D. Suggested Process Flow Diagram

MEGA PROCESS PROCUREMENT
(D) SUGGESTED PROCESS

FLOW DIAGRAMS
1. Value Proposition and Key Controls
2. Explanatory Notes
3. Tea Auction Purchase PFD
4. Tea Private Purchase PFD
5. Speciality tea PFD
6. Packing and Printing Materials PFD
7. Vendor Management PFD
Business Process Review and Improvement Madhu Jayanti International Limited
VALUE PROPOSITION AND KEY CONTROLS

1. Cost effective buying – efficient vendors, timely delivery, quality goods at mutually agreeable terms
2. Qualified and reliable vendors
3. Documentation and system updating along with business process flows
4. System Based Approval - In view of wider use of technology, system based approval is desirable in the
value chain
5. Enquiries of offers from approved and enlisted vendors (Except auction buying). Minimum number
of offers as per policy
6. Value chain mapping - to review loss of profitability arising out of increased price of raw tea
7. Minimization of risks arising out of ineffective inspection of quality of inputs
8. Minimization of risks of not penalising vendors responsible for defective supplies
9. Close monitoring of lead time of arrival of inputs and delivery of outputs
10. Existence of effective vendor management
11. Existence of authority system for purchase, price fixation, acceptance, receiving and payment
Chunder Khator & Associates Creating Value & Confidence 2

EXPLANATORY NOTES
• Explanation of colour scheme used:
• Blue: Signifies Inputs, as being currently used in the processes
• Green: Signifies Outputs, as being generated by the existing processes
• Purple: Signifies Operations
• Orange: Signifies suggested changes in Inputs, Operations and Outputs
• The Process Flow Diagrams have been made on a general assumption and recommendation that the
company may consider an automated approach to the processes, as far as feasible. In view of this, a
common symbol is used to signify both manual input and system input.
• In places where changes are suggested, reference is made to the relevant observation(s), as
given in deliverable (B) Observations On Procurement Mega Process 0verview



START
SALES PROJECTION
LEAD TIME (REF

B.3) PROCUREMENT PLANNING
STOCKING POLICY
( REF B. 16)
MARKET PURCHASE
NO PRIVATE
INTELLIGENCE BY
PURCHASE PFD
AUCTION?
PRICE BEHAVIOUR
YES
SEASONAL OBTAIN TRADE SAMPLES AND
PURCHASE AUCTION CATALOGUES FROM TRADE
DATA BROKERS, 1 WEEK BEFORE AUCTION
DATE
TEA TRADE
SAMPLES FROM TESTING OF TEA (TASTING AND
TRADE BROKERS OTHER MODES OF TESTING)
AUCTION
CATALOGUE FROM
OK?
TRADE BROKERS
YES
A
INPUT OUTPUT
SELECT GRADE/
GARDEN etc. TO BUY
SUBJECT TO DECIDING
QUANTITY
UPDATE SYSTEM
PAST TREND OF DECIDE RESERVE PRICE (only visible by
PRICES TO BUY AFTER person authorised
DISCUSSION WITH MD to auction)
BROKERS' INPUTS
MARKET
INTELLIGENCE PROCEED FOR AUCTION
CUSTOMERS' END
PRICE TRENDS
INPUT OUTPUT
INPUT OUTPUT
C CONTRACT
APPROVAL FROM
DELEGATION AMOUNT MEGA -PROCESS
YES
CHART (REF B.10) ABOVE DELEGATED OWNER/ CONTRACT
LIMIT? COMPETENT
LIST OF AUTHORITY
NO
PURCHASES
SYSTEM PROMPTS PAYMENT
DOWNLOADED CREATION OF CONTRACT
DATE CONSIDERING PERIOD OF
FROM BROKER'S IN THE SYSTEM
14 DAYS
WEBSITE IN
EXCEL FORMAT MAKE PAYMENT AFTER
ENSURING THAT SYSTEM GIVES REMINDER TO
CONTRACT IS APPROVED MAKE PAYMENT, 4 DAYS
APPROVED PRIOR TO PAYMENT DATE
CONTRACT BY COMPETENT
AUTHORITY
DELEGATION PAYMENT OF
CHART (REF B.10) PENALTY IN ACCOUNTS TEAM FOR
PAYMENT MADE NO THE FORM PLANNING PAYMENT BY
WITHIN 14 DAYS? OF RENT DUE DATE
YES
DETAILS WHETHER
GOODS TO BE DELIVERY
DESPATCHED TO EOU OR ORDER FROM
DOMESTIC UNIT GIVEN BROKER
TO THE BROKER
INPUT D
OUTPUT
DO WITH DO REGISTER ARE HANDED DO NUMBER IS

OVER TO CONTRACTOR/ UPDATED IN
DELIVERY
TRANSPORTER FOR SYSTEM AGAINST
ORDER(S)
TRANSPORTATION OF GOODS FROM THE INVOICES
BROKER'S WAREHOUSE /CONTRACTS
MAKE
FULL LIFTING
WEIGHMENT
REQUIRED? YES BEFORE LIFTING
NO
MAKE WEIGHMENT FOR THE LIFTED QUANTITY YES COMPLAINT WITH

