yamaha india

SUMMER INTERNSHIP REPORT

On

STUDY AND APPLICATION OF THE PYMAC SYSTEM

@YAMAHA INDIA

Submitted in partial fulfillment for the requirement of the award of degree of

Master of Business Administration

By

Adeeb Rizvi 13-MBA-30

Under the Supervision of

Mr. Satyendra Jha Executive Engineer- Purchase India Yamaha Motor Pvt. Ltd.

DEPARTMENT OF BUSINESS ADMINISTRATION

FACULTY OF MANAGEMENT STUDIES AND RESEARCH

ALIGARH MUSLIM UNIVERSITY, ALIGARH

2014-15

Table of contents Acknowledgement

Executive Summary

1. Introduction…………………………………………………………………………………11-20

1.1 YAMAHA Motor Company…………………………………………………………...13

1.2 India YAMAHA Motor Pvt. Ltd. ……………………………………………………...17

2. Research Methodology……………………………………………………………………...21-23

2.1 Objectives of the study………………………………………………………………….22

2.2 Research Design………………………………………………………………………...22

2.3 Research Approach……………………………………………………………………..22

2.4 Sources of data………………………………………………………………………….22

2.5 Duration of study………………………………………………………………………..22

2.6 Research Process………………………………………………………………………..23

3. Purchase Department at India Yamaha Motor……………………………………………...24-35

3.1 Introduction to purchase department……………………………………………………25

3.1.1 Part Development………………………………………………………………...25

3.1.2 Purchase Planning…………………………………………………......................25

3.1.3 Non-Productive Purchase………………………………………….......................25

3.1.4 Productive Purchase……………………………………………………………...26

3.2 Job Rules for Productive Purchase……………………………………………………...27

3.2.1 For PYMAC card delivery confirmation………………………………………….27

3.2.2 For control and monitoring of PYMAC manual order……………………………27

3.2.3 For controlling parts from vendor to stores……………………………………….28

3.2.4 To ensure defect free components for assembly in case of

lot rejection……………………………………………………………………….29

3.2.5 For initiating alternate source ……………………………………………………30

3.3 Formats for Productive Purchase………………………………………………………..31

3.3.1 Format for CKD planning sheet…………………………………….......................31

3.3.2 Format for Order Confirmation Sheet…………………………………………….32

3.3.3 Format for vendor selection approval- existing part……………………………...33

3.3.4 Format for emergency air shipping……………………………………………….34

3.3.5 Format for Payment of Supplementary Bills……………………………………...35

4. PYMAC Education……………………………………………………………………....36-63

4.1 A brief background of MRP………………………………………………………....37

4.2 PYMAC @ YAMAHA…………………………………………………………...…46 4.3 Purchase Procedures- Application of PYMAC……………………………………...53

4.3.1 Gate Entry Invoice Checklist Retrieval………………………………………..53

4.3.2 Before Shipment Order Retrieval………………………………………..55

4.3.3 Order Retrieval………………………………………………………………...58

4.3.4 Y-Com System for Suppliers………………………………………………......61

5. Daily Operations………………………………………………………………………...64-77

6. Conclusion, Recommendations & Limitations………………………………………….78-80

Bibliography……………………………………………………………………………..81-82

Appendix………………………………………………………………………………...83-93

(A) Abbreviations used in purchase department…………………………………….84

(B) Supplier codes…………………………………………………………………...88

(C) Item code/ part code……………………………………………………………..89

(D) Model code………………………………………………………………………93

List of tables

Table No. Table Title Page No.

1. Pending orders for Hemsons Engg. as on 14th

July up to 30th

July 2014 66

2. Pending orders for J.L. Auto as on 14th

July up to 30th

July 2014 67

3. Order details of Hemsons Engg. on 21st July morning 68

4. Order details of Hemsons Engg. on 21st July evening 68

5. Order details of Hemsons Engg. on 22nd

July morning 69

6. Order details of Hemsons Engg. on 22nd

July evening 69

7. Order details of Hemsons Engg. on 23rd

July morning 70

8. Order details of Hemsons Engg. on 23rd

July evening 70

9. Order details of Hemsons Engg. on 24th

July morning 71


July evening 71


July morning 72


July evening 72

13. Order details of Nicks India Tools on 21st July morning 73

14. Order details of Nicks India Tools on 21st July evening 73

15. Order details of Nicks India Tools on 22nd

July morning 74

16. Order details of Nicks India Tools on 22nd

July evening 74

17. Order details of Nicks India Tools on 23rd

July morning 75

18. Order details of Nicks India Tools on 23rd

July evening 75

19. Order details of Nicks India Tools on 24th

July morning 76


July evening 76


July morning 77


July evening 77

List of figures

Figure No. Figure Title Page No.

1.1 Two-wheeler companies in the Indian market 12

1.2 Yamaha Motor Company, Iwata, Shizouka, Japan 13

1.3 Global operations of Yamaha Motor Company 16

2.1 Flowchart depicting the research process 23

3.1 Job rule for PYMAC card delivery confirmation 27

3.2 Job rule for control and monitoring of PYMAC manual order 27

3.3 Job rule for controlling parts from vendor to stores 28

3.4 Job rule to ensure defect free component for assembly in case of lot

rejection

29

3.5 Job rule for initiating alternate source 30

3.6 Format for CKD planning sheet 31

3.7 Format for Order Confirmation Sheet 32

3.8 Format for vendor selection approval- existing part 33

3.9 Format for emergency air shipping 34

3.10 Format for payment of supplementary bill 35

4.1 Material Requirement Planning (MRP) layout 39

4.2 Manufacturing Resource Planning (MRP II) layout 44

4.3 PYMAC system 46

4.4 Sample for Delivery Slip 47

4.5 Sample for Receipt Card 47

4.6 Sample for Inspection Report 48

4.7 Sample for Complete Report 48

4.8 BOM structure for PYMAC-III 49

4.9 Procedure for developing Item Key Structure 50

4.10 Inventory control procedure using PYMAC 50

4.11 PYMAC-III code definition 51

4.12 Supplier/User (SU) code for the In-house shop 51

4.13 Platform (P/F) codes for PYMAC-III 52

4.14 Stock Point (S/P) codes for PYMAC-III 52

4.15 Screenshot showing IC menu in the main PYMAC menu 53

4.16 Screenshot showing Gate Entry Invoice Option in the IC Menu 54

4.17 Screenshot showing the Gate Entry Invoice details 54

4.18 Screenshot showing the MRP Menu in the main PYMAC menu 55

4.19 Screenshot showing Before Shipment Order Retrieval in the IC menu 56

4.20 Screenshot showing Before Shipment Order Details for a particular

supplier

56

4.21 Screenshot showing Before Shipment Order Details for a particular

person

57

4.22 Screenshot showing the procedure to save Before Shipment Order

Data

57

4.23 Screenshot showing the procedure to save Before Shipment Order

Data

58

4.24 Screenshot showing the MRP Menu in the main PYMAC menu 59

4.25 Screenshot showing the Order Retrieval Details 59

4.26 Screenshot showing the procedure to retrieve parts list when part no.

is unknown

60

4.27 Screenshot showing the part list with part list starting from 54B 60

4.28 Screenshot showing the homepage of Yamaha Communication

System

61

4.29 Screenshot showing Parts Order System among other options 62

4.30 Screenshot showing the main menu of Parts Ordering System 62

4.31 Screenshot showing the components of Order and Delivery 63

4.32 Screenshot showing the process of reprinting the delivery cards 63

Acknowledgement

First of all I would like to thank The Almighty for He gave me this opportunity to work with Yamaha and led

to the successful completion of my training.

Next, I would like to extend my heartfelt gratitude to my supervisor Mr. Satyendra Jha, Executive Engineer-

Purchase, India Yamaha Motors Pvt. Ltd. for he took time from his busy schedule and spent time with me to

teach various things about the purchase operations.

I would also like to thank Mr. Anil Jain, Senior Manager-Purchase, India Yamaha Motor Pvt. Ltd., for his

never ending support during the entire course of this training.

I would also like the thank Mr. Parwez Hussain, Corporate Head-HR, Continental Devices India Limited, and

Mr. Neil Mani Malla for they arranged for my training and for their continuous support during the entire

training.

I would be failing in my duty if I do not thank my parents, my siblings and my friends for their constant

encouragement in the accomplishment of this report.

