Presentation SE

8/3/2019 Presentation SE

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USER

REQUIREMENTS:

Prepared By:

SAQIB SIKANDER

SAIF-UR-REHMAN

SAQIB JAVAID

USMAN AFTAB

For

Mr. MUKHTAR

INVENTORY AND PROCUREMENT SYSTEM (IPS)


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It is responsible administrative and management work

assisting the Purchasing Department Director by

insuring the effective and efficient operation of

Purchasing Department procurement and inventory

automation systems. Work is performed withconsiderable independent judgment, discretion and

initiative.

An employee in a position allocated to this class is

responsible for planning, coordinating and

implementing Department/Countywide procurement

and inventory automation systems. This position reports

to the Purchasing Department Director.Work isevaluated based on quality and quantity of results

obtained and observation of overall effectiveness.

OVERVIEW


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3.4 Non-Functional Requirements

3.4.1 Requisition Process3.4.2 Procurement

3.4.3 Inventory

3.4.4 Disposal

3.1 Functional Requirements

3.1.1 Initiate Requisition

3.1.2 Validate Requisition

3.1.3 Pre-Procurement Process3.1.4 Procurement

3.1.5 Purchase Goods & Services

3.1.6 Invoice Processing/Billing

3.1.7 Inventory Description

3.1.8 Inventory Issuance

3.1.9 Goods Return

3.1.10 Sale & Disposal of Stock3.1.11 Reports


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3.1.1 Initiate Requisition

3.1.2 Validate Requisition

3.1.3 Pre-Procurement Process3.1.4 Procurement

3.1.5 Purchase Goods & Services

3.1.6 Invoice Processing/Billing

3.1.7 Inventory Description3.1.8 Inventory Issuance

3.1.9 Goods Return

3.1.10Sale & Disposal of Stock

3.1.11Reports

3.1 Functional Requirements


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3.1.1 INITIATE REQUISITION

Objectives/Overview of Process:

1. To initiate the Requisition process in different departments of Ministry.

2. Requisitions will be project-based (Development Requisition).

3. Annual or Normal Requisition (Non-Development Requisition).

4. The process will provide a Requisition template.

5. The Requisitions will be generated by selecting items from the

inventory (project / Non-Development) and submitted to SO (G), SO (Admin).

6. The Requisition (Development, Non-Development) will be prepared (in high

authority section) by low authority staff like Stenographer, approval

from respective personal assistant in the office will be requiredbefore submission to SO (G) and SO (Admin).

7. A procurement case will be prepared and forwarded to higher

authorities by using Internal Communication module.

8. The system will provide support to save, edit and iterate

Requisition to assist MIT employees.3.

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PROCESS CYCLE ( INITIATE REQUISITION)

Prepare Development Requisition

001. Select Project002. Add / Edit Items and Quantities003. Save Requisition004. View User Owned Requisition005. Edit Requisition006. Submit Requisition

Prepare Non-Development Requisition

001. Add / Edit Items and Quantities002. Save Requisition003. View User Owned Requisition004. Edit Requisition005. Submit Requisition

Prepare Annual Requisition

001. Edit Items and Quantities002. View Annual Statistics003. Save Requisition004. View User Owned Requisition005. Edit Requisition006. Approval Cycle

Local Approval Cycle

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3.1.2 VALIDATE REQUISTION


1. The objective of this process is to validate the Requisition and to take an

appropriate action for issuance of fresh Procurement.

2. The validation of Requisition will take multiple policies, logic and decision

making into account before approval or rejection of Requisition.

3. Requisitions fulfilling the criteria of authorization, rules and regulation

are entertained. The Requisitions will be entertained either from

inventory or a new procurement process will be initiated under the rulesof General Financial Rules (G.F.R).

4. The Requisitions that will contain items of different account heads will be

broken to their respective account heads.

5. A procurement case will be prepared if the items are not presented in

inventory. If multiple Requisitions of the same account head will beraised, a single procurement case will be prepared for all of them.

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PROCESS CYCLE ( VALIDATE REQUISITION)

Process Requisition001. View Requisitions List

002. View Requisition Details

003. Verify Requisition

004. Decision on Requisition

005. Generate Issuance Request

Prepare Procurement Case

001. Break/Merge Requisitions on account head

002. Approximate Costing

003. Verify from Budget

004. Decision on Procurement

Approval

001. Approval / Rejection

002. Approval Cycle

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1.3.3 PRE-PROCUREMENT PROCESS


1. Pre-Procurement process will be used for establishing the groundwork for

purchasing items against procurement cases.

