sadiq_report

Sadiq Pasha

On line Procurement Ordering System for Medium Voltage Product Lines

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PROJECT REPORT

Setting up on line procurement ordering system for Medium Voltage Product Lines

Sadiq Pasha

MBA 09-11 09020741053

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ACKNOWLEDGEMENT

I take this opportunity to thank Schneider Electric for providing me an opportunity to do my

Summer Internship in Hyderabad Plant. I would like to express my deep sense of gratitude

towards my Project Guide Mr.Rajashekhar Palakodeti, Asst Manager Procurement, whose

incessant support and guidance helped me in completing my project.

I acknowledge my sincere thanks to Mr .Nallusamy Ramasamy, Manager Procurement,

Mr.Sharad Naidu, Engineer, IPM (Industrial Performa nce Management) and Mr.Naveen

Kumar B.V. (Technical Engineer) for their valuable inputs during their course of project.

I would like to thank Mr.Vimal Narayanan , Plant Head, Schneider Electric Hyderabad for

showing keenness in my project and accepting my recommendations.

I would also like to thank Mr.Balaji Renganathan, Manager HR and Mrs Soma Pal, Asst

Manager HR for giving me an opportunity to work on this project.

Finally, I would like to express my gratitude towards all individuals of Procurement and Methods

department who supported me during the tenure of this project.

The project was undertaken as part of our curriculum requirements. I hope that this research work

will help Schneider Electric in achieving their accomplishments.

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CONTENTS ______________________________________________________________________________

ACKNOWLEDGEMENT ……………………………………………………………………………………...2 EXECUTIVE SUMMARY………………………………………………………... 4 INTRODUCTION ………………………………………………………………….5 NEED FOR PROJECT …………………………………………………………….18

1. SCOPE OF PROJECT………………………………………………………..19 2. DEFINITION OF PROJECT………………………………………………....20 3. CONCEPTUALIZATION OF THE PROJECT………………………………21 4. MAJOR TRANSACTIONS OF SAP USED IN THE PROJECT…………….26 5. PLANNING BOM FOR MEDIUM VOLTAGE PRODUCT LINES………...27 6. ANALYSIS AND FINDINGS………………………………………………...42 7. RECOMMENDATIONS……………………………………………………...48 8. CONCLUSIONS………………………………………………………………50 9. FINAL VALUE ADDITION………………………………………………….53 10. ANNEXURE…………………………………………………………………..54 11. BIBLIOGRAPHY……………………………………………………………...55 12. GLOSSARY OF TERMS……………………………………………………...55

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EXECUTIVE SUMMARY

_________________________________

This project was undertaken in order to study the present processes and functions that

Schneider Electric follows at Hyderabad plant for the production of medium voltage

product and to upgrade existing MRP planner which gives accurate requisitions which is

undertaken well in accordance with the BOM quantity of the Finished good and the

forecasted value.

The main objective of the project is to understand the different types of parts that are

required in developing the final Finished Good and prepare a planning BOM for the

standard FG references. For this purpose it is very necessary to study the current process

that the FG follows on line and then validate whether the standard BOM present in the

SAP database is accurate .Find out different steps in which Planning BOM can be prepared

and updated in the SAP database which would help in giving the correct online requisitions.

Data required to study the standard BOM for a particular finished good was collected from

procurement department and data after collection on assembly line was validated by the

methods department.

In the beginning of the project there was no Planning BOM available but after the

implementation of the recommendations and suggestions the SAP database gave accurate

results for the forecasted data.

Schneider Electric Hyderabad would use this upgraded MRP planner to get the

requisitions well in advance which would help them in planning the correct quantity of

material to be ordered.

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INTRODUCTION

____________________________________

ABOUT THE COMPANY Schneider Electric is a French Global company, founded in 1836 by two brothers. Eugène I and

Adolphe Schneider.

It a global specialist in energy management with operations in more than 100 countries. Schneider

Electric offers integrated solutions across multiple market segments including leadership positions

in energy and infrastructure, industrial processes, building automation and data centres/networks,

as well as broad presence in residential applications.Focussed on making energy safe, reliable,

efficient, productive and green the company’s 114,000 employees achieved sales of more than

$23 billion in 2009.

The major markets of the company are in the following sectors

A. Energy & Infrastructure- Guaranteeing a safe, reliable power supply and

controlling operating costs.

In the Energy & Infrastructure market, our products and services solutions cover

�� Processes control and supervision

�� Power supply & distribution

�� Energy monitoring and control

�� Utility management (lighting, ventilation, elevators, intruder alert, etc.)

�� Smart electrical networks management

�� Single site or multi-site production data management

�� Critical power

�� Offer prepayment systems that bring electricity to disadvantaged customers

Main customers

Electrical utilities, water & waste treatment plants, Public-sector investors, oil & gas

infrastructure, Marine sector, etc

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B. Industry - Enhancing productivity, flexibility, security and traceability

In the Industry market, our products and services solutions cover

� Processes automation

� Machine control and monitoring

� Power supply & distribution

� Energy monitoring and control.

