. Department. Division/Function

SOP #

Revision #

Implementation Date

Page 117 of 17Last Reviewed/Update Date

SOP OwnerApproval

1.0 Objective To maximize the delivery of received work orders through proper utilization of buffer stock.

2.0 Scope To convert work order in to delivery order, if materials are full available. To convert work order in to process order, if materials are not available at all. To convert work order in to process order, if materials are partially not available. To convert work orders in to delivery order, if materials are partially available. To create material requisition for raw materials from stores. To create material requisition for semi-finished from cold storage/stores. To create material requisition for packing materials from stores.

3.0 Pre-requisite/Inputs-Nature of InputResponsibilityDate of receipt

Daily Work ordersDispatch HeadOne day prior to the production

Manpower availability reportProduction HeadOne day prior to the Production

Raw material availability reportStore HeadEvery day

Marketing targets or forecasting reportFactory ManagerEvery 2 weeks

Pending order fulfillment reportDispatchEvery day

Production Planning reportProduction ManagerEvery day

Buffer stock availability reportDispatch HeadEvery day

Semi-finished availability reportStore HeadEvery day

Targets Vs fulfillment till date reportFactory ManagerEvery day

4.0 Definitions / Acronyms

SOPstandard Operating Procedures

SKUStock Keeping Units

MRPMaterial Requirement Planning

RMRaw Materials

SFSemi-Finished

PMPackaging Materials

5.0 Step by step explanation of the ProcessSTEP 1- There are n number of work orders (1, 2, 3 ..n)STEP 2- Sum all work orders from 1 to nSTEP 3- Sum all similar Stock keeping Units (SKUs) quantity from various work ordersSTEP 4- Sum all SKUs demand from 1 to nSTEP 5- Check for KANBAN stock availability for each SKU demand STEP 6- Check whether the materials are fully available or partially available or not available

STEP 7- When materials are fully available then

a) Check whether the weight is equal to 1 truck load or not If YES then Load truck and deliver to the customer

If NO then wait till the other work orders from nearest depots get dispatch ready and are equivalent to minimum one truck load

STEP 8- When materials are not available then this is the step by step procedure

I) create the process order for each SKU which would be summation of multiple work ordersII) Run Material Requirement Planning(MRP) for each process order separatelyIII) Issue RM, SF & PM from stores as per MRPIV) Manufacture the products as per processV) Pack the productsVI) Segregate orders by depotVII) Check whether each order weights by depots is equal to 1 truck loadIf YES then,a) Dispatch to depotsIf NO then,B) Check by merging up nearest depots order whether weight equal to 1 truck load or notIf YES then dispatch to depotsIf No then repeat step VII until condition (VII a) is fulfilled STEP 9- When materials are partially available then A) For available items,Create delivery order and repeat step 7 (a)

B) For unavailable items,Repeat step 8

5.0: Process mapHigh level processSector- sales team & Dispatching team1. Sales managers create the work orders and share to factory.2. Dispatching managers receives the work orders.3. Stock managers will check the available inventory.

Receiving work orders and check for KANBAN stockSum all the work orders and sum all SKUS quantities from work orders and sum up SKU demand and check KANBAN stock.

1.0

Sector- Production& Dispatch teamStock managers will check for the stock whether the stock is available or unavailable or partially available.

Checking KANBAN stock whether materials are fully, partially or not availableIf the stock is available then deliver the order as per plan or else do corrective actions to make fully available. Whereas for partially available items create process order for available items and create deliver order for unavailable items and deliver the order as per plan.

2.0

Sector- Stock managers, Production managers and dispatching team1. Stock managers will check the available inventory 2. Production managers Will run the MRP, Request SF, RM & PM from stores, Manufacture the products as per process and they will pack orders.3. Dispatching managers will Segregate orders by depot.

When the stock is not available then make it available to deliver as per plan.check the available inventory & run the MRPRequest SF, RM & PM from stores, Manufacture the products as per process, Pack the products and Segregate orders by depot.

3.0

Sector-Stock managers and dispatching team1. Stock manager will wait until the stock is fully available.2. Dispatching team will load the truck and deliver to customers.

When stock is available deliver as per planWhen materials are fully available then check whether the weight is equal to 1 truck load or not. If YES then Load truck and deliver to the customer. If NO then wait till the other work orders from nearest depots get dispatch ready and are equivalent to minimum 1 truck load.

4.0

Sector- stock managers, Production managers and dispatch managers1. Stock managers create process and deliver order for unavailable and available items.2. Production team will process the required work order.3. Dispatch team will dispatch work orders when they are fully available.

When stock is partially order, create purchase and deliver order to make it available to deliver as per planFor unavailable items create process order run MRP, process, pack and deliver to depots and for unavailable items create delivery order until weight is 1 truck load dispatch load and deliver to customers

5.0

S.NODecision/ExecutionDepartmentActivity Performed byActivity Description

1SalesSales managersCreate the work orders and share to factory

2.DispatchingDispatching managersReceive the work orders

3.DispatchingStock managersWill check the available inventory

4.DispatchingStock managersWill share the unavailable work orders to production

5.ProductionProduction managersWill run the MRP

6.ProductionProduction managersRequest SF,RM & PM from stores as per MRP

7.ProductionProduction headsH.O.D will approve the requirements and make changes as per requirement.

8.StoresStock managersWill check the stocks availability

6.0 Step by step activities & responsibilities

9.StoresDispatching managersIssue the available materials

10.StoresStock managersCreate the requisition for unavailable material

11.Any departmentManagers of particular departmentVerification of requisition

12.SalesSales managersCreate PO for entire requisition

13.DispatchingDispatching managersReceiving the work orders

14.DispatchingDispatching managersSegregate orders by depot

15.DispatchingDispatching managersLoad truck and deliver to customers

Outputs-Nature of outputsFinal output

Materials fully availableDispatch the load & deliver to customers

Materials partially availableCreate process & deliver order to depots

Materials not availableCreate process order to deliver the order to depots

Materials receivedReceipt & payment of work orders

Key Performance Indicators-Different parameters Examples of parameters

Receive ordersPercent orders received, percent customer calls taken on initial contact, percent order input errors.

Authorize CreditPercent bad debts, average credit approval cycle time.

Order FulfillmentPercent of perfect orders (i.e., percent of orders delivered to customers in full quantity at the specified time.)

Invoice CustomerPercent invoice accuracy (i.e., the accuracy of invoice production as determined by the proportion of invoices with invoice errors relative to the total number of invoices raised), percent invoices requiring manual intervention, percent invoices issued electronically.

Cash CollectionPercent cash collected within agreed credit terms (excluding invoices subject to customer query), percent cash collected electronically