Nov 17, 2009

Nov 15, 2009

Q n A: Purchase Value in SAP

Asked by Shivaji Dhumal on 2/16/2009 3:25 AM
Hi dear,
Can you please tell me how to get purchase value for the month for a
particular purchase group.
We have in our Company about 10000 materials for which 3 different groups do
the purchasing.
Each has to work out the saving made during the month on purchases. For
working out the saving
in percentage, one has to work out the cost of purchases during the month,
which is based on
actual receipts of materials.
Thank you,
Dhumal SD

A:
General LIS Analyses (MM-PUR)
Technical name: SAP_MM_PUR_LIS_GENERAL
Tasks
This role covers activities allowing you to analyze purchasing operations within your enterprise.
Possible questions that might be asked include the following: What is the order value placed by a certain purchasing group? Which materials and how much of them have been ordered from a certain vendor? What is the number of PO items for a material group?
Activities in Materials Management
Activity
Transaction

Purchasing group analysis
MCE1

Vendor analysis
MCE3

Material group analysis
MCE5 ...

==============

I will be reproducing some of the questions answered by me on different forums.
Request to go through, Correct where ever necessary, Add, suggest, improve.

Just interact for the benefit of all of us.

Best Regards,
Sharma

Sep 13, 2009

101 Common-Sense Rules for Leaders

Boost your management skills by getting back to the basics — here are some common sense tips for leading an effective team.

Management is all about connecting with the people on your team. So how do you effectively manage a team? With common knowledge, of course. These are a few back-to-basics rules that will help you develop management skills that really matter.
BODY LANGUAGE
Like it or not, your body speaks volumes, even when you are silent. Here's how to express an attitude that's appropriate for a leader.
1. Stand tall. Keeping your shoulders back and holding yourself up to your full height will give you an air of confidence.
2. Take your hands out of your pockets. Putting your hands in your pockets is often seen as a sign that you have something to hide.
3. Stand with your arms crossed behind your back. This will help you adjust your posture, and it leaves your hands in a position that is open and not intimidating.
4. Make eye contact. Always look directly into the eyes of the people you are speaking with. This shows you're interested and also gives you a sense of confidence.
5. Sit up straight. Even if you're at an 8 a.m.meeting and feeling tired, it's important to sit up straight in your chair. Slouching makes you look disinterested and can give off an unwanted air of laziness.
6. Face the person you're talking to. This shows you are interested and engaged in the conversation.
7. Shake hands firmly. For many, a handshake is a reflection of the person you're shaking hands with. You don't want to come across as unsure or overbearing, so make sure yours is professional and confident.
8. Always smile. Smiles are contagious and will make others feel positive when you're around.
9. Look your best. You don't have to be model perfect every day, but you should dress appropriately and neatly. Clothes can have a big impact on the way you're perceived.
10. Walk confidently. Keep your head up and take even strides.
MEETING DEADLINES
No one will be happy if your team has to rush around at the last minute to complete a project. Follow these tips to make deadlines less stressful for everyone.
11. Only promise what you can realistically deliver. Don't create deadlines that you know you can't meet. By only promising what you know you can do, you'll be able to finish on time.
12. Set clear goals. Once you know what you need to accomplish, it helps to know how and when you want to do it. Put your goals down on paper and make sure everyone on your team gets a copy.
13. Organize a team. Many of your employees will have unique strengths and training that can make them great assets to certain projects. Pick a team that has the right skills to carry out the job.
14. Delegate tasks. Spread work among your employees in a way that doesn't leave anyone overburdened while also allowing the project work smoothly.
15. Create milestones. Creating milestones for you and your team will help you keep track of your progress and also give you a sense of accomplishment as you reach each milestone.
16. Keep communication open. Keeping everyone in touch with the status of the project is key to making sure it's completed on time.
17. Do it right the first time. Planning ahead will help prevent you from delivering a substandard product. Having to redo something for a client costs money, and, more than likely, future business opportunities.
18. Stay organized. Staying organized will help keep you from wasting time chasing down important documents and information.
19. Make sure expectations are clear. Be sure that each member of your team knows what their specific responsibilities are. This will save time and prevent tasks from being overlooked.
20. Create a plan. Compile your goals and milestones into a comprehensive plan for attacking any project you are given. This way, you can make sure you're staying on schedule and that all of your employees will be clear about how and when things should be done.
GETTING ALONG WITH EMPLOYEES
A happy office is a productive one. Everyone will be more cheerful if you follow these simple rules.
21. Don't make your employees come in on days they're normally not scheduled to work or call them while they're on vacation. A surefire way to make employees resent you is to invade their personal time for nonpressing work. Unless you have something that absolutely has to be done, let time away from work stay that way.
22. Don't play favorites. Playing favorites can bias your judgment and impair your leadership abilities. Treat your employees equally.
23. Give credit when it's due. Don't take credit for your employees' ideas or hog their limelight. This action not only fosters resentment but also makes you seem untrustworthy.
24. Don't micromanage. While it's fine to keep up with what your employees are working on, don't constantly look over their shoulders.
25. Never discuss employee matters with their co-workers. This kind of gossip always gets back to the person and will make you look unprofessional.
26. Don't interfere with employees' work. If your employees are getting work done, don't stress about how it gets done. Even if it's not being done they way you'd do it, it's best to let employees use their best judgment.
27. Don't push unreasonable deadlines. You don't want to spend all of your time at the office, and neither do your employees.
28. Keep your promises. Barring some catastrophic event, you should always keep promises you make to employees, especially about pay and benefits.
29. Keep work about work. Don't require employees to run your personal errands. Take care of your own personal business or hire an assistant.
30. Reward hard work. Make sure your employees feel valued for the work that they do. Employees will be more willing to put in extra effort if they know it's noted and appreciated.
31. Provide motivation. Sometimes employees need a morale boost. Provide them with encouragement to get a project rolling.




