Sadiq Report

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PROJECT REPORT
Setting up on line procurement ordering system for
Medium Voltage Product Lines
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MBA 09-11
09020741053
1 On line Procurement Ordering System for

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ACKNOWLEDGEMENT
I take this opportunity to thank Schneider Electric for providing me an opportunity to do my

Summer Internship in Hyderabad Plant. I would like to express my deep sense of gratitude
towards my Project Guide Mr.Rajashekhar Palakodeti, Asst Manager Procurement, whose
incessant support and guidance helped me in completing my project.
I acknowledge my sincere thanks to Mr .Nallusamy Ramasamy, Manager Procurement,
Mr.Sharad Naidu, Engineer, IPM (Industrial Performance Management) and Mr.Naveen
Kumar B.V. (Technical Engineer) for their valuable inputs during their course of project.
I would like to thank Mr.Vimal Narayanan, Plant Head, Schneider Electric Hyderabad for
showing keenness in my project and accepting my recommendations.
I would also like to thank Mr.Balaji Renganathan, Manager HR and Mrs Soma Pal, Asst
Manager HR for giving me an opportunity to work on this project.
Finally, I would like to express my gratitude towards all individuals of Procurement and Methods
department who supported me during the tenure of this project.
The project was undertaken as part of our curriculum requirements. I hope that this research work
will help Schneider Electric in achieving their accomplishments.

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CONTENTS
______________________________________________________________________________
ACKNOWLEDGEMENT
……………………………………………………………………………………...2
EXECUTIVE SUMMARY………………………………………………………... 4
INTRODUCTION ………………………………………………………………….5
NEED FOR PROJECT …………………………………………………………….18
1. SCOPE OF PROJECT………………………………………………………..19
2. DEFINITION OF PROJECT………………………………………………....20
3. CONCEPTUALIZATION OF THE PROJECT………………………………21
4. MAJOR TRANSACTIONS OF SAP USED IN THE PROJECT…………….26
5. PLANNING BOM FOR MEDIUM VOLTAGE PRODUCT LINES………...27
6. ANALYSIS AND FINDINGS………………………………………………...42
7. RECOMMENDATIONS……………………………………………………...48
8. CONCLUSIONS………………………………………………………………50
9. FINAL VALUE ADDITION………………………………………………….53
10. ANNEXURE…………………………………………………………………..54
11. BIBLIOGRAPHY……………………………………………………………...55
12. GLOSSARY OF TERMS……………………………………………………...55

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EXECUTIVE SUMMARY
_________________________________
This project was undertaken in order to study the present processes and functions that
Schneider Electric follows at Hyderabad plant for the production of medium voltage
product and to upgrade existing MRP planner which gives accurate requisitions which is
undertaken well in accordance with the BOM quantity of the Finished good and the
forecasted value.
The main objective of the project is to understand the different types of parts that are
required in developing the final Finished Good and prepare a planning BOM for the
standard FG references. For this purpose it is very necessary to study the current process
that the FG follows on line and then validate whether the standard BOM present in the
SAP database is accurate .Find out different steps in which Planning BOM can be prepared
and updated in the SAP database which would help in giving the correct online requisitions.
Data required to study the standard BOM for a particular finished good was collected from
procurement department and data after collection on assembly line was validated by the
methods department.
In the beginning of the project there was no Planning BOM available but after the
implementation of the recommendations and suggestions the SAP database gave accurate
results for the forecasted data.
Schneider Electric Hyderabad would use this upgraded MRP planner to get the
requisitions well in advance which would help them in planning the correct quantity of
material to be ordered.

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INTRODUCTION
____________________________________
ABOUT THE COMPANY
Schneider Electric is a French Global company, founded in 1836 by two brothers. Eugène I and
Adolphe Schneider.
It a global specialist in energy management with operations in more than 100 countries. Schneider
Electric offers integrated solutions across multiple market segments including leadership positions
in energy and infrastructure, industrial processes, building automation and data centres/networks,
as well as broad presence in residential applications.Focussed on making energy safe, reliable,
efficient, productive and green the company’s 114,000 employees achieved sales of more than
$23 billion in 2009.
The major markets of the company are in the following sectors
A. Energy & Infrastructure- Guaranteeing a safe, reliable power supply and
controlling operating costs.
In the Energy & Infrastructure market, our products and services solutions cover
Processes control and supervision
Power supply & distribution
Energy monitoring and control
Utility management (lighting, ventilation, elevators, intruder alert, etc.)
Smart electrical networks management
Single site or multi-site production data management
Critical power
Offer prepayment systems that bring electricity to disadvantaged customers
Main customers
Electrical utilities, water & waste treatment plants, Public-sector investors, oil & gas
infrastructure, Marine sector, etc

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B. Industry - Enhancing productivity, flexibility, security and traceability

In the Industry market, our products and services solutions cover
Processes automation
Machine control and monitoring
Power supply & distribution
Energy monitoring and control.
Utility management (lighting, ventilation, elevators, intruder alert, etc.)
Single site or multi-site production data management.
Critical power
Main customers
Engineering firms, systems integrators, OEMs, large industrial companies, panel builders and
electrical equipment distributors, end users.
C. Data Centers & Networks- Enhance availability, reliability and efficiency

