Download - MM Presentation Inventory

8/10/2019 MM Presentation Inventory

1/94

UTKARSH ERP / MES Project at Bhilai Steel Plant

E

RP/MES

ERP-MM

inBHILAI STEEL PLANT


2/94


E

RP/MES

MM

Materialsprocurement

Servicesprocurement

InventoryManagement

Raw Materials

SuppliersRelationshipManagement

(SRM)

ERP - MM Module

MAJOR SUB MODULES


3/94


E

RP/MES

Major Processes Covered

Process Functional Coverage

Procurement of

Materials

PRTendering (ECC & SRM)PO

Procurement of

Services

PRTenderingPORA / Final Bill

InventoryStores& Spares

ReceiptStockTransferConsumption

Inventory Raw

Materials

ReceiptStockTransfer

Consumption

ERP - MM Module


4/94


E

RP/MES

Bhilai SteelPlant

Works

1000

Non Works

1100

Township Medical

Mines

1200

IOC (Rajhara)

Nandini

Hirri

ERP - MM Module

Organization Structure


5/94


E

RP/MES

Plants 3

Fund Centers 1122

Purchasing Groups 243

Storage Locations 1170

Purchase Organizations 6

Users(Internal) 4000 +

Users(External) 4847

ERP - MM Module

Organization Elements


6/94


E

RP/MES

Materials Procurement

ERP - MM Module


7/94UTKARSH ERP / MES Project at Bhilai Steel Plant

E

RP/MES

ERP - Procurement of Materials

Indenting Agencies (identifiedby Fund Centres)

All Shops (for direct procurement

items)

Stock Control (AP items)Mines Stock Control (Mines AP

items)

Central Indenting Agencies (e.g.

Rolls, Refr., Electrodes,

Bearings etc.)

Medical

Procurement Agency:Different Sections of

Purchase Deptt.

Mechanical

Electrical

Consumable

Raw Material

RefractoryImport

Capital -AMR

Medical


8/94


9/94


E

RP/MES System Configuration Statistics

Purchase Officer Derivation based On Material Group, Subgroup,Procurement Source & Account Assignment Category .

Fund Centre wise CENVAT , VATITR & Conc. CST applicability

Fund Centre wise Indenters , Head of sections , HODs maintained & for350 fund centers ) for online movement of Purchase Requisition along with50 codes for screening committee members , for online routing of PRsthrough different screening committees

Release strategies for online PR screening : (about 100 variations havebeen configured to take care of PCP & BSP requirement

Online approval of Enquiry Proposal: 25 different release strategiesdefined in system for each of 90 Purchasing Groups, with respectivehierarchies.

Procurement ProcessMaterials (Indent to Order)


10/94


E

RP/MES System Configuration Statistics(contd..)

Purchasing group details (purchase officer details: name designation,mobile no., phone no. , e-mail id ) , used in all print documents &display.(maintained for 90 Purchasing Groups )

Pricing schema : handled by four major schemas : domestic , import ,lube , medical , by combination of different conditions of Price , TaxSchema (Excise & Sales Tax conditions ) , Freight , Service Tax ,Insurance , Entry Tax , Import related conditions, etc. About 50 conditiontypes are being used to handle the requirement based on Setoff & Non-setoff requirement.

Tax schema & payment terms

Message types : for printing various layouts ( RFQ / PO / AMDT /reminders / SODC - laser , dmp , e-mail )



11/94


E

RP/MES System based Process flow

Purchase Requisition creation & Screening Process :

Different types of PR :

Standard Revenue (Non-Prop)

Proprietary

Capital AMR Non-Plan (NPCB)

Annual Requirement certified PR

Low Value certified PRs

PR for SODC Contracts

PR for Single Tender procurement



12/94


E


Agenda for Screening: Provides powerful information at a glance, for screening /decision making & can be viewed / printed on real-time basis. Contains followinginformation :

Consumption of last three years ,

Stock (Ind / Imp / Repaired / Prod. Stock (Make item stock) ,

PO Dues , PR Dues (Plant wise as well as Fund Centre wise ) , Last PO Details (Plant wise) ,

Details of PRs raised for the item

Online Release (Screening & Approval ) of Purchase Requisition as per PCP , andNotified Screening Committees & Defined DOP for approving ScreeningCommittee recommendations & relevant PCP clauses exempting screening .Provision for capturing Internal Noting (of each releasing level)

Committee meetings have been discontinued.