MANAGE YOURSELF
Being a good manager isn't just about what you can encourage other people to do, it's also about managing your own performance.
32. Be accessible. Don't hole up in your office all day — come out and visit with your employees. Let them know that they can always come to you with problems and concerns.
33. Be open to constructive criticism. It may not always be what you want to hear, but listening to constructive criticism gives you the chance to learn and grow from your mistakes.
34. Accept responsibility. Part of being the boss is accepting responsibility for the mistakes of all that you manage, not just your own.
35. Know there's always room for improvement. No matter how good you think you are, your job can always be done better. Always be willing to learn.
36. Improve your skills. Learning is a lifelong process. You're never too old to take a class or ask a co-worker to help you improve your knowledge.
37. Explain things simply. Don't use big words or technical jargon just to sound smart and impress others. Your employees will understand and perform better if you explain simply and clearly what you need.
38. Instruct rather than order. You may be the boss, but you don't have to be bossy. You'll have more success if your requests are more tactfully delivered.
39. Include your staff in your plans. Don't make your work top secret; let your employees know what's going on and how they are expected to contribute.
40. Know your subordinates' jobs. You don't want to be caught with inferior job knowledge.
41. Be flexible. It's fine to be firm in what you expect, but allow for flexibility in how it gets done.
42. Get regular feedback. Your employees and superiors can give you valuable feedback on how to improve your performance. Use this to your advantage.
43. Know your limitations. You can't be everywhere doing everything all at once. Know the limits of your time and abilities and say no to things you know you can't do.
BOOSTING PRODUCTIVITY
Getting the most out of your day can be difficult with a busy schedule, but you can use these tips to help you maximize your time in order to be better available to employees.
44. Get the most out of meetings. Be organized and prepared for meetings to increase effectiveness and time savings.
45. Focus your energy on things that matter. Don't let trivial tasks take time away from things that are really important.
46. Identify your time-stealers. Everyone has little things that detract their attention and make them lose focus. Figure out what these are and work to eliminate them, if only for a few hours a day.
47. Be punctual. Being on time is a big deal. Never keep people waiting for appointments or meetings if you can help it.
48. Respond to your correspondence within a reasonable amount of time. You don't have to be chained to your inbox, but make sure you respond to emails within a few hours whenever possible.
49. Do only what is necessary. There are times when going above and beyond works, but doing so on a daily basis can derail your progress on more important issues. Get the key things done first, then see if you have time for additional things.
50. Stick to schedules and routines. While they may not be the most exciting things, schedules and routines can help streamline and improve your productivity.
51. Organize and manage your schedule. Use any tools and utilities you have at your disposal to prioritize your day and keep track of what you need to get done.
52. Plan more than you think you can do. While this may sound stressful, it can actually be a great motivator. If you manage to get everything done, you'll enjoy a great sense of achievement.
53. Get to work early on occasion. Sometimes an uninterrupted half hour in an unoccupied office can help you get key things done or allow you to plan your day before there are any distractions to slow you down.
54. Know that sometimes stress is good. While too much of anything, especially stress, can be bad, sometimes a little stress can be the motivation to get you moving, allowing you to get more done.
55. Do your least favorite tasks first. Get your most tedious and least desirable tasks out of the way earlier in the day. After that, everything else will be a breeze.
MANAGING FINANCES AND RESOURCES
Whether you're a business owner or a manager, staying on top of tangible items is vital to success. These tips can help you keep track.
56. Set up a realistic budget. While it's good to be optimistic, don't plan for more spending than you know you can afford. Make sure you plan for emergencies and contingencies as well.
57. Save costs where they matter the most. Don't just pinch pennies for the present. Make sure your savings will pay off in the long run. Compromising on quality might cost you later on in repairs and replacements.
58. Spend only when it's necessary. Don't spend if you don't need to. Every bit you save goes toward your profit.
59. Find alternative sources of finance. Sometimes even successful businesses need a little help. Business loans and investors can help you through leaner times.
60. Stay true to your contracts. Not only will you gain the respect of your clients, you'll also avoid legal battles that can be a serious financial drain.
61. Make sure employees are well compensated. Employees deserve to be rewarded for hard work. Make sure yours are well compensated for their time and they'll be more productive and happier to come to work.
62. Learn to do more with less. Quality is much more important than quantity, so make what you have count.
63. Assign equipment wisely. While it might be nice for every employee to have a PDA, budgets often don't allow for such conveniences. Make sure the employees that need tools the most have access to them.
64. Invest in solid technology. This doesn't always mean the latest technology, but what your office needs to do work effectively.
65. Update when necessary. Using obsolete equipment and programs can really slow you down. Update when it makes sense so you won't get left behind by competitors.
66. Don't be wasteful. Every sheet of paper, paper clip and pen is a cost on your budget. Use materials wisely and don't waste them out of haste or carelessness.
COMMUNICATING WITH CLIENTS
