1. CRYSTAL GROUP L220000: Material Movement (FOB) CEN Training Production Planning

2. CRYSTAL GROUP Course Content Material Movement General Material Movement Concept FOB materials delivery Normal Transfer (via HK warehouse) Direct Issue (from Vendor) Semi-Finished Goods Movement in OPA

3. CRYSTAL GROUP Course Content Material Movement General Material Movement Concept FOB materials delivery Normal Transfer (via HK warehouse) Direct Issue (from Vendor) Semi-Finished Goods Movement in OPA

4. CRYSTAL GROUP General Material Movement Concept  In CEN design, we use Storage location to define the condition and geographic location of the Stock, so that there will be following situation in the material delivery: Material Movement within Warehouse in same Plant  Storage Location to Storage Location (One Step Transfer)  Possible in Crystal HK or Factory Plants Material Movement to Different Plant for FOB / FOC materials  Involve Inter-com Purchase – Sales (CCSTO / Sales Order)  Goods Issue from Crystal HK Plant and Receive in Factory Plant

5. CRYSTAL GROUP Course Content Material Movement General Material Movement Concept FOB materials delivery Normal Transfer (via HK warehouse) Direct Issue (from Vendor) Semi-Finished Goods Movement in OPA

6. CRYSTAL GROUP FOB Materials Delivery FOB Case  Crystal HK sell Fabric/Yarn/Sub materials to own factory  Crystal HK send sub materials to own factory with free of charge

7. CRYSTAL GROUP Crystal HK sell Fabric/Yarn/Sub materials to factory Factory Crystal HK MC Create/group Shipment Stock Transport Order 4500000012 Goods Receipt Stock Transport Order 4500000012 Fabric / Sub materials Fabric / Sub materials - Price Mark up on Stock Transport Order - Crystal HK will be the owner of Fabric / Sub materials until Factory goods receipt Warehouse Post Good Issue In case of normal transfer

8. CRYSTAL GROUP Crystal HK sell Fabric/Yarn/Sub materials to factory Factory Crystal HK MC Create/group Shipment Stock Transport Order 4500000012 Goods Receipt Stock Transport Order 4500000012 Fabric / Sub materials Fabric / Sub materials - Price Mark up on Stock Transport Order - Crystal HK will be the owner of Fabric / Sub materials until Factory goods receipt Post Good Issue In case of direct issue

9. CRYSTAL GROUP Crystal HK send sub materials to factory with free of charge FactoryCrystal HK Create/group Shipment Stock Transport Order 4500000013 Price = 0 Charge to SO Goods Receipt Stock Transport Order 4500000013 Price = 0 Sub materials

10. CRYSTAL GROUP Course Content Material Movement General Material Movement Concept FOB materials delivery Normal Transfer (via HK warehouse) Direct Issue (from Vendor) Semi-Finished Goods Movement in OPA

11. CRYSTAL GROUP Production Execution in Crystal – OPA Process Flow Frozen Pre-cost & PDM Sales order Processing/ Critical Path Supply Planning Delivery, shipping & Billing QUOTATION SO CONFIRMATION & PLANNING SUPPLY/ MATERIAL PLANNING PROCUREMENT/ PRODUCTION PLAN MANUFACTURINGDELIVERYCLAIMS Strategic Procurement Material Planning Quotation Sales Confirmation Color & Size confirmation Delivery & Packing intr. Inspection Results Production Production & Inventory Purchase Order for RM/quota Purchase/ Production Order for FG Purchase/ Production Instruction Claims Customer Complaints Contract PO Temp PO/ MR(PO) MO/ Purchase Order Vendor Request Purchase Order for RM/quota Accounts Payable & Receivable RESPONSE TO MARKET ORDER FULFILLMENT OPA Factory B OPA FACTOR Y A CUST- OMER VEND- OR Sample order Sample Delivery & Billing SAMPLE (During Production) FINANCE Purchase Order for RM/quota Two factories are in different countries

12. CRYSTAL GROUP Production Execution in Crystal – OPA Process Flow  Crystal HK decides to produce a finished goods in OPA Process  For two step OPA Process, semi-finished goods (SFG) – Panel will be created and is maintained in BOM  The SFG – Panel procurement will also be in a two step process as seen before for the Finished goods (FG) purchasing  Normally, SFG procurement is a subcontracted purchase FG PANELYARN 1SUB 1 YARN 1 SUB 2

13. CRYSTAL GROUP Color/Size confirmation and SFG and FG purchasing Receipt of color/size breakdown from customer Create FG production notification (contract order) Change Sales Order to update MR report Create SFG production notification (contract order)  The process of SFG purchase and production for OPA process (two steps) are the same as FG purchase and production in both FOB and CMT cases. However, the delivery and movement of the SFG are inside the scope of Two Steps OPA process.