Our solutions include
Electrical distribution
Architecture design and installation audits
Leading-edge UPS systems, electrical switchgear, generators, etc.
Cooling systems with a unique rack-based cooling technique to avoid overheating.
Online supervision and analysis
Training and maintenance
Security

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Main customers
From small companies to global groups, hospitals, administrations, etc. Our customers are
where the availability and quality of the electrical energy is critical.
D. Buildings -Reducing operating costs while offering greater comfort and safety
In the Buildings market our products and services solutions cover
Power supply and distribution

Utility management (lighting, air conditioning, elevators, intruder alert, etc.)
Data exchange (Voice-Data-Image and radio technologies)
Multi-site remote management
Critical power
Security
Main customers
Developers, engineering offices, developers, engineering and design firms , systems integrators,
contractors, panel builders, electrical equipment distributors, building operators and end users.
E. Residential - Ensuring comfort and safety while simplifying communication

In the Residential market, our products and services solutions for single-family homes and
apartment buildings cover:
Power supply and distribution.

Home automation (supervision, energy efficiency, lighting and heating control, etc.)
Voice-Data-Image networks

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Critical power
Security
Main customers
Architects, building owners, developers, building contractors, electricians, electrical equipment

distributors, DIY superstores and end users.
MISSION
The Foundation for energy sharing responds to the demands of new challenges:
Better energy production

Facilitated access to energy for all.
Optimum management of the problem of climate change.
From the transmission of know-how to energy sharing: missions working for the entire
community.
The Schneider Electric Foundation pursues three principal objectives.
Transmitting skills and competence by accompanying:
The least well-off, enabling them to have access to energy

Young people, to promote their professional insertion in energy-linked professions.
Sharing energy by transmitting
Know-how, to encourage access to energy.

Knowledge, by contributing to teacher training.

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Promoting:
The responsibility of men and women and a commitment to saving the planet.
SCHNEIDER INDUSTRIAL DEVELOPMENT
Mission
Lead the Industrial Deployment Strategy for Schneider Electric.
Coordinate the actions of the Industrial Operations entities (ODs and BUs)
Manage the worldwide Manufacturing and Industrialization skills networks
Develop and deploy the Schneider Production System to reach Manufacturing Excellence
Define and implement the Group Environmental Policy.
Acquisitions:
1. Merlin Gerin:
Merlin Gerin is today one of the leading global brands of electrical distribution requirement.
2. Square D :
Products and systems developed by the Square D are present in all sectors of activity, from
circuit breakers to monitoring control systems.
The tertiary and residential building sectors are major consumers of Square D product.
3. Telemechanique:
The leading brand in automation management, Telemecanique today proposes its «Simply
Smart» approach, based on simplicity and intelligence.
4. Converse :
Specialist in energy measurement, recently Schneider Electric has acquired it.

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OPERATIONS IN INDIA
Schneider Electric India Pvt. Ltd (SEI) is a 100% subsidiary of Schneider Electric Industries SAS, a
global specialist in energy management. With a strong force of over 5,500 employees, the company
is well known for its unique vision, progressive management and above all, its exemplary
Quality..
Schneider Electric entered India in 1963 through a first joint venture with the Tata
Group.
In 1995, Schneider Electric established a 100% fully owned subsidiary Schneider Electric
India Pvt. Ltd.
In the year 2000, Schneider Electric further consolidated its position in the Indian market by
acquiring S&S Switchgear and Crompton Greaves LV Division. The year 2007 saw the acquisition
by Schneider Electric of Critical Power & Cooling Solutions major, APC and the world leader
in the field of security solutions, Pelco.
Key Facts about the company in India
5500 employees
5 Global Manufacturing Plants
4 Distribution Centres.
400 Authorized Partners: Distributors, System Integrators, Panel Builders
2 Global Customer Care Centers
2 Global R&D Centres
2 Global Software Centres
1 Regional Project & Engineering Centre
1 Schneider Electric India Training Institute

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MANUFACTURING PLANTS IN INDIA
Schneider Electric India, in a bid to make its customers globally competitive, uses cutting
edge technology at all manufacturing plants. Currently, Schneider Electric has four plants
working towards providing world-class products to its customers.
- Nasik Plant
- Baroda Plant
- Chennai Plant
- Hyderabad Plant
HISTORY
The history of Schneider Electric in India
2009 - Acquisition of Conzerv.

2007 - Introduction of APC and Pelco
2006 - Establishing Projects and Services, for turnkey solution, Hyderabad factory.
2005 - Introduction of TAC and VDI
2004 - Integration of Clipsal business
2003 - Inauguration of Baroda factory, SISC / GTCI, entering into residential market with UT
offer.
2002 - Establishment of Solution and Application Centre for Automation projects.
2000 - S & S Switchgear & CGLV acquisition
1995 - Schneider Electric: 100% subsidiary
1984 - J V with TMC

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HYDERABAD FACTORY
Schneider Electric India has added to its manufacturing capacities establishing another state-of-
the-art Plant at Hyderabad. Sprawling over 10-acre land, the plant has 12,000 Sqm built-up area.
It boasts of machines equipped with cutting edge technologies, and manufactures world-class
Air Circuit Breakers, Medium Voltage (PN2C, RM6),
Contactors and Push Buttons, and caters to the requirements of domestic as well as
worldwide markets.
Plant Area: 10,000 Sqm

