BP.080 Future Process Model - · Web viewPallets Stores (Type – Asset, Qty tracked) 15 Manufacturing Inventory ITM WIP Inventory Organization WIP Stores (Type – Asset, Qty tracked)

AIMBP.080 FUTURE PROCESS MODELInventory The National Company for Glass Industries – Zoujaj Oracle Applications Implementation Project – Release 12

Author: Phanikiran YeriCreation Date: January 11, 2010 Last Updated: February 12, 2010Document Ref: 1.0Version: 1.0

Approvals:

Mr. Yousef Al Salman General Manager / Project Sponsor , Zoujaj

Mr. Hatem Al Fadli Group Finance Manager , Zoujaj

Mr. Zulfiaqar Ali Najeeb Project Manager, Zoujaj

Mr. Sathyanarayana Sarma Project Manager, Sierra Atlantic

Document Control

Change Record

Date Author Revision Change Reference

11-Jan -2010 Phani Kiran Yeri Draft 1.0 New Document Created28-Jan -2010 Phani Kiran Yeri Draft 1.0 Not Applicable05-Feb-2010 Phani Kiran Yeri Draft 1.1 Incorporate user feedback12-Feb-2010 Phani Kiran Yeri 1.0 Change Version

4

Reviewers

Name Position

Sathyanarayana Sarma Project Manager, Sierra AtlanticBalan Asst Group Finance Manager – Zoujaj Bindusagar Madas Oracle CoE, Sierra Atlantic

Distribution

Copy No.

Name Location

1 Library Master Project Library2 SA Project Manager Zoujaj ERP Room 34

Note to Holders:

If you receive an electronic copy of this document and print it out, please write your name on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the front cover, for document control purposes.

File Ref: document.doc Zoujaj / Sierra Confidential Document Control iv

Contents

Document Control.......................................................................................ii

Introduction & Scope..................................................................................5

Future Business Model - Inventory.............................................................61 Organisation Calendar....................................................................62 Organization Structure....................................................................63 Locations.........................................................................................84 Maintain Sub Inventories................................................................85 Maintain Stock Locators..................................................................86 Item Maintenance...........................................................................97 Item Coding Structure.....................................................................98 Item Category Structure...............................................................109 Unit of Measure.............................................................................1010 Cost Types.....................................................................................1011 Receiving Controls........................................................................1112 Shipping Networks........................................................................1213 Item Costing..................................................................................1214 Item Planning................................................................................1215 Transaction Types.........................................................................1316 Account Alias.................................................................................13

Future Processes.......................................................................................14

Future Process Level Description – Inventory..........................................15

INV.BP.01 – Inventory Organization Structure.........................................21

INV.BP.02 – Define Stock Locators...........................................................22

INV.BP.03 - Maintain Item Category.........................................................23

INV.BP.04 - Maintain Item.........................................................................24

INV.BP.05 - PO Receipt - Inventorying (Delivery to Stores without Inspection)................................................................................................25

INV.BP.06 - PO Receipt - Inspection- Inventorying...................................26

INV.BP.07 - Production Raw Material Movement.....................................27

INV.BP.08 - Production Process - Material Management (Semi FG)........28

INV.BP.09 & INV.BP.10 - Intra-Warehouse/Inter Division Item Movement / Item issue..................................................................................................29

INV.BP.11.1 - Production Scrap Movement – Broken Glass.....................30

INV.BP.11.2 - Production Scrap Movement – Worn Out Moulds..............31


INV.BP.13 – Physical Count.......................................................................32

INV.BP.14 - Min-Max Planning..................................................................33

INV.BP.15 – Period Close Activities...........................................................34

Inventory Business Solution Matrix..........................................................35Critical Requirements.........................................................................35Current Benchmark Activities.............................................................36Current Bottlenecks............................................................................36

Open and Closed Issues for this Deliverable...........................................38Open Issues.........................................................................................38Closed Issues......................................................................................38


Introduction & ScopeThis document consists of the future process designs including high-level design, the new organization (Zoujaj) will operate after the systems are implemented in this project.

