TU - GT - BP 62.01 Manage Quality in Procurement v1.4

Thai Union Group
Business Blueprint
62.01 - Manage Quality in Procurement
Table of Contents
1 Document History................................................................................................................................3
1.1 Change History.............................................................................................................................3
1.2 Approval Detail............................................................................................................................3
1.3 Other Related Documents...........................................................................................................3
2 Business Process Overview..................................................................................................................4
2.1 High level requirements...............................................................................................................4
3 Business Sub-Process Description........................................................................................................5
3.1 Incoming Inspection Process.......................................................................................................7
Use.......................................................................................................................................................7
Integration...........................................................................................................................................8
Process/Sub process Variation............................................................................................................8
Process/Sub Process diagram..............................................................................................................9
Activity List........................................................................................................................................13
Master Data.......................................................................................................................................19
RICEFW..............................................................................................................................................19
Role Summary....................................................................................................................................20
Last modified: 8/9/2024 3:12 PM Page 2 of 23

File Name: 779827482.docx
Copyright © 2017 Accenture All rights reserved.
1 Document History
1.1 Change History

Ver. Date Summary of Changes Author Reviewer
0.1 November Initial document Siwaporn C.
14,2016
0.6 December Describes overview, high level Thitarat H.
requirement and sub-process
8,2016
0.7 April 25,2017 Add sample Tag, Vendor batch Soraya B.
existing
1.30.8 May Correction after feedback Soraya B.AÂngelo R.
02,2017May
04, 2017
1.4 May 04, 2017 Correct word to “critical MIC off- Soraya B.
spec”
1.2 Approval Detail

Review # Date Name & Position of Approver Signature
1.3 Other Related Documents

Please insert links/References to related Documents (issues, data entities, etc.).>
Related Document Comment

2 Business Process Overview
Quality Management (QM) could apply to almost any procedure involving the quality control of
fish or fish products including other raw materials, ingredients and packaging. The objective of Quality
Management is to improvement of profitability by minimizing customer complaints about quality, and
hence to avoid the resulting lost business.
In the case of fish and fishery products, quality control includes all the steps taken to protect the quality
of the material since catch till it reaches the customer.
Quality Inspection may be defined as the composite of those characteristics that differentiate individual
units of a product and have significance in determining the degree of acceptability of that unit by the
buyer. In considering the quality of fish and fishery products, significance is attached to physical,
biochemical, organoleptic and bacterial characteristics.
This document will be describe quality management in procurement.
2.1 High level requirements

The processes of Manage Quality in procurement is relevant to incoming goods receipt
inspection. Base on Thai Union business, all materials which are related to production such as
ingredients, packaging and raw materials such as fish, garlic, can, lid etc. must be inspected.
The complexity of QM depends on the kind of products it is handling. However a product specification
is primarily the responsibility of the customer. Where there is no specific customer, it is useful to define
the product. Once the product specification is available, the supplier can set up the processing line and
arrange supplies of raw material.
For Thai Union, QM in procurement component can use function as the following:-
 Request that quality certificates be submitted with the delivered goods and monitor the receipt
of these certificates
 Inspect vendor goods upon receipt (goods receipt inspections)
 Manage the posted goods in inspection stock
 Block the payment of invoices until the goods have been inspected and accepted
And there are 6 processes as below:-

 Manage Quality in Procurement
 Manage Quality in Production
 Manage Quality in Delivery (for customer return)
 Manage Recurring Inspection
 Manage General Request Inspection
 Quality Assurance

3 Business Sub-Process Description

In a quality inspection, the inspection specifications are predefined in the inspection
planning component. Although the inspection results only document the current quality of a material,
this information is also useful for quality control.
Quality Inspection steps can be applied as

