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Global Business Services

MM PROCESSES
M M MODULE

| JSPL SAP Implementation

2008 IBM Corporation

Global Business Services

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

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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

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2008 IBM Corporation

Global Business Services

Plant Nomenclature

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2008 IBM Corporation

Global Business Services

REQUSITIONER FIELD

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2008 IBM Corporation

Global Business Services

TRACKING NUMBER

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2008 IBM Corporation

Global Business Services

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 PRs.

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

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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

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2008 IBM Corporation

Global Business Services

URGENT PR

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2008 IBM Corporation

Global Business Services

URGENT PR

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2008 IBM Corporation

Global Business Services

NORMAL PR

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2008 IBM Corporation

Global Business Services

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.

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

ADITIONAL FIELDS IN PR SCREEN

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2008 IBM Corporation

Global Business Services

Additional fields in PR
SCREEN SHOT-ADD FIELDS_PR

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2008 IBM Corporation

Global Business Services

Release strategies for Requisitions


Requisition
type

Normal

Normal

Urgent

Urgent

Requisition
Value (INR)

0 to 2500000

Material
group
IT / HR items/
Other groups

> 2500000

IT / HR items/
Other groups

0 to 500000

IT / HR
items / Other
groups

> 500000

IT / HR
items / Other
groups

Plant

ALL

ALL

ALL

ALL

Release authority
HOD User
dept

GM IT/GM
HR/Store/PRCommi
tee

HOD User
dept

GM IT/GM
HR/Store/PR
Commitee

HOD User
dept

HOD User
dept

E
D

GM IT/GM
HR/Store/PR
Commitee
GM IT/GM
HR/Store/PR
Commitee

E
D

Note:
1.
2.
16

3.

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
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.
2008 IBM Corporation
SAP Implementation | JSPL | Confidential
The 'HOD USER DEPT.' (user) who is supposed to release a particular requisition will

Global Business Services

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 Value

Release authority

0 to 2500000

HOD Purchase

> 2500000

HOD Purchase

ED

2. Purchase Order Document Type


3. Plant
Note:
1. All POs ( 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.

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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/CMT31

Note:-

I-investment,
I-iron segment Mines segment
1-Raigarh location
31 Plant unit-3 and serial no
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First Digit
Second Digit
Third Digit

2008 IBM Corporation

Global Business Services

BUDGET STATUS REPORT

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2008 IBM Corporation

Global Business Services

BUDGET

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2008 IBM Corporation

Global Business Services

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

What is work flow and how it work

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Work flow process and flow chart


PR/PO CREATION BY END
USER
A Email will trigger to
Respective HODs

As and when PR will release by HOD a Email


Will trigged to PR creator.

As and when a PO will placed for particular PR


A email will trigger to end user

After PO release mail will trigged to purchaser/po creator


for PO release information

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Workflow - PR

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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.

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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)

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services


PROCEDURE FOR CONSUMPTION OF PLANT FINISHED PRODUCTS(CAPTIVE
PROCEDURE FOR CONSUMPTION OF PLANT FINISHED PRODUCTS(CAPTIVE CONSUMPTION)
CONSUMPTION)
Raising of
PRs by user

Preparation
of STO by
purchase

Arrangement
made by
logistic for
processing of
delivery

Receipt
acknowledgement
by user

Materials
dispatch to
required
indented Dept.

Gr and issue
posting by
store
Hand over of
excise docu.to
Excise for
modvate

Excise Invoice
to be raised
by marketing

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Hand over of
documents to
store for GR.
By Marketing

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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 .

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Reservation - MM
Movement Type

221

Z01

261

31

WBS

Remark

F/SP

Not Allowed

PM

Not Allowed

I/C

Allowed

F/SP

Allowed

PM

Not Allowed

I/C

Not Allowed

F/SP

Not Allowed

PM

Allowed

I/C

Not Allowed

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Cut over strategy - MM


Open Purchase Orders
As far as possible Vendors should be informed to expedite the dispatches so that
maximum number of Pos 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

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

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.

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SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

THANK YOU

| JSPL SAP Implementation

2008 IBM Corporation