Sample Process Template Scm.docx

BP 80/BR30 HIGH-LEVEL FUTURE PROCESS MAPPING DOCUMENT SUPPLY CHAIN MANAGEMENT KING KHALED EYE SPECIALIST HOSPITAL -RIYADH

Author:

SCM Team

Creation Date:

March10,2012

Last Updated:

March 13,2012

Document Ref:

BP80.SCM

Version:

V1.0

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Document Control Change Record

Date

Author

Version

Change Reference

13-03-2012

SCM Team

V1.0

No previous document

Reviewers Name

Position

Hashem Al Shaya Ammar Hizazi

Project Manager – KKESH IT Director -KKESH

Quality Cell Suryanarayana

Quality Cell Program Manager

Signature

Date

Distribution Copy No.

Name

Location

1

Library Master

Project Library

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.

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Contents DOCUMENT CONTROL ................................................................................................................................................................. 2 INTRODUCTION ............................................................................................................................................................................ 4 PROCESS SYMBOLS...................................................................................................................................................................... 5 CHAPTER PURCHASING ......................................................................................................................................................... 6 PROCESS LISTING AND DESCRIPTIONS FOR SUPPLY CHAIN MANAGEMENT ................................................................................. 7 SCM_ITEM_01: NEW PRODUCT INTRODUCTION – PROCESS FLOW ........................................................................................... 9 SCM_ITEM_01: NEW PRODUCT INTRODUCTION ..................................................................................................................... 10 SCM_PUR_01: PROCURE TO PAY - PROCESS FLOW ................................................................................................................. 12 SCM_PUR_01: PROCURE TO PAY ............................................................................................................................................ 13 SCM_PUR_02: REQUEST FOR QUOTATION – PROCESS FLOW .................................................................................................. 19 SCM_PUR_02: REQUEST FOR QUOTATION PROCESS FLOW ..................................................................................................... 20 SCM_PUR_03: PETTY CASH PURCHASE ORDER – PROCESS FLOW .......................................................................................... 24 SCM_PUR_03: PETTY CASH PURCHASE ORDER PROCESS ....................................................................................................... 25 SCM_PUR_04: TENDER PROCESS – PROCESS FLOW ................................................................................................................ 27 SCM_PUR_04: TENDER PROCESS ............................................................................................................................................ 28 CHAPTER INVENTORY ......................................................................................................................................................... 31 PROCESS LISTING AND DESCRIPTIONS FOR SUPPLY CHAIN MANAGEMENT - INVENTORY ......................................................... 32 SCM_REC_01: RECEIVING STOCK ITEMS - PROCESS FLOW .................................................................................................... 36 SCM_REC_01: RECEIVING STOCK ITEM .................................................................................................................................. 37 SCM_REC_02: RECEIVING NON STOCK ITEMS – PROCESS FLOW ............................................................................................ 38 SCM_REC_02: RECEIVING NON STOCK ITEM .......................................................................................................................... 39 SCM_REC_03: RETURN GOODS TO VENDOR ........................................................................................................................... 42 SCM_REC_04: RECEIVING FIXED ASSET – PROCESS FLOW ..................................................................................................... 43 SCM_REC_04: RECEIVING FIXED ASSET ................................................................................................................................. 44 SCM_INV_01: STOCK TRANSFER BETWEEN MAIN WAREHOUSE AND CSSD, OR – PROCESS FLOW ....................................... 45 SCM_INV_01: STOCK TRANSFER BETWEEN MAIN WAREHOUSE AND CSSD, OR ................................................................... 46 SCM_INV_02: STOCK TRANSFER BETWEEN CSSD AND USER DEPARTMENT – PROCESS FLOW .............................................. 48 SCM_INV_02: STOCK TRANSFER BETWEEN CSSD AND USER DEPARTMENT .......................................................................... 49 SCM_INV_03: STOCK ISSUE OUT FROM USER DEPARTMENT – PROCESS FLOW ..................................................................... 51 SCM_INV_03: STOCK ISSUE OUT FROM USER DEPARTMENT .................................................................................................. 52 SCM_INV_04: SUB INVENTORY TRANSFER – PROCESS FLOW ................................................................................................. 54 SCM_INV_04: SUB INVENTORY TRANSFER ............................................................................................................................. 55 SCM_INV_05: PHYSICAL COUNTING – PROCESS FLOW ........................................................................................................... 56 SCM_INV_05: PHYSICAL COUNTING ....................................................................................................................................... 57 SCM_INV_06: ABC ANALYSIS – PROCESS FLOW.................................................................................................................... 58 SCM_INV_06: ABC ANALYSIS................................................................................................................................................ 59 CHAPTER ORDER MANAGEMENT .................................................................................................................................... 62 PROCESS LISTING AND DESCRIPTIONS FOR SUPPLY CHAIN MANAGEMENT – ORDER MANAGEMENT........................................ 63 SCM_OM_01: DISPATCH ITEMS TO EYE CARE CENTERS – PROCESS FLOW ............................................................................. 64 SCM_OM_01: DISPATCH ITEMS TO EYE CARE CENTERS ......................................................................................................... 65 SCM_OM_02: RETURN ITEM FROM EYE CARE CENTER – PROCESS FLOW ............................................................................... 66 SCM_OM_02: RETURNS ITEM FROM EYE CARE CENTER ........................................................................................................ 67 OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE .................................................................................................................. 68 Open Issues ........................................................................................................................................................................... 68 Closed Issues ........................................................................................................................................................................ 68

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Introduction The objective of this document is to describe Supply Chain section As - Is business processes followed within KKESH Organization. This document intends to enlighten the Future Business Process of KKESH. In addition, the document includes a descriptive overview of the Purchase Department, Warehouses and End User Departments processes and other information required in support of these processes. The document covers the following: § Future Business Processes Flows (As – Is Business Process at KKESH) § Future Business Processes Narrative Descriptions

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Process Symbols The following symbols represent different actions/activities in a process flow and it is included to facilitate process communication. Process

This symbol represents a group of steps or activities to perform

Decision

This symbol represents a Decision. Decisions are typically phased as Yes / No Questions

Document

This symbol represents information input/output such as report or document. This symbol does not always imply hard copy, as some are verbal

Reference

This symbol represents an offset page reference. Indicates a cross reference with another page of the flowchart

Start / End

This symbol represents start and end of the process

This represents the input symbol of information entered into the Database Oracle DB

Manual Operation

This represents the Manual Operations. Manual Operations are all parts of process which are carried outside the Oracle System

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Chapter Purchasing

Supply Chain Management Purchasing This Chapter covers the Future Business Processes related to Purchase Department

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Process Listing and Descriptions for Supply Chain Management ID

Process Title

Description of Process

SCM_ITEM_01

New Product Introduction

A requestor can initiate the process of requesting to add a new item in the system. To adopt appropriate methodology while defining an item in the Oracle system this process will be followed. A person or team will have authority to decide on Item category, UOM & other requisite attributes and then define item in the system.