(About 95 meetings, attended by almost 15-20 Indenters / Screening Committeemembers, used to be held annually, consuming about 3-4 hours.



13/94


E

RP/MES

System based Process flow PR Print (can be viewed / printed anytime ,by any user : Indentor / Purch.Officer)

Creation of Case File Number, with or without clubbing of PRs & also routing thecase through ECC or SRM, based on total case file value arrived at.

Tendering Process

Enquiry Proposal generation.

All variations covered : Limited / Single / Proprietary / Sister units ) , Single part /two part / three part , Ancillary reservation, Provisional vendors , (x+2) deviation .

Provision for freezing certain commercial terms like payment terms, FOR termsFreight terms, etc.

Mapping done for Indigenous, Import, Open Tender (Ind) , Global Tender , alongwith different layouts .



14/94


E

RP/MES

System based Process flow Online approval of Enquiry Proposal as per P2K and local DOP. 25 different release

strategies defined in system for each of 90 Purchasing Groups, with respectivehierarchies. Provision for capturing Internal Noting (of each releasing level)

Vendor Selection help reports - Vendors by previous POs, Vendors by previous

enquiries (by fetching tendering data from ECC & SRM both), Registered Vendors.

Extension of due date with or without addition of vendors , taking into accountresponse of vendors , printing of extension letters & Price bid intimation letters.

T.O.C activities / Tracking of Tenders :



15/94


E


Quotation receipt capturing and quotation opening process along with approvalprocess for (x+2) deviation / price bid opening for two-part tendering mapped.Quotation Maintenance.

Registration of EMD against ECC & SRM tenders, BG / SD.

Comparative Statements (Tech. / Comml. / Price ) for Indigenous , Import / Global

Creation of Purchase Order / Contracts :against vendors finalized in ECC

against vendors through SRM route

Different variations mapped: Indigenous, Import, Medical, SODC, Capital AMR /NPCB, IPT, with development of corresponding layouts of Purchase Orders &Contracts.

Pre Dispatch Inspection: Call Letter Registration & Inspection Certificategeneration.

Amendment Process (Indigenous & Import )



16/94


E

RP/MES

Compliance PR creation & Screening is as per PCP & defined DOP.

Enquiry Proposal approval is as per PCP & defined DOP.

Classification of vendors as per government guidelines.

CS preparation & Evaluation of offers.

Capturing of internal noting in system, on real-time basis, with user identification &current Date - time stamping.

Hierarchy of Indenters, Purchase mapped in system, along with authorizations, asper office orders issued from time to time.



17/94


E

RP/MES

BenefitsPurchase Indenting & Screening Process :

Entire process of Indenting & Indent Clearance is totally online & transparent.

E-mails/Alerts at every stage, into the inbox of concerned user.

Elimination of physical meetings, resulting in better time utilization by all concerned.

(About 95-100 meetings used to be arranged annually, for different nature ofscreening committees , involving 15-20 Indenters & consuming 3-4 hours permeeting. This has been totally eliminated.)

Reports for planning / screening / tracking & monitoring.

Screening Committee Agenda generated by system, on real-time basis, which is

very useful, for decision making.



18/94


E

RP/MES

Benefits Effective Budgetary Control in procurement cycle. High level of flexibility to Indenter,

for adjusting budget, dropping of Indents, reducing dependence on any otheragency.

Enquiry Proposal & Tendering Module:

Approval of Enquiry proposal is totally online. Implementing this thru system, asper DOP has ensured uniformity in interpretation across different sections inPurchase.

Ease of tracking status of approvals in Enquiry Process and tracking of tenderresponse & opening.

Comparative Statement Preparation through system.

Purchase Orders :

All cost elements mapped in PO value, by proper definition in master data.



19/94


ERP/MES

BenefitsInspection Module :

Inspection certificates for Vendors site inspection can be generated and printed byInspecting officers even from Resident offices, which are connected throughEnterprise portal.



