PP-Business Blue Print

Submitted

By

Patni Computer Systems, Inc.

Feb 28th 2005

Document History:

DateRevisionChange

28-Feb-050.01DCreated

28-Feb-051.0Baseline

Table of Contents

4Sales and Operation Planning

5Monthly Operation Plan

6Weekly Plan & Daily Scheduling

6Availability check for capacity & raw materials

6Cracker & grinder Planning & Execution

7Autoclave Batch & process order Creation

8Autoclave Processing-Process Management

8Blending of batches

11Pre-refiner Batch creation

11RTSLAB Production on Mixing Mill

11Grade wise segregation in Manufacturing

12Finished goods Posting

12Customer wise Packaging

13Capacity Planning

14Finished goods, Master Recipe

15Dispatch Scheduling

15Rejection & rework

16Customer Returns

17Sample order processing

Long term Planning

AS IS: The plan for the next fiscal is budgeted. Sales plan for the next year is finalized and as per that the production plan is prepared. The available capacity is checked and then the feasible plan is derived. All the resources, manpower and raw material requirement are planned.

TO BE:Production plan for the next year is entered in the long term planning. LTP is run on this plan. The LTP plan is a simulation plan and uses the operative master data. There can be different scenario created in LTP.These scenarios can be compared and best plan can be finalized.

GAPSales and Operation Planning

AS IS:

Sales Plan is prepared for next five years (Quarterly) on a rolling basis. Sales plan for the next four quarters is derived from the customers orders, projections & sales history for the fiscal. Sales plan is based on the continuous feedback from the market and the major customers and past sales. Monthly sales plan is released in the last week of the previous month. Monthly Operation plan is directly proportional from Sales plan, there is no Minimum Inventory level or Targeted stock level for the finished products except poly-cot where minimum inventory is 3 ton. Planned V/s actual is monitored on weekly basis. The shortfalls or spillovers may be carried forward to the next months sales plan based on decision taken by the sales team. MOP undergoes lot of revisions in the month. But all these changes are verbally communicated. There is no formal revision document for MOP. Man-hours (Capacity) and raw material is planned based on the MOP. Raw material planning is done considering the stock on hand, the expected consumption and the minimum inventory once in a month.

The capacity varies whenever there is change in the Recipe, process and the resources (Machines). This is reviewed on monthly basis and the same is considered before finalizing the sales plan. The priorities and the urgent orders (local & export) are communicated to Production by sales department. If there is a change in priority the production plan (for the month) is not changed, but materials department is verbally communicated. The recipe and schedule, however could change based on RM availability. If there is a change in the quantity of sales plan, then production plan is revised.

TO BE:

Sales plan will be entered into SOP, there will 2 weeks fixed and 4 weeks rolling plan. Production Plan will be generated automatically from SALES plan. There will be targeted stock for some finished products to take care of the grade wise production variations, otherwise production plan will be proportional to the sales plan. For WTR planning Patta recipe is taken as the base recipe. Rough cut planning profile for the bottleneck capacity will be maintained and capacity, cost feasibility of plan can be checked with respect to that. Week wise production plan is transferred from SOP to Demand management.

GAP:As standard information structure S076 in Sales and operation planning supports only planning in monthly bucket. We need to create a new planning type and information structure to take care of the weekly rolling plan.

Monthly Operation PlanAS IS:

The total production plan is same as the sales plan except Polycoat where the minimum stock of approximately 3Ton is maintained. Sales plan is always more than the possible production by 10-15 %. Week wise Production plan is sent across to sales and the head office by production. If there are any changes in the plan required by sales then same are incorporated in the final plan. Final week wise production plan is released in the last week of the previous month. The raw material plan is finalized based on the stock on date, minimum inventory and the likely consumption. The weekly priorities are mentioned against the material requirements. The changes in plan are verbally communicated to the purchasing department. Most of the procurement is carried out by head office, but there is some procurement like packing materials is done locally. The shift wise production plan is communicated through production logbook.

