Items are procured from approved vendors while ensuring that produced items confirm to the specification.

Scope

This procedure is applicable to all items purchased from vendors. Items are procured based on the stock position in the system. A minimum level of stock for each item has been fixed. As soon as stock reaches that figure, an indication comes on computers screen. Based on this indication further order is released.

Purchased Order

Purchase order is release to approved vendors through systems.
The purchase order contains following purchasing data:

1) Name & address of vendor.
2) Item description.
3) Drawing no. with latest revision.
4) Quantity.
5) Unit price.
6) Packing Instruction.
7) Mode of dispatch.

Purchase orders are authorized by personnel up to manager level. Registered copies of drawings are issued to vendors and master list of the same is maintained.

Vendor Selection

It's ensured that purchased orders are raised for approved vendors only. Vendors are evaluated and assessed based on the vendor evaluation (form). Vendor approval is done to the level of manager. After the approval vendor is added in approved vendor list. Vendors are re-evaluated after every 3years.

Purchase  Order Amendment

If there is any deviation in the requirement, amendment to Purchase Order is sent to the vendor.

Disqualification in The Vendor

If it is found that performance (quality wise & delivery wise) is not satisfactory, the vendor is removed from approved vendor’s list.

Reinstatement of Vendors

Disqualified vendors can be reinstated after re-evaluation of vendor and checking a sample lot of the item.

Rate Contract

For standard items, yearly orders are placed with schedules. A rate contract is signed with the vendor for the period of one year.

Records