Lastly, I would like to thank my teachers, Prof. Jamal A. Farooqui and Dr. Asif Akhtar for they imparted

knowledge of operations management without which it would have been next to impossible for me to

understand the intricacies of the purchase operations at India Yamaha Motor Pvt. Ltd.

Adeeb Rizvi

Executive Summary

This report is about the things I have learnt and the work that I have done during my 2 months stay at India

Yamaha Motor Pvt. Ltd., Surajpur plant.

It gives a description about the working of Yamaha‟s own Manufacturing Resource Planning (MRP) system,

PYMAC (PAN Yamaha Manufacturing Control) which is used to place the orders according to the production

schedule and to coordinate with the vendors to ascertain the on time supply of raw material and other parts.

It also discusses about the purchase department of Yamaha and its functioning which includes placing of

orders according the production schedule, cost planning of spare parts and other integral parts and to

communicate this change in prices to the vendors through a price confirmation sheet (PCS), procurement of

non-productive parts and procurement of productive parts, with a special description of the productive part

procurement.

This report also details about the day-to-day purchase operations. I was working in the productive part

procurement department, where in the last week. I was supposed to monitor the condition of the parts in the

inventory on a daily basis and coordinate with the vendors to ensure immediate supply of the critical parts.

Faculty of Management Studies and Research

Aligarh Muslim University, Aligarh

Declaration

I, Adeeb Rizvi, hereby declare that this report is an original work of mine and contains details about the things

I have learnt and the work I have done during my two months‟ stay at India Yamaha Motor Pvt. Ltd.

I also declare that this report will only be submitted in the ALIGARH MUSLIM UNIVERSITY for the partial

fulfillment of the award of the degree of Master Of Business Administration (M.B.A.) and will not be

submitted anywhere else for the award of any other degree.

Adeeb Rizvi

Chapter-1

Introduction

Introduction

India is the second largest manufacturer of motorbikes in the world after China. The motorbikes market is

considered as a big bull of Indian automobiles industry. In India, the share of motor bikes in the two-wheeler

industry has risen to 80% from 30% in the last decade and a half, during which annual period sales of

motorbikes in the country have grown by a multiple of 13.

Strong players like Hero Honda, Bajaj Auto, TVS, Yamaha India etc. aim to provide efficiency and comfort

ability without compromising on the fun and thrill of riding. These companies provide various variants of

motorbikes to satisfy all the types of consumers in the country. In India, four different variants of motorbikes

are available in the market with the power engines of 100cc, 125cc, 150-250cc and above 250cc bike.

Fig. 1.1 Two-wheeler companies in the Indian market

1.1 YAMAHA Motor Company, Japan

Yamaha Motor Company Limited, is a Japanese manufacturer of motorcycles, marine products such as boats

and outboard motors, and other motorized products. The company was established in 1955 upon separation

from Yamaha Corporation, and is headquartered in Iwata, Shizuoka, Japan. Yamaha Motor conducts global

development, production and marketing operations through 109 consolidated subsidiaries as of 2012.

Led by Genichi Kawakami, the company‟s first president, Yamaha Motor began production of its first product,

the YA-1 , in 1955. The 125cc motorcycle won the 3rd

Mount Fuji Ascent Race in its class, and launched a

legacy by which the company continues to pursue motorsports as a means to accelerate development.

Fig. 1.2 Yamaha Motor Company, Iwata, Shizuoka, Japan

Yamaha Motor‟s current lineup of products includes motorcycles, scooters, electrically power assisted

bicycles, boats, sail boats, personal watercrafts, pools, utility boats, fishing boats, outboard motors, 4-wheel

ATVs, recreational off-highway vehicles, racing kart engines, golf cars, multi-purpose engines, generators,

water pumps, snowmobiles, small-sized snow throwers, automobile engines etc.

The company is also involved in the import and sales of various types of products, development of tourist

businesses and management of leisure, recreational facilities and related services.

Yamaha Motors has two core areas of technology – small engine technology originating from motorcycle

development, and FRP process technology originating from boat manufacturing. Further to this, Yamaha

Motor has expanded into developing control technology and component technology in order to build a multi-

axial business structure while at the same time pursuing globalization of our corporate activities. Small engine

technology is now implemented in new fields such as marine engines, RV‟s, and other power products, while

FRP process technology is now used for pool manufacturing and personal vehicle exteriors.

The motorcycle, used as a daily mode of transport or as an essential partner in leisure and sporting activities,

has been at the core of Yamaha motor since the founding of the company. The demand in the type of

motorcycle varies between regions, for instance the North American market demands cruisers, the European

market tourers, and the Oceania market requires dual-purpose sports models (both on and off road). To meet

these varying demands of the worldwide market, we have a wide range of motorcycle lineups available.

Key Products

Motorcycles

Yamaha's first motorcycle was the 1 YA-1, which was a copy of the German DKW RT125, and had a 125 cc,

single-cylinder two-stroke engine. It was launched in February 1955 and the bike won its first race, the Mount

Fuji Ascent Race, in July 1955.[3]

Yamaha continued producing two-stroke engines until it launched the XS-

1 in 1969, with a 650 cc two-cylinder four-stroke engine, using expertise that it gained doing engine

development work for Toyota. In 1998 Yamaha marketed a revolutionary 1000cc four cylinder road bike

called the YZF 'R1', this model introduced a new style of gearbox design which shortened the overall length of

the motor/gearbox case, thereby allowing a more compact unit. This, in turn allowed the motor to be placed in

the frame far enough forward to compliment good handling in a short wheel-based frame, a revolutionary step

forward in motorcycle design[4]

In 1979, the XT500 won the first Paris-Dakar Rally.[5]

In 1995, Yamaha announced the creation of Star Motorcycles, a new brand name for its cruiser

series of motorcycles in the American market. In other markets, Star motorcycles are sold

under the Yamaha brand.

In 2007, Yamaha officially established the Philippine operations and distributes Yamaha

motorcycles under the corporate name of Yamaha Motor Philippines, Inc.

Today, Yamaha produces scooters from 50 to 500 cc, and a range of motorcycles from 50 to

1,900 cc, including cruiser, sport touring, sport, dual-sport, and off-road.

Racing

In motorcycle racing Yamaha has won 36 world championships, including 3 in Moto-GP and 9 in the

preceding 500 cc two-stroke class, and 1 in World Superbike. Yamaha riders include Giacomo Agostini, Bob

Hannah, Heikki Mikkola, Kenny Roberts, Eddie Lawson, Wayne Rainey, Jeremy McGrath, Stefan

Merriman, Phil Read, Chad Reed, Ben Spies, James Stewart and currently Jorge Lorenzo and Valentino Rossi.

The Yamaha YZ450F won the AMA Super-cross Championship two years in a row, in 2008 with Chad Reed,

and 2009 James Stewart. Yamaha was the first to build a production mono-shock motocross bike (1975 for 250

and 400, 1976 for 125) and one of the first to have a water-cooled motocross production bike (1977 in works

bikes, 1981 in off-the-shelf bikes).

Since 1962, Yamaha made production road racing Grand Prix motorcycles that any licensed road racer could

purchase. In 1970, non-factory privateer teams dominated the 250 cc World Championship with Great

Britain's Rodney Gould winning the title on a Yamaha TD2.

Yamaha also sponsors several professional ATV riders in several areas of racing, such as cross country racing

and motocross. Yamaha has had success in cross country with their YFZ450, ridden by Bill Ballance, winning

9 straight titles since 2000. Yamaha's other major rider, Traci Cecco, has ridden the YFZ450 to 7 titles, with

the first in 2000. In ATV motocross, Yamaha has had success with Dustin Nelson and Pat Brown, both who

race the YFZ450. Pat Brown's best season was a 3rd place title in 2007, while Nelson has had two 1st place

titles in the Yamaha/ITP Quadcross, one in 2006 and the other in 2008.

Yamaha produced Formula One engines from 1989 to 1997, initially for the Zakspeed team, in 1991 for

the Brabham BT60Y, in 1992 for the Jordan 192, from 1993 to 1996 for Tyrrell, and in 1997 for the Arrows

A18. These never won a race, but drivers including Damon Hill, Ukyo Katayama, Mark Blundell and Andrea

de Cesarisscored some acceptable results with them.

