View source for SOP Inter-Company Ordering and Production Process 260203

= SOP: Inter-Company Ordering and Production Process (Cornersteel Plant) =

'''Document No.:''' 260203-01<br>
'''Scope:''' Sister Companies (CF, CTO, ESCO) procuring products and services from the Cabuyao Laguna Manufacturing Plant (CSC)<br>
'''References:''' ISO 9001:2015 Quality Management Systems; DDC Documentation Methodology; IMS-01 MS Description; ERPNext Project Module Documentation

== Objectives ==

To establish a standardized, efficient, and transparent workflow for Sister Companies (CF, CTO, ESCO) to procure products and services from the Cabuyao Laguna Manufacturing Plant (CSC), ensuring accurate project tracking and technical costing.

=== Key Result Areas & Outcomes ===

{| class="wikitable"
! KRA !! Outcome
|-
| '''Traceability''' || Ensure every request is linked to a specific CSC SO/JO (Project) in ERPNext for clear tracking.
|-
| '''Accuracy''' || Validate technical estimates via the ARF ticketing system before commercial costing.
|-
| '''Efficiency''' || Streamline the handover from Commercial (Sister Company) to Technical (Plant) via the Take Off and Material Planning Sheets.
|}

== Scope ==

This process covers the lifecycle of an inter-company order, starting from Project creation by the Sister Company to the final pickup by Shipping.

'''Inclusions:'''
* Creation of CSC SO/JO (Project) and Action Request Forms (ARF)
* Technical estimation by PDTD and commercial costing by Sister Companies
* Processing of MR:P, PO, and SO
* Generation of Take Off Sheets, Material Planning Sheets, and Work Orders
* Production scheduling and Shipping pickup

'''Exclusions:'''
* Third-party client sales (non-inter-company) unless processed through this specific flow
* Detailed logistics routing (covered in Logistics procedure)

== Definitions ==

{| class="wikitable"
! Term !! Definition
|-
| '''CSC SO/JO''' || Sales Order / Job Order. In ERPNext, this is defined as a '''Project'''.
|-
| '''ARF''' || Action Request Form. The official ticketing system used to request services (estimates, drawings) from the Plant.
|-
| '''Sister Companies (SC)''' || Comfac (CF), Comfac Technology Options (CTO), Energy Specialist Company (ESCO), and their branches.
|-
| '''PDTD''' || Production Design and Technical Department (Plant).
|-
| '''SPLD''' || Strategic Purchasing and Logistics Department.
|-
| '''SSD''' || Support Services Department.
|-
| '''PPC''' || Production Planning and Coordination.
|-
| '''Take Off Sheet''' || A document generated by SSD detailing the quantity and specifications of materials required, derived from the Sales Order.
|-
| '''Material Planning Sheet''' || Generated by PDTD based on the Take Off Sheet to guide production material usage.
|-
| '''Sister Company Margin''' || The standard markup (currently 10%) added by the Sister Company to the Plant's estimate.
|}

== Responsibilities ==

{| class="wikitable"
! Party !! Responsibilities
|-
| '''Sister Companies''' (Sales / Support / Technical) || Create the CSC SO/JO (Project) in ERPNext. Issue the ARF to request technical estimates from the Plant. Apply the 10% Sister Company Margin, VAT, and applicable taxes to create the Technical Costing. Generate the Material Request: Purchase (MR:P).
|-
| '''PDTD''' || Process ARFs to create technical estimates and drawings. Coordinate scheduling during the estimation phase. Receive the Take Off Sheet from PPC. Generate the Material Planning Sheet and Work Order (WO).
|-
| '''SPLD''' || Process the MR:P into a Purchase Order (PO).
|-
| '''SSD''' || Generate the Sales Order (SO) based on the PO. Generate the Take Off Sheet and issue it to PPC.
|-
| '''PPC''' || Receive the Take Off Sheet from SSD. Issue directives to PDTD for Work Order generation.
|-
| '''Production & Shipping''' || Execute the Work Order (Production). Pick up the finished goods (Shipping).
|}

== Procedure ==

=== Step 1: Project Initiation ===

'''1.1. CSC SO/JO Creation'''

The Sister Company (Sales, Support, or Technical team) creates a '''Project''' in ERPNext to serve as the CSC SO/JO.