Whether you're a business owner or a manager carrying out a project, one thing is always the same: The client is dominant voice in decision-making. Learn to communicate with them effectively and you'll set a good example for the people you supervise.
67. Remember that the customer is the boss. At the end of the day, your job is to make the customer happy. Act accordingly.
68. Differentiate your products. Don't get lost in a sea of products and services like yours. Make sure you stand out from your competitors.
69. Retain customers as much as you recruit new ones. While you always want to bring in new business, it's very important to maintain relationships with loyal customers.
70. Provide effective channels of communication. Make sure your clients can contact you easily and quickly if they have a problem, concern or question. They can also provide a valuable source of feedback.
71. Maintain customer data. Use this data to make your customers feel special by remembering occasions like birthdays and anniversaries. It's also helpful for keeping track of purchasing preferences.
72. Segment your customers. Not all customers are alike. Divide your customers into groups that allow you to provide attention and services that meet each customer's unique needs.
73. Provide effective after-sales services. Don't let contact fall off after the work is complete. Make sure your client stays happy.
74. Listen attentively. Pay attention to exactly what clients are asking for to help you better meet their needs.
75. Don't be afraid to say you don't know. It's OK not to know the answer to every question. It's better to say you don't know and get back to a customer than to try to bluff your way through a conversation and have to backtrack later.
KEEP UP WITH CHANGE
There is no way to stop the world from changing, so follow these tips to keep up and ahead of the game.
76. Don't fight change. You can't stop markets, trends and technology from changing, so learn to go with the flow.
77. Adopt a predictive managerial style. Don't wait for things to happen to make a move. Anticipate problems and provide contingency plans.
78. Test your contingency plans. Waiting for disaster to strike is a dangerous way to find out if your emergency plans will hold. Test them out from time to time to fine-tune them and make sure they're still relevant.
79. Identify the positives. Even the most negative changes can have positive aspects to them. Being able to identify and maximize them can help make adapting less painful.
80. Be quick to adapt. Learn to adapt to changing situations quickly and be able to change plans on the spur of the moment if the situation requires it.
81. Stay tuned to external factors. Your business is affected in many ways by outside factors. Keep abreast of these so you can anticipate any sudden market changes that would affect how you need to manage.
82. Put in place a Research and Development plan. Encourage innovation and creativity to stay ahead of the demand for newer and better products and services.
83. Keep an eye on the competition. Don't let the competition get the best of you. Keep up-to-date with what they're doing and use it to your advantage in managing your business.
RESOLVING PROBLEMS
Whether problems are internal or external, they can make your management duties a nightmare if you don't handle them correctly. Here's how to stay on top of them.
84. Stand up for employees. If other departments or managers are bearing down hard on your employees, stand up for them.
85. Fix what's broken. Don't waste time placing blame. Take care of fixing the problem before dealing with any possible repercussions.
86. Manage and control your emotions. Don't let anger or frustration affect your problem resolution. If you are emotionally invested in a situation, cool down before discussing it or bring in an outside mediator.
87. Learn when to step in. Some problems might resolve themselves if you just let them be, but you need to be aware of times where you'll need to step in and take control of a situation.
88. Take the blame. If you've made a mistake, fess up. It'll give you more time to work on fixing the problem instead of talking your way out of taking the rap.
89. Get the facts first. Before you pass judgment on a situation, make sure you have the whole story. Listen to employees and refrain from questioning anyone's integrity without first ensuring that you've gathered all the data.
90. Rise above the crisis. Learn to separate yourself from the problem and rise above the fray. You'll be able to think more clearly and make a better decision on how to rectify the issue.
91. Don't ignore problems. A small problem can easily snowball and become something much more difficult to fix.
92. Try to depersonalize problems. Let employees know that the problem isn't with them but with their actions. Don't make it personal.
GO ABOVE AND BEYOND
Managing people isn't just about getting the job done. To truly be a great leader, sometimes you need to go above and beyond what the job calls for.
93. Lead by example. You can talk until you're blue in the face, but the best way to get a point across is to be the model to emulate. Let employees follow your lead.
94. Get your hands dirty. Sometimes you need to show your employees that no one's above doing unattractive tasks.
95. Make a difference to your employees. Don't just be a generic manager — stand out as a leader and role model for your employees.
96. Gain your employees' trust and respect. You'll have a much easier time managing employees when they respect your rules and boundaries and trust your leadership.
97. Be empathetic to personal problems. Whether it should or not, what happens outside of work can have a big affect on the quality of work produced. Be sensitive if employees have personal issues that keep them from concentrating on work.
98. Be unique as a manager. Every position demands something different and you should be proud to be adept at your particular role rather than trying to emulate other managers.
99. Remember that ethics matter above all. Be honest and reliable in all of your business and personal relationships.
100. Be on the lookout for new ideas. You never know where your next great inspiration will come from.
101. Get to know your employees. Learn more than just their names. Get to know your employees' family backgrounds, likes and dislikes. Doing so will make you more personable.