2. Procurement process will be triggered after the approval of

method/strategy set in this process.

3. Rules and policies will be defined for procurement methods i.e. direct

purchase/petty purchase, quotations and Tenders. In few exceptional

cases, a No Objection Certificate (NOC) will be obtained before Tendering.

4. After the approval of Tender or quotation, subsequent process of

procurement will be initiated.

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References Chapter 8 of G.F.R.

Sample Quotations

Sample Tenders

Functionality Specification document


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PROCESS CYCLE ( PRE-PROCUREMENT REQUISITION)

Select Policy for Purchase Order flow

001. Amount based Procurement Policy setup

002. View Approved Procurement Cases

003. Select Procurement Method

Process Quotation

001. Generate RFQ (Request for Quotation)

002. Input Received Quotation

003.View Quotations004. Local Verification of Quotations

Process Tender

001. Generate Tender

002. Iterate for Tender Approval

Process Tender after NOC

001. Generate Tender

002. Attach documents with Tender

003. Store NOC Details

Reject Tender

001. Reject Tender

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1.3.4 Procurement

Objectives/Overview of Process:1. This process will be used for the selection of Supplier for the current Tender or

Quotation.

2. It consist of several subtasks like evaluation committee formation, preparation of

evaluation criteria, input bids received, bidder evaluation, recording of Minutes of

Meeting till a comparative analysis report will be generated for items and

Suppliers.

3. There will be no restrictions on the number of member in Technical Committee.

4. In most cases SO (G), SO (Admin) or Project Coordinator will be the only members.

Similarly in most cases only one evaluation criteria i.e. cost will be considered.

5. Multiple Suppliers will be selected for a single procurement case.

6. A formal contract will be prepared for the selected Supplier.

7. The contract will not be compulsory but will be required in few cases.

8. The contract will entail all the terms and conditions for the Supplier to agree. If the

Supplier isnot be agreed on terms, next Supplier in comparative analysis will be

given a chance, SO (G), SO (Admin) and Project Coordinator will have the

authority to re-Tender in exceptional circumstances like this.

9. Output of this process will be the Purchase Order for the successful

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PROCESS CYCLE (PROCUREMENT REQUISITION)

Formulation of Technical Committee

001. Select Procurement Case

002. Show Members list

003. Add Member

Evaluation

001. Evaluation Criteria

002. Input Received Bids

003. Evaluate Bidders

004. Minutes of Meeting

005. Generate Comparative Analysis Report

006. Local Verification of Evaluation

Supplier Approval Cycle

001. View Tender/Quotation

002. Send report to appropriate Member for approval

003. View Request for approval004. Approve/Reject

005. Contract Supplier

Generate P.O.

001. Generate Purchase Order

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1.3.5 Purchase goodsandservices


1. The objective of this process is to receive the goods from Supplier in areliable and crystal clear method.

2. To support the cause a Technical Committee will be formulated that will

inspect these goods. There will be no restrictions on the number of members

in Technical Committee.

3. In most cases SO (G), SO (Admin) or Project Coordinator will be the only

member. After inspection a certificate of valid items received will input tosystem.

4. After inspection a certificate of valid items received will input to system. In

case of bad or partial delivery the committee will send the notification to

Supplier for clarification and the bad items back.

5. The Supplier will send a new schedule for delivery. The delivery will berecorded in the system against the Purchase Order.

6. In case of successful completion of delivery a Delivery Challan will be sent to

Supplier by the SO (G), SO (Admin) or Project Coordinator.

7. . If any fraud will be found or the Supplier fails to deliver the items in

schedule SO (G), SO (Admin), Project Coordinator will block the Suppliertemporarily or permanently by Blacklisting the Supplier.

References Chapter 8 of G.F .R

Functionality Specification document

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Inspection

Process

001. Technical Committee

002. Goods Evaluation Criteria

003. Issuance of certificate

004. Notification to Supplier

005. Update Delivery Schedule

Process

Received

Goods

001. Update Stock

002. Delivery Challan Receipt

003 Blacklist Supplier

PROCESS CYCLE (PURCHASE GOODS & SERVICES)

Basic Function Breakdown

ID Sub-Functionality

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1.3.6 Invoice Processing / Billing

Objectives/Overviews of Process:

1. The purpose of this module is to record and process the invoice provided bythe Supplier.

2. The invoice details (items, quantity, price, discounts) will be inputs and the

scanned image of the invoice sent by Supplier will be kept in the system.

