Issued by: HS-PKD-SI-001

Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 1 of 9

1. PURPOSE

The Sales and Operations SOP aims to use backward planning to shorten delivery times, boost customer
satisfaction, and increase market share. This will lead to higher revenue and positive cash flow, while
improving coordination, resource allocation, and production efficiency. The S&OP process also confirms
planned capacity utilization.

Standard Equipment: Achieve delivery within 10 days from receipt of eligible advance, PO.

Standard Plants: Achieve delivery within 30 to 45 days from receipt of eligible advance, PO and
approved layout

Non-Standard Plants: Achieve delivery within 45 to 60 days from receipt of eligible advance, PO
and approved layout

2. SCOPE

This SOP applies to all teams involved in sales, operations, production planning, and supply chain
management within our organization.

3. RESPONSIBILITIES

For detailed information refer to Annexure 1 and Annexure 3 at the end of this document.

4. TERMS & DEFINITIONS

DP – Demand Plan: Connects products with customer orders in the system.

F1 – Forecast 1: Orders parts with a 0 to 45-day lead time for qualifying orders with respect to lead time.

F2 – Forecast 2: Plans for long lead-time orders (over 45 days) based on order pipeline and average.

Although F1 and F2 collected based on customer, Focus to be kept on deliverables (Equipment, Hoppers,
and Skids etc.)
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 2 of 9

5. INSTRUCTION DETAIL

Qualifying Criteria
Planning Qualifying Criteria

Forecast 2 - Orders with a Token advance or PO can be qualified for Forecast 2

Forecast 2 Plan

 The F2 assessment activity should commence on the 15th of every month.

 By the 15th of each month, qualifying orders will move to the F1 plan for manufacturing. Backlog
orders will stay in F2, along with new order from the sales pipeline
 New F2 orders are those that come from the sales pipeline and meet the F2 qualification criteria.
 The new F2 plan will be released before the 20th of the month.
 The financial budget for F2 is 50 to 60 Cr, and the plan should be released by the 20th of each
month.
 A weekly review of Forecast 2 (F2) will be conducted by the Order Office Team every Wednesday
of the week, and the status of orders will be shared with all stakeholders.
 Sales must ensure that all orders are closed as per their commitments for moving to next plan.
 Based on the forecast from Sales/Projects, plan only for long lead items with a lead time of over
45 days and above.
 Other long lead items should be planned according to their lead times and Reorder Point (ROP)
set in the system, based on the consumption pattern from SAP.
 Orders that do not meet the qualifying criteria may be added to F2 only with prior approval from
the Managing Director (MD) and within the Sales and Operations Planning (SNOP) period i.e. from
15th to 20th of every month). Otherwise, such orders will not be included in the F2 plan and will be
considered for the next SNOP period, with the delivery date aligned to that cycle.
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 3 of 9

Qualifying Criteria
Planning Qualifying Criteria
- 10% advance or as per agreement with the customer (eligible advance).
- Site team has completed kick-off and layout discussions.
Forecast 1 - Layout and flowchart submitted and approved by the customer.
- Customer must have started civil work and be ready to accept delivery next month.
- Confirmation of loan from the bank.
Forecast 1 Plan

 The F1 assessment activity should commence on the 15th of every month.

 By the 15th of each month, transfer all F1 orders that qualify for DP to the DP plan. Orders that
do not qualify will remain in F1 as backlogs. These backlogs should then be either allocated or
converted into new F1 orders.
 Orders not meeting F1 criteria remain in F1 without action and should be allocated to New F1
orders.
 At least 80% of orders should be from those with satisfied advances.
 10-20% can be allocated for rush orders (e.g., service requirements for replacement machines).
 Orders will only move to the forecast plan if they meet the qualifying criteria and can be added as
new orders to the F1 plan.
 Only standard equipment (listed in the Annexure 3), structural, and system manufacturing should
start. Products with lead times of less than 30 to 45 days are to be prioritized.
 Non-standard items in plant orders will be considered for manufacturing only if the order is
confirmed, which requires that a sales order number in SAP and both the Bill of Materials (BOM)
and drawings to be released.
 The procurement team will manage the material, which should be ready for pickup in the last
week of the month or 1-2 weeks prior to the DP Plan week.
 Steel for Forecast 1 should be planned in the last week of the month. Consolidate steel
purchases through bidding rather than incremental buying.
 The financial budget for F1 is 45 to 50 Cr, and the plan should be released by the 20th of each
month.
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 4 of 9

 A weekly review of F1 will be conducted by the order office on Wednesday of every week, with
order status circulated to all stakeholders. Sales must ensure that orders planned in F1 are
closed as per commitment.
 Direct addition of orders to F1 is permitted only with prior approval from the Managing Director
(MD) and must occur within the Sales and Operations Planning (SNOP) period, which is from the
15th to the 20th of each month.

