Constantin Munteanu

Some detailed activities

Create item codes for purchased items based on MPS, standards, drawings.

I made a request form for creation new item code for raw materials, production materials, tools, fixtures, controllers and metering equipment. The form includes the category of item, purchase specifications (size, model, part number, serial number, material, odds of drawing) and standard definition (standard, catalogue, drawing) and cost category. Cost category is a grouping of expenses (costs) of raw materials, scrap materials, ferro-alloy, raw materials, welding electrodes, parts, small inventories etc. Cost category is very good for reporting consumption.

A user from Total Operational Excellence Team asked me the cause of price variance between PO and Receiving for refractory items. I checked in Oracle ERP and the cause is EUR-WON exchange rate in case of contracts with Chosun. Because investigation was laborious, I asked IT programmer to create a PO Price vs. Receiving Price report based on my requirements.

I wrote down the business requirements from Doosan Heavy Construction for implementing Bad Stock and Over Stock

Bad Stock No consumption during more than 3Months after receipt materials in IMGB, the ending Quantities & values are “Bad Stock”ERP CriteriaPO Receipt=0 and Issue(Consumption)=0 during more than 3 months(90 days).

Overstock Due to surplus purchasing after receipt and consumption during more than 3 months the remained quantities & values in IMGB are “Overstock”.ERP CriteriaPO Receipt=0 more than three months (90 days)

Yesterday a user from Quality Control did not understand why inspection result was delayed by 11 days and he knew that he entered the inspection result at interval of an hour. His colleague from Materials Management typed invoice date 10-Feb-2011 08:16:00, but system date is creation date 21-Feb-2011 08:17:05 which is the moment she recorded the weighed quantity.The reason why Materials Management typed invoice date was to obtain receiving amount in Lei for Romanian accounting. The invoice was from EU country.For Materials Management understanding I wrote a work procedure for inputting the receipt date when thy perform receiving transaction:

Constantin Munteanu

If EU PO, EU supplier and EU payment, the receipt date shall be current system date. In case of all the others, the receipt date shall be current system date.

Adopt PO Parent-PO Child method for Foreign Currency contracts and Romanian suppliers in order to apply the Romanian accounting regulation which says that receiving in inventory amount should be the same as the invoice amount without VAT. The link between PO Parent and PO Child is PR. PO Parent is for example EUR PO and PO Child is Lei PO in case of Romanian suppliers. The rate is calculated based on invoice date.

Improve PR-PO-Receiving-Invoice Status such as adding PR Line status, PO Line status, calculating Remained Quantity.

Propose LTA Process for Gas, Electricity and Transportation because receiving and consumption are continuously and therefore too much work with issuing receiving, move orders and consumption especially in case of gas and electricity which are used in melting and refining processes and also they are direct cost. So LTA process was accepted.

Issue work procedure for issuing PR in order to explain users the meaning of inventory, expense, investments and OSP (outside processing), and to know the company policy regarding amount limit and approval process.

Issue work procedure for finance account used in ERP transactions.

Ask IT programmer to create a monitoring program for OSP PR and PO (Outside Processing Purchase Requisition) so that users should cancel them when status of job order is Complete to avoid supplemental costs and also warn Purchasing Team to close PO on time.

Establish KPI for Procurement/MM/Shops&MM

the working period to issue PO: the days taken from date of approved PR to date of issued PO and formula ∑(The days issued PO – The days approved PR )/ The number of approved PR

Constantin Munteanu

the working period to receive materials after inspection: the days taken from inputting inspection date to inputting receiving material and formula ∑(The days inputted the receiving materials – the days inputted the result of inspection)/The number of the receiving materials

the observance percentage of differences between physical inventory and GL before adjustment: the percentages of differences between physical inventory and Inventory account book and formula abs(( physical inventory amounts-book inventory amounts)/book inventory amounts)