Oil and Gas-LNG

Master Data Management Services

TPN as a company has considerable management expertise and has considerable expertise in the fields of Master Data management in Materials, and Maintenance Management systems and Master data rationalization projects in SAP, Oracle Apps, JD Edwards, etc.

Pitfalls in the Current Master Data / Maintenance
Recap on Common Master Data Issues

What are the Master data Issues and Challenge faced?

The data issues can describe in different levels, which are :
  • Computer system
    • Unstructured data format
    • Proliferation of material codes
    • Difficult search functions
  • Information / Data
    • Non uniqueness of classification
    • Incomplete and inaccurate data
    • Duplication of material codes
    • Difficulty to identify common items
  • Standards
    • Incomplete standards, procedures, and guidelines
    • Loose control and enforcement of standards
    • Non standard practices by plants
  • Organization
    • No central ownership
    • Lack in career progression
  • Processes
    • High turnaround time
    • Lack of audit and quality check
    • Loose cataloguing coordination
    • Decentralized cataloguing processes
  • Resources
    • Lack of experience, knowledge, and skill
    • Lack of resources
    • High staff turnaround

Recap on Common Master Data Issues

What are the key challenges in Master Data?

  • Unnecessary material codes were created for one-off purchased items
  • Duplicate or obsolete material codes were not reviewed and eliminated
  • Material codes without any transactions were not reviewed and eliminated
  • Not possible to search the material by characteristics
  • Low quality material specification, i.e. incomplete and Inaccurate information
  • Identical material item are catalogued with different material codes due to different material categories (stock, direct charge, project and surplus material)
  • Items are stored without material codes, and it would have received from plant, (direct charge items, project surplus, excess shutdown materials, capital items / initial spares receipt along with equipment package, etc.)
  • Solution

  • Introduce generic material codes to facilitate purchases of once-off items without cataloguing those items
  • Conduct inventory analysis exercise to eliminate the unwanted material codes
  • Can develop standard based on formatted template and logical short description
  • Identified material items with missing information for data collection
  • Consolidate material types into single materials types, may be Stock and can differentiate by storage location

  • Common Approach on Master Data Development and Maintenance

    What type of Materials should be maintained in the Master Data?

  • All stock items
  • All price agreement items (PA)
  • All materials linked to Maintenance & Production Bill of Material (BOM)
  • Insurance spares
  • Project surplus, which is intend to consumption near future
  • All frequently purchased Non-Stock items. This allows the system to keep the specifications of the material items and provides sufficient purchasing history details to facilitate development of price agreements and supporting negotiations
  • What type of Materials should be maintained in the Master Data as specific record?

    Whether the consumption frequency may be high but there is no value in tracking and analyzing the spend of that material individually.
  • Materials where specifications change constantly (high product obsolescence rate) like communication, computer hardware’s, cameras, etc.
  • Materials, which are low spend and low risk such as stationeries, refreshment items, uniform, kitchenware, etc.
  • What type of Materials should be maintained the Generic Material Master Data?

  • Material items purchased once off or once in a while need
  • Capital items
  • Frequently purchased items where there is no value in tracking and analyzing the spend of that materials individually
  • To ensure the high quality master Data, policy on authorization for creation, and amendment of materials is to be documented.

    Why we need to Amend the Data often?

    Basically reality of the data is more like the following :

  • Data may not be transactional, but it does change frequently due to changing design, specifications, Interchangeability or continuous improvements.
  • Cross applications / other plant users may need the same elements

  • Key Challenges

    Examples :

  • Unstructured material specification
  • o No pre-defined standard format to capture material specification
  • Not possible to search the material by characteristics
  • Low quality material specification
  • Incomplete & Inaccurate specification
  • Identical material item are created with different material number due to different material categories / types (stock, direct charge, project and surplus material)
  • Unable to identify common items across business locations due to different material codes
  • Duplicate material codes representing identical items exist in the catalogue
  • Does not facilitate inventory sharing due to duplicate material codes
  • Potentially overstocking within business location
  • Master data controller competency issues
  • Slow master data creation response time during the decentralized process
  • Inadequate software used to submit and track the data creation request
  • Resolutions

  • Develop formatted template text
  • Perform the data conversion / migration exercise to reformat the material specification
  • o Identify material line items with missing information for data collection


    Key Challenges

    The data migration activity will reformat the existing material specification according to the formatted template text. This will :
  • Ensure a high quality material specification (i.e. critical specification is captured)
  • Enable the capability of searching via characteristic values
  • 2

    Missing Data Collection

      During data conversion activity, the conversion team could identify and segregate out a list of missing data line items, whereby the existing material specification does not have all the information to map the mandatory characteristics.


