SUMMER INTERNSHIP REPORT

On

STUDY AND APPLICATION OF THE PYMAC SYSTEM

@YAMAHA INDIA
Submitted in partial fulfillment for the requirement of the award of degree of

Master of Business Administration

By

Adeeb Rizvi
13-MBA-30
Under the Supervision of

Mr. Satyendra Jha

Executive Engineer- Purchase
India Yamaha Motor Pvt. Ltd.
DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF MANAGEMENT STUDIES AND RESEARCH
ALIGARH MUSLIM UNIVERSITY, ALIGARH
2014-15
Page 1

Table of contents
Acknowledgement
Executive Summary
1. Introduction11-20
1.1 YAMAHA Motor Company...13
1.2 India YAMAHA Motor Pvt. Ltd. ...17
2. Research Methodology...21-23
2.1 Objectives of the study.22
2.2 Research Design...22
2.3 Research Approach..22
2.4 Sources of data.22
2.5 Duration of study..22
2.6 Research Process..23
3. Purchase Department at India Yamaha Motor...24-35
3.1 Introduction to purchase department25
3.1.1 Part Development...25
3.1.2 Purchase Planning......................25
3.1.3 Non-Productive Purchase.......................25
3.1.4 Productive Purchase...26
3.2 Job Rules for Productive Purchase...27
3.2.1 For PYMAC card delivery confirmation.27
3.2.2 For control and monitoring of PYMAC manual order27
3.2.3 For controlling parts from vendor to stores.28
3.2.4 To ensure defect free components for assembly in case of
lot rejection.29
3.2.5 For initiating alternate source 30
3.3 Formats for Productive Purchase..31
3.3.1 Format for CKD planning sheet.......................31
3.3.2 Format for Order Confirmation Sheet.32
3.3.3 Format for vendor selection approval- existing part...33
3.3.4 Format for emergency air shipping.34
3.3.5 Format for Payment of Supplementary Bills...35

Page 2

4. PYMAC Education....36-63
4.1 A brief background of MRP....37
4.2 PYMAC @ YAMAHA...46
4.3 Purchase Procedures- Application of PYMAC...53
4.3.1 Gate Entry Invoice Checklist Retrieval..53
4.3.2 Before Shipment Order Retrieval..55
4.3.3 Order Retrieval...58
4.3.4 Y-Com System for Suppliers......61
5. Daily Operations...64-77
6. Conclusion, Recommendations & Limitations.78-80
Bibliography..81-82
Appendix...83-93
(A)
(B)
(C)
(D)

Abbreviations used in purchase department.84

Supplier codes...88
Item code/ part code..89
Model code93

Page 3

List of tables
Table No.

Table Title

Page No.

1.

Pending orders for Hemsons Engg. as on 14th July up to 30th July 2014

66

2.

Pending orders for J.L. Auto as on 14th July up to 30th July 2014

67

3.

Order details of Hemsons Engg. on 21st July morning

68

4.

Order details of Hemsons Engg. on 21st July evening

68

5.

Order details of Hemsons Engg. on 22nd July morning

69

6.

Order details of Hemsons Engg. on 22nd July evening

69

7.

Order details of Hemsons Engg. on 23rd July morning

70

8.

Order details of Hemsons Engg. on 23rd July evening

70

9.

Order details of Hemsons Engg. on 24th July morning

71

10.

Order details of Hemsons Engg. on 24th July evening

71

11.

Order details of Hemsons Engg. on 25th July morning

72

12.

Order details of Hemsons Engg. on 25th July evening

72

13.

Order details of Nicks India Tools on 21st July morning

73

14.

Order details of Nicks India Tools on 21st July evening

73

15.

Order details of Nicks India Tools on 22nd July morning

74

16.

Order details of Nicks India Tools on 22nd July evening

74

17.

Order details of Nicks India Tools on 23rd July morning

75

18.

Order details of Nicks India Tools on 23rd July evening

75

19.

Order details of Nicks India Tools on 24th July morning

76

20.

Order details of Nicks India Tools on 24th July evening

76

21.

Order details of Nicks India Tools on 25th July morning

77

22.

Order details of Nicks India Tools on 25th July evening

77

Page 4

List of figures
Figure No.

Figure Title

Page No.

1.1

Two-wheeler companies in the Indian market

12

1.2

Yamaha Motor Company, Iwata, Shizouka, Japan

13

1.3

Global operations of Yamaha Motor Company

16

2.1

Flowchart depicting the research process

23

3.1

Job rule for PYMAC card delivery confirmation

27

3.2

Job rule for control and monitoring of PYMAC manual order

27

3.3

Job rule for controlling parts from vendor to stores

28

3.4

29

3.5

Job rule to ensure defect free component for assembly in case of lot
rejection
Job rule for initiating alternate source

3.6

Format for CKD planning sheet

31

3.7

Format for Order Confirmation Sheet

32

3.8

Format for vendor selection approval- existing part

33

3.9

Format for emergency air shipping

34

3.10

Format for payment of supplementary bill

35

4.1

Material Requirement Planning (MRP) layout

39

4.2

Manufacturing Resource Planning (MRP II) layout

44

4.3

PYMAC system

46

4.4

Sample for Delivery Slip

47

4.5

Sample for Receipt Card

47

4.6

Sample for Inspection Report

48

4.7

Sample for Complete Report

48

4.8

BOM structure for PYMAC-III

49

4.9

Procedure for developing Item Key Structure

50

4.10

Inventory control procedure using PYMAC

50

4.11

PYMAC-III code definition

51

30

Page 5

4.12

Supplier/User (SU) code for the In-house shop

51

4.13

Platform (P/F) codes for PYMAC-III

52

4.14

Stock Point (S/P) codes for PYMAC-III

52

4.15

Screenshot showing IC menu in the main PYMAC menu

53

4.16

Screenshot showing Gate Entry Invoice Option in the IC Menu

54

4.17

Screenshot showing the Gate Entry Invoice details

54

4.18

Screenshot showing the MRP Menu in the main PYMAC menu

55

4.19

Screenshot showing Before Shipment Order Retrieval in the IC menu

56

4.20

56

4.24

Screenshot showing Before Shipment Order Details for a particular

supplier
Screenshot showing Before Shipment Order Details for a particular
person
Screenshot showing the procedure to save Before Shipment Order
Data
Screenshot showing the procedure to save Before Shipment Order
Data
Screenshot showing the MRP Menu in the main PYMAC menu

4.25

Screenshot showing the Order Retrieval Details

59

4.26

Screenshot showing the procedure to retrieve parts list when part no.
is unknown
Screenshot showing the part list with part list starting from 54B

60

61

4.29

Screenshot showing the homepage of Yamaha Communication

System
Screenshot showing Parts Order System among other options

4.30

Screenshot showing the main menu of Parts Ordering System

62

4.31

Screenshot showing the components of Order and Delivery

63

4.32

Screenshot showing the process of reprinting the delivery cards

63

4.21
4.22
4.23

4.27
4.28

57
57
58
59

60

62

Page 6

Acknowledgement

First of all I would like to thank The Almighty for He gave me this opportunity to work with Yamaha and led
to the successful completion of my training.
Next, I would like to extend my heartfelt gratitude to my supervisor Mr. Satyendra Jha, Executive EngineerPurchase, India Yamaha Motors Pvt. Ltd. for he took time from his busy schedule and spent time with me to
teach various things about the purchase operations.
I would also like to thank Mr. Anil Jain, Senior Manager-Purchase, India Yamaha Motor Pvt. Ltd., for his
never ending support during the entire course of this training.
I would also like the thank Mr. Parwez Hussain, Corporate Head-HR, Continental Devices India Limited, and
Mr. Neil Mani Malla for they arranged for my training and for their continuous support during the entire
training.
I would be failing in my duty if I do not thank my parents, my siblings and my friends for their constant
encouragement in the accomplishment of this report.
Lastly, I would like to thank my teachers, Prof. Jamal A. Farooqui and Dr. Asif Akhtar for they imparted
knowledge of operations management without which it would have been next to impossible for me to
understand the intricacies of the purchase operations at India Yamaha Motor Pvt. Ltd.