No. of People : 350
Hyderabad Factory

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PRODUCTS
Major products manufactured in Hyderabad factory are
1. Master pact Circuit Breakers.
2. Medium Voltage Breakers like
a) . RN2C Ringmaster
b) RM6 Ring main unit
3. Tesys Range of Contractors.
4. Harmony Range of Push Buttons and pilot Lamps.
5. Kiwi2 contractors.
6. Evolis.
1) (2 a) (2 b) (3) (4) (5) (6)

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IMPORTANT FIGURES
KEY FIGURES
Year 2009 2008 2007 2006 2005 2004 2003

Net 15800 18300 17309 13730 11678 10365 8780
Operating
revenues*
Net Profit* 852 1682 1583 1309 994.3 564.6 433
* In million(s) of Euro
EARNINGS PER SHARE
Year 2009 2008 2007 2006 2005 2004 2003

Earnings Per 3.43 7.02 6.78 5.95 4.56 2.56 1.94
Share*
* In Euro
SALES PER ACTIVITY
Electric distribution (low and high tension): 56 %

29 %
Industrial automization
Sector Data as of 31/12/2009
SALES PER GEOGRAPHIC AREA
Western Europe 36 %
North America 25 %
Asia Pacific 23 %
Rest of the World 16 %
Profile as of 31/12/2009

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RESEARCH AND DEVELOPMENT

In the year 2003, India witnessed Schneider Electric opening its first Global Technology Centre in
Bangalore, India. With 460 employees working on product development, and
resource enhancement, GTCI’s gamut of activities includes research in the fields of
electro mechanical design and software development. The innovative products and technologies
prepared at the centre are available in all markets across the globe. Tasks at the Bangalore Centre are
accomplished in synchronization with Schneider Electric’s major Design Centre in the field of Power
Protection and Control, Industrial Automation and Installation Systems and Control.
Schneider Electric’s R&D in products, software’s services and production process

involves 6,500 people in 25 countries. Along with having its Design Centres in developed
countries, Schneider Electric has Critical Mass Centers at Monterrey (Mexico), Shanghai (China)
and Bangalore (India).
R&D sharpens the competitive edge of the organization, as it checks and enhances the quality
of products, software’s, services, production processes and communication technologies. Therefore, a
large part of Schneider Electric’s sales earnings are invested in R&D every year. Most of the
innovations are aimed towards optimizing easy implementation and operation, safety, flexibility
and enabling products and services to evolve. This effort has gained optimum momentum with
Schneider Electric choosing Bangalore, the IT hub of India, as one of the premier centre for global
R&D.
One of four Global R&D Centers
Established in 2003 460 employees
Research in electro mechanical design and software development
Global innovations application

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NEED FOR THE PROJECT

_________________________________
Schneider Electric Hyderabad plant was set up in late 2006 with a foresight of making it a industrial
products hub. When the plant was started only 3 major products were manufactured and assembled in
the plant. Slowly major products were shifted from Nasik factory to Hyderabad factory. Presently the
factory produces 6 major products and the scope of further expansion is high.
Hyderabad Factory is the manufacturer of Medium Voltage products and therefore

the requirement of the production happens with the production plan which is discussed during the
Collaborative Sales Forecast meeting . There are different Finished Goods produced on the line which
are prepared in accordance with the customer specifications and there are various parts which are
present in every Finished good produced.
The project intends to analyze the count of the no of parts which go in Finished Good
which is produced and compare the data obtained with the standard BOM which is already present in
the SAP database. Additionally the project also aims at the preparation of Planning BOM for the
medium Voltage product which helps in planning the approximate figure of the particular quantity
required when a finished good production is required.
Need for the project was a challenge put forward by the procurement department to prepare
Planning BOM for medium Voltage product lines.

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1. SCOPE AND DEFINITION OF PROJECT

_______________________________________
The project is confined to Schneider Electric Procurement Department, Hyderabad. An attempt has
been made to study the current systems and practices followed in the plant and find out whether the
information which the plant is following currently is effective and then to upgrade the existing
Planning BOM which are in accordance with customer requirements so that the Purchase Requisitions
can be converted to Purchase Orders.
The scope and definition of the project is as follows:
OBJECTIVE OF THE PROJECT :

To study, understand, analyze and develop an online procurement ordering system for medium
Voltage products as per business evaluation.
SCOPE OF THE PROJECT :

To study the systems and procedures followed in the plant.
To understand the processes followed at the Medium Voltage product line preparation.
To understand the stepwise procedure in which the product is manufactured.
To analyze the quantity of the no of parts which go in the preparation of Medium Voltage
products.
To have an understanding of various transactions which are used for obtaining Standard BOM
available in SAP database
To validate the existing BOM present in the SAP database.
To upgrade Planning BOM for medium Voltage products such as RN2C, Evolis.
To verify whether the requisitions are obtained in accordance with the forecasted values.

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2. CONCEPTUALIZATION OF PROJECT
____________________________________
Schneider Electric, Hyderabad has a production line for the production of Medium Voltage products.
The production for RN2C consists of the following parts:
Core Module Assembly Line.

