2013-02-13 First Issue - National Treasury eTender · GRE - Glass Reinforced Epoxy IRC ... PMTO -...

00 2013-02-13 First Issue

Transnet Capital Projects

Site Materials Management Procedure

Note: Check Aconex system for latest revision

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Table of Contents

1. Purpose ................................................................................................................................................. 3

2. Scope ..................................................................................................................................................... 3

3. References ............................................................................................................................................ 3

4. Definition/Abbreviations ...................................................................................................................... 4

5. Responsibility ....................................................................................................................................... 5

5.1 Manager Logistics, Expediting and Materials ................................................................................ 5 5.2 Project Procurement Manager ...................................................................................................... 5 5.3 Materials Manager ......................................................................................................................... 5 5.4 Warehouse Supervisor .................................................................................................................. 5 5.5 Project Material Expeditors ........................................................................................................... 6 5.6 Construction Supervisors .............................................................................................................. 6 5.7 Construction Manager / Superintendent ........................................................................................ 6 5.8 Materials Group ............................................................................................................................. 6 5.9 Site Manager Quality Control ........................................................................................................ 6

6. Procedure .............................................................................................................................................. 7

6.1 Material Receipt ............................................................................................................................. 7 6.2 Receiving of Material / Equipment Inspection Process Flow ........................................................ 8 6.3 Preparation for Inspection ............................................................................................................. 9 6.4 Markings ........................................................................................................................................ 9 6.5 Certification .................................................................................................................................... 9 6.6 Accepted Items .............................................................................................................................. 9 6.7 Nonconforming Items .................................................................................................................... 9 6.8 Materials Storage ........................................................................................................................ 10 6.9 Handling of Non-Conformance Material ...................................................................................... 10 6.10 Storage Locations Other than Warehouse .................................................................................. 11 6.11 Material Issuance / Control .......................................................................................................... 11 6.12 Material Issue Request ................................................................................................................ 11 6.13 Material Allocation/Material Issue ................................................................................................ 11 6.14 Material Issue Vouchers (MIV) .................................................................................................... 11 6.15 Material Return ............................................................................................................................ 12 6.16 Material Reconciliation ................................................................................................................ 12 6.17 Material Status / Inventory Report ............................................................................................... 12

7. Records ............................................................................................................................................... 12

List of Appendices

A. Annexure 1– Flow Chart for Site Material Management


B. Annexure – Material Receipt Voucher (MRV) – Refer 2684358-P-A00-PP-FR-002 Material Receipt Voucher (MRV)

C. Annexure – Material Issue Voucher – Refer 2684358-P-A00-PP-FR-003 Material Issue Voucher (MIV)

D. Annexure – Material Return Note – Refer 2684358-P-A00-PP-FR-004 Material Return Note (MRN)

E. Annexure – Excess / Shortage / Damage Report – Refer 2684358-P-A00-PP-FR-005(A) Excess Shortages Damages Report (ESDR)

F. Annexure – Daily Material Receipt Summary Report (DMRSR) – Refer 2684358-P-A00-PP-PO-007




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1. Purpose The Purpose of this Material Management Procedure is to ensure the control of:

• Material Receipts

• Material Inspection

• Material Storage

• Material Issuance

• Material Control

• Material Protection & Preservation

• Material Status Reports

2. Scope This procedure shall apply to all material Procured by Transnet Capital Projects- TCP and shall also be applicable where contractors either procure materials for the project and/or manage material which has been Free Issued to them.