Sep 12, 2009

Sep 9, 2009

Azim Premji at the “Shaping Young Minds” interactive workshop



organised jointly by the All India Management Association and the Bombay Management Association.

The funny thing about life is that you realise the value of something only when it begins to leave you. As my hair turned from black, to salt and pepper and finally salt without the pepper, I have begun to realise the importance of youth. At the same time, I have begun to truly appreciate some of the lessons I have leant along the way. I hope you will find them useful when you plan your career and life.


The first thing I have learnt is that we must always begin with our strengths. From the earliest years of our schooling, everyone focuses on what is wrong with us.


There is an imaginary story of a rabbit. The rabbit was enrolled in a rabbit school. Like all rabbits, it could hop very well but could not swim. At the end of the year, the rabbit got high marks in hopping, but failed in swimming. The parents were concerned. They said, "Forget about hopping. You are good at it anyway. Concentrate on swimming.” They sent the rabbit for tuition’s in swimming. And guess what happened? The rabbit forgot how to hop! As for swimming, have you ever seen a rabbit swim? While it is important for us to know what we are not good at, we must also cherish what is good in us. That is because it is only our strengths that can give us the energy to correct our weaknesses.

The second lesson I have learnt is that a Rupee earned is of far more value than five found. My friend was sharing with me the story of his eight year-old niece. She would always complain about the breakfast. The cook tried everything possible, but the child remained unhappy. Finally, my friend took the child to a supermarket and bought one of those ready-to-cook packets. The child had to cut the packet and pour water in the dish. After that, it took two minutes in the microwave to be ready. The child found the food to be absolutely delicious. The difference was that she had cooked it! In my own life, I have found that nothing gives as much satisfaction as earning our rewards. In fact, what is gifted or inherited follows the old rule of come easy, go easy. I guess we only know the value of what we have if we have struggled to earn it.

The third lesson I have learnt is that no one bats a hundred every time. Life has many challenges. You win some and lose some. You must enjoy winning. But do not let it go to the head. The moment it does, you are already on your way to failure. And if you do encounter failure along the way, treat it as an equally natural phenomenon. Don't beat yourself for it or any one else for that matter! Accept it, look at your own share in the problem, learn from it and move on. The important thing is, when you lose, do not lose the lesson.

The fourth lesson I have learnt is the importance of humility. Sometimes, when you get so much in life, you really start wondering whether you deserve all of it. This brings me to the value of gratitude. We have so much to be grateful for. Our parents, our life partner, our teachers and our seniors have done so much for us that we can never repay them. Many people focus on the shortcomings, because obviously no one can be perfect. But it is important to first acknowledge what we have received. Nothing in life is permanent but, when a relationship ends, rather than becoming bitter, we must learn to savour the memory of the good things while they lasted.

The fifth lesson I learnt is that we must always strive for excellence. One way of achieving excellence is by looking at those better than ourselves. Keep learning what they do differently. Emulate it. But excellence cannot be imposed from the outside. We must also feel the need from within. It must become an obsession. It must involve not only our mind but also our heart and soul. Excellence is not an act but a habit. I remember the inspiring lines of a poem, which say that your reach must always exceed your grasp. That is heaven on earth. Ultimately, your only competition is yourself.

The sixth lesson I have learnt is never give up in the face of adversity. It comes on you suddenly without warning. One can succumb to self-pity, wring your hands in despair or decide to deal with the situation with courage and dignity. Always keep in mind that it is only the test of fire that makes us find steel. A friend of mine shared this incident with me. His eight-year-old daughter was struggling away at a jigsaw puzzle. She kept at it for hours but could not succeed. Finally, it went beyond her bedtime. My friend told her,” Look, why don't you just give up? I don't think you will complete it tonight. Look at it another day.” The daughter looked with a strange look in her yes, "But, dad, why should I give up? All the pieces are there! I have just got to put them together!” If we persevere long enough, we can put any problem into its perspective.

The seventh lesson I have learnt is that while you must be open to change, do not compromise on your values. Mahatma Gandhi often said that you must open the windows of your mind, but you must not be swept off your feet by the breeze. You must define what your core values are and what you stand for. And these values are not so difficult to define. Values like honesty, integrity, consideration and sensitivity have survived for generations. Values are not in the words used to describe them, as much as in the simple acts. A wise man once said, "You do not have to change the world to make a difference. If, on the way to your house, you can bring a smile on the face of a crying child, you have done your bit.” At the end of the day, it is values that define a person more than the achievements. Because it is the means of achievement that decide how long the achievements will sustain. Do not be tempted by short cuts. The short cut can make you lose your way and end up becoming the longest way to the destination.

And the final lesson I learnt is that we must have faith in our own ideas even if everyone tells us that we are wrong. There was once a newspaper vendor who had a rude customer. Every morning, the customer would walk by, refuse to return the greeting, grab the paper off the shelf and throw the money at the vendor. The vendor would pick up the money, smile politely and say, "Thank you, Sir.” One day, the vendor's assistant asked him, "Why are you always so polite with him when he is so rude to you? Why don't you throw the newspaper at him when he comes back tomorrow?” The vendor smiled and replied, "He can't help being rude and I can't help being polite. Why should I let his rude behavior dictate my politeness?"


So it is, my young friends, with all of us. In my youth, I thought of myself as a rebel and was many times, a rebel without a cause. Today, I realise that my rebellion was another kind of conformity. We defied our elders to fall in line with our peers! Ultimately, we must learn to respond instead of reacting. When we respond, we evaluate with a calm mind and do whatever is most appropriate. We are in control of our actions. When we react, we are still doing what the other person wants us to do.

I wish you all the best in your life and career. I hope you achieve success in whatever way you define it and what gives you the maximum happiness in life. Remember, those who win are those who believe they can.

Jun 17, 2009

PRACTICAL EXPERIENCE

I have some queries regarding APICS-CSCP certification...

I am working in a software company in Chennai.... Currently i have 1.9 months experience....I would like to get into supply chain management...
I worked in SCM project for 1 year.... So i know a bit about SCM functionalities.... That project created an interest for SCM....

Am i eligible to appear for APICS-CSCP certification exam???
I saw APICS website that people should have 2 years relevant experience in SCM to be eligible.... Can you please advise me on this???

