1. ConstantinMunteanu
Some detailed activities
Create item codes for purchased items based on MPS, standards,drawings.
I made a request form for creation new item code for raw materials,production materials,tools,fixtures,
controllers and metering equipment.The form includes the category of item, purchase specifications (size,model,
part number,serial number,material,odds ofdrawing) and standard definition (standard,catalogue,drawing) and
costcategory. Costcategory is a grouping of expenses (costs) ofraw materials,scrap materials,ferro-alloy,raw
materials,welding electrodes,parts,small inventories etc.Costcategory is very good for reporting consumption.
A user from Total Operational Excellence Team asked me the cause ofprice variance between PO and Receiving for
refractory items.I checked in Oracle ERP and the cause is EUR-WON exchange rate in case of contracts with
Chosun.Because investigation was laborious,Iasked IT programmer to create a PO Price vs. Receiving Price
report based on my requirements.
I wrote down the business requirements from Doosan Heavy Construction for implementing Bad Stock
and Over Stock
Bad Stock
No consumption during more than 3Months after receiptmaterials in IMGB,
the ending Quantities & values are “Bad Stock”
ERP Criteria
PO Receipt=0 and Issue(Consumption)=0 during more than 3 months(90 days).
Overstock
Due to surplus purchasing after receiptand consumption during more than 3 months the remained quantities &
values in IMGB are “Overstock”.
ERP Criteria
PO Receipt=0 more than three months (90 days)
Yesterday a user from Quality Control did not understand whyinspection resultwas delayed by 11 days and he knew
that he entered the inspection resultatinterval of an hour.His colleague from Materials Managementtyped invoice
date 10-Feb-2011 08:16:00,butsystem date is creation date 21-Feb-2011 08:17:05 which is the momentshe
recorded the weighed quantity.
The reason why Materials Managementtyped invoice date was to obtain receiving amountin Lei for Romanian
accounting.The invoice was from EU country.
For Materials Managementunderstanding Iwrote a work procedure for inputting the receiptdate when thy perform
receiving transaction:

2. ConstantinMunteanu
If EU PO, EU supplier and EU payment, the receiptdate shall be currentsystem date. In case of all the others,the
receiptdate shall be currentsystem date.
Adopt PO Parent-PO Child method for Foreign Currency contracts and Romanian suppliers in order to apply the
Romanian accounting regulation which says thatreceiving in inventory amountshould be the same as the invoice
amountwithoutVAT. The link between PO Parentand PO Child is PR. PO Parent is for example EUR PO and PO
Child is Lei PO in case of Romanian suppliers.The rate is calculated based on invoice date.
Improve PR-PO-Receiving-Invoice Status such as adding PR Line status,PO Line status,calculating Remained
Quantity.
Propose LTA Process for Gas, Electricity and Transportation because receiving and consumption are
continuously and therefore too much work with issuing receiving, move orders and consumption especially in case
of gas and electricity which are used in melting and refining processes and also they are direct cost.So LTA process
was accepted.
Issue work procedure for issuing PR in order to explain users the meaning of inventory, expense, investments and
OSP (outside processing),and to know the company policy regarding amount limit and approval process.
Issue work procedure for finance account used in ERP transactions.
Ask IT programmer to create a monitoring program for OSP PR and PO (Outside Processing Purchase
Requisition) so that users should cancel them when status ofjob order is Complete to avoid supplemental costs and
also warn Purchasing Team to close PO on time.
Establish KPI for Procurement/MM/Shops&MM
the working period to issue PO: the days taken from date of approved PR to date of issued PO and formula ∑(The
days issued PO – The days approved PR )/ The number of approved PR

3. ConstantinMunteanu
the working period to receive materials after inspection: the days taken from inputting inspection date to inputting
receiving material and formula ∑(The days inputted the receiving materials – the days inputted the result of
inspection)/The number of the receiving materials
the observance percentage of differences between physical inventory and GL before adjustment: the percentages of
differences between physical inventory and Inventory account book and formula abs(( physical inventory amounts-
book inventory amounts)/bookinventory amounts)