SCM_PUR_01

SCM_PUR_02

Procure to Pay Basic flow

Request for Quotation

The Procure to Pay Process Flow starts with the Purchase Requisition and ends with the payment to Supplier. The flow mentioned in this process covers the Purchase Requisition, Purchase Order, Receipt, Invoice and Payment. This process flow will be used for purchasing where the suppliers, rates etc. are available with KKESH. In case of no supplier or rates available, the Purchasing Department will follow the tendering process. In case the request is for the items where contract rates or supplier is not finalized the Purchase Department will follow this process.. The Procure to Pay Basic Process Flow will branch out to the Request for Quotation Process after the Purchase Requisition Creation. This process covers the Creation of Request for Quotation, Receiving Quotes, Quote Analysis, Award and PO Generation. The End point of Request for Quotation Process will be generation of Purchase Order. At this point, the Request for Quotation Process Branches into the Procure to Pay Basic Flow.

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ID

Process Title

Description of Process

SCM_PUR_03

Petty Cash Purchase Order

SCM_PUR_04

Tender Process

In many situations, the Purchasing Department needs to make cash purchases. This process will be followed whenever any purchase is made using petty cash. In case of Non-Contracted Items, the Purchase Department will have to follow a Tendering Process. Tendering, Evaluations, Negotiation, Awarding will be done as per prevailing procedure. MOH approval will be obtained and then the Purchase Order will be raised for contracted rates.

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SCM_ITEM_01: New Product Introduction – Process Flow

New Product Introduction

Enter Requisition

Query for Item

Item Code Available ?

No

Stock Item ?

Requestor

Start

Item Code Request Form

No

Create Requisition

Yes

Item Code Authority

Yes

Mention New Item Code

Create Item in System Enter all required attributes

Mention existing item code

End

Review the request

Can Existing Item code be used?

No

Yes

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SCM_ITEM_01: New Product Introduction ID

Description

SCM_ITEM_01.01 The process of introduction of new item will start when required Item code cannot be fetched by Requestor in the system. SCM_ITEM_01.02 A Requestor will fill the New Product Introduction Form. Forward the form to Item Code Authority SCM_ITEM_01.03 The person or team having authority for Item codification will review the request.

Menu

Type

Result

Agent

Requisitions> System Requisitions

Next Step

End user

Manual

Next step

End User

Manual

Next step

Item Code Authority section

First the team will confirm no matching existing Item code is available for the item description mentioned in the Request Form. If the appropriate item code exists in the system no new item is created in the system. While doing necessary check for description, category, attributes, UOM, etc is needed. The same item code is mentioned in the request form and sent back to Requestor. If no matching item code is available new Item is created.

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ID

Description

SCM_ITEM_01.04 Create Item in Item Master. Assign appropriate attributes, UOM. Assign the new item to Inventory Organization (Warehouse) & User Department. A new Non-stock Item will not be assigned to Warehouse. SCM_ITEM_01.05 The same item code is mentioned in the request form and sent back to Requestor.. SCM_ITEM_01.06 The Requestor can raise the requisition for the item using new Item Code.

Menu

Type

Result

Agent

Items > Master Items

System

Next step

Item Code Authority section

Manual

Next step

Item Code Authority section End user (Sock)

Requisitions> System Requisitions

End

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SCM_PUR_01: Procure to Pay - Process Flow

Payable Dept

Purchasing Dept

Inventory Control Dept

SCM_PUR_01: Procure to Pay Process Flow

Refer Re-order Planning Report, Backordered Internal Requisition

Start

Warehouse Create Receipt

Purchase ReqisitionWarehouset/End user Deptt

Approved Purchase Requisition- Buyer Supervisor Pool

END

Purchase Requisition Approval BY RESPECTIVE AUTHORITY

Assign BuyerBuyer Supervisor

RFQ Required?

SCM_PU R_02

YES

NO

BUYER: Auto Create PO

BUYER: Enters necessary details in PO & Submit for Approval

Payable Dept. (Invoice, Payment)

Approve POAs PerApproval Heirarchy

BUYER: PO Print out & co ordinate with Supplier

Supplier

END

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SCM_PUR_01: Procure to Pay ID

Description

Menu

SCM_PUR_01.01

Purchase Requisition Creation

Type

Result

Agent

Requisitions> System Requisitions

Next Step

Warehouse Inventory Controller

Requisitions> System Buyer Work Center

Next Step

Warehouse Material Manager

The Procure to Pay Process starts with the raising of the Purchase Requisition. The Purchase Requisition is raised whenever an Item needs to be ordered from the Supplier. 

KKESH Inventory Control Department will raise the Purchase Requisition for stock items. The Planner can refer the Re-order Planning report and the Backorder Internal Requisition Report to arrive at quantity to be procured.



SCM_PUR_01.02

The KKESH End Users will raise a Purchase Requisition for Non-Stock Items Approval of Purchase Requisition as per Approval Hierarchy set in Oracle

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ID

Description

Menu

Type

Result

Agent

Buyer Work Center > Requisitions

System

Next Step

Purchase Manager

AutoCreate OR

System

Is RFQ Required?

Buyer

Purchase Requisition will be sent for Departmental Approval, simultaneously Budgetary Approval.

SCM_PUR_01.03

The Approved Purchase Requisitions are available in the Buyer’s Supervisor Pool. The Approved Purchase Requisition will be assign to specific buyers for further processing. Buyer Supervisor will assign Approved Purchase Requisition to appropriate Buyer The Buyer Supervisor will be responsible for reviewing all the Approved Purchase Requisitions.

