Purchasing Policy & Procedure - Toyota-Boshokutb-india.com/wp-content/uploads/2014/02/purchasingPolicy.pdf · 7777 Policy for SPTT & HVPT 8888 Policy for Localization 9999 Policy

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Purchasing Policy & Procedure

Toyota Boshoku Automotive India P Ltd

Purchase Department

TOYOTA BOSHOKU

We contribute to society by developing leading-edge technologies

and manufacturing high-quality products

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� SocietySocietySocietySociety The Company will promote corporate growth while fulfilling the following responsibilities as a good corporate citizen: (1) Maintain ethical values, ensuring that our corporate activities are fair and transparent; (2) Supply safe products that do not harm the environment; Promote corporate activities that help protect the global environment; (3) Create a better society as a member of our local communities.

�� CustomersCustomersCustomersCustomers The Company will develop innovative technologies and products to deliver quality that satisfies our customers.

� ShareholdersShareholdersShareholdersShareholders The Company will promote innovative management policies that ensure future corporate growth and the trust of our shareholders.

� EmployeesEmployeesEmployeesEmployees The Company will build and maintain positive labor-management relations, respect the individuality of its employees and create safe and comfortable workplaces.

� Business Business Business Business partnerspartnerspartnerspartners

The Company will promote open and mutually beneficial relationships with its business partners in pursuit of long-term growth and prosperity.

� We meet challenges with courage and creativity, to realize our dreams.

� We carry out Kaizen continuously, aiming to achieve higher goals.

� We practice Genchi Genbutsu by going to the source to analyze problems and find their root causes.

� Once a decision is made, we move quickly to carry out the plan, with passion and a sense of mission.

� We seek to do our best, act professionally, and take responsibility for our actions.

� We respect the values of other cultures and accept differences, with an open mind and global perspective.

� As a good corporate citizen, we do what is right and contribute to society.

� We respect the individual and use teamwork to produce the best result.

Corporate Philosophy

TB Way The values, patterns of conduct, and philosophies that Toyota Boshoku must maintain and observe

We contribute to society by develoWe contribute to society by develoWe contribute to society by develoWe contribute to society by developing leadingping leadingping leadingping leading----edge technologiesedge technologiesedge technologiesedge technologies and and and and manufacturing highmanufacturing highmanufacturing highmanufacturing high----quality products.quality products.quality products.quality products.

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Table of Contents

1 Mission Statement

2 Need for Purchasing Policy

3 Guidelines

4 Policy

4 a Procurement of In Direct Materials

4 b Procurement of Direct parts

4 c Procurement of Imported Materials

4 d Procurement of Machineries

5555 Policy for Utility works

6666 Policy for Supplier Selection and Evaluation

7777 Policy for SPTT & HVPT

8888 Policy for Localization

9999 Policy for Cost Reduction

10101010 Policy for Scrap Disposal

11111111 Procedure for Internal control

12121212 Documents Life

Toyota Boshoku India – Purchasing Policy & Procedure

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The mission of the Purchasing member is to procure the highest possible quality of

goods and services for the Company at the lowest possible cost. We assist

departments in identifying best source for procuring the materials within the

stipulated time.

To accomplish our mission, certain Guidelines and Procedures have been

established. These Guidelines & Procedures must be adhered to in order to ensure

compliance with applicable Central and Local government regulations. Utmost care

is taken to ensure that unlawful activities are not allowed and fundamentals of best

business practises are followed.

1 Mission Statement

Purchasing Policy & Procedure - Mission

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2 Need for Purchasing Policy

Purchase Department is committed in setting up of efficient, effective, economical

& sustainable policy procedure in all Purchasing activities. This policy covers:

a. Procurement of Goods or Services subject to contract including consultants

b. Asset purchases

c. General Operating services / expenditure items including Direct and In-Direct

materials, Imported materials, Sub-contracting, Machineries and Equipment

hiring

d. Ensuring that Purchasing transactions are carried out in a fair and

transparent manner

e. Strengthens Integrity and Confidence in the Purchasing system

f. Ensuring that Value for Money in its Purchasing

g. Considers the Environmental impact of the procurement process across the

life cycle of goods and services

h. Full accountability shall be taken for all purchasing decisions

Purchasing Policy & Procedure - Need for Purchasing Policy

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Purchase Department has the authority to place order for direct materials, In-direct

materials, Capital Goods, Imported materials and may be made with the vendor

using a Purchase Order.

