MM Presentation Inventory

ERP / MES
ERP-MM
in
BHILAI STEEL PLANT
UTKARSH ERP / MES Project at Bhilai Steel Plant
ERP / MES
ERP - MM Module
MAJOR SUB MODULES
MM
Materials
procurement
Services
procurement
Inventory
Management
Raw Materials
Suppliers
Relationship
Management
(SRM)
ERP / MES
ERP - MM Module
Major Processes Covered
Process
Functional Coverage
Procurement of
Materials
PR Tendering (ECC & SRM) PO
Procurement of
Services
PR Tendering PO RA / Final Bill
Inventory Stores Receipt Stock Transfer

& Spares
Consumption
Inventory Raw
Materials
Receipt Stock Transfer

Consumption
ERP / MES
ERP - MM Module
Organization Structure
Bhilai Steel
Plant
Works
1000
Non Works
1100
Township
Mines
1200
Medical
IOC (Rajhara)
Nandini
Hirri
ERP / MES
ERP - MM Module
Organization Elements
Plants
Fund Centers
3
1122
Purchasing Groups
243
Storage Locations
1170
Purchase Organizations
Users(Internal)
Users(External)
6
4000 +
4847
ERP / MES
ERP - MM Module
Materials Procurement
ERP / MES
ERP - Procurement of Materials

Indenting Agencies
(identified
by Fund Centres)
All Shops (for direct procurement
items)
Procurement Agency:
Different Sections of
Purchase Deptt.
Stock Control (AP items)

Mines Stock Control (Mines AP
items)
Central Indenting Agencies (e.g.
Rolls, Refr., Electrodes,
Bearings etc.)
Medical
Electrical
Mechanical
Consumable
Raw Material
Refractory
Import
Capital -AMR
Medical
ERP / MES
Procurement Process Materials (Indent to Order)

Types of Procurement processes
Indigenous Procurement
Import
AMR / Non-Plan (Supply and Activity )
Medical procurement
Subcontracting process
Refurbishment Process
SODC procurement
Lube Procurement
Performance based Materials procurement
Suborders w.r.t Rate & Value Contracts
ERP / 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 & for
350 fund centers ) for online movement of Purchase Requisition along with
50 codes for screening committee members , for online routing of PRs
through different screening committees
Release strategies for online PR screening : (about 100 variations have
been configured to take care of PCP & BSP requirement
Online approval of Enquiry Proposal: 25 different release strategies
defined in system for each of 90 Purchasing Groups, with respective
hierarchies.
ERP / 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 , Tax
Schema (Excise & Sales Tax conditions ) , Freight , Service Tax ,
Insurance , Entry Tax , Import related conditions, etc. About 50 condition
types are being used to handle the requirement based on Setoff & Nonsetoff requirement.
Tax schema & payment terms

Message types : for printing various layouts ( RFQ / PO / AMDT /
reminders / SODC - laser , dmp , e-mail )
ERP / 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
ERP / MES

Agenda for Screening: Provides powerful information at a glance, for screening /
decision making & can be viewed / printed on real-time basis. Contains following
information :
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 , and
Notified Screening Committees & Defined DOP for approving Screening
Committee 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 Committee
members, used to be held annually, consuming about 3-4 hours.
ERP / MES

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 the
case 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 terms
Freight terms, etc.
Mapping done for Indigenous, Import, Open Tender (Ind) , Global Tender , along
with different layouts .
ERP / MES

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 respective
hierarchies. 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 account
response of vendors , printing of extension letters & Price bid intimation letters.
T.O.C activities / Tracking of Tenders :
ERP / MES

Quotation receipt capturing and quotation opening process along with approval
process 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 Certificate
generation.
Amendment Process (Indigenous & Import )
ERP / 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 &
current Date - time stamping.
Hierarchy of Indenters, Purchase mapped in system, along with authorizations, as
per office orders issued from time to time.
ERP / MES

Benefits
Purchase 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 of

screening committees , involving 15-20 Indenters & consuming 3-4 hours per
meeting. 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.
ERP / MES