SCM_PUR_01.04

The approved requisitions can be assigned to specific Buyers for further action through the Manage Buyer Workload form Approved Purchase Requisition will be available in Buyer’s Auto Create Screen for further processing. The Buyer will create RFQ or Purchase Order.

If Yes

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ID

Description

Menu

In case of RFQ please refer process Purchase SCM_PUR_02. Orders > Purchase Order Summary SCM_PUR_01_05 Buyer Reviews the Purchase Order and Purchase submit for approval Orders > Purchase The details contained in the Purchase Order Requisition viz. Item, Unit of Measure, Summary Quantity Requested, Need-By date will be defaulted to the Purchase Order.

SCM_PUR_01.06

The Buyer will complete the Purchase order by filling the following details - Supplier Details - Shipment Schedule - Any Attachments to the Purchase Order Purchase Order Approval The System will route the Purchase Order for approvals as per the defined approval hierarchy

Purchase Orders > Purchase Order Summary

Type

Result

Agent

Go to Process ID :SCM_PUR_02

System

Next Step

Buyer

System

Next Step

Buyer

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ID

Description

SCM_PUR_01.07

The Buyer can take printout of the Approved Purchase Order and send the Purchase Order either by email or Fax or courier to the Supplier. Supplier Acknowledges Purchase Order

SCM_PUR_01.08

Menu

Type

Result

Agent

System/Manual Next Step

Buyer

Manual

Next Step

Buyer/ Supplier

Manual

Next step

Supplier

System

Next Step

Main Warehouse Receiver Technical Department

The Supplier will communicate the acknowledgement and the acceptance of the Purchase Order to the Buyer.

SCM_PUR_01.09

SCM_PUR_01.10

The Buyer will note the Supplier Acknowledgement on the Purchase Order Supplier delivers the Goods

Main Warehouse receives Goods & Creates Receiving > Goods Receipt & Delivery Receipts -

-

Receiving Section of Main Warehouse will receive the Goods and create GRN in the System. As per Item Definition & Setup at Purchase Order Level Inspection of Item will be carried out

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End user Department

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ID

Description

Type

Result

Agent

Invoice > Entry > Invoices

System

Next Step

Supplier

-

SCM_PUR_01.11

SCM_PUR_01.12

The Receipt (GRN) will be printed from the System Invoice Submission By Supplier. Invoice Creation and Matching by Payables Department

Menu

Once the Invoice is received from the Supplier, the Payables department will create the Invoice in the System and match it with the Receipt. Payables Department will record the Payments > payment in the system and print the Entry > payment document Payments

Payables Department

System

Next step

The Payables Department creates the Payment in the System and the payment is made in any of the following ways - Check - Bank Transfer In case of Bank Transfers, the Payables department can generate an XML file from the System for sending the Payment Instructions to the Bank. ___________________________________________________________________________________________________________________________________________ SCM BP80 KKESH/

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Payables Department

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ID

Description

SCM_PUR_01.13

Payment Collection by Supplier

Menu

Type

Result

Agent

Manual

Stop

Supplier

Supplier will collect payment from Payable Department in case of payment is by Check

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SCM_PUR_02: Request for Quotation – Process Flow SCM_PUR_02: Request for Quotation Process

Purchase Department

SCM_PU R_02

Receive Quotation

Auto create RFQ

Query for RFQ & enter Quotations

Enter details in RFQ and change the status to Active

CUSTOM Change the status of RFQ in Tracking System

Printout of RFQ

CUSTOM Enter detail of Requisition, RFQ no in RFQ Tracking System

Send RFQ to Suplierr

CUSTOM Printout of Quote Analysis

SCM_P UR_01_ 05

Approve Quotation & Convert to PO

CUSTOM

Technical/Finance/User/ Purchase

Change the Status in RFQ Tracking System

Wait till Close date Receive all Quotations

Open all submitted Quotations

Quote Analysis, Negotiation & Finalize Supplier

Approval for the Supplier selected

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SCM_PUR_02: Request for Quotation Process Flow ID

Description

SCM_PUR_02.01 Buyer Auto creates RFQ The details from the Purchase Requisition will be copied to the RFQ by the System. SCM_PUR_02.02 Completion of RFQ Buyer will fill in the details like  Due Date  Close Date  Shipment Quantity if consignment is to be received in multiple shipments  Select Suppliers to whom RFQ will be sent Change the status to Active SCM_PUR_02.03 Print RFQ & send it to Suppliers Buyer will take printout and send RFQ to Supplier. (Fax, Email or Hard Copy)

Menu

Type

Result

Agent

Auto Create System

Next Step

Purchase Department

RFQ’s and Quotations > RFQ’s

System

Next Step

Purchase Department

RFQ’s and Quotations > RFQ’s

Manual

Next Step

Purchase Department

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ID

Description

Menu

Type

Result

Agent

RFQ’s Tracking

Custom

Next Step

Purchase Department

SCM_PUR_02.05 Quotation Submission

Manual

Next Step

Suppliers will submit Quotations to Purchase Department. The quotations are accepted till Close Date specified. Single Quotation are accepted from the supplier SCM_PUR_02.06 Opening of Quotations

Purchase Department

Manual

Next Step

Purchase Department

System

Next Step

Purchase Department

SCM_PUR_02.04 Enter details of Requisition & RFQ in Tracker System The custom build Tracker system will help to cater queries from Original requestors for the item. Access to this tracker system will be given to Requestors who then can query & get the status of its Required items.

All submitted Quotations are opened by the Buyer SCM_PUR_02.07 Upload all Quotations in system All submitted Quotations are entered/uploaded against the RFQ number.

RFQ’s and Quotations > Quotations

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ID

Description

SCM_PUR_02.08 Enter details in RFQ Tracker System The buyer changes the status in Tracker System for respective RFQ. SCM_PUR_02.9

Printout of Quote Analysis. Submit a Request to take printout of comparative statement for all quotations submitted.

SCM_PUR_02.10 Quote Analysis.

