Scribd Logo
Upload

Welcome to Scribd!

  • 105 views

    7.4 Purchasing

    Uploaded by

    Ahmed Hussien
    The document outlines a purchasing procedure to control purchasing processes and evaluate suppliers. It establishes a system with forms to request items, obtain quotations, issue purchase orders, verify deliveries, and evaluate supplier performance. Suppliers are selected based on criteria like experience, quality, and price. They are evaluated every 3 months and aggregated annual evaluations determine if suppliers remain approved or face warnings, suspension, or removal from the approved list.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    7.4 Purchasing

    Uploaded by

    Ahmed Hussien
    105 views3 pages
    The document outlines a purchasing procedure to control purchasing processes and evaluate suppliers. It establishes a system with forms to request items, obtain quotations, issue purchase orders, verify deliveries, and evaluate supplier performance. Suppliers are selected based on criteria like experience, quality, and price. They are evaluated every 3 months and aggregated annual evaluations determine if suppliers remain approved or face warnings, suspension, or removal from the approved list.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines a purchasing procedure to control purchasing processes and evaluate suppliers. It establishes a system with forms to request items, obtain quotations, issue purchase orders, verify deliveries, and evaluate supplier performance. Suppliers are selected based on criteria like experience, quality, and price. They are evaluated every 3 months and aggregated annual evaluations determine if suppliers remain approved or face warnings, suspension, or removal from the approved list.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    105 views3 pages

    7.4 Purchasing

    Uploaded by

    Ahmed Hussien
    The document outlines a purchasing procedure to control purchasing processes and evaluate suppliers. It establishes a system with forms to request items, obtain quotations, issue purchase orders, verify deliveries, and evaluate supplier performance. Suppliers are selected based on criteria like experience, quality, and price. They are evaluated every 3 months and aggregated annual evaluations determine if suppliers remain approved or face warnings, suspension, or removal from the approved list.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Issue No. (4) Rev.

    (0)
    Purchasing Procedure Date: 15/04/2013
    PSC-OP-7.4
    Page 2 of 3

    Purpose and Scope


    The Purpose of this procedure is to establish a system to control the purchasing process and the
    control of company suppliers and subcontractors and their evaluations as well within the organization.

    1. Procedures
    1.1. The Needs Request form no. (F-01/PSC-OP-7.4) is issued whenever any department requests
    any kind of items which is checked by the storekeeper for the availability of the requested
    items at the warehouse.
    1.2. If the requested items are not found at the warehouse, the storekeeper issues the Purchasing
    Requisition form no. (F-02/PSC-OP-7.4) reviewed by department head for its adequacy
    obtaining the approval of the factory manager or construction head.
    1.3. Afterwards the Purchasing requisition is sent to the Purchasing department where the
    requisition contents shall be entered to the computer to proceed in purchasing the requested
    items.
    1.4. Purchasing coordinator issues the Purchase Order (PO) form no. (F-04/PSC-OP-7.4) to the
    selected supplier ( If required or for purchasing through the mail) stating all the data related to
    the items as well as any general or special conditions and requirements and any kind of
    documents to be supplied with the material, also any penalties for the delay through the
    supply process approved by the Managing Director.
    1.5. Purchaser is responsible for requesting the quotations from the company approved suppliers’
    according to the quality and delivery requirements stated in the requisition, where the
    purchasing department must collect at least 3 offers from the suppliers.
    1.6. For rule of obtaining 3 offers prior each purchasing process, it has an exception in case of sole
    agents and vendors - and clients’ recommended vendors-, or for purchase orders whose values
    do not exceed 3000 L.E. unless for materials whose criticality identified by the project/site
    manager.
    1.7. Afterwards all the collected quotations are listed in Quotations Evaluation Sheets form no. (F-
    03/PSC-OP-7.4) comparing all the quotations together and selecting the best offer and stating
    the justification of the best offer from the best quality to the cheapest price with good
    payment and delivery conditions approved by the purchasing head.
    1.8. The coordination between the purchasing department and the suppliers has to be established
    in the form of follow-up of the required material to insure the delivery time regarding the
    items delivery dates where the (site or project)/factory manager shall be updated with these
    co-ordinations results.
    1.9. Any delay of the material if occurred to be checked with the dept. who requested it to see the
    impact of this delay also any discrepancy in the received material.
    1.10. As soon as the inspection status of the required material is accepted, the invoice of the
    material to be issued to the account dept. to start preparing the payment for the supplier.
    1.11. Verification at subcontractor’s premises is done by the company representative for some
    items, according to what specified in PO, however, in some cases according to contracts
    agreements the customer can verify that subcontractor’s products are satisfied
    1.12. The suppliers/subcontractors selection criteria have to be based upon their experiences and
    specialization in the requested material where the acceptance criteria will include but not
    limited to:
     The market share and other jobs with a company,
    Issue No. (4) Rev. (0)
    Purchasing Procedure Date: 15/04/2013
    PSC-OP-7.4
    Page 3 of 3

     The part experience, commercial record and financial status,


     Supply of materials with their mill certificates,
     Accepted to return back the rejected materials by QC dept.
    1.13. Purchasing head shall list all the company selected supplier and subcontractors in the
    Approved supplier’s list form no.(F-05/PSC-OP-7.4) which shall be approved by the
    Managing Director and to be subjected to an update at least once a year.
    1.14. Each of the company suppliers is being evaluated every 3 months in the Supplier Evaluation
    form no. (F-06/PSC-OP-7.4)
    1.15. Evaluation of subcontractors is performed on site by project / Site manager according the
    following Criteria :
     Time schedule commitment contract and specification commitment manpower and
    equipment performance
     Environmental and Safety rules commitment
     Quality of work
    Using subcontractor evaluation form no. (F-07/PSC-OP-7.4) which is sent to project/site
    manager and submitted back to the Purchasing department which shall be done at least once
    during dealing with the subcontractor per each PO or frame agreement.
    1.16. Any observation, non-conformity, discrepancy in the supply process shall be taken into
    consideration during the supplier/subcontractors evaluations.
    1.17. The overall aggregated evaluations results shall be documented on the
    Suppliers/subcontractors Aggregated Evaluations form no. (F-08/PSC-OP-7.4) at the end of
    each year where a copy shall be submitted to the QA to perform the data analysis on the
    performance of company suppliers and sub-contractors in the management review meeting.
    1.18. The results of the evaluations will be used to prepare the next year list of approved supplier
    and sub-contractors according to the suppliers grades, in which whom obtained 80% or more
    will continue as a company supplier, and for those who obtained 80% to 70% shall be warned
    due to their low marks and shall be suspended if they obtained it twice successively,
    suspended suppliers from being dealt with the company are those who obtained less than
    70%.

    2. Forms
    2.1. Needs Request (F-01/PSC-OP-7.4)
    2.2. Purchasing Requisition (F-02/PSC-OP-7.4)
    2.3. Quotations Evaluation Sheet (F-03/PSC-OP-7.4)
    2.4. Purchase Order (F-04/PSC-OP-7.4)
    2.5. Approved List of subcontractors/Suppliers (F-05/PSC-OP-7.4)
    2.6. Supplier Evaluation (F-06/PSC-OP-7.4)
    2.7. Subcontractor Evaluation (F-07/PSC-OP-7.4)
    2.8. Suppliers/subcontractors Aggregated Evaluations (F-08/PSC-OP-7.4)

    You might also like