Benefits
Effective Budgetary Control in procurement cycle. High level of flexibility to Indenter,
for adjusting budget, dropping of Indents, reducing dependence on any other
agency.
Enquiry Proposal & Tendering Module:
Approval of Enquiry proposal is totally online. Implementing this thru system, as
per DOP has ensured uniformity in interpretation across different sections in
Purchase.
Ease of tracking status of approvals in Enquiry Process and tracking of tender
response & opening.
Comparative Statement Preparation through system.
Purchase Orders :
All cost elements mapped in PO value, by proper definition in master data.
ERP / MES

Benefits
Inspection Module :
Inspection certificates for Vendors site inspection can be generated and printed by
Inspecting officers even from Resident offices, which are connected through
Enterprise portal.
ERP / MES
ERP - MM Module
Suppliers Relationship
Management(SRM)
ERP / MES

COVERAGE
Online 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)
ERP / MES

COVERAGE
Queries 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) to
vendors.
(All vendors transactions are regulated by user-id & password and they can
access only the data which is relevant to his/her domain)

ERP / MES
USERS
5287
Purchase Groups
90
Roles
137
Release Strategies
with all variations
520
ERP / MES
ERP : e-Procurement of Materials

on SRM platform : Single Stage e- Bidding Process
SAP MM(ECC)
SRM E-Tendering
Create & Release
Purchase Requisition
Sourcing Cockpit
Create a Case and

transfer to SRM
Create Bid Invitation
Online Approval as per

DOP
Publish Bid Invitation
Draft Purchase Order
Automated email to
Suppliers
Vendor Access
Vendor submits Bids

Final Purchase Order
Technical, Commercial
and Price Bid opening
in single stage
ERP / MES
ERP : e-Procurement of Materials

on SRM Platform : Two Stage e- Bidding Process
SAP MM(ECC)
SRM E-Tendering
cFolder
Create & Release

Sourcing Cockpit
Create c Folder
Create a Case and

transfer to SRM
Create Bid Invitation
Upload Tender
Documents, Drawings
in Public Area
Online Approval &

Publish Bid Invitation
Vendor uploads Bid

documents in Private
Area
Automated email to
Suppliers
Vendor Access
Evaluation of
Commercial Bids by
Purchase Officers
Draft Purchase Order

Vendor submits Bids
Final Purchase Order
Techno-Comm Bid
opening
Price Bid opening and
Evaluation
Online Technical
Recommendation by
Indenting Officers in
Internal Area
Techno-comm
Acceptance/Rejection
of Vendor
ERP / MES
ERP e-Procurement of Materials

Online Techno-commercial recommendation by Indentor
cFolder
SRM E-Tendering
Purchase Officer
forwards the
Tender to
Indenting officer
after opening of
Technocommercial bids
Indenor logs into
SRM
Indentor can
view/print vendors
remarks
Indentor can
view/print
Purchaser officers
attachment in
Public Area
Indentor can
view/print vendors
attachments in
Private Area
Indentor can finally
attach his/her
technical
recommendation
in Internal Area
Techno-comm
Acceptance/Rejecti
on of Vendor
ERP / MES

Compliance
All e-tenders are available through guest login; meets CVC criteria to display all
types 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 tender
opening.
SSL & DMZ implemented for secure internet transactions

ERP - Procurement of Materials : SRM

ERP / MES
Benefits
Guest Login Functionality :

I.
All live tenders are available (display only) on SRM portal without any
user-id and password which fulfills major CVC guidelines.
Complete Paperless Transaction:

I.
No hardcopy of tenders are sent, neither any hard copy offer is
received; Environment friendly and direct savings on account of printing
cost of tender documents.
II.
Provision for uploading all types of documents, drawings, catalogs
Automated e-Mail to vendors to inform dates for Techno-commercial and

price bid opening.