Adeeb Rizvi

Page 7

Executive Summary

This report is about the things I have learnt and the work that I have done during my 2 months stay at India
Yamaha Motor Pvt. Ltd., Surajpur plant.
It gives a description about the working of Yamahas own Manufacturing Resource Planning (MRP) system,
PYMAC (PAN Yamaha Manufacturing Control) which is used to place the orders according to the production
schedule and to coordinate with the vendors to ascertain the on time supply of raw material and other parts.
It also discusses about the purchase department of Yamaha and its functioning which includes placing of
orders according the production schedule, cost planning of spare parts and other integral parts and to
communicate this change in prices to the vendors through a price confirmation sheet (PCS), procurement of
non-productive parts and procurement of productive parts, with a special description of the productive part
procurement.
This report also details about the day-to-day purchase operations. I was working in the productive part
procurement department, where in the last week. I was supposed to monitor the condition of the parts in the
inventory on a daily basis and coordinate with the vendors to ensure immediate supply of the critical parts.

Page 8

Faculty of Management Studies and Research

Aligarh Muslim University, Aligarh

Declaration

I, Adeeb Rizvi, hereby declare that this report is an original work of mine and contains details about the things
I have learnt and the work I have done during my two months stay at India Yamaha Motor Pvt. Ltd.

I also declare that this report will only be submitted in the ALIGARH MUSLIM UNIVERSITY for the partial
fulfillment of the award of the degree of Master Of Business Administration (M.B.A.) and will not be
submitted anywhere else for the award of any other degree.

Adeeb Rizvi

Page 9

Chapter-1
Introduction

Page 10

Introduction
India is the second largest manufacturer of motorbikes in the world after China. The motorbikes market is
considered as a big bull of Indian automobiles industry. In India, the share of motor bikes in the two-wheeler
industry has risen to 80% from 30% in the last decade and a half, during which annual period sales of
motorbikes in the country have grown by a multiple of 13.
Strong players like Hero Honda, Bajaj Auto, TVS, Yamaha India etc. aim to provide efficiency and comfort
ability without compromising on the fun and thrill of riding. These companies provide various variants of
motorbikes to satisfy all the types of consumers in the country. In India, four different variants of motorbikes
are available in the market with the power engines of 100cc, 125cc, 150-250cc and above 250cc bike.

Fig. 1.1 Two-wheeler companies in the Indian market

Page 11

1.1

YAMAHA Motor Company, Japan

Yamaha Motor Company Limited, is a Japanese manufacturer of motorcycles, marine products such as boats
and outboard motors, and other motorized products. The company was established in 1955 upon separation
from Yamaha Corporation, and is headquartered in Iwata, Shizuoka, Japan. Yamaha Motor conducts global
development, production and marketing operations through 109 consolidated subsidiaries as of 2012.
Led by Genichi Kawakami, the companys first president, Yamaha Motor began production of its first product,
the YA-1 , in 1955. The 125cc motorcycle won the 3rd Mount Fuji Ascent Race in its class, and launched a
legacy by which the company continues to pursue motorsports as a means to accelerate development.

Fig. 1.2 Yamaha Motor Company, Iwata, Shizuoka, Japan

Page 12

Yamaha Motors current lineup of products includes motorcycles, scooters, electrically power assisted
bicycles, boats, sail boats, personal watercrafts, pools, utility boats, fishing boats, outboard motors, 4-wheel
ATVs, recreational off-highway vehicles, racing kart engines, golf cars, multi-purpose engines, generators,
water pumps, snowmobiles, small-sized snow throwers, automobile engines etc.
The company is also involved in the import and sales of various types of products, development of tourist
businesses and management of leisure, recreational facilities and related services.
Yamaha Motors has two core areas of technology small engine technology originating from motorcycle
development, and FRP process technology originating from boat manufacturing. Further to this, Yamaha
Motor has expanded into developing control technology and component technology in order to build a multiaxial business structure while at the same time pursuing globalization of our corporate activities. Small engine
technology is now implemented in new fields such as marine engines, RVs, and other power products, while
FRP process technology is now used for pool manufacturing and personal vehicle exteriors.
The motorcycle, used as a daily mode of transport or as an essential partner in leisure and sporting activities,
has been at the core of Yamaha motor since the founding of the company. The demand in the type of
motorcycle varies between regions, for instance the North American market demands cruisers, the European
market tourers, and the Oceania market requires dual-purpose sports models (both on and off road). To meet
these varying demands of the worldwide market, we have a wide range of motorcycle lineups available.

Key Products
Motorcycles
Yamaha's first motorcycle was the 1 YA-1, which was a copy of the German DKW RT125, and had a 125 cc,
single-cylinder two-stroke engine. It was launched in February 1955 and the bike won its first race, the Mount
Fuji Ascent Race, in July 1955.[3] Yamaha continued producing two-stroke engines until it launched the XS1 in 1969, with a 650 cc two-cylinder four-stroke engine, using expertise that it gained doing engine
development work for Toyota. In 1998 Yamaha marketed a revolutionary 1000cc four cylinder road bike
called the YZF 'R1', this model introduced a new style of gearbox design which shortened the overall length of
the motor/gearbox case, thereby allowing a more compact unit. This, in turn allowed the motor to be placed in
the frame far enough forward to compliment good handling in a short wheel-based frame, a revolutionary step
forward in motorcycle design[4] In 1979, the XT500 won the first Paris-Dakar Rally.[5]

Page 13

In 1995, Yamaha announced the creation of Star Motorcycles, a new brand name for its cruiser
series of motorcycles in the American market. In other markets, Star motorcycles are sold
under the Yamaha brand.
In 2007, Yamaha officially established the Philippine operations and distributes Yamaha
motorcycles under the corporate name of Yamaha Motor Philippines, Inc.
Today, Yamaha produces scooters from 50 to 500 cc, and a range of motorcycles from 50 to
1,900 cc, including cruiser, sport touring, sport, dual-sport, and off-road.
Racing
In motorcycle racing Yamaha has won 36 world championships, including 3 in Moto-GP and 9 in the
preceding 500 cc two-stroke class, and 1 in World Superbike. Yamaha riders include Giacomo Agostini, Bob
Hannah, Heikki

Mikkola, Kenny

Roberts, Eddie

Lawson, Wayne

Rainey, Jeremy

McGrath, Stefan

Merriman, Phil Read, Chad Reed, Ben Spies, James Stewart and currently Jorge Lorenzo and Valentino Rossi.
The Yamaha YZ450F won the AMA Super-cross Championship two years in a row, in 2008 with Chad Reed,
and 2009 James Stewart. Yamaha was the first to build a production mono-shock motocross bike (1975 for 250
and 400, 1976 for 125) and one of the first to have a water-cooled motocross production bike (1977 in works
bikes, 1981 in off-the-shelf bikes).
Since 1962, Yamaha made production road racing Grand Prix motorcycles that any licensed road racer could
purchase. In 1970, non-factory privateer teams dominated the 250 cc World Championship with Great
Britain's Rodney Gould winning the title on a Yamaha TD2.
Yamaha also sponsors several professional ATV riders in several areas of racing, such as cross country racing
and motocross. Yamaha has had success in cross country with their YFZ450, ridden by Bill Ballance, winning
9 straight titles since 2000. Yamaha's other major rider, Traci Cecco, has ridden the YFZ450 to 7 titles, with
the first in 2000. In ATV motocross, Yamaha has had success with Dustin Nelson and Pat Brown, both who
race the YFZ450. Pat Brown's best season was a 3rd place title in 2007, while Nelson has had two 1st place
titles in the Yamaha/ITP Quadcross, one in 2006 and the other in 2008.
Yamaha produced Formula One engines from 1989 to 1997, initially for the Zakspeed team, in 1991 for
the Brabham BT60Y, in 1992 for the Jordan 192, from 1993 to 1996 for Tyrrell, and in 1997 for the Arrows
Page 14

A18. These never won a race, but drivers including Damon Hill, Ukyo Katayama, Mark Blundell and Andrea
de Cesarisscored some acceptable results with them.
Automobile Engines
Yamaha has built engines for other manufacturers' vehicles beginning with the development and production of
the Toyota 2000GT (1967) with the Toyota Motor Corporation. Also, the cylinder head from the Toyota 4AGE
engine was developed by Yamaha Motor Corporation and was built at Toyota's Shimayama plant alongside the
4A and 2A engines. [6] Some other high performance Toyota engines developed by Yamaha are the 1LR-GUE
engine found on the 2010-2012 Lexus LFA and the 2ZZGE engine found on the 1999-2006 Toyota Celica GTS. In 1984, executives of the Yamaha Motor Corporation signed a contract with the Ford Motor Company to
develop, produce, and supply compact 60 3.0 Liter DOHC V6 engines fortransverse application for the 1989
'95 Ford Taurus SHO.[7][8] From 1993 to 1995, the SHO engine was produced in 3.0 and 3.2 Liter versions.
Yamaha jointly designed the 3.4 Liter DOHC V-8 engine with Ford for the 1996'99 SHO. Since 2005
Yamaha produces a 4.4 Liter V8 for Volvo. The B8444S engines are used in the XC90 and S80 models. British
sportscar maker Noble also uses a bi-turbo version of the Volvo V8 in their M600.
Yamaha also tunes engines for other manufacturers, Toyota being one of them. Yamaha logos are, for instance,
found on the Toyota S engines.