3. References 2684358-P-A00-PM-PH-012 TCP NMPP Project Programme Execution Plan

2684358-P-A00-PP-PH-001 Materials Management Plan

2684358-P-A00-PN-PO-001 Project Planning Procedure

2684358-P-TM1-QA-PO-001 QC Procedure TM1

2684358-P-TM2-QA-PO-001 QC Procedure TM2

2684358-P-A00-QA-FR-008 Inspection Release Report

Aconex mail module Request for inspection form

2684358-P-A00-QA-FR-004 Construction Inspection Report Form

2684358-P-A00-QA-PO-004 Control of Nonconformity Procedure

Aconex mail module Nonconformity Report form

2684358-P-TM1-CM-PH-001 Construction Management Plan – TM1

2684358-P-TM2-CM-PH-001 Construction Management Plan - TM2

2684358-P-SCO-PM-PH-001 Systems & Automation (S & A) Project Execution Plan

2684358-P-TM1-PM-PH-001 Project Execution Plan TM1

2684358-P-TM2-PM-PH-001 TM2 Project Execution Plan

2684358-P-A00-PP-FR-002 Material Receipt Voucher (MRV)

2684358-P-A00-PP-FR-003 Material Issue Voucher (MIV)

2684358-P-A00-PP-FR-004 Material Return Note (MRN)

2684358-P-A00-PP-FR-005 Excess-Shortages-Damage Report (ESDR)

2684358-P-A00-PP-PO-007 Daily Material Receipt Summary Report (DMRSR)

Note – refer to Aconex for the latest versions.




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4. Definition/Abbreviations NMPP - New Multi-Product Pipeline Project

BOM - Bill of Materials

CCD - Contract Delivery Date

CRA - Corrosion Resistant Alloy

CoC - Certificate of Conformance

CO2 - Carbon Dioxide

DCS - Distributed Control Systems

DMRS - Delivery Material Receipt Summary

E&I - Electrical and Instrumental

ESDR - Excess, Shortage and Damage Report

ETA - Expected time of Arrival

GMTO - General Material Take Off

GRE - Glass Reinforced Epoxy

IRC - Inspection Report Certificate

IRN - Inspection Request Note

ITP - Inspection Test Plans

MCAT - Material Catalogue

MESC - Material and Equipment Standard and Code

MVVR - Material Value Voucher Request

MIN - Material Issue Note

MIV - Material Issue Voucher

MMS - Material Management System

MRR - Material Receiving Report

MRV - Material Receipt Voucher

MTO - Material Take Off

NCR - Non-Conformance Report

PO - Purchase Order

PMTO - Piping Material Take Off

QA - Quality Assurance

QC - Quality Control

SMCS - Site Material Control System

SPEC - Specifications

SRN - Slipping Release Note

SRV - Store Return Voucher

TM1 - Coastal Terminal (Island View)

TM2 - Inland Terminal (Jameson Park)

UID - Unique Identification

UOM - Unit of Measure

VPRM - Vantage Project Resource Management




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5. Responsibility 5.1 Manager Logistics, Expediting and Materials

Manager Logistics, Expediting and Materials have overall responsibility for this procedure and shall ensure that it is maintained and implemented.

5.2 Project Procurement Manager

The Project Procurement Manager shall ensure that the Procurement Officer supply the TCP Material Manager and nominees, including nominated contractors, with Project Purchase Orders in accordance with project agreed schedule and Project Procurement Pack-track

5.3 Materials Manager

The Materials Manager(s) shall ensure that the Material Supervisors and Controllers from TCP and appointed Contractors receive and load the required information into their approved Material Management Systems.

The Materials Managers shall coordinate with the Material Systems Operator BOM download from Engineering Contractors (Design Software Operators)

The Material Manger(s) shall ensure requirements are matched to orders and a fully functional Material Management System is established to meet the objectives detailed in the Purpose above

Key responsibilities include:

5.3.1 Co-ordinate the activities of those groups under his control.

5.3.2 Ensure sufficient resources deployed to manage and control, project materials, planning of transportation and logistical issues

5.3.3 Be responsible for managing surplus disposal in the most optimized manner

5.3.4 Work closely with Purchasing, QA and various Engineering Disciplines involved in procurement

5.3.5 Interface with clients as required in areas of materials forecasting, demand

5.3.6 Assist with input on planning

5.3.7 Provide analysis through accounting and inventory control

5.3.8 Maintains the highest safety standards for his area

5.4 Warehouse Supervisor

5.4.1 Liaise with corporate procurement, Expeditors and Logistics for the speedy dispatch of materials

5.4.2 Receive materials on site as per material packing list and arrange for inspection. Generate the Material Received Report (MRR)