Ring Switch Mechanism Assembly Line.
CB Mechanism Assembly Line.
Level I Assembly Line
2.1.1 HISTORY OF RING MASTER UNIT :
1960s: Outdoor oil filled ring main unit launched using HRC fuse switch technology.
1987: creation of the SF6 circuit breaker Ringmaster 1.5, with TLF and IDMT protection
options.
1990: Ringmaster 1.5 evolves to the Ringmaster 2. A lower filling and operating gas
pressure and internal arc performance are now achieved.
1998: Ringmaster 2c is launched with a significantly smaller footprint and volume
compared to the Ringmaster 2. The provision for motorization is now standard across the
range.
2.1 BASIC DETAILS OF RN2C ASSEMBLY LINE:
The following screenshots represent the flow in which the RN2C product is manufactured in the
Schneider Hyderabad Factory.
The different Ring Master variations manufactured at Hyderabad Plant are RN2C, RE2C and
RM6.

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A. Ring Switch Mechanism Assembly Line
B. C B Mechanism Assembly Line
C. Level –I Assembly Line

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D. Compact Non Extensible Ring Main E. Extensible circuit Breakers and switches
Unit
2.1.2 RINGMASTER MUNTIPLE CONFIGURATIONS
Transformer
Free standing, mounted,non-
Transformer mounted,
Non-extensible extensible.
extensible.

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Free standing, Single Free standing extensible

extensible function switchboard.
The free standing, non-extensible ring main unit is designed for cable connection to ring
switches and tee off circuit breaker.
The same non-extensible ring main unit can be directly mounted on a fluid filled
transformer in a package substation arrangement.
The extensible ring main unit can also be directly mounted on the transformer and
extended with a fourth function. This fourth function can be either a switch, for network
switching points or a circuit breaker for open ring sectionalizing.
The extensible ring main unit complete with fourth function can also be free standing.
Within the Ringmaster range there is also a single, non-extensible circuit breaker or
switch available for radial feeds. This is available in either a free standing or transformer
mounted arrangement.
These single switches and circuit breakers are also available in an extensible format
which allows free standing switchboards to be built up for interconnection or MV / MV
substations.
Metering units are also available on all functions.

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2.1.3 RINGMASTER FEATURES AND RANGE :
Gas pressure indicator

Anti-reflex handle or electrical operation
Interlocked MV cable testing
Integral self-powered protection
IP54 enclosure
Simple, clear operation
Compact size
Earth screened cast-resin gas module
Mechanical tripped on-fault indication
Direct coupling to transformers or cable
connection
Direct coupling to Metering Unit
PANEL TYPES
Ring Main Units Metering Circuit Breakers and Switches

Units
The above figure indicates the different range of panels that come under the Ring Master Unit
and its brief description.
The Ringmaster ring main unit combines three MV functional units for transformer protection
and network points with the option for a fourth if using the extensible ring main unit.

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The extensible range has many options which can cater for almost any secondary MV
distribution network.
The Ringmaster family consists of the following:-
A range of extensible and non-extensible ring main units with tee off circuit breaker
ratings up to 630A.
a non-extensible 200A MV metering unit for the MV/LV transformer
A range of extensible and non-extensible circuit breakers and switches with ratings up to
630A, for radial feeds and extensible switchboard configurations.
NOTE : All Ringmaster extensible ring main units can be extended on the right hand side.
ADVANTAGES:
The advantages of Ring Master Configurations include:
Direct coupling to minimize cabling
Reduced floor space
Simplified logistics
Reduced installation time
installation indoors or outdoors
The most common installation is the package substation..
MONITORING AND PROTECTING YOUR NETWORK
Ringmaster offers a wide choice of relays from the VIP self powered range, ideal for
remote areas, to the new Sepam 10 advanced relay.
The Time Fuse Link or TLF protection devices use the fault current to trip the circuit
breaker after rupturing a low voltage TLF fuse. TLF protection offers over current and
earth fault protection for transformers and loads up to 1600kVA.
VIP30 and VIP35 offer a fixed characteristic but with multiple protection settings of
over current and earth fault.
VIP300 is a micro processor based IDMT relay offering a full range of settings for loads
up to the full load capacity of the circuit breaker.

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These self powered options eliminate the need for expensive switch tripping units in
Ringmaster substations.
Sepam 10 provides enhanced performance such as communications ports and very
sensitive earth fault.

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2.1.4 LIST OF IMPORTANT TRANSACTIONS USED IN SAP :
mb51 – Material document list based on given material code and plant location.
va05 – Gives the list of all sales orders based on the given material code.
cs63 – Gives the list of BOM details based on the given sales order, material code and
plant id.(A list of open orders can also be obtained using this transaction)
cs13 – Gives the list of summarized BOM for a particular FG reference.
cs03 – Gives BOM details from parent level to its lowest child level component
mm02 – Used for editing master details of material.
mm03 – Used for viewing details of material master.
mmbe – Gives a list of Stock details for various parts (eg . 4000 – Warehouse location ,
2003 – Harmony,2004 – Tesys,2007 – Evolis etc )
md06 – gives the details of all the MRP controllers.
cs01 - Creation of Planning BOM
cs02 – Editing or Modifying Planning BOM.
md62 – Changing the Planned Independent Requirements or Maintaining forecast.
md02 – Execute MRP manually
md04 – Verifying the forecast or Stock requirements.
md63 – Displaying the forecast.
cs12 – Obtaining the details of Multilevel BOM.
NOTE:
in10 : Plant Code used for Schneider Hyderabad Plant.
in01: Sales organization code used at Schneider Hyderabad Plant.
pp01: BOM application code used at Schneider Hyderabad Plant.
311: Material movement code from warehouse to shop floor in mb51 transaction.
261: Consumption code used in mm03 transaction at Schneider Hyderabad Plant.
3: BOM usage code used in cs63 transaction at Schneider Hyderabad Plant.

