TagsBusiness Process Cargo Taxes Invoice Excise
File Size412.3 KB
Total Pages73
Table of Contents
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Page 36

4 Materials

As Is Business Process and Business Requirement from Kajaria To Be Business Process for Kajaria

AS-IS Business Process

At Kajaria Ceramics, any material is required, it’s generated
through purchase requisition and approved by the individual dept
head and forwarded to the purchase dept for the procurement.

Materials requirements are identified either in the user
departments or via the demand-based approach to inventory

The regular checking of stock levels of materials defined by
master records, use of the order-point method, and forecasting
on the basis of past usage are important aspects for identifying
the material requirement for purchase.

Minimum and maximum level of stock is maintained in stores.
When the material falls below minimum level, a Purchase
Requisition/Indent is created by stores. The stock is monitored
on daily basis by taking the report from legacy system.

In case of plan for more production, production department
creates indent for raw materials.

Business Requirements

The purchase requisition shall be created through SAP standard
system. A purchase requisition can be created manually as well
as automatically through MRP run. The business requirement is
to have a different number range for PREQ’S for both the plants
for differentiating and identifying purpose on plant basis.

The purchase requisition should be created for services and
materials requirements

Suggested Business Process

A purchase requisition is a request or instruction to Purchasing to
procure a certain quantity of a material or a service so that it is
available at a certain point in time.

Purchase requisition contains item category, account assignment
category, material group, quantity and delivery date of the material
to be supplied or the service to be performed.

Purchase Requisitions are created under the following situations:

a. Purchase Requisitions shall be created - automatically on MRP
Run or manually by the requesting department.

b. Purchase requisition shall be created manually as well as
automatically by the plant maintenance.

4.3.2 Sub-Process Scope: Approval of Purchase Requisition

Business Blue Print – Materials Management – Mr. ‘P.N.Pareek’, Mr.Prem Kumar- Kajaria, Mr. ‘Rajesh Mahajan’ – SEAL Page 36 of 73

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