5.4.3 Identify any damages during the course of the inspection process and generate the Overage Damage Storage Report (OSD) and forward the same to the corporate procurement department as well as the concerned officials

5.4.4 Store the materials in the respective storage locations as per warehouse design

5.4.5 Issue materials as per issue slip and update the inventory status. Ensure proper approval is obtained on the material issue receipt

5.4.6 Issue materials to the other sites if required and generate the respective Material Transfer note




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5.4.7 Generate daily and weekly reports on the material received status, OSDR's Inventory status as well as Material Requisition status and forward it to the respective Engineers as well as the corporate office

5.4.8 Maintain copies of all certificates, procedures, purchase orders, material transfer notes in an easily accessible location for• the audit process

5.4.9 Reference all purchase orders in the respective storage spaces for easy traceability

5.4.10 Coordinate rigging activities as and when required during the transfer of large and heavy equipment

5.4.11 Provide input on all material requisition notes on the availability of the same on site and status of any pending arrivals

5.4.12 Carry out any other duties as requested by the direct supervisor

5.5 Project Material Expeditors

The Project Material Expeditors shall ensure that their updated delivery-material status and locality information is fed to Pack-track for download to the Planners and Material Controllers daily

5.6 Construction Supervisors

Construction Supervisors shall be responsible for material on site after it is issued and received for final fabrication and/or field erection

5.7 Construction Manager / Superintendent

The Construction Manager/Superintendents, Field Material Controllers, QC Inspectors and subcontractor teams shall be responsible for ensuring effective material control and preservation in the field management

5.8 Materials Group

The Materials Group shall hold interface meetings and Construction and Planning shall provide Material Management with two week look ahead on Material Requirements

The Materials and Construction Manager(s) shall monitor the material control requisitions with emergency Issue by exception and to ensure good order and traceability of material in field is maintained

5.9 Site Manager Quality Control

The Manager Quality Control shall ensure that all materials received on site is verified and inspected as per the requirements of the respective Site QC Procedure.

Ensure Project requirements for storage, preservation and segregation are adhered to




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6. Procedure

6.1 Material Receipt 6.1.1 All material for the project shall be delivered to the designated storage facilities on site. Large

vessels and equipment shall be delivered straight to the location of installation

6.1.2 The material arriving on the site will be received by the Materials Manager / Material Controller, who will arrange for unloading at the designated areas

6.1.3 The consignment will immediately be inspected by the Materials Controller, in conjunction with disciplined inspectors and other specialists as required (refer to the site QC Procedure), for: - Transit damage - Verification of items per packing lists / PO - Material certification / CoC - Release by TCP QC

6.1.4 Assistance may be sought, it necessary, from the Discipline Construction Engineer. Any Nonconformities will be noted and a Non-Conformity Report will be issued as per the TCP Control of Nonconformity Procedure

6.1.5 On conclusion of the inspection, the material controller will prepare and issue Material Receipt Voucher (MRV) and ESDR (Excess/ Shortage / Damage Reports) where necessary. Copies of ESDR will be provided to the Expeditor, who will then liaise with the vendor to initiate replacement action for the rejected/damaged/ short supplied material

6.1.6 Only items that are not subject to final release at the Vendor by TCP QC needs to be subjected to detail checking/receiving inspection.

6.1.7 For Items subject to detailed site receiving inspection, the MRV, ESD Reports shall contain the completed attachments duly endorsed by TCP QC. All parties concerned must sign the MRV's and ESD's upon satisfactory completion of the receiving verification

6.1.8 For all other items, the Material Controller shall prepare a dossier containing a consolidated list of MRV's for the period requiring endorsement. The frequency of the compilation shall preferably be weekly unless otherwise agreed upon. The endorsed consolidated MRV's sheet shall be the supportive for the invoice, evidencing site receipt and acceptance

6.1.9 Piping spools and all other piping material shall be through a Material Receipt and Inspection Report (MRIR-as equivalent to MIV). Shortages and Damages will be recorded on an Excess, Shortage and Damage Report (ESDR). Subcontractors returned materials will be recorded on Material Return Note (MRN) and monitored. The latest version of all above referenced reports must be downloaded from Aconex.