ERP / MES
Benefits
Provision for freezing various commercial parameters :
Reduces tender processing time by bringing all party at par from

the beginning of tendering stage.
Automatic derivation of DOP :
Purchase officers need not mark the tender every time to different
approving officers.
Online availability of Bid Statement documents immediately after

opening 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 purchase

department and shop reducing minimum 5-7 days of cycle time.
ERP / MES
Benefits
System generated Price Comparison Statement(C.S.) :
There is provision for inputting Loading Factor for various

commercial conditions, e.g., Freight to pay, insurance as per BSP
open policy, etc. for suitable loading against a party to bring them
at par. No manual intervention in C.S.; % deviation from the
estimated rate and Ranking of all the parties is also calculated
and displayed in the system generated C.S.
Online Diversion of Tender :
Manufacturer can divert their e-tender online to their Dealers; no

manual intervention is required. Once diverted, all further
communication is addressed to both of them automatically by the
system.
ERP / MES
Benefits
Online access to all necessary information for vendors:
Reports on PO
Reports on status of supplied materials(CCN, movement type

103 and 105 status)
Payment Reports(Bill registration, bill passing, cheque no. and

amount) for all vendors and service contractors.
Open Tendering :
Entire tender documents are accessible to anybody through cfolder.
Linked to back end system(ECC) for EMD capturing against eTender.
ERP / MES
Inventory Stores & Spares
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.

ERP / MES
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
ERP / MES

Plant : 1000 BSP 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 start

with X* ( All major shops covered )
No of operational Shop Storage Locations : 255

ERP / MES
Disposal Stores :
Old Disposal Stores locations start with D*

Main locations receiving material from outside through Rail and
Road : 9
Lot locations for auctioning the material : 275 locations

ERP / MES
New Disposal Stores locations start with N*

Main locations receiving material from outside through Rail and
Road : 3
Lot locations for auctioning the material : 85 locations

ERP / MES
Plant : 1100 BSP Non-Works
BSP Non Works Locations (non Medical ) start with T* , these

deparments draw materials from Main Storage locations ex.
HRD, Education, Horticulture, PHD, Sports and Recreation, Civil
Engg., Printing press )
No of operational BSP Non Works Locations (non medical ) : 17

ERP / MES
Plant : 1100 BSP Non-Works
Medical Locations start with H* ( JLN locations , Sector-7 HC ,

MMP1 , Sector -1 Hosp , JLN Substores )
Medical Storage locations Receiving Material against Purchase

orders 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*
Rajahara 1 , Mahamaya 1 , Nandini 1 , Hirri -1

ERP / MES
Plant : 1200 BSP Mines
Rajahara 8 locations
Dalli 5 locations
Nandini 5 locations
Hirri 4 locations
These locations do external receipts ( receipts against PO ) and

receive material from BSP main stores also.
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 by
Inspection department.
Vendor Returns in case of rejection.
Excise invoice generation through system.

ERP / MES

Activities on system :
Creation of CCN (consignment control number on receipt
of consignment)
RN creation (movement type : 103)
Excise Invoice capturing and Part 1 updation during
MIGO and afterwards by J1iex_c , J1i5
UD by Inspection department.
RC creation ( Release of GR Blocked stock 105)
Vendor Returns (124)
Excise Invoice Generation J1
ERP / MES


LSHS receipts through RAIL. ( wagon tracking receipts
by EMD)
SODC procurement and receipts.
Liquid oxygen (direct delivery to OP-II)
ERP / MES

Lube Vendor Managed Inventory process.
of consignment)
ERP / MES

Main Stores Processes (Plant , Mines , Medical)
External PO Receipts against Indigenous, Imported,

Project Purchase orders.
of consignment)

UD by Inspection department.
RC creation ( Release of GR Blocked stock 105)
ERP / MES

Lube Vendor Managed Inventory process.
of consignment)
ERP / MES


LSHS receipts through RAIL. ( wagon tracking receipts
by EMD)
SODC procurement and receipts.
Liquid oxygen (direct delivery to OP-II)
ERP / MES

Main Stores Processes (Plant , Mines , Medical)
Capturing of Excise Invoice during GR and sometimes

afterwards on receipt of DFT.
Vendor returns in case of rejected material.
Excise Invoice generation by stores.
ERP / MES
ERP Inventory Management - Stores & Spares

Internal Goods Movements
STO / Reservation
Release
Directly
Procured Items
Lubes
AP & Centrally
Controlled
Items
Reservation
Creation
Project /
Turnkey/ AMR
Issue / Consumption
Goods Issue
By Main
Stores - 951
Release By
AP & Central
Controllers
Door Delivery
Receipt in
Shop Stores
z04
Issue to
Consumption
201 / 221
ERP / MES