Demand Plan

Qualifying Criteria
Planning Qualifying Criteria
- Customer Signed PO / Layout / Flowchart
- 100 % Margin Money received from customer
- Site readiness confirmed, and customer accepts delivery in the DP month.
Demand Plan - DO / Sanction Letter Received /LC
- Direct payment in full or as per the payment schedule, with the customer ready to
pick up material.
- All Non-Std manufacturing to start in the DP Month.

 90% of the planned orders should meet the qualifying criteria

 The remaining 10% can consist of rush orders or equipment that we consciously stock to
mitigate rush orders, based on historical trends and current market conditions.
 The DP assessment activity should commence on the 15th of every month.

 Any backlog from the previous month’s DP, along with new DP from F1, will form the current
month’s DP.
 A new DP should be released on or before 20th of each month, covering the next month’s
DP/F1/F2.
 All FG, with or without customer allocation in DP, should be included in the billing plan.

 Rush Order Handling:

 Rush orders will be planned or incorporated into the DP according to the running average and
market demands (only for standard Equipment as per Annexure 3).
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 5 of 9

 To manage rush orders efficiently, certain equipment can be stocked based on market demand
trends. For system-based equipment, stocking plans can be made with manufacturing clearance.
 Rush orders in the DP should be minimal to ensure smooth plant operations.
 Only standard equipment, small plants, and washing plants are eligible for rush orders. Non-
standard equipment must be planned in advance.
 These plants should not be processed as rush orders and must be planned ahead.
 Plan and stock standard equipment based on market trends to address potential rush orders.
 Ensure factory capacity is considered when creating the DP. If underutilization occurs, standard
equipment can be produced to meet capacity needs.

Billing Plan

Qualifying Criteria
Planning Qualifying Criteria
- Term Loan Payment Cleared by Bank
- Direct 100 % Payment
Billing Plan
- Direct Partial payment as Payment Schedule
- DO + MMR

 The billing plan should be finalized by the 28th of each month. The vehicle plan should be
released with tentative dates, allowing for a maximum variance of +/- 3 days based on the plan.
 Consolidate the vehicle plan based on the complete billing plan and prepare inputs for vehicle
bidding process
 Float an inquiry to selected logistics service providers for vehicle requirements for the entire month
in one go.
 Initiate bidding to finalize the logistics provider.
 Negotiate terms, finalize the logistics provider, and hand over the data to logistics for vehicle
placement.
 Upon receiving the billing plan, logistics should coordinate with the production/planning team to
arrange packing.
 Based on the billing plan, logistics should schedule vehicle loading through the finalized logistics
providers.
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 6 of 9

 Upon the vehicle’s arrival, load the materials, re-verify the quantities of parts loaded, prepare the
necessary documentation, and release the vehicle.

6. PLANNING CYCLE FOR ORDERS NOT COVERED IN SnOP CYCLE

TYPE OF
PLANNING IN LEAD TIME REMARKS
PLANT/EQUIPMENT
Sales has to confirm
such orders to plan MTS
Track Plants PRIOR INTIMATION 120 to 150 Days
in advance for reducing
the lead times.

Primary and secondary Forecast 2 60 to 90 Days

Plants / Semi-mobile Plants
Tertiary Plants / Other than
Primary and secondary Forecast 1 30 to 60 Days
Plants
Washing Segments
(AW/BCD/DUO)/ Forecast 1 20 to 45 Days
Screen/Feeders/ VSI

General Guidelines:

 The load in F1 and F2 should be slightly higher than the DP Plan to account for fluctuations.
 Sales must provide Operations with advance information on top-selling models and equipment,
especially those with higher market demand (including NPD).
 Operations should be prepared for potential increases in equipment volumes based on this
information.
 New product details should be shared during the weekly Order Pipeline Review Meetings.
 A tentative volume forecast should be included to assist in planning.
 The SOP should be reviewed and updated regularly to ensure it evolves and remains effective.
 Orders should progress from F2 to F1 to DP; moving orders backward is not permitted.
 Any backlog exceeding 3 to 4 months in any plan will be considered a lapsed order. The sales team
must rebook these orders with the customer, providing new delivery dates.
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 7 of 9

 Delivery dates are set to begin only after the receipt of the Purchase Order (PO), layout
confirmation, Bill of Materials (BOM) release, and the eligible advance payment. The sales and
project teams need to support this process. Project delivery will commence after fulfill the above
criteria.