QUANTITY DISPARITY? VENDOR INITIATED
TRANSPORT TO MJIL NO
QUANTITY
GOODS ARRIVE AT GODOWN. AT AND NO RECOVERY
BASIC CONDITIONS
GATE PRIMARY VERIFICATION OF (water spill damage ) PROCESS INITIATED
GOODS (QUANTITY & CONDITION) IS ALRIGHT?
DONE
YES
LORRY IF QUALITY IS FOUND TO BE
RECEIPT, GOODS
GRN CREATED IN DEFICIENT AT BLENDING STAGE,
BROKER'S TRANSFERED
SYSTEM CLAIM FROM VENDOR INITIATED AS
INVOICE TO STORE
PER TTA RULES
INPUT END OUTPUT



PROCUREMENT PLAN START

VIDE AUCTION PFD
OBTAIN TEA SAMPLES AND OFFER LIST FROM
TEA SAMPLES PRIVATE VENDORS
FROM
PRIVATE TESTING OF TEA (TASTING AND OTHER MODES
VENDORS OF TESTING)
OFFER LIST
FROM PRIVATE
VENDORS OK? NO
DIVERTED QUANTITY
FROM AUCTION PFD YES
STOCKING SELECT THE GRADE/GARDEN ETC. TO BUY
POLICY (REF SUBJECT TO DECIDING QUANTITY
B.16)
LEAD TIME
( REF B. 3) DECIDE HOW MUCH TO BUY
SALES
PROJECTION DECIDE WHETHER THE PRICE IS FAVOURABLE
FOR THE COMPANY AND NEGOTIATE WITH
PAST TREND VENDORS, IF REQUIIRED
OF PRICES
VENDORS'
INPUTS CONFIRMATION MAIL FROM VENDOR OR
OWN MARKET COUNTER RAISED
INTELLIGENCE
DATA OF RE - NEGOTIATION WITH VENDOR, IF
CUSTOMER NECESSARY
FINAL CONFIRMATION OBTAINED BY MAIL
INPUT B OUTPUT
INPUT OUTPUT

5. Speciality Tea PFD


SALES START
PROJECTION
LEAD TIME (REF
B.3) PROCUREMENT PLANNING
STOCKING
POLICY (REF OBTAIN
B.16) EXISTING NO CUSTOMER
PRODUCT? APPROVAL FOR
VENDOR SAMPLES
MASTER YES
LOCAL AGENTS SELECTION OF VENDOR FOR RFP (REF
OF OVERSEAS B.17)
VENDORS
NEWLY SEND RFP TO SELECTED VENDORS
DEVELOPED
VENDORS
VENDOR PRODUCT PROFILE SHEET
CUSTOMER AND SAMPLES COMPARED WITH
SPECIFICATION COMPANY'S SAMPLES
SHORTLISTING OF VENDOR
OBTAIN YES
NEW VENDOR
APPROVAL NEW VENDOR?
CHECKLIST
OF MD INFORM ACCOUNTS
NO
DEPARTMENT FOR ADVANCE
PO RAISED IN THE SYSTEM AND SENT PAYMENT, IF REQUIRED AS
TO VENDOR AS PER REQUIREMENT PER PO
A
INPUT OUTPUT
Chunder Khator & Associates Creating Value & Confidence
A
SHELF LIFE
AIR YES INFORM VENDOR
LEAD TIME FREIGHT? FOR ARRANGING
CONTAINER
FREIGHT COST NO
INFORM VENDOR FOR ARRANGING
LINER AT BEST POSSIBLE FREIGHT B
RATE (FOR FOB CONTRACTS)
ARRIVAL OF DOCUMENTS
CHECKING OF
DOCUMENT NO DOCUMENTS WITH
INVOICE, PACKING AGAINST AS PER IMPORT
LIST, BILL OF LADING, ACCEPTANCE CONTRACT
CERTIFICATE OF CONDITIONS
WEIGHT AND TARE, YES
CERTIFICATE OF
ORIGIN, PHYTOSANIT CHECKING OF DOCUMENTS WITH AS APPROVAL OF MEGA
ARY CERTIFICATE ETC. PER IMPORT CONTRACT CONDITIONS PROCESS OWNER/
COMPETENT
APPROVAL OF MEGA PROCESS AUTHORITY
OWNER/COMPETENT AUTHORITY
PAYMENT BY
SEND ACCEPTANCE TO VENDORS ACCCOUNTS
DEPARTMENT AS
PER TERMS
HANDING OVER OF DOCUMENTS TO
CLEARING AGENT
INPUT B
OUTPUT
ARRIVAL OF PACKAGE AT
DESTINATION PORT
APPOINTMENT OF ARRANGING CLEARANCE OF CARGO

CLEARING AGENT BY THE CLEARING AGENT
GOODS ARRIVE AT MJIL BY SEND SAMPLE FOR

FIXATION OF EXTERNAL LAB TESTING,
TRANSPORTATION TRANSPORTER.
WHERE REQUIRED
RATES BY PROCESS
OWNER INTERNAL TESTING OF RAW
MATERIALS AT MJIL
INFORM VENDOR AND