20/94


ERP/MES

Suppliers RelationshipManagement(SRM)

ERP - MM Module


21/94


ERP/MES

COVERAGEOnline Tendering

Limited Tender(Single Part)

Limited Tender (Two Part) : was not available in standard SRM module;implemented by integrating c-Folder(collaboration folder) system.

Single Tender

Proprietary tender

Open Tender

Diversion of Tender by manufacturer to his/her authorized dealer.

Online generation of Bid Statements and Price Comparative Statement(C.S)



22/94


ERP/MES

COVERAGEQueries for Vendors

Online display of Purchase Orders to the vendors.

Online display of Status of materials supplied to the vendors (Supplied Qty.,Accepted/Rejected Qty., GRN No.)

Online display of Payment status (Bill registration, Bill passing, Cheque details) tovendors.

(All vendors transactions are regulated by user-id & password and they can

access only the data which is relevant to his/her domain)



23/94


ERP/MES System Configuration Statistics


USERS 5287

Purchase Groups 90

Roles 137

Release Strategies

with all variations

520


24/94


ERP/MES

SAP MM(ECC) SRM E-Tendering

Create & Release

Purchase Requisition

Sourcing Cockpit

Create Bid Invitation

Publish Bid InvitationAutomated email to

Suppliers

Create a Case and

transfer to SRM

Vendor Access

Vendor submits Bids

Draft Purchase Order

ERP : e-Procurement of Materials

on SRM platform : Single Stage e- Bidding Process

Technical, Commercial

and Price Bid opening

in single stage

Final Purchase Order

Online Approval as per

DOP


25/94


ERP/MES

SAP MM(ECC) SRM E-Tendering cFolder

Create & Release


Sourcing Cockpit

Upload Tender

Documents, Drawings

in Public Area

Vendor uploads Bid

documents in Private

Area

Evaluation of

Commercial Bids by

Purchase Officers

Online TechnicalRecommendation by

Indenting Officers in

Internal Area

Create Bid Invitation

Create c Folder

Online Approval &

Publish Bid Invitation

Automated email to

Suppliers

Create a Case and

transfer to SRM

Vendor Access

Vendor submits Bids

Techno-comm

Acceptance/Rejection

of VendorPrice Bid opening and

Evaluation

Draft Purchase Order

ERP : e-Procurement of Materials

on SRM Platform : Two Stage e- Bidding Process

Techno-Comm Bid

openingFinal Purchase Order


26/94


ERP/MES SRM E-Tendering cFolder

Indentor canview/print vendors

attachments in

Private Area

Indentor can finallyattach his/her

technicalrecommendationin Internal Area

Indentor can

view/printPurchaser officersattachment inPublic Area

Purchase Officerforwards the

Tender toIndenting officerafter opening of

Techno-commercial bids

Techno-commAcceptance/Rejecti

on of Vendor

ERPe-Procurement of Materials

Online Techno-commercial recommendation by Indentor

Indenor logs intoSRM

Indentor canview/print vendors

remarks


27/94


ERP/MES

Compliance

All e-tenders are available through guest login; meets CVC criteria to display alltypes of tenders (single, limited as well as proprietary) through public domain.

X+2 validation for issue of tender meets PCP guidelines

Purchase Organization mapped and maintained.

Local DOP implemented in the system for issue of tenders

Existing procedures for tender opening are completely mapped in electronic tenderopening.

SSL & DMZ implemented for secure internet transactions



28/94


ERP/MES

Benefits Guest Login Functionality :

I. All live tenders are available (display only) on SRM portal without anyuser-id and password which fulfills major CVC guidelines.

Complete Paperless Transaction:

I. No hardcopy of tenders are sent, neither any hard copy offer isreceived; Environment friendly and direct savings on account of printingcost of tender documents.

II. Provision for uploading all types of documents, drawings, catalogs

Automated e-Mail to vendors to inform dates for Techno-commercial andprice bid opening.

ERP - Procurement of Materials :SRM


29/94


ERP/MES

Benefits Provision for freezing various commercial parameters :

Reduces tender processing time by bringing all party at par fromthe beginning of tendering stage.

