qm.02._goods receipts for po

Project Everest BBP

Business Blueprint

Quality Management

Purchase Order Receipts

Document Number: QM.02._Goods Receipts for PO

Module Responsible: QM

Project "Everest" mySAP Business Suite

For ICL-IP

Version: 1.0 Page1 of 16 Process name: GR for PO with QMDate: Reference: Identification

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a. Identification

Version Reference File Name Document Name

1.0 QM.02 QM.02._Goods Receipts for PO Goods Receipts for PO

B. Sign Off

DateSignNameProject TitleVersion

Ronen MadarDocument designer1.0

C. Distribution

DateCopy ownerCopy

Project file1

2

3

4

5

D. Versions

RemarksPar.PageChange type

#

Change type: A- Addition, D- Deletion, U- Update


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Table of Contents

1 Introduction..........................................................................................................................................................5

1.1 Identification...................................................................................................................................................5

1.2 General Process description...........................................................................................................................5

1.3 Document Description....................................................................................................................................5

2 Applicable Documents...................................................................................................................................6

3 Basic Terms (Glossary) Sub process rollout relevance..................................................................................6

3.1 Basic terms (Glossary)...................................................................................................................................6

3.2 Sub process rollout relevance ( R – Relevant , N – Not relevant, S – requires Special Specific process).....7

4 Global template Process implementation.......................................................................................................8

4.1 Process Chart..................................................................................................................................................8

4.2 Sub process Steps / Activities table................................................................................................................8

4.3 Detailed description (by steps if possible)......................................................................................................8

4.4 Names and numbering standards..................................................................................................................11

4.5 Main Objects / Org structure........................................................................................................................11

5 Integration.....................................................................................................................................................14

6 Global Reports and Forms............................................................................................................................15

6.1 Reports..........................................................................................................................................................15

6.2 Layout/Forms...............................................................................................................................................15

7 Specific rollout Forms requirements............................................................................................................15

7.1 HOBS / Asiabrom.........................................................................................................................................15

7.2 Eurobrom......................................................................................................................................................15

7.3 Broomchemie...............................................................................................................................................15

7.4 Bromokem....................................................................................................................................................15

7.5 Ameribrom...................................................................................................................................................15

8 Development.................................................................................................................................................15

8.1 Development.................................................................................................................................................15


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9 Data migration and Interfaces......................................................................................................................16

9.1 Data migration..............................................................................................................................................16

9.2 Interfaces......................................................................................................................................................16

9.3 Temporary Interfaces required (Per rollout).................................................................................................16

10 Process Roles (for authorizations and training purpose)..............................................................................16

11 Scope of work implications..........................................................................................................................16

11.1 Process / Features not supported in legacy system and will be supported by SAP......................................16

11.2 Process / Features that were supported in legacy and will not be supported by SAP..................................16


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1 Introduction

1.1 Identification

Quality assurance according to purchase orders from vendors

1.2 General Process description

There are several aspects to quality assurance related to purchasing from vendors. These aspects affect the

procurement process before, during and after the entry of a purchase order. For example, this process has

relevance to other processes such as:

Vendor evaluation

Choosing a vendor

Creating purchase orders for vendors

Certificate handling and document management

Goods receipts for purchase orders

Stock transfers

Batch classification

Complaints against vendors

For raw materials, this is the fundamental process which precedes production. This is where components

are brought in, classified and stored until use.

1.3 Document Description

This document is part of the Everest project Blueprint documentation and it includes the following

chapters:

1. Introduction

2. Applicable documents

3. Basic terms and process / sub process list

4. Process implementation

5. Integration

6. Reports and forms

7. Developments

8. Data migration and interfaces

9. Open issues

10. Authorizations


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2 Applicable Documents

# Title Identification[1] Rfp/sow[2] contract

BP

3 Basic Terms (Glossary) Sub process rollout relevance

3.1 Basic terms (Glossary)

Certificate – a document detailing specific quality requirements.