� Utility management (lighting, ventilation, elevators, intruder alert, etc.)

� Single site or multi-site production data management.

� Critical power

Main customers

Engineering firms, systems integrators, OEMs, large industrial companies, panel builders and

electrical equipment distributors, end users.

C. Data Centers & Networks- Enhance availability, reliability and efficiency

Our solutions include

� Electrical distribution

� Energy monitoring and control

� Architecture design and installation audits

� Leading-edge UPS systems, electrical switchgear, generators, etc.

� Cooling systems with a unique rack-based cooling technique to avoid overheating.

� Online supervision and analysis

� Training and maintenance

Security

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Main customers

From small companies to global groups, hospitals, administrations, etc. Our customers are

where the availability and quality of the electrical energy is critical.

D. Buildings -Reducing operating costs while offering greater comfort and safety

In the Buildings market our products and services solutions cover

� Power supply and distribution

� Utility management (lighting, air conditioning, elevators, intruder alert, etc.)

� Data exchange (Voice-Data-Image and radio technologies)

� Multi-site remote management

� Energy monitoring and control

� Critical power

� Security

Main customers

Developers, engineering offices, developers, engineering and design firms , systems integrators,

contractors, panel builders, electrical equipment distributors, building operators and end users.

E. Residential - Ensuring comfort and safety while simplifying communication

In the Residential market, our products and services solutions for single-family homes and

apartment buildings cover:

� Power supply and distribution.

� Home automation (supervision, energy efficiency, lighting and heating control, etc.)

� Voice-Data-Image networks

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� Critical power

� Security

Main customers

Architects, building owners, developers, building contractors, electricians, electrical equipment

distributors, DIY superstores and end users.

MISSION The Foundation for energy sharing responds to the demands of new challenges:

Better energy production

Facilitated access to energy for all.

Optimum management of the problem of climate change.

From the transmission of know-how to energy sharing: missions working for the entire

community.

The Schneider Electric Foundation pursues three principal objectives.

Transmitting skills and competence by accompanying:

The least well-off, enabling them to have access to energy

Young people, to promote their professional insertion in energy-linked professions.

Sharing energy by transmitting

Know-how, to encourage access to energy.

Knowledge, by contributing to teacher training.

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Promoting:

The responsibility of men and women and a commitment to saving the planet.

SCHNEIDER INDUSTRIAL DEVELOPMENT Mission

Lead the Industrial Deployment Strategy for Schneider Electric.

Coordinate the actions of the Industrial Operations entities (ODs and BUs)

Manage the worldwide Manufacturing and Industrialization skills networks

Develop and deploy the Schneider Production System to reach Manufacturing Excellence

Define and implement the Group Environmental Policy.

Acquisitions:

1. Merlin Gerin:

Merlin Gerin is today one of the leading global brands of electrical distribution requirement.

2. Square D :

Products and systems developed by the Square D are present in all sectors of activity, from

circuit breakers to monitoring control systems.

The tertiary and residential building sectors are major consumers of Square D product.

3. Telemechanique:

The leading brand in automation management, Telemecanique today proposes its «Simply

Smart» approach, based on simplicity and intelligence.

4. Converse :

Specialist in energy measurement, recently Schneider Electric has acquired it.

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OPERATIONS IN INDIA Schneider Electric India Pvt. Ltd (SEI) is a 100% subsidiary of Schneider Electric Industries SAS, a

global specialist in energy management. With a strong force of over 5,500 employees, the company

is well known for its unique vision, progressive management and above all, its exemplary

Quality..

Schneider Electric entered India in 1963 through a first joint venture with the Tata

Group.

In 1995, Schneider Electric established a 100% fully owned subsidiary Schneider Electric

India Pvt. Ltd.

In the year 2000, Schneider Electric further consolidated its position in the Indian market by

acquiring S&S Switchgear and Crompton Greaves LV Division. The year 2007 saw the acquisition

by Schneider Electric of Critical Power & Cooling Solutions major, APC and the world leader

in the field of security solutions, Pelco.

Key Facts about the company in India

� 5500 employees

� 5 Global Manufacturing Plants

� 4 Distribution Centres.

� 400 Authorized Partners: Distributors, System Integrators, Panel Builders

� 2 Global Customer Care Centers

� 2 Global R&D Centres

� 2 Global Software Centres

� 1 Regional Project & Engineering Centre

� 1 Schneider Electric India Training Institute

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MANUFACTURING PLANTS IN INDIA Schneider Electric India, in a bid to make its customers globally competitive, uses cutting

edge technology at all manufacturing plants. Currently, Schneider Electric has four plants

working towards providing world-class products to its customers.

- Nasik Plant - Baroda Plant

- Chennai Plant - Hyderabad Plant

HISTORY The history of Schneider Electric in India

2009 - Acquisition of Conzerv.

2007 - Introduction of APC and Pelco

2006 - Establishing Projects and Services, for turnkey solution, Hyderabad factory.