Is it possible for me to get a job in SCM by doing these certifications alone???

I would like to get into SCM by any cost....Can you pls suggest me some ways to get into SCM???

Your suggestions would be a great help for me and highly appreciated.....

Thanks in advance....

Regards,
Syed.
============
From APICS Site
+++++++++++++++++++++++++++++++
APICS The Association for Operations Management Certification Program
Certified Supply Chain Professional
The APICS CSCP (Certified Supply Chain Professional) is the first globally recognized comprehensive certification program designed for supply chain management professionals. The APICS CSCP designation is the first and only global supply chain credential accepted by the world’s top manufacturers.
By earning the APICS CSCP designation you:
 Validate your ability to create and execute supply chain strategies that meet customer needs and increase profits
 Increase your professional value to employers
The APICS CSCP program addresses the entire supply chain—extending past your internal operations—from your suppliers, through your company, to your end customers.
Is APICS CSCP Right for You? Earning an APICS certification can take you from a qualified candidate to a sought-after expert. Around the world, APICS certification designees are recognized, promoted, hired, and paid more.
Especially in today's growing and changing supply chain management field, to maintain your competitive edge, you must continuously increase your knowledge, skills, and expertise. Stay competitive with the APICS Certified Supply Chain Professional certification.

What is the APICS CSCP?
The APICS CSCP brings your company's entire value chain into perspective. By giving you a truly end-to-end view of the supply chain, you become the expert, not just within your organization's walls—you become the global expert.
From manufacturing to service, in business and consumer markets, the increasingly important role of effective supply chain management affects all organizations. Customer expectations are high—with the APICS CSCP, you can ensure that your company not only meets, but exceeds them.

Who are APICS CSCP Designees?
• Professionals seeking in-depth knowledge and understanding of their entire supply chain.
• Employees hoping to boost productivity and collaboration.
• Innovators promoting global supply chain management.
• Managers working to affect lead time, inventory, productivity, and the bottom line.
• Hard workers trying to move forward in their careers.
++++++++++++++++++++++++++++++++++++++++++++++++++++++
My Answer to your question:

I think you have 1year 9months experience.
One year in SCM project.
A project experience and practical domain experience differs.
Project experience under guidance of a project manager, along with other senior colleagues you worked in more of a comfort Zone.
You know how to create a purchase order in the system in an AC room, but the pain behind identifying the vendor, getting the prices, negotiating the terms, getting approved, placing order, follow-up to get it on time, delivery at the right place, getting inspected, approval, goods receipt note preparation, actual issue, accounting, invoice verification, payment etc has to be experienced in practical.
Knowing concept is one thing, applying it in different situations is altogether it is different.
It is not difficult, but one has to experience to know it better and better it further.
Flight navigation you know, you can work in a simulator your self but when it comes to actual flying ………..
You know what I mean to say.
This is the reason any professional course stipulate some practical experience before taking up the course.
When you worked in a factory in SCM area, you will better appreciate what course is talking about.
You can relate subject to your applicability, you will ask more yourself why like this? Why not like this? Otherwise you accept what it says, you read, get thru the certification.
The actual difference you find when you want to apply.
Your will is what is most important. SCM jobs are very hard, tiresome.
Unless you enjoy what you do it is difficult path. A passion for SCM is required in this profession.
As already you are in the job, please do concentrate more on to SCM projects, get involved, move around the factories, what is happening in your projects and practically in the ship floor, relate why we are doing what we are doing for example a purchase request comes from shop floor, enquiry generated by a purchase executive, cost analysis done by a cost accountant, final order authorized by a GM. It may be completely different in another industry.
According to the need of the factory or project you are in you try and translate in to the system.
Where as if you are person involved in SCM you design and implement the system how a document has to flow, how a purchase has to take place. You advice the project personnel how you would like the software to behave in a given situation, the project person exactly do what you want which is called customization.
Getting into SCM is not difficult. But only SCM job may not pay you as much SCM with Software implementation experience can.
So stick on to the job you are in, try and do this course. If you got admission fine, otherwise better to wait and do after gaining more experience.
Meanwhile I suggest you to see the website of IIMM (Indian Institute of Materials Management).
There are some courses which may interest you, this qualification plus software project experience will definitely place you in better position than only getting in SCM.

May 27, 2009

PRACTICE MAKES PERFECT


This is a collection from one of my friend, which I would like to share with you all as there is a perfect message for us.
--------

All record breaks concentrate on the previous performances... that's why
everyone achieves better not the best...

If sky is the limit, then no one is
our competitor...

let me say one incident..

A boy in a mathematics class
fell asleep, at the end of the class when he saw the blackboard, there was a
problem for assignment. Waking guiltily, he copied the sum and went home.. For
the whole night he worked out... worked out and worked out.. He found a
solution..

Next day when he showed this to the master, everyone and the
master of course wondered.. because master has ended the class by saying no
one has found a solution for this puzzle..Hence no one in the class tried.. as
this boy is unaware of this fact, he worked out and found the
solution..Miracle happened...

