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Supply chain management

Guided by: Mr. Sushil bhatt Sr. manager Purchase dept Bharat seats ltd

Purchase dept
Goods purchase by the company can be broadly categorize under two section which are; 1. Material for B.O.M 2. Material for non production items. process for purchase of material for bath the category are somehow different but they both are handled by same dept. while B.O.M goods are required for daily production other demands are generated while working in factory premises.

There are two types of agreement done by the company 1. Purchase order; This type of agreement is done for those goods which are non production items. Purchase order (P.O) is produced by the dept with the help of SAP. 2. Schedule agreement. This is done for raw material which is required under B.O.M. hence the company have daily intake of such goods. Hence, contract no is generated with in schedule agreement for further references like in MRP.

Process for bill of material (B.O.M) goods


Bharat seat fallow the just in time (J.I.T) concept and hence they posses very little inventory or no inventory. The company has 56 regular vendors which provide them material for their daily production. These vendors have prior agreement with the company for the supply of raw material i.e. contract order for certain fixed quantity according to the requirement in BOM.

Purchase order cycle for contract quantity (C.O)


Fort night plan is received Fallow-up of incoming goods. Run the M.R.P

Work according to the nagare.

Vender wise requirement list generated

nagare is received

List send to the venders

Fort night plan


Maruti Suzuki india ltd and suzuki bikes sends a fort night plan to all its venders. This plan gives the idea of the material required by them on each particular day. This plan includes holidays (registered and unregistered),capacity required by them for each model and the companys percentage share in total requirement. The total required for the peroid can be drawn by compiling the data.

Run the M.R.P on SAP


There are several steps which needed to be followed for running the material requirement planning on SAP. They are; feed the production plan. Delete the schedule line. T-code for MRP is md02 And for deleting the schedule line we have a T-code MD64.

Vendor wise list generated; the daily requirement list is generated for each vendor the list contain the material required from them with in those 15 days on daily bases. There might be some gaps considering small space for inventory provided and E.O.Q .

List send to vendors; The list is send to venders with minor changes if needed. Hence the schedule plan is created for the vendors.

Nagare
Actual plan (nagare) is provided by the both (maruti and suzuki) companys one day before only which is called nagare . Now, only the quantity demanded in the nagare will be dispatch to both the companys. this plan have a variation of about 4-5% from the fortnight plan. The inventory for this variation should be maintained by the company which reduces the overall inventory up to a bare minimum quantity.

Fallow-up
Status of inventory and scheduled delivery of raw material is regularly fallowed so that production line should not interrupted by the deficiency of raw material. Daily stock of raw material is observed manually by the dept for smooth running of production through out the day. Some sheets are prepared for easy control like daily stock monitoring sheet, supply v/s schedule sheet. Now, next fortnight plan is received and the cycle continues.

Process for other materials


This type of purchase also have certain procedures which needed to be followed. These are miscellaneous demands which are generated in all depts. This may include one time purchase of any measuring equipment, tools, extra machine parts etc
Purchase request Purchase order

Invoice

Purchase request
This is raising a demand by certain dept in the organization which is done through SAP. The demanding dept raise a PR on sap and also make a print out of it and deliver it personally to the purchase dept. T-code; ME51N now there are certain parameters which needed to be determined while raising PR like weight, dimension price pr kg etc. after saving PR an 8 digit no is created which is further used for searching it. To search PR we have an anather t-code T-code; ME52N

Purchase order
Now, PR is converted into PO (purchase order) by the purchase dept only. This is done on sap only. Only few persons are authorize to do so. T-code; ME21N some parameters are needed to be determined in this also in in excel sheet inbuilt in the pattern only. Like vender name , category of item to be purchase and taxes to be applied. Pr no and item no from the printed format is filed which filled rest of the formalities. And hence 10 digit PO no is generated after saving all the parameters now the senior member of the dept approve the po and further it is send to the supplier

Invoice
The vendor after receiving the purchase order(PO) create its own invoice on its own prescribed pattern which is send to the organization along with the material.