2005 - Introduction of TAC and VDI

2004 - Integration of Clipsal business

2003 - Inauguration of Baroda factory, SISC / GTCI, entering into residential market with UT

offer.

2002 - Establishment of Solution and Application Centre for Automation projects.

2000 - S & S Switchgear & CGLV acquisition

1995 - Schneider Electric: 100% subsidiary

1984 - J V with TMC

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HYDERABAD FACTORY Schneider Electric India has added to its manufacturing capacities establishing another state-of-

the-art Plant at Hyderabad. Sprawling over 10-acre land, the plant has 12,000 Sqm built-up area.

It boasts of machines equipped with cutting edge technologies, and manufactures world-class

Air Circuit Breakers, Medium Voltage (PN2C, RM6),

Contactors and Push Buttons, and caters to the requirements of domestic as well as

worldwide markets.

Plant Area: 10,000 Sqm No. of People : 350

Hyderabad Factory

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PRODUCTS

Major products manufactured in Hyderabad factory are

1. Master pact Circuit Breakers.

2. Medium Voltage Breakers like

a) . RN2C Ringmaster

b) RM6 Ring main unit

3. Tesys Range of Contractors. 4. Harmony Range of Push Buttons and pilot Lamps.

5. Kiwi2 contractors.

6. Evolis.

1) (2 a) (2 b) (3) (4) (5) (6)

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IMPORTANT FIGURES

KEY FIGURES Year 2009 2008 2007 2006 2005 2004 2003 Net Operating revenues*

15800 18300 17309 13730 11678 10365 8780

Net Profit* 852 1682 1583 1309 994.3 564.6 433 * In million(s) of Euro EARNINGS PER SHARE Year 2009 2008 2007 2006 2005 2004 2003 Earnings Per Share*

3.43 7.02 6.78 5.95 4.56 2.56 1.94

* In Euro SALES PER ACTIVITY Electric distribution (low and high tension): 56 % Industrial automization

29 %

Sector Data as of 31/12/2009 SALES PER GEOGRAPHIC AREA Western Europe 36 % North America 25 % Asia Pacific 23 % Rest of the World 16 % Profile as of 31/12/2009

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RESEARCH AND DEVELOPMENT

In the year 2003, India witnessed Schneider Electric opening its first Global Technology Centre in

Bangalore, India. With 460 employees working on product development, and

resource enhancement, GTCI’s gamut of activities includes research in the fields of

electro mechanical design and software development. The innovative products and technologies

prepared at the centre are available in all markets across the globe. Tasks at the Bangalore Centre are

accomplished in synchronization with Schneider Electric’s major Design Centre in the field of Power

Protection and Control, Industrial Automation and Installation Systems and Control.

Schneider Electric’s R&D in products, software’s services and production process

involves 6,500 people in 25 countries. Along with having its Design Centres in developed

countries, Schneider Electric has Critical Mass Centers at Monterrey (Mexico), Shanghai (China)

and Bangalore (India).

R&D sharpens the competitive edge of the organization, as it checks and enhances the quality

of products, software’s, services, production processes and communication technologies. Therefore, a

large part of Schneider Electric’s sales earnings are invested in R&D every year. Most of the

innovations are aimed towards optimizing easy implementation and operation, safety, flexibility

and enabling products and services to evolve. This effort has gained optimum momentum with

Schneider Electric choosing Bangalore, the IT hub of India, as one of the premier centre for global

R&D.

One of four Global R&D Centers

Established in 2003 460 employees

Research in electro mechanical design and software development

Global innovations application

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NEED FOR THE PROJECT

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Schneider Electric Hyderabad plant was set up in late 2006 with a foresight of making it a industrial

products hub. When the plant was started only 3 major products were manufactured and assembled in

the plant. Slowly major products were shifted from Nasik factory to Hyderabad factory. Presently the

factory produces 6 major products and the scope of further expansion is high.

Hyderabad Factory is the manufacturer of Medium Voltage products and therefore

the requirement of the production happens with the production plan which is discussed during the

Collaborative Sales Forecast meeting . There are different Finished Goods produced on the line which

are prepared in accordance with the customer specifications and there are various parts which are

present in every Finished good produced.

The project intends to analyze the count of the no of parts which go in Finished Good

which is produced and compare the data obtained with the standard BOM which is already present in

the SAP database. Additionally the project also aims at the preparation of Planning BOM for the

medium Voltage product which helps in planning the approximate figure of the particular quantity

required when a finished good production is required.

Need for the project was a challenge put forward by the procurement department to prepare

Planning BOM for medium Voltage product lines.

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1. SCOPE AND DEFINITION OF PROJECT

_______________________________________

The project is confined to Schneider Electric Procurement Department, Hyderabad. An attempt has

been made to study the current systems and practices followed in the plant and find out whether the

information which the plant is following currently is effective and then to upgrade the existing

Planning BOM which are in accordance with customer requirements so that the Purchase Requisitions

can be converted to Purchase Orders.