May 12, 2009

WEBSITES ON SAP FOR REFERENCE AND HELP

http://help.sap.com

http://sap.com

http:// sap.com/education

http://sap.com/srm

http://service.sap.com/maintenance

http://service.sap.com/rkt-solman

http://service.sap.com/roadmaps

http://service.sap.com/servicecatalog

http://service.sap.com/solutionmanager

http://service.sap.com/support service

http://service.sap.com/sweat

www.toolbox.com

www.masteringsap.com

www.mySAP.com

www.sap_img.com

www.sap_press.com

www.sapgenie.com

www.sapmm001.htm

www.sapresources.com

www.sapteched.com

www.service.sap.com/supportacademy

Mar 16, 2009

SOME MODULES IN SAP

This insertion is to give a bit of clarity to the people who are interested to know about the modules in SAP.  Lot of aspiring people who want to learn SAP, ask which module is better for me, which is more lucrative in the terms of getting in to a job and more payment.

The Answer is simple.  The best suited module for you is the experience in which domain you have and where you want to nurture your career.

Each and every module is important in relation to any Enterprise. No one can say that for me only my production, sales and distribution are important and we do not care about plant maintenance or warehouse management.

More fetching may be plant and maintenance as only few people will take up this module at present, availability of trained people in this module are scares at present time. But by the time you come out of the institute trained what is the guarantee that same amount of scarcity prevails.  So you can not foresee the demand today.  For any bright candidate with proper experience, good understanding on the business process of the enterprise and willing to take that extra mile - employment and earning should not be a problem at all.

So have some at least two to three years of experience, select the module which complement your domain experience and get the skill.

Following are few modules in SAP for your ready reference.

ABAP                   Advanced Business Application Programmer
APO                     Advanced Planning Optimization
BW                       Business Information Warehousing
CRM                    Customer relationship Management (Mobile sales, Internet sales and                                                   interactions)
DW                      Data Warehousing
EHS                     Environment, Health and Safety
EP                        SAP Enterprise Portal
FI CO                  Finance and Control
HCM                   Human Capital Management
HR                       Human Resource Management
MM                     Material Management
PLM                    Product Life cycle Management
PM                      Plant Maintenance 
PP                       Production Planning
PS                       Project System
SCM                   Supply Chain Management
SD                       Sales and Distribution
SEM                   Strategic Enterprise Management
SRM                   Supplier Relationship Management
WM                    Warehouse Management
XI                        Exchange Infrastructure

Have a nice day.

Feb 21, 2009

Intro - SAP

SAP & MySAP Business Suite.

SAP stands for Systems Application Products in data processing.
It should be pronounced as S A P and not as a single word sap.

SAP product strategy is:

Extend instead of replace.
Business process integration for cost reduction and efficiency.
Cooperation among the supply chain, collaboration within business community for improved effectiveness, value creation.

The evolution of business is from ERP to Inter Enterprise Cooperation, collaborative business. Drives efficiency, profitability from business relationship.

SAP founded by 5 IBM Engineers in 1972 at Waldorf in Germany.

Claus Wellenreuther
Dietmar Hopp
Haus Wenner Hector
Hasso Plattner
Klaus Tschira

SAP Business suit is built on SAP Net Weaver, which include SAP Web application server, the portal infrastructure, the exchange infrastructure and information integration.

SAP Web application server supports Internet technology (HTTP & XML) JAVA and ABAP.

SAP switched over to R/2 Architecture in the year 1979, R/3 Architecture in the year 1992 and supported e-commerce since 1996.

SAP provides 23 industry and cross industry solutions.
28 languages which can be used in SAP.
46 various country specific versions available.
About 10,000 tables used in SAP R/3.
About 2.5 lakhs screens in SAP.
About 53 core modules called business components in SAP.
SAP reached India in year 1997, implementation by SAP partners and not SAP Labs.

SAP solution manager is for implementation, which covers operation, solution monitoring and support.

SAP implementation is a collective effort.

Feb 5, 2009

Enterprise success

Enterprise success depends on how best we manage the materials, how best control the costs, how best we use the information system and integrate all activities effecting the bottom line.

Enterprise resource planning, ERP in short made this task easy.

With sound knowledge of any ERP only one can consider best suited for in the field of Purchasing, Materials Management and Logistics, apart from the domain knowledge.
Reason being every company using ERP, amongst them SAP is one pioneered.

As it is worth to give some inputs to students who want to get in to SAP MM, practicing professionals, who are in for some inputs,
few writings I would like to take up how SAP deals with real time situations.

I request all the experienced to add few lines to my blogs, which will help me to improve and also helpful to the readers.

You may kindly ask if any doubt or question in mind, which I will try to answer in my next blog.

Me believe in learning continous process, I would like to have a interactive experience with you all.

Best wishes.

Jan 29, 2009

Business logistics

In an organization environmental factors influence decision making at all levels and warehouse is no exception. Tax structures and other governmental rules and regulations will influence the movement of goods from supplier to factory and factory to consumer. The basic rules and regulations will remain same but the rates, tariff and materials affect change from year to year.

Customs duties and sales tax account for a major portion of government revenues.

The warehouse in charge must be aware of these in order to function effectively have the economic advantage of stocking and not stocking.

Business logistics management aims at delivering material in production areas and finished goods to ultimate consumer by better freight management.

These activities cover the functions of incoming material, transportation, warehousing, material handling, stock control, order processing, supply scheduling and distribution of finished goods.

An efficient logistics system is one which handles the flows of inputs of raw materials into the production shops and the flow of the finished products to the customer according to plan with benefits greater than cost.

The packaging to be as acceptable for the consumer and easy to handle, transport and distribute, deliver to the customer. Product must be available for buy when customer wants at the merchant location.