The Process Designs included in this document are generic and intended to apply across the whole of the organization. Designs for variants, such as business units or departments, will be produced in this deliverable. The generic process model explains in high-level terms how work will flow in the future and who will be responsible for completing the activities. It is composed of the following components:

Future Business Model (Proposed Model) – A detailed Diagram and necessary descriptions for any proposed business set ups that would form the basis of the proposed processes

Process Flow Diagram—A description of the process level (high-level) design and sub processes in graphical form wherever applicable.

Process Descriptions & Events—A high-level, textual description of the process that is executed in response to each event, together with an identification of the process’ main inputs and outputs.

Sub Process Flow Diagram & Description - A description of the sub process level design and sub processes in graphical form. A textual description and graphical representation of the process that is executed in response to each event, together with an identification of the process’ main inputs and outputs.

File Ref: document.doc Zoujaj/Sierra Confidential

17 of 34

Future Business Model - Inventory1 Organisation Calendar

An Organisational Calendar is a workday calendar, (also called the Manufacturing Calendar) that each Inventory Organization will reference for planning and scheduling activities. An Organisational Calendar as per the normal work day calendar will be setup for Inventory transactions.

2 Organization Structure

The following table lists the inventory organizations at National Factory for Glass Industries for the Riyadh and Dammam Manufacturing / Operating Units:

S.No

Inventory Org

Item Master Org

Usage Sub-inventories

1 Item Master ITM Global Item Definition organization. All items to be used in any Oracle application will be defined here.

N/A

2 Sand Inventory

ITM Maintain Raw Material - Sand

o Sand Stores (Type – Asset, Qty tracked)

3 Limestone Inventory

ITM Maintain Raw Material - Limestone

o Limestone Stores (Type – Asset, Qty tracked)

4 Feldspar Inventory

ITM Maintain Raw Material - Feldspar

o Feldspar Stores - (Type – Asset, Qty tracked)

5 Soda-Ash Inventory

ITM Maintain Raw Material - Soda-Ash

o Soda Ash Stores – BAGS (Type – Asset, Qty tracked)

o Soda Ash Stores – BULK (Type – Asset, Qty tracked)

6 Iron Chromites Inventory (MT)

ITM Maintain Raw Material – Iron Chromites

o Iron Chromites Stores- BULK (Type – Asset, Qty tracked)

o Iron Chromites Stores - BAGS (Type – Asset, Qty tracked)

7 Gypsum Inventory (MT)

ITM Maintain Raw Material – Gypsum

o Gypsum Stores- BULK (Type – Asset, Qty tracked)

o Gypsum Stores - BAGS (Type – Asset, Qty tracked)


17 of 34

S.No

Inventory Org

Item Master Org


8 Coke Powder Inventory (MT)

ITM Maintain Raw Material – Inventory

o Coke Stores- BULK (Type – Asset, Qty tracked)

o Coke Stores - BAGS (Type – Asset, Qty tracked)

9 Selenium Inventory (Kg)

ITM Maintain Raw Material - Selenium

o Selenium Stores- BULK (Type – Asset, Qty tracked)

o Selenium Stores - BAGS (Type – Asset, Qty tracked)

10 Flint Cullets Inventory

ITM Maintain Flint Cullets

o Flint Cullets Stores (Type – Asset, Qty tracked)

11 Green Cullets Inventory

ITM Maintain Green Cullets

o Green Cullets Stores (Type – Asset, Qty tracked)

12 Finished Goods Inventory

ITM Maintain Finished Goods

o Sales Stores (Type – Asset, Qty tracked)

o Staging Area (Type – Asset, Qty tracked)

o Various Division’s need to be defined as SI’s in Finished Goods Inventory Org for convenience of tracking FG (Type – Asset, Qty tracked)

13 Spare Parts Inventory

ITM Maintain Machinery Spares Parts

o Moving Spare Parts Stores (Type – Asset, Qty tracked)

o Slow Moving Spare Parts Stores (Type – Asset, Qty tracked)

o Non Moving Spare Parts Stores (Type – Asset, Qty tracked)