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2.2 STEPS USED FOR THE PREPARATION OF PLANNING BOM FOR RN2C
Extraction of Standard BOM from SAP

Validation of Standard BOM present in SAP
Upgrading Planning BOM for RN2C
Updating the Planning BOM in SAP and verification of online requisitions.
2.2.1 EXTRACTION OF STANDARD BOM FROM SAP :

.
a. Screenshot showing the major customers whose BOM needs to be extracted from SAP
DESCRIPTION :
The above screen shows details of all the major customers of Schneider Hyderabad plant
in the past 6 months and the data for the above needs to be extracted from the SAP
database using va05 transaction.

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b. Screenshot showing the details extracted from SAP based on the major customer
orders.
DESCRIPTION:
The above screen shows details all the sales orders of major customers based on historical data
which has the Sales Oder No, Item No and BOM Qty.The whole data needs to be exported to an
Excel sheet.
2.2.2 VALIDATION OF STANDARD BOM EXTRACTED FROM SAP :
The validation of RN2C Ring Master Unit comprises of validating one of the Finished Goods .
Here RN2C-T2/21-PHASE 2 WITH VIP300 RELAY FG is taken up for validation on the

following assembly lines
Core Module Assembly Line.

Ring Switch Mechanism Assembly Line.
CB Mechanism Assembly Line.
Level I Assembly Line

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c. Screenshot showing the validated data for RN2C-T2/21-PHASE 2 WITH VIP300

RELAY
DESCRIPTION:
The above screen shows details all the data that was collected after validation for the above
Finished good and the data taken from SAP .The difference between the physical quantity and
the BOM quantity was taken up for validation.
2.2.3 UPGRADING PLANNING BOM FOR RN2C :
The Planning BOM figure for RN2C is prepared by initially extracting all the details
pertaining to sales orders of major customers in past 6 months.
The consolidated data of all the FG’s taken from the SAP database is as shown in the
following screenshot

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d. Screenshot showing the consolidated data of all FG’s for the preparation of Planning
BOM for RN2C
DESCRIPTION:
The above screen gives details of the count of no of parts that goes in each and every FG code.
In a way it gives details of consolidated FG data which would indicate the different parts which
go in each and every Finished Good.
The next step is to take the pivot table between Parts and Sum of Parts for a particular FG
as shown in the following screenshot.

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e. Screenshot showing the details of parts and its count for RN2C-T2/21 FG Code
DESCRIPTION:
The above screenshot gives details of the count of no of parts that goes in each and every FG
code. This is obtained by applying Pivot table between Parts and the BOM Qty obtained from the
SAP database. The same procedure is followed for all the Finished Good codes of Ring Master
Unit.
After obtaining the above the next step is to consolidate all the pivoted tables of different
Finished Goods so that the following Excel sheet can be obtained.

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f. Screenshot showing the details of Final BOM figure which needs to be updated in the
SAP database.
DESCRIPTION:
The above screenshot gives details of the final BOM figure of a particular part which needs to
be updated in the SAP database. The Excel sheet gives the details of the BOM quantity
pertaining to a particular (Finished Good, Sales Order No) and Part No . The Excel sheet also
contains details which are described as follows:
Total requirements are obtained by applying Pivot table to the Part no and BOM qty of
the main Excel file which is extracted from the SAP database using va05 transaction.
Actual requirement column is taken up for a period of time i.e it is considered for around
a years time where as current requirement is what is currently required and which are
there in open orders obtained from SAP database using cs63 transaction.
Final Fig column in the Planning BOM file is % of Planning BOm column in the above
screenshot.

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g. Screenshot showing the order qty of unique Sales Order NO and Finished Good Code.
DESCRIPTION:
The above screenshot gives details of the count of Order qty which is unique for a particular
sales order no and Finished Good.
2.2.4 UPDATING THE PLANNING BOM IN SAP AND VERIFICATION OF ONLINE

REQUISITIONS
The Final Planning BOM prepared has two important columns which are Parts and Final
BOM figure which needs to be updated in the SAP database. These figures which are
updated in the SAP database using cs02 transaction as shown in the following
Screenshot. The Material Code for the Planning BOM updating in the SAP database is
ICPP_RINGMASTER.

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h. Screenshot showing Planning BOM of RN2C that is updated in the SAP database.
The next step is to maintain the forecast value in the SAP database using md62 transaction
where we can define forecast values for next 6 months as shown in the following
screenshot.
i. Screenshot showing the forecasted value updated in the SAP database

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The next step is the verification of the requisitions obtained online in the SAP database
by going to the md04 transaction which should give an approximate value of the Part qty
which is defined in cs03 transaction multiplied with the forecasted value applicable in the
md62 transaction as shown in the following screenshot.
j. Screenshot showing the online requisition obtained in the SAP database for a
particular part going in RN2C Finished Good
NOTE: In this way the online requisitions are verified for all the parts that go in Ring Master
Unit.

