• Whether test certificate is required - (Y/N) Mandatory field• Last created PO number and gross price for the material in that specific region ( Raigarh /Angul / Patratu
etc) – Information • Contact person - (Y/N) Mandatory field• Phone number. - (Y/N) Mandatory field
• These fields will be editable till the PR is released for PO.
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation14
ADITIONAL FIELDS IN PR SCREEN
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SAP Implementation | JSPL | Confidential © 2008 IBM Corporation15
Additional fields in PR
SCREEN SHOT-ADD FIELDS_PR
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation16
Release strategies for RequisitionsRelease strategies for Requisitions
Note:
1. ‘GM IT’ or ‘GM HR’ will be a part of the release chain only when requisition has materials belonging to material groups ‘IT items’ or ‘HR items’
2. User will not be allowed to enter materials belonging to the material group ‘IT items’ or ‘HR items’ and materials belonging to any other material group, together in the same requisition.
3. The 'HOD USER DEPT.' (user) who is supposed to release a particular requisition will be decided on the basis of Plant
Requisition type
Requisition Value (INR)
Material group Plant Release authority
Normal 0 to 2500000IT / HR items/ Other groups ALL
HOD User dept
GM IT/GM HR/Store/PRCommitee
Normal > 2500000IT / HR items/ Other groups ALL
HOD User dept
GM IT/GM HR/Store/PR Commitee
ED
Urgent 0 to 500000IT / HR items / Other groups ALL
HOD User dept
GM IT/GM HR/Store/PR Commitee
Urgent > 500000IT / HR items / Other groups ALL
HOD User dept
GM IT/GM HR/Store/PR Commitee
ED
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation
Release strategy for Purchase Orders
• The Release strategy applicable and users who are supposed to carry out the release would be determined based on the following criteria:
1. Net PO Value
PO ValueRelease authority
0 to 2500000 HOD Purchase
> 2500000 HOD Purchase ED
2. Purchase Order Document Type
3. Plant
Note:
1. All PO’s ( Service or Material) will be released by HOD purchase and subsequently by ED if the designated value limit is crossed.
2. All the Strategies are in line with the Drishti recommendations.
2. Purchase Order Document Type
3. Plant
Note:
1. All PO’s ( Service or Material) will be released by HOD purchase and subsequently by ED if the designated value limit is crossed.
2. All the Strategies are in line with the Drishti recommendations.
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation18
How budget checks will happen in PR
Every plants is linked with WBS element and BUDGET
There is a report to check BUDGET Status of the respective department
System will automatically stopped the PR creation if budget will Excess than the allotted amount.
BUDGET amount will be updated on additional amount calculated at the time of preparation of PO/GR
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation19
Basic difference in WBS
Plant Maintenance Raigarh P01/PMM
Service Raigarh P01/PMS
Investment projects ……..like(All investment projects are start with first character is “I”)
2 MTPA DRI PLANT AND GAS. UNIT II1/GDR31
CEMENT PLANT IM1/CMT31Note:-
I-investment, - First DigitI-iron segment – Mines segment - Second Digit1-Raigarh location - Third Digit 31 – Plant unit-3 and serial no
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation20
BUDGET STATUS REPORT
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation23
What is work flow and how it work
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation24
Introduction of WORK FLOW
Work flow is introduced in system for batter tracking and prompt information of the every action to the end user
Release of PR and PO will happen via WORK FLOW
Work flow will inform each and every end user about their respective action so that lead time to perform a work will be laser and the efficiency will improve
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation25
Work flow process and flow chart
PR/PO CREATION BY END USER
A Email will trigger toRespective HOD’s
As and when PR will release by HOD a Email Will trigged to PR creator.
As and when a PO will placed for particular PRA email will trigger to end user
After PO release mail will trigged to purchaser/po creator for PO release information
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation26
Workflow - PR
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation27
Work flow related developments
Other intimations through mail:
When goods receipt is made against a PO, mail will be sent to the requisitioner and the buyer (purchasing group) in the PO line item
Mail will be sent to HOD stores and HOD purchase if goods receipt is not posted more than 3 days after the gate entry is made .
Mail Reminders and expeditors will be sent to vendors for PO/RFQ using standard transaction. Requirement for the same is entered in PO.
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation28
Negotiation checklist & quotation Comparison– Flow of events
A template ( excel sheet) forwarded to the vendor.
Vendor reverts with the filled sheet containing all the mandatory data like RFQ number, pricing conditions, payment terms and other custom fields:
Whether tolerance is allowed – (Y/N) Test & guarantee certificate requirements – (Y/N) Performance guarantee agreements – (Y/N) Third party inspection – (Y/N) QA plan to be followed by the vendor – (Y/N) Penalty clause – (Y/N) Incentive – (Y/N) Support service at commissioning – (Y/N) Mode of transport – (Text) Coverage details – (Text) Charges paid by – (Text) Whether cenvat documents will be provided – (Y/N) Payment terms – (From allowed values)
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation29
PROCEDURE FOR CONSUMPTION OF PLANT FINISHED PRODUCTS(CAPTIVE CONSUMPTION)
PROCEDURE FOR CONSUMPTION OF PLANT FINISHED PRODUCTS(CAPTIVE CONSUMPTION)
Raising of PRs by user
Preparation of STO by purchase
Arrangement made by logistic for
processing of delivery
Excise Invoice to be raised by marketing
Materials dispatch to required indented Dept.
Receipt acknowledgement by user
Hand over of documents to store for GR. By Marketing
Gr and issue posting by store
Hand over of excise docu.to Excise for modvate
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation30
Cut over strategy - MM
Gate Entry
• Manual record to be kept of incoming and outgoing vehicles during the transition period and to be immediately recorded the same in SAP after Go-live.
Open Purchase Requisition • The open PR list is circulated to all HODs.Edited Open PR for balance quantity will be
uploaded .
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation31
Movement Type WBS Remark
221
F/SP Not Allowed
PM Not Allowed
I/C Allowed
Z01
F/SP Allowed
PM Not Allowed
I/C Not Allowed
261
F/SP Not Allowed
PM Allowed
I/C Not Allowed
Reservation - MM
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation32
Cut over strategy - MM
Open Purchase Orders
• As far as possible Vendors should be informed to expedite the dispatches so that maximum number of Po’s can be foreclosed in old system.
• No POs should be made after a cut-off date of 25th October • Short Closure of Open Orders in old system • Open POs will be uploaded on 1st of Nov in SAP for with open quantity as on 31st Oct • Open PO data in the prescribed format to be furnished by Business • POs should include all types including Project purchases.
• Separate document type to be maintained for legacy PO for identification and without release strategy.
• Open PO volume is close to 4000 line items
Global Business Services
SAP Implementation | JSPL | Confidential © 2008 IBM Corporation33
Cut over strategy - MM
Stock Upload
• Stocks as on 31st October will be collected in the prescribed format and should be made
available by 31st October midnight for data preparation and upload.
• Stocks will be uploaded with Value provided and validated by Business
• Stocks to be uploaded plant wise with value and will be signed-off by Business
• 14000 Stock items have been listed Stock-in-Transit
• Stock in transit should be avoided as far as possible by expediting the dispatches from
locations to locations before 28th October
• If at all there exists the Stock-in-transit then it will be considered as upload stock for
receiving plant/location.
• Business will keep manual record of such transactions for tallying the stock on actual
receipt.