Appe n d ix A Ge ne ri c V a lue C h ai n in the H igh L ev e l O rg a n izati on C h ar t

An Inte gra te d Vi ew on Purc h asing and I n fo rm ation Te chnology in th e R ede si g n of the Pur cha sing Re quisi tion Proce ss A p pe ndi ce s Aut hor : Ja n-J aap Mo erm an U n iv er si ty : U n iv er si ty of G ro n ing en Fa cult y : B u si nes s E conomic s Maj o r : B u si nes s Adm inistrati o n , Busine ss & ICT Supe rv is ors Uni v er si ty : Prof . D r. D. J. F. K am ann, Dr. D.J . Sc h aa p S upe rv is or s ABC : Dr s. J. Ga ra s, Dr s. R. K rui t P lace : C air o, E g y p t Da te : Aug u st 30, 2 005

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P PE NDI CE S N D IX A GE N E R IC V A L U E C H AIN IN T H E H IGH L E V E L O R G A NIZ A T IO N C H AR T ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... .. 3 N D IX B OR G A N IZ A T IO N C H A R T AL A H RA M B E V E R A G E S C O M P AN Y J U N E 1 , 2 0 0 5 .... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... ... .... ... .... ... .... .. 4 P P E NDI X C A B C C O MPAN IE S J U NE 1 , 2 0 0 5 ... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... .. 5 N D IX D OR G A N IZ A T IO N C H A R T O F T H E PR O C UR E M E N T DE PAR T M E NT J U NE 1 , 2 0 0 5 ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .. .... ... .... ... .... .. 6 N D IX E OR G A N IZ A T IO N C H A R T O F T H E I T D E PA RT ME N T J U N E 1 , 2 0 0 5 .. .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... .. .. ... .... .... ... .... ... .... ... .... .. 7 N D IX F PR O C U R E M E N T GOO D S A N D S E R V ICE S .. ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... .. ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .. 8 N D IX G GOOD S SUPPL IE S RE Q U E S T ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .. 9 N D IX H R E Q U E S T F O R SE R V IC E S ... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... .... .1 0 N D IX I OP E R AT IN G E X PE N S E S C O NT R O L L E D B Y GSR ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .1 1 N D IX J F L O W C H AR T D IA G RA M S PU RC H A S IN G C Y C L E ... ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .. .... ... .... ... .... ... .... .... ... .... ... .... .1 2 N D IX K F L O W C H AR T D E SCR IPT IO N S PUR C H A S IN G CY CL E ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .. .. ... .... ... .... .... ... .... ... .... ... .... .2 1 N D IX L F L O W C H AR T D IA G RA M S C U R R E N T RE Q U IS IT IO N PR O C E SS.. ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... ... ... .... .... ... .... ... .... ... .... .3 0 N D IX M F L O W C H AR T D E SCR IPT IO N S CU RR E N T R E Q U IS IT IO N PR O C E S S ... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .. .... .... ... .... ... .... ... .... .3 6 N D IX N R E S O UR CE S T AT IS T IC S CU RR E N T RE Q U ISIT IO N PR O C E S S ... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... ... .... ... .... .... ... .... ... .... .4 2 N D IX O R E GI ST E R E D O R AC L E PUR C H ASE OR DE RS ... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... .. .. ... .... ... .... ... .... .... ... .... ... .... ... .... .4 3 N D IX P R E GI ST E R E D O R AC L E RE Q U ISI T IO N S ... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .. .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... .4 4 N D IX Q F L O W C H AR T D IA G RA M S R E D E S IG N E D RE Q U ISIT IO N PR O C E S S .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .. .... ... .... .... ... .... ... .... .4 5 P P E NDI X R F L O W C H AR T D E SCR IPT IO N S R E DE S IG N E D R E Q U IS IT IO N PR O C E S S ... ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .. .. .... ... .... ... .... ... .... .5 1 N D IX S O V E R V IE W O F T H E AU T O M A T IO N IN T H E RE D E S IG N E D RE Q U IS IT IO N PR O C E S S .. ... .... ... .... ... .... .... ... .... ... .... .... ... ... ... .... ... .... .5 6 N D IX T E L E C T R O N IC R E Q U E S T F O R M ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... .5 7 N D IX U R E Q U E S T O R S T R U C T URE ... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... .... ... .... ... .... ... .... .5 8 N D IX V OR M M A T E R IAL S IN C L UDE D IN T H E F IR S T I M PL E M E N T A T IO N P H A S E ... ... .... ... .... ... .... ... .... .... ... .... ... .... ... .... ... .... ... .... .... ... .... .5 9

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Appe n d ix A Ge ne ri c V a lue C h ai n in the H igh L ev e l O rg a n izati on C h ar t

Pri mar y Sec ondary

Marg in

Ma rgin

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d ix B Or ganization C h art Al Ah r a m Beverages Com p an y J une 1, 2005

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Appen d ix C ABC Co m p a n ie s June 1 , 2005

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d ix D Or ganization C h art of the Proc ur ement De p a r tm en t Ju n e 1, 2 005

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Appen d ix E Or ganization C h art of the I T Department J une 1, 2005 IT M ana ger Helpd e s k & S e c u rit y L eade r C& I Le ader H e lp de s k E n gi neer H e lp de s k E n gi neer H e lp de s k E n gi neer H e lp de s k E n gi neer H e lp de s k E n gi neer H e lp de s k E n gi neer

Seni or Engi n e er C & I Engi n eer Seni or Tel ep ho ne Te ch ni ci an Te le ph on e Te c h n ic ia n H R & Tec hni c a l L eader

IT S a les & M k tg L e a d e r

IT Pur c ha s ing/ Fi nance Le ad e r IT Purc has ie/FI An a ly s t IT Sales /R e tail An a ly s t T e ch ni cal A n a ly s t

IT Sales /R e tail An a ly s t T e ch ni cal A n a ly s t

IT Sup p ly C hai n & In tegr at ion Le ad e r An a ly s t M a s ter D a ta An a ly s t Net w or k Sup por t Te ch ni ci an

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n d ix F Pr oc ure m ent goo ds an d s er v ic es

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Appe n d ix G Go od s Sup plie s Re que st

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n d ix H Re que st f o r Se rv ic es

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Appe n d ix I Ope rating e x pe n se s c o n tr o lle d by G S R an d S R O p ex c o nt ro lle d b y G S R 11.6 7 % 17.86%