 Inspection lot creation
 Inspection results recording
 Defects recording
 Inspection lot completion
Inspection Type for Thai union designed which related to QM in procurement as the following:-
Inspection Type Inspection Description
Z010 Goods Receipt from Purchase Order
Z011 Goods Receipt from Purchase Order % Score
1701 Goods Receipt from Purchase Order
*inspection type which is started with 17 for external SAP system interfacing
QM Control key for Thai union:-

QM Control key Inspection Description Design Deviation Note
ZC01 Vendor certificate required no Block inv Thailand
ZC02 Vendor certificate required Block inv Thailand
ZC03 Vendor Cer. required no Block inv & Q-info ESIP
ZC04 Vendor Cer. required Block inv & Q-info ESIP
Certificate Type for Thai Union:-

Certificate Type
Inspection Description
Inspection Type
ZC00 Certificate from vendor
Inspection Plan Structure for Thai Union:-
XX NNNNNN
Running no.
Inspection Process
Character Description
X IN – Incoming
X WI – In-process
PD – Production
DL – Delivery
RT – Return
RC – Recurring
OT - Others

Inspection Plan Structure for Thai Union:-
XX Y RRR
Running no.
Sub material type
Material type
After inspect and input inspection result ready, QC operator need to make usage decision for the
inspection lot. The usage decision specifies whether the inspected goods are accepted or rejected for
use.
Usage decision type for Thai Union as below:-
UD for good receiving from vendor
UD Code Description
A01 Accept
A02 Accept auto UR
A03 Accept with condition
R01 Reject
UD for good receiving from vendor by percentage
UD Code Description
A Accept 91-100%
A10 Accept 1-10%
A20 Accept 11-20%
A30 Accept 21-30%
A40 Accept 31-40%
A50 Accept 41-50%
A60 Accept 51-60%
A70 Accept 61-70%
A80 Accept 71-80%
A90 Accept 81-90%
A100 Automatic UD Accept 91-100%
R01 Reject

3.1 Incoming Inspection Process
Use
The incoming inspection process is a verification check if the product arrived in correct
specification before accept them into stock.
An inspection lot has to be created for a quality inspection to take place. The inspection type is
the parameter to control the inspection lot created. If the specific inspection type of goods receipt
reference purchase order is active in the raw materials, ingredients or packaging in material master,
then the inspection lot will be automatic generated when goods receipt reference purchase order is
posted.
For Thai Union, the Incoming Inspection activities are the process for Quality and Control to
inspect the raw material, ingredient and packaging. There are 3 scenarios of incoming inspection.
1. Local materials
 The fish from local supplier, Lab test result will be worked in parallel with unloading process
and goods receipt later lab operation. The process can be run by enhancement to match
between inspection result from lab and inspection lot will be generated automatically when
warehouse staff post goods receipt. Then QC can inspect, update inspection result and
decide to release stock or defect.
 The local raw material sometimes such as fish or seafood, this kind of material cannot plan to
create purchase order at the beginning. And PO will be created automatically when
warehouse staff post goods receipt. And inspection lot will be generated accordingly, QC can
inspect, update inspection result and decision to release stock or defect.
 Normal procedure, purchase order is created by purchasing staff, when warehouse staff post
goods receipt and Inspection lot is created. Then QC can inspect, update inspection result
and decide to release stock or defect.
2. Import materials
 This case is always starting from purchase order and then goods receipt plan of import
material will be informed from supplier. Then warehouse can perform receipt reference PO at
the time of material arrival. The inspection lot will be created after goods receipt in the
system. QC can enter inspection result reference the inspection lot as a normal.
3. Customer materials.
 Raw materials which are provided by customer and the warehouse will perform goods receipt
without reference purchase order in the stock. The inspection lot will be created automatically
and perform inspection and record result reference inspection lot as usual.
Integration
<None>
Process/Sub process Variation

- The following process variations exist for TUE:
 TUE will always perform the unloading of stock, inspection the Material and then Return the
Material, if applicable <None>

 All Primary Packaging Materials will be tested. Secondary Packaging Materials might have
some form of inspection, while Tertiary Packaging will not be inspected
 At 3PL locations, Incoming Inspections will not update the Batch's Characteristics
 Verification at Goods Receipt step if the corresponding Vendor Batch has been receipted
before
 For both the Factory Plant and the 3PL plant, Incoming Inspections will not be
created if booked against an already existing / tested Thai Union Batch.

