LT Foods Americas.

Project Business Blueprint

BP-MM.01.01: Third Party WarehousingJob Work & Production
V1.0

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Revision History
Created
By:
1st
Review
By:
2nd
Review
By:
3rd
Review
By:
Approved
By:

Created
12th
Date:
2011
st
1 Review
Date:
2nd Review
Date:
3rd Review
Date:
Approval
Date:

Company Steering committee sign-of

Name:

Mr.
Mr.

Position:
Sign-of
Date:
Signature
:

LT FOODS AMERICAS. Process Owner Sign-of

Name:

Ms.

Position:
Sign-of
Date:
Signature
:

EY Team Lead Sign-of

Name:
Position:

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September

Sign-of
Date:
Signature
:

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Table of Contents
1.

JOB WORK (SERVICE ACTIVITY) ON THIRD PARTY STOCK 4

SCENARIO OVERVIEW

BUSINESS PROCESS DESCRIPTION

2.

APPROACHES TO COVERING FUNCTIONAL DEFECTS

3.

DEVELOPMENTS CONSIDERATIONS 5

3.1.1. INTERFACE CONSIDERATIONS

5
3.1.2. REPORTING CONSIDERATIONS
5
3.1.3. FORM CONSIDERATIONS 5
3.1.4. ENHANCEMENT CONSIDERATIONS 5
4.

AUTHORISATION CONSIDERATIONS 5

PRODUCTION (REPACKING OF THIRD PARTY STOCK IN DIFFERENT SIZE BAGS) SCENARIO

OVERVIEW
5
BUSINESS PROCESS DESCRIPTION

5.

APPROACHES TO COVERING FUNCTIONAL DEFECTS

6.

DEVELOPMENTS CONSIDERATIONS 7
6.1.1. INTERFACE CONSIDERATIONS
7
6.1.2. REPORTING CONSIDERATIONS
7
6.1.3. FORM CONSIDERATIONS 7
6.1.4. ENHANCEMENT CONSIDERATIONS 7

7.

AUTHORISATION CONSIDERATIONS 7

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1.Job Work (Service Activity) On Third Party Stock

Scenario Overview
This Blueprint document described the process of Job Work on Third
Party Stock i.e. from creation of Job Work Production Order to
Confirmation and Settlement of Production Order.
LT Foods Americas will do some Service Activity to keep the stocks in
good condition (Ex- Fumigation) and willing to Track those Expenditure
which will be charge from the Third Party Vendor.

Master Data
Creation of Activity Type: - As LT Foods Americas will do the Job Work
on Third Party Stocks, therefore only
New Activity type will be created and Cost has to be maintained to track
the expenditure on Job
Work.
Maintain Activity Panned Cost: - After the creation of Activity master
we have to maintain price for
Each activity.
Creation of Routing: - As we are not putting any additional
component in Job Work, therefore BOM
Will not required only - Routing has to be created with combination of
Work Centre and Steps of
Operations by assigning activities need to be done with respect to
each operation along with the time
Or unit required for each activity

Business process Description

2. Job Work Order Process: For any job work related work we have to
create a job work order
With reference to Material and its specific Batch and will be without
any material (As BOM was not
Maintained for Job Work Order) and with Activity Only (Pick from
Routing).
Order Confirmation Process: Once the service will be finished,
order has to be confirm after
Putting the Actual activity quantities, this will capture the actual cost
of each activity cost
Maintain as per Planning.

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Note: - As Job Work Order is without any material, therefore

goods issue and receipt was not
Required against these orders.

Description of Functional Deficits

Ref
.#

Description
Deficits
Not Applicable

of

Functional Recommendation
to
Fulfil Functional Deficits

2.Approaches to covering functional defects

As the materials are treated non valuated for LT Foods Americas,
therefore any job work cost will not loaded to material cost but LT Foods
Americas is willing to charge those cost form the Third Party. To track
those service cost we need to develop a report which shows Job Work
Cost with combination of material and its specific batch.