Classification characteristic – a parameter on a classified object which distinguishes this classified object

from other objects of the same classification type. For example, the classification type, 023—on

material batches, can have several classification characteristics. The characteristic values help to

distinguish each batch from another

Classification class – a grouping that distinguishes a set of classified objects from other classified objects

of the same classification type

COA / COQ / COC (certificate of analysis / quality / compliance) – A certificate (in this case found on goods receipts) which shows the results of inspections performed by a vendor

Code – A key that uniquely identifies the qualitative contents of an item in a coded form that can be

mechanically processed. Each code is assigned to a code group in the catalog. A code can describe, for

example: a characteristic attribute, a usage decision or a task.

Code group – A key for summarizing codes and structuring a catalog according to various criteria. The

assignment of codes to code groups takes place at client level.

Inspection characteristic is a criterion on the basis of which an inspection is performed.

Inspection lot – a request to a plant to carry out a quality inspection for a specific quantity of material.

Inspection method – a procedure for inspecting a characteristic.

Notification – A data record with which a user informs a department about an occurrence

Plant – an organizational unit for dividing an enterprise according to production, procurement,

maintenance, and materials planning

Purchase order – A request or instruction from a purchasing organization to a vendor (external supplier) or a plant to deliver a quantity of material or to perform services at a certain point in time.


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Purchasing organization – An organizational unit in Logistics, subdividing an enterprise according to the requirements of purchasing; a purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

Results recording – the process by which results are recorded on inspection characteristics for an inspection lot

Selected set – A range of specific entries (code groups and codes) of a catalog. For example, usage decision codes can be assigned per plant.

Storage location – An organizational unit allowing differentiation between the various stocks of a material in a plant.

Usage decision – A ruling on the further processing of an inspection lot that is made on the basis of the inspection results

Vendor evaluation – A program that provides a decision basis for selecting and controlling sources of supply.

Work center – An organizational unit that defines where and when an operation must be performed; for QM this is a place at which inspections are conducted; in the R/3 System, work centers are entered in the inspection operations. Several inspection characteristics can be inspected for each work center or inspection operation

3.2 Sub process rollout relevance (R–Relevant, N–Not relevant, S–requires Special process)

Sub process HOBS Eurobrom Asia Brom Broomchemie Bromokem Ameribrom

R R R R R R


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4 Global template Process implementation

4.1 Process Chart

The basic flow of the process is as shown:

Detailed description (by steps if possible)


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Step / Activity Department Description

1 – Vendor Evaluation Purchasing The process of evaluating vendors according to specific criteria. In standard SAP, one class of criteria is quality parameters. This includes feedback from inspections, notifications and vendor audits.

2 – Purchase Request Often generated by materials planning, processed by purchasing

The purchase request is the note to the purchasing department that materials are required. Specified are usually the material, quantity and date required.

3 – Vendor Selection Purchasing The process of choosing a vendor. This is often affected by the results of vendor evaluation, but can also be affected by the vendor system (typically the ISO standard), specified in the material master record (QM view). The vendor's system would be checked with either the vendor master record or the material/vendor quality-info record.

4 - MSDS exists? Purchasing We check whether or not the vendor has sent an MSDS. When they have, we record this in the material/vendor Q-info record.

5 - Demand MSDS Purchasing If the vendor has not sent us an MSDS, we ask for it. They should know that we will not accept the stock without this.

6 – Purchase Order Purchasing The contract that specifies the terms of purchase from a vendor. When a material being purchased is relevant for quality inspection, the stock type for the item will show "quality inspection".

7 – Goods Receipt Material handler When stock arrives to the company, a material handler checks the receipt list against the purchase order. On his approval, items are received into the local system. Those items for which there will be quality inspection will be in the QI stock type (unless it is a skip lot). QI stock is valuated material, whether from QM or not.

8 - MSDS received? Material handler The material handler does not need to expect this file, but must be aware that it may accompany the shipment.

9 - Send to EH&S Material handler/EH&S Department

If the MSDS is received with the shipment, the material handler must pass this document on to the EH&S staff. (Optional: to scan the file and store it with the material/vendor Q-info record.)

10 - COA / COQ Required

Material handler If a certificate is necessary for a received material, it can be blocked from inspection unless the certificate is "registered" in the system. At some locations, there is no inspection, and only registration of the certificate.