6.1.10 All material received on site will have the details of the purchase order item number, size, tag number, and UID numbers used for traceability. For items that do not have this information, stickers will be used for the same

6.1.11 For each consignment, a Material Receiving Report (MRR) will be prepared

6.1.12 All test certification will be marked up at the top of each page with the UID numbers so it is traceable back to materials received, used on site

6.1.13 In case of transit damage to the consignment, the Material Controller will prepare a detailed report of the damage, which will be forwarded to Site Material Manager for necessary action.




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6.2 Receiving of Material / Equipment Inspection Process Flow All materials/equipment received on site shall be subject to confirmation of purchase order requirements (refer to the respective site QC Procedure for TM1 & TM2)

REF RESP.Receiving Inspection Process

Delivery

Free Issue:Contractor PO:

Equipment(incl. Shop Fab.)

Contractor PO:Material

Release by TCP

Release by TCP and Contractor

Matl. Cert & Dwg & PO

requirements

Packaging, Damages &

Quantity


Quantity


Quantity

Delivery Note Delivery Note Delivery Note

Update Inventory

Update Inventory

Update Inventory

File certificates in Work Pack

File release in Work Pack

File release in Work Pack

Inspection record

Acceptable? No

Sign QCP(as

applicable)

Yes

Inspection recordInspection record

Acceptable?

No

Yes

Contractor Material

Controller

Contractor Material

Controller

Contractor Material

Controller

Contractor Material

Controller

ContractorQC

Contractor QC & TCP

Quality Controller

Contractor QC & TCP

Quality Controller

Contractor QC & TCP

Quality Controller

Contract

Delivery Note

Site Materials Managem

ent 2684358-P-A00-PP-

PO-001

Inspection Release

Certificate as per 2684358-P-A00-QA-

PO-008

Contractor Insp. Report

2684358-P-A00-QA-PO-

004

Raise NCR as per Nonconformance

ProcedureNo




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6.3 Preparation for Inspection

6.3.1 Goods receipt activities are carried out by the Material Controller in accordance with this procedure. The Material Controller will request support from specialist discipline inspection personnel to carry out or assist with incoming inspection

6.3.2 The inspection party shall complete the Materials Checklist for the item in question. Where materials are received at locations other than the site warehouse, the Material Controller or another suitably experienced specialist will be assigned to carry out the inspection activity

6.4 Markings

The Material Controller shall ensure that items are suitably marked according to the specification for marking and identification. The identification marks allow traceability to the Material Test Certificate or the other document about the origin of the items.

The relevant documentation shall be checked to confirm traceability to the original certification. Certificate must be either the wet signed original copy or a verified copy.

6.5 Certification

The Construction Manager is responsible for material handling, identification and traceability of material on site.

6.6 Accepted Items

The relevant documentation shall be checked to confirm traceability to the original certification. Certificate must be either the wet signed original copy or a verified copy

6.7 Nonconforming Items

(refer to the TCP Control of Nonconformities procedure)

Items that are not accepted will be quarantined/segregated as below:

• Stored in a separate area.

• Identified as being Non-Conforming

• Depending on the reason for rejection, an ESDR and/or NCR will be issued.

o ESDR's are made by Material Controller for items:

▪ Those are supplied in a quantity other than that ordered or indicated on the shipping documentation

▪ For which the relevant document is temporarily not available (Release Note, Material Test Certificate(s), Certificate of Conformity, etc. Basically all documents required to establish the origin of the item. A NCR must be raised once it has been determined that the required documentation does not exist /has not been generated

o A NCR in terms of the TCP Control of Non Conformity Procedure will be raised by Site Manager Quality Control for items that:

▪ Supporting documentation (Release Note, Material Certificate etc.) is permanently not available