Automobile Engines

Yamaha has built engines for other manufacturers' vehicles beginning with the development and production of

the Toyota 2000GT (1967) with the Toyota Motor Corporation. Also, the cylinder head from the Toyota 4AGE

engine was developed by Yamaha Motor Corporation and was built at Toyota's Shimayama plant alongside the

4A and 2A engines. [6]

Some other high performance Toyota engines developed by Yamaha are the 1LR-GUE

engine found on the 2010-2012 Lexus LFA and the 2ZZGE engine found on the 1999-2006 Toyota Celica GT-

S. In 1984, executives of the Yamaha Motor Corporation signed a contract with the Ford Motor Company to

develop, produce, and supply compact 60° 3.0 Liter DOHC V6 engines fortransverse application for the 1989–

'95 Ford Taurus SHO.[7][8]

From 1993 to 1995, the SHO engine was produced in 3.0 and 3.2 Liter versions.

Yamaha jointly designed the 3.4 Liter DOHC V-8 engine with Ford for the 1996–'99 SHO. Since 2005

Yamaha produces a 4.4 Liter V8 for Volvo. The B8444S engines are used in the XC90 and S80 models. British

sportscar maker Noble also uses a bi-turbo version of the Volvo V8 in their M600.

Yamaha also tunes engines for other manufacturers, Toyota being one of them. Yamaha logos are, for instance,

found on the Toyota S engines.

Snowmobiles

In 2010, Yamaha was the only snowmobile manufacturer to use four-stroke engines across its range.[10]

In

Canada though, there are still three models that Yamaha manufactures that are still two-stroke. They are the

Bravo, VK 540 and the Venture XL. Yamaha had introduced four-strokes to their line-up in 2003, and the line-

up became four-stroke based for model year 2005. The RX-1, released in 2003, was the first performance-

oriented four-stroke snowmobile on the market. It was not, however, the first modern four-stroke snowmobile

produced. That honor belongs to Arctic Cat for their Yellowstone Special, released in 2000, which was

designed as a rental sled that could meet Yellowstone National Park's stringent emission requirement.

However, Yamaha received much criticism for its weight disadvantage when compared to similar two-

strokes, despite its fuel economy and low-range torque. Yamaha is now on the cutting edge of four-stroke

technology with the introducing of their 80FI engine, which is equipped on the Phazer and Venture Lite

models. This engine has one of the highest specific output of any four-stroke in production, with 160 HP/L,

Yamaha achieves this even without the use of a forced induction system. Yamaha is also a key player in the

"four-stroke wars", which are a series of advertisements from opponent Ski-Doo, who claim their E-tec and

power-tec equipped two-strokes are still cleaner and more efficient than four-strokes, while Yamaha still

claims the four-strokes are cleaner. Yamaha also broke a multi-year absence from sno-cross in the winter of

2006/2007 with their introduction of a factory race team headed by former Arctic Cat racer Robbie Malinoski.

Yamaha was the first brand to win with a 4-stroke in a professional snowcross race. This happened in 2006 at

the WPSA snow cross championship.

Fig. 1.3 Global Operations of Yamaha Motor Company

1.2 India YAMAHA Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. In August 2001, Yamaha India became a 100%

subsidiary of Yamaha motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an

agreement with YMC to become a joint-investor in the motorcycle manufacturing company “India

Yamaha Motor Private Limited (IYM)”.

IYM‟s manufacturing facilities comprise of 2 State-of-the-art Plants at Faridabad (Haryana) and

Surajpur (Uttar Pradesh). The infrastructure at both the plants supports production of motorcycles and

parts for the domestic as well as overseas markets. The Surajpur plant was established in 1984. The

state–of-the-art assembly plant at Surajpur was inaugurated on 6th

July‟09 and is spread over an area of

36,000 sq. mts. It has the capacity to produce 1 million motor cycles and scooters annually.

This fully integrated assembly plant is built on the lines of Yamaha‟s globally tried, tested and

successfully implemented standards and meets the global quality benchmarks. The plant has 3 vehicle

assembly lines and 4 engine assembly lines.

The Faridabad Plant was established in 1965 and was upgraded in 2008 for manufacturing of machined

parts like Gears & shafts, Crank, Clutch Assembly, Crank Case, Body Cylinder, Head Cylinder.

In April 2013, IYM established 2 functionally independent entities namely Yamaha Motor India Sales

Pvt. Ltd. (YMIS) that will cater to the sales and marketing needs of the company and Yamaha

Motor Research and Development India Pvt. Ltd. (YMRI) that is intended to increase Yamaha‟s

manufacturing competitiveness through the establishment of an R&D headquarters in India.

With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a

countrywide network of over 400 dealers. Presently, its product portfolio includes YZF-R15 Version 2.0

(150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X, SZ-R & SZ-RR (153cc), SS125 (123cc), YBR

125 (123cc), YBR 110 (106cc), Crux (106cc) and scooter Ray (113cc) and Ray Z (113cc). Its import

portfolio includes VMAX (1,679cc), YZF-R1 (998cc) and FZ1 (998cc).

Yamaha Motor India Sales Pvt. Ltd.

In April 2013, India Yamaha Motor established a functionally independent sales and marketing entity

i.e. Yamaha Motor India Sales Pvt. Ltd (YMIS).

The newly formed Yamaha Motor India Sales Pvt. Ltd. (YMIS) is intended to further strengthen the

Sales & Marketing unit which is responsible for sales & promotion, after sales service and provision of

spare parts. It has been Yamaha‟s constant endeavor to fortify its brand image and supersede customer

expectation. YMIS will continue to reinforce its relationship with the customers with its „YES!

YAMAHA! Campaign which emphasizes on providing the Best 3S Experience – Sales, Service and

Spare Parts so that the customer always appreciates Yamaha and accepts the brand like the word “YES”.

Yamaha Motor India Sales Pvt. Ltd. (YMIS) is currently responsible for the Sales and promotion of

YZF-R15 Version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X, SZ-R & SZ-RR (153cc),

SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc), Crux (106cc), Ray (113cc), Ray Z (113cc) and

Alpha (113 cc) Scooter. The import portfolio includes VMAX (1,679cc), YZF-R1 (998cc) and FZ1

(998cc).

The head office for YMIS is located in Chennai.

Yamaha Motor Research and Development India Pvt. Ltd.

Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) has been established to function as

the motorcycle R&D headquarters for Yamaha Motor Co., Japan. This initiative is intended to reinforce

the global competitiveness of Yamaha‟s engineering, manufacturing and marketing functions in India.

It was formally established on 18th

February 2013 and has been functional since 1st Apr 2013. It is

currently operating from the headquarters of India Yamaha Motor Pvt. Ltd., Surajpur. .

YMRI is the fifth overseas R&D headquarters for Yamaha Motor Group following Italy, Taiwan, China,

and Thailand.

Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) functions as the core of the

Integrated Development Center (IDC) concept. In addition to R&D activities, global part sourcing

activities have been included into the IDC. The 1st such center was established as ASEAN Integrated

Development Center in Thailand in 2012.

YMRI will contribute to Yamaha global operations by focusing on optimum utilization of Indian

resources and developing new models best suited to Indian customer requirements

Vision,Mission and the Core Competencies

Vision

We will establish YAMAHA as the “exclusive & trusted brand” of customers by “creating Kando”

(touching their hearts) – the first time and every time with world class products & services delivered by

people having “passion for customers”.

Mission

We are committed to:

Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA products,

focusing on serving our customer where we can build long term relationships by raising their lifestyle

through performance excellence, proactive design & innovative technology. Our innovative solutions

will always exceed the changing needs of our customers and provide value added vehicles.

Build the Winning Team with capabilities for success, thriving in a climate for action and delivering

results. Our employees are the most valuable assets and we intend to develop them to achieve

international level of professionalism with progressive career development. As a good corporate citizen,

we will conduct our business ethically and socially in a responsible manner with concerns for the

environment.

Grow through continuously innovating our business processes for creating value and knowledge across

our customers thereby earning the loyalty of our partners & increasing our stakeholder value.

Core Competencies

Customer #1

We put customers first in everything we do. We take decisions keeping the customer in mind.

Challenging Spirit

We strive for excellence in everything we do and in the quality of goods & services we provide. We

work hard to achieve what we commit & achieve results faster than our competitors and we never give

up.

Team-work

We work cohesively with our colleagues as a multi-cultural team built on trust, respect, understanding &

mutual co-operation. Everyone‟s contribution is equally important for our success.

Frank & Fair Organization

We are honest, sincere, open minded, fair & transparent in our dealings. We actively listen to others and

participate in healthy & frank discussions to achieve the organization‟s goals.