* '''Naming Convention:''' <code>YYMMDD-CF-Project Name</code> (e.g., <code>231025-CF-AyalaRenovation</code>)
* Note: "CF" may be substituted for the specific company code if required (e.g., CTO, ESCO).

=== Step 2: Estimation Request ===

'''2.1. Action Request Form (ARF)'''

After creating the Project, the Sister Company generates an ARF via the Ticketing System.

'''2.2. Request Details'''

The ARF must explicitly request the Plant to provide Estimates, Drawings, or technical specifications linked to the Project created in Step 1.

=== Step 3: Technical Estimation ===

'''3.1. Processing''' — PDTD receives the ARF and proceeds to create the necessary estimates and drawings.

'''3.2. Coordination''' — PDTD coordinates with the Sister Company regarding scheduling and technical feasibility.

'''3.3. Submission''' — Once complete, PDTD returns the Estimates to the Sister Company.

=== Step 4: Commercial Costing ===

'''4.1. Markup Application'''

The Sister Company takes the Plant's estimate and adds the following to create the '''Technical Costing:'''

{| class="wikitable"
! Item !! Rate
|-
| Sister Company Margin || 10%
|-
| VAT || 12% (or current applicable rate)
|-
| Other Taxes || As applicable
|}

'''4.2. Finalization''' — This Technical Costing becomes the basis for the formal order.

=== Step 5: Ordering Process ===

'''5.1. Material Request''' — The Sister Company generates a '''Material Request: Purchase (MR:P)''' in ERPNext based on the Technical Costing.

'''5.2. Purchase Order''' — SPLD processes the MR:P and converts it into a '''Purchase Order (PO)'''.

'''5.3. Sales Order''' — SSD receives the details and generates the '''Sales Order (SO)'''.

=== Step 6: Pre-Production & Planning ===

'''6.1. Take Off Sheet''' — SSD generates the Take Off Sheet derived from the SO and issues it to the Plant's PPC.

'''6.2. Handover to Technical''' — PPC reviews the Take Off Sheet and issues it to PDTD.

'''6.3. Work Order Generation''' — PDTD utilizes the Take Off Sheet to create:
* Material Planning Sheet
* Work Order (WO)

'''6.4. Release''' — PDTD releases the finalized documents to Production.

=== Step 7: Production & Logistics ===

'''7.1. Execution''' — Production schedules the works and executes the Work Order.

'''7.2. Completion''' — Upon completion, the goods are staged for release.

'''7.3. Pickup''' — Shipping picks up the finished items for delivery.

== Process Flow Summary ==

{| class="wikitable"
! Step !! Action !! Owner !! ERPNext Document
|-
| 1 || Create Project (CSC SO/JO) || Sister Company || Project
|-
| 2 || Issue ARF || Sister Company || ARF (Ticketing System)
|-
| 3 || Create Estimates & Drawings || PDTD || Estimates / Drawings
|-
| 4 || Apply Margin & Create Technical Costing || Sister Company || Technical Costing
|-
| 5a || Generate MR:P || Sister Company || Material Request: Purchase
|-
| 5b || Convert MR:P to PO || SPLD || Purchase Order
|-
| 5c || Generate SO || SSD || Sales Order
|-
| 6a || Generate Take Off Sheet || SSD → PPC || Take Off Sheet
|-
| 6b || Generate Material Planning Sheet & WO || PDTD || Material Planning Sheet / Work Order
|-
| 7 || Execute Production & Shipping Pickup || Production / Shipping || Work Order
|}

== Documentation Checklist ==

* CSC SO/JO (ERPNext Project)
* Action Request Form (ARF)
* PDTD Estimates & Drawings
* Material Request: Purchase (MR:P)
* Purchase Order (PO) & Sales Order (SO)
* Take Off Sheet
* Material Planning Sheet
* Work Order (WO)

== Related Pages ==

* [[Standard Operating Procedure: Distributed Minute Taking & Task Ownership 251208]] — Task ownership SOP
* [[Memo: Team Roles & Reporting Process Clarification 260320]] — Role definitions for Sales, Marketing, Operations, IT, and Support
* [[IT REQUEST (OP-ERP-ITR) - EDITED 250801]] — IT request process
* [[ERpnext Asset Management Procedure 260113]] — ERPNext asset management
* [[8D (Eight Discipline) Problem Solving Procedure]] — Problem-solving framework for non-conformances