▪ Do not fulfil specified requirements

▪ Damaged material




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6.8 Materials Storage

6.8.1 The Project Site Warehouse will be equipped with storage racks, lighting and ventilation/air-conditioning and will be used to store vulnerable materials. The stores-racks will be erected in bays and each bay will be numbered with sufficient access provided between each bay for safe and convenient access to stores personnel and lifting equipment. Where panels, instruments and special materials are to be stored, separate controlled temperature storage conditions shall be maintained, based on vendor recommendations

6.8.2 The site warehouse/yard supervisor shall be responsible for specific material protection and storage requirements. These requirements shall be based on published industry standards, supplier requirements and job specifications. All certificates of compliance and test reports required by the Purchase Order shall be forwarded to the Contractor’s site Quality Manager. The Materials Coordinator shall ensure that equipment is preserved in accordance with preservation instructions. He shall conduct period checks and update the SMCS

6.8.3 A lay down area, outside the warehouse will be provided to receive materials on delivery and also to store materials not requiring covered storage. For material handling Hand Pallet Stackers, Forklifts and cranes shall be utilized as applicable

6.8.4 The storage yard will be fenced-off and will be used for all bulk piping materials and equipment

6.8.5 Large mechanical/electrical equipment items will be, as far as practical and compatible with the project construction schedule, transported directly to foundations, thus avoiding double handling

6.8.6 Small materials will be stored in separate bins, each clearly labelled for identification

6.8.7 Heavy single items will be stored at low level to minimize lifting operations and reduce the risk of accidents

6.8.8 All electronic equipment, control panels for DCS/Emergency Shutdown Systems/Fire and Gas System etc requiring storage in controlled atmosphere will be stored in air-conditioned room to avoid damage due to extreme weather and dust

6.8.9 Fire extinguishers of desired quantity will be located in the warehouse viz. Dry powder, CO2, BCF etc. Training will be conducted to familiarize stores personnel to use correct appliance in the event of fire

6.8.10 All piping materials will be colour-coded and valves & instruments tagged, in accordance with purchase order instruction

6.8.11 All piping materials will be stored as per piping specification in strict segregation viz Stainless Steel, Carbon Steel, CRA, GRE etc.

6.8.12 The applicable Expeditors will also ensure that all materials are accompanied with required certificates on receipt and that these certificates conform to the PO requirement

6.8.13 Inspections shall be carried out on storage facilities on a regular basis and to ensure that the equipment preservation requirements are being fulfilled. The Materials Manager, in liaison with the Project Engineer, shall ensure that storage instructions are available e.g. rotating equipment

6.8.14 Equipment stored in out-side yard areas which require protection against direct sunlight and rain will be covered

6.9 Handling of Non-Conformance Material

6.9.1 Nonconformity reports shall be prepared and controlled in accordance with the TCP Control of Nonconformity procedure.

6.9.2 All non-conformance material will be identified by a label or tag indicating a reference to the nonconformity number and date. Where practical, such non-conformance materials will be physically segregated from other material and placed in a quarantine area or clearly marked location on the project site




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6.10 Storage Locations Other than Warehouse

All items stored, waiting further processing, shall be subject to the requirements of this procedure, irrespective of their storage location

6.11 Material Issuance / Control

6.11.1 All materials shall be recorded and controlled through the agreed Materials Management System. The records will be continuously updated by inputting the details of each receipt and issue provided by the Material Receipt Voucher (MRVs) and the Material Issue Voucher (MIVs). An inventory check will be conducted at regular intervals, to ensure the following:

o All items/materials are properly identified and stored

o Stock quantities on record agree with actual physical stocks

o Highlight recurring type of errors in records

o Highlight poor storage conditions and stock deterioration.