Automatic derivation of DOP :

Purchase officers need not mark the tender every time to differentapproving officers.

Online availability of Bid Statement documents immediately afteropening of offers :

No need for vendors to be physically present at Tender opening

cell to get these offer data.

Online Technical Recommendation :

Elimination of physical file movement between purchasedepartment and shop reducing minimum 5-7 days of cycle time.



30/94


ERP/MES

Benefits System generated Price Comparison Statement(C.S.) :

There is provision for inputting Loading Factor for variouscommercial conditions, e.g., Freight to pay, insurance as per BSPopen policy, etc. for suitable loading against a party to bring them

at par. No manual intervention in C.S.; % deviation from theestimated rate and Ranking of all the parties is also calculatedand displayed in the system generated C.S.

Online Diversion of Tender :

Manufacturer can divert their e-tender online to their Dealers; nomanual intervention is required. Once diverted, all furthercommunication is addressed to both of them automatically by thesystem.



31/94


ERP/MES

Benefits Online access to all necessary information for vendors:

Reports on PO

Reports on status of supplied materials(CCN, movement type103 and 105 status)

Payment Reports(Bill registration, bill passing, cheque no. andamount) for all vendors and service contractors.

Open Tendering :

Entire tender documents are accessible to anybody through c-

folder. Linked to back end system(ECC) for EMD capturing against e-

Tender.



32/94


ERP/MES

InventoryStores & Spares


33/94


ERP/MES

COVERAGE

All Inventory transactions for Stores & Spares and Minor Raw Materials in areas

of Works, Township, Hospital and Mines are being carried out in SAP .There is

no transaction outside SAP.

All Departments of BSP are customers of ERP MM Inventory system for

managing Material Requirements.



34/94




No of Plants : 3

No of Storage Locations being operated in the system : 1170

No of Users : > 2000

No of Document types for STO : 5


35/94




Plant : 1000BSP Works

Storage locations Receiving Material against Purchase orders :

start with U.

Boria Stores (UB*)22

Plant Spare Stores (UP*)12

Refractory Stores (URF*)7

Central Plant Stores (UC*)13

Shop Storage Locations receiving material from Main Stores startwith X* ( All major shops covered )

No of operational Shop Storage Locations : 255


36/94





Disposal Stores :

Old Disposal Stores locations start with D*

Main locations receiving material from outside through Rail andRoad : 9

Lot locations for auctioning the material : 275 locations


37/94





New Disposal Stores locations start with N*

Main locations receiving material from outside through Rail andRoad : 3

Lot locations for auctioning the material : 85 locations


38/94


39/94




Plant : 1100BSP Non-Works

Medical Locations start with H* ( JLN locations , Sector-7 HC ,

MMP1 , Sector -1 Hosp , JLN Substores )

Medical Storage locations Receiving Material against Purchaseorders start with HS* - 5

Health Centre Locations start with HC* - 17

JLN Substores locations start with HJ* - 3 Medical Mines Storage locations start with HM*

Rajahara1 , Mahamaya1 , Nandini1 , Hirri -1


40/94




Plant : 1200BSP Mines

Rajahara8 locations

Dalli5 locations Nandini5 locations

Hirri4 locations

These locations do external receipts ( receipts against PO ) and

receive material from BSP main stores also.


41/94


ERP/MES Main Stores Activities

(Plant , Mines , Medical)

Indigenous Purchase Orders

Imported Purchase orders

Project Purchase orders

Incoming Excise Invoice Capturing

UD in case of material Inspection at stores. UD done byInspection department.

Vendor Returns in case of rejection.

Excise invoice generation through system.



42/94



(Plant , Mines , Medical)Activities on system :

Creation of CCN (consignment control number on receipt

of consignment) RN creation (movement type : 103)

Excise Invoice capturing and Part1 updation duringMIGO and afterwards by J1iex_c , J1i5

UD by Inspection department.

RC creation ( Release of GR Blocked stock105)

Vendor Returns (124)

Excise Invoice GenerationJ1



43/94








LSHS receipts through RAIL. ( wagon trackingreceiptsby EMD)

SODC procurement and receipts.