3. SO (G), SO (Admin), Project Coordinator will prepare a case by attaching

relevant documents of procurement that might be useful for Finance Section.

4. The Invoice will be sanctioned and forwarded to Finance Department.

5. The users will use the module to view the invoices and there status of processing.

6. Details of invoice with consolidated documents that generate the invoice

(Requisition, Quotation, Tender, Purchase Order, Delivery Challan and Invoice

details) can be viewed.

7. The module will be coupled with Finance module. Any objection / clarification on

the invoice will be sent by Finance Officer.

8. SO (G), SO (Admin), Project Coordinator will resubmit the invoice by providing

clarification and attaching documents to the invoice case.

9. The module will use Internal Communication to derive the workflows.3.

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PROCESS CYCLE (INVOICE PROCESSING/BILLING)

Record

Invoice001. Record Invoice Details

002. Sanction and Submit Invoice

Process

Invoice

001. View Invoices List

002. View Invoice Details

003. Resubmit Invoice



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1.3.7 Inventory Description


1. The objective of this process is to manage the stock. This process will also

maintain the Suppliers record.

2. The inventory administrator will perform operations. e.g. adding, editing

and deleting items and their specifications under different account

heads/category.

3. Inventory Administrator will also set an upper and lower threshold level and

depreciation of each item.

4. Stock in charge keeps track of the health of items. Inspections will be made

by SO (G), SO (Admin) or Project Coordinator.

5. The inspection result about the health of items will be recorded in the

system.

6. The Inventory Administrator can add, delete, edit and search a Suppliers

record.

7. The Inventory Administrator will also provide the information regarding the

Supplier to item link.

8. Report can also be viewed against Supplier/s.

References Functional Specification document

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PROCESS CYCLE (INVENTORY DESCRIPTION)

Manage

Inventory

001. Define Items (Data

Dictionary)

002. Inventory Inspection

Define

Suppliers

001. Add / Edit Supplier

002. Search Supplier



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1.3.8 Inventory Issuance


1. This process will cover inventory issuance to the Requestor.

2. Requestor will be the person who raised the Requisition or a contractor etc.

3. SO (G) will generate the issue request and submit it to the stock in charge for

issuance.

4. Issue request will be generated from SO (G) in different cases one at the time

when Requisition will be raised and stock will be available and second after the

procurement of item against the Requisition and goods received; means orderfulfilled.

5. Third in case the Requestor raises Requisition for the replacement of item and

item is available.

6. Once the request is raised, it will be submitted to Stock Incharge and Stock

Incharge will generate the Delivery Receipt for the request and issue goods to

Request Initiator together with delivery receipt that will be signed off by theRequestor after accepting the goods.

7. Stock Incharge will be able to view all the delivery receipts that have been issued

and accepted/signed off by the Requestor for his information. The items can also

be issued from Non-Development to Development department.

8. Items can also be issued to the contractor as per the rule. The contractor has to

pay the recovery rate and other charges.

References Sample Copies of Register maintained in MoIT

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Receive

Issuance

Request

001. View Issuance Request

002. View Issuance Details

Process

Issuance

001. Issue Items

002. Update Stock

PROCESS CYCLE (INVENTORY ISSUANCE)



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1.3.9 Goods Return


1. This process aims to maintain the stock record when goods will be

returned when a request is put up for replacement.

2. The SO (G), SO (Admin), Project Coordinator will check the reason to

replace the items and has authority to approve or reject the request.

3. On approval the goods return case will be sent to Stock Incharge. The Stock

Incharge will update the stock for returned items and will enter the status

of returned items i.e. Serviceable or Damaged.

4. If items will need to be replaced, Stock Incharge will generate a Delivery

Goods Receipt and send it to the Request Initiator.

5. The Store Incharge will record the signed receipt. The Request Initiator canview the status of request during the process.

References Sample copies of Register maintained at MoIT

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PROCESS CYCLE (GOOD RETURN)

Goods

Return

Request

001. Return Goods Request

002. View request status

003. Replacement approval

Update

Stock

001. View Return Goods List

002. Record Returned Items

003. Record Damaged Items

Deliver

Items

001. Delivery goods receipt002. View delivery receipt



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1.3.10 Sale and DisposalofStock


1. The purpose of this module is to record and take an appropriate action on

inventory that will need to be disposed.

2. SO (G), SO (Admin) or project coordinator will develop a case for the items

that will be reported to be obsolete, surplus or unserviceable. The disposalcase will be prepared and sent to the Competent Officer with rights to write

off a loss.