14. CRYSTAL GROUP Production Execution in Crystal – OPA Process Flow OPA FTY AOPA FTY B StepOperation DetailsStepOperation Details For US Orders (two steps)1.1) FTY KNITTING PANEL SEND TO OPA FTY B CUTTING AND PART OF SEWING AND THEN SEND TO OPA FTY A1.2) LINKING, FINISHING, AND SHIPPING ASSEMBLY GARMENT, FINISHING AND SHIPPING For EU Orders (three steps) 2.2)ASSEMBLY GARMENT AND SEND BACK TO OPA FTY B FOR FINISHING 2.1) 2.3) CUTTING AND PART OF SEWING AND THEN SEND TO OPA FTY A RECEIVE THE GARMENT FM OPA FTY B FOR FINISHING AND TREATMENT

15. CRYSTAL GROUP Production Execution in Crystal – OPA Process Flow OPA FTY AOPA FTY B StepOperation DetailsStepOperation Details For US Orders (two steps)1.1) FTY KNITTING PANEL SEND TO OPA FTY B CUTTING AND PART OF SEWING AND THEN SEND TO OPA FTY A1.2) LINKING, FINISHING, AND SHIPPING ASSEMBLY GARMENT, FINISHING AND SHIPPING For EU Orders (three steps) 2.2)ASSEMBLY GARMENT AND SEND BACK TO OPA FTY B FOR FINISHING 2.1) 2.3) CUTTING AND PART OF SEWING AND THEN SEND TO OPA FTY A RECEIVE THE GARMENT FM OPA FTY B FOR FINISHING AND TREATMENT

16. CRYSTAL GROUP Crystal OPA Factory A OPA Factory B OPA Process Flow (two steps) – CMT case Production Notification (4600000012) Finished Goods in CMT Term Other Raw Materials Panel + Production Notification (4600000011) Knitting Panel in CMT Term Panel Raw Material Step 2 FG Purchasing & Production Execution in CMT case Step 1 FG Purchasing & Production Execution in CMT case

17. CRYSTAL GROUP Crystal HK send SFG to OPA factory B but the ownership of SFG is still in Crystal HK OPA Factory B Crystal HK OPA Factory A Logical Storage Location PO Storage Location OPA Factory B Vendor send materials to factory directly. When materials are on the way to factory, Crystal HK will receive the materials into logical storage location in AFS system Production Notification (4600000011) Panel Goods Receipt

18. CRYSTAL GROUP OPA Factory B Crystal HK send SFG to OPA factory B but the ownership of SFG is still in Crystal HK Crystal HK Vendor Logical Storage Location OPA Factory B Material Document When Crystal transfer materials to Factory, materials are transferred to In-transit area Production Notification ( 4600000011) Movement 313 OPA Factory A

19. CRYSTAL GROUP OPA Factory B Crystal HK send SFG to OPA factory B but the ownership of SFG is still in Crystal HK Crystal HK Vendor Logical Storage Location OPA Factory B Factory receive materials and will transfer the materials from logical storage location to factory storage location Movement 315 Remark : Physically, stock is received in factory warehouse but in system, stock is received in factory storage location under Crystal HK plant One steps transfer posting Production Notification ( 4600000011) OPA Factory A Panel

20. CRYSTAL GROUP Crystal OPA Factory A OPA Factory B OPA Process Flow (two steps) – FOB case Production Notification (4600000012) Finished Goods in FOB Term Production Notification (4600000011) Knitting Panel in CMT Term Raw Materials Panel Other Raw Materials Invoice $$$$ Panel + Step 2 FG Purchasing & Production Execution in FOB case Step 1 FG Purchasing & Production Execution in CMT case

21. CRYSTAL GROUP Crystal HK receive SFG from OPA factory A OPA Factory B Crystal HK OPA Factory A Crystal Storage Location PO Goods Receipt Production Notification (4600000011) Panel

22. CRYSTAL GROUP Crystal HK sell Panel to OPA factory B Factory Crystal HK PPC Create/group Shipment Stock Transport Order 4500000014 Goods Receipt Stock Transport Order 4500000014 Panel - Price Mark up on Stock Transport Order - Crystal HK will be the owner of Semi-Finished Goods until Factory goods receipt Post Good Issue

23. CRYSTAL GROUP Thank you for your attention Proceed to Step by Step Demonstration Session