Chapter-2

Research methodology

2.1 Objectives of the study

To study the productive purchase operations at India Yamaha Motor Pvt. Ltd.

To study and analyze the application of the PYMAC system in the Purchase Department at India

Yamaha Motor Pvt. Ltd.

To monitor the material supplied by the vendors

To propose/suggest improvements in the existing system

2.2 Research Design

A research design is considered as the framework or plan for a study that guides as well as helps the data

collection and analysis of data. The research design may be exploratory, descriptive and experimental. The

research design employed here is of descriptive type as the research focuses on the existing purchase processes

and the MRP system used in the purchase department at India Yamaha Motor, Surajupur, Greater Noida.

This research also provides certain conclusions, recommendations and limitations during the entire course of

the training.

2.3 Research Approach

The research approach used in this study is case based. The research began with the study of the PYMAC

manual where the basics of the MRP system of India Yamaha Motor were learnt. In the next part, the

productive purchase operations were learnt from the Divisional Functional Manual (D.F.M) and finally

monitoring of the material supplied by the vendors was done for two vendors.

2.4 Sources of data

Primary data has been used for the purpose of monitoring the supplies from the vendors.

2.5 Duration of study

The duration of study is k, i.e. from 2nd

June 2014 to 26th

July 2014

2.6 Research Process

Fig. 2.1 Flowchart depicting the research process

Attached with the purchase department

after initial induction

Study of the PYMAC system from the

PYMAC manual

Study of the purchase procedures and

other formats from the Divisional

Functional Manual- Purchase

Real time monitoring of the parts

supplied by the vendors and reporting to

the supervisor

Meeting with the suppliers at the vendor

end to clear the pending stock

Chapter-3

Purchase department at India

Yamaha motor

3.1 Introduction to Purchase Department

Purchase Department provides services to all major functions of the plant. It has always strived through

meticulous care and good planning to achieve departmental objectives, which broadly aim to give the company

a competitive advantage on Quality, Cost and Delivery (QCD).

To achieve the above objective, the purchase department is divided into 4 major sections:

Part Development

Purchase Planning

Non-Productive Purchase

Productive Purchase

3.1.1 Part Development

This section mainly deals with-

Selection of alternate vendors from existing suppliers of India Yamaha Motors(IYM) for cost

reduction/capacity enhancement or quality improvement

Development of parts for variants of existing models/alternate sourcing/design change of existing

parts.

Indigenization of CKD parts.

3.1.2 Purchase Planning

This section mainly deals with budgeting, forecasting and cost control and also all purchase related MIS

preparation and presentations to the top management.

3.1.3 Non-Productive Purchase

This section mainly deals with timely ordering and procurement of all materials, paints, chemicals, oils

and lubricants, machinery spares and various other consumables used in the plant.

3.1.4 Productive Purchase

This section mainly deals with-

Scheduling and procurement for all existing direct parts as per PYMAC orders.

Spare parts procurements as per PYMAC orders.

Coordination with SQA for vendor quality issues and with the stores for logistics improvement

and control of lot size for controlling the inventory.

Liasoning with finance for settlement of vendors‟ financial issues like reconciliation/issuance of

Sales Tax forms.

3. 2 Job Rules for Productive Purchase

3.2.1 Job rule for PYMAC card delivery confirmation

Fig. 3.1 Job rule for PYMAC card delivery confirmation

3.2.2 Job rule for control and monitoring of PYMAC manual order

Fig. 3.5 Job rule for control and monitoring of PYMAC manual order

3.2.3 Job rule for controlling parts from vendor to stores

In this job rule, we have two decision points, the first one being at the initial stage where

confirmation from vendor for receiving of schedules is done. If the schedules are not received by the

vendors, then the purchase department coordinates with the IT department, if yes then we proceed to

the next step. The second decision point occurs at the time of inspection. If the quality is OK, the parts

are sent to the store locations, but if it is not, the lot is sent for segregation where the OK are parts are

sent to stores and the faulty ones are sent back to the vendors with a rejection tag.

Fig. 3.3 Job rule for controlling parts from vendor to stores

3.2.4 Job rule to ensure defect free component for assembly in case of lot rejection

This job rule is somewhat similar to the previous one. Here the Production Quality

Engineering (PQE) department intimates the purchase department about the non-conformance of parts

and necessary actions as shown in the flow chart are taken by the purchase department.

Fig.3.4 Job rule to ensure defect free component for assembly in case of lot rejection

3.2.5 Job Rule for Initiating Alternate Source

Fig.3.5 Job Rule for Initiating Alternate Source

3.3 Formats for Productive Purchase

3.3.1 Format for CKD Planning Sheet

IYM Ordering Month

YMC Production Month

CKD Order

Shipment Plan and Date

Opening Balance at IYM

Receipt at IYM

Total Receipt at IYM

Production at IYM

C.B. QTY.

In Transit

Simulation Rate

Lot Size

Fig. 3.6 Format for CKD planning sheet

3.3.2 Format for Order Confirmation Sheet

Ref. No.:

Date:

Supplier Name:

From:

SUB: Order Confirmation for CKD Production

We are pleased to confirm our CKD orders as below

Forecast

Models CKD set code

Firm order for N

month N+1 N+2 N+3 N+4

kindly send us your confirmation for the above order

Fig. 3.7 Format for Order Confirmation Sheet

3.3.3 Format for vendor selection approval- existing part

Fig. 3.8 Format for vendor selection approval- existing part

Part Name Part No.

Category

Vendor Details

Name of Vendor

Vendor Code

Existing SOB

Proposed SOB

Price per pc.

Mould cost

Annual Volume

Quality/Delivery Rating

Cost impact to IYM

Address

Reason for change/selection

Quality issue with the existing supplier

Delivery/capacity issue with existing supplier

VA/VE (Cost Down Activity)

Others (specify)

Remarks (if any)

3.3.4 Format for emergency air shipping

Fig.3.9 Format for emergency air shipping

Emergency Air Shipping

Material Description Qty.

Vendor Name Location

Estimated cost of air shipping

Cost of air shipping to be borne by IYM Vendor

Estimated time (air shipping) Estimated Time

The above material is being purchased on urgent basis due to the following reasons

Reason & Background

Machine under break-down

Urgent requirement to adjust against rejection

preventive maintenance during shut-down

Sudden requirement etc.

Others (please specify)

Remarks:

3.3.5 Format for payment of supplementary bill

Fig.3.10 Format for payment of supplementary bill

Payment of Supplementary Bill

Request No. Date

Supplementary Bills of the following vendors for releasing payment accordingly

S.No.

Part

Name Part No.

Supplementary

Invoice No. Date

Invoice

Amount

Invoice

Qty. Remarks

Chapter-4

Pymac education

4.1 A Brief Background of MRP

Material requirements planning (MRP) is a production planning and inventory control system used

to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct

MRP by hand as well.

An MRP system is intended to simultaneously meet three objectives:

Ensure materials are available for production and products are available for delivery to customers.

Maintain the lowest possible material and product levels in store

Plan manufacturing activities, delivery schedules and purchasing activities.

History

Prior to MRP, and before computers dominated industry, reorder-point/reorder-quantity (ROP/ROQ) type

methods like EOQ (Economic Order Quantity) had been used in manufacturing and inventory management. In

1964, as a response to the TOYOTA Manufacturing Program, Joseph Orlicky developed Material

Requirements Planning (MRP). The first company to use MRP was Black & Decker in 1964, with Dick Alban

as project leader. In 1983 Oliver Wight developed MRP into manufacturing resource planning (MRP

II).[1]

Orlicky's book is entitled The New Way of Life in Production and Inventory Management (1975). By

1975, MRP was implemented in 700 companies. This number had grown to about 8,000 by 1981. In the 1980s,

Joe Orlicky's MRP evolved into Oliver Wight's manufacturing resource planning (MRP II) which brings

master scheduling, rough-cut capacity planning, capacity requirements planning, S&OP in 1983 and other

concepts to classical MRP. By 1989, about one third of the software industry was MRP II software sold to

American industry ($1.2 billion worth of software).

The Scope of MRP in Manufacturing

The basic functions of an MRP system include: inventory control, bill of material processing, and elementary

scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing,

purchasing and delivering activities.

"Manufacturing organizations, whatever their products, face the same daily practical problem - that customers

want products to be available in a shorter time than it takes to make them. This means that some level of

planning is required."

