raaj unocal standard operating procedures procurement
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Raaj Unocal Standard Operating ProceduresProcurement
Standard Operating ProceduresPage 2
Buying
Vendor Management
Ordering Procedures
Receipt of Material
Payment
1
2
3
4
5
Key Sub-Processes
Standard Operating ProceduresPage 3
Legend
Standard Operating ProceduresPage 4
Procurement Organogram
Standard Operating ProceduresPage 5
Buying Vendor Management Ordering Procedure Receipt of Material Payment
1. Process Flow: Procurement Planning
StartBasis expected sales order
for n+1 month , material requirement is calculated
Chief Executive Officer
Indent based planning is done . Refer to indenting
process for details
Production In-charge
Stop
Expected Sales Plan Average Lead Time Report
Procurement Plan
A
1
1 2
2
For key materials: Plan is created basis MDM norms
and current lead time.
Chief Executive Officer
Is the material a
direct material?
A
Yes
No
Current MDM Levels
3
3
Standard Operating ProceduresPage 6
Buying Vendor Management Ordering Procedure Receipt of Material Payment
1. Process Flow: Vendor development
List of materials for
vendor development
A
List of potential vendors
B
No
Start
Identifies materials for which vendor development
procedure needs to ne carried out .
Chief Executive Officer
Identifies vendors for the list of material from both
internal and external sources.
Purchase Officer
Receives a list of preliminary information such as price, specs,
quality etc
Production In-charge
Quality audit for vendor is performed . Report is sent
to GM commercial
Post approval, submits list of potential vendor to CEO.
Indent for new material Procurement Plan
A
1
2
Is it a packing
material or raw
materials ?
Approves Stop
B
Yes
21
Standard Operating ProceduresPage 7
1. Process Flow: Vendor Code Creation
Vendor creation form
A
No
Start
Fills in vendor code creation form for creation of
new vendor code and sends to CEO for approval.
Materials Manager
Post approval send it to Finance Executive for code
creation
Production In-charge
Resends request to the purchase officer with details
of missing information
Finance Executive
Creates vendor code in tally
Finance Executive
Vendor Code Creation Form
A
1
2
Reviews adequacy of
form ?
Reviews to ensure
there is no existing codes
StopYes
1
Approves ?
No
Yes
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Standard Operating ProceduresPage 8
1. Process Flow: Vendor Evaluation
Vendor evaluation
A
No
StartBasis input reports
Materials Manager creates vendor evaluation form.
Materials Manager
Adds quality score and sends the same to CEO
Quality Head
Files the vendor evaluations
Materials Manager
Vendor service quality file
1
Is any rating below
satisfactory?
StopYes
1
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Quality Reports / NCR
Sends form to quality department for overall
quality score
Materials Manager
2
2
Moderates and gives final score . Sends it to the
Materials Manager
CEO
A
Vendor identification
process
Standard Operating ProceduresPage 9
1. Process Flow: Vendor Evaluation
Vendor evaluation
A
No
StartBasis input reports
Materials Manager creates vendor evaluation form.
Materials Manager
Adds quality score and sends the same to CEO
Quality Head
Files the vendor evaluations
Materials Manager
Vendor service quality file
1
Is any rating below
satisfactory?
StopYes
1
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Quality Reports / NCR
Sends form to quality department for overall
quality score
Materials Manager
2
2
Moderates and gives final score . Sends it to the
Materials Manager
CEO
A
Vendor identification
process
Standard Operating ProceduresPage 10
1. Process Flow: Order Process
Approved Indent
A
StartPrepares an indent for
required material and sends to stores in charge
Production In Charge
Evaluates if it is to be purchased from approved vendor or from new vendor
Materials Manager
Invites minimum 3 quotations for material.
Materials Manager
Stop
Yes
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Checks availability of the stock. Approves Indent if stock is not available and
forwards to purchase officer
Stores In Charge
A
Approved Vendor ?
Prepares comparative statement.
Materials Manager
Endorses vendor and comparative statement and
sends to CEO .
Materials Manager
Selects vendor in consultation with quality and sends it to Materials
Manager
CEO
Raises PO and sends to CEO along with previous
PO price.
Materials Manager
Signs off PO.
CEO
Raises the PO and updates PO File
Materials Manager
Request for Quotations
B
Comparative Statement
C
Approved Purchase
Order
D
B C
D
Standard Operating ProceduresPage 11
1. Process Flow: Open PO Monitoring
List of Open POs
A
StartGenerates a list of pending purchase orders at the end
of the month
Materials Manager
Forwards file to CEO
Materials Manager
Sends list to Materials Manager for follow-up with
vendors
CEO
Stop
Yes
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Performs root cause analysis for all open PO.
Materials Manager
A
CEO evaluates if PO Has to be closed?
Sends list to Materials anager for short closure of
PO.
Materials Manager
Standard Operating ProceduresPage 12
1. Process Flow: Receipt of Material
Approved Indent
A
StartPrepares a gate entry for
material
Security Guard
Transfers material to goods under inspection area
Stores in Charge
Files quality report in along with one copy of MRN in a
material wise file.
Quality Executive
Stop
YesNo
Buying Vendor Management Ordering Procedure Receipt of Material Payment
Post unloading of material performs quantity check and prepares a material
receipt note (3 copies) with actual quantity
Stores In Charge
A
Is material Quality
Passed ?
Puts quality approved stamp on 2 MRN copies
and send s to Store Incharge
Quality Executive
Attaches one copy of MRN to Accounts and one copy
of MRN to Materials Manager
Stores In Charge
Updates inventory status sheet basis duplicate copy
of the MRN
Materials Manager
Material Receipt Note
B
Updated Inventory
Status Sheet
C
B
Receipt of Material
1
1
RTV is formed. Refer Quality
SOP – Rejection Process
C
Standard Operating ProceduresPage 13
Material Receipt Note
1. Process Flow: Vendor Payment
StartReceives Approved MRN
from Stores-in-Charge
Accounts Executive
Processes invoice in Tally
Accounts Executive
Yes
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
1
1
Is material Quality
Passed ?
Processes invoice in Tally for partial amount and passes debit note for
balance amount
Accounts Executive
Stop
Standard Operating ProceduresPage 14
Vendor’s Ledgers from Tally
1. Process Flow: Balance Confirmation
StartSends a mail to all vendors
asking for their ledger books in hard / soft copy
Accounts Executive
Discusses with the vendor and resolves variances
CEO
Yes
No
Buying Vendor Management Ordering Procedure Receipt of Material Payment
A
1
1
Is there a variance?
Gets balance confirmation from the vendor
Accounts Executive
Stop
Balance confirmation in done by comparing the
vendor ‘s ledger and ledger as per the books
Accounts Executive
Rectifies books if required and gets confirmation from
the vendor.
Accounts Executive
B
Mail record for Balance
Confirmation
A
Balance Confirmation
B
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