Other Inventory Processes
Other Inventory Processses

Disposal Stores Management
Road and Rail Receipts
Expiry Date monitoring /
replacment in Medicines
Physical Inventory Process and
Stock Verification
Reservation Creation Project /
Turnkey/ AMR
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.
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
material more accurate inventory and consumption figures
ERP / MES
Procurement of Services
ERP / MES
ERP - Procurement of Services

Nodal Agencies
Types of Service Procurement
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
Rate Contracts (Civil, Electrical,
CPD (For Machining Rate Contracts)
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 / MES

Plant
Purchase Organization
2 (Service Contract cells & CPD)
Purchase groups
40
Fund Centers
1170
Release Strategies
410
Roles
4000+
Users
2000+
ERP / MES

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.
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 / MES

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 / MES

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 / MES

Rate Contract
PR
Tendering PR
Enquiry
Proposal
HSCL RC PR
PR for Value
Contract
Enquiry
Proposal
Rate Contract
PO
RA Bill / Final
Bill
Purchase
Order
RA Bill / Final
Bill
HSCL RC PO
RA Bill / Final
Bill
Contract ->
Sub Order
RA Bill / Final
Bill

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 / 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 / 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 / MES
Inventory - Raw Materials
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 Captive
Mines.
Issue of Raw Materials
Physical Stock verification

RR and Pilot linkages and claims

ERP / MES
No of Plants :
No of Storage locations :
43
No of Roles :
51
No of Users :
104
ERP / MES

Complete material flow and accounting on system.
Tracking of every wagon and its status (Linked, NR) with reference to Pilot
and RR.
Complete information of truck receipts along with Weigh Bridge data and
quality information.
Integrated process of captive mines starting with Dispatch posting from
mines and ending on receipt and consumption of materials at BSP.
ERP / MES
Inventory - Raw Materials : Receipt by Road
BSP
Weigh Bridge
Raw Mat Dept
Quality
Truck
Arrival at
Gate
Gross Weight
Entry
Reporting at
RMD
Physical OK
Physical
Sampling
Truck Entry
Inside Plant
Un-loading of
Truck
Tare Weight
Entry
GR Posting of
Truck
Automatic
Inspection Lot
Creation
Quality Result
Recording
ERP / MES
Inventory Raw Materials : Captive Mines Receipt

COSTING
MINES
BSP
STO creation
QUALITY
CO Production
Order
Delivery
Schedule
Creation of
STOCK at Mines
Rake
Preparation
Rake Dispatch
to BSP
Rake Receipt at
BSP
Goods Receipt
Posting at BSP
Automatic
Inspection Lot
Creation
Quality Result
Recording
ERP / MES
Inventory Raw Materials : Non Captive Rail Receipt

Rake Arrival
RR Available
Rake Arrival
RR Not Available
Quality
GR against Pilot
Data
Pilot Detail
Entry
RR Detail Entry
RR Pilot Linking
RR Pilot Linking
Automatic
Inspection Lot
Creation
GR Posting for
Linked/Unlinked
data
Adjustment GR
posting after
Linking
Automatic
Inspection Lot
Creation
NR and UL
wagons
treatment
NR and UL
wagons
treatment
Quality Result
Recording
ERP / MES

Compliance
Compliance with Raw materials accounting practices applicable to major
raw materials.
The mapped process fully complies with Sampling and result recording
process for Quality results eg. 5-6 wagons are clubbed together for taking
sample of Rail receipts. Road receipts are clubbed for the purpose of
sampling based on Purchase order quality conditions.

ERP / MES
Benefits
Online booking of receipt, consumption along with automatic
financial entries.
Information about inventory of raw materials is now available
through ERP system.
Easier tracking of wagons and its status with respect to Pilots and
RRs (unlinked /not received/claimed).
Quality results linked to receipts giving unified view to Finance
officers for payment processing.
ERP / MES
Thank You
ERP / MES
Inventory Raw Materials

Useful Reports for Monitoring & Review
Comprehensive
reports are available in SAP/BI

to fulfill the following requirements
Receipt For Rake(s), RR(s), Wagon(s), Truck(s), Purchase