Purchase Department has to make a PO after receipt of Purchase Requisitions /

Purchase Indents duly approved by Director Purchase / Managing Director

Purchase Department are not authorized to make capital equipment purchases

unless TBAS / TBJ approvals are obtained & submitted along with Purchase

Requisitions / Purchase Indents by user department with necessary allocation of

funds in the Budget approval sheet.

Purchase Department officials should not in indulge in any wrong practices in giving

or favoring business orders to suppliers.

Purchase Department officials to establish clarity on all Purchases in terms of Cost,

Quality and Service requirements and necessary records must be stored with

Purchase Order for all future references.

3 Guidelines

Purchasing Policy & Procedure - Guidelines

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� Purchase Department to receive Purchase Requisitions / Purchase Indents with

minimum of 3 quotations from user departments.

� All Quotations should be received only in PDF format with necessary signature

and seal of suppliers and shall be in force with effect from 01.09.2011.

� Exceptions are given for all Proprietary items or items from Original Equipment

Manufacturer.

� Purchase Department to verify the quotation details and shall check the prices

with other alternate sources if any.

� Complete Vendor Registration procedure for identifying the new source for

Micro, Small or Medium scale industry to be made and necessary

documentation to be obtained from the respective source.

� The above documents to be furnished to Finance Department to ensure

Statutory requirements are completed.

� The policy shall ensure that items are obtained directly from the OE’s or OE

approved Stockiest or Distributors.

4 Policy

4 a Procurement of In Direct Materials

Purchasing Policy & Procedure - Policy

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� Necessary documents for authorization shall be received from OE’s and prices

with discount shall be discussed and finalized with OE’s where ever applicable.

� Data sheet shall be made for each category of items for confirmation of prices

with discount details viz: Stationery, Electrical, Consumable, Small tools, Safety

items.

� Prices of all the above items shall be checked once in every 3 months with OE’s

and also local market condition

� Suitable Price correction shall be made accordingly and the period for

correction stands at 3 months once for above category of items

� Each PO shall be referred with Data Master for Price and Discount terms PO

with relevant documents shall be enclosed for final approval by HOD, Director

Purchase and MD

� All Purchase Orders duly approved shall be sent to suppliers and Due

acceptance for PO for all types of items procured shall be received from

suppliers for record purpose

� Any Change in PO terms should be made only thru PO Amendments

� No Hand written should be allowed on the PO except Signatures


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� Any infrastructure development viz: Building, Plant expansion …at TBI to be

monitored, approved by a team from User department + Purchase + Finance +

Excise members before Final approval by MD

� Memorandum Of Understanding shall be made for all regular suppliers to

enforce strict norms on having Ethical business practices

� Whistle Blower Policy shall be made and informed to all suppliers and

necessary acknowledgement for having seen and noted shall be received by

purchase department

� The above activity to be monitored by Legal department

� Purchasing to be undertaken on a competitive basis in which all potential suppliers

are treated impartially, honestly and consistently

� Where a higher priced conforming offer is recommended,. there should be clear

and demonstrable benefits over and above the lowest total priced conforming

offer duly approved by MD

� Where the value of procurement of goods or services, Direct Purchase from a

single source can be made after first obtaining three verbal competing bids.

However, it is recommended to use professional discretion and occasionally

undertake market testing with more forms of quotation to ensure best value is

maintained.