9.55%

7.04%

1 2 .89%

5.84%

0.48 % 3.67% 0.03 % 4.27% 2.33%

0.63% 2.67% 3.64% 6 .36%

0.05% 0. 72% 1. 19%

0 .84% 1.3 1 % 0. 32% 0.34 %

4.91% 0.2 2 %

1. 18%

Ot he r St af f C o st U n if orm S o ci al & Rec re ati o n al Ac tiv iti es St at io n ary S u bs cr ip ti on Co ns um a b le s & S u ppl ie s Re n o v ati on s & Im prov em en ts C le a ning S er v ic es Ot he r A d m in . E x pe ns e s O th er U til iti es & O ff ice Ex p e n ses F o cu s Grou ps A g en cy Resea rc h F ees P rodu ct T e st in g C o st s T v A d s (prod ) Ra di o A d s (prod) P ri n t M e d ia (prod ) Ou t D oor (pro d) Tv A d s Ra di o A d s Pr in t M e d ia Ou t D oor P rom oti o n al M a te ria ls O th er Ma rk et ing E x pe ns es Co m p an y E v en ts Co ns um e r E v en ts C lassi fi ed A d s Ma na g em ent R o ad S h ow s Re port s & P ubl ic at io ns

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d ix J Fl owchart Diagr am s P u r chasing Cyc le

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Co p y WP R

G oods S uppl ie s R equ est - St age 3 (Pu rc hase R eque st ) Review W P R S ign W P R WP R & G S R S ign W P R No St am p f o r rec e iv ed e- P R

4 A p pr ove e-P R

2 Ye s Wa re h o us e Ad m . GS R C heck avai labi lit y In S tock? No

7 C heck W P R A ppr oval Si g n WP R Ye s

Cr ea te & Sig n W ar eh ouse P ur cha se R equ es t WP R & G S R R e view WP R Mak e c opy GS R GS R WP R & co p y GS R

M a ke & St o re cop y GS R

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G ood s Su ppl ies R equ es t - Sta ge 4 (Purc has e O rde r) WP R & c o py GS R 3 e- P R Cr e a te & Sig n PO

Cre a te P O PO

Fi nd supp lie r PO

Pu rc h a si ng Ad m . Sig n ? Re vi e w PO S ign? Re vie w PO Re vie w PO Si gn ?

Ye s Ye s

No No No 5

Co p y PO, copy GS R

Po st p on e Po st po n e P o stp one

e- P O Ma tc h? Ye s WP R & c o py GS R PO Co p y PO , cop y GS R

Pr in te d e -PO Ag re e o n P aym en t te rm s

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G o ods Supplies R eques t - St age 8 (R elea se C heque & U pdat e Ac count s) 6 PO, e- PO, GSR, W P R, In vo ic e, RN , C h equ e R eque st Ch ec k P a cka ge a nd ca lc ul at io n s A p pr o val S ig n C hequ e R eque st Yes 9 Re vie w P a ym en t Re le a se A ppr ov al Si gn Pay m ent Re le a se Si gn Pa ym en t Re le a se Pur chas in g P a cka ge

Yes R ev iew an d si g n P P

Re le a se C heq ue 6,7 e- R N e- D N

C opy D N C opy R N

Ch e ck Da ta En tr ie s U pda te Ac count s

Pr epar e Pa ym e nt s Appr ov al

Pa yme nt Re le as e Ye s

Ban k & Ac coun t in fo

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Appen d ix K Fl owchart Desc r iptions P u rchasing Cycle PRO C ESS NA M E : S tag e 1 (I ni ti a l R eq u es t) PRO C ESS DA TE : M ay 16, 20 05 PURPO S E : O b ta in app ro v al f o r G o o d s S u p p li es R eq u es t PRO C ESS O W NER (S) : Re que st o r, D irect M anag er, Bu dg et Ow ner, P u rc h asin g M emb er, Supp li er NO RM AL FLO W O F EV EN TS 1. T h e R eques to r creat es a G o o d s S upp lie s R eq u es t b y en terin g the requ ired fi eld s o n t h e G S R f o rm . If it co n cerns s tatio nery g o o ds , a s p ecial s tatio nery f o rm n eed s to be att ached w ith a s p ec ificat io n o f t h e req u ired g o o ds . 2. Req u est o r send s the G S R fo rm to th e D ir ect M anag er . 3. Th e D ir ect M an ager de ci de s t o a p p rove or d is ap p rov e. 4. If the D irect M an ag er d is app ro v es t h e p ro ces s flo w te rm in ates . 5. If t h e D ir ec t M ana ge r s ig n s f o r a p p roval , th e GS R w il l b e s end to pu rc h as in g . 6. A Purch as ing M em b er check s t he pric e o f t h e g o o ds r eque st ed by a cqu ir in g d ata fr o m th e pu rc h asing a d m ini strati o n , p u rchase pric ing l ist (u pd ated m o n th ly ) o r Sup p li er s. 7. T h e prede fin ed pro ces s "S et P ric e" als o in clud es th e q u o tati o n t h at m ay b e ne eded . 8. T h e Purchas in g M em b er ad ds th e p ric es fo r ev ery s ing le it em to th e G S R a nd si g n s fo r se tti ng the prices . 9. If neces sa ry t h e Pu rc h as in g M emb er upd ate s the prices h eld in th e pu rc has in g a d m ini st ratio n o r the sh ared s u pp lier p ri ce li st . 10 . T h e G S R w ill be s end to the B u d g et O w ner o f t h e R equ es to r. 11 . T h e B u d g et O w ner ch eck s t h e bud g et exce l s h ee t. 12 . If the Bud g et Ow ner ap pro v es, the bu dg et shee t w ill be upd ated . 13 . Th e B u dge t O w n er s ig n s f o r a p p rova l a n d s end s t h e GS R r equ es t t o t h e B u dge ti n g Tr ac k er s. PRO C ESS IN/O U T : - / A ppro v ed G S R to bu dg et in g E XCE P T IO N S : Di re ct M an age r d is ap p ro v es , pr ic es ma y not b e f oun d, B u d g et Ow n er di sa pp rove s. SY ST E M S I N V O L V E D : B u dge t e x ce l sh ee t, P u rc ha si ng Ad mi n is tr at io n , P u rc h as ing pr ic e li st .