6.11.2 With reference to material details listed in the purchase order and the MRVs, the physical receipt of materials will be recorded in the system

6.11.3 Material will be issued as per the Material Issue Voucher Request form duly filled in

6.11.4 Material Issue Voucher (MIV) will be prepared by Material controller with full details of materials and purpose/location of its use

6.11.5 In case of equipment, which normally consists of several separate parts which are issued progressively during the construction phase, the part numbers will be listed in the MIV

6.11.6 Any material no longer required in the field for various reasons, e.g. field change order, will be returned by the construction supervisor/s to the project store with correctly marked-up Material Return Slip

6.12 Material Issue Request

Material requests (MIVR) raised by Supervisors shall be verified and authorized by the Contractor’s Construction Supervisor if they meet priority work requirements.

6.13 Material Allocation/Material Issue

Upon receiving an authorized material request, the Materials Controller shall check for material availability and issue a Material Voucher (MIVs) to the requesting teams. These MIVs are registered with the date, receiver name and drawing for traceability. Accordingly the inventory stock card shall get updated

6.14 Material Issue Vouchers (MIV)

Upon material collection, in Some instances the material may be signed for on the MIR as Often the case with large tagged equipment as Proof of ISSUED and and l actual MINs/Heat nos./tag no./Quantities are on Aconex and link to these files shall be to be updated on the MIR, completely signed by the authorizing Construction/ Material Manager superintendent/stores issuer and construction subordinator receiver-

NOTE –IN THE CASE OF BULKS THE MATERIAL MANGEMENT SYSTEM may raise Batched warehouse picking tickets and will issue on system generated Material Issue Vouchers produced and printed out from the nominated Material Management System Matrix / SMS.




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6.15 Material Return

In case some items surplus due to revisions and site modifications, the discipline subcontractor shall prepare a Material Return Voucher (SRV) against the relevant MIR or batch- picking ticket recording number and return the items to the warehouse. The SRV, prepared by the sub-contractors, shall be authorized by the construction supervisor. Items shall be inspected to classify as usable or scrap and accordingly stock will be updated. Special measures shall be used with line pipes and E&I cables as practical. Material Controller shall control and track the SRVs and quantities.

6.16 Material Reconciliation

Secure storage areas will be provided to prevent misuse, abuse, damage, deterioration or loss.

6.16.1 All items, which are of delicate nature and/or which are susceptible to accidental or weather damage, will be placed inside dry storage. The weather-proof store rooms will be such that it prevents the ingress of rain water/wind and will have the floor remaining dry at all times

6.16.2 All hazardous material will be stored in dedicated locations in terms of project Environmental and Health & Safety requirements

6.16.3 Material/equipment stored outside will be kept off the ground on pallets, sleepers, temporary concrete slab etc. and will be provided with weather proof protection, e.g. tarpaulins or plastic sheeting

6.16.4 Periodic Inspection of materials/ equipment in storage of extended periods of time will be made to prevent loss or damage due to corrosion or deterioration

6.16.5 The condensation build up within the machines, due to humidity and temperature build-up will be arrested by the placing of moisture absorbing Materials such as Silica gel

6.17 Material Status / Inventory Report

The status of material for each purchase order from the ex-works delivery until its receipt on site will be maintained and will be submitted to TCP for information every month via "Stock Summary Report"

7. Records The Materials Controller shall continuously keep the following records up to date:

• Materials Received

• Materials in Storage

• Materials Issued

Refer to 2684358-P-A00-DC-PO-001 Records and Retention Procedure for detailed records and record requirements




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B. Annexure – Material Receipt Voucher (MRV) – Refer 2684358-P-A00-PP-FR-002 Material Receipt Voucher (MRV)




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C. Annexure – Material Issue Voucher – Refer 2684358-P-A00-PP-FR-003 Material Issue Voucher (MIV)




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D. Annexure – Material Return Note – Refer 2684358-P-A00-PP-FR-004 Material Return Note (MRN)




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E. Annexure – Excess / Shortage / Damage Report – Refer 2684358-P-A00-PP-FR-005(A) Excess Shortages Damages Report (ESDR)




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F. Annexure – Daily Material Receipt Summary Report (DMRSR) – Refer 2684358-P-A00-PP-PO-007

2013-02-13 First Issue - National Treasury eTender · GRE - Glass Reinforced Epoxy IRC ... PMTO -...

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