MM Processes Presentation

Global Business Services
MM PROCESSES
M M MODULE
| JSPL SAP Implementation
2008 IBM Corporation
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
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
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
Plant Nomenclature
REQUSITIONER FIELD
TRACKING NUMBER
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
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
URGENT PR
10
URGENT PR
11
NORMAL PR
12
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.
13
ADITIONAL FIELDS IN PR SCREEN
14
Additional fields in PR
SCREEN SHOT-ADD FIELDS_PR
15
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.
The 'HOD USER DEPT.' (user) who is supposed to release a particular requisition will
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.
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
18
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
19
First Digit
Second Digit
Third Digit
BUDGET STATUS REPORT
20
BUDGET
21
22
What is work flow and how it work
23
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
24
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
25
Workflow - PR
26
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.
27
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)
28

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
29
Hand over of
documents to
store for GR.
By Marketing
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 .
30
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

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
32

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.
33
THANK YOU
| JSPL SAP Implementation

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Global Business Services

| JSPL SAP Implementation

2008 IBM Corporation

Global Business Services

WHAT ARE THE CHANGES AND BENEFITS?

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

New changes relating to Store

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Requisition documents have been classified into :

MRP generated requisitions will also be treated as normal PRs.

Release strategy applicable is determined based on the following criteria:

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Recommended source (Y/N) Mandatory field

These fields will be editable till the PR is released for PO.

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

ADITIONAL FIELDS IN PR SCREEN

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

Release strategies for Requisitions

GM IT or GM HR will be a part of the release chain only when requisition has

Global Business Services

Release strategy for Purchase Orders

2. Purchase Order Document Type

SAP Implementation | JSPL | Confidential

2008 IBM Corporation

Global Business Services

How budget checks will happen in PR