    Source of Missing Data collection

  • Plant information / internal database
  • Physical verification
  • engineering drawings / other non-structured data sources
  • web search
  • The missing data collection is an important activity that needs to be carryout in order to realize the following business value :
    High quality and accurate specification
  • Facilitate common understanding on material specification between relevant parties
  • Reduce the unnecessary clarification between the buyers and the suppliers
  • Prevent reserving / purchasing of items with wrong specification due to incomplete data, thus minimize unproductive hours or equipment downtime
  • Enable Business Information sharing group wide
  • Promoting inventory sharing across the group and thus reduce inventory holdings
  • Promoting bulk purchasing and establishment of group-wide Price Agreement, thus reduce purchasing costs
  • Importance of High Quality Data / Specification

    Actual Gasket Required by user (with ribs) Gasket Delivered (without ribs)


    Actual Gasket Required by user (with ribs) The Proper Material Specification


    Importance of High Quality Data / Specification


    Material Categories Consolidation

    The material categories / types consolidation involves a revamp of the concepts to segregate the stock and non-stock items in the system.

    For defining identical materials under one material number, thus facilitates materials information and actual inventory sharing across business units.


    Our Data Management Methodology

      Material Management MethodologyData Analysis


    Our Data Management Methodology

      Data Analysis :

    Data Analysis / Check are designed to conduct a data analysis on clients sample data and provide total visibility into the quality, characteristics, content, etc.
    It will analyze carefully the current master database to help identify the problems and establish the course of action. It includes reviewing data information, recommended solutions, and then presenting how we can help you to achieve your requirements.
    Data Conversion :

    Cleansing, Standardization, & Enrichment

    Data Cleansing

    The existing data may not have consistent format since it is often being derived from various sources. It may contain duplicate information as well missing or incomplete information. Cleanse and normalize content to achieve accuracy, consistency and proper understanding of the data. Also it’s a process of organizing the data, which will ensure enrichment of your data which are up to date, accurate, and complete.
    Data Enrichment

    It may need to gather the information from various sources, such as manufacturers, suppliers, physical verification, user input, etc. Append the additional data, thereby increasing the value added information and Data enrichment will make significant value to your data.
    It may need to gather the information from various sources, such as manufacturers, suppliers, physical verification, user input, etc. Append the additional data, thereby increasing the value added information and Data enrichment will make significant value to your data.
    The data conversion / migration activity will take place in different steps :


  • Template Assignment

  • Assign the correct formatted template text
  • Data Transfer

  • Transfer the “free text” specification to the assigned formatted text template
  • Missing Data Collection

  • Collect missing data by onsite team / client if existing material specification is incomplete
  • Perform trial data conversion and obtain end-user acceptance

  • Our Data Management Methodology

  • Conversion

  • Perform trial data conversion and obtain end-user acceptance
  • Quality Check

  • To assure correct template is used
  • To assure the specification is transferred correctly
  • To standardize the specification
  • Data De-duping