Annexure 1

SNOP Deliverables and Responsibility

S.No Key Deliverables Responsible Department Responsible Person

1 Sales Pipe line Inside Sales Dinesh

2 OLD DP / F1 / F2 Assessment Order Office Harish

3 OLD DP / F1 / F2 Report Order Office Harish

4 Assessment of sales pipe line data Order Office / Inside Sales Harish / Dinesh

5 Preparation of New DP / F1 /F2 Order Office Harish

Release of DP / F1 /F2 with

6 Order Office Harish
Deliverables

7 Planning PIR Planning Karthick / Eldho

8 PR Release DP / F1 / F2 Planning Karthick / Eldho

9 PO Release DP / F1 / F2 Procurement Procurement Team / Roji

10 Order Acknowledgement Procurement Procurement Team / Roji

11 Delivery updation Procurement Procurement Team / Roji

12 Conversion Plan Release Planning Karthick / Eldho - Joanle

13 Billing Plan Closure Order Office Adithya

14 Billing Plan Release Order Office Adithya

15 Receive budget and vehicle plan Project Manu

16 Prepare vehicle loading Drawing Design Design Team

17 Vehicle Planning Procurement Hari Mohan

18 Vehicle Bidding Order Office Roji

 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 8 of 9

ANNEXURE 2

Function Preplanning Forecast 2 Forecast 1 DP Billing

Release of Sales Pipeline

14th of Every month

Inside Sales Assessment of planned F1 / F2

Every Week

Assessment of sales pipe line Old Billing Plan

OLD F2 Assessment OLD F1 Assessment OLD DP Assessment
data Assessment

16th of every month 15th of Every month 15th of Every month 15th of Every month 14th of every month

Previous F2 Assessment Report Previous F1 Assessment Report Previous DP Report Previous BP

Generation Generation Generation Assessment Report

16th of every month 16th of every month 16th of every month 16th of every month
Order Office Previous Billing Plan
Preparation of New F2 Preparation of New F1 Preparation of New DP
Closure

17th -18th of every month 17th -18th of every month 17th -18th of every month 28th of every month

Release of DP with
Release of F2 with Deliverables Release of F1 with Deliverables New Billing Plan Release
Deliverables

19th -20th of every month 19th -20th of every month 19th -20th of every month 30th of every month

Planning PIR Previous DP Assessment

20th of every month 13th of every month

PR Release F2 PR Release F1 PR Release DP

Planning 23rd of every month 22nd of every month 21st of every month

Conversion Plan Release

28th of every month

PO Release F2 PO Release F1 PO Release DP Vehicle Planning

28th of every month 28th of every month 26th of every month 02nd of every month

Order Acknowledgement
Order Acknowledgement for F2 Order Acknowledgement for F1 Vehicle Bidding
for DP

procurement
30th of every month 30th of every month 30th of every month 05th of every month

Delivery updation for F2 Delivery updation for F1

Within a week of PO release Within a week of PO release

Receive budget and

vehicle plan
Project
th
24 of every month

Prepare vehicle loading

Drawing
Design
28th of Every month
 Issued by: HS-PKD-SI-001
Shammy Sebastine
SOP For Sales and Ver 00
Date:12-09-2024 Approved By: Operations Page 9 of 9

ANNEXURE 3

EQUIPMENTS PLANNED FOR RUSH ORDER

SL.NO TYPE FG CODE DESCRIPTION
1 JAW 301229 JC130\90KW\QT\MW
2 JAW 301338 JC145\132KW\QT\MW
3 CONE-HF 301455 HF220\160KW\COA\PNL
4 CONE-HF 301456 HF270\225KW\COA\PNL
5 CONE-HF 301447 HF150\110KW\COA\PNL
6 CONE-EC 301336 EC3500\225KW\EC
7 CONE-EC 301467 EC2500\160KW\EC
8 VSI 301460 VSIEP7X\160KW\3P\PNL\SKD
9 VSI 301461 VSIEP7X\187KW\4P\PNL\SKD
10 VSI 301464 VSIEP6X\110KW\3P\PNL\SKD
11 VSI 301465 VSIEP6X\75KW\3P\PNL\SKD
12 VSI 301463 VSIEP8X\225KW\3P\PNL\SKD
13 SCREEN 301191 VS600200\4D\22KW\V32
14 SCREEN 301344 VS1855\3D\15KW\V22
15 SCREEN 300073 VS1855\4D\22KW\V32
16 SCREEN 300059 VS1845\3D\15KW\V22
17 SCREEN 300627 VS1845\4D\15KW\V22
18 PANFEEDER 300013 PFVM2208\2.2 KW
19 PANFEEDER 300099 PFVM17580\1.5KW
20 GRIZZLY FEEDER 301263 GFEM3209\3.8KW
21 GRIZZLY FEEDER 301443 GFEM4211\5.5KW
22 DUO 300056 DUO80\8.5KW\1\0.5\2.3
23 DUO 300052 DUO120\11.9KW\1\0.5\2.3
24 ADDWASH 300634 AW85F\P15KW\V3.8KW\1\0.5\2.5
25 ADDWASH 301154 AW125F\P18.5KW\V3.8KW\1\0.5\2.5
26 ADDWASH 301181 AW205F\P30KW\V7.5KW\1\0.5\2.5