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C ESS NA M E : S tag e 2 (B udge t a p pr o val) C ESS DA TE : M ay 16, 20 05 S E : Obt ain bu dg et ap pro v al C ESS O W NER (S) : B u dg et T rack er , C h ie f F inan cial O fficer, B u dg et O w n er , R eq u es to r RM AL FLO W O F EV EN TS 1. T h e B u d g et T ra ck er recei v es th e G S R f o rm fro m th e B u dg et O w ner. 2. T h e B u dg et Track er ch eck s the fo rm by requ es tin g info rm ati o n fr o m the m as ter bud g et s h ee t and da ta entry in th e O racle s y st em . T h e s y st em w il l al so alarm t h e B u dg et T rack er i n ca se o f ex ceede d b udg et. 3. If the B u d g et T rac k er di sa ppro v es , t h e G S R fo rm w il l b e returne d t o th e B u dg et O w n er . 4. T h e B u d g et O w ner w ill s end th e fo rm to t h e C F O fo r exc epti o n al b udg et a ppro v al o r fi lls i n a "trans fer acco unt s" f o rm . 5. T h is f o rm w il l be s end bac k t o th e B u dg et T rack er fo r ap pro v al. 6. If th e C F O appro v es the requ es t, th e G S R f o rm , s ig n ed by t h e C F O f o r ex cept io n al ap pro v al , w il l be send t o the Bu dg et O w ner, w h o fo rw ar d s it t o the Bu dg et T rack er. 7. W h en the B u d g et T rack er app ro v es th e G S R fo rm o r th e B u dg et T ra ck er receiv es th e G S R fo rm f ro m t h e C F O , the B u d g et Track er ente rs th e da ta o f t h e re q u es te d g oods in to th e O ra cl e re qu is it io n d ata b as e. Thi s wa y t h e B u dge t Tr ac k er c re at es a n e le ct roni c P u rc h as e R equ is it io n ( e- PR ). T h is inc lud es c o py ing t h e bu dg et s eq u en ce n u m b er to th e G S R . R arely th e B u dg et T rack er s p ecifies a certai n s u p p li er fo r th e des ir ed g o o d s. 8. Th e B u dge t Tr ac ke r s ig n s t h e ma nu al G S R a n d f ile s t h e a p p rove d y ell ow c o p y o f th e G S R f o rm t o t h e B u dge t Tr ac ke r a d m in is tr at io n fo r track ing pu rp o ses . 9. Th e B u dge t Tr ac ke r s en d s t h e GS R f o rm to t h e R eq u es tor . 10 . T h e R eq u es to r fil es th e b lue co p y o f t h e G S R fo rm t o t h e R equ es to r ad mi ni st ra tio n. 11 . Th e R equ es to r s en d s th e or igi n al G S R f o rm t o t h e W ar ehou se C le rk. C ESS IN/O U T : G S R fo rm w ith co pi es / O rig in al G S R fo rm XCE P T IO N S : E x ce p ti ona l b u dge t a p pr o v al a cq ui re d , C h ie f F in anc ia l O ff ic er di sa p p ro ve s. ST E M S I N V O L V E D : O ra cl e re q u is it ion d at ab as e, B u dge t a d mi ni st ra ti on , R equ es to r a d mi ni st ra ti on , M as ter bu dge t s h ee t

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P R OC E S S N A M E : Stag e 3 ( P u rch as e R eq u es t) PRO C ESS DA TE : M ay 16, 20 05 PURPO S E : C h ec k i nve nt or y an d c rea te a p u rc ha se r eq u es t PRO C ESS O W NER (S) : Wa re h ous e C le rk , Wa re h ous e M an ager , W ar ehou se D ir ec tor , P u rc h as in g C le rk, P u rc h as ing Di re ct o r NO RM AL FLO W O F EV EN TS 1. T h e Wareho us e C lerk recei v es t h e o ri g in al G S R fr o m the R eq u es to r. 2. T h e Wareho us e C lerk ch eck s fo r a v ail abi lit y . 3. If th e it em s a re a v ai la b le t h e Wa re hous e C ler k c re at es a D eli ver y N o te ( S ta ge -7 ) 4. If o n e o f the ite ms a re unav ail abl e, th e W areho u se C ler k m ak es a co p y o f t h e G S R . 5. T h e Wareho us e C lerk creat es an d s ig n s a Wareho us e Pu rc h as e R eques t (WPR ) and at tach es th e W P R to the G S R co py . 6. Th e or ig in al G S R wi ll b e s tor ed i n t h e W ar ehou se A d mi ni st ra ti on. 7. T h e WPR w ill be f o rw arded to the Wareh o u se M ana g er. 8. T h e Wareho us e M anag er s ig n s after app ro v al and fo rw ards t h e W P R t o th e W areho u se D ir ecto r. 9. T h e Wareho us e D irecto r chec k s fo r o v er al l av ail abi lit y an d s ig n s t h e W P R if t h e i tem s are n o t av ai labl e at any Wa re h o u se . 10 . T h e Wareho us e D irecto r s ends the WPR a nd the co p y G S R atta ched to th e Purchas ing C lerk . 11 . T h e P u rc h as in g C lerk s tam p s the WPR fo r recei pt and fo rw ards i t to th e Purcha si ng D ir ec to r. 12 . T h e P u rc h as in g D irecto r c h eck s the e-P R and fo rw ards i t t o a P u rc h as e M emb er. 13 . Th e P u rc ha si ng Di re ct o r al so ch ec k s t h e W P R , s igns f o r a p pr ov al a n d s en d s t h e W P R to a p ar tic u lar P u rc ha si ng M em b er . PRO C ESS IN/O U T : O rig in al G S R / W P R , e-P R E XCE P T IO N S : T h e P u rc ha se D ir ec tor , Wa re h o u se M an ag er or W ar ehou se D ir ec tor ma y di sa p p rove t h e re qu es t. SY ST E M S I N V O L V E D : W ar ehou se A d mi ni st ra ti on, O ra cl e P R da ta ba se