The scope and definition of the project is as follows:

OBJECTIVE OF THE PROJECT :

To study, understand, analyze and develop an online procurement ordering system for medium

Voltage products as per business evaluation.

SCOPE OF THE PROJECT :

� To study the systems and procedures followed in the plant.

� To understand the processes followed at the Medium Voltage product line preparation.

� To understand the stepwise procedure in which the product is manufactured.

� To analyze the quantity of the no of parts which go in the preparation of Medium Voltage

products.

� To have an understanding of various transactions which are used for obtaining Standard BOM

available in SAP database

� To validate the existing BOM present in the SAP database.

� To upgrade Planning BOM for medium Voltage products such as RN2C, Evolis.

� To verify whether the requisitions are obtained in accordance with the forecasted values.

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2. CONCEPTUALIZATION OF PROJECT

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Schneider Electric, Hyderabad has a production line for the production of Medium Voltage products. The production for RN2C consists of the following parts:

� Core Module Assembly Line.

� Ring Switch Mechanism Assembly Line.

� CB Mechanism Assembly Line.

� Level I Assembly Line

2.1.1 HISTORY OF RING MASTER UNIT :

� 1960s: Outdoor oil filled ring main unit launched using HRC fuse switch technology.

� 1987: creation of the SF6 circuit breaker Ringmaster 1.5, with TLF and IDMT protection

options.

� 1990: Ringmaster 1.5 evolves to the Ringmaster 2. A lower filling and operating gas

pressure and internal arc performance are now achieved.

� 1998: Ringmaster 2c is launched with a significantly smaller footprint and volume

compared to the Ringmaster 2. The provision for motorization is now standard across the

range.

2.1 BASIC DETAILS OF RN2C ASSEMBLY LINE :

The following screenshots represent the flow in which the RN2C product is manufactured in the

Schneider Hyderabad Factory.

The different Ring Master variations manufactured at Hyderabad Plant are RN2C, RE2C and

RM6.

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A. Ring Switch Mechanism Assembly Line

B. C B Mechanism Assembly Line

C. Level –I Assembly Line

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D. Compact Non Extensible Ring Main E. Extensible circuit Breakers and switches Unit

2.1.2 RINGMASTER MUNTIPLE CONFIGURATIONS

Free standing, Non-extensible

Transformer mounted,non-extensible. Transformer mounted,

extensible.

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� The free standing, non-extensible ring main unit is designed for cable connection to ring

switches and tee off circuit breaker.

� The same non-extensible ring main unit can be directly mounted on a fluid filled

transformer in a package substation arrangement.

� The extensible ring main unit can also be directly mounted on the transformer and

extended with a fourth function. This fourth function can be either a switch, for network

switching points or a circuit breaker for open ring sectionalizing.

� The extensible ring main unit complete with fourth function can also be free standing.

� Within the Ringmaster range there is also a single, non-extensible circuit breaker or

switch available for radial feeds. This is available in either a free standing or transformer

mounted arrangement.

� These single switches and circuit breakers are also available in an extensible format

which allows free standing switchboards to be built up for interconnection or MV / MV

substations.

� Metering units are also available on all functions.

Free standing, extensible

Single function

Free standing extensible switchboard.

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2.1.3 RINGMASTER FEATURES AND RANGE :

PANEL TYPES

Ring Main Units Metering Circuit Breakers and Switches

Units

The above figure indicates the different range of panels that come under the Ring Master Unit and its brief description. The Ringmaster ring main unit combines three MV functional units for transformer protection

and network points with the option for a fourth if using the extensible ring main unit.

� Gas pressure indicator � Anti-reflex handle or electrical operation � Interlocked MV cable testing � Integral self-powered protection � IP54 enclosure � Simple, clear operation � Compact size � Earth screened cast-resin gas module � Mechanical tripped on-fault indication � Direct coupling to transformers or cable

connection �� Direct coupling to Metering Unit

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The extensible range has many options which can cater for almost any secondary MV

distribution network.

The Ringmaster family consists of the following:-

� A range of extensible and non-extensible ring main units with tee off circuit breaker

ratings up to 630A.

� a non-extensible 200A MV metering unit for the MV/LV transformer

� A range of extensible and non-extensible circuit breakers and switches with ratings up to

630A, for radial feeds and extensible switchboard configurations.

NOTE : All Ringmaster extensible ring main units can be extended on the right hand side.

ADVANTAGES:

The advantages of Ring Master Configurations include:

� Direct coupling to minimize cabling

� Reduced floor space

� Simplified logistics

� Reduced installation time

� installation indoors or outdoors

� The most common installation is the package substation..

MONITORING AND PROTECTING YOUR NETWORK

� Ringmaster offers a wide choice of relays from the VIP self powered range, ideal for

remote areas, to the new Sepam 10 advanced relay.

� The Time Fuse Link or TLF protection devices use the fault current to trip the circuit

breaker after rupturing a low voltage TLF fuse. TLF protection offers over current and

earth fault protection for transformers and loads up to 1600kVA.

� VIP30 and VIP35 offer a fixed characteristic but with multiple protection settings of

over current and earth fault.