Order(s) , Material(s),period and combination of parameters
Transfer postings For Material(s),Storage location , period ,
user etc.
Consumption Material , Storage location
Stock Plant , Storage location , Materials etc.
Quality of received materials
Receipt ,Quality and Rake/Trucks information combined
Extensive reporting of railway receipts to track Unlinked and NR
(Not received) wagons.
ERP / MES
ERP Procurement & Inventory

Compliance features
ERP / MES
Compliance features : Procurement Process
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.
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 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.
ERP / MES
ERP - MM Module
Roles and Authorizations
Fund Centers
Storage Locations
Users
1085
985
1200 +
Purchasing Groups
Purchase Organization
224
6
Above are the organizational elements specially for all MM processes in

SAP.
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 business organization like ours, naturally,

maintaining proper and relevant authorizations for SAP
users is a major responsibility.
ERP / MES
ERP - MM Module
Major Processes Covered
Process
Functional Coverage
Procurement of
Services
Procurement of
Materials
PR Tendering (ECC & SRM) PO
Inventory Stores Receipt Stock Transfer

& Spares
Consumption
Inventory Raw
Materials
Receipt Stock Transfer

Consumption
ERP / MES

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 / MES
Services : Effective Management of Funds
Stages where Planning for Budget is essential
Purchase Order
Service Entry Sheet
ERP / MES
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
proportion
2010-11
Job A
100
1st Dec, 2010
31st Mar, 2011
100% (4 mnths)
Job B
100
1st Dec, 2011
30th Apr, 2012
Quantity
proportion
2011-12
-
80% (4 mnths) 20% (1 mnth)

ERP / MES
Purchase Order
While creating Purchase Order, Contract Cell should check

whether the estimation of job start date by the departments are
possible or not.
If not then revise the quantity proportion in PO so that

unnecessarily budgets are not blocked.
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 for
reference 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 proper
utilization of Budget for the financial year 2010-11.
If bill for the above case is prepared against line 10 of PO then system
will utilize additional fund from the fund center for the balance amount and
leave the fund blocked against line 20 for the job.
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
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.
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 1st November for 4 months but
job front likely to be available in January
Request Contract Cell to redistribute quantities by
Amending PO
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 years Budget effectively
ERP / MES
ERP - Procurement of Materials
Item Details Report (ZITEM_PLANNING)
PR Status Report (ME5A, ZMM147A)

PO Status Reports (ME2N , ME2M, ZMMPOH)
Report for Price variance of PR PO rates
(ZMMCOMPARE)
PO item level details report (ZMMPOITEMS)
Inspection Status Report
VENDOR Details Report
Comparative Bid Statements in SRM
List of tenders in SRM
Materials Procurement : Effective Budget Management

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

ERP / MES

Consumption
PR
DUES
PO
DUES
STOCK
(INVENTORY)
CONSUMPTION
ERP / MES

CONSUMPTION PLAN:
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) = 70 66 = 4 Cr.
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 / MES

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)


MM Presentation Inventory

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MM Presentation Inventory

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ERP / MES

UTKARSH ERP / MES Project at Bhilai Steel Plant

Major Processes Covered

PR Tendering (ECC & SRM) PO

PR Tendering PO RA / Final Bill

Inventory Stores Receipt Stock Transfer

Receipt Stock Transfer

UTKARSH ERP / MES Project at Bhilai Steel Plant

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP - Procurement of Materials

Stock Control (AP items)

Procurement Process Materials (Indent to Order)

Procurement Process Materials (Indent to Order)

Procurement Process Materials (Indent to Order)

Tax schema & payment terms

Procurement Process Materials (Indent to Order)

PR for Single Tender procurement

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

CS preparation & Evaluation of offers.

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

(About 95-100 meetings used to be arranged annually, for different nature of

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

System Configuration Statistics

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP : e-Procurement of Materials

Create a Case and

Create Bid Invitation

Online Approval as per

Publish Bid Invitation

Draft Purchase Order

Vendor submits Bids

ERP : e-Procurement of Materials

Create & Release

Create a Case and

Create Bid Invitation

Online Approval &

Vendor uploads Bid

Draft Purchase Order

Final Purchase Order

ERP e-Procurement of Materials

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

SSL & DMZ implemented for secure internet transactions

ERP - Procurement of Materials : SRM

Guest Login Functionality :