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R OC E S S N A M E : Stag e 4 ( P u rch as e O rd er) C ESS DA TE : M ay 16, 20 05 S E : T ran sf o rm Purcha se R eq u es t to Pu rc h as e O rd er C ESS O W NER (S) : P u rch asing M em b er , P u rc hasin g M anag er , P u rc h as ing Di re ct or , C O O , S u p p li er RM AL FLO W O F EV EN TS 1. T h e P u rc h as in g M emb er r eceiv es the Wa re h o u se P u rchas in g R equ es t (WPR ) an d a co p y o f t h e G S R ( attac h ed ) fro m th e Purcha si ng D ir ect o r. 2. T h e P u rc h as in g M emb er w ai ts u n ti l t h e el ectro n ic P u rc h as e R equi siti o n ( e-PR ) has b een r eceiv ed t o m atc h t h e W P R . 3. If t h e W P R an d e-PR m at ch, the P u rc has in g M emb er f ind s a S u p p li er . 4. Af te rw ar ds t h e Su p p li er an d t h e P u rc h asi ng M emb er n eed to a g re e on t h e p ay m en t te rm s. 5. A fter f indi ng a su it able S u p p li er , th e WPR i s tran sf o rm ed in to a Purch as e O rd er (P O ). T h e el ectro n ic P O (e- P O ) s til l mi ss es s o m e fie lds , s o the m anu al P O is u sed fo r furth er pro cessin g . 6. Th e P O i s s end to th e P u rc ha si ng M ana ger . 7. Th e P u rc ha si ng M an ager s ign s fo r a p p rov al o r pos tpone s t h e P O if m ar k et p ri ce s a re u n re al is ti c hi gh. 8. T h en th e P u rcha si ng M ana g er send s it to the P u rchasi ng D irect o r. 9. Th e P u rc ha si ng Di re ct o r s ign s f o r a p p rov al o r pos tpon es t h e P O . 10 . T h e P u rc h as in g D irecto r s en d s i t t o th e C h ief O p erati o na l O ffice r. 11 . Th e C h ie f Op er at iona l Of fi ce r si gns t h e P O o r pos tpon es i t an d r et u rn s it to th e P u rc ha si n g M emb er . 12 . Th e P u rc ha si ng M em b er f il es a c opy of th e P O a n d t h e c opy GS R a n d WP R a n d a pr in t- out o f th e e- P O . 13 . T h e P u rc h as in g M emb er s end s the f ile b y fax o r m ail to the Su pp lier. 14 . T h e P u rc h as in g M emb er o rders th e g o o d s acco rdi n g to a g iv en tim e by t h e WPR . 15 . T h e Wareho us e k eeps track o f o rdered g o o ds by ph o n e and e-ma il. C ESS IN/O U T : W P R & cop y G S R / c opy P O , c opy GS R XCE P T IO N S : T h e Purcha si ng M ana g er, Purch as ing D ir ec to r o r C h ief O p erati o na l O ffice r m ay dis ap p ro v e. T h e S upp lie r m ay no t be abl e to acce pt the o rder. ST E M S I N V O L V E D : P u rc h as ing Ad mi ni st ra ti on , O ra cl e P O da ta ba se , Or ac le P R d ata b as e.

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P R OC E S S N A M E : Stag e 5 ( R ecei vin g G o od s) PRO C ESS DA TE : M ay 16 , 20 05 PURPO S E : T o recei v e g oods or d er ed . PRO C ESS O W NER (S) : S ecu ri ty , L abo rato ry , W ar eho u se NO RM AL FLO W O F EV EN TS 1. W h en th e o rdered G o o d s a rriv e at lo ca tio n, the se curit y s tam ps the inv o ic e o f th e S u p p li er. 2. Th e d eli ver y d et ai ls wi ll b e r egi st er ed i n t h e ma n u al r eg is te r book . 3. Th e W ar ehou se C le rk w ill c o m e ov er t o ha ve a vis u al c h ec k o n t h e de li v er ed g oods . 4. T h e Wareh o u se C lerk cr ea tes an I n it ial R ecei v in g N o te (IR N ) af te r app ro v al . 5. Th e s u p p li er w ill dr ive th e g oods t o t h e W ar ehous e. 6. Th e c opy of th e P O a n d t h e d el iv er ed g oods w il l be ma tc h ed w it h th e G S R a n d th e cop y of t h e WP R. 7. T h e Su pp lier w ill be f o rw arded to the Wa re h o u se . 8. T h e Wareh o u se C lerk mat ches the g o o ds d eliv ered t o t h e s av ed PR and G S R . 9. If t h er e is a mi sm at ch be tw ee n th e goo d s d el iv er ed a n d th e G S R , th e g oods w il l b e r etu rn ed t o t h e S u p p li er . 10 . If there i s a m atc h, t h e Wareho us e C lerk t ra n sf o rm s t h e I R N int o a R ecei v in g N o te (R N ). 11 . Th e R equ es to r wi ll be a ske d t o a p p rove t h e d eli ve re d go od s an d t h e re qu es tor n ee d s t o s ign f o r i n sp ec tion. 12 . Th e S u p p li er wi ll d el iv er t h e I nvoic e a t t h e P u rc h as in g D epa rt me n t. 13 . Th e W ar ehou se C le rk fo rw ar ds t h e R ece iv in g N o te t o t h e Wa re h ous e M ana ge r. PRO C ESS IN/O U T : Invoic e, Goo d s / R ecei v in g N o te E XCE P T IO N S : M is m at ch b etw ee n go od s re ce iv ed a n d g oods or d er ed . SY ST E M S I N V O L V E D : S ec u ri ty a d mi ni st ra ti on, P u rc h as in g A d min is tr ati on.

- 26 -

R OC E S S N A M E : Stag e 6 (R egi ster R ece ived Go od s) C ESS DA TE : M ay 16, 20 05 S E : P ro ce ss and r eg is te r R eceiv ed G o o d s C ESS O W NER (S) : Wa re h ous e M an ager , S u p p li er , Cos tin g, P u rc h as e M emb er , Wa re h ous e S y st em P o st in g RM AL FLO W O F EV EN TS 1. T h e Wareh o u se M ana g er (WM ) recei v es t h e R eceiv in g N o te (R N ) fr o m t h e W areho us e C lerk 2. Af te r ap p rov al th e W ar ehou se M an ag er s igns t h e R N . 3. A co p y o f t h e R N an d t h e co py o f th e W P R w ill be s av ed in t h e Wareho us e A d m in is trati o n . 4. A co p y w ill be se nd to C o sti n g . 5. A co p y w ill be se nd to A u d iti ng . 6. T h e o rig in al R N w ill b e fo rw arde d t o th e Purch as ing M em b er . 7. T h e Purchas in g M em b er s end s th e en tire G S R do ss ie r to the Fi nan ce de partm ent (Aud it ing ) rev iew . 8. T h e g reen co p y o f t h e R N w ill be se nd to Wareho us e S y st em P o stin g . 9. T h e Wareh o u se Sy st em Po st in g m at ches t h e e- PO to the co p y R N an d creat es an elect ro ni c R N ( e- R N ) in O racle . 10 . T h e Wareh o u se Sy st em Po st in g w il l s av e a co py o f th e R N in to t h e Wareho us e S y st em P o stin g A d m in is trati o n . 11 . T h e Elect ro nic R ece iv in g N o te w ill be p ri n te d an d fo rw ar d ed to t h e P u rc h as in g M emb er . 12 . Th e P u rc ha si ng M emb er c o ll ec ts a ll G S R r el ate d doc u m en ts a n d f o ll o w s u p on th e pa y m en ts te rm s, di sc u ss ed w ith t h e s u p p li er . M o st o f th e ti mes t h is m ean s creat ing a C h equ e R eques t. C ESS IN/O U T : R ecei v in g N o te / e -R N & G S R do ss ie r XCE P T IO N S : W areho use M anag er disap p ro v es the R N , G S R d o ss ier i n co m p lete ST E M S I N V O L V E D : Oracle RN dat abase, Co sti n g Ad mi n is tr ati on, P u rc ha si n g A d m in is tr at io n , Wa re h o u se Ad mi ni st ra ti on , W ar ehou se S ys te m P o st ing Ad m in is trati o n.