There are five grades of F.G. produced from WTR reclaim. The Grade-wise breakup of WTR is as: -

GR-SF

15%

GR-555/Block/HT45%

GR-444

32%

GR-333

1.5%

RT-Slab

6.5%

But the grade-wise percentage keeps on varying due to the following reasons: -

Nature of Batch

Sales Plan (Demand)

Raw Materials Availability

If there are high sales requirements of individual grades it is fulfilled by reducing the percentage of superior grades (done at the time of refining). For example the maximum of GR-555 that can be produced is 60% (45% + 15%). In case of direct production the production rate changes.

TO BE:Based on the demand management plan the material requirements planning will be run. The MRP run will be scheduled every fortnight. The requirements for raw materials and in-house materials will be automatically generated. MRP will be re- run whenever there are major changes in the plan.

There will a different Finished goods number for the direct production of grades like GR-444.

GAP:

Possibility of giving Quota arrangement based on production versions is to be checked.

Weekly Plan & Daily Scheduling

AS IS:Based on the priorities in the internal orders the weekly plan is generated. The daily plan is derived from the weekly plan. The shift wise plan is communicated to production supervisor through logbook communication

TO BE:

Demand management plan will be a fortnightly rolling plan and a production plan for 4-6 weeks will be always available. The planning will be done in weekly bucket. The day wise plan will be derived from the weekly scheduling

Availability check for capacity & raw materials

AS IS:The raw material availability check takes place before commencing the production as per the monthly operations plan. If there is some shortage in the materials then alternative recipe is used. There is no capacity check-taking place before commencing the production process.

TO BE:

The Availability check takes place at the time of Release of Process Order.

Cracker & grinder Planning & Execution

AS IS:The planning of cracker is done based on the availability of the raw material. There are multiple recipes for the cracked material. Cracked material is stored and then taken for grinding as and when required. The planning of Grinder is done based on the availability of cracked material. There are multiple recipes for the ground material.

TO BE:

Planning for the cracker raw material is done on some common recipe, which will be created for planning all the raw material types.

The dependent requirements of the Material requirement planning will be generated based on the alternative BOM and recipe.

GAPS:

Possibility of giving Quota arrangement based on production versions to be checked

Autoclave Batch & process order Creation

AS IS:Autoclave batches are planned based on the daily plan derived from the weekly plan. The unique batch number is assigned to every batch. The decision of "which recipe is to be used?" for every batch is taken by the Production foreman and is communicated to the supervisors on line.

TO BE:

MRP generated planned order for Autoclaved material to be converted to the process order and while creating process order Batch should be generated automatically. The batch number will depend on the line of production and the finished product number. As per the following convention: -

F.G. TypeAutoclave batchFinal Batch

WTRWT00001MW00001

BTBT00001MB00001

Poly Coat-PG00001/PE00001

CHTCHT00001MC00001

EPDMEP00001ME00001

NRNT00001MN00001

TRP20-TR20001

TRP30-TR30001

TRP40-TR40001

BTI888-BTI0001

BTA777-BTA0001

RTSLAB-RT00001

At the time of creation of process order, alternative BOM will be selected which will have a different production version.

GAPS:

Creation of automatic batches as per the alphanumeric batch number needs a workaround and will involve USER EXITS.Autoclave Processing-Process Management

AS IS:The processing parameters like the heating time and temperatures are noted down and are entered in the FOXPRO system against individual batch no.

TO BE:

At the time of confirmation of process order, all the process information will be fed to the system against the batch number.

Blending of batches

AS IS:Based on the Quality of the autoclave batch, the batches are mixed in the pre-refining stage. The batches can be Good, dry or sticky. Dry and sticky batches are mixed to balance If the pre-refiners are going empty then single batch of autoclave can also be processed in Pre-refining, if it is a good batch.

TO BE:

The Autoclaved batches will be stored in a separate storage location with the Quality remark. The batches will be issued the batch of finished good depending on which batches are blended.

Pre-refiner Batch creation

AS IS:The batches of autoclaved material are blended in the Pre-refining stages. The autoclave batches reference is given to the finished goods batch. The same batch is tracked till it gets packed

TO BE:

The finished goods batch will have a different batch number and the autoclave batches should be attached to this batch. The batch number will be different and will have a different logic based on material and production line

GAP:

Some workaround will be needed to take care of the blending of the batches and the Batch numbering logic.