14 Packing Material Inventory

ITM Maintain Packing Material

o Packing Material Stores (Type – Asset, Qty tracked)

o Pallets Stores (Type – Asset, Qty tracked)

15 Manufacturing Inventory

ITM WIP Inventory Organization

o WIP Stores (Type – Asset, Qty tracked)

o Held ware Stores (Type – Asset, Qty tracked)


17 of 34

S.No

Inventory Org

Item Master Org


16 Moulds Inventory

ITM Maintain Moulds o Moulds Stores (Type – Asset, Qty tracked)

17 Consumable Inventory

ITM Maintain Consumables

o Consumable Stores (Type – Asset, Qty tracked)

18 Label Inventory

ITM Maintain Labels o Labels Stores (Type – Asset, Qty tracked)

19 Enamel Inventory

ITM Maintain Enamel o Enamel Stores (Type – Asset, Qty tracked)

Note: Separate Sub inventories will be setup and used to maintain and track the Inventory of damaged and obsolete stock, Ex Damaged Moulds. This will allow the correct segregation of inventory balances for planning and other control purposes.

3 LocationsLocations are used to denote the physical site destinations for purchase requisitions, purchase orders and purchase receipts for the entire Zoujaj organization. Locations will be used independently of the organizations that the transactions occur in. Locations will be setup as physical locations (sites) that exist in Zoujaj.

4 Maintain Sub Inventories

The following will be the characteristics of the Sub Inventory Organisations Nettable Qty tracked Asset Locator Control Enabled - Only for Spare Parts & Moulds Inventory

Organisations

All physical movements of stock within the warehouse must be recorded in the system for “Locator Control Enabled” sub-inventories to ensure that the system reflects accurate Locator information for the respective sub inventories.

5 Maintain Stock Locators

Stock Locators are the exact locations where items are stored. One Sub-inventory can have many stock locators. Inventory Organisations for Spare Parts Inventory & Moulds Inventory will have Stock Locators, as they will be “Locator Control” enabled in the system.

Stock Locator Key Flex Field Structure 2 segment structure

1st Segment – ROW


17 of 34

(Represents Sub Inventory Locations and Containers, if any)

Data Type – Alphanumeric; Size – 20; Validation – Independent; Required = YES

A Value of ‘00’ will indicate “Not Applicable” for the stock locators, where Row is not applicable

2nd Segment – RACK

Data Type – Alphanumeric; Size – 20; Validation – None, Required = YES

A Value of ‘00’ will indicate “Not Applicable” for the stock locators, where Rack is not applicable

Stock Locators are mandatory fields which need to be provided while receiving the respective items into the Spare Parts and Moulds Sub Inventory.

6 Item Maintenance

The Objective of Item Maintenance is to:

Eliminate Duplication Proper Identification Easy Search Correct Indent

All Raw Material, Intermediates, Finished Products, Spare Parts, Miscellaneous Items and Consumables will be set-up as Items in the Inventory module. Oracle inventory will be used to manage both the “Quantity” and “Cost” of the items:

S.No Item Type Item Code

Received at Warehouse Stored in Warehouse

1Inventory Stockable Item Yes Yes Yes

2 Inventory Non-Stock Item Yes Yes No (Ex : Service

Items like AMS, etc)

3

Non-Inventory Non-Stock Item (Category based)

No No No (Final Receipt at End User’s Location)

All spare parts will be maintained in the Spare Parts INV Org.

All Production Raw Materials, Production Consumables, Intermediates, Finished Products will be maintained in the respective Inventory Organisations

Items Coding will as per the coding structure provided by Zoujaj.


17 of 34

7 Item Coding Structure

The item key flexfield will be single segment.