- 27 -

P R OC E S S N A M E : Stag e 7 (D eli v ery of Goo d s) PRO C ESS DA TE : M ay 16, 20 05 PURPO S E : D eli ve r Goods t o r eq u es tor PRO C ESS O W NER (S) : Wa re h ous e C le rk s, Wa re h ous e M ana ge r, Re q u es to r, Wa re h o u se S y st em P o st ing NO RM AL FLO W O F EV EN TS 1. A ft er si g n in g the R ece iv in g N o te , t h e W areho us e C lerk creat es a D eliv ery N o te (D N ). 2. T h e DN wi ll be fo rwa rd ed t o t h e W areho use M anag er . 3. Af te r ap p rov al th e W ar ehou se M an ag er s igns t h e D N . 4. Wh en t h e go od s wi ll b e d eli ver ed, th e DN wi ll be s igne d f o r r ec ei p t b y t h e r eq u es tor i f a p p roved . 5. T h e Req u esto r sa v es a c o py o f th e D N i n t h e R eque st o r Ad m ini str atio n. 6. T h e o rig in al D N w ill be ret u rned to the Wa re h o u se C lerk . 7. T h e Wareh o u se C lerk f iles th e o ri g in al D N . 8. F u rthe rm o re t h e W areho use C le rk ch eck s t h e inv ent o ry . T h is is a predefin ed pro ces s w h ere i n v en to ry lev els w ill be d eterm in ed a nd in c as e o f crit ical inve nt or y le ve l, a goo d s r eq u es t wi ll b e s en d t o p u rc h as in g . 9. Th e W ar ehou se C le rk se n d s a c opy of th e DN t o Cos tin g. 10 . A c opy of th e De li ve ry Not e w il l be f o rw ar d ed to Wa re h ous e S y st em P o st in g f o r d ata e n tr y. 11 . W ar eho u se S y st em Po st in g creates a n el ectro n ic D N in the O racle D N dat abas e. PRO C ESS IN/O U T : D N / A p p ro v ed D N E XCE P T IO N S : Wa re h o u se M an ag er d is app roves , R equ es to r re je ct s g oods SY ST E M S I N V O L V E D : W ar ehou se a d mi ni st ra ti on , R equ es to r ad mi n is tr at io n , O ra cl e D N d ata b as e

- 28 -

R OC E S S N A M E : Stag e 8 (R elea se C h eq u e & U p d a te A cco un ts ) C ESS DA TE : M ay 16, 20 05 S E : U p d ate bo o k i n v ento ry acco u n ts and releas e cheq ue C ESS O W NER (S) : A udi tin g M em b er, T reasury M em b er, T reasury M anag er , Au dit in g M anag er , Aud it ing Di re ct o r, F in anci al D irect o r, Co st ing RM AL FLO W O F EV EN TS 1. T h e A u dit ing M em b er r ece iv es the G S R p ack ag e an d t h e C h eq ue req u es t (a m o u n t > L E 500 ) fr o m th e Purch as ing M em b er . 2. T h e A u dit ing M em b er check s th e m as ter cal cul atio n a nd check s if th e G S R pack ag e co n tain s o n ly o ri g in al d o cu m en ts . 3. A ft er appro v al t h e A u d it ing M em b er s ig n s t h e C h eq ue R equ es t (C R ) an d fo rw ards it t o t h e T reas u ry M em b er. 4. T h e T rea su ry M em b er prepares a P ay m en ts Perm is si o n (P P). 5. T h e T rea su ry M em b er as k s th e T reas ury M anag er f o r b ank an d acc o u n t d etai ls . 6. T h en t h e T reas ury M em b er s end s th e w h o le pa ck ag e to th e A u dit in g M anag er . 7. T h e A u dit ing M an ag er rev iew s t h e P P an d i f app ro v ed, fo rw ards i t to th e A udi tin g D irecto r. 8. T h e A u dit ing D ir ecto r s ig n s fo r ap pro v al an d fo rw ards the pack ag e to t h e F inan cial D ir ect o r o r t h e F in anci al M anag er. T h is dep end s o n the aut h o rit y li m its . 9. T h e F inan cial D ir ec to r rev iew s t h e p ack ag e, si g n s the P P a nd re tu rns t h e p ack ag e t o t h e T reas ury M em b er. 10 . T h e T rea su ry M em b er r el eas es a c h eq ue a nd fo rw ar d s it to o n e o f th e C h ief O fficer fo r th e firs t s ig n at ure. 11 . T h e C o st ing M em b er recei v es a co p y o f t h e D N o r a co py o f the R N . 12 . T h e ent ri es m ade by t h e Wareho us e S y st em P o stin g are a u to mat ical ly f o rw ar d ed to C o st in g . 13 . Th e C o st in g M emb er ch ec k s th e e n tr ie s a n d u p d ate s t h e i nve nt or y ac coun ts . C ESS IN/O U T : G S R p ack ag e / C h eq ue XCE P T IO N S : Ch eq ue ma y b e r ejec te d b y t h e A u d iti n g M ana ge r, A u di ti n g D ir ect or or Fi na n cia l Di re ct o r. ST E M S I N V O L V E D : O racle D N dat abas e, O racl e R N da taba se , A cco u n ts

- 29 -

P R OCESS NA M E : S tag e 9 (F in a lize P aym en ts) PRO C ESS DA TE : M ay 16, 20 05 PURPO S E : F inali ze Pay m en ts PRO C ESS O W NER (S) : C h ief O ffice r, T reas u ry M em b er , A cco unt s Pay ab le M emb er, S u p p li er NO RM AL FLO W O F EV EN TS 1. T h e C h ie f O ff icer receiv es th e ch equ e an d t h e at tach ed P u rc has in g Pack ag e fr o m th e T reas ury M em b er 2. A ft er appro v al t h e C h ie f O ff icer s ig n s and re tu rn s the pack ag e to the T rea su ry M em b er . 3. T h e T rea su ry M em b er co ll ects t h e cheq ues w ith o n ly o n e si g n atu re ( B at ch). 4. T h en t h e T reas ury M em b er s end s th e pa ck ag e an d th e ch equ e to C h ief O fficer 2 . 5. A ft er app ro v al fr o m th e C h ie f O fficer 2 , the T reas ury M em b er se nds th e ch equ e to the s u p p li er, o r m o st o f th e ti me s, t h e s upp li er co m es to the o ffice to co llec t th e ch equ e. 6. T h e Su pp lie r w ill s ig n fo r receip t a nd co ll ects his m o n ey a t th e b ank . 7. T h e r eceip t w ith th e Purcha si ng P ack ag e w ill be fo rw ar d ed fro m th e T reas ury M emb er to the A cc o un ts Pay ab le M em b er. 8. T h e A /P M em b er up dat es th e A cco u n ts a nd st o res th e w h o le Purcha si ng P ack ag e in to the A /P A d m in is trati o n . PRO C ESS IN/O U T : P u rc has in g Pack ag e & C h eq ue / EN D E XCE P T IO N S : C h ief M emb ers dis ap p ro v e SY ST E M S I N V O L V E D : A cco un ts Pay ab le A d m in is trati o n , A cc o un ts s y st em