Menu

Type

Result

Agent

RFQ’s Tracking

Custom

Next Step

Purchase Department

RFQ’s and Quotations > Quote Analysis

Custom Report

Next Step

Purchase Department

Manual

Next Step

Purchasing

Depending on the nature of the RFQ, various parties will be involved in the Quote Analysis and Award. For the purpose of this document, the party doing the quote analysis will be referred to as ‘Quote Analysis Committee’. The depending on the nature of RFQ the decision taken is sent for Approval. The necessary justification & remarks are also added in the document

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ID

Description

SCM_PUR_02.11 Approval of Quotation On receipt of decision and approval the Buyer approves the Quotation in the system & converts it into Purchase Order. SCM_PUR_02.12 The Purchase Order is created Once the Purchase Order is created the same process id followed. Ref SCM_PUR_01_05

Menu

Type

Result

Agent

RFQ’s and Quotations > Quotations

System

Next Step

Purchasing

RFQ’s and Quotations > Quotations

System

Next Step

Purchasing

Tools >Copy document

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SCM_PUR_03: Petty Cash Purchase Order – Process Flow

Payable Dept

Purchase Dept

User Department

SCM_PUR_03: Petty Cash Purchase Order

Start

Buyer will decide Petty Cash Purchase

Create Purchase Requisition

Buyer completes Purcahsing Process

Approve Purchase Requisition

Auto Create Purchase Order. Supplier Petty Cash

Enter actual purchases in Purchase Order

Approve Purchase Order

Cashier pays the amount

Create GRN against the PO

Invoice Creations adjusting against prepayment

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Printout of PO & attach Original Bill

End

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SCM_PUR_03: Petty Cash Purchase Order Process ID

Description

Menu

Type

Result

Agent

SCM_PUR_03.01

Approved Purchase Requisition from End user Department

AutoCreate

System

Next Step

End user Purchaser Requester

AutoCreate

System/Manu al

Next Step

Purchase Department

Manual

Next Step

Purchase Department

System

Next Step

Purchase Department

SCM_PUR_03.02

SCM_PUR_03.03

SCM_PUR_03.04

All the steps for PURCHASE REQUISITION approval as per process Id: SCM_PUR_02.01 to SCM_PUR_02.02 Approved Purchaser Requisition in Buyer’s Auto Create Buyer will take Decision : Can it be a Petty Cash Purchase? For eg: Low value goods available in local market Buyer will complete all the Process Cash Purchase Buyer will do cash purchase of goods Buyer Creates Purchase Order To record the Petty Cash Purchase in the system Buyer will auto create Purchase Order using Petty Cash Supplier.

Purchase Orders > Purchase Order Summary

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ID

Description

SCM_PUR_03.06

Buyer will put all related information in to purchase Order for reference, Purchase amount etc. Buyer will create GRN against the Petty Cash Purchase Order Buyer will Go to Payables Cashier

SCM_PUR_03.07

Buyer will take a Print out of Purchase Order. Buyer Submits Original Bill & Purchase order prints out to Payables Cashier and collect the Payment. Invoice Creation & Payment

SCM_PUR_03.05

Payable Department will create invoice and Adjust it against Petty cash Prepayment

Menu

Type

Result

Agent

Receiving > Receipt

System

Next Step

Manual

Next Step

Purchase Department Purchase Department

System

Stop

Invoice > Entry > Invoices

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Payables Department

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SCM_PUR_04: Tender Process – Process Flow

Committee

Supplier

Purchase Department

SCM_PUR_04: Tender Process

Start

Create the list of items Medical & Non Medical for tender

Check list for any addition/ deletion

List of items for Tender

Prepare Tender

Publish Tender

Create Blanket Purchase Agreement

SCM_PU R_01.04

Collect/ Purchase Tenders

Opening of Tenders

Submit sealed Quoations

Technical Evaluation , Sample testing

Recomme ndation of Technical Team

Commerci al Evaluation

Award Decision

Item / Supplier Award list

Approval from MOH

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SCM_PUR_04: Tender Process ID

Description

Menu

Type

Result

Agent

SCM_PUR_04.01 List of items for which rates needs to revised

System

Next Step

Buyer

List of Medical & Non Medical items for which rates to be revised is extracted from the system SCM_PUR_04.02 Buyer updates the list

Manual Next Step

Buyer

Buyer updates any deletion or addition of items in the list SCM_PUR_04.03 Preparation of Tender

Manual Next Step

Tender Preparing Department

Manual Next Step

Supplier

Manual Next Step

Supplier



Buyer forwards the list of items for Tender preparations.  Terms & Conditions are finalized for the Tender.  Publish Tender  Prepare multiple copies of Tenders for Bidders SCM_PUR_04.04 Tender Selling Interested Bidders will purchase Tenders SCM_PUR_04.05 Quotation Submission

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ID

Description

Menu

Type

Result

Agent

The Bidders submit the quotes in Sealed envelopes before Close Date. SCM_PUR_04.06 Quotation Opening

Manual Next Step

All sealed envelopes are opened after the close date of tenders. The committee is constituted and in the presence of this committee these tenders are unsealed. SCM_PUR_04.07 Technical Evaluation

Tender Opening Committee

Manual Next Step

Technical Evaluation Committee

Manual Next Step

Commercial Evaluation Committee

Manual Next Step

Commercial Evaluation & Purchase Dept.

Based on the Terms the samples of items are asked for testing from the respective Bidders. Technical evaluation team evaluates items and finalize the Supplier on technical grounds SCM_PUR_04.08 Commercial Evaluation The Commercial evaluation team negotiates with bidders on rates, discount etc. to get competitive price from bidders.. SCM_PUR_04.09 Award decision The Commercial evaluation team finalizes the Suppliers for each item. The consolidated list of Suppliers selected for item is prepared for MOH approval if the Total Tender amount above 1 million SAR

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ID

Description

SCM_PUR_04.10 Approval from MOH if the Total Tender amount is above 1 million SAR. It is mandatory to obtain approval from Ministry of Health. SCM_PUR_04.11 Create Purchase Order Once the Approval is received from MOH, the Purchase Order is released. Refer SCM_PUR_01_04

Menu

Type

Result

Agent

Manual Next Step

Purchase System Orders > Purchase Orders

Purchase Department

Ref Purchase SCM_PUR_01_04 Department

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Chapter Inventory

Supply Chain Management Inventory This Chapter covers the Future Business Processes related to Inventory (Warehouses)

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Process Listing and Descriptions for Supply Chain Management - Inventory ID

Process Title

Description of Process

SCM_REC_01

Receiving of Stock Items

This Receiving process will be followed when the Supplier deliveries the Stock item to Warehouse

SCM_REC_02

Receiving of Non Stock Items

This Receiving process will be followed when the Supplier deliveries the Non Stock item. The Non-stock items meant to be delivered in Main Warehouse will be received in Warehouse.