FlexField Name - Item Code

Data Type – Alphanumeric

Size - 20 Characters

Validation – Independent

8 Item Category Structure

8.1 Item Category StructureThe primary item category structure will consist of 1 segment.

Segment – Family

Data type – Alphanumeric; Validation – Independent

S.No Item Category

1 Finished Goods

2 Raw Material

3 Enamels

4 Labels

5 Packing Material

6 Spare Parts

7 Consumables

8 Moulds

9 Scrap

10 Service

9 Unit of Measure

Primary Unit of measure will be the one by which Items will be transacted in Inventory and Order shipping. For Process Items, dual UOM will be captured where ever required.

If purchasing Unit of Measure is different, Standard or Item specific Unit of Measures Conversions are to be established in order to enable procurement in non-primary unit of measure.


17 of 34

Item Specific Inter class conversions are defined on the base unit of measure of the source class. Oracle Inventory will use the base unit of measure to perform Conversions between units of measure in each class and between two different UOM classes.

10Cost Types

A cost type is a set of costs used for Historical, Average, Current and Future costs, as well as for simulation purposes. Only one Cost Type is used to record cost transactions. At Zoujaj, this will be set to “Average Cost’.

11 Receiving Controls

The following table summarizes the set-up for Receiving Controls:

Control type Set-upDestination type and organization

The destination type and organization will be appropriately set at the requisition/purchase order entry stage.Destination Type is “Inventory” for items which will be inventoried, while it is “Expense” where it is not inventoried (e.g. Services, Non-Inventory Items)

1.9.1 Receipt Routing

(Inspection Required)

Scenario 1 : PO Receipt with Inspection RequiredReceipt routing will be set to ‘Inspection Required’ for all items that must be inspected for every inward consignment. This is a 3-stage receiving process – receipt, inspection, delivery into storesThis will require users to enter inspection information, details into the system before the items are received into stores. Destination type will be ‘Inventory’


(Standard Receipt)

Scenario 2 : PO Receipt without Inspection Required

Receipt routing will be set to ‘Standard Delivery’ for all items that do not need to be inspected for inward consignment. This is a 2-stage receiving process – receipt and delivery to storesDestination type will be ‘Inventory’


(Direct Delivery)

Scenario 3 : PO Receipt of Admin, Stationary, Safety Security Items, Services

There will be no Item Code.Goods/ services will be purchased by Item Category and User Defined Description and Distribution Account.

Receipt routing will be set to ‘Direct Delivery’ i.e. single stage process.


17 of 34

Destination type will be set to ‘Expense’. There will not be any delivery into the stores; instead items will be received at the respective Requestor’s Location.

The above settings will default ‘Receipt Routing’ information onto the purchase order shipment lines. The user must override the routing method at the time of PO entry during the following events:

- Set routing method to ‘Inspection Required’ for exception purchases that require inspection; e.g. purchases made from new suppliers

- Set routing method to ‘Standard’ for purchases that will be received first and then expensed at the requesters location


17 of 34

12 Shipping Networks

In the future model, all Inter Organisation transfer transactions will be handled through “only” Miscellaneous Transactions i.e. Miscellaneous Issue and Miscellaneous Receipt.

1. Item On Hand Balances will be verified by the Source Inventory Organisation.

2. A Miscellaneous Issue will be performed by the Source Inventory Organization

3. A Miscellaneous Receipt will be performed by the destination Inventory Organisation at the “Average cost” of the “Source Inventory Organization”.

At Zoujaj, Inter Organisation Transactions through the standard Oracle “Inter Org Transfer” functionality will not be used for Inventory Transfers. However, in view of the future prospective need, the following shipping networks will be set-up to support inter-organizational transfer processes. Additional shipping networks can be added at any time.

Process Source Org

Destination Org

Transfer Type

Reciprocal

Inter Org Transfer DAM RYD In-transit YesRYD DAM In-transit Yes

13 Item Costing

All the Inventory Organizations are on “Average Costing”, hence Oracle Inventory system will calculate automatically the Weighted Average Cost based on the transactions.

14Item Planning

Stock ItemsDefinition: All Inventory Items (having Item Code in Oracle Inventory) will be called Stock Items as per Zoujaj management direction.

All Stock items will be stored at warehouse.

The Items that will qualify for the Min-Max Items criteria will be considered as Stock Items and will be planned by Min-Max planning Team.