Companies need to control the types and quantities of materials they purchase, plan which products are to be

produced and in what quantities and ensure that they are able to meet current and future customer demand, all

at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money.

A few examples are given below:

If company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may

be unable to meet contract obligations to supply products on time.

If a company purchases excessive quantities of an item, money is wasted - the excess quantity ties up cash

while it remains as stock and may never even be used at all.

Beginning production of an order at the wrong time can cause customer deadlines to be missed.

MRP is a tool to deal with these problems. It provides answers for several questions:

What items are required?

How many are required?

When are they required?

MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced

internally, that are components of more complex items.

The data that must be considered include:

The end item (or items) being created. This is sometimes called Independent Demand or Level “0 on BOM

(Bill of materials).

How much is required at a time.

When the quantities are required to meet demand.

Shelf life of stored materials.

Inventory status records. Records of net materials available for use already in stock (on hand) and

materials on order from suppliers.

Bills of materials. Details of the materials, components and sub-assemblies required to make each product.

Planning Data. This includes all the restraints and directions to produce the end items. This includes such

items as: Routing, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push

commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, Economic Order Quantity), Scrap

Percentages, and other inputs.

Outputs

There are two outputs and a variety of messages/reports:

Output 1 is the "Recommended Production Schedule" which lays out a detailed schedule of the required

minimum start and completion dates, with quantities, for each step of the Routing and Bill Of Material

required to satisfy the demand from the Master Production Schedule (MPS).

Output 2 is the "Recommended Purchasing Schedule". This lays out both the dates that the purchased items

should be received into the facility AND the dates that the Purchase orders, or Blanket Order Release

should occur to match the production schedules.

Messages and Reports:

Purchase orders. An order to a supplier to provide materials.

Reschedule notices. These recommend cancelling, increasing, delaying or speeding up existing orders.

Fig. 4.1 MRP Layout

Problems associated with MRP systems

First problem with MRP systems is the integrity of the data. If there are any errors in the inventory data,

the bill of materials (commonly referred to as 'BOM') data, or the master production schedule, then the output

data will also be incorrect ("GIGO": Garbage In, Garbage Out). Data integrity is also affected by inaccurate

cycle count adjustments, mistakes in receiving input and shipping output, scrap not reported, waste, damage,

box count errors, supplier container count errors, production reporting errors, and system issues. Many of these

type of errors can be minimized by implementing pull systems and using bar code scanning. Most vendors in

this type of system recommend at least 99% data integrity for the system to give useful results.

Second problem - systems is the requirement that the user specify how long it will take for a factory to make a

product from its component parts (assuming they are all available). Additionally, the system design also

assumes that this "lead time" in manufacturing will be the same each time the item is made, without regard to

quantity being made, or other items being made simultaneously in the factory.

A manufacturer may have factories in different cities or even countries. It is not good for an MRP system to

say that we do not need to order some material, because we have plenty thousands of miles away. The

overall ERP system needs to be able to organize inventory and needs by individual factory, and inter-

communicate the needs in order to enable each factory to redistribute components, so as to serve the overall

enterprise.

This means that other systems in the enterprise need to work properly, both before implementing an MRP

system and in the future. For example, systems like variety reduction and engineering, which makes sure that

product comes out right first time (without defects), must be in place.

Production may be in progress for some part, whose design gets changed, with customer orders in the system

for both the old design, and the new one, concurrently. The overall ERP system needs to have a system of

coding parts such that the MRP will correctly calculate needs and tracking for both versions. Parts must be

booked into and out of stores more regularly than the MRP calculations take place. Note, these other systems

can well be manual systems, but must interface to the MRP. For example, a 'walk around' stock intake done

just prior to the MRP calculations can be a practical solution for a small inventory (especially if it is an "open

store").

The other major drawback of MRP is that takes no account of capacity in its calculations. This means it will

give results that are impossible to implement due to manpower or machine or supplier capacity constraints.

However this is largely dealt with by MRP II.

Generally, MRP II refers to a system with integrated financials. An MRP II system can include finite / infinite

capacity planning. But, to be considered a true MRP II system must also include financials.

In the MRP II (or MRP2) concept, fluctuations in forecast data are taken into account by including simulation

of the master production schedule, thus creating a long-term control.[3]

A more general feature of MRP2 is its

extension to purchasing, to marketing and to finance (integration of all the functions of the company), ERP has

been the next step.

Solutions to Data Integrity issues

Bill of material - The best practice is to physically verify the bill of material either at the production site or by

un-assembling the product.

Cycle count - The best practice is to determine why a cycle count that increases or decreases inventory has

occurred. Find the root cause and correct the problem from occurring again.

Scrap reporting - This can be the most difficult area to maintain with any integrity. Start with isolating the

scrap by providing scrap bins at the production site and then record the scrap from the bins on a daily basis.

One benefit of reviewing the scrap on site is that preventive action can be taken by the engineering group.

Receiving errors –

Manual systems of recording what has been received are error prone. The best practice is to implement the

system of receiving by ASN from the supplier. The supplier sends an ASN (Advanced Shipping Notification).

When the components are received into the facility, the ASN is processed and then company labels are created

for each line item. The labels are affixed to each container and then scanned into the MRP system. Extra labels

reveal a shortage from the shipment and too few labels reveal an over shipment. Some companies pay for ASN

by reducing the time in processing accounts payable.

Shipping Errors –

The container labels are printed from the shipper. The labels are affixed to the containers in a staging area or

when they are loaded on the transport.

Production reporting –

The best practice is to use bar code scanning to enter production into inventory. A product that is rejected

should be moved to an MRB (material review board) location. Containers that require sorting need to be

received in reverse.

Replenishment –

The best replenishment practice is replacement using bar code scanning, or via pull system. Depending upon

the complexity of the product, planners can actually order materials using scanning with a min-max system.

Manufacturing Resource Planning (MRP II)

Manufacturing resource planning (MRP II) is defined as a method for the effective planning of all resources of

a manufacturing company. Ideally, it addresses operational planning in units, financial planning, and has a

simulation capability to answer "what-if" questions and extension of closed-loop MRP.

This is not exclusively a software function, but the management of people skills, requiring a dedication to

database accuracy, and sufficient computer resources. It is a total company management concept for using

human and company resources more productively.

Key Functions & Features

MRP II is not a proprietary software system and can thus take many forms. It is almost impossible to visualize

an MRP II system that does not use a computer, but an MRP II system can be based on either purchased–

licensed or in-house software.

Almost every MRP II system is modular in construction. Characteristic basic modules in an MRP II system

are:

Master production schedule (MPS)

Item master data (technical data)

Bill of materials (BOM) (technical data)

Production resources data (manufacturing technical data)

Inventories and orders (inventory control)

Purchasing management

Material requirements planning (MRP)

Shop floor control (SFC)

Capacity planning or capacity requirements planning (CRP)

Standard costing (cost control)

Cost reporting / management (cost control)

Together with auxiliary systems such as:

Business planning

Lot traceability

Contract management

Tool management.

Engineering change control

Configuration management

Shop floor data collection

Sales analysis and forecasting

Finite capacity scheduling (FCS)

and related systems such as:

General ledger

Accounts payable (purchase ledger)

Accounts receivable (sales ledger)

Sales order management

(Distribution requirements planning) (DRP)

Automated warehouse management

Project management

Technical records

Estimating

Computer-aided design/computer-aided manufacturing (CAD/CAM)

CAPP

The MRP II system integrates these modules together so that they use common data and freely exchange

information, in a model of how a manufacturing enterprise should and can operate. The MRP II approach is

therefore very different from the “point solution” approach, where individual systems are deployed to help a

company plan, control or manage a specific activity. MRP II is by definition fully integrated or at least fully

interfaced.

Fig. 4.2 Manufacturing Resource Planning (MRP II) Layout

Material requirements planning (MRP) and manufacturing resource planning (MRPII) are both incremental

information integration business process strategies that are implemented using hardware and modular software

applications linked to a central database that stores and delivers business data and information.

MRP is concerned primarily with manufacturing materials while MRPII is concerned with the coordination of

the entire manufacturing production, including materials, finance, and human relations. The goal of MRPII is

to provide consistent data to all players in the manufacturing process as the product moves through the

production line.

Paper-based information systems and non-integrated computer systems that provide paper or disk outputs

result in many information errors, including missing data, redundant data, numerical errors that result from

being incorrectly keyed into the system, incorrect calculations based on numerical errors, and bad decisions

based on incorrect or old data. In addition, some data is unreliable in non-integrated systems because the same

data is categorized differently in the individual databases used by different functional areas.