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2.3 EVOLIS PRODUCT INTRODUCTION :
Schneider Electric, Hyderabad has a production line for the production of Evolis production.
Evolis has a range of circuit breakers that takes account of your electrical
installations’ requirements today and in future.
Evolis has a range of vacuum-type circuit breakers from 7.2 kV to 24 kV combining
easy selection and a comprehensive offer:
A withdraw able, frontal version with a circuit breaker and its cradle or its cassette.
A fixed, lateral version equipped with an integrated protection chain
The Evolis circuit breaker is operated via a spring mechanism that gives an operating
speed that is independent of the operator and that does not require an auxiliary power
supply. When the operating mechanism is motorized the circuit breaker can include
telecontrol functions and carry out rapid reclosing cycles. The various circuit breaker
versions are easy to integrate in a cubicle environment
Applications:
Evolis is intended for use in medium voltage network applications, in new installations
or renovation, for utilities companies, infrastructures, the process industry and the tertiary
sector. It provides protection for all types of applications: cables, overhead lines, motors
capacitors, transformers, source busbar sections, etc.
Evolis circuit breakers are three-pole indoor MV circuit breakers.
They are mainly used for operation and protection of public, industrial and tertiary
distribution networks from 7.2 to 17.5 kV.
Through their compact dimensions and harmonized range, Evolis circuit breakers are
positioned very favorably on the retrofit market.

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Evolis 17.5 kV fixed,

frontal version Evolis
24 kV fixed, frontal
version
2.4 STEPS USED FOR THE PREPARATION OF PLANNING BOM FOR EVOLIS
Extraction of Standard BOM from SAP

Upgrading Planning BOM for EVOLIS
Updating the Planning BOM in SAP and verification of online requisitions.
2.4.1 EXTRACTION OF STANDARD BOM FROM SAP :
k. Screenshot showing the Standard BOM which is extracted from the SAP database for
a particular Finished Good.
DESCRIPTION :

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The above screen shows details of the data which represents the Standard BOM details
which needs to be extracted from the SAP database using va05 transaction.
2.4.2 UPGRADING PLANNING BOM FOR EVOLIS :
l. Screenshot showing the Planning BOM for Evolis which needs to be updated in SAP.
DESCRIPTION :
The above screenshot shows details of the planning BOM which is upgraded for Evolis wherein
it contains the final planning BOM figure for all the Finished Goods which needs to be updated
in the SAP database.

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2.4.3 UPDATING PLANNING BOM IN SAP AND VERIFICATION OF ONLINE

REQUISITIONS :
m. Screenshot showing the Planning BOM updation for Evolis updated in SAP.
DESCRIPTION :
The above screenshot shows details of the final Planning BOM which is updated in the database
using the Final Planning BOM code ICPP_EVOLIS which holds details of all the parts which
are present in each and every Finished Good code of Evolis.

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n. Screenshot showing the Planning BOM quantity for parts which go in Evolis
DESCRIPTION :
The above screenshot shows details of the Planning BOM quantity which is updated in the SAP
for a list of parts which go in Evolis under the code ICPP_EVOLIS.
o. Screenshot showing forecasted values for Evolis

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DESCRIPTION :
The above screenshot shows details of forecasted values which are taken from Procurement
department planned for a period of time for Evolis Product under the Planning BOM code
ICPP_EVOLIS .This data needs to be updated using the transaction md63 which is used for
maintaining the forecast.
p. Screenshot showing final requirement values for a particular part which are in
accordance with the Planning BOM file.
DESCRIPTION :
The above screenshot shows details of the final requirement quantity which is in accordance with
the Planning BOM file which gives the details of the actual quantity which needs to be ordered
to the customers and this figure is arrived in accordance with the forecasted values i.e. it is the
multiplicative factor obtained by multiplying part quantity and the forecasted value using md04
transaction.
The above step also helps in verification of the requisitions which are well in accordance with
the Planning BOM file for all the parts that go in Evolis Product.

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3. ANALYSIS AND FINDINGS

___________________________________
RINGMASTER UNIT :
Standard BOM validated for RN and RE type Ringmaster.

550 Components have been verified.
For 29 parts variance has been observed and modifications are done

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q. Screenshot showing final variances observed during the validation of RN2C Standard
BOM present in SAP database.
The Planning BOM which was prepared was taken over a period of 6 months for past
customer orders.
Planning BOM present in the system was ineffective which was modified to a larger
extent.
The Planning BOM calculations had many data management calculations which is dealt
in the findings part.
The requisitions obtained after upgrading the Planning BOM was taking into account the
multiplication of forecasted value of the Product and Planning BOM final figure.
The Planning BOM preparation involved analysis and design of the similar finished good
codes which are unique for a particular Sales Order no.
After the updation of Planning BOM in the SAP database the requisitions for all the parts
were obtained accurately.
ICPP_RINGMASTER was the material code used for updating the Final Planning BOM
of Ring Master Unit.
ICPP_RINGMASTER had GCR_RINGMASTER which has details of all the parts with
final Planning BOM figure updated in the SAP database.