Snowmobiles
In 2010, Yamaha was the only snowmobile manufacturer to use four-stroke engines across its range.[10] In
Canada though, there are still three models that Yamaha manufactures that are still two-stroke. They are the
Bravo, VK 540 and the Venture XL. Yamaha had introduced four-strokes to their line-up in 2003, and the lineup became four-stroke based for model year 2005. The RX-1, released in 2003, was the first performanceoriented four-stroke snowmobile on the market. It was not, however, the first modern four-stroke snowmobile
produced. That honor belongs to Arctic Cat for their Yellowstone Special, released in 2000, which was
designed as a rental sled that could meet Yellowstone National Park's stringent emission requirement.
However, Yamaha received much criticism for its weight disadvantage when compared to similar two-

strokes, despite its fuel economy and low-range torque. Yamaha is now on the cutting edge of four-stroke
technology with the introducing of their 80FI engine, which is equipped on the Phazer and Venture Lite
models. This engine has one of the highest specific output of any four-stroke in production, with 160 HP/L,
Page 15

Yamaha achieves this even without the use of a forced induction system. Yamaha is also a key player in the
"four-stroke wars", which are a series of advertisements from opponent Ski-Doo, who claim their E-tec and
power-tec equipped two-strokes are still cleaner and more efficient than four-strokes, while Yamaha still
claims the four-strokes are cleaner. Yamaha also broke a multi-year absence from sno-cross in the winter of
2006/2007 with their introduction of a factory race team headed by former Arctic Cat racer Robbie Malinoski.
Yamaha was the first brand to win with a 4-stroke in a professional snowcross race. This happened in 2006 at
the WPSA snow cross championship.

Fig. 1.3 Global Operations of Yamaha Motor Company

1.2

India YAMAHA Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. In August 2001, Yamaha India became a 100%
subsidiary of Yamaha motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an
agreement with YMC to become a joint-investor in the motorcycle manufacturing company India
Yamaha Motor Private Limited (IYM).
IYMs manufacturing facilities comprise of 2 State-of-the-art Plants at Faridabad (Haryana) and
Surajpur (Uttar Pradesh). The infrastructure at both the plants supports production of motorcycles and
parts for the domestic as well as overseas markets. The Surajpur plant was established in 1984. The
stateof-the-art assembly plant at Surajpur was inaugurated on 6th July09 and is spread over an area of
36,000 sq. mts. It has the capacity to produce 1 million motor cycles and scooters annually.

Page 16

This fully integrated assembly plant is built on the lines of Yamahas globally tried, tested and
successfully implemented standards and meets the global quality benchmarks. The plant has 3 vehicle
assembly lines and 4 engine assembly lines.
The Faridabad Plant was established in 1965 and was upgraded in 2008 for manufacturing of machined
parts like Gears & shafts, Crank, Clutch Assembly, Crank Case, Body Cylinder, Head Cylinder.
In April 2013, IYM established 2 functionally independent entities namely Yamaha Motor India Sales
Pvt. Ltd. (YMIS) that will cater to the sales and marketing needs of the company and Yamaha
Motor Research and Development India Pvt. Ltd. (YMRI) that is intended to increase Yamahas
manufacturing competitiveness through the establishment of an R&D headquarters in India.
With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a
countrywide network of over 400 dealers. Presently, its product portfolio includes YZF-R15 Version 2.0
(150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X, SZ-R & SZ-RR (153cc), SS125 (123cc), YBR
125 (123cc), YBR 110 (106cc), Crux (106cc) and scooter Ray (113cc) and Ray Z (113cc). Its import
portfolio includes VMAX (1,679cc), YZF-R1 (998cc) and FZ1 (998cc).

Yamaha Motor India Sales Pvt. Ltd.

In April 2013, India Yamaha Motor established a functionally independent sales and marketing entity
i.e. Yamaha Motor India Sales Pvt. Ltd (YMIS).
The newly formed Yamaha Motor India Sales Pvt. Ltd. (YMIS) is intended to further strengthen the
Sales & Marketing unit which is responsible for sales & promotion, after sales service and provision of
spare parts. It has been Yamahas constant endeavor to fortify its brand image and supersede customer
expectation. YMIS will continue to reinforce its relationship with the customers with its YES!
YAMAHA! Campaign which emphasizes on providing the Best 3S Experience Sales, Service and
Spare Parts so that the customer always appreciates Yamaha and accepts the brand like the word YES.
Yamaha Motor India Sales Pvt. Ltd. (YMIS) is currently responsible for the Sales and promotion of
YZF-R15 Version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X, SZ-R & SZ-RR (153cc),
SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc), Crux (106cc), Ray (113cc), Ray Z (113cc) and
Alpha (113 cc) Scooter. The import portfolio includes VMAX (1,679cc), YZF-R1 (998cc) and FZ1
(998cc).
The head office for YMIS is located in Chennai.
Page 17

Yamaha Motor Research and Development India Pvt. Ltd.

Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) has been established to function as
the motorcycle R&D headquarters for Yamaha Motor Co., Japan. This initiative is intended to reinforce
the global competitiveness of Yamahas engineering, manufacturing and marketing functions in India.
It was formally established on 18th February 2013 and has been functional since 1st Apr 2013. It is
currently operating from the headquarters of India Yamaha Motor Pvt. Ltd., Surajpur. .
YMRI is the fifth overseas R&D headquarters for Yamaha Motor Group following Italy, Taiwan, China,
and Thailand.
Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) functions as the core of the
Integrated Development Center (IDC) concept. In addition to R&D activities, global part sourcing
activities have been included into the IDC. The 1st such center was established as ASEAN Integrated
Development Center in Thailand in 2012.
YMRI will contribute to Yamaha global operations by focusing on optimum utilization of Indian
resources and developing new models best suited to Indian customer requirements

Vision,Mission and the Core Competencies

Vision
We will establish YAMAHA as the exclusive & trusted brand of customers by creating Kando
(touching their hearts) the first time and every time with world class products & services delivered by
people having passion for customers.
Mission
We are committed to:
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of YAMAHA products,
focusing on serving our customer where we can build long term relationships by raising their lifestyle
through performance excellence, proactive design & innovative technology. Our innovative solutions
will always exceed the changing needs of our customers and provide value added vehicles.
Page 18

Build the Winning Team with capabilities for success, thriving in a climate for action and delivering
results. Our employees are the most valuable assets and we intend to develop them to achieve
international level of professionalism with progressive career development. As a good corporate citizen,
we will conduct our business ethically and socially in a responsible manner with concerns for the
environment.
Grow through continuously innovating our business processes for creating value and knowledge across
our customers thereby earning the loyalty of our partners & increasing our stakeholder value.

Core Competencies
Customer #1
We put customers first in everything we do. We take decisions keeping the customer in mind.
Challenging Spirit
We strive for excellence in everything we do and in the quality of goods & services we provide. We
work hard to achieve what we commit & achieve results faster than our competitors and we never give
up.
Team-work
We work cohesively with our colleagues as a multi-cultural team built on trust, respect, understanding &
mutual co-operation. Everyones contribution is equally important for our success.
Frank & Fair Organization
We are honest, sincere, open minded, fair & transparent in our dealings. We actively listen to others and
participate in healthy & frank discussions to achieve the organizations goals.

Page 19

Chapter-2
Research methodology

Page 20

2.1 Objectives of the study

To study the productive purchase operations at India Yamaha Motor Pvt. Ltd.
To study and analyze the application of the PYMAC system in the Purchase Department at India
Yamaha Motor Pvt. Ltd.
To monitor the material supplied by the vendors
To propose/suggest improvements in the existing system

2.2 Research Design

A research design is considered as the framework or plan for a study that guides as well as helps the data
collection and analysis of data. The research design may be exploratory, descriptive and experimental. The
research design employed here is of descriptive type as the research focuses on the existing purchase processes
and the MRP system used in the purchase department at India Yamaha Motor, Surajupur, Greater Noida.
This research also provides certain conclusions, recommendations and limitations during the entire course of
the training.

2.3 Research Approach

The research approach used in this study is case based. The research began with the study of the PYMAC
manual where the basics of the MRP system of India Yamaha Motor were learnt. In the next part, the
productive purchase operations were learnt from the Divisional Functional Manual (D.F.M) and finally
monitoring of the material supplied by the vendors was done for two vendors.