Storage automatically assumes importance because of the time lags between completion of manufacturing and packaging, between the packed state and loading in to the carrier and between unloading at the destination and final delivery to the customer. Efficient management requires the time lag to reduce as minimum as possible to keep the distribution channel full and at the same time to minimize the costs. This is what exactly reduction in queuing. Time is money. Distance you cannot reduce, but time to travel can. This will reduce Inventory carrying and associated costs.

A total solution considering all the factors is the need in relation to the following areas:

Space cost economy in warehouses, labor economy in handling, transportation efficiency, reduced working capital investment, accurate forecast and control of costs, marketing efficiency and customer satisfaction.

Incident based documentation is the effective measure for a better functioning of the store.

On time, every time.

Right at fist time, every time and no rework.

No short cuts.

Jan 25, 2009

Success of verification process

The primary purpose of stock verification is to check that the physical stock agrees with the book balance.

If these fail to match, as often is the case the following could be the possible reasons:

Labeling of the item is not correct
Location of the material is wrong
Arrangement of the warehouse is improper
Gangways filled with boxes and other materials
Mislaid or lodged between shelves and dislocated later
Theft
Faulty documentation
Illegible handwriting
Figures copied incorrectly
Loss of documentation
Elimination of number of copies
Deteriorating accuracy of records
Transferring the paper work from one shift to another and not completing properly
Receiving by weight and issuing by numbers or vise versa
Inaccuracy of weighing scales at receiving or issuing or both places
Issuing without authorization, indents, or issue vouchers
Urgent issues made when store closed, without posting the entries.
Delay in inspection, posting the goods receipt note and other receipt documents later than the issue documentation posting.
Using rejected material in emergency and not accounting properly
Improper communication with the user, inspection, external vendors
Each bin containing more than one item leading to mix up and confusion in issue
Issuing wrong material, wrong indenting
Issuing with out a document, as user is busy
Direct delivered items, bulk items are received and removed without adequate documentation
Understaffed stores and presence of unskilled stores personnel
Improper records on the transfer from one store to another, lead to discrepancies
Material receipt when the store closed resulting in delay in postings.

In spite of all the above warehouse in charge has to receive, store in proper locations, issue, and account properly to minimize the discrepancies.

Verification agency should be impartial. Success of the verification process depends on the skill of the personnel involved.

Entire operation is on two primary documents namely receipt and issue. Hence the warehouse in charge has to keep these two records update and accurate to minimize the year-end imbalances.

Physical verification is useful only when a follow-up action is planned for future like writing off, imposing penalties, tightening security etc.

Jan 24, 2009

Stock verification

Stock verification defined as the physical counting, weighing, or measuring the stock materials held and making a record of these figures.
Mostly it is an annual exercise coincides with the closing of accounts.

The warehouse in charge is responsible for the safe custody of the largest current asset of the balance sheet. They are raw materials, machinery spares, finished and semi finished goods.

In order to avoid discrepancy in stocks, constant review of stocks, up to date posting, reconcile the physical and book balances are of prime importance.

The main objective of the verification process is to identify the weaknesses in the operations of the warehousing system.
To ensure the input, output and stock on hand accounted for accurately.
Ensure proper placement of materials.
It also helps to identify slow, non-moving and obsolete items.
The chances of collusion amongst the various staff members may be to detect.
The purpose is to set up records as the basis for control and secondly to pass on accountability from one department to another.

Science there is always a pressure to complete stock verification exercise quickly; this may be ineffective and nullify the advantages.

To overcome this drawback, we require adopting continuous monitoring or perpetual inventory taking. In this case, materials verified throughout the year, a few items daily.

It will be advantageous to have the high value items verified more often.

Arrange verification of the high value items at the time of issue or receipt of these items in order to avoid accumulation of errors.

The primary purpose is to assure that inputs, outputs and the stock on hand have been accounted for accurately. A careful planning, well organized and executed stock verification will give tremendous advantages to the organization.

Take care to avoid double counting and omitting some items.

Jan 22, 2009

Cost

Storage costs

The warehouse in charge must be aware of the fact that materials cost the organization in the form of intrinsic price paid to the supplier, freight, handling expenses, and inspection charges.

Materials stored in the warehouse cost the organization in terms of men, materials, time, space, insurance, risk and so on.

The inventory carrying cost is approximately about 30 per cent per annum on the average value of materials stocked.

Cost of funds

The cost of money invested in inventories and or opportunity cost for the funds.

Cost of storage place

For storing items, a firm needs space. This includes space for documents, work force, and office furniture etc. The cost incurred on the physical storage facilities in the form of rental value or opportunity cost basis.

Salary and wages

The salary and wages and the statutory payments of stores staff, security staff, stores audit staff, depreciation of bins, racks, handling equipment, furniture, office equipment and other devices used in store.

Obsolete items

Low shelf life items stored will deteriorate over period of time, requires to be disposed off.

Losses in spillage, evaporation of volatile substances and chemicals are also included in inventory carrying cost.

Breakages in handling and in transporting within stores premises will add to the costs. The non-moving items require liquidating at throwaway prices.

Losses due to theft and pilferage are included in the inventory carrying cost.

Insurance cost against fire, theft, burglary and other risks.

Over stocking cost - is an extension of inventory carrying cost, it signifies the investment in inventory for a longer period than necessary. Hence, the opportunity of alternative investment is lost.

Stock out or under stocking cost - in the finished goods area non-availability of an item implies that the customer will go to another vendor or substitute the brand with another. This results not only in loss of profit on sales, but also affects the image of the organization. In the case of raw material, stock out results in idle production line, the cost of lost production during the period of stock out and the extra cost per unit which might have to be paid in an emergency purchase.