T hese items will be planned, stored by Warehouse and will be subsequently transferred to respective stores for consumption

Warehouse Personnel will regularly monitor the movement of such items

Any new item to be introduced will be stringently evaluated for qualifying/ eligibility for being planned by Min-Max functionality.

Any existing item, if found to be slow moving, will be evaluated whether or not this can be re-classified as a Non Moving Item (Stores)


17 of 34

15 Transaction Types

A transaction type is the means to classify, capture, track and report different non-standard inventory related transactions. This feature enables to capture all the business critical inventory transactions which are not in the standard functions and gives complete resolution on the material and cost tracking.

For each new transaction type definition, any of the following actions are to be attached. Issue from stores Subinventory transfer Direct organization transfer In transit shipment Cost update Receipt into stores Miscellaneous Issue Miscellaneous Receipt

16 Account AliasAn Account Alias is an easily recognized name or label representing an account charged on miscellaneous transactions. Account Alias can be used during a view, report, and transaction activities.


17 of 34

Future Processes


17 of 34

Future Process Level Description – InventoryEvent/ Process id

Description of the Response to the Event

Inputs Outputs Frequency

Responsibility

Corresponding Event id in RD20 (Current Business Process Document)

Changes from the existing process

INV.BP.01

Define Inventory Organization StructureOracle Inventory represents the Organization’s Business Units, Manufacturing Sites, Inventory Sites, etc. This includes defining organizations, locations, sub inventories, and Locators.

Inventory Organization structure

Inventories Organizations created, maintained

One Time

Inventory User Departments

INV RD 1.0 NA

INV.BP.02

Define & Maintain Stock LocatorsLocators are used to identify physical areas where inventory items are stored. Quantities can be tracked by locator. Items can also be restricted to specific locators. Locators will set up for Moulds & Spare Parts Inventory’s to identify the exact location of the respective Items. Stock Locators Flexfield will have 2 segments:

1. Row2. Rack

The Store Keeper will need to enter the value for locator segments dynamically while receiving the Items into the respective Sub Inventory.

Absolute locations in row-rack architecture within subinventory

Stock Locators created, maintained

As and when required


INV.RD.3.4 NA

INV.BP.03

Define & Maintain Item CategoriesA category is a code used to group items with similar characteristics, such as Raw Material, Mould, Consumables, etc. For Zoujaj the Items will be grouped under 9 different categories :

1. Raw Material2. Moulds3. Labels & Decoration Material

Classify items into categories and identify elements to build structured description

Defined Item Categories



INV.RD.3.1 NA


17 of 34

Event/ Process id



Responsibility



4. Spare Parts5. Consumables 6. Packing Material7. Finished Goods8. Scrap9. Service Item

INV.BP.04

Define ItemsItems are created & maintained in the Inventory Item Master. Inventory control is maintained for inventory items by quantity and value. The inventory item remains an asset until it gets consumed. The cost of an inventory item is recognized as an expense when it is consumed or sold.

Item required does not have an Oracle Item Code.

Items created, maintained



INV.RD.2.0INV.RD.3.2INV.RD.3.4

NA

INV.BP.05

PO Receipt Inventorying (Delivery to Stores without Inspection)Inventory Items without the need for inspection during Receiving are received into respective Inventory Organisation directly. This is a one step process of directly receiving the Goods at the destination Sub-Inventory

Goods Arrive from vendor

Acknowledged Receipt, and Store directly

On each supplier’s shipment

Warehouse, End Users

INV.RD.4.1 Integrated Process with Purchasing and Accounts Payable

INV.BP.06

PO Receipt Inspection Inventorying (Delivery to Stores after Inspection)Some Inventory Items need inspection during “Receiving” into Inventory. This is a 3 step process where Items are first received, inspected & then delivered to the destination Inventory/Sub-Inventory. Inventory Items requiring inspection during Receiving will be received into a separate Location. Inspection

Goods Arrive from vendor

Acknowledge Receipt, Accept and/or Reject Items, Store

On each supplier’s shipment as per PO Matching Level


INV.RD.4.1 Integrated Process with Purchasing and Accounts Payable


17 of 34

Event/ Process id



Responsibility



information, details, etc are entered into the system before the items are finally received into respective Inventory Organisation.

