Services : Possible Sources

Maintain services in therequisition

Assign source

Specs.

Contract___ ______ _______ ___

Hour %

Conditions$

Service master record conditions

Vendor

Suggested Sources

Purchaserequisition

- M gr. SoftwareConsulting

- Service 1580Senior consultant

Vendor ?

Possible sources

- Master conditions- Contracts for material group

-Contracts forservice

Existing

NO YES

X

X

X

Vendor Miller Co.

Service 1580

Price $250

Contract4711Mat. Gr.Softwareconsulting

ContractService1580

$260

RFQ

Rel. order

Rel. order

Sourcing Suggestion ( Customizing)

Purchaserequisition

-Mat gr.-Software consultg.-- 1580-- 15xx

Contract158015xx15yy

Contract158015xx

Customizing

-At least 1 service- All service

Master conditionsVendor Miller Co.1580 price in $15xx price in $15yy15zz

Master conditionsVendor Smith Co.15xx15zz

Chapter 6 Value Limits

1 Cost control in the procurement of unplanned servicesusing value limits.

1 Differences betwwen the procurement of planned andunplanned services at the time of planning (ordering)and at the time of performance (service entry)

Chapter 6 Objectives

1 Course participants are shown how to work withvalue limits as na instrument of cost control in the procurement of services.

1 They are familiarized with the different proceduresapplied in the procurement of planned andunplanned services.

Limits in the Planning/Entry of ServicesService entry sheets

01 Selection of software components

01 Definition of requirements

Consultant K4 10 days à $2,100.00

02 Adjustment of components

01 Component A

Consultant K3 5 days à $1,900.00

02 Testing configuration/settings

Consultant K3 4 days à $1,900.00

ModificationConsultant k4 10 days à $ 2,100.00

01 Selection of software components

01 Definition of requirements

Consultant K4 10 days à $2,100.00

02 Adjustment of components

01 Component A

Consultant K3 5 days à $1,900.00

02 Testing configuration/settings

Consultant K3 4 days à $1,900.00

Unplanned services up toMax. $60,000.00

Value Limits for Unplanned Services

PO # 12345 Jan. 27

Item 10 Repair printing press

-Exact service decription

-Order quantity

-Account assignment

???

Cost contral -Contractsvia -Limits !

Service entry sheet Feb. 3

Item 10

L1 Oil filter replaced

1 hr à 75.00

CC 123

???

Limit adhered to

Release procedure Acceptance

Contract 1200

Overall Limit, Contract Limit, Limit w/o Ref. to Contr.

Contract 1000

ABC Software Co.

Software consulting

Junior consultant K2Senior consultant K3

managing consult.K4

Purchase order

ABC Software Co.

Software

implementation K4Limit

$100,000.00

Contract

Limit definition

Overrall limit$100,000.00

Limits on conctratsNo. 1000 $60,000.00No. 1200 $50,000.00

Limit w/o conctract$10,000.00

Service entry sheet

<- $60,000.00from conctract

no. 1000

Planned

Via limit

Limits: Service Entry

Purchase order

Quantity checkAdoption of price

Service entry sheet

Planned service10 days $12,000.00

Unplanned service8 days $16,000.00

Target quantity checkAdoption of price

Contract

Contract

- Target qty. 100 days

- Price $ 2,000.00/day

Value checkOverall limit

Contract limit

Limits

1010 days à $1,200.00

Planned Procurement of Services

Service entry sheet

- Service 1580

- Service 1540

Purchase order

- Service 1580

- Service 1540

No limit

Only planned services

Partially Planned Procurement of Services(Unplanned Procurement via Contracts)

Service entry sheet

- Service 1580

- Service 10

from contract 1

-Service 24

from contract 2

- Service 57

from contract 2

Purchase order

No servicespecifications

Limit Contract 1 $20,000.00Contract 2 $ 15,000.00

No planned services,but reference tocontract

Unplanned Procurement of Services

Service entry sheet

-

Service 1

- Service 2

:

:

:

:

Purchase order

No servicespecifications

LimitUnlimited

Only unplannedservices

Not created untilentry of services

performed

Spcs.

Chapter 7 Entry and Acceptance of ServicesPerformed

1 Recording services actually performed on the serviceentry sheet.

1 Manual acceptance of service entry sheets (one-step,multi-step).

1 Automatic acceptance of services using the release(approval) procedure for entry sheets.

Chapter 7 Obectives

1 Course participants learn to record services that have actually been performed, using the service entry sheet.

1 They become familiar with the different proceduresfor accepting service entry sheets.

Creation of na Entry Sheet for Services Performed

Service entry sheets

01 Selection of software components

01 Definition of requirements

Consultant K4 10 days à $2,100.00

02 Adjustment of components

01 Component A

Consultant K3 5 days à $1,900.00

02 Testing configuration/settings

Consultant K3 4 days à $1,900.00

ModificationConsultant k4 10 days à $ 2,100.00

01 Selection of software components

01 Definition of requirements

Consultant K4 10 days à $2,100.00

02 Adjustment of components

01 Component A

Consultant K3 5 days à $1,900.00

02 Testing configuration/settings

Consultant K3 4 days à $1,900.00

Unplanned services up toMax. $60,000.00