CAL_As is Study_Purchasing Process v.02

8/10/2019 CAL_As is Study_Purchasing Process v.02

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Chemfab Alkalis LimitedBusiness Process Study

Purchase AS IS Study

Author : Selvaraj R

Creation Date : 18-Nov-2013

Last Updated : 30-Nov-2013

Control Number : PO/Process/01

Version : 2.0


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Document Control

Revision Details

Date Author Version Change Reference

22-Nov-20 !

Selvara" # $raft %0

!0-Nov-20 !

Selvara" # $raft 2%0

Distribution

2

S.No.

Name Department Position Signature Date

% &r%BalaSubramanian '

&aterial&ana(ement

'P &&

2% &r% Sarfudeen ) S &aterial&ana(ement

Sr%&ana(er

!% &r%#a"aram S &aterial&ana(ement

$y%&ana(er

*% &r% $heera" +umarS

&aterial&ana(ement

$y%&ana(er

,% &r% #amasamy & ' &aterial&ana(ement

.cer


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Table of Contents

S.No Title Page No.

% /y es ofIndent1111111111111111111111111111111111111111111111111111111111111111%*

2% Position ierarchy forIndent11111111111111111111111111111111111111111111111111111111%3

!% /y es of Purchaserders111111111111111111111111111111111111111111111111111111111

1%4

*% Position ierarchy for Purchaserder11111111111111111111111111111111111111111111111111%% 0

,% Purchase Process 5lo611111111111%%11111111111111111111111111111111111111111111111%% 2

3% Purchase rder

Amendment11111111111111111111111111111111111111111111111111111111% *

4% &anual Purchaserder1111111111111111111111111111111111111111111111111111111111

1% 3

7% Anne8ure1111111111111111111111111111111111111111111111111111111111111111111%% 7

!


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TYPES ! "NDENT

*


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,

Process"D

Description E#planation $ner

P - A #e air 9&aintenance

Indent is raised for #e air 9 &aintenance of e:ui ments that mi(htbe sent out for su ly 9 service%

$e artment ;ser

P - $ A&C- Annual&aintenanceChar(es

% Purchase rder for Contract Service or Contract Service 6ithmaterials% Payment tions are@a% If the value is lakh for A&C? the artial ayment of ,000 is aidinitially? after the 3 th month the balance ayment is done%

b% A&C is created for certain value but ayment is not done%Payment is done for every invoice after service is done

$e artment ;ser

P - 5 A#C Annual#ate Contract

%


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Position %ierarch&

Position %ierarch& for "n'ent

Process"D


3


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P -2A >n(ineer Can #aise the #e:uest 9 a roved the same% It 6ill be for6arded tothe ne8t level

Purchase

P -2B $e artment $ 5or6arded Indent is a roved 9 for6arded the same to $% $for6ard the Indent to the ne8t level%

Purchase

P -2C Plant ead Plant ead 6ill a rove the same &anually Purchase

TYPE ! P(RC%ASE RDERS

4


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7


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Process"D


P -!A #e(ular im ort % Purchase rder created for re(ular im ort of items% Purchase

P -!5 #9$ Im ort %Purchase rder for rocurin( im ort items for #9$ Purchase

P -! A&C % Purchase rder for Contract Service or Contract Service 6ithmaterials% Payment tions are@a% If the value is lakh for A&C? the artial ayment of ,000 is aidinitially? after the 3 th month the balance ayment is done%

Purchase

E


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b% A&C is created for certain value but ayment is not done%Payment is done for every invoice after service is done%

P -! #9$ % Purchase rder for rocurin( domestic items for #9$% Purchase

P -!I A#C

% Purchase rder is created for certain materials that come underA&C%2%


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P S"T" N %"ERARC%Y

Position %ierarch& for Purchase r'er


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P(RC%ASE PR CESS !) *

2

Process"D


P -*A Purchase .cer Create Purchase rder Purchase

P -*B $y% &ana(er Create Purchase rder Purchase

P -*C Sr% &ana(er Can 5or6ard the Purchase rder to ne8t level Purchase

P -*$ Internal Audit Internal Audit Purchase

P -*> 'P &aterial If the a roval limit is less than lakh? they can a rove% If thea roval limit is (reater than lakh they send ro osal to

Chairman%


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"n'ent to P Conversion $ith +uote

Process"D


!


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P -,A Indent #ecei t

Indent is received from ;sers 6ith /echnical s eci=cation anddistributed to res ective Purchase o.cers% /he ;sers are theconcerned de artment em loyees% /he indent may be throu(hmanual entry or throu(h le(acy system% Indent may be of di erentty es@ Ca ital? #e air 9 &aintenance%

P;#C AS>

P -,B Con=rmation

from Stores

Purchase ;sers (et con=rmation from Stores re(ardin( shorta(e of on-hand corres ondin( to the indent created% /hey study the indent

and check the technical in uts before e8ecution of indents% If any:ueries in technical s eci=cation? the Purchase interacts 6ith ;sers% P;#C AS>

P -,C Annual Bud(et /o con=rm 6hether the value of item has not e8ceeded in the annualbud(et or fresh a roval has to be obtained to consider the item inAnnual Bud(et%

P;#C AS>

P -,$ btainJuotations

Purchase re:uests :uotation from su liers a(ainst indent% /here:uest may be throu(h Phone calls? >-mail etc%%and receive theJuotations%

P;#C AS>

P -,> 'erify technicals eci=cation /he technical s eci=cation in the :uotation (iven by the su liers isveri=ed a(ainst indent%

