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Raaj Unocal Standard Operating Procedures Procurement

Raaj Unocal Standard Operating Procedures Procurement

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Page 1: Raaj Unocal Standard Operating Procedures Procurement

Raaj Unocal Standard Operating ProceduresProcurement

Page 2: Raaj Unocal Standard Operating Procedures Procurement

Standard Operating ProceduresPage 2

Buying

Vendor Management

Ordering Procedures

Receipt of Material

Payment

1

2

3

4

5

Key Sub-Processes

Page 3: Raaj Unocal Standard Operating Procedures Procurement

Standard Operating ProceduresPage 3

Legend

Page 4: Raaj Unocal Standard Operating Procedures Procurement

Standard Operating ProceduresPage 4

Procurement Organogram

Page 5: Raaj Unocal Standard Operating Procedures Procurement

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

Page 6: Raaj Unocal Standard Operating Procedures Procurement

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

Page 7: Raaj Unocal Standard Operating Procedures Procurement

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

Page 8: Raaj Unocal Standard Operating Procedures Procurement

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

Page 9: Raaj Unocal Standard Operating Procedures Procurement

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

Page 10: Raaj Unocal Standard Operating Procedures Procurement

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

Page 11: Raaj Unocal Standard Operating Procedures Procurement

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

Page 12: Raaj Unocal Standard Operating Procedures Procurement

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

Page 13: Raaj Unocal Standard Operating Procedures Procurement

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

Page 14: Raaj Unocal Standard Operating Procedures Procurement

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