MRPII systems begin with MRP, material requirements planning. MRP allows for the input of sales forecasts

from sales and marketing. These forecasts determine the raw materials demand. MRP and MRPII systems

draw on a master production schedule, the breakdown of specific plans for each product on a line. While MRP

allows for the coordination of raw materials purchasing, MRPII facilitates the development of a detailed

production schedule that accounts for machine and labor capacity, scheduling the production runs according to

the arrival of materials. An MRPII output is a final labor and machine schedule. Data about the cost of

production, including machine time, labor time and materials used, as well as final production numbers, is

provided from the MRPII system to accounting and finance (Monk and Wagner).

Benefits

MRP II systems can provide:

Better control of inventories

Improved scheduling

Productive relationships with suppliers

For design / engineering:

Improved design control

Better quality and quality control

4.2 PYMAC @ YAMAHA Whenever we talk of PYMAC, we need to know everything about it, right from the basics. The whole PYMAC

education is divided into following categories:

Introduction

BOM structure

Basic of the Item Key

Basic of Inventory

Code Structure

Introduction

Like many other manufacturing companies, India Yamaha Motor also uses indigenously developed MRP

system which they call as PAN YAMAHA Manufacturing Control or the PYMAC. It is an MRP system that

connects Yamaha Motor Company with its subsidiaries all over the world and with the suppliers as well.

Fig 4.3 PYMAC system

It isquite evident from the figure that how Yamaha Motor Company (YMC) uses PYMAC to coordinate with

its subsidiaries in other nations as well as its vendors all over the world. Any dispatch of material or parts

from the vendor end is updated by the vendors in this system and when the material reaches the Yamaha

premises, it is updated in the database and the information is available to te purchase department for further

use. How this happens is discussed in the subsequent chapters of this report.

Before I go any further in this chapter, I would like to explain a very important component of the PYMAC

system- the PYMAC cards. Knowledge of PYMAC cards is a must to understand the whole PYMAC system.

These are the cards which contain all the information about the parts and the material being sent to the Yamaha

plant and are of four types:

1. Delivery Slip

This slip will be issued to the vendor at the time of MRP run

for 15 days. This slip will be scanned at the time of receipt

of material which subsequently will update the stocks on real

time. This slip contains all the details regarding the supplier,

the user, quantity of the material delivered, delivery date,

item number and order number.

Fig. 4.4 Sample for Delivery Slip

2. Receipt Card

This slip is an acknowledgement of the delivered material

and it will be provided to the vendor as a proof that the

vendor has delivered that particular material. This card

also contains the same details as the delivery slip.

Fig 4.5 Sample for Receipt Card

3. Inspection Report

This is the card for Quality Assurance judgment. This card contains, along with others, the details regarding

the quality of the material delivered. This card help helps the workers and the vendors to know the level of

quality and take decisions on whether to accept or reject the material.

Fig. 4.6 Sample for Inspection Report

4. Complete report

This card is basically a compilation of all the other three cards and contains all the details of the delivery slip,

receipt slip and the inspection report. This will be used when production is complete for the desired order

number and has to be entered in the system.

Fig. 4.7 Sample for Complete Report

B.O.M Structure

Bills Of Material (B.O.M) structure for the PYMAC module is based on the manufacturing group. For

example, if we wish to produce a motor cycle with model number 2S2700 which has two different colors with

model numbers 2S2700-010A for color A and 2S2700-010B for color B, then for colored motorcycle, similar

operations will be performed at a single spot on the assembly line. It is very clear from the figure below that,

for both the colors, engine operations are performed at one spot and the body group operations are performed

on another spot.

Fig. 4.8 BOM structure for PYMAC-III

Item Key Structure

The item key in a PYMAC module is a

combination of the item number, supplier code and the

user code. In the item number, details about the model

type, classification number, revision number and color

number is given. The S/U code provides information

about the originating and the terminating points of the

material flow.

Fig. 4.9 Procedure for developing Item Key Structure

Inventory Control

In the PYMAC module, we have a two point

reporting system, where the real time inventory,

along with the inventory in transfer can be

checked. Once the receipt report is provided to the

vendor, the same is updated at P/F (a place where

the parts are received). From the platform, these

parts are then supplied to the work center where

the manufacturing processes take place. From the

work centers, the finished goods are the.

Fig. 4.10 Inventory Control procedure at Yamaha transferred to the Stock-Point or the S/P (a place

where finished goods are stored). When the goods

are in transit, they are scanned as soon as they

leave the work centers. In this way, a two point

reporting takes place and we can have an access to

the real time inventory as well as the inventory in

transit.

PYMAC-III Code Definition

The following tables clearly illustrates various codes for different item types, item class and item status.

Fig. 4.11 PYMAC-III code definition

Code Structure

Policy for the SU code setup (SJP)

This code is used to indicate the function that is to be

performed on the material. It is a 4-digit code where the

first digit is classified into three types- “in-house shop”,

“local vendor” and “overseas procurement”. The second

digit is classified according to the producing functions,

e.g. assembly, machining, painting etc. and the third and

the fourth digits are taken as the continued numbers. By

default, Surajpur factory shop has the digit for the

Fig. 4.12 Supplier/User (SU) Code of In-House

in-house shop as “nine” and the 3rd

digit as “zero”. For example, if in a PYMAC schedule, the S/U code is

given as 9101, then it means that the particular assembly shop of the Surajpur factory for body assembly. Other

S/U codes for in-house shop of the Surajpur factory are shown in the table below.

Policy for Platform (P/F) setup (SJP)

This code is used to indicate the platform

where the material has to be received once it

enters the Yamaha premises. It is a

combination of four alphabets and numerals.

The first character is “P” which is the initial

character for platform. The second one is a

digit and is same as the 2nd

digit of the

corresponding SU code.

Fig. 4.13 Platform (P/F) Codes for PYMAC-III

The third one is the 4th

digit of that same SU code and the fourth character comprises of letters from A-Y for

Surajpur plant and numbers from 0-9 for Faridabad plant.For example, a platform code “P11A” would mean

that the SU code for the same is 9101, and the mentioned platform is “Body Assembly” area in the Surajpur

plant for big/medium parts. Other PF codes along with their SU codes are given in the table below.

Policy for Stock-Point (S/P) setup for work center

This code is used to indicate the location where the

finished goods will be stored once they come out

from the respective work centers. It is a combination

of four alphabets and numerals. The first character is

“S” which is the initial character for Stock-Point.

The second one is a digit and is same as the 2nd

digit

of the corresponding SU code. The third one is the

4th

digit of that same SU code and the fourth

character comprises of letters from A-Y for Surajpur

Fig. 4.14 Stock Point (S/P) Codes for PYMAC-III plant and numbers from 0-9 for Faridabad plant.

4.3 Purchase Procedures @ INDIA YAMAHA MOTORS

4.3.1. Gate Entry Invoice

1. Open the PYMAC Launcher

2. From the IC menu, select “Gate Entry Invoice Checklist Retrieval”.

3. Choose class, gate, date, kind of list and data type.

4. Hit “Retrieve”.

5. A dialog box will open giving the details about which material has been shipped to Yamaha on

that particular date.

Fig. 4.15 Screenshot showing IC Menu in the main PYMAC Menu

Fig. 4.16 Screenshot showing Gate Entry Invoice Option in the IC Menu

Fig. 4.17 Screenshot showing the Gate Entry Invoice details

4.3.2. Before Shipment Order Retrieval (details about the pending quantity)

1. Open the PYMAC Launcher.

2. From the IC menu select “Before Shipment Order Retrieval”.

3. Choose the extraction period.

4. If we wish to get details about a particular supplier, we select the “Supplier Code”

5. .If we wish to get details about a particular list of suppliers which we deal with, we enter our

own person code (it was 32 in my case).