- 30 -

d ix L Fl owchart Diagr am s C u rre nt Requisit ion P roc ess B udget T racker

R e ques tor

$

$$

P u rchasi ng Member

D ir e ct Manager W a rehous e Manager

$$$

P u rchasi ng Member S uppl ie rs

$ $ B u dget Ow ner R eques tor R equest f o r G oods PO

W a rehouse K eeper P u rcha si ng C lerk P u rchasi ng D ir ector

R e ques t for S e rvi ces W a rehous e D ir ector W a rehous e C le rk

- 31 -

Ware hous e

Mana Requ ger

esto

r ant rm Info ct Dire

Mana ger

Purch asi ng

Mem

ber liers Supp

- 32 -

Req uest f or MRO mat e rials Ye s Ye s P rice list su pp lie rs

Ap pr o va l

St ar t GS R S ign GS R

Si gn G S R Pu rc ha si ng Ad m .

Co lle ct in fo o n N e ede d pa rts Ch eck GS R

C reate & S ign GS R 2 D et e rmi ne Pr ic e

Pr od u ct in fo P rice in fo 1 2

1 2

A p pro val Co m pa re it em an d pr ic e Ye s Yes

No Ne w Co de ? Up da te In ve nt o ry co d es In ve nt o ry co d es

A dd i n ve nto ry co d e

Li st o f in ve nt or y co des Pr ed ef in e d Pr oc e ss o f cr e ati ng the GS R P redef in ed P roc es s o f d e te rm in in g pr ice

- 33 -

SR

Budget Appr oval

Reques tor / Pla nt

Engineer Budget

Owner er Track dget Bu

Ma st er budget s heet Approv al Yes

Budget Adm . Sign GSR C hec k Budge t

Orac le e-PR C reat e Purc has e R equis iti on

Yes Ch ec k G S R & Budget Approv al Sign GSR U pdat e Budget sh ee t

Budget s heet

1 GSR GSR GSR 3

R eques to r Adm .

Budget Sheet Yellow c opy GSR Blue copy GSR GSR 4 4

4 Predef ined Proc es s of dat a ent ry int o Orac le (ongoing projec t)

- 34 -

P ur cha se M ater ia l Re ques t

Wa reho use

Cle rk

Wa reho use

system posti ng

memb er

Wa reho use

Dire ctor Wa

reho use

Manag Wa er

rehou se Ke eper

R evi ew W P R S ign W P R & GS R WP R & G S R & co p y G S R

2 W ar ehous e Ad m. GS R In S to ck No WP R & G S R

Or ig in al GS R Chec k st oc k inv ent o ry O ther In vent o rie s

De liv er pr o du ct s Ye s No Rev iew & S ign WP R

Cr eat e & S ign W P R

6 Ma ke co py G S R

R equ es t Ca rd e x New it em ? No

Ye s

5 7 Lis t of inv ent or y codes Chec k I tem c od e WP R & GS R Righ t c o de? Ye s S ign G S R 5 6

4 P redef ined P roc es s o f reque st ing f o r new in ve n to ry ca rd

P redef ined P roc e ss of cr eat ing a P ur chas e Reques t

W P R & c opy GS R P rede fine d P roc es s of deliv er ing pr oduc ts 7

- 35 -

Appendix M Flowchart Descriptions Current Requisition Process

PROCESS NAME: Stage 1 (Request for ORM materials ) PROCESS DATE: June 4, 2005

PURPOSE: Select product and set price

PROCESS OWNER(S): Requestor, Direct Manager, Purchasing Member, Supplier NORMAL FLOW OF EVENTS

1. The Requestor is triggered by a need for a product or service.

2. The Requestor select a product based on information provided by a specific informant. This may be the Warehouse, Purchasing or another internal or external person (including suppliers).

3. The Requestor creates a Goods Supplies Request or a Request for Service. If the request concerns stationery goods, a special stationery form needs to be attached with a specification of the required goods.

4. In case of a tangible good, the Requestor sends the GSR to the Warehouse Manager who checks the shared list of inventory item codes and fills in the item inventory code.

5. In case the item has not an inventory code, a new code will be added to the list.

6. Then the Requestor sends the (G)SR form to the Direct Manager.

7. The Direct Manager determines the need of the product.

8. After approval the Direct Manager signs the (G)SR and send the form to a Purchasing Member.

9. The Purchasing Member determines the price of the goods (see process name: determine price) requested by acquiring data from the purchasing administration (historical data), the supplier list (updated periodically) or directly from suppliers (real-time data).

10. The Purchasing Member adds the price for every single item to the (G)SR and signs for adding the prices to the form.

11. If necessary the Purchasing Member updates the prices held in the purchasing administration or the shared supplier price list.

12. The GSR will be send for approval of the priced products to the Budget Owner of the Requestor's department.

EXCEPTIONAL PROCESS FLOWS:

1. The Direct Manager reject the request.

2. When requesting for specific products, other departments may also be involved in making the GSR (e.g. MIS involvement in requesting for IT spare parts).

DATA IN/OUT: Priced (G)SR for budget approval

SYSTEMS INVOLVED: Purchasing Administration, Supplier list, Inventory item codes list (excel) PROBLEMS IDENTIFIED

• Selecting goods may take a long time when the information is difficult to obtain.

• Even if it is not allowed, the Requestor sometimes contact the supplier directly.

• The Requestor has no tracking options in case of involvement of other departments, as they are responsible for making the GSR.

• Price differences between the price set by the Purchasing Member and the actual price on the invoice.

• The Purchasing Member only verifies the price it concerns a new product (model) or if the product has not been requested for more than a month.

• Issue of a new GSR for the same goods when the initial GSR form is still in the purchasing cycle.

• Issue of a Request for Service in case of prior inventory knowledge to skip the inventory part to speed up the process.

• Request for Quotation (RFQ) may take a long time, depends on the suppliers.

• The GSR or SR is also issued after the product is already bought.