� All documents relating to quotation process must be saved in the hard copies

attached to the file copy of the Purchase Order


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� For the Procurement range, the selection should not be based on the price alone

and it is strongly recommended to consider some of the qualitative factors such as

Quality, stock availability, accreditations, time for completion of delivery,

Warranty conditions, technology, maintenance requirements, Organization

capability and previous relevant experiences as part of the assessment of the

quote

� Items Purchased thru petty cash, petty cash vouchers are to be made and duly

approved by Director or MD (amount less than INR 5,000/-)

� All Records associated with purchase of materials must be recorded and retained

for a minimum of 5 years

4 b Procurement of Direct parts

� Sales Department receives RFQ from customer

� RFQ details shall be circulated to all concerned departments by Sales

� Cross Functional Team (CFT) will decide the sourcing strategy viz. In-house or

Out source

� Respective Drawings with specification shall be received by Purchase

department

� Purchase will identify suitable suppliers based on the criticality of items

� RFQ shall be sent to 2 or 3 suppliers


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� All Quotations should be received only in PDF format with necessary

signature and seal of suppliers

� Cost study shall be made with comparison

� Standard norm, Existing norm and also conditions of cost prevailing at the

time of feasibility study shall be duly considered for arriving at final cost



documentation to be obtained from the respective source

� The above documents to be furnished to Finance Department to ensure

Statutory requirements are completed

� Cost merits shall be sent to TBAS and TBJ where ever applicable either by

Purchase or by Sales department

� Suitable approvals shall be obtained for cost proposals

� Official LOI (Letter Of Intent) duly approved by Managing Director shall be

sent to supplier to start Tool / Mould making activity

� Each PO shall be referred with Data Master for Price and Discount terms

� PO with relevant documents shall be enclosed for final approval by HOD,

Director Purchase and MD





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purchase department


� Purchasing to be undertaken on a competitive basis in which all potential

suppliers are treated impartially, honestly and consistently

� Where a higher priced conforming offer is recommended,. There should be clear

and demonstrable benefits over and above the lowest total priced conforming

offer duly approved by MD

� For the Procurement range, the selection should not be based on the price

alone and it is strongly recommended to consider some of the qualitative

factors such as Quality, stock availability, accreditations, time for completion

of delivery, Warranty conditions, technology, maintenance requirements,

Organization capability and previous relevant experiences as part of the

assessment of the quote

� All Records associated with purchase of materials must be recorded and

retained as per the Model Life and Annexures to be attached for all PO

� Quality evaluation of parts to be done by TBI Quality Department and Final

approval of parts with specification shall be subjected to Final approval by

Customer based on workability condition and other related parameters

� Production control department shall give monthly schedule to supplier and

supplier shall despatch the quantity as per monthly schedule given with correct

document


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NameNameNameName G P AG P AG P AG P ATooling Tooling Tooling Tooling

AgreementAgreementAgreementAgreementM O UM O UM O UM O U

Whistle Blower Whistle Blower Whistle Blower Whistle Blower PolicyPolicyPolicyPolicy

Direct Material Direct Material Direct Material Direct Material SupplierSupplierSupplierSupplier

In Direct Material In Direct Material In Direct Material In Direct Material SupplierSupplierSupplierSupplier

SparesSparesSparesSpares

Equipment Equipment Equipment Equipment SupplierSupplierSupplierSupplier

Service Service Service Service ProvidersProvidersProvidersProviders

ContractorsContractorsContractorsContractors

Direct Material Direct Material Direct Material Direct Material Import Import Import Import

In Direct Material In Direct Material In Direct Material In Direct Material Import Import Import Import

� Any change in the Design of component shall be with prior approval thru

Instruction Memorandum duly approved by Director or thru an ECI (Engineering

Change Instruction) duly approved by the Customer

4 b.1 Mode of PaymentMode of PaymentMode of PaymentMode of Payment

� Supplier sends monthly payable statement and payment shall be made thru

RTGS transfer or thru Cheque

4 b.2 Code of EthicsCode of EthicsCode of EthicsCode of Ethics

� All Suppliers shall enter into agreement with TBI for Memorandum Of

Understanding (MOU) and Whistle Blower Policy.