� VIP300 is a micro processor based IDMT relay offering a full range of settings for loads

up to the full load capacity of the circuit breaker.

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� These self powered options eliminate the need for expensive switch tripping units in

Ringmaster substations.

� Sepam 10 provides enhanced performance such as communications ports and very

sensitive earth fault.

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2.1.4 LIST OF IMPORTANT TRANSACTIONS USED IN SAP :

� mb51 – Material document list based on given material code and plant location.

� va05 – Gives the list of all sales orders based on the given material code.

� cs63 – Gives the list of BOM details based on the given sales order, material code and

plant id.(A list of open orders can also be obtained using this transaction)

� cs13 – Gives the list of summarized BOM for a particular FG reference.

� cs03 – Gives BOM details from parent level to its lowest child level component

� mm02 – Used for editing master details of material.

� mm03 – Used for viewing details of material master.

� mmbe – Gives a list of Stock details for various parts (eg . 4000 – Warehouse location ,

2003 – Harmony,2004 – Tesys,2007 – Evolis etc )

� md06 – gives the details of all the MRP controllers.

� cs01 - Creation of Planning BOM

� cs02 – Editing or Modifying Planning BOM.

� md62 – Changing the Planned Independent Requirements or Maintaining forecast.

� md02 – Execute MRP manually

� md04 – Verifying the forecast or Stock requirements.

� md63 – Displaying the forecast.

� cs12 – Obtaining the details of Multilevel BOM.

NOTE:

� in10 : Plant Code used for Schneider Hyderabad Plant.

� in01: Sales organization code used at Schneider Hyderabad Plant.

� pp01: BOM application code used at Schneider Hyderabad Plant.

� 311: Material movement code from warehouse to shop floor in mb51 transaction.

� 261: Consumption code used in mm03 transaction at Schneider Hyderabad Plant.

� 3: BOM usage code used in cs63 transaction at Schneider Hyderabad Plant.

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2.2 STEPS USED FOR THE PREPARATION OF PLANNING BOM FOR RN2C

� Extraction of Standard BOM from SAP

� Validation of Standard BOM present in SAP

� Upgrading Planning BOM for RN2C

� Updating the Planning BOM in SAP and verification of online requisitions.

2.2.1 EXTRACTION OF STANDARD BOM FROM SAP : .

a. Screenshot showing the major customers whose BOM needs to be extracted from SAP DESCRIPTION :

� The above screen shows details of all the major customers of Schneider Hyderabad plant

in the past 6 months and the data for the above needs to be extracted from the SAP

database using va05 transaction.

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b. Screenshot showing the details extracted from SAP based on the major customer

orders. DESCRIPTION: The above screen shows details all the sales orders of major customers based on historical data

which has the Sales Oder No, Item No and BOM Qty.The whole data needs to be exported to an

Excel sheet.

2.2.2 VALIDATION OF STANDARD BOM EXTRACTED FROM SAP : The validation of RN2C Ring Master Unit comprises of validating one of the Finished Goods . Here RN2C-T2/21-PHASE 2 WITH VIP300 RELAY FG is taken up for validation on the following assembly lines

� Core Module Assembly Line. � Ring Switch Mechanism Assembly Line. � CB Mechanism Assembly Line. � Level I Assembly Line

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c. Screenshot showing the validated data for RN2C-T2/21-PHASE 2 WITH VIP300 RELAY

DESCRIPTION: The above screen shows details all the data that was collected after validation for the above

Finished good and the data taken from SAP .The difference between the physical quantity and

the BOM quantity was taken up for validation.

2.2.3 UPGRADING PLANNING BOM FOR RN2C :

� The Planning BOM figure for RN2C is prepared by initially extracting all the details

pertaining to sales orders of major customers in past 6 months.

� The consolidated data of all the FG’s taken from the SAP database is as shown in the

following screenshot

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d. Screenshot showing the consolidated data of all FG’s for the preparation of Planning BOM for RN2C

DESCRIPTION: The above screen gives details of the count of no of parts that goes in each and every FG code.

In a way it gives details of consolidated FG data which would indicate the different parts which

go in each and every Finished Good.

� The next step is to take the pivot table between Parts and Sum of Parts for a particular FG

as shown in the following screenshot.

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e. Screenshot showing the details of parts and its count for RN2C-T2/21 FG Code DESCRIPTION: The above screenshot gives details of the count of no of parts that goes in each and every FG

code. This is obtained by applying Pivot table between Parts and the BOM Qty obtained from the

SAP database. The same procedure is followed for all the Finished Good codes of Ring Master

Unit.

� After obtaining the above the next step is to consolidate all the pivoted tables of different

Finished Goods so that the following Excel sheet can be obtained.

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f. Screenshot showing the details of Final BOM figure which needs to be updated in the SAP database.

