Supply Chain

Management & Apply

SAP System For Kao VN
Prepared by : Hoang Ngoc Thach
Le Minh Tuan
Vo Tien Thuong
Nguyen Truong Thang
Nguyen Xuan Hiep
Tran Cong Thanh
I. Kao VN Out Line

II. Analyze & Evaluate System

[Link]
 Kao Vietnam 
Overview

Investment License: Nov. 1996

 Open Operation: 15th Jan1997
 Capital: 41,3 mill. USD
 Factory Land: 52379 m2
 Business field: Hair care, Skin
care,
Sanitary Napkin

Domestic Market
Export Market: Japan, Hong Kong,
Taiwan, Malaysia, Thailand
,Singapore.
KAO VIETNAM ‘S PRODUCT
 Supply Chain Key Concept
Supply chain management (SCM)

Definition: Management of material and information flow in

a supply chain to provide the highest degree of
customer satisfaction at the lowest possible cost.

SCM requires commitment of supply chain partners to

work closely to coordinate order generation, order taking
and order fulfillment thus , creating an ‘ extended
enterprise ‘ spreading far beyond the producer’s
location.
 Basic Flowchart SCM
Inventory planning:
Of Kao
+Basic stock for each
Vendor branchplanning:
Demand is the maximum shipment volume of
Customer
replenishment
+Domestic : Based onlead Saletime in past
forecast oneinformation
,sales year. (Ex:
+Safety stock is basic stock plus
campaign Kao to cover the production delay
stock
, promotion)
because: Based
+Export of equipment
on ordercompeting
fulfillmentand the allowance
history for sales
, sales forecast (for forecast
120
difference
Material (manual
Products
days)
planning: operation).
(Materials) (Follow-up)
(To improve
Createdstock out prevention
by sales Personnel and to optimise stock
+Deploy monthly material procurement planning (Include:
Materials Production planning:
Products.)
Materialsprevention Products Products
quantity
+Deployand delivery
monthly & time: before production
daily production planning(for 14
and

Consumption
Production

days)planning.
manpower (MRP File)(Pro plan file).

Procurement Manufacturing Logistic Sales

Purchase Production
Material Inventory Demand
Order Planning**
Requirement Planning Planning

Planning Information (Planning)

 Unification of planning system
Before SAP Project Unification of planning system
•11 daily operation files •Daily base planning
Local Packaging file
PO progress monitor •Total 5 controlled files
Purchasing Future inventory impact /
effect unknown –
1. Daily Update – PO Qty & Delivery date. NEW Production
separately analyse
Planning File
2. Daily Update – Receipt Qty. & Delivery date. needed.
Consumption file
One day Stock Future inventory impact /
Production movement progress
Warehouse effect unknown
NEW–
Planning
monitor separately analyse
MRP(Pac)
1. Daily Update – Receipt Qty & Delivery date. needed. File
•Including 7 2. Daily Update – Consumption Qty.
excel files 3. Daily Update – Defect Qty.
independently FIS Detail Stock movement, Future inventory impact /
•Monthly base NEW
Warehouse PO and receipt progress effect unknown –
MRP(Raw)
planning monitor separately analyse
File
needed.
1. Daily Input – Receipt Qty & Delivery
date.
2. Daily Input – Production Quantity.
3. End month – physical stock count result.
Difficulties in Maintain planning system
1. Increasing controlled Items
items
+ 2. All sister companies already
apply SAP => communication
route is complicated

+
3. Poor monitoring system =>
KPI performance is less than
expectation

+
4. Difficulty in information sharing

+
5. Increasing Mordern Trade in
Vietnam

Every year , it increase about 15% (~ 500 Is Critical for

Items). => Very easy to make mistakes in Kao Vietnam
maintaining files correctly operation
What is SAP

SAP is leading company in ERP program

ERP – Enterprise resource planning – how
to maximize using resource in create
value.
There’s many ERP supply company in the
world.
But SAP play Microsoft’s role in ERP world.
Kao Vietnam SAP scope
1. 2/8 Modules : R/3 and BW (excluded APO)
2. Execute by GBS and Kao Vietnam (not Consultant company)
Management ③ New Dimension Planning