11- Register COA/ COQ

Material handler or lab inspector

The status of the certificate requirement is set to "received".

12 - Inspection Lot (created automatically)

System-generated An inspection lot is automatically generated (with a distinct number) for inspection-relevant material. The inspection lot shows relevant related items that are appropriate, such as the material, quantity, plant, storage location, purchase order, and inspection plan.


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Step / Activity Department Description

13 – Results Recording Lab inspector Results are recorded for the inspection lot according to characteristics defined in the inspection plan. An inspection plan would usually be automatically assigned from the receipt based on the material and vendor.Note 1: that when no inspection plan is used, and the material is only verified with a vendor certificate, the material can be checked against the certificate, and held in QI status until the check is completed.Note 2: results can be recorded against SAP material specifications as well, but these are not seen to be relevant at this time.

14 – Usage Decision Lab inspector or material handler

The closing of the inspection is the usage decision. Within it are made:

Decision on accept or reject Score for the results (usually between 1 to

100) Stock posting of the material (for example

to free stock, blocked, scrap, or return to vendor)

Note: If a received material is out of specification, it can be received anyway by authority of the production supervisor. Requirement at BCT is for three levels of approval, not just one.

15 – By-products of Usage Decision

Lab inspector, material handler, or system

The usage decision can be made in several stages, so for example, the accept/reject decision and score can be made in one step, while the stock posting is made in another step. This is important because from the workshop we learned that Broomchemie is interested in having a release procedure for making this stock posting at times. In such situation we can also have a follow-on function (some programming required) which would initiate other action, such as an email to management, or initiation of a work procedure for an MRB meeting.

16 – (Optional) Notification – complaint against vendor

Depends During inspection lot processing, a notification can be created. Notifications usually indicate problems, but not always. Similarly, after an inspection lot has been created, a problem found later in the supply chain can be recorded with a notification.

4.2 Sub process Steps / Activities table

Sub-process steps:

3. a. – Within vendor selection – we will need to specify the requirements for each material:

i. QM control key (for managing procurement, such as: invoice blocking if inspection was rejected, vendor blocking active, certificate requirement, etc.) – this MUST be entered (FOR ALL PLANTS) if the "QM proc. active" flag is selected for even one plant

ii. Certificate typeiii. Target QM system – checks against either the vendor master record or the vendor/material Q-info record

for the QM system (e.g. ISO 9***) that the vendor meets this requirement


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12. requests that in Ramat Chovav the inspection report (list of inspections) should be printed automatically.Note: we can have automatic printout per inspection type. Therefore, we would only be able to configure automatic printing for inspection type 01 if everyone agrees to have the inspection report printed. Otherwise we will need to configure new inspection types (which is not a problem either).

4.3 Names and numbering standards

Names:

Codes for:

1. inspection characteristics (catalog set 1)2. usage decisions (catalog set 3)

the codes must be assigned to a selected set, which are defined per plant

Numbering standards:

1. inspection lots (defined per inspection type – we use inspection type 01 here)

4.4 Main Objects / Org structure

In this process, the following objects are particularly relevant:

Organizational structure

o Purchasing organizationo Vendoro Planto Storage locationo Work center

Basic data

o DMS documentso Inspection characteristico Inspection methodo Inspection plano Material master recordo Material specification (not used at this time)o Q-info record (material-vendor QM information record)

Business objects

o Inspection lot


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o Planto Storage location

The configuration is under the objects shown listed above under "Basic data". These are now described.

We start with the QM view of the material master record, shown at right.

From the top we see the material and plant.

The General data box is important mainly for the "Insp. Setup" box. That little box is powerful. Within it we configure every movement type. The grey

sign to its left shows that some inspection types have already been configured. We'll look at this in the next slide.

The Procurement data box includes parameters that affect purchasing with QM. Note that the QM proc. active flag is client-specific. That is, if chosen in one plant, this material must have the QM control and QM view maintained in all plants. The certificate type specifies what kind of certificate should accompany a receipt, and the target QM system is the type of system a vendor should have to buy the material.

Looking top to bottom … two inspection types are configured for this material. This process requires inspection type 01.

Note: if the active button is not selected for an inspection type, it is as if the material is not awake for this inspection type.