2.4 Sources of data

Primary data has been used for the purpose of monitoring the supplies from the vendors.

2.5 Duration of study

The duration of study is k, i.e. from 2nd June 2014 to 26th July 2014

Page 21

2.6 Research Process

Attached with the purchase department

after initial induction

Study of the purchase procedures and

other formats from the Divisional
Functional Manual- Purchase

Study of the PYMAC system from the

PYMAC manual

Meeting with the suppliers at the vendor

end to clear the pending stock

Real time monitoring of the parts

supplied by the vendors and reporting to
the supervisor

Fig. 2.1 Flowchart depicting the research process

Page 22

Chapter-3
Purchase department at India
Yamaha motor

Page 23

3.1 Introduction to Purchase Department

Purchase Department provides services to all major functions of the plant. It has always strived through
meticulous care and good planning to achieve departmental objectives, which broadly aim to give the company
a competitive advantage on Quality, Cost and Delivery (QCD).
To achieve the above objective, the purchase department is divided into 4 major sections:

Part Development

Purchase Planning

Non-Productive Purchase

Productive Purchase

3.1.1 Part Development

This section mainly deals with

Selection of alternate vendors from existing suppliers of India Yamaha Motors(IYM) for cost
reduction/capacity enhancement or quality improvement

Development of parts for variants of existing models/alternate sourcing/design change of existing

parts.

Indigenization of CKD parts.

3.1.2 Purchase Planning

This section mainly deals with budgeting, forecasting and cost control and also all purchase related MIS
preparation and presentations to the top management.
3.1.3 Non-Productive Purchase
This section mainly deals with timely ordering and procurement of all materials, paints, chemicals, oils
and lubricants, machinery spares and various other consumables used in the plant.

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3.1.4 Productive Purchase

This section mainly deals with

Scheduling and procurement for all existing direct parts as per PYMAC orders.

Spare parts procurements as per PYMAC orders.

Coordination with SQA for vendor quality issues and with the stores for logistics improvement
and control of lot size for controlling the inventory.

Liasoning with finance for settlement of vendors financial issues like reconciliation/issuance of
Sales Tax forms.

Page 25

3. 2 Job Rules for Productive Purchase

3.2.1 Job rule for PYMAC card delivery confirmation

Fig. 3.1 Job rule for PYMAC card delivery confirmation

3.2.2 Job rule for control and monitoring of PYMAC manual order

Fig. 3.5 Job rule for control and monitoring of PYMAC manual order
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3.2.3 Job rule for controlling parts from vendor to stores

In this job rule, we have two decision points, the first one being at the initial stage where
confirmation from vendor for receiving of schedules is done. If the schedules are not received by the
vendors, then the purchase department coordinates with the IT department, if yes then we proceed to
the next step. The second decision point occurs at the time of inspection. If the quality is OK, the parts
are sent to the store locations, but if it is not, the lot is sent for segregation where the OK are parts are
sent to stores and the faulty ones are sent back to the vendors with a rejection tag.

Fig. 3.3 Job rule for controlling parts from vendor to stores

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3.2.4 Job rule to ensure defect free component for assembly in case of lot rejection
This job rule is somewhat similar to the previous one. Here the Production Quality
Engineering (PQE) department intimates the purchase department about the non-conformance of parts
and necessary actions as shown in the flow chart are taken by the purchase department.

Fig.3.4 Job rule to ensure defect free component for assembly in case of lot rejection

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3.2.5 Job Rule for Initiating Alternate Source

Fig.3.5 Job Rule for Initiating Alternate Source

Page 29

3.3 Formats for Productive Purchase

3.3.1 Format for CKD Planning Sheet
IYM Ordering Month
YMC Production Month
CKD Order

Shipment Plan and Date

Opening Balance at IYM

Receipt at IYM

Total Receipt at IYM

Production at IYM
C.B. QTY.
In Transit
Simulation Rate
Lot Size

Fig. 3.6 Format for CKD planning sheet

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3.3.2 Format for Order Confirmation Sheet

Ref. No.:
Date:
Supplier Name:
From:
SUB: Order Confirmation for CKD Production
We are pleased to confirm our CKD orders as below
Forecast
Models

CKD set code

Firm order for N

month

N+1

N+2

N+3

N+4

kindly send us your confirmation for the above order

Fig. 3.7 Format for Order Confirmation Sheet

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3.3.3 Format for vendor selection approval- existing part

Part Name

Part No.

Category
Vendor Details
Name of Vendor
Vendor Code
Existing SOB
Proposed SOB
Price per pc.
Mould cost
Annual Volume
Quality/Delivery Rating
Cost impact to IYM
Address
Quality issue with the existing supplier

Delivery/capacity issue with existing supplier

Reason for change/selection
VA/VE (Cost Down Activity)

Others (specify)

Remarks (if any)

Fig. 3.8 Format for vendor selection approval- existing part

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3.3.4 Format for emergency air shipping

Emergency Air Shipping

Material Description

Qty.

Vendor Name

Location

Estimated cost of air shipping

Cost of air shipping to be borne by
Estimated time (air shipping)

IYM

Vendor
Estimated Time

The above material is being purchased on urgent basis due to the following reasons
Reason & Background
Machine under break-down
Urgent requirement to adjust against rejection
preventive maintenance during shut-down
Sudden requirement etc.
Others (please specify)
Remarks:

Fig.3.9 Format for emergency air shipping

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3.3.5 Format for payment of supplementary bill

Payment of Supplementary Bill

Request No.

Date

Supplementary Bills of the following vendors for releasing payment accordingly

S.No.

Part
Name

Part No.

Supplementary
Invoice No.

Date

Invoice
Amount

Invoice
Qty.

Remarks

Fig.3.10 Format for payment of supplementary bill

Page 34

Chapter-4
Pymac education

Page 35

4.1 A Brief Background of MRP

Material requirements planning (MRP) is a production planning and inventory control system used
to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct
MRP by hand as well.
An MRP system is intended to simultaneously meet three objectives:

Ensure materials are available for production and products are available for delivery to customers.

Maintain the lowest possible material and product levels in store

Plan manufacturing activities, delivery schedules and purchasing activities.

History
Prior to MRP, and before computers dominated industry, reorder-point/reorder-quantity (ROP/ROQ) type
methods like EOQ (Economic Order Quantity) had been used in manufacturing and inventory management. In
1964, as a response to the TOYOTA Manufacturing Program, Joseph Orlicky developed Material
Requirements Planning (MRP). The first company to use MRP was Black & Decker in 1964, with Dick Alban
as project leader. In 1983 Oliver Wight developed MRP into manufacturing resource planning (MRP
II).[1] Orlicky's book is entitled The New Way of Life in Production and Inventory Management (1975). By
1975, MRP was implemented in 700 companies. This number had grown to about 8,000 by 1981. In the 1980s,
Joe Orlicky's MRP evolved into Oliver Wight's manufacturing resource planning (MRP II) which brings
master scheduling, rough-cut capacity planning, capacity requirements planning, S&OP in 1983 and other
concepts to classical MRP. By 1989, about one third of the software industry was MRP II software sold to
American industry ($1.2 billion worth of software).

The Scope of MRP in Manufacturing

The basic functions of an MRP system include: inventory control, bill of material processing, and elementary
scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing,
purchasing and delivering activities.
"Manufacturing organizations, whatever their products, face the same daily practical problem - that customers
want products to be available in a shorter time than it takes to make them. This means that some level of
planning is required."
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Companies need to control the types and quantities of materials they purchase, plan which products are to be
produced and in what quantities and ensure that they are able to meet current and future customer demand, all
at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money.
A few examples are given below:

If company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may
be unable to meet contract obligations to supply products on time.

If a company purchases excessive quantities of an item, money is wasted - the excess quantity ties up cash
while it remains as stock and may never even be used at all.

Beginning production of an order at the wrong time can cause customer deadlines to be missed.

MRP is a tool to deal with these problems. It provides answers for several questions:

What items are required?

How many are required?

When are they required?

MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced
internally, that are components of more complex items.
The data that must be considered include:

The end item (or items) being created. This is sometimes called Independent Demand or Level 0 on BOM
(Bill of materials).
How much is required at a time.

When the quantities are required to meet demand.

Shelf life of stored materials.

Inventory status records. Records of net materials available for use already in stock (on hand) and

materials on order from suppliers.

Bills of materials. Details of the materials, components and sub-assemblies required to make each product.

