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P. 1
Material Mangement

Material Mangement

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Published by rajukrishnam

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Published by: rajukrishnam on Apr 29, 2011
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04/12/2014

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MATERIAL MANAGEMENT
This management comprises of:
 
P
rocurement
 
Inventory management
 
External service management
 
Invoice verification
 
S
tock verification
 
V
aluations
 
P
rocurement:
 
P
R (
P
urchase requisitions):
P
urchase requisitions are generated by the planningdepartment and are further classified as follows.
y
 
Manual
P
lanning.
y
 
P
lanning /MR
P
(Material requirement planning).
 
C
onsumption based planning.
 
F
orecast based planning.
 
P
roduction based planning.
 
P
urchase requisitions are based on 4 domains:
 
Materials.
 
D
ate of delivery.
 
Receiving or storage location.
 
uantity.
 
C
onsumption based planning:
F
irstly a planned order will be generated from the planningdepartment based on the consumption.
 
F
orecast based management:In this management we need to maintain last 6 to 10 months of the consumption data in the master data. These are further classified as follows:
y
 
Trend model.
y
 
S
easonal forecasting.
y
 
Time phased.
y
 
C
onstant.
01020304050
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ase
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a
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¨ 
 
T
©  ¦ 
s
i
s
 
a
l
s
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ter
   
e
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as
SO
P
 
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es
op
erat
ion p
l
a
nnin
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ase
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on SO
P
 p
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odu
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ion MR
P
 
ge
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erates
 
t
©  
e
 
re
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ui
re
   
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n
t
 
a
nd wi
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c
©  
eck
 
t
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in
ve
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a
n
age
m
e
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t
 
a
nd
t
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e
n
t
©  
e
 
syste
m
ge
n
erates
 
t
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e
 
P
R
(
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u
rc
©  
ase
 
re
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ui
s
i
t
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s).T
©  
ese
 
are
 
aga
in
c
l
ass
i
i
e
d in
t
o
t
wo
gr
oup
s
¨ 
 
y
 
MR
P
 
c
on
tr
o
ll
er.
 
y
 
MR
P
G
r
oup
s.
 Fu
rt
  
er
 
t
  
e
MR
P
 
(
M
ater
i
a
l
 
re
  
ui
re
m
e
n
t
p
l
a
nnin
g)
 
are
 
ter
m
e
d
as
p
er
 
t
  
e
 
s
p
ec
i
i
cat
ion o
 
g
ood
s
inSA
P
 
syste
m
a
nd
are
 
as
 
o
ll
ow
s
 
 
 
Fini
s
  
e
d
g
ood
s
 F
E
R
T
 
 
R
a
w m
ater
i
a
l
s
 ROH
 
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t
i
l
i
t
i
es
 H
IBE
 
 
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ater/gas
 
etc
P
I
P
E
 
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  
E
 
 
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ack
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g
m
ater
i
a
l
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R
P
 
 
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ares
E
RSA
 
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e
mi
ini
s
  
e
d
g
ood
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 HA
LB
 
 
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cra
p
(
  
on
eva
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ate
d
g
ood
s)
UN
B
W
 
 
P
u
rc
  
as
in
g
do
c
um
e
n
t
 
str
u
ct
u
re
 
 
T
  
i
s
 
str
u
ct
u
re
 
ca
n
a
l
s
o b
eter
m
e
d
as
R
ELE
AS
E
S
T
RA
TE
GY
.
 
T
!  
e
 
sta
nd
ar
d p
ract
i
ce
 
o
r
do
c
um
e
n
t
 
str
u
ct
u
re
in SA
P
 p
ract
i
ce
i
s
 
as
 
o
ll
ow
s
 
 
N
B
 S
ta
nd
ar
d do
c
um
e
n
t
 
ty
p
e
p
r
o
v
id
e
d b
y
 
t
#  
e
SA
P
.
 
ZC
A
P
 Fo
r
 
ca
pi
ta
l
 
g
ood
s.
 
 
Z
RA
W
 Fo
r
 
ra
w m
ater
i
a
l
s.
 
 
Z
S
P
R  Fo
r
 
s
p
are
 
g
ood
s.
 
 
Z
SR
V
 Fo
r
 
serv
i
ce
 
g
ood
s.
 
PU
R
$  
H
%  
S
I
&  
G
'()  
UM
E
0  1  
 STR
UC
T
U
R
E
(  
RG
2  
N
I
ZA
T
I
(  
N
AL
 
L
EVE
L
 
3  
A
T
A
COMP
A
N
4  
 
COD
E
PU
R
C
H
A
S
I
NG
PU
R
C
H
A
S
I
NG GR
OUP
I
T
E
M
I
T
E
M
 
D
E
T
A
I
L
&
I
T
E
M
 
C
A
T
E
G
O
R
4  
 All these materials are related to production based planning and will come under BILL OF MATERIALS/QUANTITY.
 
 
 
O
E
M
(
Fi
xe
d
ve
ndo
rs/c
on
tract
o
r)
 
P
O
ca
n b
e
i
ss
u
e
d wi
t
6  
 
refere
n
ce
 
t
o
P
R
/
RF
7  
/
C
on
tract.Base
d on
t
6  
e
RF
7  
s
 
1
 
2
 
3
 
7  
uo
tat
ion d
ea
d
l
in
e
wi
ll
b
e
 
ge
n
erate
d
.
 
8  
 
C
o
ll
ect
i
ve
numb
er
d
ata
wi
ll
b
e
 
ge
n
erate
d
.
 
 
SO
U
R
C
E
 
LI
S
T
 
T
o
c
@  
eck
wh
et
h
er
 
a
p
arty
i
s
 
a
pp
r
o
ve
d o
r
no
t
 
t
h
e
n w
e
n
ee
d
t
o
g
o wi
t
h
t
h
e
 
o
ll
owin
g
p
at
h in
t
h
e
SA
P
 
syste
m
.
 
 
P
R
I
C
I
N
G
P
RO
C
ED
U
R
E
S:
T
hi
s
in
c
l
ud
es
 
t
h
e
 
ter
m
s
 
a
nd
c
ondi
t
ion
s
 
o
r
 
t
h
e
 
c
on
tract.
 
VE
N
D
OR
EV
A
L
U
A
TI
O
N
:
T
hi
s
in
c
l
ud
es
 
a
 
str
u
ct
u
re
 
t
o
eva
l
u
ate
 
t
h
e
 
ve
ndo
rs.
MA
TE
R
I
A
L
MAS
TE
R
VE
N
D
OR MAS
TE
R
SO
U
R
C
E
 
LI
S
T
P
U
R
C
HAS
I
N
G
I
N
FO R
E
C
OR
D
C
O
N
DITI
O
N
A
L
R
E
C
OR
D
S
ith reference to PR

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