Reduce the timeline to convert PR to PO

[shrithar_shelvaraj2]

Need an option on improvement on to reduce average time for PR to PO creation process.

1. Systematically how to make it fast action?

2.How to steam line the business process?

3.is there any report shows the PR to PO process time line.

Thanks

[DominikTylczyn]

Hello shrithar.shelvaraj2

To monitor and possibly reduce the PR->PO conversion time you should watch out for MRP exceptions 03 "New and start date in the past" and 06 "Start data in the past". They are in MRP exceptions group 2 so you can easily find them in MD07 transaction.

The exceptions are risen when purchase requisition release date is in the past. The release date is when PReq should be converted to PO. It's calculated based on requested delivery date; from MRP subtracts planned delivery time (in calendar days) and purchasing processing time (in work days based on the factory calendar).

Purchasing processing time is defined on plant level in configuration path: Materials Management -> Purchasing -> Purchase Requisition -> Processing Time. That is the time that a buyer needs to convert a purchase requisition into a purchase order.

Now, if you want to improve your business process and speed up PReqs processing, first you should set the processing time to a reasonable value and monitor 03 and 06 MRP exceptions. Once they are gone i.e. buyers work efficiently enough, you can challenge them and reduce the processing time.

The settings and logic are straightforward from the system perspective. However this business process improvement exercise has to aligned with the buyers, they need to know how their work is measured and what are the benchmarks. Also you'd need to offer incentives for the buyers to get their buy-in.

Best regards

Dominik Tylczynski

[DominikTylczyn]

Alternatively you can use ME5A report to monitor purchase requisitions with release date in the past.

[shrithar_shelvaraj2]

1.Above answer is for systematically i can do.

2. In terms of business process, how can i imporve?

3.Is there any report shows the PR to PO creation time line?

[pataselano]

For reduce average time of PR to PO creation process, you can use tcode ME59N by background job.

Before you can create PO using ME59N, please make sure that:

• Purchasing info record have price
• 'Quota arrangement usage' and 'automatic PO' activated in material master view purchasing
• 'Automatic PO' activated in vendor master view purchasing data
• Quota arrangement activate as basic for vendor determination decision by MRP at PR creation
• Source list as basic for purchasing organization determination decision by MRP at PR creation

[BijayKumarBarik]

Are your automatic PO created from PR with batch job?

If yes, check frequency of batch job run everyday/weekly etc.....

If business needed - you can run auto batch job every 5min for day for PR to PO creation process.