Liquid oxygen (direct delivery to OP-II)

UD in case of material Inspection at stores. UD done by

Inspection department.



44/94


45/94


ERP/MES Main Stores Processes (Plant , Mines , Medical)

External PO Receipts against Indigenous, Imported,

Project Purchase orders.

Activities on system :

Creation of CCN (consignment control number on receiptof consignment)

RN creation (movement type : 103)

UD by Inspection department.

RC creation ( Release of GR Blocked stock105)



46/94




Vendor Returns in case of rejection.

Excise invoice generation through system.

LubeVendor Managed Inventory process.

Activities on system :

Creation of CCN (consignment control number on receiptof consignment)

RN creation (movement type : 103)



47/94








LSHS receipts through RAIL. ( wagon trackingreceiptsby EMD)

SODC procurement and receipts.

Liquid oxygen (direct delivery to OP-II)

UD in case of material Inspection at stores. UD done byInspection department.



48/94


ERP/MES Main Stores Processes (Plant , Mines , Medical)

Capturing of Excise Invoice during GR and sometimesafterwards on receipt of DFT.

Vendor returns in case of rejected material.

Excise Invoice generation by stores.



49/94

ERP Inventory Management - Stores & Spares


50/94


ERP/MES

Other Inventory Processses

Physical Inventory Process andStock Verification

Disposal Stores ManagementRoad and Rail Receipts

Reservation Creation Project /Turnkey/ AMR

Other Inventory Processes

Expiry Date monitoring /

replacment in Medicines


51/94


ERP/MES

Compliance

All Stores procedures as per management guidelines are fully complied with

Minimum shelf life requirement taken care at the time of receiving such

materials.

All accounting and Inspection related guidelines are being followed.

Item issue planning and Door delivery to shop storage locations as per

Management guidelines.



52/94


ERP/MES

Benefits

Stock visibility throughout the Works, Township and Mines area possible in

a single transaction

Online release of store indents by various central controlling agencies

On line stores requisition generation by all users and door delivery of

stores to various shops possible through the system

GRN created in the system with full validations, as such no physical copy is

required by any agency including finance and suppliers

Consumption posting from shop storage locations on actual usage of

materialmore accurate inventory and consumption figures



53/94


ERP/MES

Procurement of Services

ERP P t f S i


54/94


ERP/MES Nodal Agencies

Contract Cell (Works)

Contract Cell (Non Works)

Contract Cell (Mines)

Mines Headquarter

Rajhara Mines

Nandini Mines

Hirri Mines

Contract Cell (MM-Stores)

Revamping Cell (RVC)

Refractory Engineering Dept. (RED)

Electrical Repair Shop (ERS)Industrial Engineering Dept.

Finance

O&M

CPD (For Machining Rate Contracts)

Types of Service Procurement

Rate Contracts (Civil, Electrical,

Mechanical, Refractory, Beico Lawrie)

HSCL Rate Contracts

Tendered Service Contracts

Value Contracts

Regularization of Emerg. Service Orders

Transportation Contracts

Miscellaneous payments

Capital Budget cases for Services

Sub Contracting Order for Machining Rate

Contracts

ERP - Procurement of Services

ERP P t f S i


55/94


ERP/MES

System Configuration Statistics

Plant 3

Purchase Organization 2 (Service Contract cells & CPD)

Purchase groups 40

Fund Centers 1170

Release Strategies 410

Roles 4000+

Users 2000+


ERP P t f S i


56/94


ERP/MES

System based Process flow

Purchase Requisition creation

Release of Purchase Requisition as per PCP and local DOP. 18 different

Release Strategy ranging from 3 levels to 8 levels defined for this purpose.


Tendering Process

Enquiry Proposal generation

Online approval of Enquiry Proposal as per PCP and local DOP. 250

different release strategies defined in system for this purpose.

Quotation receipt capturing and quotation maintenance based on Tender

documents received.


ERP Procurement of Services


57/94


ERP/MES


Comparative Statement & Price comparison generation through the system

Purchase Order / Contracts generation and creation of sub-orders against

value contracts.

Purchase order release as per PCP and local DOP. 140 different Release

Strategy ranging from 3 levels to 8 levels defined for this purpose. Approvals up

to MD mapped in the system.