3.Developments Considerations
4. Interface Considerations
Ref.
#

Description of System / Process to be Reference

Interfaced
Interface
Specification
Document
Number
Nil

5. Reporting Considerations
Ref.
#

Description of Report Requirements

1.

ZJWCOST Job Work Cost Report

COOIS Production Order Information
System

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Reference
Report
Development
Specification

6. Form Considerations
Ref.
#

Description of Forms

1.

Nil

Reference
Enhancement
Specification
Number

7. Enhancement Considerations
Ref.
#

Description
Requirements

of

Enhancement Reference
Enhancement
Specification
Number

Not Applicable

8.Authorisation Considerations
Authorization Matrix will be delivered in next phase.

Production (Repacking of Third Party Stock in

Diferent Size Bags) Scenario Overview
This Blueprint document described the process of repacking production
process on Third Party Stock i.e. from creation of Packing Production
Order to Confirmation and Settlement of Production Order.
LT Foods Americas will do the repacking of Third Party Stock in deferent
size of bags and use its own packing materials or can be supplied by the
third party vendor and do the packing operation, which involve labour
and machine activity also. Once Third party material (Raw Material) will
be repacked it will keep as a deferent material (Finished Good SKU code)
which treated as a valuated stock and both quantity and value (with the
cost of packing materials and activity cost) will be updated and shown in
our system and required financial entry will pass in our system.

Master Data
Creation of Material Master: - New Material code will be created for
each size of repacked item has
As Finished Goods.
Creation of Activity Type: - As LT Foods Americas will do the Job Work
on Third Party Stocks, therefore only

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New Activity type will be created and Cost has to be maintained to track
the expenditure on Job
Work.
Maintain Activity Panned Cost: - After the creation of Activity master
we have to maintain price for
Each activity.
Maintain Bill of Material: - BOM has to be created for each size of
repacked finished material with
Combination of original Third Party and packing material as BOM
component with required quantity.
Creation of Routing: - Routing has to be created with combination
of Work Centre and Steps of
Operations by assigning activities need to be done with respect to
each operation along with the time
Or unit required for each activity.

Business process Description

2. Repacking Production Order Process: Based on requirement of

repackaging
Production order should be created for the finished goods with
required quantity to be produced.
Based on bill of material and routing system will copy the required
raw material and activity
Quantity.
Order Confirmation Process: Once the repackaging will be finished,
order has to be confirm by
Putting the Actual yield quantity of finished goods and actual activity
quantities (To capture the
Actual cost of each activity cost maintain as per Planning), Goods
movement (Issue of Raw Material
& Receipt of Finished Goods) can be posted in this process, which will
update finished goods stock
And consume raw material from the respective storage location.
Settlement of Repacking Production Order: - After confirmation
we have to settle the production
Order which will updated the finished goods actual value (with the cost
of LT Foods Americas own packing
Material and activity cost) in the material master and pass required
financial entry in our books of
Accounts.

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Description of Functional Deficits

Ref
.#

Description
Deficits
Not Applicable

of

Functional Recommendation
to
Fulfil Functional Deficits

9.Approaches to covering functional defects

NA

10.

Developments Considerations

11. Interface Considerations

Ref.
#

Description of System / Process to be Reference

Interfaced
Interface
Specification
Document
Number
Nil

12. Reporting Considerations

Ref.
#

Description of Report Requirements

1.

COOIS
System

Production

Order

Reference
Report
Development
Specification

Information

13. Form Considerations

Ref.
#

Description of Forms

1.

Nil

Reference
Enhancement
Specification
Number

14. Enhancement Considerations

Ref.
#

Description
Requirements

of

Enhancement Reference
Enhancement
Specification
Number

Not Applicable

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15.

Authorisation Considerations

Authorization Matrix will be delivered in next phase.

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