DESCRIPTION: The above screenshot gives details of the final BOM figure of a particular part which needs to

be updated in the SAP database. The Excel sheet gives the details of the BOM quantity

pertaining to a particular (Finished Good, Sales Order No) and Part No . The Excel sheet also

contains details which are described as follows:

� Total requirements are obtained by applying Pivot table to the Part no and BOM qty of

the main Excel file which is extracted from the SAP database using va05 transaction.

� Actual requirement column is taken up for a period of time i.e it is considered for around

a years time where as current requirement is what is currently required and which are

there in open orders obtained from SAP database using cs63 transaction.

� Final Fig column in the Planning BOM file is % of Planning BOm column in the above

screenshot.

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g. Screenshot showing the order qty of unique Sales Order NO and Finished Good Code. DESCRIPTION: The above screenshot gives details of the count of Order qty which is unique for a particular sales order no and Finished Good. 2.2.4 UPDATING THE PLANNING BOM IN SAP AND VERIFICATION O F ONLINE

REQUISITIONS

�� The Final Planning BOM prepared has two important columns which are Parts and Final

BOM figure which needs to be updated in the SAP database. These figures which are

updated in the SAP database using cs02 transaction as shown in the following

Screenshot. The Material Code for the Planning BOM updating in the SAP database is

ICPP_RINGMASTER.

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h. Screenshot showing Planning BOM of RN2C that is updated in the SAP database. �� The next step is to maintain the forecast value in the SAP database using md62 transaction

where we can define forecast values for next 6 months as shown in the following

screenshot.

i. Screenshot showing the forecasted value updated in the SAP database

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� The next step is the verification of the requisitions obtained online in the SAP database

by going to the md04 transaction which should give an approximate value of the Part qty

which is defined in cs03 transaction multiplied with the forecasted value applicable in the

md62 transaction as shown in the following screenshot.

j. Screenshot showing the online requisition obtained in the SAP database for a particular part going in RN2C Finished Good

NOTE: In this way the online requisitions are verified for all the parts that go in Ring Master Unit.

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2.3 EVOLIS PRODUCT INTRODUCTION :

Schneider Electric, Hyderabad has a production line for the production of Evolis production.

Evolis has a range of circuit breakers that takes account of your electrical

installations’ requirements today and in future.

� Evolis has a range of vacuum-type circuit breakers from 7.2 kV to 24 kV combining

easy selection and a comprehensive offer:

� A withdraw able, frontal version with a circuit breaker and its cradle or its cassette.

� A fixed, lateral version equipped with an integrated protection chain

� The Evolis circuit breaker is operated via a spring mechanism that gives an operating

speed that is independent of the operator and that does not require an auxiliary power

supply. When the operating mechanism is motorized the circuit breaker can include

telecontrol functions and carry out rapid reclosing cycles. The various circuit breaker

versions are easy to integrate in a cubicle environment

Applications:

� Evolis is intended for use in medium voltage network applications, in new installations

or renovation, for utilities companies, infrastructures, the process industry and the tertiary

sector. It provides protection for all types of applications: cables, overhead lines, motors

capacitors, transformers, source busbar sections, etc.

� Evolis circuit breakers are three-pole indoor MV circuit breakers.

� They are mainly used for operation and protection of public, industrial and tertiary

distribution networks from 7.2 to 17.5 kV.

� Through their compact dimensions and harmonized range, Evolis circuit breakers are

positioned very favorably on the retrofit market.

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Evolis 17.5 kV fixed, frontal version Evolis 24 kV fixed, frontal version

2.4 STEPS USED FOR THE PREPARATION OF PLANNING BOM FOR EVOLIS

� Extraction of Standard BOM from SAP

� Upgrading Planning BOM for EVOLIS

� Updating the Planning BOM in SAP and verification of online requisitions.

2.4.1 EXTRACTION OF STANDARD BOM FROM SAP :

k. Screenshot showing the Standard BOM which is extracted from the SAP database for a particular Finished Good.

DESCRIPTION :

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� The above screen shows details of the data which represents the Standard BOM details

which needs to be extracted from the SAP database using va05 transaction.

2.4.2 UPGRADING PLANNING BOM FOR EVOLIS :

l. Screenshot showing the Planning BOM for Evolis which needs to be updated in SAP. DESCRIPTION : The above screenshot shows details of the planning BOM which is upgraded for Evolis wherein

it contains the final planning BOM figure for all the Finished Goods which needs to be updated

in the SAP database.

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2.4.3 UPDATING PLANNING BOM IN SAP AND VERIFICATION OF ON LINE REQUISITIONS :

m. Screenshot showing the Planning BOM updation for Evolis updated in SAP. DESCRIPTION : The above screenshot shows details of the final Planning BOM which is updated in the database

using the Final Planning BOM code ICPP_EVOLIS which holds details of all the parts which

are present in each and every Finished Good code of Evolis.