6. Hit retrieve.

7. Right click within the dialog box.

8. Select “save as” and save it as an excel file.

9. Monitor from the supply and the inventory from these excel files.

Fig. 4.18 Screenshot showing IC Menu in the main PYMAC Menu

Fig. 4.19 Screenshot showing Before Shipment Order Retrieval in the IC Menu

Fig. 4.20 Screenshot showing the Before Shipment Order Details for a particular supplier

Fig .4.21 Screenshot showing the Before Shipment Order Details for a particular person

Fig. 4.22 Screenshot showing the procedure to save Before Shipment Order Data

Fig. 4.23 Screenshot showing the procedure to save Before Shipment Order Data

4.3.3 Order Retrieval (used to check order details of a particular part)

1. Open the PYMAC Launcher.

2. From the MRP menu select “Order Retrieval”.

3. Enter the Item Number and the supplier code.

4. Click on “Retrieve”.

5. Details about the order will be displayed.

# If complete item number is unknown, we can enter partial item number, then right click and then select

values list. A list of part numbers starting from 54B(say) will be displayed. Select the required part and hit

Retrieve.

Fig. 4.24 Screenshot showing the MRP menu in the main PYMAC menu

Fig. 4.25 Screenshot showing the Order Retrieval details

Fig. 4.26 Screenshot showing the procedure to retrieve parts list when part no. is unknown

Fig. 4.27 Screenshot showing the part list with part no. starting from 54B

4.3.4 Y-Com system for suppliers (to issue delivery cards)

1. Open internet explorer or any other browser.

2. Enter the given link.

3. Enter the Login Id and password

4. From the list provided select the user name and password of the desired supplier.

5. Go to parts ordering system.

6. Go to Order and Delivery.

7. Select Delivery Card Reprint.

8. Enter a valid date.

9. Click on Download to download the delivery cards.

Fig. 4.28 Screenshot showing the home page of Yamaha Communication System

Fig. 4.29 Screenshot showing Parts Ordering System among other options

Fig. 4.30 Screenshot showing the Main Menu of Parts Ordering System

Fig. 4.31 Screenshot showing the components of the Order and Delivery

Fig. .4.32 Screenshot showing the process of reprinting the delivery cards

Chapter-5

Daily operations @ Yamaha

Introduction

This chapter details about the work done in the last two weeks of the summer internship. In the second last

week i.e. from 14th

July 2014 to 20th

July 2014, I attended meetings with two of the suppliers, Hemsons

Engineering and J.L.Auto Parts, one in Faridabad and the other one in Noida. These meetings were organized

in order to take commitment from the suppliers about the pending orders till 31st July 2014.

In the last week i.e. from 21st July 2014 to 26

th July 2014, I had to monitor the supplies from Hemsons

Engineering with supplier code 3814 and Nicks India Tools with supplier code 3823, and report to my

supervisor The whole data regarding the pending orders and amount of raw material and parts provided by

these vendors from 21st July 2014 till 25

th July 2014 is provided in the form of excel sheet.

This data was directly taken from the PYMAC software twice a day, once in the morning and once in the

evening and reported to the supervisor. The excel sheets comprise of the details like the Item name, Item

number, supplier code, platform code, order number, indicated quantity, remaining quantity etc.

As soon as the material is received at the gate and is updated in the “Gate Entry Invoice” of the PYMAC

system, the excel files automatically get updated depending upon the order size.

For example, if the indicated quantity of a particular order is 200 units and the supplier dispatches only 100,

then this part will be shown in the excel file, but if the supplier dispatches 200 units for the same order, then

this part gets automatically removed from the excel files.

To explain the thing better, the whole data is shown as the snapshots of the original excel files in the next

few pages of this chapter.

Pending orders for Hemsons Engineering as on 14th

July up to 30th

July 2014

Table.1 Pending orders for Hemsons Engineering as on 14th

July up to 30th

July 2014

Pending orders for J.L.Auto as on 14th

July up to 30th July 2014

Table 2 Pending orders for J.L.Auto as on 14th

July up to 30th

July 2014

Shipment details for Hemsons Engg.

Table 3 Order details of Hemsons Engg. On 21st july morning

Table 4 Order details of Hemsons Engg. On 21

st july evening


nd july morning

Table 6 Order details of Hemsons Engg. On 22nd

july evening

Table 7 Order details of Hemsons Engg. On 23rd

july morning


rd july evening


th july morning


th july evening

Shipment details for Nicks India Tools

Table 13 Order details of Nicks India Tools. On 21

st July morning


st July evening


nd July morning


nd July evening


rd July morning


rd July evening


th July morning


th July evening


th July morning

Table 22Order details of Nicks India Tools. On 25

th July evening

Chapter-6

Conclusion, recommendations &

Limitations

6.1 Conclusion

The current PYMAC system, PYMAC-III, used by YAMAHA is a complete MRP system which

provides services like inventory control, gate entry invoice checklist, pending orders, PYMAC card

printing etc. for the vendors

This system also provides the Bills Of Materials (BOM) structure, the supplier-user codes, the platform

codes and also helps in developing the item code structure for a particular component.

The PYMAC cards contain every information about a particular order like which part is being supplied

and in what number , where and by whom it is supplied, on what platform it is supposed to be

unloaded, whether the inspection is required or not etc.

With the help of PYMAC, Yamaha is able to establish a hassle free network of its vendors and is trying

to educate them so that they become self-reliant in printing the PYMAC cards and PYMAC orders.

The Divisional Functional Manual- Purchase consists all the job rules which are to be performed by the

Purchase Executives, e.g. selecting an alternate vendor, to ensure defect free component for assembly,

for new part procurement etc. along with the specified formats for CKD planning sheet, Emergency Air

Shipping etc.

The PYMAC software used in the Purchase department is easy-to-use software where from the data

about the orders can be downloaded and the suppliers can be contacted accordingly.

India Yamaha Motor gives purchase orders to its vendors indicating the requirements for the next 75

days and this MRP is generated twice a month

The suppliers that I worked upon during 21st July- 25

th July 2014 were Hemsons Engg. based in

Faridabad and Nicks India Tools based in Ludhiana. These suppliers could not provide the requisite

material as specified to them to be delivered in this duration.

6.2 Recommendations

In the gate entry invoice retrieval of PYMAC-III, it was observed that the material received in the

morning was, sometimes not even updated till evening. This lead to a mismatch in the inventory levels

of different shop floor and at the vendor end. This problem could be solved easily by fastening the

process of updating the material entry.

More stress could be given on vendor training so that they can print and understand the PYMAC

purchase order and the PYMAC cards. Whenever they fail to do so, the managers in the purchase

department get compelled to provide the suppliers with a manual Purchase Order, thereby taking a lot

of extra time.

One of the features in the PYMAC system is that, if we download the material entry data from the

PYMAC system for a particular vendor and a particular part is supplied as per the order, then that part

gets automatically removed from the PYMAC system thereby creating confusion. It would have been

much easier to understand, if instead of erasing the whole data, the remaining quantity field be made

zero.

6.3 Limitations

Due to its round the clock production, there are no live projects as such in Yamaha, so number

crunching was not possible to a greater extent and only a study could be conducted.

Working in the purchase department was a bit tough, as it was difficult to engage with the supervisor

due to his busy schedules.

As a company policy, confidential data was not revealed so as to maintain privacy standards and details

of only 4 suppliers were revealed in the last week of my training.

Due to a lag in updating the data of the material received at the gate, it happens sometimes that the

material received in the morning was, sometimes not even updated till evening. Allotted time frame

was not sufficient to record the data of all the suppliers.

Bibliography

Online sources:

1. www.yamaha-motor-india.com/about/profile/index.html

2. www.yamaha-motor.com/corporate/home.aspx

3. www.wikipedia.org/wiki/Yamaha_Motor_Company

4. www.wikipedia.org/wiki/Material_requirements_planning

5. www.wikipedia.org/wiki/Manufacturing_resource_planning

Books:

1. Operations Management- Processes and Value Chain 8th

Edition by Lee Krajewski

2. Marketing Research- An Applied Orientation 6th

Edition by Naresh K Malhotra

Offline Sources:

1. Divisional Functional Manual- Purchase

2. PYMAC-III Official Manual

Data Resources:

1. Real-time data from the PYMAC Software

Appendix

(A) Abbreviations Used in Purchase Department

S.No. Abbreviation Abbreviation Detail

1. Addl. Additional

2. Al. Aluminum

3. AM Assistant Manager

4. AMC Annual Maintenance

5. ASSY Assembly

6. AVO Avoid Verbal Order

7. AVP Associate Vice President

8. AWB Air Way Bill

9. BRG Bearing

10. BL Bill of Lading

11. BOM Bill Of Material

12. BOP Brought Out Parts

13. CAT Category

14. CST Casting

15. C&F Cost & Freight

16. CDI Control Document Index

17. CFT Cross Functional Team

18. CGM Core Group Meeting

19. CGM Chief General Manager

20. CKD Completely Knocked Down

21. C/M Counter Measure

22. CZP Claim Zero Product

23. DA Dispatch Advice

24. DEPTT Department

25. DFM Divisional Functional Manual

26. DGM Deputy General Manager

27. Dim. Dimensional

28. Div. Division

29. DOL Direct On Line

30. DR Design Revision

31. Drg. Drawing

32. DRM Department Review Meeting

33. ELE Electricals

34. ER Engg. Release

35. Est. Estimation

36. FBD Faridabad

37. FIFO First-In First-Out

38. FIN Finance

39. FOB Free-On Board

40. FOC Free of Cost

41. GPM General Procedure Manual

42. GR/LR/RR Goods/Lorry/Railway Receipt

43. GRA Graphics

44. HOD Head of Deptt.

45. H/W & SP Hardware & Spring

46. FOR Free On Rail

47. IE Industrial Engg.

48. IOM Inter Office Memo

49. IT Information Technology

50. LC Letter Of Credit

51. LOI Letter Of Intent

52. MAN COM Mgmt. Committee Meeting

53. Matl. Material

54. MCM Monthly Closing Meeting

55. MDF Marine Declaration Form

56. ME Mfg. Engg.

57. MFG Manufacturing

58. Min. Minimum

59. MIS Mgmt. Information System

60. MKT Marketing

61. MOM Minutes Of Meeting

62. MOQ Minimum Order Quantity

63. MR Mgmt. Representative

64. MRN Material Receipt Note

65. MRP Material Requirement Planning

66. NC Non-Conformance

67. NCR Non-Conformance Report

68. NP Non-Productive

69. NP PUR Non-Productive Purchase

70. ODR Outside Development Report

71. OE Original Equipment

72. OMP Own Manufactured Parts

73. OSP Outside Processing

74. P/I Performa Invoice

75. Part Dev. Part-Development

76. PDIR Pre-Delivery Inspection Report

77. PE Purchase Enquiry

78. PECM Prodn. Executive Committee Meeting

79. PED Prodn. Engg. Deptt.

80. PFB Product Feedback

81. PLA Plastics

82. PPMT Projects & Production Management

83. PP DRG Purchase Purpose Drawing

84. PPC Prodn. Planning & Control

85. PEM Plant Engg. & Maintenance

86. PR Purchase Requisition

87. Prod. PUR Productive Purchase

88. Prodn. Production

89. RPQ Request for Quotation

90. PROP Proprietary

91. Pt. Point

92. PUR Purchase

93. PUR PLNG Purchase Planning

94. PLNG Planning

95. PCS Price Conformation Sheet

96. PDS Price Decision Sheet

97. P & SA Purchase & Supply Assurance

98. QA Quality Assurance

99. QCD Quality, Cost & Delivery

100. QCD TM Quality, Cost, Delivery, Tech. & Mgmt.

101. QE Quality Engg.

(B) Supplier Codes

S. No. Supplier Code Supplier Name

1. 3807 AMTEK Auto Ltd.,

2. 3809 ATOP Products Pvt. Ltd.

3. 3814 Hemsons Engg. , Faridabad

4. 3816 Indoschottle, Pune

5. 3817 J.L. Auto, Noida

6. 3819 Kalson Auto Faridabad

7. 3822 Micro Turner, Rohtak

8. 3823 Nicks India Tools, Ludhiana

9. 3827 Raunaq Auto, Gajrola

10. 3830 Sadhu Forging, Faridabad

11. 3832 Saroj Engg. Faridabad

12. 3839 Warm Forging , Bhiwadi

13. 3841 Micro Turner, Gurgaon

14. 3843 Varroc Engg. , Auranagabad

15. 3847 Raunaq Auto, Noida

16. 3849 Reva Auto, Delhi

17. 3850 Sansera Engg., Bangalore

18. 3855 Hitachi Chemicals, Rajasthan

(C) Item Code/ Part Code

Hemsons Engineering (3814)

S. No. Part Code Part Name

1. 1CKE2156000080 SHAFT,ROCKER 2

2. 1CKF5186000080 COLLAR,WHEEL

3. 1CKF5386000080 COLLAR,SPROCKET

4. 1GCE2146000080 SHAFT,ROCKER 1

5. 1GCE2662000080 COLLAR

6. 1GCE4638000080 COLLAR,1

7. 1GCE5521000080 SHAFT,1

8. 1GCE5598000080 COLLAR

9. 1GCE5659000080 SHAFT

10. 1GCE7412000080 BRG.,1

11. 1GCE7645000080 COLLAR

12. 1GCF4727000080 PIN,SEAT FITTING

13. 1GCF7121000080 BUSH.

14. 1GCF7254000080 HOOK

15. 1SDE2257100080 SHAFT,2

16. 1SDE5372000080 COLLAR,UNION

17. 20PF5377000080 COLLAR,SHAFT

18. 20PF7435000080 BOLT

19. 21CE2156000080 SHAFT,ROCKER 2

20. 21CE5521000080 SHAFT,1

21. 21CE7258000080 COLLAR,1

22. 21CF1414000080 BOSS,ENGINE

23. 21CF1422000080 TUBE,BRKT. CROSS

24. 21CF510C100080 COLLAR ASSY.

25. 21CF530S100080 COLLAR ASSY.

26. 38BE5521000080 SHAFT,1

27. 38BE7258000080 COLLAR,1

28. 54BE7258000080 COLLAR,1

29. 54BE8115000080 ROD,SHIFT

30. 54BF1422000080 TUBE,BRKT. CROSS

31. 54BF1545000080 COLLAR,2

32. 54BF2123000080 BUSH.,1

33. 54BF2126000080 COLLAR,DISTANCE

34. 54BF5183000080 COLLAR,WHEEL

35. 54BF5377000080 COLLAR,SHAFT

36. 54BF5386000080 COLLAR,SPROCKET

37. 54BF7112000080 SHAFT

38. 54BF7231000080 ROD,BRAKE

39. 5DGH2516000080 COLLAR,MAIN

40. 5KAE1167000080 PIPE,BREATHER 2

41. 5KAE1445000080 SPACER

42. 5KAE3586100080 JT.,CARBURETOR 1

43. 5KAF3448100080 SPACER

44. 5REE7258000080 COLLAR,1

45. 5REF5183000080 COLLAR,WHEEL

46. 5TSF7231000080 ROD,BRAKE

47. 5USE5521000080 SHAFT,1

48. 5YYE7258000080 COLLAR,1

49. 5YYF2126000080 COLLAR,DISTANCE

50. 5YYF511X000080 COLLAR SET

51. 5YYF7231000080 ROD,BRAKE

52. 90109082020080 BOLT

53. 90170208010080 NUT,HEX.

54. 90173068060080 NUT,SQUARE

55. 90179068060080 NUT

56. 90179068350080 NUT

57. 90179128000080 NUT

58. 90179162260080 NUT

59. 90179250020080 NUT

60. 90179256150080 NUT

61. 90179258120080 NUT

62. 90249120080080 PIN

63. 90387060230080 COLLAR

64. 90387067V10080 COLLAR

65. 90387158100080 COLLAR

66. 90387208130080 COLLAR

67. 90560121380080 SPACER

68. 93605068000080 PIN,DOWEL

69. 93612162540080 PIN,DOWEL

Nicks India Tools (3823)

S.No. Part Code Part Name

1. 20PF6121000080 HANDLE, LH.

2. 20PF6122000080 HANDLE, RH.

3. 21CE5620000080 KICK CRANK ASSY.

4. 36LE5611000080 CRANK,KICK

5. 54BE5620000080 KICK CRANK ASSY.

6. 5DGE5621000080 BOSS,KICK CRANK

7. 5KAE5620100080 KICK CRANK ASSY.

8. 5YYE5620100080 KICK CRANK ASSY.

(D) Model Code

S. No. Model Name Model No. Production on

1. R 15 1CK

Line A

2. Crux 5KA

3. YBR-110 5TS

4. Gladiator 35B

5. YBR-135 5YY

6. SZR 1PM

7. FZ-S 21CH

Line B 8. FZ-16 21CG

9. Fazer 45SB

10. Scooter 1GC Line C

yamaha india

Documents

order details of hemsons

shipment order retrieval

order confirmation sheet

yamaha india

purchase department

purchase planning

nonproductive purchase

pymac system