Following below, we see configuration for inspection type 01. For example:

1. Post to inspection stock puts stock in "quality" status when received.

2. An inspection lot is used when inspecting this material

3. The inspection plan is automatically assigned to the inspection lot when the stock is received


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When stock of a QM material is received in a PO, it can be checked against a certificate. This is often the case at DSBG.

If inspection is also to be recorded on-site, and inspection lot would be created as well, and would typically have an inspection plan. Shown at right is a simple inspection plan, with two operations. The two operations are assigned to two work centers. These can be two lab stations. We select an operation to see the inspection characteristics inside.

Shown in this operation are four qualitative characteristics. These all come from master inspection characteristics. We see that for characteristics 0020 and 0030, inspection methods are assigned. We can attach DMS documents to inspection methods.

Shown at right is a Q-Info record, showing configuration data related to a particular vendor and material to a certain plant. Note that the manufacturer in this case is different from the vendor. This is important for DSBG, where we have subsidiaries and manufacturers that are distinct.

We see in this record that the inspection control is that no inspection lot is created (under Inspection control), but that there is a standard certificate that could be used.


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5 Integration

EH&S

MSDS: An MSDS sheet is to be on file before the stock can be received. We can store the MSDS (as a DMS document) in the vendor/material Q-info record. To be determined: if the MSDS will be stored in this record or in the dangerous goods master record in EH&S.

Purchasing

Vendor evaluation: One of the parameters for evaluation of a vendor is quality. In standard SAP, three criteria

make up the score for the vendor:

1. Inspection results (from usage decisions on inspection lots)2. Quality notifications (such as complaints against vendors)3. Vendor audits

the direction on this is currently being handled by the purchasing configuration team.

Vendor selection: There is a standard vendor selection process in purchasing (such as with purchase requisitions

and quotations), but we affect the choice of vendor according to the vendor system requirements. For

example, if a given material requires a certain vendor system, we note it in the material master record, and

the system checks against the vendor master record or the purchasing Q-info record, as described above.

The vendor approval process: Each site will need to decide how they will work with the vendor approval

process.

Inventory control

Inspection stock: When stock is received for a purchase order that is to be inspected, it is under stock category Q.

However, this stock is valuated upon receipt.

Usage decision: When inspection is finished, a stock posting is made. Stock postings can include:

Post to unrestricted-use stock Post to blocked stock Post to scrap


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Return to vendor … more

With each of these, a material document is created for the movement.

Note: in cases such as return to vendor, or post to blocked stock, if additional paperwork is required (such as a

shipment slip to the vendor), we leave this as the responsibility of the inventory management configuration

team to ensure that such documents are properly aligned with the corresponding movement types.

6 Global Reports and Forms

6.1 Reports

See the LIMS document, titled "QM.08._LIMS.doc"

6.2 Layout/Forms

There are two primary forms for inspection lots: sample drawing instructions and inspection instructions. Either

can be automatically printed when an inspection lot is created (or subsequently created when maintaining an

inspection lot). The requirement or use of these forms has not been defined (per plant) at this time.

7 Specific rollout Forms requirements

Not relevant

7.1 HOBS / Asiabrom

7.2 Eurobrom

7.3 Broomchemie

7.4 Bromokem

7.5 Ameribrom

8 Development

8.1 Development

There are no known development requirements for this process at this time.

9 Data migration and Interfaces

9.1 Data migration

Not relevant


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9.2 Interfaces

None defined at this time

9.3 Temporary Interfaces required (Per rollout)

None defined at this time

9.3.1 HOBS / Asiabrom

9.3.2 Eurobrom

9.3.3 Broomchemie

9.3.4 Bromokem

9.3.5 Ameribrom

10 Process Roles (for authorizations and training purpose)

Role Activity / transaction Responsibility (Role definition)Purchasing managerPurchasing group (buyer)InspectorLab managerStock clerk (receiver)Materials managerProduction manager

11 Scope of work implications

11.1 Process / Features not supported in legacy system and will be supported by SAP

Not relevant

11.2 Process / Features that were supported in legacy and will not be supported by SAP

Not relevant