Service Entry Sheet ( RA/Final Bill ) creation.

Service Entry Sheet release mapped in 2 levels.

Service codes have been made mandatory for creating any service PR and

no PR or PO can be created by specifications in the form of free text




58/94


ERP/MES


Sub Contracting Order for Machining Rate Contracts. The machining rate,

freight conditions derived from conditions maintained in the system. The

conditions are derived as per the machining rate and routing table maintained

in the system Miscellaneous payments




59/94


ERP/MES

Rate ContractPR

Rate ContractPO

Tendering PR EnquiryProposal

PurchaseOrder

RA Bill / FinalBill

RA Bill / FinalBill

HSCL RC PR HSCL RC PORA Bill / Final

Bill

PR for ValueContract

EnquiryProposal

Contract ->Sub Order

RA Bill / FinalBill





60/94


ERP/MES Compliance

PR Screening process as per PCP and local DOP

Enquiry proposal approval as per PCP and local DOP

PO approval as per PCP and local DOP

Rate Contracts Operating procedures

Payment of Additional Welfare Amenities to Contract Labour against the

Service Contracts (POs) in ERP system through Service Entry Sheet as per

the Government directive and locally defined procedure.




61/94


ERP/MES Benefits

All Procurement of Services are on ERP

DOP mapped in the ERP System

Procurement of Services through rate Contract streamlined in ERP

system

Screening Committee Agenda being generated by the system

Online approvals for Purchase Requisition, Tendering, Purchase Order

and Service Entry Sheet

Approval Noting and Movement of Purchase Requisition, Tendering,

Purchase Order being captured in the system

Comparative Statement being generated in the system




62/94


ERP/MES

Benefits

Rationalization of Payment terms in Service Contracts done. Almost 100%

cases are covered in 2 payment terms.

Measurement Book mapped in ERP through configuration of Service

Entry Sheet and development of print for Measurement Book.

Online Liability statement generation for Half Yearly / Yearly Closing.

Deviation Statement is being prepared in the system



63/94


ERP/MES

Inventory - Raw Materials

P t P M t i l (I d t t O d )


64/94


ERP/MES

COVERAGE

All raw materials receipt through Rail and Road procured through Central Agencies(CMO, CCSO), BSP purchase department, other plants, RMD (SAIL) and CaptiveMines.

Issue of Raw Materials

Physical Stock verification

RR and Pilot linkages and claims




65/94




No of Plants : 3

No of Storage locations : 43

No of Roles : 51

No of Users : 104



66/94


ERP/MES

System based Process flow Complete material flow and accounting on system.

Tracking of every wagon and its status (Linked, NR) with reference to Pilotand RR.

Complete information of truck receipts along with Weigh Bridge data andquality information.

Integrated process of captive mines starting with Dispatch posting frommines and ending on receipt and consumption of materials at BSP.



67/94


ERP/MES

Inventory - Raw Materials : Receipt by Road

BSP Weigh Bridge Raw Mat Dept Quality

TruckArrival atGate

Reporting atRMD

Un-loading ofTruck

AutomaticInspection Lot

Creation

Quality ResultRecording

Truck EntryInside Plant

PhysicalSampling

GR Posting ofTruck

Gross WeightEntry Physical OK

Tare WeightEntry


68/94


ERP/MES

InventoryRaw Materials : Captive Mines Receipt

BSP MINES COSTING QUALITY

STO creation

DeliverySchedule

Rake Receipt atBSP

Goods Receipt

Posting at BSP

RakePreparation

Rake Dispatchto BSP

CO ProductionOrder

Creation ofSTOCK at Mines


Creation



69/94


ERP/MES

InventoryRaw Materials : Non Captive Rail Receipt

Rake Arrival RR Available RR Not Available Quality

Rake Arrival

Pilot DetailEntry

GR Posting forLinked/Unlinked

data

NR and ULwagons

treatment

GR against PilotData

Adjustment GRposting after

Linking


Creation


RR Detail Entry RR Pilot LinkingRR Pilot Linking

NR and ULwagons

treatment


Creation

Proc rement Process Materials (Indent to Order)


70/94


ERP/MES

Compliance

Compliance with Raw materials accounting practices applicable to majorraw materials.

