Procedure for Handling, Storage,

Procedure for Handling, Storage,

Preservation and Delivery

Procedure No. EG-ST-PR-01

Revision No. 02

Page No: 2 of 13

Revision History

Rev

No. Date of Revision Details of Changes Reason for Change

Rev.No

From To

0 01.12.2016 New version (All

pages)

For implementation of

Procedure - 0

1 01.06.2018

Modified Organization

chart, Responsibilities,

procedure and documented

information.

Continual Improvement 0 1

2 05.08.2019

Modification of list of

abbreviations,

Organization chart,

Responsibilities, procedure

and documented

information.

Continual Improvement

1 2

Distribution List This Documented Information will be uploaded in QMS site for reference.




Revision No. 02

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List of Abbreviations

Sl. No Abbreviation Expansion

1. COMML Commercial

2. DOC Document

3. EG Electronics Group

4. GRN Goods Receipt Note

5. HBL HBL Power Systems Limited

6. HOD Head Of the Department

7. IQC Incoming quality control

8. I/C In charge

9. ISO International Organization for Standards

10. MRB Material Review Board

11. NCR Non Conformity Report

12. PCB Printed Circuit Board

13. PPC Production Planning and Control

14. PE Power Electronics

15. QA Quality Assurance

16. QMS Quality Management System

17. ST Stores

18.

WI Work Instructions

19. WO Work Order




Revision No. 02

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Table of Contents

1 Purpose ........................................................................................................................................... 5

2 Scope .............................................................................................................................................. 5

3 Organization chart ......................................................................................................................... 5

4 Roles, Responsibilities and Authorities ..................................................................................... 5

5 Process Flow Chart ....................................................................................................................... 8

6 Procedure ....................................................................................................................................... 9

6.1 HANDLING & LABELING: ..................................................................................................... 9

6.2 STORAGE: .............................................................................................................................. 9

6.3 RECEIPT OF THE MATERIAL: ........................................................................................... 9

6.4 ISSUE OF MATERIAL: ........................................................................................................ 10

6.5 ISSUE OF MATERIALS THROUGH DELIVERY CHALLAN: ....................................... 11

6.6 DISPATCH OF REJECTED MATERIALS: ....................................................................... 11

6.7 RE – ACCEPTANCE OF REJECTED MATERIAL: ........................................................ 11

6.8 NON MOVING MATERIALS: .............................................................................................. 11

6.9 SCRAPPING OF THE MATERIALS: ................................................................................. 11

6.10 URGENT ISSUES:............................................................................................................ 12

6.11 PACKING: .......................................................................................................................... 12

6.12 PRESERVATION: ............................................................................................................. 12

6.13 DELIVERY: ........................................................................................................................ 12

7. Documented Information: ............................................................................................................. 12

List of Tables

Table 1: Roles, Responsibilities and Authorities ...................................................................... 8

List of Figures

Figure 1: Organization Chart ................................................................................................... 5

Figure 2: Process Flow Chart .................................................................................................. 8




Revision No. 02

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1 Purpose

To detail the procedure to be followed to avoid damage, deterioration, mix up and safe keeping of materials and products during storage, manufacturing and delivery from the time of receipt of the material till the finished product is dispatched. Materials shall be stored at allocated storage area & necessary recording, accounting of the same to be done.

2 Scope

This procedure is applicable for accounting of material, sub – contracted materials, processed materials for the works, services and finished products.

3 Organization chart

Figure 1: Organization Chart

4 Roles, Responsibilities and Authorities

Manager

Responsibilities:

Maintenance of Stores :

Make sure that all the inward materials after IQC are placed in appropriate bins / allocated locations as per Bin card and also kept neat and clean.

Proper handling of Stores material / sub-assemblies / Finished products.

Static sensitive components and trolleys for handling the material are to be used carefully and safely.

Review the rejected material and its disposal as per laid down Procedure on daily basis.

Monitoring the material dispatch as per DI (Dispatch instructions) received from production QC.

Accounting:

Responsible for proper accounting in SAP for the receipt of the material / service & Sub- Contracted products etc., at Stores.

As per the Management instructions, all the invoices are to be accounted for till last day of the month. If, any bill leftover, simultaneously, will be taken in the next month.

Disposal of “Non Moving Material” materials are to be carried out through MRB (material Review Board and Finance approvals..




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Disposal of the “Scrapping materials”, if any, are to be carried out as per MRB Procedure and Finance approval..

Monitoring of PCB components “Kitting status” on daily basis.

Reconciliation and closing of RDC (Returnable Delivery challan) on monthly basis.

Responsible for conducting the physical stock check of Stores as per intervals specified by the management i.e. Monthly / Quarterly / Yearly.