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r. Screenshot displaying the Planning BOM file of RN2C.
EVOLIS:
The Planning BOM which was prepared was taken over a period of 6 months for past
customer orders.
Planning BOM present in the system was ineffective which was modified to a larger
extent.
The Planning BOM calculations had many data management calculations which is dealt
in the findings part.
The requisitions obtained after upgrading the Planning BOM was taking into account the
multiplication of forecasted value of the Product and Planning BOM final figure.
The Planning BOM preparation involved analysis and design of the similar finished good
codes which are unique for a particular Sales Order no.
After the updation of Planning BOM in the SAP database the requisitions for all the parts
were obtained accurately.
ICPP_EVOLIS was the material code used for updating the Final Planning BOM of Ring
Master Unit.

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s. Screenshot displaying the Planning BOM file of Evolis.
FINDINGS:
RINGMASTER UNIT :
The Planning BOM figure was highest in the case of part no 4123037 which had
approximately the highest requirement in terms of its open orders.
Some of the parts such as 4231043, 4281078, 4558029 and 4807741were identified as
bulk material parts which have no specific consumption pattern.
Some of the parts in the Planning BOM upgradation have zero current requirements
thereby leading to zero Final Planning BOM figure.
The current requirement column in the Planning BOM file is calculated using the count
of all orders which are open for all the Finished Goods under Ring Master Unit.
The actual requirement column which is taken for a period of time (say one year) in the
Planning BOM file is calculated using the count of all the orders for all the Finished
Goods under the Ring Master Unit
The parts whose current requirements are zero are those parts which have very less
probability of being ordered by customers in near future.
The parts whose current requirements are more (say more than 50) are those parts which
have greater chances of being ordered by customers in future.
Quantification done in terms of order frequency as the order frequency is more.
Unwanted manual Planning was saved which used to take place earlier.
The Planning BOM file prepared for Ring Master Unit would make a layman’s work very

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easier in placing the orders rather than analyzing the whole product and then perform
manual operations in getting upto the final BOM quantity.
The Planning BOM updation needs to be done using cs01 transaction rather than using
cs03 transaction which would lead to an error
EVOLIS:
The Planning BOM Figure was highest in the case of BBV50801 part which has the max
summation value of all the Finished Goods i.e. has maximum current requirement.
Some other parts which have major current requirement are 21628220, 21628222,
03401001F0, 51222734F0, 1023797, 21222308, 21252108, BBV50608, 04442887AA,
AAV660102.
There are some parts which have zero current requirements leading to zero Planning
BOM Figure and these parts need not be updated in the SAP database.
Quantification done in terms of order frequency as the order frequency is more.
Unwanted manual Planning was saved which used to take place earlier.
The Planning BOM file prepared for Evolis would make a layman’s work very easier in
placing the orders rather than analyzing the whole product and then perform manual
operations in getting upto the final BOM quantity.
After updation of the Panning BOM file in the Excel Sheet Evolis was not giving correct
requisitions because of the presence of an older version of the Planning BOM file from
which the BOM quantity was taken and requisitions were calculated accordingly. This
problem was analyzed and the older file from date version was changed initially but later
the newer file was over ridden with the older file which leads to the calculation of
accurate requisitions online.
The Planning BOM updation needs to be done using cs01 transaction rather than using
cs03 transaction

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4. RECOMMENDATIONS
____________________________________
Some of the recommendations which can be implied to both Ring Master Unit and Evolis
are:
There should be a timely change in Planning BOM as the forecasted values is

expected to remain similar for three months and if the forecasted value for a particular
month majorly differs then there should be a change in the Planning BOM file which
needs to be updated in the SAP database.
Safety Stock which is planned for all the parts which go in Ring Master Unit and
Evolis should also be changed appropriately once in 3 months depending on the
customer orders and movement of the good.
An abnormal surge in demand of a particular Finished Good must appropriately lead
to a change in the Planning BOM pertaining to particular Finished Good.
Stock which is non moving should have a mandatory check and these parts should be
removed from the Planning BOM file periodically.
Planning BOM file can be used to calculate the final figure of a particular quantity
which is to be ordered if an abnormal demand exists in the Planning File.
The same Planning BOM file can be used in different conditions.
Can be used as a standard for updating regularly.
The principles and steps which are used for preparing Planning BOM file for Evolis
and RN2C can be applied to RM6 (Finished Good Manufactured at Hyderabad
Plant).
The Planning BOM file which is prepared for RN2C can be used to the current
project running in Hyderabad Plant ,RDE2C ( Double Extensible Ring Master
Unit) as it comprises few add on parts as compared to RE2C.
The Planning BOM file would save man power hours there by giving an opportunity
to use the same resource to perform several other value added tasks.

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The Planning BOM can also be used to place orders on a weekly basis rather than
placing orders biweekly/monthly basis.
The Firmed Production Orders should be deleted from the SAP, so that the current
requisitions are obtained accurately without any error.
The forecast values should be updated in the SAP database in md63 transaction so
that we obtain the correct requisitions for both Evolis and RN2C products.