Process/Sub Process diagram

Activity List
Activity definition document if applicable for the project & also has references in the process/sub
process diagram
Step Activity Description Transaction Code, Roles Regulatory

if relevant involved /Other
Controls
010 Receive daily goods receipt plan from Vendor. Warehouse

staff
020 Receive unloading plan from RM Purchasing Warehouse

staff
030 Receive delivery plan from customer Warehouse

staff
040 Shipment arrival Warehouse

staff
050 Identify source of delivery material (Local, Warehouse

import or customer material) staff
- If import material, go to step 390

- If customer material, go to step 560
- If local material, go to step 060
Case 1: Quality Inspection of Local Materials
060 Verify all related document and COA Warehouse

staff
070 Unloading preparation Warehouse

staff
080 Sampling for quality check QC

Receiving
090 Physical inspection QC

Receiving
100 Is chemical or microbiological inspection QC

required? Receiving
- If require, go to step 270

- If not require, go to step 110
110 Summarize of physical inspection result QC

Receiving
120 Is test result Pass or Fail? QC

- If Pass, go to step 140 Receiving
- If Fail, go to step 130

Controls
130 If test result is failed, inform vendor of goods QC

reject receipt Receiving
140 If test result is pass, perform unloading Warehouse

(Weighting or Sizing may require for some staff
product)
150 Is PO already created? Warehouse
staff
- If Yes, go to next process goods receipt
with PO and process goods receipt free of
charge item. After those 2 process are
finished, go to step 170
- If PO not yet create, go to step 160
160 Decision to create PO automatic when goods Warehouse

receipt? staff
- If No, because of warehouse does not finish

sizing/weight, only create PO is possible.
Go to process Create and Process
Purchase Order. Then go to step 260
- If Yes, go to process Receipts with
automatic PO creation. Then go to step 170
161 Check existing vendor batch. QM-13 Warehouse

staff
162 Inspection lot creatione (the inspection lot will QM-13 Warehouse ESIP
be created automatically after perform goods staff
receipt)
17017 Inspection monitoring Inspection monitoring (the QA32, QM-03QA32 QC

0 inspection lot will be created automatically after ReceivingQ
perform goods receipt) C Receiving
180 Record quality result reference inspection lot. QA32 QC

Receiving
190 Is material out of spec is found? QC

Receiving
- If Yes, go to step 200
- If No, go to step 210
200 Created defect for inspection lot. The system QA32 QC

will generate nonconformance notification Receiving
automatically

Controls
210 Decision is certificate is required? QC

Receiving
- If required, go to step 220
- If not required, go to step 350
220 Perform check certificate completion QC

Receiving
230 Is certificate completed? QC

Receiving
- If completed, go to step 250
- If in completed, go to step 240
240 Follow up certificate with Purchasing QC

Receiving
250 Perform update status certificate receipt QA32 QC

confirmed. After this step, go to step 350 to Receiving
summarize result and usage decision
260 Generate TAG for Lab Chemical test (for PO ZTHQM00015 QC
ITEM). After test is done, go to step 330 to Receiving
record result.
270 From step 100, after the sampling has been QC Lab
sent to lab by QC receiving.
This step, the QC Lab will decision whether the

testing is requiring external lab or not?
If required, go to process Manage Purchase

Requisitions
If not required, go to continue step 280
280 Perform Lab test such as chemical and QC Lab

microbiological etc.
290 Monitor and receive test result from external lab QC Lab
300 After all testing is done, perform inspection lot QA32 QC Lab
monitoring
310 Is inspection lot available? QC Lab
If Yes, go to continue step 320
If No, the inspection lot is not available. Go to
step 330 and 340.
320 Perform record result Reference Inspection lot QA32 QC Lab
330 Perform record result Reference PO item. ZTHQM00015 QC Lab