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n. Screenshot showing the Planning BOM quantity for parts which go in Evolis DESCRIPTION : The above screenshot shows details of the Planning BOM quantity which is updated in the SAP

for a list of parts which go in Evolis under the code ICPP_EVOLIS.

o. Screenshot showing forecasted values for Evolis

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DESCRIPTION :

The above screenshot shows details of forecasted values which are taken from Procurement

department planned for a period of time for Evolis Product under the Planning BOM code

ICPP_EVOLIS .This data needs to be updated using the transaction md63 which is used for

maintaining the forecast.

p. Screenshot showing final requirement values for a particular part which are in accordance with the Planning BOM file.

DESCRIPTION : The above screenshot shows details of the final requirement quantity which is in accordance with

the Planning BOM file which gives the details of the actual quantity which needs to be ordered

to the customers and this figure is arrived in accordance with the forecasted values i.e. it is the

multiplicative factor obtained by multiplying part quantity and the forecasted value using md04

transaction.

The above step also helps in verification of the requisitions which are well in accordance with

the Planning BOM file for all the parts that go in Evolis Product.

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3. ANALYSIS AND FINDINGS

___________________________________ RINGMASTER UNIT :

� Standard BOM validated for RN and RE type Ringmaster.

� 550 Components have been verified.

� For 29 parts variance has been observed and modifications are done

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q. Screenshot showing final variances observed during the validation of RN2C Standard BOM present in SAP database.

� The Planning BOM which was prepared was taken over a period of 6 months for past

customer orders.

� Planning BOM present in the system was ineffective which was modified to a larger

extent.

� The Planning BOM calculations had many data management calculations which is dealt

in the findings part.

� The requisitions obtained after upgrading the Planning BOM was taking into account the

multiplication of forecasted value of the Product and Planning BOM final figure.

� The Planning BOM preparation involved analysis and design of the similar finished good

codes which are unique for a particular Sales Order no.

� After the updation of Planning BOM in the SAP database the requisitions for all the parts

were obtained accurately.

� ICPP_RINGMASTER was the material code used for updating the Final Planning BOM

of Ring Master Unit.

� ICPP_RINGMASTER had GCR_RINGMASTER which has details of all the parts with

final Planning BOM figure updated in the SAP database.

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r. Screenshot displaying the Planning BOM file of RN2C.

EVOLIS:

� The Planning BOM which was prepared was taken over a period of 6 months for past

customer orders.

� Planning BOM present in the system was ineffective which was modified to a larger

extent.

� The Planning BOM calculations had many data management calculations which is dealt

in the findings part.

� The requisitions obtained after upgrading the Planning BOM was taking into account the

multiplication of forecasted value of the Product and Planning BOM final figure.

� The Planning BOM preparation involved analysis and design of the similar finished good

codes which are unique for a particular Sales Order no.

� After the updation of Planning BOM in the SAP database the requisitions for all the parts

were obtained accurately.

� ICPP_EVOLIS was the material code used for updating the Final Planning BOM of Ring

Master Unit.

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s. Screenshot displaying the Planning BOM file of Evolis.

FINDINGS:

RINGMASTER UNIT :

� The Planning BOM figure was highest in the case of part no 4123037 which had

approximately the highest requirement in terms of its open orders.

� Some of the parts such as 4231043, 4281078, 4558029 and 4807741were identified as

bulk material parts which have no specific consumption pattern.

� Some of the parts in the Planning BOM upgradation have zero current requirements

thereby leading to zero Final Planning BOM figure.

� The current requirement column in the Planning BOM file is calculated using the count

of all orders which are open for all the Finished Goods under Ring Master Unit.

� The actual requirement column which is taken for a period of time (say one year) in the

Planning BOM file is calculated using the count of all the orders for all the Finished

Goods under the Ring Master Unit

� The parts whose current requirements are zero are those parts which have very less

probability of being ordered by customers in near future.

� The parts whose current requirements are more (say more than 50) are those parts which

have greater chances of being ordered by customers in future.

� Quantification done in terms of order frequency as the order frequency is more.

� Unwanted manual Planning was saved which used to take place earlier.

� The Planning BOM file prepared for Ring Master Unit would make a layman’s work very

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easier in placing the orders rather than analyzing the whole product and then perform

manual operations in getting upto the final BOM quantity.

� The Planning BOM updation needs to be done using cs01 transaction rather than using

cs03 transaction which would lead to an error

EVOLIS:

� The Planning BOM Figure was highest in the case of BBV50801 part which has the max

summation value of all the Finished Goods i.e. has maximum current requirement.

� Some other parts which have major current requirement are 21628220, 21628222,

03401001F0, 51222734F0, 1023797, 21222308, 21252108, BBV50608, 04442887AA,

AAV660102.

� There are some parts which have zero current requirements leading to zero Planning

BOM Figure and these parts need not be updated in the SAP database.

� Quantification done in terms of order frequency as the order frequency is more.

� Unwanted manual Planning was saved which used to take place earlier.

� The Planning BOM file prepared for Evolis would make a layman’s work very easier in

placing the orders rather than analyzing the whole product and then perform manual

operations in getting upto the final BOM quantity.