Planning Data. This includes all the restraints and directions to produce the end items. This includes such
items as: Routing, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push
commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, Economic Order Quantity), Scrap
Percentages, and other inputs.

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Outputs
There are two outputs and a variety of messages/reports:

Output 1 is the "Recommended Production Schedule" which lays out a detailed schedule of the required
minimum start and completion dates, with quantities, for each step of the Routing and Bill Of Material
required to satisfy the demand from the Master Production Schedule (MPS).

Output 2 is the "Recommended Purchasing Schedule". This lays out both the dates that the purchased items
should be received into the facility AND the dates that the Purchase orders, or Blanket Order Release
should occur to match the production schedules.

Messages and Reports:

Purchase orders. An order to a supplier to provide materials.

Reschedule notices. These recommend cancelling, increasing, delaying or speeding up existing orders.

Fig. 4.1 MRP Layout

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Problems associated with MRP systems

First problem with MRP systems is the integrity of the data. If there are any errors in the inventory data,
the bill of materials (commonly referred to as 'BOM') data, or the master production schedule, then the output
data will also be incorrect ("GIGO": Garbage In, Garbage Out). Data integrity is also affected by inaccurate
cycle count adjustments, mistakes in receiving input and shipping output, scrap not reported, waste, damage,
box count errors, supplier container count errors, production reporting errors, and system issues. Many of these
type of errors can be minimized by implementing pull systems and using bar code scanning. Most vendors in
this type of system recommend at least 99% data integrity for the system to give useful results.
Second problem - systems is the requirement that the user specify how long it will take for a factory to make a
product from its component parts (assuming they are all available). Additionally, the system design also
assumes that this "lead time" in manufacturing will be the same each time the item is made, without regard to
quantity being made, or other items being made simultaneously in the factory.
A manufacturer may have factories in different cities or even countries. It is not good for an MRP system to
say that we do not need to order some material, because we have plenty thousands of miles away. The
overall ERP system needs to be able to organize inventory and needs by individual factory, and intercommunicate the needs in order to enable each factory to redistribute components, so as to serve the overall
enterprise.
This means that other systems in the enterprise need to work properly, both before implementing an MRP
system and in the future. For example, systems like variety reduction and engineering, which makes sure that
product comes out right first time (without defects), must be in place.
Production may be in progress for some part, whose design gets changed, with customer orders in the system
for both the old design, and the new one, concurrently. The overall ERP system needs to have a system of
coding parts such that the MRP will correctly calculate needs and tracking for both versions. Parts must be
booked into and out of stores more regularly than the MRP calculations take place. Note, these other systems
can well be manual systems, but must interface to the MRP. For example, a 'walk around' stock intake done
just prior to the MRP calculations can be a practical solution for a small inventory (especially if it is an "open
store").

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The other major drawback of MRP is that takes no account of capacity in its calculations. This means it will
give results that are impossible to implement due to manpower or machine or supplier capacity constraints.
However this is largely dealt with by MRP II.
Generally, MRP II refers to a system with integrated financials. An MRP II system can include finite / infinite
capacity planning. But, to be considered a true MRP II system must also include financials.
In the MRP II (or MRP2) concept, fluctuations in forecast data are taken into account by including simulation
of the master production schedule, thus creating a long-term control.[3] A more general feature of MRP2 is its
extension to purchasing, to marketing and to finance (integration of all the functions of the company), ERP has
been the next step.
Solutions to Data Integrity issues
Bill of material - The best practice is to physically verify the bill of material either at the production site or by
un-assembling the product.
Cycle count - The best practice is to determine why a cycle count that increases or decreases inventory has
occurred. Find the root cause and correct the problem from occurring again.
Scrap reporting - This can be the most difficult area to maintain with any integrity. Start with isolating the
scrap by providing scrap bins at the production site and then record the scrap from the bins on a daily basis.
One benefit of reviewing the scrap on site is that preventive action can be taken by the engineering group.
Receiving errors
Manual systems of recording what has been received are error prone. The best practice is to implement the
system of receiving by ASN from the supplier. The supplier sends an ASN (Advanced Shipping Notification).
When the components are received into the facility, the ASN is processed and then company labels are created
for each line item. The labels are affixed to each container and then scanned into the MRP system. Extra labels
reveal a shortage from the shipment and too few labels reveal an over shipment. Some companies pay for ASN
by reducing the time in processing accounts payable.
Shipping Errors
The container labels are printed from the shipper. The labels are affixed to the containers in a staging area or
when they are loaded on the transport.

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Production reporting
The best practice is to use bar code scanning to enter production into inventory. A product that is rejected
should be moved to an MRB (material review board) location. Containers that require sorting need to be
received in reverse.
Replenishment
The best replenishment practice is replacement using bar code scanning, or via pull system. Depending upon
the complexity of the product, planners can actually order materials using scanning with a min-max system.

Manufacturing Resource Planning (MRP II)

Manufacturing resource planning (MRP II) is defined as a method for the effective planning of all resources of
a manufacturing company. Ideally, it addresses operational planning in units, financial planning, and has a
simulation capability to answer "what-if" questions and extension of closed-loop MRP.
This is not exclusively a software function, but the management of people skills, requiring a dedication to
database accuracy, and sufficient computer resources. It is a total company management concept for using
human and company resources more productively.

Key Functions & Features

MRP II is not a proprietary software system and can thus take many forms. It is almost impossible to visualize
an MRP II system that does not use a computer, but an MRP II system can be based on either purchased
licensed or in-house software.
Almost every MRP II system is modular in construction. Characteristic basic modules in an MRP II system
are:

Master production schedule (MPS)

Item master data (technical data)

Bill of materials (BOM) (technical data)

Production resources data (manufacturing technical data)

Inventories and orders (inventory control)

Purchasing management

Material requirements planning (MRP)

Page 41

Shop floor control (SFC)

Capacity planning or capacity requirements planning (CRP)

Standard costing (cost control)

Cost reporting / management (cost control)

Together with auxiliary systems such as:

Business planning

Lot traceability

Contract management

Tool management.

Engineering change control

Configuration management

Shop floor data collection

Sales analysis and forecasting

Finite capacity scheduling (FCS)

and related systems such as:

General ledger

Accounts payable (purchase ledger)

Accounts receivable (sales ledger)

Sales order management

(Distribution requirements planning) (DRP)

Automated warehouse management

Project management

Technical records

Estimating

Computer-aided design/computer-aided manufacturing (CAD/CAM)

CAPP

Page 42

The MRP II system integrates these modules together so that they use common data and freely exchange
information, in a model of how a manufacturing enterprise should and can operate. The MRP II approach is
therefore very different from the point solution approach, where individual systems are deployed to help a
company plan, control or manage a specific activity. MRP II is by definition fully integrated or at least fully
interfaced.

Fig. 4.2 Manufacturing Resource Planning (MRP II) Layout

Material requirements planning (MRP) and manufacturing resource planning (MRPII) are both incremental
information integration business process strategies that are implemented using hardware and modular software
applications linked to a central database that stores and delivers business data and information.

Page 43

MRP is concerned primarily with manufacturing materials while MRPII is concerned with the coordination of
the entire manufacturing production, including materials, finance, and human relations. The goal of MRPII is
to provide consistent data to all players in the manufacturing process as the product moves through the
production line.
Paper-based information systems and non-integrated computer systems that provide paper or disk outputs
result in many information errors, including missing data, redundant data, numerical errors that result from
being incorrectly keyed into the system, incorrect calculations based on numerical errors, and bad decisions
based on incorrect or old data. In addition, some data is unreliable in non-integrated systems because the same
data is categorized differently in the individual databases used by different functional areas.
MRPII systems begin with MRP, material requirements planning. MRP allows for the input of sales forecasts
from sales and marketing. These forecasts determine the raw materials demand. MRP and MRPII systems
draw on a master production schedule, the breakdown of specific plans for each product on a line. While MRP
allows for the coordination of raw materials purchasing, MRPII facilitates the development of a detailed
production schedule that accounts for machine and labor capacity, scheduling the production runs according to
the arrival of materials. An MRPII output is a final labor and machine schedule. Data about the cost of
production, including machine time, labor time and materials used, as well as final production numbers, is
provided from the MRPII system to accounting and finance (Monk and Wagner).