    Data Migration

      Project Assumptions

        Project Structure
      The team is set up as a coherent whole but is organized on a discipline basis (Mechanical / Electrical / Instrumentation / Chemicals). Teams will be manned flexibly, but will carry responsibility for designated areas. The entire project will be co-ordinate by the Project Manager who will be responsible for the performance of the entire team.
      • Project manager
      • Project lead engineer
      • Senior material engineer
      • Material engineer
      • Domain Specialist / Experts
      • QA / QC Engineer
      • Software engineer
      • Document controller
    Project Implementation Plan
    • Client and consultant will identify their team members that will lead the initiatives
    • Consultant team with assistance from client, will correlate the entire process, developing methodology and process documents
    • The combined implementation team will setup any IT and Telecom connectivity between onshore (client business location) and offshore (consultant) location.
    • The client will participate in updating consultant team members due to any changes in data structure since completion of testing / pilot.
    • The complete existing Master Data details have to be collected from all the business locations, with location information.
    • Based on the collected information Consultant will determine the overall information requirements and missing data in the template format to onsite team for collect the information.
    • Correlate all the Master Data from the locations, scrutinize, cleanse and take the final master list, applicable commonly to all the locations.
    • Get the approval of each business location in the new format.
    • The documentation will be maintained by Consultant team on receipt and completed information on daily basis, which are submitted to Client project coordinator on daily or weekly basis which will allow for easy of tracking of various activities and for progress chasing.
    • Go live
    Nature of Work
    • Consultant will have access to Client internal database either online or a dump will be given and updates will be provided thereafter on a regular basis
    • Client will upload the input files to a secure Consultant FTP location. Consultant will return the files in a similar fashion
    • Consultant will deploy a client location based project lead responsible for the entire process.

    Reporting Information’s

        Consultant will work closely client to develop, implement and provide desired reporting requirements on an agreed upon frequency. A weekly management “dashboard” will be provided to allow for ease of tracking of various activities.

      Objectives of the Master Data Development and Maintenance

        The objectives serve as the key foundation for deriving value from the Procurement, Inventory, and Warehouse management and Transportation.
        • Standardization of consumables, equipment and spare parts across the plants
        • Prevention of duplication in the material database
        • Enables Inventory sharing and Optimization
        • Strategize material data management
        • Standardize policies and procedures
        • Ensure material data integrity
        • Provides rapid query, analysis, and reporting functionality required for MIS / Initiatives
        • Allows user to access multiple data sources and instantly transform the data into useful information for analysis
        The Clean and Quality Material Data …lays foundation for value added activities like :
          Inventory sharing and thereby optimization
        • Strategic sourcing
        • Bulk purchasing
        • e-procurement
        It Enhanced capability …through functions and processes of :
        • Centralized material data management
        • Collaborative Purchasing
        • Integrated Inventory management
        • Efficient warehousing and Transportation




        The Practice-Bangalore-Nagpur-www.thepractice.co.in is the coming together of over 30 years of individual experience in the SCM and IT-ERP ecosystem. This has brought a new insight into the OPERATIONS of the SCM-Procurement -Logistics-Warehousing- and Inventory Management function by companies – large and small.

        Backed by such rich and varied exposure, TPN brings a new experience to the Indian Supply Chain ecosystem combining the services and benefits of IT for the successful functioning of the SCM function whose primary objective would be to optimize all materials resources at the least possible cost and time with no compromise on quality.

        In view of this experience, TPN is confident of providing the desired solution to the customer along with Business Consulting to design and implement an optimum solution in the desired time-frame. The team members have vast ‘hands-on’ experience in Procurement, Warehousing , Inventory, Logistics domain over 30 years in India and overseas.

        The Team has played Pivotal Role in establishing from scratch the complete Supply chain department in various verticals ranging from Mfg,Oil&Gas,Mining,Petrochemical,Public Sector and Health Care including policies and procedures,employee training and mentoring.

        In addition we also have specific industry exposure in the Procurement, Warehousing and Logistics function in the Oil & Gas and Mining (Copper + Coal + Iron Ore) sector of over 25 years having worked in the following Industries / Countries:

        • Brunei with Shell Brunei – EPC contractors
        • B.C. Gas Canada – EPC Contractors (a JV of SS Lootah of Dubai & B.C. Gas of Canada) for the Sharjah Gas Pipeline Project
        • Oman Gas Company, Oman
        • PDO-Oman
        • Dolphin Energy-Qatar- -a JV of Total and Qatar and UAE Governments
        • National Mining Co-Oman etc.
        • National Drilling Company, ADNOC (Abu Dhabi National Oil Company),
          Abu Dhabi.
        • Takreer (Abu Dhabi Oil Refining Company, ADNOC (Abu Dhabi Oil Refining Company, Abu Dhabi
        • Kudremukh Iron Ore Co., Bangalore India.