The mapped process fully complies with Sampling and result recordingprocess for Quality results eg. 5-6 wagons are clubbed together for takingsample of Rail receipts. Road receipts are clubbed for the purpose of

sampling based on Purchase order quality conditions.


ERP P t f M t i l SRM


71/94


ERP/MES

Benefits

Online booking of receipt, consumption along with automaticfinancial entries.

Information about inventory of raw materials is now availablethrough ERP system.

Easier tracking of wagons and its status with respect to Pilots andRRs (unlinked /not received/claimed).

Quality results linked to receipts giving unified view to Financeofficers for payment processing.




72/94


ERP/MES

Thank You



73/94


74/94

Compliance features : Procurement Process


75/94


ERP/MES

Compliance to guidelines

PR creation, Screening and EP approval as per PCP &defined DOP

Classification of vendors as per govt guidelines

CS preparation & evaluation of offers as per IPSS

Capturing of internal notings of users in system

Hierarchy of Indenters, Purchase (integrated with

DOP) mapped in system

CVC guidelines on system requirement for e

commerce applications complied

Rate Contracts Operating procedures

Payment of AWA to Contract Labour as per the

Government directive and locally defined procedure.

Compliance features : Stores & Spares and Raw Materials


76/94


ERP/MES

Compliance features : Stores & Spares and Raw Materials

Compliance to guidelines

Raw materials accounting practices related to

Inventory, Handling loss and consumption

Quality Sampling norms for road and rail receipt

All Stores procedures as per management guidelinesare fully complied with

Minimum shelf life requirement taken care at the time

of receiving such materials.

All accounting and Inspection related guidelines arebeing followed.

ERP MM Module


77/94


ERP/MES

Fund Centers 1085 Purchasing Groups 224

Storage Locations 985 Purchase Organization 6

Users 1200 +

ERP - MM Module

Roles and Authorizations

Above are the organizational elements specially for all MM processes inSAP.

Roles in SAP to facilitate performance of distinct business function(s).

Authorizations based on users current position and duties in

respective departments in the organization.

In dynamic bus iness organizat ion l ike ou rs, natural ly,

maintaining proper and relevant autho rizat ions for SAP

users is a major responsib i l i ty .

ERP MM Module


78/94


ERP/MES

Major Processes Covered

Process Functional Coverage

Procurement of

Services


Procurement of

Materials

PRTendering (ECC & SRM)PO

InventoryStores

& Spares


Consumption

Inventory Raw

Materials


Consumption

ERP - MM Module



79/94


ERP/MES

Useful Reports for Monitoring & Review

PR to Payment Status Report (ZMM170A)

Contractor Registration Status Report (ZMMSERVEN)

Contractor Empanelment Report for RC (ZMM023A)

Contractor Order Position Report (ZMM914A) PR pending for Screening Status Report (ZMM912A)

Screened PR not Tendered Report (ZMM912B)

Tendered PR PO not placed Report (ZMM912C)

PO to Payment Status Report (ZFI928B) Deviation Statement (ZMM072A)


Services : Effective Management of Funds


80/94


ERP/MES

Stages where Planning for Budget is essential


Purchase Order

Service Entry Sheet




81/94


ERP/MES Purchase Requisition

Prepare PR in one financial year if the expected job start and

end is in the same financial year

Prepare PR in two or more financial years and proportionally

distribute the quantities of the job if the expected job start and

end is across financial years

While estimating the job start date consider the lead time for

PR screening, tendering and approval required for award of job

(PO). For Example

Value

(Rs)

Start Date End Date Quantity

proportion2010-11

Quantity

proportion2011-12

Job A 100 1stDec, 2010 31stMar, 2011 100% (4 mnths) -

Job B 100 1stDec, 2011 30thApr, 2012 80% (4 mnths) 20% (1 mnth)




82/94


ERP/MES

Purchase Order

While creating Purchase Order, Contract Cell should checkwhether the estimation of job start date by the departments are

possible or not.

If not then revise the quantity proportion in PO so thatunnecessarily budgets are not blocked.