� All Direct Suppliers shall also enter into General Purchase Agreement (GPA)

and Tooling Agreement where ever applicable with TBI along with above

agreements (refer Table below :)

� Gifts, Entertainment should be declined in accordance with provision of Code

of conduct.


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4 b.3 Supplier Obligation to terms & conditionsSupplier Obligation to terms & conditionsSupplier Obligation to terms & conditionsSupplier Obligation to terms & conditions

When a Supplier dispatches the Goods / Materials in response to TBI PO / Schedule

Supplier has legally complied with PO / Schedule terms & conditions and is under

no obligation of the Purchaser to accept the goods unless the Supplier has made an

error in terms of Quality or others.

In case of Error, TBI shall charge the Supplier thru Claim recovery note given from

Quality / Production Department duly approved by Head Of Department and shall

subsequently deduct the respective charge from Suppliers payment.

4 b.4 Purchasing ServiPurchasing ServiPurchasing ServiPurchasing Servicescescesces

� To make, review and sign all Procurement agreements

� Supplier Selection and Evaluation

� To establish new suppliers

� To process Purchase Order changes

� To ensure Purchases are in acceptance with requirements

� Supplier improvement activities (Quality Improvement, Annual Supplier

Awards, VA VE Meetings, Kaizen promotion activities)


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START

PR / Recieptd

PI Approved

PO

Payment

Remittance thru'

Bank

Despatch from

Origin

Receipt of Material

at port of

destination

Clearnace

procedure

Duty Payment

Release of Goods

Receipt @ TBI

END

Document thru'

courier mode

Price

Verification

Incoterms

4 c Procurement of Imported Materials - Indirect

Flow Chart


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START

Receipt of

Quotation from

supplier

Clearing

Disptach from

Port of destination

Receipt @ TBI

END

Dispatch of

Documents

Identification /

Evaluation of

Source by

Information to TBI

Price

Negotiation

PC Schedule

PO /

Information

to supplier

4 c Procurement of Imported Materials - Direct

Flow Chart


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4 d Procurement of Machineries

� Due Approval / Authorization must be obtained from TBAS / TBJ before

requesting for procurement by the User Department

� Official confirmation for the above to be attached with Purchase Requisition

� Technical Evaluation sheet to be enclosed duly approved by Director and

Managing Director to be attached along with Purchase Requisition

� Purchase Department shall check and negotiate the prices with supplier and

recommendation can be made for change in sourcing wherever feasible with

consent from User Department.

� PO shall be made duly approved by Managing Director and will be processed

for payment purpose

� Mandatory requirement of obtaining Supplier acceptance for the PO to be

obtained by Purchase Department and record to be maintained for all future

correspondence

Following are examples of Procurement agreements that must be

signed by Purchasing member:

� All types of Purchase Orders

� Purchase Order Amendments

� Payment Request

� Sample Submission request

� Supplier Change Request

� Inter Office Memo


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5555 Policy for Utility works

� All Utility work proposals by User department must get prior approval from

TBAS / TBJ w.r.t all criteria

� Joint team of Purchase member + User member + Finance member to study

supplier selection & other processes

� Joint team has the right to select supplier and commercial finalization shall

be at the discretion of HOD Purchase with Final authority and approval by

MD

� All Quotations should be received only in PDF format with necessary

signature and seal of suppliers and shall be in force w.e.f 01.09.2011

� Purchase Department to verify the quotation details and shall check the

prices with other alternate sources if any



documentation to be obtained from the respective source

� PO with relevant documents shall be enclosed for final approval by HOD,

Director Purchase and MD









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purchase department


� Purchasing to be undertaken on a competitive basis in which all potential

suppliers are treated impartially, honestly and consistently

� Where a higher priced conforming offer is recommended,.

