Single Source Items: 80%.

The purchases are done from fixed vendors in most of the

cases.
Multi Source Items: 20%. Multiple Vendor exists for procurement of material.
Manual Requisition are generated to issue material for production at shop floor.
No Safety Stock calculation from system as of now.
Open or Blanket Purchase Orders, based on PRs and delivery schedules are
maintained for the procurement purpose for regular materials.
General Purchase Order for materials that are not in regular or frequent use.
Job Work Purchase order, material can be sent to vendor directly or from plant itself.
This means the Bill to and Ship to address may not be same.
Bom exists for the Job work material, in some cases goods for job work is provided
from the organization itself and in some cases it is purchased by Vendor itself.
No real time valuation of inventory as material prices are updated quarterly, on
weighted average.
No WIP Ledger or traceability exists as of now on the basis of Operations done on
Production lines.
No freight realization exists in present scenario as contracts with the freight carriers
are maintained out of the system. No Weighing or measuring is carried out for the
sheets or goods procured or obtained from subcontractor for freight realization.
No Plan v/s Actual recording exists in system as of now.
No Shortage is calculated in the system for the advance planning for the production
purpose.

PPC:
Sales Administration sends the Production Plan for a month to Production Planning
Department at plant for production purpose. No revision in plan if any adhoc or
interception of priority orders are not in place.
Distribution of plan among the R&D (Technology), Procurement Department, and
PPC.
Procurement Planning of Raw Material and SFG for production purpose.
Plan revision to create the daily production schedule. Two days confirm plan and
one day tentative planning in advance. If any revision in production plan on basis of
constraints such as insufficient material or capacity availability that can only be
possible with prior approval from marketing department.

No Planned/Actual monitoring is there at order level.

Multi-Level BOM exists for the production, crucial parts like engine, differential,
crankshaft etc are assembled separately and are part of the Finished Goods BOM.
Production feeding is not as per the actual, BOMs are to be revised or maintenance
of alternative items has to be done that does not exists in current system.
No Capacity Planning for operations such as assembly or welding.
Reporting for WIP, stocks and capacities are major constraints.