Benefits
MRP II systems can provide:

Better control of inventories

Improved scheduling

Productive relationships with suppliers

For design / engineering:

Improved design control

Better quality and quality control

Page 44

4.2 PYMAC @ YAMAHA

Whenever we talk of PYMAC, we need to know everything about it, right from the basics. The whole PYMAC
education is divided into following categories:

Introduction

BOM structure

Basic of the Item Key

Basic of Inventory

Code Structure

Introduction
Like many other manufacturing companies, India Yamaha Motor also uses indigenously developed MRP
system which they call as PAN YAMAHA Manufacturing Control or the PYMAC. It is an MRP system that
connects Yamaha Motor Company with its subsidiaries all over the world and with the suppliers as well.

Fig 4.3 PYMAC system

It isquite evident from the figure that how Yamaha Motor Company (YMC) uses PYMAC to coordinate with
its subsidiaries in other nations as well as its vendors all over the world. Any dispatch of material or parts
from the vendor end is updated by the vendors in this system and when the material reaches the Yamaha
premises, it is updated in the database and the information is available to te purchase department for further
use. How this happens is discussed in the subsequent chapters of this report.
Page 45

Before I go any further in this chapter, I would like to explain a very important component of the PYMAC
system- the PYMAC cards. Knowledge of PYMAC cards is a must to understand the whole PYMAC system.
These are the cards which contain all the information about the parts and the material being sent to the Yamaha
plant and are of four types:
1. Delivery Slip

This slip will be issued to the vendor at the time of MRP run
for 15 days. This slip will be scanned at the time of receipt
of material which subsequently will update the stocks on real
time. This slip contains all the details regarding the supplier,
the user, quantity of the material delivered, delivery date,
item number and order number.

Fig. 4.4 Sample for Delivery Slip

2. Receipt Card
This slip is an acknowledgement of the delivered material
and it will be provided to the vendor as a proof that the
vendor has delivered that particular material. This card
also contains the same details as the delivery slip.

Fig 4.5 Sample for Receipt Card

Page 46

3. Inspection Report
This is the card for Quality Assurance judgment. This card contains, along with others, the details regarding
the quality of the material delivered. This card help helps the workers and the vendors to know the level of
quality and take decisions on whether to accept or reject the material.

Fig. 4.6 Sample for Inspection Report

4. Complete report
This card is basically a compilation of all the other three cards and contains all the details of the delivery slip,
receipt slip and the inspection report. This will be used when production is complete for the desired order
number and has to be entered in the system.

Fig. 4.7 Sample for Complete Report

Page 47

B.O.M Structure
Bills Of Material (B.O.M) structure for the PYMAC module is based on the manufacturing group. For
example, if we wish to produce a motor cycle with model number 2S2700 which has two different colors with
model numbers 2S2700-010A for color A and 2S2700-010B for color B, then for colored motorcycle, similar
operations will be performed at a single spot on the assembly line. It is very clear from the figure below that,
for both the colors, engine operations are performed at one spot and the body group operations are performed
on another spot.

Fig. 4.8 BOM structure for PYMAC-III

Page 48

Item Key Structure

The item key in a PYMAC module is a
combination of the item number, supplier code and the
user code. In the item number, details about the model
type, classification number, revision number and color
number is given. The S/U code provides information
about the originating and the terminating points of the
material flow.

Fig. 4.9 Procedure for developing Item Key Structure

Inventory Control
In the PYMAC module, we have a two point
reporting system, where the real time inventory,
along with the inventory in transfer can be
checked. Once the receipt report is provided to the
vendor, the same is updated at P/F (a place where
the parts are received). From the platform, these
parts are then supplied to the work center where
the manufacturing processes take place. From the
work centers, the finished goods are the.
Fig. 4.10 Inventory Control procedure at Yamaha

transferred to the Stock-Point or the S/P (a place

where finished goods are stored). When the goods
are in transit, they are scanned as soon as they
leave the work centers. In this way, a two point
reporting takes place and we can have an access to
the real time inventory as well as the inventory in
transit.
Page 49

PYMAC-III Code Definition

The following tables clearly illustrates various codes for different item types, item class and item status.

Fig. 4.11 PYMAC-III code definition

Code Structure
Policy for the SU code setup (SJP)
This code is used to indicate the function that is to be
performed on the material. It is a 4-digit code where the
first digit is classified into three types- in-house shop,
local vendor and overseas procurement. The second
digit is classified according to the producing functions,
e.g. assembly, machining, painting etc. and the third and
the fourth digits are taken as the continued numbers. By
default, Surajpur factory shop has the digit for the
Fig. 4.12 Supplier/User (SU) Code of In-House
in-house shop as nine and the 3rd digit as zero. For example, if in a PYMAC schedule, the S/U code is
given as 9101, then it means that the particular assembly shop of the Surajpur factory for body assembly. Other
S/U codes for in-house shop of the Surajpur factory are shown in the table below.

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Policy for Platform (P/F) setup (SJP)

This code is used to indicate the platform
where the material has to be received once it
enters the Yamaha premises. It is a
combination of four alphabets and numerals.
The first character is P which is the initial
character for platform. The second one is a
digit and is same as the 2nd digit of the
corresponding SU code.

Fig. 4.13 Platform (P/F) Codes for PYMAC-III

The third one is the 4th digit of that same SU code and the fourth character comprises of letters from A-Y for
Surajpur plant and numbers from 0-9 for Faridabad plant.For example, a platform code P11A would mean
that the SU code for the same is 9101, and the mentioned platform is Body Assembly area in the Surajpur
plant for big/medium parts. Other PF codes along with their SU codes are given in the table below.

Policy for Stock-Point (S/P) setup for work center

This code is used to indicate the location where the
finished goods will be stored once they come out
from the respective work centers. It is a combination
of four alphabets and numerals. The first character is
S which is the initial character for Stock-Point.
The second one is a digit and is same as the 2nd digit
of the corresponding SU code. The third one is the
4th digit of that same SU code and the fourth
character comprises of letters from A-Y for Surajpur
Fig. 4.14 Stock Point (S/P) Codes for PYMAC-III

plant and numbers from 0-9 for Faridabad plant.

Page 51

4.3 Purchase Procedures @ INDIA YAMAHA MOTORS

4.3.1. Gate Entry Invoice
1. Open the PYMAC Launcher
2. From the IC menu, select Gate Entry Invoice Checklist Retrieval.
3. Choose class, gate, date, kind of list and data type.
4. Hit Retrieve.
5. A dialog box will open giving the details about which material has been shipped to Yamaha on
that particular date.

Fig. 4.15 Screenshot showing IC Menu in the main PYMAC Menu

Page 52

Fig. 4.16 Screenshot showing Gate Entry Invoice Option in the IC Menu

Fig. 4.17 Screenshot showing the Gate Entry Invoice details

Page 53

4.3.2. Before Shipment Order Retrieval (details about the pending quantity)
1. Open the PYMAC Launcher.
2. From the IC menu select Before Shipment Order Retrieval.
3. Choose the extraction period.
4. If we wish to get details about a particular supplier, we select the Supplier Code
5. .If we wish to get details about a particular list of suppliers which we deal with, we enter our
own person code (it was 32 in my case).
6. Hit retrieve.
7. Right click within the dialog box.
8. Select save as and save it as an excel file.

9. Monitor

from

the

supply

and

the

inventory

from

these

excel

files.

Fig. 4.18 Screenshot showing IC Menu in the main PYMAC Menu

Page 54

Fig. 4.19 Screenshot showing Before Shipment Order Retrieval in the IC Menu

Fig. 4.20 Screenshot showing the Before Shipment Order Details for a particular supplier
Page 55

Fig .4.21 Screenshot showing the Before Shipment Order Details for a particular person

Fig. 4.22 Screenshot showing the procedure to save Before Shipment Order Data
Page 56

Fig. 4.23 Screenshot showing the procedure to save Before Shipment Order Data

4.3.3 Order Retrieval (used to check order details of a particular part)

1. Open the PYMAC Launcher.
2. From the MRP menu select Order Retrieval.
3. Enter the Item Number and the supplier code.
4. Click on Retrieve.
5. Details about the order will be displayed.
# If complete item number is unknown, we can enter partial item number, then right click and then select
values list. A list of part numbers starting from 54B(say) will be displayed. Select the required part and hit
Retrieve.

Page 57

Fig. 4.24 Screenshot showing the MRP menu in the main PYMAC menu

Fig. 4.25 Screenshot showing the Order Retrieval details

Page 58

Fig. 4.26 Screenshot showing the procedure to retrieve parts list when part no. is unknown

Fig. 4.27 Screenshot showing the part list with part no. starting from 54B
Page 59

4.3.4 Y-Com system for suppliers (to issue delivery cards)

1. Open internet explorer or any other browser.
2. Enter the given link.
3. Enter the Login Id and password
4. From the list provided select the user name and password of the desired supplier.
5. Go to parts ordering system.
6. Go to Order and Delivery.
7. Select Delivery Card Reprint.
8. Enter a valid date.
9. Click on Download to download the delivery cards.