� There should be clear and demonstrable benefits over and above the lowest

total priced conforming offer duly approved by MD

� For the Procurement range, the selection should not be based on the price

alone and it is strongly recommended to consider some of the qualitative

factors

such as Quality, stock availability, accreditations, time for completion of

delivery, Warranty conditions, technology, maintenance requirements,

Organization capability and previous relevant experiences as part of the

assessment of the quote

� All Records associated with purchase of materials must be recorded and

retained as per the Model Life

� Joint team to monitor the progress of work

� Any Increase/Decrease in measurement of work carried should be

authenticated by Joint team and final approval by MD is mandatory before

amending the Purchase Order

� Necessary Statutory obligation viz. PF, ESI for onsite member working to be

obtained by supplier & HR

� Department reserves the right to approve


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� Disposal of Old items recovered during execution of project to be auctioned

and final authority on price and supplier shall be made by MD

� Any change in the specification of Design during execution of project should

be notified to TBAS / TBJ if applicable and final changeover to happen after

approval by MD

� Before start of any Utility work, User department shall provide complete

details of work and other specification details (BOM) to Purchase and to Joint

team

� Primary responsibility of Execution of work lies with User department and

Purchase shall have Secondary Responsibility

� All Inward & Outward movement of Goods during execution of work should

be thru correct documents duly approved by Concerned authorities

� Any Discrepancy in movement of Materials shall be subjected to verification

by Joint team and final authority on action to be initiated in case of any

fraudulence shall be made by MD


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6666 Policy for Supplier Selection and Evaluation

START

Identify TBI requirement

Source

Identification

Existing /

New

Supplier Quessionaire

Supplier Assessment /

VisitRequest for

Quotation (RFQ)

Cost Feasability

Source

Finalization

Add in approved

supplier list

Commercial Negotiation

/ Scheduling

LOI / PO

(Tool / Mould / Part)

SPTT / HVPT

Sample Receipt

QC Inspection , Testing

& Evaluation

Sample

Approval

50% Tool Payment

Pilot Ordering

PCR 1, 2 and 3

Final Production trials /

Confirmation

MASS PRODUCTION

Balance 50% Payment

END

<NG>

<New>

<Existing>

<New>

<Existing>

<OK>


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7777 Policy for SPTT & HVPT

• To purchase better control part with lower cost

• To establish supplier base to supply out sourcing parts with Quality, Quantity

and Cost in timely manner

Suppliers Parts Tracking Team is a virtually organized team who manages

production preparation and countermeasure issues systematically.

The entire concept of SPTT shall be done in accordance with Global Purchasing

Dept. of Toyota Boshoku and made by Mr. Masayuki Sakai.

Three visits shall be made and dept. representing would Purchase, Quality, PEDD &

PC.

Complete process plan with production preparation activity schedules will be

checked and suitable countermeasures shall be taken for any items deviated from

originally set targets.

Mission Statement

Concept


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Resp: Resp: Resp:

Resp: Resp:

PCR Trail List at TBI /TKMLV-V stop ordering after PCR II

approval from TKMLSVP / Implementation

Part Development / SPTTSample Submission to

TBI QCD

Final Evaluation Approval

from

TBAS/TBJ/TMAP/TAB/TKML

Sub Supplier change request

to TKML with ECR / ScheduleLOI / PO with Advance

Pur/Sales/PED/PEDD Purchase

TBAS Approval to start

Localization

Technical Feasibility study

Purchase / QCD

Cost Feasibility study

Purchase

TBI Management Approval

MD

8888 Policy for Localization

Following procedure is adopted to localize:

Actual Localization benefit to be taken for 1 full year (12months) from the date of

Implementation. This shall be taken for Cost Reduction annually.

8 1 Benefits of Localization


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Purchase Department official can propose to give financial assistance to supplier in

case of urgency.

Complete supporting document to be made and final decision to be taken by

Director & Managing Director.

For any additional Financial support to supplier, Director and MD reserves the right

to charge Interest or not.