        During this period we have acquired extensive & enviable expertise in the following functional areas :

        1. Procurement – to achieve Transparency in Tendering Procedures & in the entire gamut of Purchasing Operations with an objective economy in Procurement.Development of automated tendering system to streamline Public procurement,reduce lead times and overall transparency of the process.
        2. Warehouse Management functions specifically in the area of process improvements, Optimization of Space and Inventory Holdings, with expertise in Inventory Planning and Control Techniques. They have also set up new Warehousing infrastructure in Sharjah / Oman and Brunei –.
        4. Logistics – to implement Systems for the up-keep of all Material Handling Equipment’s like Cranes, Fork-lifts etc., / Transport Trucks of various capacities etc.

        With the Expertise acquired over decades of extensive experience in the entire gamut of SCM, we are more than capable of meeting the demands of the customer.

        OFFERING OF THE THE PRACTICE- Value added Services

        Based on our core competence and prior experience we would like to offer our service in the following areas
        1. Business Consulting-ERP Consulting and Supply Chain Management-Audit of SCM systems and Process consulting in the following areas
        1. P2P process consulting and Optimisation.
        4. Indirect Procurement &SPEND ANALYTICS
        1. Procurement –Logistics -Business Process Outsourcing in the following areas:

        Some of the major value added services in the above areas offered by TPN are as under:

        1. Kitting of components/materials from various bought out vendors of CUSTOMER .Hub and spoke model of consolidation
        2. Purchase Order Management-Procurement Coordination-Supply –coordination-Expediting,Follow up.
        3. Spare Parts Management-Inventory Optimization-Master Data Management
        4. Warehouse Management and PROJECT DELIVERY,EXPEDITING.
        5. Vendor Managed Inventories.
        6. Indirect Procurement-Outsourcing-procurement of all indirect materials such as spares, consumables-except production.
        7. Order Management-Dispatching customer orders
        8. Spend Analytics-Analysis and Reporting for Decision Making


        The Practice, Nagpur is a fast growing Business Consulting and Outsourcing firm head quartered in Nagpur. The core team comprises of Chandra S Gangadharan and Mohammed Akbar who have seen together more than 25 years of domestic and international business experience in the Oil & Gas industry in Supply Chain Management. This team combines unmatched technical capability with sound business sense. Additional Details are given below:

        • Mr. Chandra S Gangadharan in addition to his 25 years of SCM experience has individually more than 10 years of international experience in the Oil & Gas industry having worked as Divisional Head in Brunei, Oman and Qatar.

        During this period he was associated with global EPC Oil & Gas contractors such as Masshor group-Brunei-Main contractors for Shell Brunei, WOOD GROUP-Muscat –Oman for PDO –Oman and Dolphin Energy Qatar a Total-Petroleum of France -Qatar and UAE JV.

        In his other experience Mr. Chandra has worked at senior positions in the SCM with leading MNCs such as SAINT GOBAIN GLASS INDIA, CHENNAI. Murugappa Group and DUNCAN Group, Kolkata.

        In his other experience Mr. Chandra has worked at senior positions in the SCM with leading MNCs such as SAINT GOBAIN GLASS INDIA, CHENNAI. Murugappa Group and DUNCAN Group, Kolkata.

        a) Set up complete two new warehouses in Brunei and Oman for Oil & Gas vertical complete from scratch including layout
        Design, equipment selection, erection and commissioning, transfer of materials and training of warehouse personnel

        b) Worked on concept design and implementation of Outsourcing model for Warehousing operations at Dolphin Energy –Qatar- a JV of TOTAL and QGPC –Qatar.

        c) Set up complete Item Master in Oil & Gas vertical at MB Petroleum Group-Muscat-leading EPC Contractors for PDO-OMAN.

        d) Inventory Optimization at Saudi Petrochem-Jubail -2010-Review of complete Warehouse Management and Inventory Stock levels for Methanol plant.