83/94


ERP/MES Service Entry Sheet

While creating Service Entry Sheet (RA Bill or Final Bill) for a

Purchase Order, select the correct PO line number forreference i.e. select the line corresponding to the financial year

of job execution for which the SES is being created.

For Example if the PO line items are as below

Line No Delivery Date Amount (Rs)

10 Job 1 31.03.2010 20

20 Job 1 30.10.2010 80

If bill is to be prepared for the period 01.04.2010 to 30.10.2010 then

select line 20 for creating Service Entry Sheet. This will ensure the properutilization of Budget for the financial year 2010-11.

If bill for the above case is prepared against line 10 of PO then systemwill utilize additional fund from the fund center for the balance amount andleave the fund blocked against line 20 for the job.




84/94


ERP/MES Delete unprocessed / not required PRs

Check whether any unprocessed PR is existing for the Fund

Center which is not required as of now. Drop the PR.

For this run T Code ME5A.

Select the variant SER PR WITH OA - Service PR with OA

Click on icon at the top

Enter your Fund Center and execute




85/94


ERP/MES Delete unprocessed & not required PRs

The screen will appear as below

Double click on PR number to see the details. If not

required, delete it to release the Funds.




86/94


ERP/MES Redistribute quantities in Purchase Orders where

execution is likely to continue beyond Financial

Year

For example

Job planned to start from 1st December but PO likely to be

placed in January

Request Contract Cell to redistribute quantities while

creating PO

PO placed for job to start from 1stNovember for 4 months but

job front likely to be available in January

Request Contract Cell to redistribute quantities by

Amending PO




87/94


ERP/MES

Create and Release Service Entry Sheet correctly

and on time

Create Service Entry Sheet for the relevant PO line item to

avoid unnecessary blocking of Fund

Create and Release Service Entry Sheet for all running

Contracts as on 31st March for the Year Closing so as to

utilize the yearsBudget effectively


ERP - Procurement of Materials


88/94


ERP/MES


Item Details Report (ZITEM_PLANNING)

PR Status Report (ME5A, ZMM147A)

PO Status Reports (ME2N , ME2M, ZMMPOH) Report for Price variance of PRPO rates

(ZMMCOMPARE)

PO item level details report (ZMMPOITEMS)

Inspection Status Report VENDOR Details Report

Comparative Bid Statements in SRM

List of tenders in SRM

ERP Procurement of Materials

Materials Procurement : Effective Budget Management


89/94


ERP/MES Factors effecting Budget Requirement

Consumption Plan

Sourcing for consumption

Stock

PO Dues

PR Dues

Shortfall for Consumption (to be met from budget allocation

for raising PRs and POs )

Discount for any targets for inventory reduction

Final procurement budget allocation

g g


90/94



91/94


ERP/MES

CONSUMPTION PLAN:

( )



92/94


ERP/MES

( )

PROCUREMENT BUDGET UTILISATION :

Budget allocated for next year : 70 Cr.

Allocated budget of Current Year : 60 Cr.

60% of 60 Cr. Is already entered in system for next year : 36 Cr.

PR Dues (2011) : 25 Cr.

PO Dues (2011) : 5 Cr.

PR Dues (2010) : 10 Cr.

PO Dues (prior to 2011) : 20 Cr.

GR / INV : 6 Cr.

Total Budget blocked (FY 2011) = 66 Cr.

Balance Procurement Budget (2011) = 7066 = 4 Cr.



93/94


ERP/MES

( )

Action points for procurement budget availability

Drop / delete unreleased PRs for unblocking the fund.

Cases in ordering stage : Communicate deferment of delivery date in

PO to be placed against PRs already cleared.

Review cleared PRs pending at different stages to see whether they

can be deferred / dropped / deleted.

Review POs where supplies are pending for deferment / closing .

Make use of reports for review of above.

ERP Inventory Management - Stores & Spares


94/94

ERP/MES

y g p


Complete snapshot of inventory (Material, Group,

External group, valuation class, storage location,

MRP controller) possible for any period

GRN Lead Time including Quality clearance lead time

tracking

Shelf Life Report for perishable medicines

Inventory Analysis reports (ABC / XYZ /Non-Moving)