RTSLAB Production on Mixing MillAS IS:There is one grade RTSLAB that is not forwarded ahead with the entire batch. The last tailing from each WTR batch production is accumulated and then it is processed in mixing mill. A separate batch number is given to the RTSLAB batch production.

TO BE:

The Last tailings from each WTR batch for RTSLAB production are stored at a storage location. This is later issued to a RTSLAB order for processing on the mixing mill.

Grade wise segregation in Manufacturing

AS IS:In case of WTR production, Different grades of WTR are taken out from refiners. These grades are stacked separately and batch number is written on the trolleys or pallet.

TO BE:

In case of WTR production, GR-555 will be treated as main product and other products like GR-444, GR-333, GR-SF, and RTSLAB will be co-products. There will be process orders created for the Co-products when we create a process order for the main product. The quantity will be as per the Bill of Material defined for the main product.

Finished goods Posting

AS IS:The grade wise production is inspected in a inspection area, where every sheet of rubber undergoes checking. There can be grade wise transfer of material at this stage. The final grade wise production is confirmed at this stage. For all reporting purpose these production figures are considered.

TO BE:

After the batch of production is offered for quality inspection. 100% checking and grade wise segregation of the sheets are done. A batch wise tracking of the production is to be done till the last stage. The finished goods posting is done based on the 100% inspection of the finished goods grades. Based on the finished goods posting the batch wise yield & scrap will be entered.

GAPS:

Customer wise Packaging

AS IS:The finally separated production is moved to the packaging area with a batch number. The packaging is done as per the customer requirement, which is specific for customers and is communicated to Production through internal orders.

TO BE:

After the grade wise inspection and segregation the finished good will be moved to packaging area. Customer wise packaging will be planned on the basis of weekly plan and the sales order. The packaging material will be issued to production as per the requirement. The stores will issue the goods to the packaging cost centre. The cost centre will be defined based on the customer.

There are two options: -

1. Issue the packing material to the cost centre without having them in the BOM. The cost centre will be created for export, domestic and other major customers.

2. We can have standard packing group in the BOM and while process order confirmation the actual material will have to be entered. This will ensure the batch wise costing.

Capacity Planning

AS IS:Capacity for all the work centers is defined and standard. The capacity for cracker, grinder & refiners varies depending on the condition of the roller. The rollers are generally replaced when the output rate of these machines goes below 90%. Whenever there is change in the capacity of certain work centre due to addition of equipments or change in recipe, the same is considered while making a plan for next production cycle. The capacity is taken into consideration while making a sales plan. The reduced capacity of the resources due to machine wear and tear is not considered while making the Monthly operations plan.

TO BE:

The capacity of the resources will be reserved with the creation of orders dynamically. This will give the actual capacity availability. With the expansion the master data will be updated to increase the standard available capacity. The list of resources is as: -

1. Washing & De-beading

2. Cracker

3. Hammer Mil

4. Grinder

5. Autoclave

6. Pre-refiner

7. Strainer

8. Refiner

9. Mixing Mill

10. Packaging

GAP: The capacity change to roller wear and tear can be handled by

Following means

a) Average out the available capacity

b) Change the master data i.e. utilization factor whenever there is change in capacity.

c) Varying capacity change need to be explored in Plant maintenance module.

Finished goods, Master Recipe

AS IS:There are 26 different finished goods stocked and sold as different entities. There are alternative methods of production based on different raw materials. The total numbers of existing recipes are 21 numbers. There are events such as materials produced on certain finished product number does not fit into that customers quality specifications. This material is sold to some other customer on a different material number. The finished products are stored as C-O1, C-O2 & C-03 based on the quality result for that batch. There are different customers for C-O1, C-O2 & C-03 grades.

