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Process Cycle

The document outlines the key steps in a company's procurement, production, and sales processes. The procurement/purchasing process includes determining requirements, sourcing options, vendor selection, purchase orders, goods receipt including quality checks, and invoice payment. Production involves work orders. The whole cycle aims to efficiently manage the process from procuring needed materials and services to production and sales.

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Rahul Kumar Vaish
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Download as DOCX, PDF, TXT or read online on Scribd
43 views

Process Cycle

The document outlines the key steps in a company's procurement, production, and sales processes. The procurement/purchasing process includes determining requirements, sourcing options, vendor selection, purchase orders, goods receipt including quality checks, and invoice payment. Production involves work orders. The whole cycle aims to efficiently manage the process from procuring needed materials and services to production and sales.

Uploaded by

Rahul Kumar Vaish
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The whole process cycle covers Procurement/Purchasing, Production, & Sales

processes.

PROCUREMENT/PURCHASING
1. Determination of Requirement
a. What material/service is required?
b. What quantity is required?
c. Till what date the above said material & quantity are required?
d. Also, availability check/stock level check
e. Forecasting
+ For us, in this step we get production plan from HO
2. Source Determination Helps us to find the most suitable source for a
certain requirements.
a. Based on past orders
b. Existing long term agreement

3. Vendor Selection
a. Negotiations
b. Comparison of quotations on the basis of Price, Parameters, quantity, &
quality etc.
4. Purchase Indent / Requisition Requirement from various departments to
purchasing department.
+ Information
- Header Indenter Code, Name, Dept., Plant.
- Body Item code, Description, Quantity, Requirement, Delivery Date etc.
5. Purchase Quotation An offer by a Vendor to a Purchase organization
regarding the supply of material performance of services subject to specified
conditions.
+ Based on Purchase Indent/requisition
+ Information Vendor, Date, Quantity, Unit, Price, Amount, Tax, Discount,
& Warehouse.
6. Purchase Order A formal request or instruction from a purchasing
organization to a vendor or a plant to supply or provide a certain quantity of
goods / services at or by a certain point in time.
Its a legal document between a vendor & the company. And covers payment
& delivery terms.
+ Based on Purchase Indent/requisition
+ Information Select Vendor, all details copied from Indent.

7. Goods Receipt (Warehouse - QURANTINE) Process of receiving material


into a warehouse.
+ Conditions, Quality, & Quantity are verified between our own Purchase
Order & Vendor Invoice.
+ Based on Purchase Order
+ Information Select Vendor, all details copied from purchase order.
7.A Label Printing Labels are printed for Quarantine & Testing.
+ Information Quantity, Date, Container Number.
A.R. Number generated
7.B QC Check Verification of the received material on our required
parameters, if approved, then only material move for further process i.e.
Production, else returned to Vendor with Debit Note.
(Inventory Transfer: Quarantine W/H Approved W/H)
8. A/P Invoice - We need to CLOSE it as the payment to Vendor has been done.
+ Based on Goods Receipt Order
+ Information Select Vendor, all details copied from Goods Receipt order.
9. Work Order for Production -

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