Fig. 4.28 Screenshot showing the home page of Yamaha Communication System

Page 60

Fig. 4.29 Screenshot showing Parts Ordering System among other options

Fig. 4.30 Screenshot showing the Main Menu of Parts Ordering System

Page 61

Fig. 4.31 Screenshot showing the components of the Order and Delivery

Fig. .4.32 Screenshot showing the process of reprinting the delivery cards
Page 62

Chapter-5
Daily operations @ Yamaha

Page 63

Introduction
This chapter details about the work done in the last two weeks of the summer internship. In the second last
week i.e. from 14th July 2014 to 20th July 2014, I attended meetings with two of the suppliers, Hemsons
Engineering and J.L.Auto Parts, one in Faridabad and the other one in Noida. These meetings were organized
in order to take commitment from the suppliers about the pending orders till 31st July 2014.
In the last week i.e. from 21st July 2014 to 26th July 2014, I had to monitor the supplies from Hemsons
Engineering with supplier code 3814 and Nicks India Tools with supplier code 3823, and report to my
supervisor The whole data regarding the pending orders and amount of raw material and parts provided by
these vendors from 21st July 2014 till 25th July 2014 is provided in the form of excel sheet.
This data was directly taken from the PYMAC software twice a day, once in the morning and once in the
evening and reported to the supervisor. The excel sheets comprise of the details like the Item name, Item
number, supplier code, platform code, order number, indicated quantity, remaining quantity etc.
As soon as the material is received at the gate and is updated in the Gate Entry Invoice of the PYMAC
system, the excel files automatically get updated depending upon the order size.
For example, if the indicated quantity of a particular order is 200 units and the supplier dispatches only 100,
then this part will be shown in the excel file, but if the supplier dispatches 200 units for the same order, then
this part gets automatically removed from the excel files.
To explain the thing better, the whole data is shown as the snapshots of the original excel files in the next
few pages of this chapter.

Page 64

Pending orders for Hemsons Engineering as on 14th July up to 30th July 2014

Table.1 Pending orders for Hemsons Engineering as on 14th July up to 30th July 2014

Page 65

Pending orders for J.L.Auto as on 14th July up to 30th July 2014

Table 2 Pending orders for J.L.Auto as on 14th July up to 30th July 2014

Page 66

Shipment details for Hemsons Engg.

Table 3 Order details of Hemsons Engg. On 21st july morning

Table 4 Order details of Hemsons Engg. On 21st july evening

Page 67

Table 5 Order details of Hemsons Engg. On 22nd july morning

Table 6 Order details of Hemsons Engg. On 22nd july evening

Page 68

Table 7 Order details of Hemsons Engg. On 23rd july morning

Table 8 Order details of Hemsons Engg. On 23rd july evening

Page 69

Table 9 Order details of Hemsons Engg. On 24th july morning

Table 10 Order details of Hemsons Engg. On 24th july evening

Page 70

Table 11 Order details of Hemsons Engg. On 25th july morning

Table 12 Order details of Hemsons Engg. On 25th july evening

Page 71

Shipment details for Nicks India Tools

Table 13 Order details of Nicks India Tools. On 21st July morning

Table 14 Order details of Nicks India Tools. On 21st July evening

Page 72

Table 15 Order details of Nicks India Tools. On 22nd July morning

Table 16 Order details of Nicks India Tools. On 22nd July evening

Page 73

Table 17 Order details of Nicks India Tools. On 23rd July morning

Table 18 Order details of Nicks India Tools. On 23rd July evening

Page 74

Table 19 Order details of Nicks India Tools. On 24th July morning

Table 20 Order details of Nicks India Tools. On 24th July evening

Page 75

Table 21 Order details of Nicks India Tools. On 25th July morning

Table 22Order details of Nicks India Tools. On 25th July evening

Page 76

Chapter-6
Conclusion, recommendations &
Limitations

Page 77

6.1 Conclusion

The current PYMAC system, PYMAC-III, used by YAMAHA is a complete MRP system which
provides services like inventory control, gate entry invoice checklist, pending orders, PYMAC card
printing etc. for the vendors

This system also provides the Bills Of Materials (BOM) structure, the supplier-user codes, the platform
codes and also helps in developing the item code structure for a particular component.

The PYMAC cards contain every information about a particular order like which part is being supplied
and in what number , where and by whom it is supplied, on what platform it is supposed to be
unloaded, whether the inspection is required or not etc.

With the help of PYMAC, Yamaha is able to establish a hassle free network of its vendors and is trying
to educate them so that they become self-reliant in printing the PYMAC cards and PYMAC orders.

The Divisional Functional Manual- Purchase consists all the job rules which are to be performed by the
Purchase Executives, e.g. selecting an alternate vendor, to ensure defect free component for assembly,
for new part procurement etc. along with the specified formats for CKD planning sheet, Emergency Air
Shipping etc.

The PYMAC software used in the Purchase department is easy-to-use software where from the data
about the orders can be downloaded and the suppliers can be contacted accordingly.

India Yamaha Motor gives purchase orders to its vendors indicating the requirements for the next 75
days and this MRP is generated twice a month

The suppliers that I worked upon during 21st July- 25th July 2014 were Hemsons Engg. based in
Faridabad and Nicks India Tools based in Ludhiana. These suppliers could not provide the requisite
material as specified to them to be delivered in this duration.

Page 78

6.2 Recommendations

In the gate entry invoice retrieval of PYMAC-III, it was observed that the material received in the
morning was, sometimes not even updated till evening. This lead to a mismatch in the inventory levels
of different shop floor and at the vendor end. This problem could be solved easily by fastening the
process of updating the material entry.
More stress could be given on vendor training so that they can print and understand the PYMAC
purchase order and the PYMAC cards. Whenever they fail to do so, the managers in the purchase
department get compelled to provide the suppliers with a manual Purchase Order, thereby taking a lot
of extra time.
One of the features in the PYMAC system is that, if we download the material entry data from the
PYMAC system for a particular vendor and a particular part is supplied as per the order, then that part
gets automatically removed from the PYMAC system thereby creating confusion. It would have been
much easier to understand, if instead of erasing the whole data, the remaining quantity field be made
zero.

6.3 Limitations

Due to its round the clock production, there are no live projects as such in Yamaha, so
number
crunching was not possible to a greater extent and only a study could be conducted.
Working in the purchase department was a bit tough, as it was difficult to engage with the supervisor
due to his busy schedules.
As a company policy, confidential data was not revealed so as to maintain privacy standards and details
of only 4 suppliers were revealed in the last week of my training.
Due to a lag in updating the data of the material received at the gate, it happens sometimes that the
material received in the morning was, sometimes not even updated till evening. Allotted time frame
was not sufficient to record the data of all the suppliers.

Page 79

Bibliography

Page 80

Online sources:
1.
2.
3.
4.
5.

www.yamaha-motor-india.com/about/profile/index.html
www.yamaha-motor.com/corporate/home.aspx
www.wikipedia.org/wiki/Yamaha_Motor_Company
www.wikipedia.org/wiki/Material_requirements_planning
www.wikipedia.org/wiki/Manufacturing_resource_planning

Books:
1. Operations Management- Processes and Value Chain 8th Edition by Lee Krajewski
2. Marketing Research- An Applied Orientation 6th Edition by Naresh K Malhotra

Offline Sources:
1. Divisional Functional Manual- Purchase
2. PYMAC-III Official Manual

Data Resources:
1. Real-time data from the PYMAC Software

Page 81

Appendix

Page 82

(A) Abbreviations Used in Purchase Department

S.No.

Abbreviation

Abbreviation Detail

1.

Addl.

Additional

2.

Al.

Aluminum

3.

AM

Assistant Manager

4.

AMC

Annual Maintenance

5.

ASSY

Assembly

6.

AVO

Avoid Verbal Order

7.

AVP

Associate Vice President

8.

AWB

Air Way Bill

9.

BRG

Bearing

10.

BL

Bill of Lading

11.

BOM

Bill Of Material

12.

BOP

Brought Out Parts

13.

CAT

Category

14.

CST

Casting

15.

C&F

Cost & Freight

16.

CDI

Control Document Index

17.

CFT

Cross Functional Team

18.

CGM

Core Group Meeting

19.

CGM

Chief General Manager

20.

CKD

Completely Knocked Down

21.

C/M

Counter Measure

22.

CZP

Claim Zero Product

Page 83

23.

DA

Dispatch Advice

24.