Responsible for conducting and extending support, during the Store stock checks being conducted by Corporate Accounts or Banking staff and others.

MIS reports

Submission of required Stores information to the Management as and when asked / required.

Maintaining the monthly closing stocks data with Storage Location wise.

Review of Quality Objectives on monthly basis if applicable.

Finalizing the stores stock check reports.

Knowledge sharing to concern persons.

Authorities:

To sign on documents of Goods Receipt, Material Dispatch Challan, Stores employees leave cards.

Executive

Responsibilities:

Report work status to Manager daily basis.

Receiving the materials from sub-contractor / Vendor along with delivery challan / Invoice duly quoted with purchase order No, after gate entry.

Check the material quantity with DC/ Invoice/PO and acknowledge the receipt on suppliers copy.

If found any discrepancy, such issues are to be informed immediately to purchase dept. for resolving,

In case, to process such above discrepancy invoice, GRN to be made for bill qty, subsequently a return GRN to be generated for the material short qty and subsequently, a credit note will be issued by Accounts for vendor through SAP.

Materials handling equipment such as trolleys to be used to handle the material carefully and safely.

All the populated PCBs are to be placed in PCB storage racks / bins / antistatic poly bags to prevent damages to mounted components.

All static sensitive components must be handled in their original packing condition during storage.

Preparation of Goods Receipt, Goods Rejected, Service related and sub-contracting documents through system.




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Further, handing over the all GRNs (Goods Receipt Note) to QC for inspection along with the material.

Disposal of all GRNs after IQC acceptance, Original bills to Accounts and Duplicate invoices to Commercial Dept. etc.

Posting the material issue vouchers (MI) / Production Work Orders (PWOs) in system i.e. Data entry.

Preparation of Urgent Issue vouchers, in case of urgent requirement of the material for production, passing to QA and later on regularizing the same in system.

Responsible for carrying out the physical stock check of Stores periodically (Monthly / Qtrly / Yearly) as per management instructions.

Responsible for packing of products and its accessories is done as per packing procedure / dispatch instructions given by QC / PPC.

Proper preservation of the tested products & materials are preserved, till they are dispatched from the packing area, with proper identification label.

Delivery of the material / products etc: Forwarding of DC (Dispatch instructions) copy with DI (Dispatch instructions) to Commercial for completing the statutory obligations like excise & insurance payments. After clearance from Commercial, the stores will move packed boxes to loading area.

Authorities:

Signing of documents like Goods Receipt, Material issue vouchers, Production Work Orders.

Assistant

Responsibilities:

Responsible for material receipt and issues for all projects.

Preparation of GRNs / documentation in SAP.

On receipt of the material from QC after inspection along with GR document, material to be checked for quantity correctness and making entry in BIN card like Date , GR No. Qty & Balancing etc., before placing in appropriate location.

Issuing the material to the user / production area based on the Material Issue voucher (MI) and Production Work Order (PWO) accordingly.

Preparation of shortage list of the material against Production Work Order, which are not available in the stores and intimation to PPC.

On receipt of the shortage material at stores, the pending WOs to be reviewed and issue the shortage material accordingly to the shop floor. And make sure that no kit will be issued for production with shortages.

Preparation of Delivery Challans (RDC / NRDC) for various types of material movements as per indenters’ requirement.

In case of non-availability of SAP only, the manual DCs can be issued, based on the nature of the material movement.

Assisting during Physical check of the Stores (PCB / Projects) material on quarterly basis and submission of discrepancy report to management etc.

Inward: - On receipt of the material at inward, ensure that all the line of materials received physically as per invoice/ DC etc., Invoice should consist correct address, location, PO no. and SAP codes etc.,




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Subsequently, the invoices to be sent to Security for inward entry. After gate entry, all the invoices are to be handed over to the person who is making GRNs./ data entry in SAP.

Material offering for IQC: - On completion of GRNs, the material to be offered to QC for inspection. After completion of IQC, the said material to be placed in appropriate bins.

In case of GRN get delayed, the material can be offered for IQC on urgent Inward QC. After GRN generated, the urgent inward to be regularized.

Kittings: - On receipt of Production Work Order, material / PCB components kitting to be done after making BIN card entry and if any shortages, they are to be listed in Material (Kitting) shortage list.

Material Issues: - Materials are to be issued on receipt of Material Issue voucher duly approved by appropriate authorities after BIN card entry..

Packing: - On receipt of DI (Dispatch Instructions) from PPC / QC / Prdn, the material to be packed as per packing procedure.

Loading / unloading: - Responsible for loading / unloading the material as per Company requirement.

Documents filing:- Responsible for filing of all documents / passing Original bills to Accounts and Duplicate bills to Commercial Deptt etc.,.

Authorities:

Preparation Signing on Material Dispatch Challan, Material Issue vouchers, Production work order/ MI. and Issue signing of Material shortage details list.