SCM_REC_03 SCM_REC_04

Return Goods to Vendor Items Receiving of Fixed Asset

Same process will be followed if the item is directly received by the department This process will be used when items are return to supplier due to damage, expired lot etc. This Receiving process will be followed when Fixed Assets are received from the supplier.

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ID

Process Title

Description of Process

SCM_INV_05

Stock Transfer between Warehouses (Main Warehouse and CSSD)

This process is the Stock Transfer process against the Internal Requisition, which will be raised by the Requesting Organization. The Shipping Organization will process this request and ship items to the requesting organization. The Receiving Organization will receive these items in the system Stock Transfer between Example  Main Warehouse and CSSD  Pharmacy Warehouse and Central Pharmacy Store/Out Patient Pharmacy.

SCM_INV_02

Stock Transfer between CSSD and User Department

This process is the Stock Transfer process against the Internal Requisition, which will be raised by the Requesting Organization. The Shipping Organization will process this request and ship items to the requesting organization. The Receiving Organization stock will directly receive these items in their stock Stock Transfer between Example  CSSD and End user department  KKESH Inpatient Stores and End user department

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ID

Process Title

Description of Process

SCM_INV_03

Stock Issue Out from User Department - Move Order

This process is the Stock Issue process which will be used to deplete the stock consumed from the End user department. As the end user consumes the stock, at regular interval will Create and Transact Move order to deplete the stock.

SCM_INV_04

Sub Inventory Transfer

SCM_INV_06

Physical Counting or Physical Stock Verification or Inventory Accuracy Analysis

The system generates document number for each Move Order by which the issued items can be tracked. This process is the stock transfer from one sub inventory to another sub inventory. Accurate on-hand quantities are essential for effective planning and for minimizing inventory investment. Inventory accuracy is required for tax and audit purpose. A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. We can perform physical inventories whenever we choose to verify the accuracy of our system on-hand quantities. We can perform a physical inventory for an entire organization or for particular sub inventories within an organization. Physical inventories are usually performed once every six months or once a year depending on the organization requirements.

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ID

Process Title

Description of Process

SCM_INV_07

ABC Analysis

ABC Analysis is the classification of a group of items in decreasing order of annual SAR volume or other criteria. This array is then usually split into three classes A, B, and C. Further we can use the ABC Compiles defined in system for cycle counting. Cycle counting is the periodic counting of individual items throughout the year. When defining a cycle count, one needs to specify the start date, frequency of counts and ABC Assignment Group to be included in the count. The system will use this information to generate cycle counts, and specify which items will be counted and when. Based upon the generated cycle counts, actual counting can be carried out.

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SCM_REC_01: Receiving Stock Items - Process Flow SCM_REC_01 Receiving Stock Items

START

Verify Documents, Check PO number, Items, Order Quantity Check Delivery Note, Expiry Date, UOM

Identify Sub Inventory and Locator

Inspection Required?

Yes

Inform concerned person

Warehouse

No

CUSTOM Note Receipt No.

END Oracle

Enter Sub inventory ,Locator, Lot, Expirydate and save

Yes

Inspection

Pass

Purchase Department

Store In-charge

No

Put on HOLD No

Supplier Informed

END

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SCM_REC_01: Receiving Stock Item ID

Description

Menu

Type

Result

Agent

Manual

Next Step

Receiver

Receiving > Receipts Receiving > Receipts

System

Next Step

Receiver

Manual/ System

Next Step

Receiver

Receiving > Receipts

System

Next Step

Receiver and Inspector

End.

Receiver

SCM_REC_01.01 Warehouse will receive the shipment from the Supplier

SCM_REC_01.02 Supplier Delivery Note is checked against the PO number, Items & quantity ordered. SCM_REC_01.03 The Expiry date and physical condition of the shipment is checked. Now the receiver needs to decide on to which sub inventory and locator this item need to go.. SCM_REC_01.04 If Inspection is required than respective person responsible for Inspecting goods is informed, if item passes the quality criteria than it is accepted, otherwise it is put on HOLD and the supplier is informed accordingly for the further course of action. SCM_REC_01.05 Once the inspection is done, in the Receiving Transactions sub inventory, locator Lot Number and Expiry date is entered and the transaction is saved. The Receipt Number is generated in system and the GRN is printed.

Receiving > System Receiving Transactions

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SCM_REC_02: Receiving Non Stock Items – Process Flow SCM_REC_02 Receiving NonStock Items

START

Verify Documents, Check PO number, Items Description, Order Quantity Check Delivery Note, UOM

Identify the requestor / requesting department

Inspection Required?

Yes

Inform concerned person

Warehouse

No

CUSTOM Note Receipt No.

END Oracle

Create Receipt in the System, Deliver to respective location

Yes

Inspection

Pass

Purchase Department

Store In-charge

No

Put on HOLD No

Supplier Informed

END

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SCM_REC_02: Receiving Non Stock Item ID

Description

Menu

Type

Result

Agent

Manual

Next Step

Receiver

Receiving > Receipts Receiving > Receipts

System

Next Step

Receiver

Manual/ System

Next Step

Receiver

Receiving > Receipts

System

Next Step

Receiver and Inspector

Receiving > Receiving Transactions

Manual/ System

Next Step

Receiver

SCM_REC_02.01 Warehouse will receive the shipment from the Supplier

SCM_REC_02.02 Supplier Delivery Note is checked against the PO item description, Quantity ordered, UOM SCM_REC_02.03 At this point it is identified that item is Non Stock and respective person who has made the requisition is also identified, because Non Stock items are directly delivered to an Expense Location after Receiving Process Steps are followed. SCM_REC_02.04 If Inspection is required than respective person responsible for Inspecting goods is informed, if item passes the quality criteria than it is accepted, otherwise it is put on HOLD and the supplier is informed accordingly for the further course of action. SCM_REC_02.05 Lot Expiry Date is also checked when it is being received. UOM need to be checked and verified as there are chances that Units in which PO is raised, will not match the Packing Units of the shipment.

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ID

Description

SCM_REC_02.06 Once the inspection is done, in the Receiving Transactions Expense Location is entered and the transaction is saved. The Receipt Number is generated in system and the GRN is printed.

