EN -Training - Procurement

PROCUREMENT

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The information system

Procurement requires working on several applications within our information system.

Market share by supplier / SKU

Safety stock Placing orders

Export Article site materials and components

Export BOM manufactured component

Local prices

Re-ordering point

MRP controller

Macro flows between systems

• Finished product

• BOM

• Effectivity date

MRP

Purchase requests STT purchase orders Planned Orders (fixed)

Closed supply recommendation Forecast procurement recommendation

Every hour

Every night

Next !

MRP

Purchase requests STT purchase orders Planned Orders (fixed)

Purchase orders receives orders by email

NON-PORTAL Supplier

Confirmation (dates/quantities)Shipping

PORTAIL Supplier

LVSP (Supplier portal)

The different SAP objects

In order for the supplier to place a purchased order, certain SAP objects and data are systematically necessary, such as the supplier, the price...etc. Let's move on to discover them!

The supplier file

Access to the transaction / supplier consultation

Instructions: Type the transaction code XK03 in the search field provided for this purpose.

VALIDER

Access to the transaction / supplier consultation

Instructions: Type the transaction code XK03 in the search field provided for this purpose.

Indicate the supplier number (if you don't know it, you can search it by the match code) Company code F500 Purchasing Org WW01

Make sure that you select all the General data

Supplier consultation

We can consut :

1. Address...

2. Contact details of the supplier especially the presence of the email address to ensure orders for suppliers outside the portal.

3. Portal or Non-Portal LVSP

Purchase Info Records

Purchase Info Sheet (FIA)

A Purchase Info Record also called FIA represents an Item / Supplier / Customer relationship, for a component or a material.

Purchase Info Sheet (FIA)

All FIAs are created by interfaces from PLM to SAP when creating clients samples.

Each site declares its potential suppliers for the item. As soon as the flag export article is ok, the FIAs are created by interface in SAP (one FIA per customer site/supplier/SKU).

The Manufactured/Purchased scenario will determine the type of FIA (purchased or subcontracted).

Consult an FIA

Instruction: Enter transaction code ME13.

VALIDER

Search for an FIA

Instrcution : Click on the match code (little box on the roght of the case)

Consult an FIA

Instruction: Enter the division code (S018) of item A30200A, then click on the “validate” button.

VALIDER

Consult an FIA

Instruction: Double click on the desired FIA to access it!

Description of the FIA

FIA's Description

Purchase prices

Purchase prices in the FIA

The purchase price is managed at the supplier/item level. Each price has a validity date renegotiated regularly by purchasing or site suppliers (depending on scope).

This is data that can be found in the FIA (article – supplier link). It must be kept up to date to allow order generation.

In SAP, we find two types of rates: ZPB1 : local purchases price updated in SAP by the procurement (plant) ZPB2 : central purchases price updated in SAP by central

Purchase prices in the FIAClick on "conditions" to acceed the pruchased price

Purchase prices in the FIA

Types of orders (purchasing order)

Orders type

What are the types of orders?

A classic purchase order is of the ZBUY type. A subcontracting order (where the material is supplied to a subcontractor) is a ZSTT type purchase order: - It contains a Bill Of Material => subcontracted component.- Each item with the site app set to “Yes” in the nomenclature is associated with a need date. The type of purchase order is determined based on the manufactured or purchased data that is entered in the source data.

Picture from PLM

Type de commandes entre sites

Pour les flux intersites, nous avons d'autres typologies de commandes.

ZITA

Transfer orders between sites of the same company Example: French site to another French site which are both part of the SALV company.

ZITE

Concerns intra-site orders between two sites which are not from the same company. Example: Portuguese site to a French site.

ZFRE

free purchase orders for component sites

MRP

Calculating needs

Requirements are calculated using MRP.MRP is the acronym for “Material RequirementPlanning”.

MRP makes it possible to calculate and anticipate the need for materials and components based on the production planning of finished products

At Louis Vuitton, we use 2 different systemes of MRP

MRP from Néo Alma =For all our strategic materials (leather, canvas, pmet, reinforcements, etc.) For our components (address holder, handles, etc.) Finished cutting materials and other components manufactured externally. All manufacturer sites, whether internal or external users use Néo Alma as well as purchases that follow the capacity load of suppliers.

SAP MRP = Only used for internal sites. On components where finished product planning is not used to create dependent requirements.

Important data to control and impacts

In the SAP material master, the MRP TYPE field allows you to know which MRP is used.

Rules : X0 = Article managed from Néo ALMA ​ PD = Calculation of the MRP SAP requirement ​ VB = Item managed in Manual Order Point, SAP MRP ND = No MRP, managed manually

Where can we see this data?

Instrcution : Enter the code transaction MM43.

VALIDER

Where can we see this data?

Instruction : Enter the item code K000716, then the division code s014.