TO BE:There will be 26 Finished Goods and the number of recipes before and after Autoclave will be 65. The finished goods will be moved to different materials based on Usage decision at the QM Inspection recording. Based on the Quality Result the grade wise finished products will be stored into three storage locations C-01, C-02 & C-03. The sales will do the delivery from these storage locations. The list of Finished Goods is as: -

1. GR-SF

2. GR-555

3. GR-444

4. GR-333

5. RTSLAB

6. GR-555 (Continental)

7. HT-555

8. GR-101

9. GR-555 (Block)

10. GR-444 (Direct)

11. BT-999

12. BTA-777

13. BTI-888

14. EP-101

15. T-1010

16. 777G

17. 777E

18. TRP30

19. TRP40

20. NF30

21. NF20

22. CHT-100 (COLOR)

23. CHT-100

24. FKM100

25. DRAB

26. TP-555

There will a single multi level bill of material for all the finished goods. But the master recipe will be defined in three components, Autoclave ready, Autoclaved material and finished goods.

The material number logic for semi finished and finished material is to be decided.

GAP:

STANDARD SAPDispatch Scheduling

AS IS:Daily dispatches are scheduled based on the plan given by the sales and the internal orders. The QC passed available material fulfills the Customer wise requirement of C-01 and C-02.

TO BE:

The dispatch scheduled will be based on the requested delivery date in the Sales order.

Based on the Quality Result the grade wise finished products will be stored into three storage locations C-01, C-02 & C-03. The sales will do the delivery from these storage locations.

Rejection & rework

AS IS:There is no scrap generated in Ankleshwar plant except the strainer head. There are some process losses due to evaporation. The total loss (including strainer head) amounts to 4% approximately. Sometimes the autoclave batches may have to rework due to under cooking of rubber. Then the entire Autoclave process is repeated.

For all practical purposes the grade wise yield for the raw material is as: -

WTR

96.08%

BT

96.80%

NR

96.16%

EPDM

94.58%

Poly coat

97%

Crumb Rubber98%TO BE:

There will be actual confirmation of scrap per batch by Quality control. This will be done after the 100% inspection of the batches. For this quality has to get the grade wise weight of all the co-products generated in WTR process. The remaining quantity of the batch will be booked as scrap. The scrap percentage can vary from batch to batch.

For reworking or reprocessing a separate order type will be defined.

A generic Master recipe and Bill of material will be maintained for reprocessing and reworking. Manual process orders have to be created for the rework or reprocessing. The recipe and BOM need to modify as per the actual usage of materials and resources.

Customer Returns

AS IS:Customer returns are due to Low Quality, wrong delivery & late delivery as per the customer. The returned goods undergo Lab test. The returns are either reprocessed or repacked.

Repack: -

Existing packing is scrapped

New Packing (Customer Specific)

Grade remains same

TO BE:Customer returns will be stored in a separate storage location of finished goods. There will be a separate order type for the processing customer return. There will be a generic master recipe and bill of material defined. As per the resources and materials used the Master recipe for the Manual process order need to be modified.

Standard SAP

Sample order processing

AS IS:Samples are dispatched to various customers as per the requirement. It varies from 5 kg to 100 Kg. Samples are taken out of the stock available in WIP. Separate inspection records are maintained for the individual samples.

TO BE:

Sample orders processing needs a different Process order type. There will be generic Master recipe and BOM for the samples. The process order will be created manually.

The Master recipe and BOM will be changed as per the actual utilization of resources and material.

Standard SAP

Job order processing

AS IS: Job orders are for customer-supplied material. The material received is processed by GRRPL and the final product is sold to the customer. All other processing parameters remain same.

TO BE:

There will be separate Process order type for the Job orders. A separate Bill of material and Master recipe needs to be maintained for the finished products that are produced from the customer supplied material. The job orders will be processed on the basis of sales order. For job orders the planning strategy will be make to order.

Reporting Requirements: Weekly, Monthly reports for Production

- Standard SAP reports

Yield per ton consumption

- ABAP Query to be developed

Batch wise cost of production

- Standard SAP

Packing material consumption.

ABAP Query to be developed

Machine wise, shift wise output

Standard SAP report

GRRPL SAP IMPLEMENTATION

BUSINESS BLUE PRINT DOCUMENT

PRODUCTION PLANNING

1

PAGE 2