Menu

Type

Result

Agent

Receiving > Receiving Transactions

System

End

Receiver

SCM_REC_03: Return Goods to Vendor - Process Flow

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SCM_REC_03: Return Goods to Vendor

Payable Dept

Warehouse

Vendor

Goods Collected by Vendor

START

Return of Goods

CUSTOM Goods Return Report

Replacement

Yes

No

SCM_R EC_01_ 01

Debit Memo Registration& Process

END

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SCM_REC_03: Return Goods to Vendor ID

Description

SCM_REC_03.01 The returning of goods will be done in case of expired lots being returned to vendor as part of agreement with vendor or in case of goods received in damaged condition. SCM_REC_03.02 Receiving Section returns the Goods Many a times, the Received items need to be returned to the Vendor because of Expiry, Damage or any other reason. The return of goods can be done by the Receiving Section and the reasons for returning can also be noted in the System SCM_REC_03.03 In case the Supplier replacing items, the quantity returned will be received against the Purchase Order Refer Process SCM_REC_01_01 In case Supplier is not replacing optionally Receiving Section can generate a report for goods returned to Suppler (Return to Supplier Report). This report can be submitted to the Payables Department for creation of Debit Note to adjust liability to Supplier. SCM_REC_03.04 Creation of Debit Memo Payable Department will create Debit Memo where Supplier has submitted the Invoice for Supplied quantity and not the accepted quantity.

Menu

Type

Result

Agent

Receiving > Returns

System

Next Step

Inventory Controller

Receiving > Returns

System

Next Step

Warehouse

Receiving > Receipts

System

Next step

Receiving Section

System

End

Payable Department

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SCM_REC_04: Receiving Fixed Asset – Process Flow

Warehouse

SCM_REC_04 Receiving Fixed Asset

START

Verify Documents, Identify whether PO Shipment, Check Delivery Note, Expiry Date, UOM

Identify Requestor

Inspection Required?

Inform concerned person

Yes

Supplier

Technical / Property/ Warehouse

Requestor and Receiver

No CUSTOM Note Receipt No.

END Oracle

Enter details in Receipt & complete Receiving Transaction

Yes

Pass

Inspection

No

Installation

Tag asset with identification number

Fixed Asset

Put on HOLD

Supplier Informed

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END

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SCM_REC_04: Receiving Fixed Asset ID

Description

Menu

SCM_REC_04.01 Warehouse will receive the shipment from the Supplier SCM_REC_04.02 Supplier Delivery Note is checked against the PO item description, Quantity ordered, UOM SCM_REC_04.03 At this point it is identified that item is Fixed Asset and respective person who has made the requisition is also identified. SCM_REC_04.04 Depending upon the item received inspection is done based on the specification sheet if required with help of Requestor SCM_REC_04.05 Once the inspection is done, Receiving transaction is completed and saved. The Receipt Number is generated in system and the GRN is printed.

Receiving > Receipts Receiving > Receipts

Receiving > Receiving Transaction

Type

Result

Agent

Manual

Next Step

Receiver

System

Next Step

Receiver

Manual/ System

Next Step

Receiver

Manual

Next Step

System

End

Requestor / Warehouse Receiver

Technical/Warehouse/Property Department completes installation .The installed Asset is Tagged and entered in Fixed Asset using the TAG number.

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SCM_INV_01: Stock Transfer between Main Warehouse and CSSD, OR – Process Flow SCM_INV_01: Stock Transfer Between Main Warehouse and CSSD, OR - Process Flow

Shipping Organization

Requesting Organization

Min Max Planning Report

START

Internal Requisition

Approval

Create Internal Order

GRN is made against the Shipment number in system

Stock increases in respective Organization Asset Sub-inventory

Oracle

CUSTOM Notification of IR END

Order Import

Booked Internal Sales Order

Pick Release

Print Pick Slip

Ship Confirm

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SCM_INV_01: Stock Transfer between Main Warehouse and CSSD, OR ID

Description

SCM_INV_01.01 The Requesting Organization (CSSD, OR) will raise the Internal requisitions.  

Menu

Type

Result

Agent

Requisitions> System Requisitions

Next Step Requesting Organization

Requisitions> System Requisitions

Next Step Respective Organization

CSSD having Min Max Planning will obtain report of stocks at Minimum level Using these reports the stores will raise Internal Requisition. Any Addition deletion in Requisition can be done.

The Approval of Internal Requisition will be as per Approval Hierarchy. Once the Internal Requisition is Approved a Notification will be sent to Shipping Warehouse (Main Warehouse). SCM_INV_01.02 Create Internal Order and Order Import Concurrent Programs can be scheduled from each facilities Purchasing and Order Management responsibilities. These programs shall pick the respective Internal requisition to process; based on the Destination location and Inventory Organization association, mentioned in the Internal requisition.

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ID

Description

SCM_INV_01.03 Booked Internal Sales Order will be executed by Shipping Organization. Shipping Organization will ship the goods according to the availability and rest of the requisition qty. will be back –ordered.

Menu

Type

Result

Agent

Shipping> Transactions

System

Next Step Shipping Organization

Manual

Next Step Shipping / Receiving Organization Next Step Receiving Organization

The Pick list generated will be printed by the Shipping Organization

SCM_INV_01.04 Shipping Organization (Main Warehouse) will ship goods. The acknowledgement of receipt will be taken. SCM_INV_01.05 Receiving Organization (CSSD, OR) will create Receipt in the system against the Shipment Number.

Receiving > Receipts

System

Received quantity will be stored either in Asset Sub inventory or Expense Sub inventory. Asset Sub inventory is where items will be stored, tracked later issued to User department Expense Sub inventory is where expensed items are received (Self consumption)

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SCM_INV_02: Stock Transfer between CSSD and User Department – Process Flow SCM_INV_02: Stock Transfer Between CSSD and User Department - Process Flow

Shipping Organization

Requesting Organization

Min Max Planning Report

START

Internal Requisition

Approval

Create Internal Order

Shipment is received directly in system

Stock increases in respective Organization Subinventory

Oracle

CUSTOM Notification of IR END

Order Import

Booked Internal Sales Order

Pick Release

Print Pick Slip

Ship Confirm

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SCM_INV_02: Stock Transfer between CSSD and User Department ID

Description

SCM_INV_02.01 The Requesting Organization (User depts.) will raise the Internal requisitions.   