3. Competent Officer will take a decision on the method of disposing the stock

i.e. by auction, sale to officer, other department, or any other decision like

donation, permanently purging the stock.

4. The Competent Officer will sanction the disposal by sale or other wise.

5. The sale and disposal will be recorded and inventory will be issued against

the request submitted.

References Chapter 8 of G.F.R.

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PROCESS CYCLE (SALE & DISPOSAL OF STOCK)



Prepare

Disposal

Case

001. View Disposable Stock

002. Generate Disposal request

003. Local Verification of Disposal

Case

004. Submit Request to

Competent Authority

Sanction

Disposal

001. View Disposal Requests

002. View Disposal Request

Content

003. Disposal Decision

Process

Disposal

001. Disposal Action

002. Sales of Surplus to Private

persons of Store003. Sales by Auction

004. to other departments or

authority

005. Other decision taken

Release /

Issue Order

001. Inventory Issue

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1.3.11 Reports


1. In order to assist management and decision

makers summarized reports can be displayed.

2. Reports will be generated for different areas

of procurement and inventory management.

3. By just a few clicks a report will be selected

and summarized information of area of

interest e.g. Requisitions, procurements,

Tenders, quotations, issuance etc. will be

displayed.

References Functionality Specification Document

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View Reports001. View Reports

PROCESS CYCLE (SALE & DISPOSAL OF STOCK)



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3.4 Non-Functional Requirements

3.4.1 Requisition Process

3.4.2 Procurement Process

3.4.3 Inventory Process

3.4.4 Disposal Process


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1. REQUISITION PROCESS

1. Requisitions in development projects are made only against the Project

inventory. The inventory contains only those items that are enlisted in PC-

I document.

2. If any Requisition is raised by supporting staff for the section, it must be

verified by the authorized officer of respective section. e.g. a stenographer

in Secretary office raises Requisition for stationary. It must be verified by

Personal Assistant to Secretary before submission to SO (G), SO (Admin).

3. Partial Requisitions can be fulfilled. In case of partial Requisitions

issuance and procurement cases are generated.

4. Annual Requisitions are based on Stationary account head only. Howeverthe system supports addition of items from different account heads.

5. Procurement is based on the account head defined in FPBS. Therefore,

Requisitions containing items of different account heads must be separated

on the basis of item account heads. Items in Requisitions that belong to

common account head must be consolidated in one procurement case.

6. SO (G), SO (Admin) must be given an interface to finance planning and

budgeting system to verify the procurement.

7. Procurement cases are forwarded to competent officers for approvalaccording to the delegation of powers. The officer can take a decision if

he/she has the power of decision on amount in account head.

8. Approval cycle for the Procurement case can be postponed up-till the

process of Tender or quotation. Complete case will be submitted together

with Tender or quotation.

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2. PROCUREMENT PROCESS

1. Procurement cases are procured separately depending on the

approximate amounts i.e. for procurements less than Rs. 4000; aPurchase Order is generated directly. For amounts in range of Rs. 4000-

Rs. 40000 a quotation process is initiated. Amounts exceeding Rs. 40000

fall in Tender domain. For even higher amounts e.g. above Rs. 50000 or

any amount threshold set in delegation of power an NOC must be

obtained.

2. Officers (SO (G), SO (Admin) or Project Coordinator) can change the

default course of procurement described above by providing appropriate

reasons to adopt the methodology.3. There are no restrictions on members of Technical Committee i.e. SO

(G), SO (Admin), Project Coordinator. There can be single evaluation

criteria i.e. Cost of procurement. Cost of procurement must be the part

of evaluation criteria.

4. Competent authority has the rights to Reject the Tender initially or

after the selection of Supplier. Multiple Suppliers can be selected

against procurement.

5. In case of fraud or the Supplier is unable to deliver the goods, SO (G),SO (Admin), Project Coordinator can temporarily or permanently black

list a Supplier.

6. Invoices should be entertained with high priority and supporting

documents must be attached.

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3. INVENTORY PROCESS

1. Nominal issues of inventory must be recorded in the

system.

2. Items are issued to request initiator after he/shesigns the inventory delivery challan.

3. Goods can be issued to development project or any

other department of ministry but follows the same

principles of issuance and receipt.

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4. DISPOSAL PROCESS

1. Inventory marked as surplus, obsolete or unserviceable

can be disposed after permission of competent

authority who can write off all losses.

2. If surplus goods are to be sold to internal employeesthe officer must provide a reason / clarification to

perform this action.

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THANX.

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