Business Intelligence Supply Chain Management

Business
BW APO Advanced
Information Planner &
Warehouse Optimizer
② Industry Solutions Business to
Strategic SEM B2B Business
Enterprise Procurement
Management
① R/3Core
Account Managment
Personnel Strategy Customer Strategy
Logistics
HAM Customer Relationship
ＨＲ Management
Human Performance
Resource Customer
CRM
Relationship
Complimentary
Management
Software CSP
Program
Published: SAP Japan
Improve supplying performance with SAP

1. Visual management

2. Job Standardization

3. KPI improvement
Visual management
1. Daily consumption checking
Carry out at daily management meeting, documents is available in LAN

2. BW training and confirm

Carry out at daily ,documents is available in LAN
Services level report
DOH report
Vendor performance report

3. Continue Visualization job

Job Standardization – with support from Global supply chain planning, GBS
1. Production Planning job
Discuss and make
Monthly planning
Work Flow
Daily planning
Daily confirmation and follow up
Order issues and follow up
Improving Training and
Check sheet
2. Production operation interaction job performance
Product movement
QIS interface
Grasp team KPI check
連
Cycle count
携
3. Production planning interaction job Action - Network

Sales domestic forecast +Speedy

+Effectiveness
S & OP meeting
+Autonomy

Master maintenance

4. Month-end closing and cost concerned job Firm Foundation

5. Warehousing
Job Standardization – Monthly planning

Sales Forecast
(Demand Forecast)

-For Export product get information 5th of every month.

(5 month forecast receive from BC SCM center. (Lim-san))
-For Domestics get information 1st of every month.
(3 month forecast receive from TMK. Excel file & Global share folder.

Production Planning *2nd week of every month.

Scheduling (From 10th to 15th every month.)

Finish goods 1) Check MRP result by SAP system. (transaction code MD07 for Export or GILM for Domestic)
Inventory balance check 2) Download “Planned order” request which is calculated by MRP into Excel file (YPP028 as MRP
controller or resource or specified Material list). (~ 115 days)
Production Planning 3) Check and modify the production schedule for refer to Batch size (Daily for next month)
Scheduling & Adjustment. Purpose of modification are full batch allocation, Number of production cycle in month (Yield
(SAP & Excel) consideration), change-over consideration, leveling production (Heijunka).
In case of not full batch, prioritized by nearest planned order, available components, big size
MRP Calculation (SAP) 4) Upload to SAP system after adjustment production schedule. (Tr-cd ZPP727)
5) Check the production line capacity by SAP system (transaction code "MF50“, or CM01)
Generate 6) Adjustment production line capacity & resource of man power by SAP system.
Purchase Requisition (transaction code "CRC2 -> OT, increase shift… "MF50 -> Resouce allocation“.)
7) Check the result of adjustment by SAP system. (transaction code "MD07“.)
Raw & Packaging material *) After upload the production planning step-4), the status of production plan
Inventory balance check is Fixed (2-3 month schedule) and it’s not clear/ changed by automatically.
8) Run MRP to HP0-> HP1 -> HP2->HP3, HS0-> HS1->HS2-> HS3
9) After fixed production schedule generate “Purchase requisition” by MRP calculation.
 Job Standardization – Daily confirmation and Follow up
Transaction code PIC (frequency)

GILM check for Dom product GILM Planner (daily)

MRP Log Check MD06/MD07 Planner (daily)

Production Progress YPP442 or COID (Get Variant) Planner (daily)

Negative Stock Check MB52(Get Variant) Planner (daily)

Actual Consumption Check YCO234 Accountant (daily)

Process Order Status Check COID (Get Variant) Planner (daily)

Late Order Item Check YMM479 Ware House-

Keeper (daily)
QIS interface check YMM045 & YMM042 QA (daily)

Planned Order Check COID Planner (daily)

Slow moving of FG check YMM789 Planner (daily)

 KPI improvement

１． Delay Delivery
２． Unavailable Stock
３． Wrong Input
４． Reject By Customer または Cancel By
Customer および Customer Financial
Problem
5 . Avoid Out Of Stock
Thank you very much for your attention