.

Department
. Division/Function

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

2.0 Scope

To
To
To
To
To
To
To

convert work order in to delivery order, if materials are full available.

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

3.0 Pre-requisite/InputsNature of Input

Daily Work orders

Responsibility
Dispatch Head

Store Head

Date of receipt
One day prior to
production
One day prior to
Production
Every day

Manpower
availability
report
Raw material availability
report
Marketing
targets
or
forecasting report
Pending order fulfillment

Production Head

Factory Manager

Every 2 weeks

Dispatch

Every day

the
the

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. Division/Function

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report
Production
Planning
report
Buffer stock availability
report
Semi-finished availability
report
Targets Vs fulfillment till
date report

Production Manager

Every day

Dispatch Head

Every day

Store Head

Every day

Factory Manager

Every day

4.0 Definitions / Acronyms

SOP
SKU
MRP
RM
SF
PM

Last Reviewed/Update Date

standard Operating
Procedures
Stock Keeping Units
Material Requirement
Planning
Raw Materials
Semi-Finished
Packaging Materials

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5.0 Step by step explanation of the Process

STEP 1- There are n number of work orders (1, 2, 3 ..n)
STEP 2- Sum all work orders from 1 to n
STEP 3- Sum all similar Stock keeping Units (SKUs) quantity from various work orders
STEP 4- Sum all SKUs demand from 1 to n
STEP 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)
II)
III)
IV)

create the process order for each SKU which would be summation of multiple work orders
Run Material Requirement Planning(MRP) for each process order separately
Issue RM, SF & PM from stores as per MRP
Manufacture the products as per process

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. Division/Function

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V)
VI)
VII)

Last Reviewed/Update Date

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Pack the products

Segregate orders by depot
Check whether each order weights by depots is equal to 1 truck load
If YES then,
a) Dispatch to depots
If NO then,
B) Check by merging up nearest depots order whether weight equal to 1 truck load or not
If YES then dispatch to depots
If 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 map

High level process

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Sector- sales team &

Dispatching
team
Receiving work orders and
check for KANBAN stock
1.0

1. 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.
Sum all the work orders and sum all SKUS quantities from work orders and
sum up SKU demand and check KANBAN stock.

Sector- Production& Dispatch

team
Checking KANBAN stock
whether materials are fully,
partially or not available
2.0

Stock managers will check for the stock whether the stock is available or
unavailable or partially available.
If 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.

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. Division/Function

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Sector- Stock managers,

Production managers and
dispatching team

1. 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 MRP

Request 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 team

When stock is available deliver

as per plan

4.0

1. Stock manager will wait until the stock is fully

available.
2. Dispatching team will load the truck and deliver
to customers.
When 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.

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Sector- stock managers,

Production managers and
dispatch managers
When stock is partially order,
create purchase and deliver
order to make it available to
deliver as per plan
5.0

Last Reviewed/Update Date

Approval

1. 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.
For 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

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Decisio
SOP Owner
n/
Executi
on
1

Department

Activity
Activity Description
Approval
Performed by

Sales

Sales managers

Create the work orders and

share to factory

2.

Dispatching

Dispatching
managers

Receive the work orders

3.

Dispatching

Stock managers

Will check the available

inventory

4.

Dispatching

Stock managers

Will share the unavailable work

orders to production

5.

Production

Production
managers

Will run the MRP

6.

Production

Production
managers

Request SF,RM & PM from

stores as per MRP

7.

Production

Production heads

8.

Stores

Stock managers

H.O.D will approve the

requirements and make
changes as per requirement.
Will check the stocks
availability

6.0 Step by
step activities
&
responsibilities

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. Division/Function

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Page 1

Stores15 of 17

Dispatching Last Reviewed/Update

Issue theDate
available materials
managers

10.

Stores

Stock managers

12.
11.
13.

Sales
Any
department
Dispatching

Sales
managers
Managers
of
particular
department
Dispatching
managers

14.

Dispatching

Dispatching
managers

Segregate orders by depot

15.

Dispatching

Dispatching
managers

Load truck and deliver to

customers

SOP Owner

Approval

Create the requisition for

unavailable material
Create
PO for
requisition
Verification
of entire
requisition
Receiving the work orders

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OutputsNature of outputs
Materials fully available
Materials partially available
Materials not available
Materials received

Final output
Dispatch the load & deliver to customers
Create process & deliver order to depots
Create process order to deliver the order
to depots
Receipt & payment of work orders

Key Performance IndicatorsDifferent parameters

Receive orders

Authorize Credit
Order Fulfillment

Invoice Customer

Examples of parameters
Percent orders received, percent customer
calls taken on initial contact, percent order
input errors.
Percent bad debts, average credit approval
cycle time.
Percent of perfect orders (i.e., percent of
orders delivered to customers in full quantity
at the specified time.)
Percent 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

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electronically.

Cash Collection

Percent cash collected within agreed credit

terms (excluding invoices subject to customer
query), percent cash collected electronically