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5. CONCLUSION
____________________________________
After going through the analysis of this project the procurement department took the initiative
of placing the orders pertaining to a particular Finished Good in the required amount as
obtained in the online requisitions. Additionally it saved the manual time required to calculate
the Planning BOM figure which was required to calculate the final no of orders to be placed on
a particular part.
After implementation of certain suggestions the following outputs were obtained:

There was a percentage increase of online requisitions from 0% to 85% which
indicates that the requisitions of the parts on RN2C line were more accurate and in
accordance with the upgraded Planning BOM figure.
There was a percentage increase of online requisitions from 0% to 95% which
indicates that the requisitions of the parts on Evolis line were more accurate and in
accordance with the upgraded Planning BOM figure.
The following chart shows the details of percentage increase in the online requisitions
of RN2C which were obtained before and after the implementation of the project
t. Bar Chart showing the percentage of Manual and system MRP usage before
implementation of Planning BOM for RN2C

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u. Bar Chart showing the percentage of Manual and system MRP usage after
implementation of Planning BOM for RN2C.
The following chart shows the details of percentage increase in the online requisitions
of Evolis which were obtained before and after the implementation of the project.
v. Bar Chart showing the percentage of Manual and system MRP usage before
implementation of Planning BOM for Evolis

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w. Bar Chart showing the percentage of Manual and system MRP usage after
implementation of Planning BOM for Evolis

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6. FINAL VALUE ADDITION

___________________________________
The analysis and recommendations of this project has provided Schneider Hyderabad’s
procurement department the medium of placing orders accurately for both Evolis and RN2C
products.
After presentation of the analysis and recommendations to the plant head, instructions were given
to the methods and procurement department to implement the changes that were identified in
RN2C validation in the SAP which would incorporate saving in costs per customer order. The
requisitions obtained were validated and accurate results were obtained. This project was
successful in fulfilling its requirements.
This project was beneficial for the plant to optimize the no of orders which should be placed by
Schneider Hyderabad in accordance with the job carried out on product lines
Indeed the two months spend here in Schneider Electric has been very beneficial to me in terms of
gaining knowledge, interacting with experts here has helped me gain valuable inputs and gave
me the right kind of approach and attitude to analyze and deal with the problem.
It also gave me the right platform to get hands on experience on the various world class practices as
followed by the company.

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7. ANNEXURE
____________________________________

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8. BIBLIOGRAPHY
____________________________________
1. Schneider Production system (SPS) manual

2. Schneider Electric Training manual.
3. www.schneider-electric.com
4. www.billofmaterial.com
9. GLOSSARY OF TERMS
____________________________________
1. SPS: Schneider Production System.

2. MOQ : Minimum Order Quantity
3. RN : Right Non Extensible Ring Master Unit
4. RE: Right Extensible Ring Master Unit.
5. MVP : Medium Voltage Products
6. BOM : Bill of Material
7. RMU : Ring Master Unit


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1 On line Procurement Ordering System for

I take this opportunity to thank Schneider Electric for providing me an opportunity to do my

2 On line Procurement Ordering System for

3 On line Procurement Ordering System for

4 On line Procurement Ordering System for

5 On line Procurement Ordering System for

B. Industry - Enhancing productivity, flexibility, security and traceability

C. Data Centers & Networks- Enhance availability, reliability and efficiency

6 On line Procurement Ordering System for

In the Buildings market our products and services solutions cover

Power supply and distribution

E. Residential - Ensuring comfort and safety while simplifying communication

Power supply and distribution.

7 On line Procurement Ordering System for

Architects, building owners, developers, building contractors, electricians, electrical equipment

Better energy production

The Schneider Electric Foundation pursues three principal objectives.

Transmitting skills and competence by accompanying:

The least well-off, enabling them to have access to energy

Sharing energy by transmitting

Know-how, to encourage access to energy.

8 On line Procurement Ordering System for

SCHNEIDER INDUSTRIAL DEVELOPMENT

9 On line Procurement Ordering System for

Key Facts about the company in India

10 On line Procurement Ordering System for

MANUFACTURING PLANTS IN INDIA

2009 - Acquisition of Conzerv.

11 On line Procurement Ordering System for

Plant Area: 10,000 Sqm

12 On line Procurement Ordering System for

Major products manufactured in Hyderabad factory are

1. Master pact Circuit Breakers.

2. Medium Voltage Breakers like

b) RM6 Ring main unit

3. Tesys Range of Contractors.

4. Harmony Range of Push Buttons and pilot Lamps.

1) (2 a) (2 b) (3) (4) (5) (6)

13 On line Procurement Ordering System for

Year 2009 2008 2007 2006 2005 2004 2003

EARNINGS PER SHARE

Year 2009 2008 2007 2006 2005 2004 2003

SALES PER ACTIVITY

Electric distribution (low and high tension): 56 %

Sector Data as of 31/12/2009

SALES PER GEOGRAPHIC AREA

14 On line Procurement Ordering System for

15 On line Procurement Ordering System for

16 On line Procurement Ordering System for

RESEARCH AND DEVELOPMENT

Schneider Electric’s R&D in products, software’s services and production process

One of four Global R&D Centers

Established in 2003 460 employees

Research in electro mechanical design and software development

Global innovations application

17 On line Procurement Ordering System for