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)

UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - MM Module

Organization Structure
Bhilai Steel
Plant

Works
1000

Non Works
1100

Township

Mines
1200

Medical

IOC (Rajhara)
Nandini
Hirri

UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - MM Module

Materials Procurement

UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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 )
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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 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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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 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 .

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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 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 :

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

System based Process flow
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 )

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - MM Module

Suppliers Relationship
Management(SRM)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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)

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

USERS

5287

Purchase Groups

90

Roles

137

Release Strategies
with all variations

520

UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP : e-Procurement of Materials

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

cFolder

Create & Release

Purchase Requisition

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP - Procurement of Materials : SRM

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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Materials : SRM

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Materials : SRM

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Inventory Stores & Spares

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

System Configuration Statistics

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

Plant : 1000 BSP Works

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

Plant : 1000 BSP Works

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

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 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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

Main Stores Activities
(Plant , Mines , Medical)
Indigenous Purchase Orders
Imported Purchase orders

Project Purchase orders

Incoming Excise Invoice Capturing
LSHS receipts through RAIL. ( wagon tracking receipts
by 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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

Main Stores Activities
(Plant , Mines , Medical)
Vendor Returns in case of rejection.
Excise invoice generation through system.

Lube Vendor Managed Inventory process.

Activities on system :
Creation of CCN (consignment control number on receipt
of consignment)

RN creation (movement type : 103)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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 receipt
of consignment)

RN creation (movement type : 103)

UD by Inspection department.
RC creation ( Release of GR Blocked stock 105)
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

Main Stores Activities
(Plant , Mines , Medical)
Vendor Returns in case of rejection.
Excise invoice generation through system.

Lube Vendor Managed Inventory process.

Activities on system :
Creation of CCN (consignment control number on receipt
of consignment)

RN creation (movement type : 103)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

Main Stores Activities
(Plant , Mines , Medical)
Indigenous Purchase Orders
Imported Purchase orders

Project Purchase orders

Incoming Excise Invoice Capturing
LSHS receipts through RAIL. ( wagon tracking receipts
by 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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP Inventory Management - Stores & Spares

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Materials : SRM

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement of Services

UTKARSH ERP / MES Project at Bhilai Steel Plant

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
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

System Configuration Statistics

Plant

Purchase Organization

2 (Service Contract cells & CPD)

Purchase groups

40

Fund Centers

1170

Release Strategies

410

Roles

4000+

Users

2000+

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

PR Tendering PO RA / Final Bill

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP - Procurement of Services

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP - Procurement of Services

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Inventory - Raw Materials

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

Procurement Process Materials (Indent to Order)

ERP / MES

System Configuration Statistics

No of Plants :

No of Storage locations :

43

No of Roles :

51

No of Users :

104

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

System based Process flow
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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP - Procurement of Materials : SRM

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement of Services

Thank You

UTKARSH ERP / MES Project at Bhilai Steel Plant

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP Procurement & Inventory

Compliance features

UTKARSH ERP / MES Project at Bhilai Steel Plant

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - MM Module

Major Processes Covered

Process

Functional Coverage

Procurement of
Services

PR Tendering PO RA / Final Bill

Procurement of
Materials

PR Tendering (ECC & SRM) PO

Inventory Stores Receipt Stock Transfer

& Spares
Consumption
Inventory Raw
Materials

Receipt Stock Transfer

Consumption
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Services

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)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

Stages where Planning for Budget is essential

Purchase Requisition

Purchase Order

Service Entry Sheet

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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
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)

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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.
UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Services : Effective Management of Funds

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP - Procurement of Materials

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 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

UTKARSH ERP / MES Project at Bhilai Steel Plant

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

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

Consumption

PR
DUES

PO
DUES

STOCK
(INVENTORY)

CONSUMPTION

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

CONSUMPTION PLAN:

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

Procurement Process Materials (Indent to Order)

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.

UTKARSH ERP / MES Project at Bhilai Steel Plant

ERP / MES

ERP Inventory Management - Stores & Spares

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)

UTKARSH ERP / MES Project at Bhilai Steel Plant