8 2 Financial Assistance to Suppliers’


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As a part of our ongoing commitment to improve the environment, this policy

seeks to reduce the environment impacts of our operations and promote

sustainable development by the integration of environment performance

considerations in the procurement process.

We are committed to the integration of environment performance considerations

in the procurement process including planning, Procurement, use and disposal. We

are committed to considering the environmental aspects, potential impacts and

costs, associated with the life cycle assessment of goods and services being

acquired

Green procurement or environmentally preferable purchasing is the practice of

procuring products and services that are less harmful to the environment (land, air

and water) and all species including humans that depend on environment for

survival. Green products are those that are made with less harmful materials or

which when produced or used/consumed would have a minimal impact on the

environment. Listed below are a few ways through which we aim to integrate the

green procurement policy with the Toyota environment policy.

GREEN PROCUREMENT POLICY

GREEN PROCUREMENT

Purchasing Policy & Procedure – Policy “Green Procurement Policy

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� We shall encourage and prefer eco-friendly products, which are more power

efficient.

� We shall prefer to purchase from a source that is less polluting or uses clean

technology

� We shall encourage and prefer vendors who use recycled packaging

material. The possibilities of further reuse and/or recycling shall be explored

with the user based on needs and other conditions

• All parts made for Toyota should be free from SOC – Substance Of Concern.

SOC items are Lead, Cadmium, Mercury and Hexavalent Chrome (as per

Toyota Standards)

• Suppliers are providing certificates for SOC free supply and record to be

maintained at Design Department

• Suppliers should supply parts free from V O C

• All parts made for Toyota should be free from Toyota Banned Chemical

items.

• All Suppliers have been requested to obtain ISO 14001 certification and road

map to achieve is made

Mandatory Requirement

Purchasing Policy & Procedure – Policy “Green Procurement Policy

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START

PO Creation

SAPPurchase Member

1st PO

Approval

SAP

Purchase HOD

Final

Approval

SAP

Managing Director

Director

Sr. Director

Purchase Order

print out

END

Purchase Order Approval Procedure

Purchasing Policy & Procedure – Policy

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START

Management target on material cost

Official request to

all suppliers ( Direct

Negotiation

Making cost reduction data

PO amendment

Supplier feedback

Management Information

Credit not if any

END

9999 Policy for Cost Reduction


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The Purchasing Department will be responsible for the disposal of TBI Purchased,

owned, surplus and obsolete material, goods, equipment, Motor Vehicles,

Production scrap, trail material, free samples, E Scrap by the method which obtains

Best Value for money including:

� Auction thru notice at TBI

� Transfer to other department

� Return to the supplier for refund or credit

� Trade in on the purchase of replacement equipment

� Donation to Charitable purpose

Before sending the scrap material, they have to be first declared unserviceable or

scrap by the competent authority. For most of the materials Respective

Department Heads / Director of the Departments are competent to classify the

materials as unserviceable or Scrap.

MD approval is a must before an Item is classified as scrap and final commercial

price to be approved by Director and Managing Director.

Utmost care shall be taken by the supplier / TBI to ensure that the purchased scrap

material will be disposed in a proper way and will not have any effect on

Environmental Pollution.

10101010 Policy for Scrap Disposal


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Sl# Item

Sell to Local

Market as

Scrap

Auction @

TBI

Transfer to

other

Department

Return to

Supplier

Trade In with

Dealer /

Agent

Charity

1 Obsolete Material(Carpet, PVC &

Others)

2Used Goods (Furniture

& Other General items)

(Asbestos sheet

& others)