NO INITIATE PROCESS OF
ACCEPTED? RETURN
YES
TRANSFER TO STORE AND GENERATE GRN

GRN IN THE SYSTEM
APPROVAL ON INVOICE BY MEGA

PROCESS OWNER/COMPETENT
AUTHORITY IF QUALITY IS FOUND TO BE DEFICIENT AT
PURCHASE ORDER BLENDING STAGE, CLAIM FROM VENDOR
INITIATED AS PER CONTRACT WITH VENDOR
GRN PAYMENT BY ACCOUNTS
DEPARTMENT AFTER TRIANGULAR
APPROVED CHECKING (REF B.10)
INVOICE
INPUT END
OUTPUT



START
DETERMINE 6 MONTHS PROCUREMENT

ANNUAL
REQUIREMENT OF PACKING AND UPDATE SYSTEM
BUSINESS PLAN
PRINTING ITEMS KEEPING IN VIEW THE PERIODICALLY
(REF B. 14)
SIGNIFICANCE OF VALUE
VENDOR MASTER,
RFP TO VENDORS FOR RATES BASED ON
NEWLY ENLISTED
ESTIMATED DELIVERY QUANTITY OF SIX
VENDORS, EXISTING
MONTHS
VENDORS WITH RATES
RECEIPT OF COMPETITIVE TENDORS
CSQ OF RATES COMPARED WITH

EXISTING RATES
UPDATE SYSTEM
NEGOTIATION WITH VENDORS, IF
REQUIRED
FINALISE RATE WITH APPROVAL OF

MEGA PROCESS OWNER/COMPETENT
AUTHORITY
INFORM ACCOUNTS
RAISE PO IN THE SYSTEM WITH 6 DEPARTMENT FOR ADVANCE
MONTHS DELIVERY SCHEDULE PAYMENT, IF REQUIRED AS PER
PO
A
INPUT OUTPUT
INPUT OUTPUT



REF
B.6
VENDOR MANAGEMENT
B.17
PROCESS OWNER
INTERNAL
REFERENCES B.18
EXTERNAL REFERENCES (TRADE FAIR, C IDENTIFY POSSIBLE SOURCES (OTHER

OLD MAIL, ETC. (INDIGENOUS / GLOBAL) THAN EXISTING ENLISTED VENDORS)
WAITING POOL OF
VENDORS
APPRAISE VENDOR'S INFORMATION IN
RELATION TO SELECTION CRITERIA
APPROVED SELECTION
CRITERIA (VENDORS) VENDORS'
CRITERIA NO
REJECT WAITNG
SATISFIED?
POOL
YES
PLACE SAMPLE TRIAL ORDER
FOLLOW UP
NO
RESULT OK?
YES
NO
COMPETENT APPROVAL
A
INPUT OUTPUT
INPUT OUTPUT

D. Suggested Process Flow Diagram

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

D. Suggested Process Flow Diagram

Caricato da

Copyright:

Formati disponibili

MEGA PROCESS PROCUREMENT

(D) SUGGESTED PROCESS

VALUE PROPOSITION AND KEY CONTROLS

Chunder Khator & Associates Creating Value & Confidence 2

Chunder Khator & Associates Creating Value & Confidence 3

3. Tea Auction Purchase PFD

Chunder Khator & Associates Creating Value & Confidence 4

LEAD TIME (REF

DO WITH DO REGISTER ARE HANDED DO NUMBER IS

MAKE WEIGHMENT FOR THE LIFTED QUANTITY YES COMPLAINT WITH

INPUT END OUTPUT

3. Tea Auction Purchase PFD

4. Tea Private Purchase PFD

Chunder Khator & Associates Creating Value & Confidence 10

PROCUREMENT PLAN START

FINAL CONFIRMATION OBTAINED BY MAIL

3. Tea Auction Purchase PFD

5. Speciality Tea PFD

Chunder Khator & Associates Creating Value & Confidence 13

APPOINTMENT OF ARRANGING CLEARANCE OF CARGO

GOODS ARRIVE AT MJIL BY SEND SAMPLE FOR

INFORM VENDOR AND

TRANSFER TO STORE AND GENERATE GRN

APPROVAL ON INVOICE BY MEGA

3. Tea Auction Purchase PFD

6. Packing and Printing Materials PFD

Chunder Khator & Associates Creating Value & Confidence 17

DETERMINE 6 MONTHS PROCUREMENT

RECEIPT OF COMPETITIVE TENDORS

CSQ OF RATES COMPARED WITH

FINALISE RATE WITH APPROVAL OF

Chunder Khator & Associates Creating Value & Confidence 19

3. Tea Auction Purchase PFD

7. Vendor Management PFD

Chunder Khator & Associates Creating Value & Confidence 20

EXTERNAL REFERENCES (TRADE FAIR, C IDENTIFY POSSIBLE SOURCES (OTHER

Potrebbero piacerti anche