process map example

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Level 2 P.O. Generation And Fulfillment
Level 1 Procure to Pay
Level 3 Generate P.O.
Level 3 Select Buying Channels
Level 4 Create Requisition
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0010.4 a P.O. Generation and Fulfillment
10k per month, 1k per, annual 2.5, no stock or
maint. Mostly admin. Card account no.
CT 1
Requestor
10 million 25,084 trans 398 / trans. 53 Opp
lt5k
Pro-card
Pcard Designated Transaction
Requisition Required
Release Required
113,000 P.O. 32,000 lt5k 152,000 Trans.
Buyer
CT 1
Materials
Materials
SAP Requisition
Selected Vendor
Services
Services
SAP P.O. (Fax, Auto Fax Email)
Vendor Selection
Q 1
Q 3
Q 2
No Selected Vendor
60-70 of Transactions
Settle And Pay
Acceptance / Confirmation
SAP MRP Requisition
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Received Order
System
Receive Material
117,696 Invoices On Time 86 Disc Taken 76
SAP PM Work Order
10 EDI Trans.
24
Supplier
Fulfilled Order
P.O.
3
0010.41 - Select Buying Channel - Materials
(Does not apply to Services)
Note 1
Pro-card
20
Requestor
Yes
Note 1
9
1
26
No
Material Tracking Required?
No
No
No
No
Zone Store?
Storehouse Stock?
BOM Purchase?
Procard Item?
Yes
Yes
Yes
Yes
Is Material No. Needed?
3
25
6
Material No. Exists?
No
Yes
16
Phase II
Buyer
SAP Requisition
SAP MRP Requisition
SAP Requisition
SAP PM Work Order
System
SAP Requisition
1
Policy and Accountability Issues Process and
Enablers System Related
Supplier
Pro-card
16
9
4
0010.42 Generate P.O. Materials
No PO Approval
Requestor
13
25
PO Approval
25
5
Vendor Selection
Selected Vendor
13
22
Yes
No
No
No
No
20
SAP Requisition
Requisition Requires Release?
Vendor Determined?
Auto P.O. Activated?
No
Yes
No
P.O. Confirmed?
Yes
Price Change?
Yes
Yes
Buyer
Over DOA?
7
19
Yes
21
17
8
12
SAP MRP Requisition
P.O.
14
SAP P.O. (Auto Fax Email)
Confirm / acknowledgement
EDI/xml
System
2
SAP PM Work Order
Phase II Add more E-transactions
1
Policy and Accountability Issues Process and
Enablers System Related
Supplier
16
9
5
0010.44 Monitor Status - Materials
Requestor
Tips and Tricks
Resolve Issues
Buyer
18
21
Settle And Pay
Receive Material
Received Order
System
1
Policy and Accountability Issues Process and
Enablers System Related
Supplier
Fulfilled Order
P.O.
16
Invoice
9
6
0010.42 Generate P.O. Services
Requestor
Approver
PO Approval
13
Approver
10
7
No
Outline Agreement Exists?
25
13
Yes
Vendor Selected
SAP Requisition
SAP Work Order
5
Vendor Selection /OA Search
Yes
3
6
21
Buyer
20
Requires Release?
No
19
25
4
8
SAP P.O. (Auto Fax Email)
System
P.O. (Auto-Fax or Email)
2
12
P.O. Acknowledgement
14
1
Policy and Accountability Issues Process and
Enablers System Related
Supplier
16
9
7
Settle and Pay
0010.3 Mail invoices to Cleaning-house
Vendor
No
Plant Site
SCAN Invoice ?
Yes
Clearing House
0010.8 Invoice posts for payment
Accounts Payable
PO Invoice ?
Invoice passes System checks ?
Yes
Yes
1
Policy and Accountability Issues Process and
Enablers System Related
0010.9 Invoice enters Workflow for resolution
18
No
0010.7 Park for Approval
16
No
END
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Systems
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• 3.1.1 Requisitions for Purchase Orders
• A PO must originate from a requisition that has
  been properly reviewed and approved by an
  authorized person. The requisition and/or PO must
  be reviewed by the approver to ensure that the
  right supplier is designated, that the quantity
  or accurate service description is listed, and
  that there is a correct delivery/service date
  given. Requisitions must include an SAP material
  and/or service material group number. The
  requisition must also include the appropriate tax
  code based on the item or service being
  purchased. PO tax codes start with a P or Q.
  The SAP system will determine the taxability of
  the item based on the material / service group
  and the tax code selected, along with the taxing
  jurisdiction of the cost center. If the approver
  needs help determining the appropriate tax code,
  the approver should contact the Tax Department
  for guidance.
• The following are the only allowable PO purchases
  that do not require a requisition
• Freight
• Restocking fees
• Hot Shot fees
• Fuel surcharges
• Expediting fees
• Finished products
• - (Finished Products refers to those items being
  purchased, generally by the Supply Chain group
  for direct resale. Examples - Resin, Ethylene)
• Feedstocks
• - (Feedstocks are defined as raw materials
  required for an industrial process. In the
  chemical industry, common feedstocks include
  natural gas liquids such as naphtha, gas oil, and
  ethane. Benzene, ethylene, propylene, and other
  olefins are examples of feedstocks used as the
  building blocks for the production of value added
  petrochemicals. In general, the product must be a
  building block for creating another product and
  it must be changed (reacted) in the process.)