DEPTT

Department

25.

DFM

Divisional Functional Manual

26.

DGM

Deputy General Manager

27.

Dim.

Dimensional

28.

Div.

Division

29.

DOL

Direct On Line

30.

DR

Design Revision

31.

Drg.

Drawing

32.

DRM

Department Review Meeting

33.

ELE

Electricals

34.

ER

Engg. Release

35.

Est.

Estimation

36.

FBD

Faridabad

37.

FIFO

First-In First-Out

38.

FIN

Finance

39.

FOB

Free-On Board

40.

FOC

Free of Cost

41.

GPM

General Procedure Manual

42.

GR/LR/RR

Goods/Lorry/Railway Receipt

43.

GRA

Graphics

44.

HOD

Head of Deptt.

45.

H/W & SP

Hardware & Spring

46.

FOR

Free On Rail
Page 84

47.

IE

Industrial Engg.

48.

IOM

Inter Office Memo

49.

IT

Information Technology

50.

LC

Letter Of Credit

51.

LOI

Letter Of Intent

52.

MAN COM

Mgmt. Committee Meeting

53.

Matl.

Material

54.

MCM

Monthly Closing Meeting

55.

MDF

Marine Declaration Form

56.

ME

Mfg. Engg.

57.

MFG

Manufacturing

58.

Min.

Minimum

59.

MIS

Mgmt. Information System

60.

MKT

Marketing

61.

MOM

Minutes Of Meeting

62.

MOQ

Minimum Order Quantity

63.

MR

Mgmt. Representative

64.

MRN

Material Receipt Note

65.

MRP

Material Requirement Planning

66.

NC

Non-Conformance

67.

NCR

Non-Conformance Report

68.

NP

Non-Productive

69.

NP PUR

Non-Productive Purchase

70.

ODR

Outside Development Report

Page 85

71.

OE

Original Equipment

72.

OMP

Own Manufactured Parts

73.

OSP

Outside Processing

74.

P/I

Performa Invoice

75.

Part Dev.

Part-Development

76.

PDIR

Pre-Delivery Inspection Report

77.

PE

Purchase Enquiry

78.

PECM

Prodn. Executive Committee Meeting

79.

PED

Prodn. Engg. Deptt.

80.

PFB

Product Feedback

81.

PLA

Plastics

82.

PPMT

Projects & Production Management

83.

PP DRG

Purchase Purpose Drawing

84.

PPC

Prodn. Planning & Control

85.

PEM

Plant Engg. & Maintenance

86.

PR

Purchase Requisition

87.

Prod. PUR

Productive Purchase

88.

Prodn.

Production

89.

RPQ

Request for Quotation

90.

PROP

Proprietary

91.

Pt.

Point

92.

PUR

Purchase

93.

PUR PLNG

Purchase Planning

94.

PLNG

Planning
Page 86

95.

PCS

Price Conformation Sheet

96.

PDS

Price Decision Sheet

97.

P & SA

Purchase & Supply Assurance

98.

QA

Quality Assurance

99.

QCD

Quality, Cost & Delivery

100.

QCD TM

Quality, Cost, Delivery, Tech. & Mgmt.

101.

QE

Quality Engg.

(B) Supplier Codes

S. No.

Supplier Code

Supplier Name

1.

3807

AMTEK Auto Ltd.,

2.

3809

ATOP Products Pvt. Ltd.

3.

3814

Hemsons Engg. , Faridabad

4.

3816

Indoschottle, Pune

5.

3817

J.L. Auto, Noida

6.

3819

Kalson Auto Faridabad

7.

3822

Micro Turner, Rohtak

8.

3823

Nicks India Tools, Ludhiana

9.

3827

Raunaq Auto, Gajrola

10.

3830

Sadhu Forging, Faridabad

11.

3832

Saroj Engg. Faridabad

12.

3839

Warm Forging , Bhiwadi

13.

3841

Micro Turner, Gurgaon

Page 87

14.

3843

Varroc Engg. , Auranagabad

15.

3847

Raunaq Auto, Noida

16.

3849

Reva Auto, Delhi

17.

3850

Sansera Engg., Bangalore

18.

3855

Hitachi Chemicals, Rajasthan

(C) Item Code/ Part Code

Hemsons Engineering (3814)
S. No.

Part Code

Part Name

1.

1CKE2156000080

SHAFT,ROCKER 2

2.

1CKF5186000080

COLLAR,WHEEL

3.

1CKF5386000080

COLLAR,SPROCKET

4.

1GCE2146000080

SHAFT,ROCKER 1

5.

1GCE2662000080

COLLAR

6.

1GCE4638000080

COLLAR,1

7.

1GCE5521000080

SHAFT,1

8.

1GCE5598000080

COLLAR

9.

1GCE5659000080

SHAFT

10.

1GCE7412000080

BRG.,1

11.

1GCE7645000080

COLLAR

12.

1GCF4727000080

PIN,SEAT FITTING

Page 88

13.

1GCF7121000080

BUSH.

14.

1GCF7254000080

HOOK

15.

1SDE2257100080

SHAFT,2

16.

1SDE5372000080

COLLAR,UNION

17.

20PF5377000080

COLLAR,SHAFT

18.

20PF7435000080

BOLT

19.

21CE2156000080

SHAFT,ROCKER 2

20.

21CE5521000080

SHAFT,1

21.

21CE7258000080

COLLAR,1

22.

21CF1414000080

BOSS,ENGINE

23.

21CF1422000080

TUBE,BRKT. CROSS

24.

21CF510C100080

COLLAR ASSY.

25.

21CF530S100080

COLLAR ASSY.

26.

38BE5521000080

SHAFT,1

27.

38BE7258000080

COLLAR,1

28.

54BE7258000080

COLLAR,1

29.

54BE8115000080

ROD,SHIFT

30.

54BF1422000080

TUBE,BRKT. CROSS

31.

54BF1545000080

COLLAR,2

32.

54BF2123000080

BUSH.,1

33.

54BF2126000080

COLLAR,DISTANCE

34.

54BF5183000080

COLLAR,WHEEL

35.

54BF5377000080

COLLAR,SHAFT

36.

54BF5386000080

COLLAR,SPROCKET
Page 89

37.

54BF7112000080

SHAFT

38.

54BF7231000080

ROD,BRAKE

39.

5DGH2516000080

COLLAR,MAIN

40.

5KAE1167000080

PIPE,BREATHER 2

41.

5KAE1445000080

SPACER

42.

5KAE3586100080

JT.,CARBURETOR 1

43.

5KAF3448100080

SPACER

44.

5REE7258000080

COLLAR,1

45.

5REF5183000080

COLLAR,WHEEL

46.

5TSF7231000080

ROD,BRAKE

47.

5USE5521000080

SHAFT,1

48.

5YYE7258000080

COLLAR,1

49.

5YYF2126000080

COLLAR,DISTANCE

50.

5YYF511X000080

COLLAR SET

51.

5YYF7231000080

ROD,BRAKE

52.

90109082020080

BOLT

53.

90170208010080

NUT,HEX.

54.

90173068060080

NUT,SQUARE

55.

90179068060080

NUT

56.

90179068350080

NUT

57.

90179128000080

NUT

58.

90179162260080

NUT

59.

90179250020080

NUT

60.

90179256150080

NUT
Page 90

61.

90179258120080

NUT

62.

90249120080080

PIN

63.

90387060230080

COLLAR

64.

90387067V10080

COLLAR

65.

90387158100080

COLLAR

66.

90387208130080

COLLAR

67.

90560121380080

SPACER

68.

93605068000080

PIN,DOWEL

69.

93612162540080

PIN,DOWEL

Nicks India Tools (3823)

S.No.

Part Code

Part Name

1.

20PF6121000080

HANDLE, LH.

2.

20PF6122000080

HANDLE, RH.

3.

21CE5620000080

KICK CRANK ASSY.

4.

36LE5611000080

CRANK,KICK

5.

54BE5620000080

KICK CRANK ASSY.

6.

5DGE5621000080

BOSS,KICK CRANK

7.

5KAE5620100080

KICK CRANK ASSY.

8.

5YYE5620100080

KICK CRANK ASSY.

Page 91

(D) Model Code

S. No.

Model Name

Model No.

1.

R 15

1CK

2.

Crux

5KA

3.

YBR-110

5TS

4.

Gladiator

35B

5.

YBR-135

5YY

6.

SZR

1PM

7.

FZ-S

21CH

8.

FZ-16

21CG

9.

Fazer

45SB

10.

Scooter

1GC

Production on

Line A

Line B

Line C

Page 92