Purchase Management

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Purchase Management

Purchase Management

Purchase Order as the first production stage

The first stage of making excellent products is the ordering of the right materials at the right time to receive them promptly. Unfortunately for the Company, the Purchase Orders was nothing more than a phone call to the merchant to bring whatever needed. Sometimes this phone call was given directly from the Company's shop floor on a shortage notice of raw materials. Consequently, the purchased materials arrived at the warehouse, accompanied by an invoice as an only piece of information. The errors of placing the right products in the warehouse but the wrong products into the software were inevitable. The additional problem of ordering the same products by another worried associate was also highly possible.

The need for Approvements and Prices Control.

We Order, firstly, internally every product or service that we need from a supplier. We are not always in the case of raw materials reordering so, following a purchase procedure is a necessity. The ordering associate has to provide into Mykosmos Form a subject, the Supplier, and the product or products, and the Role or Associate that will receive the Order. Attached to the form can be the offers from the Supplier or suppliers. The approving director also has to be defined. The forwarding of the Purchase Order sends it to the approver to confirm it. The approver can also specify additional approvers. In this last case, the other approvers must have the help of Prices Control Checking.

More Approvements and Cashier Notification

Every additional approver can define another, higher in the organization ranking, as another one to approve. Many times the receiving of products or services requires some direct deposits, in advance, to the bank accounts of the Supplier. In this latter case, the Cashier must also get a notification to act accordingly. During all those steps (activities) of Purchase Order procedure, the ordering associate and the Process Owner of the Purchase Order Procedure have full control of process status. Late attachments of additional documents or comments requested from approvers are possible.

Receiving of Products and Supplier Payments

When finally the Order is approved is sent to the Supplier. A notice for Products Waiting is send to the role that has to receive the goods. When the Products arrive the associate that receives them has only to fill-in in the Mykosmos form the actual quantities. The products descriptions and ids are already specified in the first place when the Order was defined, i.e., in the first step (activity) of the procedure. A notice for the purchase payment also goes to the accounting department that correlates the purchase improvement to the supplier payments.

Improve your Company by Correcting any systematic delays

The implementation of Purchase procedure can leave some lessons in our Company. The Chief Process Officer (or the Quality Manager) has to recognize any systematic causes that are the roots of purchase delays or misunderstandings. The CPO can start a Corrective and Preventive Actions procedure to ask for improvement proposals in various parts of the Company's processes. Those Preventive actions may also cause the insertion of more checkpoints during the execution of some activities or other procedures. The workflow of the procedure also can change to fit the changed or improved needs for the Purchase Process. Usually, every Mykosmos Process starts by using a minimal set of activities and forms to fill-in and later becomes a relatively composite set of actions and data.

Make Purchase Process provide Metrics.

The automation of the Purchase Process process allows for collecting some essential Metrics about times of responses of Suppliers, time of delivering services that they promised. For those Metrics, we can later put target values and assign them to Roles into the Company. Those targeted Metrics can then participate in the Company Objectives Metrics, particularly in the Processes Excellence section. Finally, through the Company Objectives, can join the final Balanced Scorecard and show their influence in the Company's excellence in the industry that participates.