Controls
340 Mapping result for PO item with Inspection lot/ ZTHQM00015 QC

- This step is required if the result has been Receiving
recorded for PO item.
- This step can perform only when GR has
done and inspection lot is generated.
350 Summarize result and Usage Decision QA32 QC
Receiving
360 Is decision accepted or rejected? QC

If Accept, go to step 370 Receiving
If Reject, go to step 380
370 If Usage Decision with Accept, stock will QA32 QC
transfer from QI to UR (automatically) Receiving
Stock should be move to the warehouse; the Warehouse

process will be conducted by process Stock staff
transfers storage location within Plants
380 If Usage Decision with Reject, stock will transfer QA32 QC
from QI to Blocked (automatically) Receiving
Continue to nonconformance process and make QC

a final decision in process Quality Notification Receiving
process (NCP)
Case 2: Quality Inspection of Import Materials
390 From step no. 050. Warehouse

Verify certificate COA or related document (for staff
imported material)
400 Perform Unloading Warehouse
(Weighting and Sizing may require for some staff
product)
After Unloading is done, perform goods receipt. Warehouse
Go to process; staff
- Goods Receipt with Purchase Order.
- Goods Receipt Free of Charge Item (if
required).
410 Prepare sampling for Quality check QC
Receiving
420 Perform physical inspection QC

Receiving

Controls
430 Is Lab test required? QC

Receiving
440 Does the test require external lab? QC Lab

Requisitions
450 Perform Lab test such as chemical, QC Lab

microbiological and etc..
470 Perform record lab test result reference QA32 QC Lab

inspection lot
480 Is material out of spec is found? QC
Receiving

automatically
500 Perform inspection lot monitoring, to check QA32 QC

result from both side of QC receiving and QC Receiving
Lab
510 Is material out of spec? QC

Receiving
520 Created defect for inspection lot. QA32 QC

Receiving
The system will generate nonconformance
notification automatically.
530 Summarize test result from both side of QC QA32 QC

receiving and QC Lab Receiving


Controls

570 Inform Purchasing to contact the vendor QC

Receiving
Continue to nonconformance process and make QC

a final decision in process Quality Notification Receiving
process (NCP)
Case 3: Quality Inspection for Customer Materials
580 From step no. 050. Warehouse

Verify certificate COA or related document (for staff
imported material)
590 Perform Unloading Warehouse
(Weighting and Sizing may require for some staff
product)
After Unloading is done. Go to process Goods Warehouse
Receipt without Purchase Order. staff
600 Prepare sampling for Quality check QC

Receiving
610 Perform physical inspection QC

Receiving
620 Is Lab test required? QC

Receiving
630 Does the test require external lab? QC Lab

Requisitions
640 Perform Labe test such as chemical, QC Lab

microbiological and etc..
660 Perform record lab test result reference QA32 QC Lab

inspection lot
670 Is material out of spec? QC
Receiving

Controls
680 Created defect for inspection lot. QA32 QC

Receiving
The system will generate nonconformance
notification automatically.
690 Perform inspection lot monitoring, to check QA32 QC

result from both side of QC receiving and QC Receiving
Lab
700 Is quality out of specification? QC

Receiving

automatically
720 Summarize result both of QC receiving and QC QA32 QC

Lab Receiving


760 Inform customer of nonconforming material. QC

Continue to nonconformance process and make Receiving
a final decision with customer in process Quality
Notification process (NCP)
Master Data
Key master data required in this sub process
 Material Master
 Master Inspection Characteristic
 Inspection plan
 Sampling procedure
 Catalogs profile and code group
RICEFW
R-Report; I-Interface; C-Conversion; E-Enhancement; F-Form; W-Workflow