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• 3.2 Procurement Card
• The ProCard provides delegated purchasing
  authority by allowing non-procurement personnel
  to purchase targeted materials and services (when
  a contract is in place) for use in the course of
  conducting company business without Procurement
  Personnels involvement. This process is cost
  effective for CPChem because orders are placed
  directly with the supplier and the handling of
  purchase orders, invoices and checks are
  eliminated.
• The following are the guidelines for use of the
  Procard. Unclear transactions considered for the
  ProCard should be discussed with Global
  Procurement for the requested commodity or the
  ProCard Administrator prior to purchase.
• Certain Materials (TBD) Certain Vendors
  (TBD) Certain Situations (TBD)
• For further details, consult the policy portal
  for the Procurement Card Polices and Procedures
  Manual.

On site receiving issues who does it belong
to? Numbering system for these contracts? Off
line types
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(No Transcript)
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3.1.3 Approvals

• Appropriate approvals should be obtained prior to
  making commitments to third parties. A PO must be
  reviewed and approved by an authorized person who
  has been delegated the appropriate authority as
  defined on the Delegations Summary (DOA)
  document. All personnel should reference their
  respective delegations summary document prior to
  authorizing the PO.
• Purchase Order signature is limited to delegated
  authority of the responsible person signing.
  Electronically issuing or outputting a Purchase
  Order constitutes an electronic signature. A
  signature also constitutes approval up to the
  signers delegated authority.
• 3.1.4 Change Orders or Changes to Existing Orders
  
• There are situations where changes to Purchase
  Orders are necessary. If the projected spend,
  overall limit in SAP, for an existing order or
  new order exceeds the amount authorized on the
  requisition it will be necessary to notify the
  requester for the purpose of securing
  authorization to increase the committed funding.
  When the total value of a Purchase Order is being
  increased, the Procurement approval required is
  based on the new total commit value.

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5.10 Zone Stores

• Zone Stores are point of use stores. The
  purpose of a zone store is to provide easy access
  to high usage parts at or near the point of use.
  Zone stores increase productivity by eliminating
  the travel to and from the warehouse and
  eliminating system process requirements. There
  are two primary types of zone stores
• Vendor managed A representative from the
  vendor monitors the zone store, enters
  replenishment orders and insures that the
  replacement stock is delivered.
• Plant managed Plant personnel provide these
  services.
• Materials set up in a zone store should be high
  volume, low cost. The rules for establishing zone
  store stocking levels are the same as those used
  to add items to Stores. The plant MRF must be
  used for approval even though a material number
  may not be required. The vendors representative
  for vendor managed inventories needs to follow
  the same protocols or provide justification for
  stocking levels calculated by other means and
  obtain approval from Procurement.
• Zone stores are to be replenished direct from the
  supplier, not from the Store-stocked materials.
  Each zone location must be clearly marked for the
  item it contains and access to Zone Stores is to
  be limited as much as possible to the users of
  the materials.
• Stores or Procurement must randomly select a
  minimum percentage of the material and count it
  to verify that the material quantity matches the
  packing slip.

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Generate Requisition - Materials
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Auto P.O.
15
MRP Process
16
Requisition Release
Add Workflow approval reminders
Inform requester of who has to approve it
New Release Codes
MRNZ NY 50k Need a general Review and update
Auto from PM
Material Return
Service Return
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P.O. - Materials
Inform requester of who has to approve it
Add Workflow to approval And approval reminders
Add supplier confirmation
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Transmit P.O.
Up to date info
Vendors prefer edi Target high volume
Materials Return
Services Return
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Vendor Sourcing
Involve the Buyer Early in this process
20
P.O. Services
Involve the Buyer Early in this process
Generate P.O. Return
Monitor Status Return
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0010.43a Phase II Punch out Round Trip
Procurement
22
Material Number Decision
From Marian RuizPort Authur
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Time Sheets and Work Approval
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Workflow with CCTS
CCTS Validates POs WOs, Contractor Rates And Gate
Log
Contractor Enters Time (L,M,E 3rd Party) in CCTS
Contractor Performs Work
Contractor Owner Approve Transactions
Auto Interface to CMMS Posted to POs, WOs, G/L
Auto Interface To A/P
Contractor Paid by EFT
Required human intervention