        • M. Mohammed Akbar: has a total of 30 years Professional experience & Proven Track Record in SCM. Started his career in SCM in a Mining Industry with state of the art Technology and an Annual Turn-over of 100 Billion US Dollars in the 70s. Has implemented Systems and Procedures. Career highlights are as under :

        a) Set-up 5 Multi-Locational Warehouses for Oman Gas Company, Oman.

        b) Set up complete Item Master for Oman Gas Co., Oman.

        c) Implemented Systems & Procedures which are being followed in Oman Gas till date. Inventory Management / Control systems were implemented and Re-order Level Fixed. The team of Inventory Personnel was trained to comply with the Control Systems to optimize Inventory.

        d) He has held senior positions of responsibility in reputed Oil & Gas Organizations mentioned below:
        * Section Head (Purchase) in National Drilling Co., ADNOC, Abu Dhabi.
        * Materials Manager in Lootah B.C. Gas Co., Dubai (a JV of Lootah of Dubai & BC Gas Canada)
        * Materials Manager in Oman Gas Co., Oman
        * Consultant Buyer in Takreer (Abu Dhabi Oil Refining Co.), Abu Dhabi

        TPN Service Differentiators

        Unique understanding of your business/industry vertical –Oil & Gas-Mining –Sector
        Business Value addition to the Process Audit through sharing of experience and best practices in the Oil & Gas –Mining industry.
        End to End Implementation .Training and Support capabilities.
        Right value proposition at optimal cost-TCO concept and ROI Road Map



        In view of the vast hands on experience of the company in working with World class Oil & Gas, Petrochemical and Mining industries, we have developed specialized expertise in Warehousing-Inventory& Spare parts Management to optimize the Inventory holdings and reduce down time of equipment’s.

        All our personnel are trained in the application the “5S Best Practices in Warehouse Management”- Quality Management system


        TPN believes in the concept of working with the Customer to develop and monitor a Road Map to establish the ROI on your investments by way of cost reductions and savings in Procurement & Inventory Optimization and Lean Warehouse concepts.
        Currently ‘The Practice’ Group has been awarded a Contract for Review ,Audit and of Warehousing-Inventory-Logistics function with Hazira – LNG and Ports-Hazira, www.haziralngandport.com. This is a joint venture of Shell and Total Petroleum of France located in Hazira-Gujarat. The scope also includes Implementations of the Audit recommendations. We are now in implementation phase.

        Scope of Deliverables

        1.Complete Outsourcing of Procurememt Warehouse Management-Logistics operations

        We would manage the entire Procurement warehousing, and Logistics operations with team of specialized and trained work force which would give you competitive advantage in cost of operations and improved availability of materials and reduction of downtime.

        Our area of work would be as follows
        • Concern over whether information in ERP-SAP/ORACLE matches the physical plant
        • Concern over whether the spares parts inventory levels are adequate to ensure the level of Uptime required in the plant
        • Desire to know if the quantity/accuracy of data available is sufficient to calculate the minimum spare parts and what the best method to do this is.
        • Desire to get a detailed estimate on the time, effort and cost to calculate the minimum spare parts which should be kept in Inventory

        The main deliverables would be as under:

        • Current Material Masters need to be Cleansed, Standardized, Enriched and De-Duplicated
        • BOMs need to have standard Structures
        • Standard Structures are required for Functional Locations and Equipment’s
        • PPM Task lists should have materials added
        • Physical Verification is needed to gather the information required to assign BOMs correctly
        • MRP method should be changed to Re-order Point Planning
        • New Projects Data Initialization process in Plant Maintenance & Materials Management needs to be strengthened & enforced
        • Continue creating Procurement Agreements for MRO materials, ensure all planning data on the material master is updated
        • Employ an Expert System/Decision Support application to assist in determining the optimal inventory management settings
        • Customer staff education required on MRP & Inventory Management Functionality within ERP-SAP/ORACLE


