Presentation Mm Current
Transcript of Presentation Mm Current
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Materials Management Deptt.
For internal Training Purpose
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Procurement
Contracts
Warehouse Management
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Proprietary
Nomination
Tendering
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The Approval Note is the first and foremost requirement of all types of procurement,services and contracts
Highlighting FeaturesTop Half of the approval note
1.Subject2. Description
2.1. Background2.2. Exact Requirement2.3. Approximate cost
3. Budget Reference3.1. Budget Head3.2. Balance Available3.3. Proposed amount
Bottom Half of Approval Note
Raised by (Officer User Deptt.)
Verified by (Manager User Deptt.)
Forwarded by (Respective CM)
Concurred by (Finance)
Approved by (Plant Head)
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Important
All the approvals are based
on the Delegation of
Authority
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1. File no. for every approval note
2. Checking Material Code availability and detailed verification of approval.
3. Preparation of new material Code
4. Intimation to User Deptt. for PR, maintaining File
5. Preparation for Vendor approval
6. Request for Quotation
7. Follow-up with vendors reg. submission of quotations
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8. Opening of Tender
9. Request for extension of tender opening date & update in SAP (if required)
10. Forwarding tenders for technical evaluation
11. Follow-up with user deptt. reg. technical evaluation
12. Follow-up with vendors for technical clarifications (if any)
13. Preparation of Comparative statement
14. Follow-up with Finance reg. submission of comparativestatement
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15. Negotiation with bidders (wherever applicable)
16. Approval for Purchase
17. Preparation of Purchase Order
18. Sending Purchase Order to vendors and copies to file
19. Sending copy of Purchase Order to user deptt.
20. Keep track of due date for delivery – follow-up with vendors
21. Collect all the documents e.g. Invoice, Challan, Test Certificates etc
22. Keep track of payment mode – follow-up with Finance deptt
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23. In case of Import Procurements:-
a) get confirmation on Commercial Terms from supplier
b) Process for Letter of Credit (wherever applicable)
c) Process for advance payment (wherever applicable)
24. In case of contracts:-
a) get committee approval (wherever applicable)
b) Process for EMD submission and release (wherever applicable)
c) Process for PBG submission and release (wherever applicable)
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Purchase
requisitionQuotation
Purchase
order
RFQ
Source
of
supply
Vendor AVendor A
Vendor BVendor B
Vendor CVendor C
Rejection
letter
Purchasing
Master dataMaster data
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Purchasing
info record
MaterialMaterial
master master recdrecd
Vendor Vendor
master recdmaster recd
Purchase order
Header
Items
10 __________
20 __________
30 __________
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Purch. req.
ProcurementProcurement
Determination of reqmtsPayment processing 1188
Vendor selection33
Source determination22
PO processing44
Purch. ord.
10
20
30
Goods receipt66
Invoice verification77
Invoice
??
PO monitoring55
Purchase
order
10
20
30
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Material is received against Purchase order then
▪ Quantity is Checked
▪ Quality is Checked
If the inspection result is ok then clear the GRN and makefinal GRN and send it to Stores and inform FI/AC.
If not then initiate the return process
If Material received is in excess then
▪ Prepare “Excess Supply” report.
▪ Return the excess supply / accept with user approval.
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If Material received is in Short supply then
▪ Prepare “Short Supply” report.
▪ Intimate supplier.
Goods Inspection
▪ Material specific parameters are checked.
▪ For non-standard item item is inspected by the userdepartment.
▪ Excess material is accepted in certain circumstances.
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PLL / non-PLL
Returnable / non-Returnable
Inward / Outward
Specific SOPs are followed for clearance of gate pass
All the gate passes of non-returnable outward (PLL or, non-PLL) has to be approved by Plant Head
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Goods Issue
a) Material Requisition Form or Material Issue Request is sent to stores(through maintenance order / General).
b) Stock is verified.c) If stock is sufficient then make Material Issue Note. Otherwise intimate
user
Physical Inventory or Inventory Verification
Twice in a Year
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Monthly Report
Weekly review of Open Purchase Requisitions and open Purchase Orders
Monthly review of pending goods delivery
Monthly review of open Service orders / Contracts
Monthly review of Inventory (high value & critical), Goods Receipt andGoods Issue
Quarterly review of Critical Spares stock
Half-yearly review of non-moving inventory
Monthly review of Audit compliance
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Monthly review of minimum level/maximum level inventory
Monthly review of safety items stock, chemicals stock, cylinders stock.
Quarterly review of self life materials
Monthly review of returnable gate pass materials
Monthly review of payments, clearance of urgent payments, customs
duty etc.
Monthly review of EMD, PBG clearances
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S.N. Details of training in brief
Day-1
Briefing about procurement, contract and warehousing process.
Providing Sample Files for review on basic process i.e Approval, DoA, Budget Reference, Indent Form, material Master
Review at 4 PM
Day-2
Elaborate on procurement process - Tendering, proprieatary, nomination procurement
Contracts procedure and documents
Providing sample files for review in relation to above
Review at 4 PM
Day-3
Warehousing process
Material stock checking and reports
Inventory verification
Review at 4 PM
Day-4
Vendor communication, delivery of materials, follow-up systemSAP entry of following:-
Service Entry , Material Issue
Goods Receipt and inspection process
Review at 4 PM
Day-5
SAP entry of material master, Request for quotation, MIS
Service orders - one time, ARC, AMC etc.
Material Gate Pass Entry/exit systemWritten Test on Training imparted during the last 5 days. Feedback.
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