The warehouse in charge is expected to manage the stores efficiently by reducing these costs without affecting the service level to the consumer.

Jan 21, 2009

"A battle well begun is half won"

Management of receipts in store

"A battle well begun is half won", amply emphasizes the management of receipts or inputs in the warehouse.

Input management in the warehouse includes the following activities.

Requirement determination
Preparing of purchase requisitions
Chasing supplies through the purchase section
Request for expediting suppliers
Receiving the materials
General visual inspection
Quantity inspection
Coordination with quality inspection
Taking stock of the accepted materials
Taking care of rejected materials
Completing documentation
Making book entries
Endorsing supplier’s bills

Unless the warehouse systematizes its working by better planning, it will not be able to complete the input formalities. This is one of the critical areas as the time of deliveries is uncontrollable. Load carrying vehicles, containers from out stations not to consider as extension of warehouses, and to clear on a priority basis to avoid demurrages.

Receipt determination

Past consumption, anticipated forecasts, lead-time, exceptional known cases, are relevant to determine the requirements in the case of regularly consumed items.

Purchase requisitions

By raising a purchase requisition, the procurement section to be informed about the materials requirement, to take necessary purchase actions.

For new items, it is essential to consult the user before releasing the requisition. This will ensure corrected, updated entries and prevents accumulation of obsolete items.

Based on the purchase requisition, purchase department will release the purchase orders. A copy of which is forward to the stores for facilitating receipts. This facilitate the store to prepare for receiving the materials and correlate with the suppliers documents sent with the material. The receiving section constantly should chase, follow-up the procurement section to get the materials in time.

The warehouse is accountable for the physical count of the receipt. The quality control department will carry out the quality assessment. The final incoming materials can be in usable stock only upon passing thru the prescribed quality checks. Technically the procurement action is not complete until the inspection is over.

The warehouse to be provided with adequate measuring instruments like weighing scales, measuring vessels, for volumes, ratio balances for counting etc.


The document used to regularize receipt of materials is the goods receipt and inspection note or GRIN.

When shortage arises, send intimation to supplier giving the necessary details. There is urgency in this regard, as claims are time bound.

Regular materials issue to consumer departments constitutes the bulk of warehouse activity. Warehouse also has to cater to temporary requirements such as equipments, tool kits, projects, sub contracts, sample issues, returnable issues, etc., separate procedure have to be developed for these issues and the method of accounting should be specified and effectively implemented.

Issues must be based on valid authorization. Authorization can be in the form of a material requisition.

Once issue voucher received by the store, it is for the store to check availability, identify the authenticity, correlates the control limits and issue the material. The necessary entries made in the stock ledger / bin card.

Complete the receipt, stocking and issuing formalities as and when the transaction happens.
Incident based documentation will avoid many problems of stock mismatch, timely indication for procurement, excess or short receipts, over stocking etc.

Define procedure for stock transfer or loan from one cost center to another.

FIFO system of issue

To enable a proper rotation of stocks, adopt a first in first out (FIFO) principle in the issue of materials. As the name implies, items received first issued first. The material in store physically organized in such a way that the first in materials are handy enough to be issued out first. This rule will take a back seat when expiry date is the criteria for issue. Material whose expiry date is first to issue first irrespective of it receipt.

Returns to stores

In normal conditions there will be no returns to store once the material is issued, but it may be necessary to have a procedure laid in place as some times because of wrong issue, or plan change, or non suitability of the item issued may give rise to return the material back to store.

A store document is to cancel by issuing another reverse document.

Jan 15, 2009

Factors in stores systems

To satisfy the customer/consumer/user, it is essential for the stores function to systematize its working.

The factors that have to be considered while designing a storage system are the type of material, volume of transaction, physical facilities, receipt, issue, documentation, flow of materials, and the warehousing manual.

Raw material stores

Proper control of raw material is one of the major factors that influence the profitability of a company.

A stock out in the raw material will reflect by an idle manufacturing line.

External factors in the supply such as availability, lead-time, seasonality, staggered deliveries, and credit conditions all combine to influence the stocking of raw material. Transactions of raw materials need tight control to affect an uninterrupted supply to production lines.

Packaging material and consumables

Generally, the consumable and packaging materials do not cause any supply problems, but occasionally some of them can become scares. The general characteristic of these items are voluminous. Depending on the demand and availability of their storage space, the stocking policy controlled. They require protecting from moisture and excess heat, their aesthetic character is most important in view of the marketability.

Machinery spares

Machinery spares pattern of consumption is rather unpredictable. The obsolete inventory in most cases comprises only the spare parts.

A proper coordination, planning, procurement, issue, monitoring, and control can give better results. Regular collection, collation and analysis of consumption data reduce the problem of a stock out.

The damage due to non-availability of a part is several times more than the cost of the part itself; leading to hoarding of machinery spares stock.

A collaborative approach between purchase, stores and engineering departments will save a lot of money in this area.

Finished goods

The input to the stock is as per the production schedule, while the output depends on market conditions in a consumer-oriented industry. A slack market leads to stockpiling and a buoyant market leads to scarcities. Shelf life is an important consideration. Storage space should be adequate to meet these extreme conditions. The system of control should be oriented towards coordination not only within an organization but also with the competition and consumer profile.

Finished goods to be as near to the consumer as possible, in order to reduce transportation time, cost, double handling, etc. Periodic meetings with the users help identify problem areas and increase the service facility of stores. The guiding factor in all cases must be the cost of capital and benefits arising there from.