� After updation of the Panning BOM file in the Excel Sheet Evolis was not giving correct

requisitions because of the presence of an older version of the Planning BOM file from

which the BOM quantity was taken and requisitions were calculated accordingly. This

problem was analyzed and the older file from date version was changed initially but later

the newer file was over ridden with the older file which leads to the calculation of

accurate requisitions online.

� The Planning BOM updation needs to be done using cs01 transaction rather than using

cs03 transaction

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4. RECOMMENDATIONS

____________________________________

Some of the recommendations which can be implied to both Ring Master Unit and Evolis

are:

� There should be a timely change in Planning BOM as the forecasted values is

expected to remain similar for three months and if the forecasted value for a particular

month majorly differs then there should be a change in the Planning BOM file which

needs to be updated in the SAP database.

� Safety Stock which is planned for all the parts which go in Ring Master Unit and

Evolis should also be changed appropriately once in 3 months depending on the

customer orders and movement of the good.

� An abnormal surge in demand of a particular Finished Good must appropriately lead

to a change in the Planning BOM pertaining to particular Finished Good.

� Stock which is non moving should have a mandatory check and these parts should be

removed from the Planning BOM file periodically.

� Planning BOM file can be used to calculate the final figure of a particular quantity

which is to be ordered if an abnormal demand exists in the Planning File.

� The same Planning BOM file can be used in different conditions.

Can be used as a standard for updating regularly.

� The principles and steps which are used for preparing Planning BOM file for Evolis

and RN2C can be applied to RM6 (Finished Good Manufactured at Hyderabad

Plant).

� The Planning BOM file which is prepared for RN2C can be used to the current

project running in Hyderabad Plant ,RDE2C ( Double Extensible Ring Master

Unit) as it comprises few add on parts as compared to RE2C.

� The Planning BOM file would save man power hours there by giving an opportunity

to use the same resource to perform several other value added tasks.

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� The Planning BOM can also be used to place orders on a weekly basis rather than

placing orders biweekly/monthly basis.

� The Firmed Production Orders should be deleted from the SAP, so that the current

requisitions are obtained accurately without any error.

� The forecast values should be updated in the SAP database in md63 transaction so

that we obtain the correct requisitions for both Evolis and RN2C products.

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5. CONCLUSION

____________________________________ After going through the analysis of this project the procurement department took the initiative

of placing the orders pertaining to a particular Finished Good in the required amount as

obtained in the online requisitions. Additionally it saved the manual time required to calculate

the Planning BOM figure which was required to calculate the final no of orders to be placed on

a particular part.

After implementation of certain suggestions the following outputs were obtained:

� There was a percentage increase of online requisitions from 0% to 85% which

indicates that the requisitions of the parts on RN2C line were more accurate and in

accordance with the upgraded Planning BOM figure.

� There was a percentage increase of online requisitions from 0% to 95% which

indicates that the requisitions of the parts on Evolis line were more accurate and in

accordance with the upgraded Planning BOM figure.

� The following chart shows the details of percentage increase in the online requisitions

of RN2C which were obtained before and after the implementation of the project

t. Bar Chart showing the percentage of Manual and system MRP usage before implementation of Planning BOM for RN2C

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u. Bar Chart showing the percentage of Manual and system MRP usage after implementation of Planning BOM for RN2C.

� The following chart shows the details of percentage increase in the online requisitions

of Evolis which were obtained before and after the implementation of the project.

v. Bar Chart showing the percentage of Manual and system MRP usage before implementation of Planning BOM for Evolis

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w. Bar Chart showing the percentage of Manual and system MRP usage after implementation of Planning BOM for Evolis

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6. FINAL VALUE ADDITION

___________________________________

The analysis and recommendations of this project has provided Schneider Hyderabad’s

procurement department the medium of placing orders accurately for both Evolis and RN2C

products.

After presentation of the analysis and recommendations to the plant head, instructions were given

to the methods and procurement department to implement the changes that were identified in

RN2C validation in the SAP which would incorporate saving in costs per customer order. The

requisitions obtained were validated and accurate results were obtained. This project was

successful in fulfilling its requirements.

This project was beneficial for the plant to optimize the no of orders which should be placed by

Schneider Hyderabad in accordance with the job carried out on product lines

Indeed the two months spend here in Schneider Electric has been very beneficial to me in terms of

gaining knowledge, interacting with experts here has helped me gain valuable inputs and gave

me the right kind of approach and attitude to analyze and deal with the problem.

It also gave me the right platform to get hands on experience on the various world class practices as

followed by the company.

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7. ANNEXURE

____________________________________

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8. BIBLIOGRAPHY

____________________________________

1. Schneider Production system (SPS) manual

2. Schneider Electric Training manual.

3. www.schneider-electric.com

4. www.billofmaterial.com

9. GLOSSARY OF TERMS

____________________________________

1. SPS: Schneider Production System.

2. MOQ : Minimum Order Quantity

3. RN : Right Non Extensible Ring Master Unit

4. RE: Right Extensible Ring Master Unit.

5. MVP : Medium Voltage Products

6. BOM : Bill of Material

7. RMU : Ring Master Unit

sadiq_report

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