INV.BP.07

Raw Material - Issues to Production Raw Material will be issued to Production through “Miscellaneous Issue” using the relevant Account Alias.

Raw Material to be issued to production

Raw material issued



INV.RD.4.2 NA

INV.BP.08

Material Management – Semi Finished Goods Movement of Semi Finished Goods will be handled through Miscellaneous issue & Miscellaneous Receipts whenever required. Semi Finished Goods is tracked in the WIP Inventory Organisation. Held Ware Management is also part of the Semi Finished Goods Inventory and will be handled as follows : Held Ware Management – Manufactured Bottles in the “Inspection Process” for resorting and defect checking is the “Held Ware” Management Process. Held Ware will be tracked as a separate Sub Inventory in the WIP Inventory Organization as follows :1. All the defective bottle(s) identified

during the “Inspection” process will be stored in this Sub Inventory for resorting.

2. Good bottles identified during the sorting process will be moved to the Finished Good Sub Inventory at “Manufacturing Cost” through an “Inter-Org” transfer at Average Cost.

Manufacturing Process

Semi Finished Goods and Cullet Inventory

Daily Inventory / Manufacturing User Departments

INV.RD.4.3INV.RD.4.4

NA


17 of 34

Event/ Process id



Responsibility



3. Defective bottles identified during the sorting process will be moved to cullet sub inventory at “Raw Material Cost” (recoverable cost) through Miscellaneous Issue using the “respective” cullet inventory account ( i.e. flint / green)

4. Unrecoverable costs (i.e. net of Raw Material Cost) will be written off to the Manufacturing Loss Account (COGS 2) through Miscellaneous Issue (Product Wise – Ex: Qty is always 1 with the amount representing the Manufacturing loss (net of Raw Material Cost)).

INV.BP.09

Material Management – Intra WH Movement Movement of Items between separate Inventory Organizations (Warehouses) will be handled through Miscellaneous Issue & Miscellaneous Receipts by the destination Inventory with Average cost of the Source Inventory Organization. Since All Raw Materials activities will be tracked through “Individual and Separate” General Ledger Material Accounts, there will be separate Inventory Organizations for the following Raw Materials:1. Sand2.Limestone3.Soda Ash4.Feldspar5.Gypsum6.Coke

Item Transfer need from one warehouse location to another

Items issued/ transferred



INV.RD.4.2 NA


17 of 34

Event/ Process id



Responsibility



7.Selenium 8.Iron Chromites (Only in Dammam)9. Cullet s (Flint & Green Separate)

INV.BP.10

Inter Division TransfersMovement of Finished Goods Items between Divisions will be handled through Miscellaneous issue & Miscellaneous Receipts by the destination Inventory with Average cost of the Source Inventory Organization. The Inter Unit Accounts will be used for Inter Division Inventory Transactions.

Collection of Intermediates and routing them for further operations , Inventorying finished products

Intermediates and Finished Products managed



INV.RD.4.5 NA

INV.BP.11

Scrap ManagementInternally generated scrap (e.g. worn out moulds, etc) during the manufacturing process or in the normal course of business will be written off at Cost. Income or Revenue from Sale of Internally generated scarp will be recorded directly as Misc Income in Accounts Receivables.

Collection of scrap into separate inventory

Scrap inventoried & sold

As and when the scrap is generated, sold


INV.RD.6.1 NA

INV.BP.12

Container Management - Empty Pallets & TraysEmpty Pallets & Trays will be maintained and tracked in respective Packing Material Inventory Organisation. Receipts and Issues will be handled through Misc Receipts and Misc Issues respectively.Broken Pallets, Trays will be written off “at cost” through a Miscellaneous Issue.Income from Sale of Broken Pallets & Trays will be recorded as a Misc Income in Receivables. Pallet with Customers will be tracked

Customer Returned Pallets, Physical Count and verification results

Container Inventory Update and Misc Income for sale of empty / broken pallets/ trays.