3Non-useable goods

(Furniture, general items)-

3 Used Equipment (AC & Other s)

4 Used Motor Vehicles -

5Used Production scrap

( Hazardous / Non -

6 Used Trail Material -

7 Used Free Samples -

8 Coconut -

2 3 14

1 23

12

� All Suppliers to give Deposit amount returnable on termination of agreement

and is interest free

� All Suppliers to give Demand Draft issued by Nationalized Bank in favor of

Toyota Boshoku India and to be handed over to Finance Department before

lifting the scrap from TBI

� Frequency of lifting to be periodically evaluated based on need and

requirement

� All other terms and conditions to be as per agreement terms agreed mutually

10 1 Procedure for scrap Disposal of Production parts


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� In case of any issues arising out of non-compliance with regards to disposal

of scrap, Supplier has the responsibility to meet all statutory and Legal

proceedings

� Agreement shall be terminated if Supplier does not meet required terms and

conditions of TBI

� The Price Contract shall be for a period of 1 year and subjected to change

after 1 year. The authority on Price contract shall be with MD Actual items to

be disposed as per agreement terms shall be the responsibility of Production

control and Stores

� Scrap materials shall not be dispatched if insufficient funds are available with

TBI and in case of any urgency discretion to despatch shall solely lies with

Director and MD

� Required Documentation to be given by Stores / Excise within 1 hour of

submitting the final papers by supplier

� Supplier shall not take any other item other than mentioned in Scrap

Agreement and any issues arising out shall be decided by TBI Management

and suitable action would be initiated. MD has the authority to take final

decision

� Any sort of Gifts, Entertainment and other illicit activities to select or to

award Scrap business is strictly prohibited and in case if found guilty is

punishable and final authority shall be with MD

� To dispose any other item except other than agreement item Purchase to

make feasibility study after obtaining the scrap note from user department

and will report to management. MD approval is a must before selecting

supplier and commercials


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Sl# ItemIn Direct Material

Direct Material

Utilities Spares Import Machineries Service

1 MSMED

2 Quote in PDF

3MD Approval for PR /

PI

4Vendor Master

Creation (Authorised Purchase member)

5Multi Level approval

in SAP

6Amendment thru

Verison Management

7No Hand writing on

PO

8No Regularisation of PO after receipt of

Material / Job

9Minimum 3 Quotation

in PDF format

10Scrap Disposal News

paper

11OE Price check for

all B/O parts

12Joint team

monitoring for Utility work

13 Check sheet for PO

143 Months once Price

check / review

15

Price Increase / Decrease proposals

(MD approval) before PO Amendment

16Air Freight

proposals (MD approval)

Director

or MD

need to

approve

11111111 Procedure for Internal control


30 | P a g e

Item Documents to be kept for Document Mode

PO Direct Material Model Life of Vehicle Soft + Hard copy

PO In Direct Material 5 Years Soft + Hard copy

PO Spares 3 Years Soft + Hard copy

PO Capital Items 5 Years Soft + Hard copy

PO Utility work 3 Years Soft + Hard copy

General Correspondence 3 Years Hard copy

Anytime that a modification needs to be made to a Purchase Order the purchasing

department must notify via one of the models as stated below:

Item Mode Means Approval Final Approval

Price change Thru version

Management SAP HOD Managing Director

Tax Condition

change

Thru version


Cancellation /

Deletion

Thru Blocking in

system Document HOD -

Short Closure Thru version


Other Terms &

Condition change

Thru version


12121212 Documents Life

PO Modifications / Cancellations / Closure


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The following PO numbering system applies:

Purchase Order Type PO number begins

with Followed by

Blanket 1 XX 55 00000

Regular 1 XX 45 00000

Service 1 XX 63 00000

Sub Contract 1 XX 66 00000

Imports 1 XX 48 00000

Item By Final approval Document Receipt

at Purchase by

Proposal Introduction User Department M D H O D

Purchase Requisition User Department M D H O D

Advance Payment Request Purchase M D H O D

Payment Request Form Purchase H O D -

For questions or comments about Purchasing Policy & Procedure contact:

TBI Purchase Department

Purchase Order Numbering System

Internal Requisitions


32 | P a g e

“Toyota Boshoku India – Purchasing Policy & Procedure”

Established < January> <2011>

Toyota Boshoku Automotive India Pvt Ltd.

Purchase Department

<Conceptual design & edition: Information Systems Dept.>

Purchasing Policy & Procedure

TOYOTA BOSHOKU