VALIDER

Where can we see this data?

Instruction : Click on "logistic DC".

Where can we see this data?

Instruction : Click on the “display planning unit data” button.

Whee can we see this data ?

Instrcution : Click on the planning unit code.

Where can we see this data ?

The planification type is in MRP1

By going to the Item Sheet and then to the “platform logistics view”, we can see the planification type. This datas are fileds in a specific transaction - FSH_MRPA

ZMAT_CONSO

The planification type is generated in SAP from a table called ZMAT_CONSO wich manages certain data for all manufacturing plat based on the material hierarchy. The consumption mode is also managed in SAP via the ZMAT_CONSO table. This table is managed exclusively by the Master Data Central team. However, the sites have the possibility of putting exceptions in an equivalent table, managed by the plant's Master Data.

MRP Néo Alma

MRP Néo Alma

Why do we use Néo Alma? Néo Alma is software common to all sites, whether internal or external. This allows buyers to have a consolidated vision of our needs and consumption of materials and components and to apply appropriate purchasing and partnership strategies accordingly.

What types of items are supplied from Alma?

Our materials such as leather, canvas, textiles, metal parts supplied by internal sites, SAP AFS (LVI) or suppliers. externes.

The components submitted to the capacity tunnel by the central supply (excluding Manufs kits, repairs, etc.), regardless of the manufacturing scenario.

Cutting semi-finished products or other purchased or subcontracted components.

Procurement from Alma

What data is needed to see the need in Néo Alma for a subject?

1. Have planning on the finished product in Anaplan 2. all the Fathers components must have a logistics scenario configured in PLM 3. The effective start date must be present in the PLM BOM 4. A customer sample containing at least one supplier “OK” to order must be made 5. The X0 setting in the SAP material master.

How does the components and materials supply plan work?

Extract from Neo Alma

The procuremet team works on its supply plan in the Néo Alma system for the items that are managed in this system.

The needs expressed in Néo Alma are validated each week over the horizon corresponding to the supplier's delivery leadtime. - On wednesday for components - On thursday for materials

These requirements are then sent from Néo Alma to SAP which generates purchase orders accordingly.

How does the components and materials supply plan work?

Extract from Neo Alma

The quantity entered here as required is validated and sent to SAP.

The procurement works on his plan once a week but the export of validated needs from Néo Alma to SAP takes place every hour. SAP receives the validated requirements.

Are then generated in SAP:

• Proposals for purchase orders

• Open Orders (which will be transformed into a Manufacturing Order) for components manufactured internally

SAP MRP

SAP MRP

We use SAP MRP for internally manufactured components that are not subject to the capacity tunnel, such as semi-finished cutting or PAM kits. However, the need for the materials that compose those components will be done in Néo Alma. We also use SAP MRP for elements on which it is not possible to do planning (repairs, personalized elements, etc.) In addition , the calculation of the need for certain materials (consumables, small tools) is also done via the SAP MRP through the safety stock.

Purchasing requests generated by the MRP

MRP runs nightly in SAP FMS and aims to meet the procurement needs of higher BOM levels by creating the MRP elements corresponding to lower levels.

At the end of a need:- In internal components => generation of lower level planned orders (SFC) -Purchased items managed on security stock => generation of Purchase Requests to replenish the stock

The SAP FMS MRP will create dependent requirements for each material and component present in the bill of materials.

The MRP for internally cut SFCs

Production Orders concerning cutting (SFC) cut internally are created by a sequence of actions from the subcontracting purchase order. It is the source of the need in SFC. From the need, the SAP MRP creates Planned Orders which are smoothed over 5 working days before being converted into a Manufacturing Work Order.

Focus on the necessary settings depending on the item type

Consumables managed with reorder point

SFCs cut internally

Personnalised components

Repairs

What is this ?

What is this ?

What is this ?

What is this ?

Other structuring data for sourcing

MRP controler

The procurement or scheduling filters on the MRP code to transform all planned orders into manufacturing orders. Poor configuration can lead to disorganization when launching OFs.

Example: The ZCP code is used to launch the cutting on the SFC C sub-components​. The procurement , which is responsible for launching the SFC C for the components only, filters on the ZCP code to transform all planned orders into orders of manufacturing​.If an SFC C in the nomenclature of an upstream kit has the code ZCP, the OF for this SFC is launched.​ Consequences : Disorganization at the scheduling level for which the SFC C OFs are launched in an order network and attached to an upstream kit OF

Data managed in MM42 and FSH_MRPA

BOM and production version

Presence of the manufacturing version and alternative nomenclature for subcontracting

Rule: subcontracted components must have a manufacturing version and an alternative nomenclature

Subcontracted components must have a bill of materials. However, this nomenclature may be different depending on the subcontractor. It is necessary to rely on the manufacturing version in the subcontracting FIA to retrieve the correct nomenclature in the subcontracting purchase order.