As and when applicable


INV.RD.6.1 NA


17 of 34

Event/ Process id



Responsibility



through Order Organizer in Order Management (Item Wise Sale Query). Pallets/Trays returned by customers will be handled through a RMA in Order Management. Details of Transportation like Transporter Name, Cost, etc will be captured at the respective line level through RMA.

INV.BP.13

Physical CountPhysical counting is the periodic counting of individual items throughout the year. Physical inventory is used to reconcile “system-maintained” item on-hand balances with “actual physical count “of inventory. Accurate system On-Hand quantities are essential for managing supply and demand, maintaining high service levels, and production planning.

Physical count of items

Physical Counting at Inventory level

Zoujaj to decide the frequency as a part of policy

Inventory Planner

INV.RD.4.7 NA

INV.BP.14

Min-Max PlanningA planning which looks at both supply and demand within a specified cutoff date and recommends re-order quantity based on the pre-defined minimum and maximum quantity.

Item Replenishment Criteria based / Material Management

System generates Report which suggests the replenishment Quantity

System triggered and/or as and when required

Inventory Planner

INV.RD.4.0 NA

INV.BP.15

Period Close ActivitiesPeriod Close Activities involve completing all the Inventory Material Transactions like Receipts, Issues, updating On Hand Balances write offs, reconciliation, etc that have an accounting impact, to ensure that the Inventory Transactions are accurate before transferring to the General

Performed and completed period activities, reconciliation,

Reconciled system balances. Close Inventory period, Open Next Period,

Period End

Inventory and Finance Department

INV.RD.7.0 Inventory periods are maintained in the respective sub ledger


17 of 34

Event/ Process id



Responsibility



Ledger. The Inventory transactions will have to be transferred from Inventory and posted in General Ledger to complete the accounting cycle. At the end of the period, once it is conformed that all the activities for the period have been completed, the Inventory period is to be closed and the next period has to be opened.


17 of 34

INV.BP.01 – Inventory Organization Structure


17 of 34

INV.BP.02 – Define Stock Locators


17 of 34

INV.BP.03 - Maintain Item Category


17 of 34

INV.BP.04 - Maintain Item


17 of 34

INV.BP.05 - PO Receipt - Inventorying (Delivery to Stores without Inspection)


17 of 34

INV.BP.06 - PO Receipt - Inspection- Inventorying


17 of 34

INV.BP.07 - Production Raw Material Movement


17 of 34

INV.BP.08 - Production Process - Material Management (Semi FG)


17 of 34

INV.BP.09 & INV.BP.10 - Intra-Warehouse/Inter Division Item Movement / Item issue


17 of 34

INV.BP.11.1 - Production Scrap Movement – Broken Glass


17 of 34

INV.BP.11.2 - Production Scrap Movement – Worn Out Moulds


17 of 34

INV.BP.13 – Physical Count


17 of 34

INV.BP.14 - Min-Max Planning


17 of 34

INV.BP.15 – Period Close Activities


17 of 34

Inventory Business Solution Matrix

Critical Requirements

Sl # Critical Requirements as documented in RD.020

Future Business Solution Corresponding Process Id in BP080

Remarks

1 Streamlined Material Handling - Store, Issue, and Receipt

Receiving and storing at Respective Inventory Locations and issue on demand

INV.BP.05INV.BP.06

Complete Solution

2 Item classification and coding of Finished Goods

Items will be classified based on Item categories. Inventory Item Coding is linked to respective GL Product segment value for revenue tracking.

INV.BP.03 Complete Solution

3 Coding for Raw materials, Packing material, Labels, Enamels and Moulds

Items will be classified based on Item categories. Coding will be maintained as per business requirements


4 Item Stock Location Accuracy- concurrence with physical location and book location

Sub Inventory Structure and Stock Locator Flexfield designed to meet Zoujaj business requirements.


5 Physical Stock Count and Adjustment

Physical Count can be performed and values can be adjusted during Physical Count.