RICEFW Standard/ Transaction
No. Report Description Type Customize Code, if Comments
d relevant
Enter receiving result

100 E Customized ZTHQM00015
for PO item
Generate inspection
110 TAG for Lab Chemical E Customized ZTHQM00015
/ Microbiological test
130 Record quality result
(ref. PO item) E Customized ZTHQM00015
160 Mapping result for PO

item with Inspection E Customized ZTHQM00015
lot number
170 Check existing
Vendor Batch
to decide on
E Customized QM-13
Inspection Lot
creationDecision
inspection lot create
161 Sample Tag
F Customized QM-03
Role Summary
The content in this section will serve as input for the authorization and training.
Role SAP Transaction Description
QC Receiving QA32 Inspection change (monitoring)

QC Receiving QF11 Create defect recording
QC Receiving QA02 Change inspection Lot
QC Receiving ZTHQM00015 - Generate inspection TAG for
Lab Chemical / Micro. Test
- Mapping result for PO item
with Inspection lot number
QC LAB ZTHQM00015 - Record quality result (ref. PO
item)
- Mapping result for PO item
with Inspection lot number
QC LAB QM01 Create nonconformance (defect)
notification

Role SAP Transaction Description
QC Receiving QM01 Generate nonconformance

(defect) notification
QC Receiving QM-03 Print sample tag


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Thai Union Group

Last modified: 8/9/2024 3:12 PM Page 2 of 23

1.1 Change History

1.2 Approval Detail

1.3 Other Related Documents

Related Document Comment

Last modified: 8/9/2024 3:12 PM Page 3 of 23

This document will be describe quality management in procurement.

2.1 High level requirements

And there are 6 processes as below:-

Last modified: 8/9/2024 3:12 PM Page 4 of 23

Last modified: 8/9/2024 3:12 PM Page 5 of 23

Quality Inspection steps can be applied as

QM Control key for Thai union:-

Certificate Type for Thai Union:-

Inspection Plan Structure for Thai Union:-

Last modified: 8/9/2024 3:12 PM Page 6 of 23

Usage decision type for Thai Union as below:-

UD for good receiving from vendor

UD for good receiving from vendor by percentage

A10 Accept 1-10%

A20 Accept 11-20%

A30 Accept 21-30%

A40 Accept 31-40%

A50 Accept 41-50%

A60 Accept 51-60%

A70 Accept 61-70%

A80 Accept 71-80%

A90 Accept 81-90%

A100 Automatic UD Accept 91-100%

Last modified: 8/9/2024 3:12 PM Page 7 of 23

Process/Sub process Variation

Last modified: 8/9/2024 3:12 PM Page 8 of 23

Process/Sub Process diagram

Last modified: 8/9/2024 3:12 PM Page 9 of 23

Step Activity Description Transaction Code, Roles Regulatory

010 Receive daily goods receipt plan from Vendor. Warehouse

020 Receive unloading plan from RM Purchasing Warehouse

030 Receive delivery plan from customer Warehouse

040 Shipment arrival Warehouse

050 Identify source of delivery material (Local, Warehouse

- If import material, go to step 390

Case 1: Quality Inspection of Local Materials

060 Verify all related document and COA Warehouse

070 Unloading preparation Warehouse

080 Sampling for quality check QC

090 Physical inspection QC

100 Is chemical or microbiological inspection QC

- If require, go to step 270

110 Summarize of physical inspection result QC

120 Is test result Pass or Fail? QC

Last modified: 8/9/2024 3:12 PM Page 15 of 23

130 If test result is failed, inform vendor of goods QC

140 If test result is pass, perform unloading Warehouse

160 Decision to create PO automatic when goods Warehouse

- If No, because of warehouse does not finish

161 Check existing vendor batch. QM-13 Warehouse

17017 Inspection monitoring Inspection monitoring (the QA32, QM-03QA32 QC

180 Record quality result reference inspection lot. QA32 QC