P;#C AS>

P -,5 5inalne(otiation

Pre are rice com arison amon( di erent su liers and select thebest su lier and com lete =nal ne(otiation% If Juot value is morethan one lakh internal Audit 6ill coordinated 6ith Purchase /eam 9a rove the same? /hen same 6ill be for6ard to Chairman fora roval

P;#C AS>

P -, CreatePurchase rder

Pre are Purchase rder 6ith technical s eci=cation% If it is ne6su lier then su lier evaluation system is follo6ed% If the value of P is less than or e:ual to Lac then the Position is 'P F&aterialG% If the value is bet6een Lac and 0 Lac then the Position is &ana(in($irector% If the value is (reater than 0 Lac the Position is Chairman%

P;#C AS>

P -, 5or6ardPurchase rder5or6ard? follo6 u and (et back urchase orders after internal audit P;#C AS>

P -,I #eleasePurchase rderSe(re(ation and releasin( the P to su liers 9 accounts% ne co yof P to be ke t in =le 6ith back a ers

P;#C AS>

P -,) #eceive&aterial5ollo6 u 6ith su liers for dis atch 9 delivery as er P due date% P;#C AS>

P -,+ Arran(ere lacement5ollo6 u for sendin( back the re"ected materials and arran(e forre lacement%

P;#C AS>

*


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P Amen'ment

,


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P

Process "D


P -3A Indent #ecei t

Indent is received from ;sers 6ith /echnical s eci=cation anddistributed to res ective Purchase o.cers% /he ;sers are theconcerned de artment em loyees% /he indent may be throu(hmanual entry or throu(h le(acy system% Indent may be of di erentty es@ Ca ital? #e air 9 &aintenance%

P;#C AS>

P -3B Con=rmationfrom Stores

Purchase ;sers (et con=rmation from Stores re(ardin( shorta(e of on-hand corres ondin( to the indent created% /hey study the indentand check the technical in uts before e8ecution of indents% If any:ueries in technical s eci=cation? the Purchase interacts 6ith ;sers%

P;#C AS>

P -3C Annual Bud(et /o con=rm 6hether the value of item has not e8ceeded in the annualbud(et or fresh a roval has to be obtained to consider the item inAnnual Bud(et%

P;#C AS>

P -3$ CreatePurchase rder


P;#C AS>

P -3> 5or6ardPurchase rder5or6ard? follo6 u and (et back urchase orders after internal audit P;#C AS>

P -35 #eleasePurchase rderSe(re(ation and releasin( the P to su liers 9 accounts% ne co yof P to be ke t in =le 6ith back a ers

P;#C AS>

P -3

#eceive&aterial 6ith>8cess LessJty

&aterial is received from Su lier 6ith >8cess Less Jty%a% If the Jty is e8cess then Purchase communicates to

concerned de artment% If the de artment acce ts the e8cess

:ty then Purchase acce ts the :ty 6ith revision and re-a roval% If the de artment re"ects the e8cess :ty thenPurchase returns the material to Su lier%

b% If the Jty is less 6%r%to Invoice then &$N is created statin( theshorta(e :ty% If the :ty is endin( 6%r%to P then Purchasefollo6 u 6ith su lier to receive the shorta(e :ty%

P;#C AS>

P -3 $eliver toInventoryAcce ted &aterial is delivered to Inventory% P;#C AS>

3


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,anual Purchase r'er

4


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7


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Process"D


P -4A CreatePurchase rder


P;#C AS>

P -4B 5or6ardPurchase rder5or6ard? follo6 u and (et back urchase orders after internal audit P;#C AS>

P -4C #eleasePurchase rderSe(re(ation and releasin( the P to su liers 9 accounts% ne co yof P to be ke t in =le 6ith back a ers

P;#C AS>

P -4$ #eceive&aterial5ollo6 u 6ith su liers for dis atch 9 delivery as er P due date% P;#C AS>

P -4> $eliver &aterial$eliver &aterial to Stores S/ #>S

ANNE-(RE

S.No AN usiness Process R"CE T&pe (n'er Stan'ing

E


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No.Kearly bud(et demand Not 5easible 'olume based bud(etin(-yearly

2 2 &onthly break u demand

Not 5easible 'olume based bud(etin( breaku -monthly

! ! 5rom various de artment-- Purchase re:uisition-- Indent M A rovalF'erify stock 9 a roveG

Standard Indent is received from users of di erent de artment%Purchase veri=es the stock%

* * ross materialre:uirement -- Stockveri=cation -- Netdemand

Standard Stock checkin( is based on &aterial re:uirement Stockveri=cation and Net $emand is arrived%

, , #5J - ! vendors - 'endorcom arison -- PPro osal -- A roval

Standard Purchase re:uests :uotation from vendors% After receivin(the Juotation? they =nd the suitable vendor? create Pand send for a roval%

3 3 P eneration

Authori ation #elease-- P Amendment 6ithAuthori ation

Standard After a roval of P they release the P to su lier% Any

chan(es later P amendment is done%

4 4 &aterial recei t --In6ard ins ection -Acce tance re"ection-- Acce ted materialmove to Stores

Standard After the material is received? ins ection is done byconcerned de artment% Acce ted material is moved tostores% #e"ected material is sent back to su lier%

7 7 Indent based trackin( till&aterial recei t for allitems all :ty% /o decide

6ith mana(ement on#eservation for s eci=cindent de artment -6ise%

#e orts


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! ! P Amendment 6ithistory FArchiveG Standard istory is bein( maintained for 6hatever amendment isbein( done in P

* *

CAL_As is Study_Purchasing Process v.02

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