- 37 - PROCESS NAME: Stage 1 (Request for MRO materials ) PROCESS DATE: June 4, 2005

PURPOSE: Select production spare part

PROCESS OWNER(S): Plant Engineer, Plant Manager, Technical Chief, Purchasing Member, Suppliers NORMAL FLOW OF EVENTS

1. The Plant Engineer is triggered by a need for a spare part in case of malfunction or maintenance replacements.

2. The Plant Engineer select a material based on information provided by the Technical Chief. The Engineer may also contact the Purchasing Member.

3. The Plant Engineer must enter the specific model and type of the requested spare part or machinery.

4. The Plant Engineer creates a Goods Supplies Request.

5. In case of a tangible good, the Plant Engineer sends the GSR to the Warehouse Manager who checks the shared list of inventory item codes and fills in the item inventory code.

6. In case the item has not an inventory code, a new code will be added to the list.

7. The Plant Engineer sends the GSR form to the Plant Manager.

8. The Plant Manager determines the need of the material.

9. After approval the Plant Manager signs the GSR and sends the form to a Purchasing Member.

10. The Purchasing Member determines the price of the goods (see process name: determine price) requested by acquiring data from the purchasing administration, the supplier excel sheet (updated monthly) or directly from suppliers.

11. The Purchasing Member adds the price and signs for adding the prices to the form.

12. If necessary the Purchasing Member updates the prices held in the purchasing administration or the shared supplier price list.

13. The GSR will be send for approval to the Technical Chief to make sure the requested model is right.

14. The Technical Chief will forward the GSR to the Budget Owner of the Plant.

EXCEPTIONAL PROCESS FLOWS:

1. The Plant Manager reject the request.

2. The Technical Chief rejects the priced materials.

3. In case of some specialized services the next flow of events will occur:

• The plant engineer decides which service should be delivered and by whom

• Then the request will be signed by the plant manager (no pricing)

• After the service has been delivered, the SR with a timesheet will be send to Purchasing for further processing.

PROCESS IN/OUT: Priced GSR

SYSTEMS INVOLVED: Purchasing Administration, Supplier list, Inventory item codes list PROBLEMS IDENTIFIED

• Price differences between the price set by the Purchasing Member and the actual price on the invoice.

• The Plant is directly communicating with the supplier. This is not allowed according to the purchasing policies.

• Sometimes errors occur when selecting the right model for the requested spare part.

• Many fax activities are involved to speed up the requisition / ordering process. The Purchasing Member normally receives the original GSR after the order has been placed.

• Difficult administration with multiple copies of GSR's.

PROCESS NAME: Determine Price of goods & services PROCESS DATE: June 4, 2005

PURPOSE: Determine the best price for a good or service PROCESS OWNER(S): Purchasing Member

NORMAL FLOW OF EVENTS

The procedures for pricing depends on the requested good or service. E.g. office supplies are non-strategic and requires less effort than strategic goods and services. In general the steps below are followed:

1. Select suitable suppliers for quotation.

2. Request three different suppliers for quotation

3. In case of general ORM and MRO goods the Purchasing Member receives the offers and chooses the best price and returns the GSR to the requestor

4. In case of specialized MRO goods, the supplier offers will be provided to the Technical Chief 5. The Technical Chief will determine the supplier

6. The Purchasing Member will price the GSR.

EXCEPTIONAL PROCESS FLOWS:

DATA IN/OUT: Request for pricing / priced GSR

SYSTEMS INVOLVED: Supplier list, Purchasing Administration PROBLEMS IDENTIFIED:

• Time it takes to price goods and services depends also on suppliers (external: out of control)

• Lack of an structured supplier and product list, results in many (unnecessary) communications in the purchasing department

• Between 11.00 am and 04.00 pm are in general the hours of supplier communications.

- 39 - PROCESS NAME: Stage 2 (Budget Approval)

PROCESS DATE: June 4, 2005 PURPOSE: Obtain budget approval

PROCESS OWNER(S): Budget Tracker, Budget Owner, Requestor NORMAL FLOW OF EVENTS

1. Upon receiving the (G)SR, the Budget Owner determines by looking at his budget excel sheet (if used) if the Requestor is allowed to request for the product.

2. After approval, the Budget Owner updates his budget excel sheet (if used) and signs the (G)SR.

3. Afterwards the Budget Owner sends the (G)SR to the Budget Tracker.

4. The Budget Tracker checks the (G)SR if it is complete and if there is a budget available by requesting information from the master budget sheet and data in the Oracle system.

5. Then the Budget Tracker manually enters the (G)SR into the Oracle requisition database. This way the Budget Tracker creates an electronic Purchase Requisition (e-PR). The Budget sequence number is copied to the (G)SR.

6. The Budget Tracker signs the manual (G)SR and files the yellow copy of the (G)SR to the Budget Tracker Administration.

7. The Budget Tracker returns the (G)SR back to the Requestor.

8. The Requestor files the blue copy of the (G)SR form to the Requestor's administration.

9. In case of a request for tangible products, the Requestor sends the original GSR form to the Warehouse Clerk.

In case of a request for a service, the SR will be send to the Purchasing Manager.

EXCEPTIONAL PROCESS FLOWS:

1. Budget Owner reject the (G)SR. This may be the case when there is no budget available. The GSR will be returned to the Requestor.

2. Budget Tracker refuses the GSR, this may be the case when there is no budget or when there is no inventory code or when exceptional approval is required.

• In case of the latter, the GSR will be send to the Warehouse Manager for adding the inventory code.

• In case of no budget the Budget Tracker returns the GSR to the Budget Owner.

a. The Budget Owner must either change the GSR.

b. Or the Budget Owner applies for a transfer of accounts.

• Exceptional approval from the CFO is necessary at the end of the year when no transfer of accounts are allowed (on average 4-5 times a year).

DATA IN/OUT: Priced GSR / Original GSR (without prices)

SYSTEMS INVOLVED: Oracle requisition database, Budget sheet, Requestor administration, Master budget sheet, Budget Tracker Administration

PROBLEMS IDENTIFIED

• Approval managers are not always aware of the exact consequences of the buying requests. Three departments have a financial controller within the department (SPF, Finance and Sales).

• Sometimes the Budget Tracker recommends a specific supplier by adding a note to the GSR.

• A new approval hierarchy has been proposed. This may influence the approvals in the GSR cycle.

PROCESS NAME: Stage 3 (Purchase Material Request) PROCESS DATE: June 4, 2005

PURPOSE: Check inventory and create a purchase request

PROCESS OWNER(S): Warehouse Keeper, Warehouse Clerk, Warehouse Manager, Warehouse Director NORMAL FLOW OF EVENTS

1. The Warehouse Keeper (local) receives the original GSR (without prices) from the Requestor.

2. The Warehouse Keeper checks the inventory for item availability.

3. If it concerns a new inventory item, the Warehouse Keeper creates an request for cardex form and sends it to the Warehouse Manager (central).