        The main benefits that the customer will achieve from using our services would be as under
        • Focus on core functions due to outsourcing leading better operating results.
        • Cost reduction due to outsourcing of warehousing operations.
        • Better availability of equipment’s due accurate planning and execution.
        • More accurate planning of Materials Required for WO-Work Order due to having complete BOMs
        • Reduced risk of not having the required materials in the warehouse (improving mean time to repair, reduced downtime)
        • Reduced risk of having obsolete materials in the warehouse
        • Reduced risk of not having the required Insurance Spare Parts in the Warehouse
        • Improved packaging of PPM tasks due to standard hierarchies in SAP
        • Improved ability to correctly identify the criticality of equipment and the required spare parts
        • Improved Installed Base to identify what items are installed in the plant, how many and where This is particularly important during modifications or phase out by Vendors
        • Improved management of inventory resulting in improved service levels for internal customers

        The Practice-Organization Chart


        Please find above the organogram of the senior management of the organization.
        They will be personally involved in the day to day operations of the -Procurement-Warehousing and Logistics OUTSOURCED operations of the customer

        1. Quality and HSE Systems

        As mentioned earlier we adopt the 5S Lean Management principles in our-SCM Warehouse Management practices.

        Thanking you and looking forward to hearing from you at the earliest,

        Yours faithfully



        This Audit shall study, identify & provide detailed report on;

          a) Identify required job resource and equipments as well as new infrastructure requirements;
          b) Skills / Competencies / Experience / Job Group level required as compared to industry in Warehouse staff in efficiently managing the warehouse operations with supporting industrial benchmark/examples.
          c) Suggest required job profiles and competencies of each profile;
          d) Identify and suggest suitability of outsourcing the role to service providers – if available in India and cost beneficial to HLPL.
          e) Warehouse infrastructure requirements in terms of size, layout, racking etc..
          f) Audit of Warehouse operations and Material Management in a view of changes in terminal operations/maintenance requirements as well as upcoming projects.
          g) Provide adequacy check of the systems being used by HLPL/HPPL Warehouse

        Other Objectives :

        This Audit shall study, identify & provide detailed report on;
        1. Study of Hazira regas operations and inventory stocking list and norms
        2. Suitability for conversion of current warehouses to revised needs / Greenfield warehouse construction
        3. Provide civil drawings and layout for such a warehouse that enables us to estimate costs and begin renovation / construction of same.
        4. Warehousing of project surplus items etc
        5. Interview of current warehouse staffing and assessing their suitability / competency for the expanded role
        6. a. Competency gaps if any and manner of addressing the same.
        7. Review of current inventory management processes and their efficacy
        8. a. Stock Out
          b. Ordering levels
          c. EOQ Ordering
          d. ABC Classifications
          e. Consumables and Capital

        2. Scope of Services

        In process to attain above objectives;

        a. The CONSULTANT or their designated personnel shall assess mainly following areas of activity during their initial visit to the COMPANY site.

        • Study the material consumption patterns of key material;
        • Study the current layout design of warehouse;
        • Interview key staff of warehouse and Contracts & Procurement team;
        • Method being followed the COMPANY for inventory management;
        • Internal controls employed for inventory;
        • Operational efficiency and effectiveness related to inventory management.
        • Process for being followed for purchasing, maintaining and disposing of different type of material
        • Method of storage of inventory, taking into account the different influencing factors.

        On the basis of the assessment done by CONSULTANT team they shall submit a comprehensive report to the management team of the COMPANY, they shall also provide COMPANY various cost effective suggestions to improve the general control environment.

        b. As a part of Assessment of existing system of the COMPANY, the CONSULTANT shall follow below mentioned activities.

        • Shall review existing policies and procedures of the inventory management functions, including: cycle count procedures, handling of returned materials, the scrap process, shipping and receiving, physical security, training, and handling of slow moving, excess and obsolete inventory, whichever is available with the COMPANY.
        • Shall conduct one to one discussion with key persons involved in inventory management system to understand the overall inventory management process;
        • Shall perform an initial flowcharting of the process as per the information provided by the personnel discussion;
          Shall review the space utilization and requirements considering up running of plant up to 10 MTPA capacity v/v existing warehouse facility plus renovation of temporary warehouse facility and need for the development of the same;
        • Shall update the flowchart periodically during the audit process as they grow their understanding about the processes.

        c.The flowchart prepared by the audit team shall include, but not limited to;

        • Each major process step as material receipt, counting of material, quality/inspection steps, bin report generation etc.
        • Involvement of different departments during each step, like inventory control, technical team, quality control, finance depart, procurement department etc.
        • Different Stages of review of reports.
        • Internal control points. Manual as well as system based
        • What are the weaknesses of the current system being followed?

        d. The CONSULTANT shall also test for the following inventory process control points and/or understand what alternative control(s) the company has in place.