Menu

Type

Result

Agent

Requisitions> System Requisitions

Next Step Requesting Organization

Requisitions> System Requisitions

Next Step Respective Organization

End User Department having Min Max Planning will obtain report of stocks at Minimum level Using these reports these departments will raise Internal Requisition. User Department like OR will have two sub inventories viz. Asset & Expense.

The Approval of Internal Requisition will be as per Approval Hierarchy. Once the Internal Requisition is Approved a Notification will be sent to Shipping Warehouse (CSSD). SCM_INV_02.02 Create Internal Order and Order Import Concurrent Programs can be scheduled from each facilities Purchasing and Order Management responsibilities. These programs shall pick the respective Internal requisition to process; based on the Destination location and Inventory Organization association, mentioned in the Internal requisition.

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ID

Description

SCM_INV_02.03 Booked Internal Sales Order will be executed by Shipping Organization. Shipping Organization will ship the goods according to the availability and rest of the requisition qty. will be backordered.

Menu

Type

Result

Agent

Shipping> Transactions

System

Next Step Shipping Organization

Manual

End

The Pick list generated will be printed by the Shipping Organization Once the shipping process is completed stock at shipping (CSSD) will decrease and stock at requesting organization will increase. SCM_INV_02.04 Shipping Organization (CSSD) will physically issue goods.

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Shipping / Receiving Organization

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SCM_INV_03: Stock Issue Out from User Department – Process Flow

End User Dept.

SCM_INV_03: Stock Issue Out from User Department – Process Flow

START

Create Move Order

Transaction: Move Order Issue

Source : Asset Sub inventory

Destination Expense Suinventory

Approve & Transact MO

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END

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SCM_INV_03: Stock Issue Out from User Department ID

Description

Menu

Type

Result

Agent

SCM_INV_03.01

The End user Department will receive the stock from stores and it will be stocked in Asset sub inventory till it is consumed.

Move Order> Move Order

System

Next Step

End user Department

Move Order> Move Order Move Order> Transact Move Order

System

Next Step

End User Department

System

Next Step

End User Department

When items are consumed, Move Order will be created Transaction Type “MO Item Issue” will be selected.. In this way the User department will expense out the item stored. Similarly when Eye Bank issue Cornea, Move Order will be created transaction type “Issue to KKESH patient” or “Issue to KKESH Research practice”. Patient name or Doctors name will captured in the field provided. SCM_INV_03.02

Approve the Move order

SCM_INV_03.03

In case items are serial controlled or lot controlled the requisite serial/lot number will be selected for transaction.

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ID

Description

Menu

Type

Result

Agent

SCM_INV_03.04

Transact Move Order On transacting the stock from Asset sub inventory will be depleted

Move Order> Transact Move Order

System

End

End User Department

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SCM_INV_04: Sub Inventory Transfer – Process Flow

Warehouse / End User Department

SCM_INV_04: Sub Inventory Transfer Process Flow

START

Initiate Sub inventory Transaction

Select Item to be Transferred

Select Source Sub inventory

Select Destination Sub Inventory

Enter Quantity and Save

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END

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SCM_INV_04: Sub Inventory Transfer ID

Description

Menu

Type

Result

Agent

SCM_INV_04.01

Open the Sub Inventory Transfer Window and select Transaction Type

System

Next Step

Inventory Controller

SCM.INV_04.02

Select the Source Sub inventory from where item will be shifted out

System

Next Step

Inventory Controller

SCM.INV_04.03

Select the Destination Sub inventory where item will be stored.

System

Next Step

Inventory Controller

SCM.INV_04.04

Enter Quantity to be transferred. If the item is lot controlled enter lot number. If the item is serial controlled enter . Save the Transaction.

Transaction> Sub inventory Transfer Transaction> Sub inventory Transfer Transaction> Sub inventory Transfer Transaction> Sub inventory Transfer

System

End

Inventory Controller

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SCM_INV_05: Physical Counting – Process Flow

Inventory Controller

SCM_INV_05: Physical Counting

START

Take Inventory Snap Shot

Print the tags

Count the items manually and put the tags respectively

Enter the counts in the system

No

Discrepancy?

END

Finance

Yes

END

Pass the adjustments

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SCM_INV_05: Physical Counting ID

Description

SCM_INV_05.01 Physical Stock Verification will be carried out once a year in all the KKESH facilities.

SCM_INV_05.02 Inventory Controller will carry out this exercise along with other stores staff. Inventory Snapshot is taken and tags are printed. After that all the inventory items are counted physically and tags are put. SCM_INV_05.03 The counts are entered in the system

SCM_INV_05.04 If any discrepancy is there between physical quantities and stock on system then adjustment is done in consensus with finance.

Menu

Type

Result

Agent

Counting>Physical System Inventory> Physical Inventories Counting>Physical System Inventory> Tag Generation

Next Step

Stores and Warehouse Staff

Next Step

Inventory Controller

Counting>Physical System Inventory> Tag Count Counting>Physical System Inventory> Physical Inventories

Next Step

Inventory Controller

End

Stores and Finance

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SCM_INV_06: ABC Analysis – Process Flow

Inventory Controller

SCM_INV_06: ABC Analysis

START

Define ABC Compile

Decide on Item Valuation Scope Inventory Org or Sub inventory wise

Run ABC Compile

Define ABC Classes

Define ABC Groups

Assign Items to ABC Classes within ABC Groups

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END

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SCM_INV_06: ABC Analysis ID

Description

Menu

SCM_INV_06.0 1

ABC Analysis is the classification of a group of items in decreasing order of annual volume or other criteria. This array is then usually split into three classes A, B, and C. • A Group- The A group usually represents 10% to 20% by number of items and 50%-70% by projected SAR volume. • B Group- The B group usually represents about 20% of the number of items and about 20% of the SAR volume. • C Group- The C group contains 60%-70% of the number of items and represents about 10%-30% of the SAR volume Define and run an ABC compilation An ABC Compile is a ranking of our items based upon selected criteria. We can define and compile an ABC analysis for our entire organization or for a specific sub inventory within our organization. We choose the compilation criterion, the scope of our analysis and any additional information that may be conditionally necessary based on our compilation criterion. Decide ABC Valuation Scope

