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8/10/2019 MM Presentation Inventory
1/94
UTKARSH ERP / MES Project at Bhilai Steel Plant
E
RP/MES
ERP-MM
inBHILAI STEEL PLANT
8/10/2019 MM Presentation Inventory
2/94
UTKARSH ERP / MES Project at Bhilai Steel Plant
E
RP/MES
MM
Materialsprocurement
Servicesprocurement
InventoryManagement
Raw Materials
SuppliersRelationshipManagement
(SRM)
ERP - MM Module
MAJOR SUB MODULES
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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
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RP/MES
Bhilai SteelPlant
Works
1000
Non Works
1100
Township Medical
Mines
1200
IOC (Rajhara)
Nandini
Hirri
ERP - MM Module
Organization Structure
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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
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RP/MES
Materials Procurement
ERP - MM Module
8/10/2019 MM Presentation Inventory
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
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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)
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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 )
Procurement ProcessMaterials (Indent to Order)
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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
Procurement ProcessMaterials (Indent to Order)
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RP/MES System based Process flow
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.
Procurement ProcessMaterials (Indent to Order)
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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 .
Procurement ProcessMaterials (Indent to Order)
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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 :
Procurement ProcessMaterials (Indent to Order)
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RP/MES System based Process flow
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 )
Procurement ProcessMaterials (Indent to Order)
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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 ¤t Date - time stamping.
Hierarchy of Indenters, Purchase mapped in system, along with authorizations, asper office orders issued from time to time.
Procurement ProcessMaterials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
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ERP/MES
Suppliers RelationshipManagement(SRM)
ERP - MM Module
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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)
Procurement ProcessMaterials (Indent to Order)
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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)
Procurement ProcessMaterials (Indent to Order)
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
USERS 5287
Purchase Groups 90
Roles 137
Release Strategies
with all variations
520
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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
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ERP/MES
SAP MM(ECC) SRM E-Tendering cFolder
Create & Release
Purchase Requisition
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
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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
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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
Procurement ProcessMaterials (Indent to Order)
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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
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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.
ERP - Procurement of Materials :SRM
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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.
ERP - Procurement of Materials :SRM
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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.
ERP - Procurement of Materials :SRM
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ERP/MES
InventoryStores & Spares
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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.
Procurement ProcessMaterials (Indent to Order)
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
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
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
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
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
Plant : 1000BSP Works
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
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
Plant : 1000BSP Works
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
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
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
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
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.
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UTKARSH ERP / MES Project at Bhilai Steel Plant
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.
Procurement ProcessMaterials (Indent to Order)
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ERP/MES Main Stores Activities
(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
Procurement ProcessMaterials (Indent to Order)
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ERP/MES Main Stores Activities
(Plant , Mines , Medical)
Indigenous Purchase Orders
Imported Purchase orders
Project Purchase orders
Incoming Excise Invoice Capturing
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.
Procurement ProcessMaterials (Indent to Order)
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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)
Procurement ProcessMaterials (Indent to Order)
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ERP/MES Main Stores Activities
(Plant , Mines , Medical)
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)
Procurement ProcessMaterials (Indent to Order)
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ERP/MES Main Stores Activities
(Plant , Mines , Medical)
Indigenous Purchase Orders
Imported Purchase orders
Project Purchase orders
Incoming Excise Invoice Capturing
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.
Procurement ProcessMaterials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
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ERP Inventory Management - Stores & Spares
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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
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UTKARSH ERP / MES Project at Bhilai Steel Plant
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.
Procurement ProcessMaterials (Indent to Order)
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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
ERP - Procurement of Materials :SRM
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ERP/MES
Procurement of Services
ERP P t f S i
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UTKARSH ERP / MES Project at Bhilai Steel Plant
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
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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 - Procurement of Services
ERP P t f S i
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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.
Procurement of Services
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
ERP Procurement of Services
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ERP/MES
System based Process flow
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
ERP - Procurement of Services
ERP Procurement of Services
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ERP/MES
System based Process flow
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
ERP - Procurement of Services
ERP Procurement of Services
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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
ERP - Procurement of Services
PRTenderingPORA / Final Bill
ERP Procurement of Services
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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.
ERP - Procurement of Services
ERP Procurement of Services
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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
ERP - Procurement of Services
ERP Procurement of Services
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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
ERP - Procurement of Services
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ERP/MES
Inventory - Raw Materials
P t P M t i l (I d t t O d )
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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
Procurement ProcessMaterials (Indent to Order)
P t P M t i l (I d t t O d )
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ERP/MES System Configuration Statistics
Procurement ProcessMaterials (Indent to Order)
No of Plants : 3
No of Storage locations : 43
No of Roles : 51
No of Users : 104
P t P M t i l (I d t t O d )
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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.
Procurement ProcessMaterials (Indent to Order)
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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
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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
AutomaticInspection Lot
Creation
Quality ResultRecording
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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
AutomaticInspection Lot
Creation
Quality ResultRecording
RR Detail Entry RR Pilot LinkingRR Pilot Linking
NR and ULwagons
treatment
AutomaticInspection Lot
Creation
Proc rement Process Materials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
ERP P t f M t i l SRM
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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.
ERP - Procurement of Materials :SRM
Procurement of Services
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ERP/MES
Thank You
Procurement of Services
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Compliance features : Procurement Process
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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
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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
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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
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ERP/MES
Major Processes Covered
Process Functional Coverage
Procurement of
Services
PRTenderingPORA / Final Bill
Procurement of
Materials
PRTendering (ECC & SRM)PO
InventoryStores
& Spares
ReceiptStockTransfer
Consumption
Inventory Raw
Materials
ReceiptStockTransfer
Consumption
ERP - MM Module
ERP - Procurement of Services
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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)
ERP - Procurement of Services
Services : Effective Management of Funds
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ERP/MES
Stages where Planning for Budget is essential
Purchase Requisition
Purchase Order
Service Entry Sheet
Services : Effective Management of Funds
Services : Effective Management of Funds
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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)
Services : Effective Management of Funds
Services : Effective Management of Funds
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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.
Services : Effective Management of Funds
Services : Effective Management of Funds
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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.
Services : Effective Management of Funds
Services : Effective Management of Funds
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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
Services : Effective Management of Funds
Services : Effective Management of Funds
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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.
Services : Effective Management of Funds
Services : Effective Management of Funds
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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
Services : Effective Management of Funds
Services : Effective Management of Funds
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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
Services : Effective Management of Funds
ERP - Procurement of Materials
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ERP/MES
Useful Reports for Monitoring & Review
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
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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
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Procurement ProcessMaterials (Indent to Order)
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ERP/MES
CONSUMPTION PLAN:
( )
Procurement ProcessMaterials (Indent to Order)
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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.
Procurement ProcessMaterials (Indent to Order)
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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
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ERP/MES
y g p
Useful Reports for Monitoring & Review
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)