        • Blind (counter does not know system inventory figure) cycle counts
        • Cycle count reconciliation
        • Write-off Authorization
        • Shipment forms created outside of the warehouse
        • Exception reports reviewed daily
        • Receiving dept. counts all items received
        • Quality control (QC) inspection on all items received
        • Goods recounted after QC inspection
        • All goods have movement tracking sheets
        • Carriers sign manifest documents

        e. The CONSULTANT shall check for the following inventory physical control points and/or understand what alternative control(s) the company has in place.

        • Access control .
        • Review of all personnel with access to the warehouse.

        f. Test for the following inventory system control points and/or understand what alternative control(s) the company has in place.

        • Bins/inventory accounts “blocked” during cycle counts
        • Shipping/receiving documents are scanned
        • Test system procedures for maintaining the completeness of all information initially captured at time of product receipt
        • Identification, tracking and destroying of scrap material.
        • Existing training program of warehouse personnel.
        • Review frequency of slow moving and absolute inventory.
        • Review approval process to authorize any adjustment to inventory balances in the system.
        • Shipment vs. packing slip – tracking of discrepancy.
        • Shipment vs. packing slip – tracking of discrepancy.
        • Material movement within the secured area
        • Review Minimum and Maximum stock level calculation procedure.
        • Verify the Fast, Slow and Non-moving classification of all stock as well as non-stock items.

        3.0 Deliverables

        a) Draft Audit Report within 1 week after completion of visit at site by CONSULTANT’s team.

        b) Final Audit Report shall include but not be limited to the following:-

        • Warehouse Resource Plan – Organogram with detailed Job profile, required competency, no of resources etc..
        • Detailed Process flow diagram
        • Identified weaknesses of the existing system
        • Recommendations for improvement of material management system including material movement (from In-GATE till storage shelf & back).
        • Warehouse infrastructure requirements in terms of size, layout drawings racking etc..
        • Identify and suggest suitability of outsourcing the role to service providers – if available in India and cost beneficial to HLPL.
        • List of additional Business Object reports along with existing reports with modifications.
        • Recommended procedure(s) for materials not properly accounted for in the inventory
        • Proposed method of determination of Reorder Level, Min/Max level
        • Proposed implementation plan & cost estimates thereof for implementation of recommendations made.
        • Their proposal for implementations recommendations.
        • List of sub vendors/Suppliers/Contractors that would provide the equipment/manpower for the changes/modifications/improvement.
        • Details of equipment/manpower etc, required for above & to operate warehouse in a most efficient way.

        4.0 Time Management

        a. The CONSULTANT shall deploy following category of their man power to complete the initial study within 7 to 10 working days

        • One Senior Materials Consultant,
        • One Senior Systems Consultant,
        • Two junior Consultants.

        The above mentioned numbers may vary based on CONSULTANT’S estimate to complete the activity.

        b. The COMPANY shall provide a co-coordinator to interact with CONSULTANT’s team for all clarifications or documents that may be required from time to time during the audit.

        c. The CONSULTANT shall submit a draft audit report to the Contracts and Procurement Manager of the COMPANY within 10 to 12 days after completion of initial study at COMPANY site.

        d. The Contracts & Procurement Manager shall give his comments on the initial report submitted by the CONSULTANT. On receipt of comments from the COMPANY, the CONSULTANT shall prepare the initial report after incorporating the comments received from the COMPANY Contracts & Procurement Manager and shall visit to COMPANY site ( Two of Senior officer of the CONSULTANT) for presentation against COMPANY team and submit final report to COMPANY.

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