4. If it concerns an existing item, but the items are available in stock, the Warehouse Keeper signs the GSR and creates a Delivery Note.

5. If one of the items are unavailable the Warehouse Keeper signs the GSR and forwards it to the Warehouse Clerk.

6. The Warehouse Clerk (who receives all GSR from all companies) creates a Warehouse Purchase Request (WPR) and attaches the WPR to the GSR. The GSR sequence number will be written on the WPR.

7. The WPR and the GSR will be forwarded to the Warehouse System Posting Member.

8. This Member checks the item code, based on the item inventory list in excel and signs for approval. Then the WPR and GSR will be forwarded to the Warehouse Manager.

9. The Warehouse Manager checks if the item is available at one of the other Warehouses.

10. If the item is not available the Warehouse Manager signs the WPR and stamps the GSR for approval.

11. The Warehouse Manager makes a copy of the GSR and stores the original GSR into the Warehouse Administration.

12. Then the Warehouse Clerk will take the WPR and the copy GSR to the Warehouse Director.

13. The Warehouse Director reviews and signs the WPR.

14. The WPR and copy GSR will be forwarded to the Purchasing Clerk by the Warehouse Clerk.

EXCEPTIONAL PROCESS FLOWS:

1. The item is available in the Warehouse.

• The Warehouse Manager signs the GSR.

• The products will be delivered and a Delivery Note will be created.

2. The item may be available in one of the other Warehouses.

• The products will be transferred to the Requestor and a Delivery Note will be created.

3. The Warehouse Clerk receives all GSR’s from all departments after local Warehouses checked their inventories for availability.

DATA IN/OUT: Original GSR / WPR & copy GSR

SYSTEMS INVOLVED: Warehouse Administration, Item inventory code list (excel) PROBLEMS IDENTIFIED:

• The Warehouse has one Administration, where all dossiers will be kept. They are making saving all copies

to avoid trouble when departments call for asking about their purchase requests.

- 41 - PROCESS NAME: Stage 4 (Transform material request to PO) PROCESS DATE: June 4, 2005

PURPOSE: Transform Warehouse Purchase Request to Purchase Order

PROCESS OWNER(S): Purchasing Member, Purchasing Director, Purchasing Clerk, Warehouse Clerk NORMAL FLOW OF EVENTS

1. The Purchasing Clerk stamps the WPR for receipt (date and time)

2. The Clerk makes a copy of the WPR. This copy will be stored in the Warehouse Administration. Daily the Clerk enters the number of GSR’s and WPR’s into an excel sheet.

3. Then the Purchasing Clerk forwards the Original GSR and the copy GSR attached to the Purchasing Director.

4. The Purchasing Director receives the e-PR automatically when the Budget Tracker has completed his task of creating an electronic Purchase requisition.

5. The Purchasing Director checks the e-PR and delegates it to a Purchasing Member.

6. The Purchasing Director also receives the WPR and the copy GSR from the Purchasing Clerk in case of requested goods.

7. The Purchasing Director signs for approval and delegates the WPR to a particular Purchasing Member.

8. The Purchasing Member receives the Warehouse Purchasing Request (WPR) and the copy of the GSR (attached) from the Purchasing Director.

9. In case of a request for a service, the Purchasing Members receives the RS directly from the Requestor.

10. The Purchasing Member waits until the electronic Purchase Requisition (e-PR) has been received to match the WPR / SR.

11. If the WPR / SR and e-PR match, the Purchasing Member transforms the requisition into a Purchase Order (PO). The WPR number will be written down on the PO.

12. Creating a Purchase Order involves the selection of the Supplier and an agreement on the payment terms (proforma invoice). Afterwards a manual and an electronic PO are created.

13. The WPR & copy GSR or the SR will be stored into the administration until the goods or services have been delivered. Then the whole package will be forwarded to the auditing department.

EXCEPTIONAL PROCESS FLOWS:

1. The Purchasing Director rejects the Warehouse Purchase Request or the electronic Purchase Requisition.

• Then the GSR will be returned to the Requestor

2. There is no match between the e-PR and the WPR (until now this has not yet happened)

DATA IN/OUT: WPR, copy GSR & e-PR or SR / PO

SYSTEMS INVOLVED: Purchasing Administration, Oracle PR database.

PROBLEMS IDENTIFIED:

• GSR’s after 03.00 PM. are refused by the Purchasing Clerk. GSR’s submitted to the purchasing department

on Thursday are dated on Thursday, but processed on Sunday. This already indicates a ‘delay’ of two days.

- 42 -

p end ix N Resou rce S ta ti st ics cu rren t r eq u isit ion p roc ess R eso ur ce S tat ist ics - Ho u rs Wa re ho us e C le rk 0. 3% Sup p lie r 54. 6%

Re qu es to r 1.2 %

P u rc h as ing Mem b er 20 .7 %

Pu rc ha sin g D ire ct or 0. 2%

Di rect Ma na g er 0. 3% P u rch as ing C lerk 4. 2%

Bud g et Tr ack er 8. 6%

Bu dget Own er 0. 2 %

W are h ous e Sy st em Po stin g 0. 2 % W are ho use D ir ec to r 0.2 %

W ar eho u se K eep er 0.3 %

Wa re h ous e Ma na g er 8. 9 %

- 43 -

Appe n d ix O Re gi ste re d Or a cle p u r chas e or de r s

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F ebr uar y Mar c h Ap ri l Ma y

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400 500

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R e g ist er ed Pu rc h a s e O rd er s t h ro u g h O ra c le 2 005 Feb ru a ry Ma rc h Ap ri l Ma y Fe b ru a ry 70 18 0 3 0 17 6 1 2 0 Ma rc h 78 12 1 0 0 6 12 20 8 0 Ap ri l 86 84 0 1 7 27 3 51 2 0 Ma y 11 1 56 0 1 2 30 2 45 9 0

Gi za Obo u r G ian ac lis 6th O c tob. Sh a rq ia Al Ah ra m N ile Rea ch UDG

- 44 -

n d ix P Re gi ste re d Or a cle re quis it ions N u m b er o f r e g ister ed O ra c le re qu isit ion s 20 05 0

50 100

150

200

250

300 Ap ri l Ma y Ap ri l 100 1 4 7 1 0 2 5 1 5 1 Ma y 246 5 3 9 4 9 3 6 1 10 13

Gi za Obou r R T D H O 6t h Oc tob. A B C S H K A MC S H K G V B A L X N BC BDR U D G