Routing

In the case of subcontracting (except for components manufactured internally which will be processed in another part) given that there is no longer a Manufacturing Order, the routing is not indicated in the manufacturing version. It is only used to associate a nomenclature with an item/subcontractor pair. This manufacturing version is used to link in the subcontracting FIA with the pair item/supplier .

Rounding value, minimal and max lot size

The max batch size This allows you to “divide” the OFs or orders Example: if the need is for 240 address holders manufactured internally, if there is no max batch size provided, SAP will propose a OF of 240. If we set a maximum batch size to 30, SAP will propose 8 of 30 address holders.

The rounding value :Ensures that the Ofs or purchasing orders are compatible with the manufacturing batch size. Example: If a pre-cut feeds 6 components , you must ensure that the component and the SFC are always launched in multiples of 6.

The minimum lot size : This helps prevent the MRP from creating purchase requests that are too low. This function is used for materials managed at order points.

Where is this reported? FSH_MRPA

The subcontracting loop

Subcontracting loop

Comment seront gérés les stocks des articles expédiés chez le sous-traitant ?

PMET

Component plant

SFC C,T,R

Finished good plant

Post-consommation de la matière sur le stock STT lors de la réception composants

Stock matière chez le STT

Stock Composant

Composant

Subcontracting loop

Point of vigilance

If there is IT stock of SFC or PMET at the subcontractor, no requirements will be generated to meet the requirements of the component because this stock is seen as available. The SAP MRP will not create new Planned Cutting Orders. The Néo Alma MRP will not propose new orders on the PMET. It will be important to set up a very regular inventory routine with the subcontractor

Understanding the subcontracting flow

What is the relationship between subcontracting purchase order and Cutting Manufacturing Orders (SFC)?

Planned Cutting Orders have a routing, a BOM, as well as planned dates for manufacturing. But they cannot be used directly to trigger the manufacturing of SFCs, so they will have to be converted into Cutting Manufacturing Orders.

Your turn !

Answer to the questions !

Play

Quiz Time !!!

Start

What are the different MRPs used in procurement?

PLM & SAP

Néo Alma & SAP

Yeah!

Next question

What are the three main software programs used by procurement ?

Procurement, scheduling and manufacturing

PLM, SAP et Néo Alma

Yeah!

Next question

What is an Info record ?

Link between the supplier and client for an article

Link between the supplier and the central buyer

Yeah!

Next question

What is the transaction name to access the supplier record?

MM43

XK03

Yeah!

Next question

Quel est le type d'une commande d'achat classique ?

ZBUY

ZPB1

Yeah!

Next question

Oh no!

Try again

END !

You have completed the SAP “Procuremet” training! Congratulations ! A few more minutes before leaving you...

Nous serons ravis d'avoir ton retour sur la formation. avant de partir, réponds au questionnaire !

All items required to manufacture the component (SFC and PMET) have to be be sent in a single delivery. A cockpit for controlling SFC and PMET deliveries has been created to better monitor shipments to the subcontractor in SAP.

Focus on the necessary parameters

Personnalized components

Buyer Néo Alma : must finished by ZPlanification type : PD

Once the SFC and PMET items have been shipped to the subcontractor , the stock is electronically transferred to SAP in the subcontractor stock category but stil belong to the Finished good plant. They still see it in the stock

X0 = Article managed from Néo ALMA​ PD = Calculation of the MRP SAP requirement ​ VB = Item managed in Manual Order Point, SAP MRP ND = No MRP, managed manually

When the customer site declares the reception of the component, the stock of SFC and PMET is postconsumed. This means that at this step, the stock is no longer visible; It the reception is not made, the SFCs/ materials are still visibles by the procurement teams.

The component site sends the components including KO. At this point, the client site still see a view of the SFC's material stock at the STT even thu it has been consummed by the component plant

Focus on the necessary parameters

SFCs cut internally

Buyer code Neo Alma Néo Alma : must finish by Z Planification type : PD PLM Manufacturing Scenario : Manufactured – in-house production

Focus on the necessary parameters

Buyer Néo Alma : must finished by ZPlanification type : PD Security stock: Must have the minimum stock level that we need. Conversely, at the end of the life of the finished product, if safety stocks are not lowered or reduced to zero, there is a risk of producing repair items which we will no longer use, which would lead to then throw them away. We can decide not to put safety stock on certain repair items because there is too little volume in the finished product. A person in the workshop (often a log method) is in charge of managing safety stocks based on consumption.

Focus sur le paramétrage nécéssaire

1. Planification type : VB – Manual reorder point planning. 2. Value of the reoder point in the planning unit. This is the stock value (+ projected stock with current orders) below which the MRP will detect a need and automatically create a purchase request. 3. The minimum lot size helps prevent MRP from creating purchase requests that are too low.