SCM_INV_06.0 2

SCM_INV_06.0 3

Type

Result

Agent

ABC Codes> System ABC Classes

Next Step

Inventory Controller

ABC Codes> System ABC Compiles

Next Step

Inventory Controller

ABC Codes> System ABC Compiles

Next Step

Inventory Controller

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ID

SCM_INV_06.0 4

SCM_INV_06.0 5

Description We can select a valuation scope for determining the ranking of items. We can do an ABC compile across individual subinventories or across an organization. If we choose to restrict ABC compile to items within a particular sub inventory, we have the option of valuing our items across all subinventories in the organization or by the individual sub inventory. Defining ABC Classes We use ABC Classes to identify the value groupings to which our items belong. Wecan define these classes using our own terminology. For example we might define classes High, Medium, Low, and later assign our items of highest rank to high, those of lower rank to Medium, and those of the lowest rank to low. We must assign an ABC class to at least one ABC group. We can use ABC classes to group items for a cycle count where we count “A” items more frequently than “B” items. When we use ABC classes in this way, we perform an ABC analysis and assign items to classes based on analysis results. ABC Item Assignments: When we define ABC assignments we specify the cutoff point for each ABC class. Each ABC class must have at least one item assigned to it and all items in the ABC compile must be assigned to an ABC class. We can use any of the following fields to determine the cutoff points:

Menu

Type

Result

Agent

ABC Codes> System ABC Classes

Next Step

Inventory Controller

ABC Codes> System ABC Assignment Group

End

Inventory Controller

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ID

Description

Menu

Type

Result

• Seq: We can enter the sequence number from the ABC Descending Value Report for the last item to be included in each ABC class. Oracle Inventory automatically calculates this value if we choose to assign classes by another method. Oracle Inventory displays the last sequence number as the default of the last class. • Inventory Value: We can enter the cumulative value from the ABC Descending Value Report for the last item to include in each ABC class. Oracle Inventory automatically calculates the maximum value. This maximum value is restricted to the total inventory value compiled and is displayed in the Total Compile Value field. Oracle Inventory displays the total inventory value as the default for the last class.

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Agent

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Chapter Order Management

Supply Chain Management Order Management This Chapter covers the Future Business Processes related to Inventory Organization (Eye Bank)

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Process Listing and Descriptions for Supply Chain Management – Order Management ID

Process Title

Description of Process

SCM_OM_01

Dispatch Items to Eye Care Centers. Order to Cash Process

This process will be followed when the Eye Bank send the items (like Cornea etc. to another Eye Care Units.

SCM_OM_02

Return Item from Eye Care Center

These Eye Care Centers deposit the amount in KKESH Eye Bank Account in Advance. As the Order is processed Credit Check will be done by Accounts Receivables and then Order will be processed. This process will be followed when the Eye Bank Customers returns items back to Eye Bank.

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SCM_OM_01: Dispatch Items to Eye Care Centers – Process Flow

Eye Care Centers

SCM_OM_01: Dispatch Items to Eye Care Centers Process Flow

Start

Order for Cornea

Inform Customer

Receivable

Eye Bank

No

Receive Order

Receive Fund in KKESH EYE BANK Account from Eye care Centers

Suitable Cornea

Yes

Book Sales Order

Update Customer(Eye Care Units) Credit limits

Pick Release

Transact Move Order

Ship Confirm & print Shipping document

End

Interface with Receivables, Auto Invoice

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SCM_OM_01: Dispatch Items to Eye Care Centers ID

Description

SCM_OM_01.01 Receive Order or Request from other Eye Care Centers for items like Cornea, Sclera SCM_OM_01.02 Create Sales Order and book the same. The System automatically checks the credit limit of the customer. Accounts Receivable controls the Credit limits, based on the amount deposited. SCM_OM_01.03 Launch Pick Release process SCM_OM_01.04 Transact Move Order. Select requisite Serial Number from the stock for the Transaction SCM_OM_01.05 Ship Confirm the Sales Order line SCM_OM_01.06 Print Shipping documents and ship the material

Menu

Type

Result

Agent

Manual

Next Step

Eye Bank

Orders, Returns > Sales Order

System

Next Step

Eye Bank

Shipping > Transaction Move Order > Transact Move Order Shipping > Transaction Shipping > Transaction

System

Next Step

Eye Bank

System

Next Step

Eye Bank

System

Next Step

Eye Bank

System

End

Eye Bank

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SCM_OM_02: Return Item from Eye Care Center – Process Flow

Eye Care Centers

SCM_OM_02: Return Item from Eye Care Center Flow

Start

Order Return

Enter Order

Enter Sales Order Reference

Book the Order

Create Receipt against RMA

Eye Bank

Receive Back the item

Inspect Item OK ?

Yes

Complete the Receiving Process

No

Receivable

Dispose

End

Interface with Account Receivables

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SCM_OM_02: Returns Item from Eye Care Center ID

Description

Menu

SCM_OM_02.01 Receive the Item from the Customers

Type

Result

Agent

Manual

Next Step

Eye Bank

SCM_OM_02.02 Create RMA. Enter Reference of Sales Order no or Item Serial Number in Return TAB at Line level The System automatically Links the line with the original Sales Order.

Orders, Returns > Sales Order

System

Next Step

Eye Bank

SCM_OM_02.03 Create Receipt against the RMA number

Receiving > Receipt

System

Next Step

Eye Bank

Manual

Next Step

Eye Bank

System

Next Step

Eye Bank

SCM_OM_02.04 Inspect Item which is received. SCM_OM_02.05 Complete the Receiving Transaction. If the item to be dispose of it will be stored in separate sub inventory (Rejected) If the item is Ok and can be used with be stored in or need send back to International Eye Bank it will be stored in an active Sub inventory.

Receiving> Receiving Transaction

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Open and Closed Issues for this Deliverable Open Issues

ID

Issue

Resolution

Responsibility

1 2

Closed Issues

ID

Issue

Resolution

Responsibility

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DOCUMENT APPROVER – BP 80/BR30 HIGH-LEVEL FUTURE PROCESS MAPPING DOCUMENT SUPPLY CHAIN MANAGEMENT Sr. No

Date

Name

Department

Signature

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DOCUMENT APPROVER – BP 80/BR30 HIGH-LEVEL FUTURE PROCESS MAPPING DOCUMENT SUPPLY CHAIN MANAGEMENT Sr. No

Date

Name

Department

Signature

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