6 Safety Stock of Spares This is considered as one of the constituent factors of Min Qty set up to drive Min-Max Planning


7 Follow up with supplier for material delivery

Material Receipts can be entered and tracked in Inventory. PO Status and pending deliveries can be tracked in Purchasing Module.

INV.BP.05INV.BP.06PO.BP.11

Complete Solution

8 Landed Cost Management for Inventory Receipt valuation

Landed Cost will be calculated in Oracle Landed Cost Management (that will be implemented as a separate functionality) to arrive at the total Landed cost of the Item.

NA Complete Solution

9 Inventory Aging analysis Transaction Register can be run Sub Inventory / Item Wise to track and analyze Item movements. Historical Summary Report can be run to review and analyze aging for Inventory Activities

NA Complete Solution

10 Transfer of Held-Ware Stock Inventory to Finished Goods Inventory after resorting of Bottles

This will be handled as part of the Production Process – Material Management for Semi Finished Goods



17 of 34

Current Benchmark Activities

Sl # Current Benchmark as documented in RD.020

Future Business Solution

Corresponding Process Id in BP080

Remarks

1 Approval hierarchy for issue of all Materials

Material Issue will be a secured function that can be handled only by authorized personnel

Not Applicable

Complete Solution

2 Perpetual Physical inventory process

Standard process in Oracle Inventory

Not Applicable

Complete Solution

3 Material receipt and storage

Receiving, Storage and Issue is a standard business process of Oracle Inventory

INV.BP.05INV.BP.06

Complete Solution

4 Material Log Book for Issues

Issues can be entered and tracked in the Oracle System. Transaction Register for Issues can be generated from the system Item Wise.

Not Applicable

Complete Solution

Current Bottlenecks

Sl # Current Bottleneck as documented in RD.020



Remarks

1 Item categorization Met by the Item Code and Item Category Structure


2 Finished goods item coding structure

Items will be classified based on Item categories. Coding will be maintained as per business requirements


3 No proper inventory planning method available. The entire planning are done based on the experience of the ordering department personnel.

Min Max Planning functionality in Oracle Inventory will address the business requirements


4 Trace ability of Items in various stores/ sub-stores/ locations

All Sub Stores at the department/ shops will be defined as Sub inventory. Any



17 of 34

Sl # Current Bottleneck as documented in RD.020



Remarks

inventory Stockable item stays in a sub inventory. All receipt/ issue takes place to/ from sub inventory. Online availability of item quantity at any sub inventory is a standard Oracle Inventory feature

5 No Planning of Spares Min-Max Planning INV.BP.14 Complete Solution

6 ABC classification and cycle count process is not followed

Met by the Item Code and Item Category Structure Spare parts are classified as separately by Sub Inventory to track the respective activities


7 Records are maintained manually

All Transactions can be maintained in the system and reports can be generated to review system activities. There is no need to maintain manual records

Not Applicable

Complete Solution

8 Approval process is Manual

Inventory Activity will be a secured function that can be handled only by authorized personnel

Not Applicable

Complete Solution

9 PO tracking and follow up is Manual

Material Receipts can be entered and tracked in Inventory. Matching can be performed for Material Receipts. PO Status and pending deliveries can be tracked in Purchasing Module.

INV.BP.05INV.BP.06PO.BP.11

Complete Solution

10 Inventory values cannot be adjusted to latest market price if cost is higher, at the year end

Item Cost Update process can be used to update the values of Inventory values to reflect the market price

Not Applicable

Complete Solution


17 of 34

File Ref: document.doc Zoujaj/SA Confidential 38 of 34

Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date

Impact Date

Closed Issues

ID Issue Resolution Responsibility Target Date

Impact Date

File Ref: document.doc Zoujaj/SA Confidential 38 of 34

Documents

BP.080 Future Process Model - · Web viewPallets Stores (Type – Asset, Qty tracked) 15 Manufacturing Inventory ITM WIP Inventory Organization WIP Stores (Type – Asset, Qty tracked)