Table 1: Roles, Responsibilities and Authorities

5 Process Flow Chart

Figure 2: Process Flow Chart




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6 Procedure

6.1 HANDLING & LABELING:

Material handling equipment like trolleys / Fork lifters are to be used carefully and safely while handling the material.

All the sub-assemblies involved in manufacturing of products, material from component stage to final product stage are to be handled carefully by using the handling equipment.

All static, sensitive components must be handled in their original packing condition during storage and at antistatic workstations/ area during the processing stages.

Populated PCB's are to be placed in special PCB storage racks/ bins/ anti-static polythene bags to prevent damages for mounted components.

Wherever necessary, the materials within the bins are individually packed in order to prevent damages due to physical contacts.

Labeling special handling requirements (such as hazard warnings) will be utilized as required.

6.2 STORAGE:

All incoming material from vendors/ sub-contractors/ customer is retained in original packing condition till they are accepted and ready to be taken into stores stock. Inward materials are stored in appropriate bins, racks or pallets with proper identification in stores to avoid mixing and deterioration.

PCB components and other small items are stored in polythene bags to avoid loss, mix-up and damage in the stores. All static sensitive components must be stored either in their original packing condition or in anti-static polythene bags

Consumable items with the shelf life are stored in an exclusive identified rack/ location and list of items stored with expiry date is displayed for easy periodic check/ verification.

Under process PCB's are stored in special racks/ slotted trays/ bins to avoid accidental fall and damage to components. Finished goods PCB's are put in anti-static polythene covers (each card, individually and stored in rack / carton till dispatch).

6.3 RECEIPT OF THE MATERIAL:

Material shall be received from sub-contractors/ External vendors / Internal Divisions along with delivery challan / invoices / STPOs with purchase order number and Outbound Nos, after proper gate entry. Stores inward shall check the material quantity physically with delivery challan / invoice and acknowledge the same in supplier copy.

If found any discrepancy, such issue are to be informed to purchase dept. for resolving.




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In case, to process such above discrepancy invoice, GRN to be made for bill qty, and a return GRN to be generated for the material short qty, subsequently, a credit note will be issued by Accounts for vendor through SAP. After confirmation of the physical receipt of the material by inward person, inbound delivery to be created in system (Computer) by entering the DC number, Invoice number, LR details etc. Subsequently, Goods Receipt Document (GR) shall be prepared and given to inward QC for inspection along with material. Inward QC shall enter the accepted material in the records and affix the accepted stickers to the materials before handing over to Stores.

After receipt of accepted materials, Stored in specified location and updated qty and details in to BIN CARD. On receipt of the accepted material with GRNs from QC, Original bills to be passed to Accounts and Duplicate bills to Commercial Dept. If the materials are returned from shop floor, the same are taken into stores on

“Transfer posting document” through QC department. Stores verify the Transfer posting document with the following particulars.

If any material is rejected, the same shall be kept separate with proper identification and an intimation to be sent to vendor/ sub-contractor directly or through Purchase department with a copy to PPC.

6.4 ISSUE OF MATERIAL:

The material shall be issued, against the following documents received from PPC / Indenters / Users / Production ICs etc.,

a) Against Production Work Orders:- Before issuing the material, ensure that every work order should consist WO NO., SAP codes, Description, Qty required etc., duly signed by the authorized signatory. After issuing the material, GRN No. to be quoted against each line of item. If found any component shortage, a shortage list to be prepared in duplicate. Original attach with WO and duplicate copy to PPC / production for their reference. Later, on receipt of the shortage material at stores, pending WOs to be reviewed for filling the shortages appropriately. No, kit will be issued for production with shortages. And if any extra material required for production, will be issued on Rework order.

b) Against General slip (Material Issue voucher) :- Material shall be issued on MI voucher for all consumables.

MI (Material Issue voucher) should consist name and the location of the project, material and Cost center details with Accounts approval,

For transferring from one storage location to other also, MI (Material Issue voucher) consisting of name and the location of the projects, material and Transfer locations details with Accounts approval,




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c) Against Sub Contract challan:- Material shall be issued for any job work on subcontract challan issued by the commercial deptt through sub contract PO. Process.

All related records (Bin Cards) are to be updated to show a clear picture of the materials in the stores.

6.5 ISSUE OF MATERIALS THROUGH DELIVERY CHALLAN:

NRDCs:- Non returnable delivery challan (NRDC) shall be issued through SAP system on

receipt of request from the user / sender along with material issue voucher from appropriate authority. RDCs:- Returnable delivery challan (NRDC) shall be issued through SAP system on receipt of

request from the user / sender with appropriate authority.

Only 5 DCs shall be issued through SAP per an individual (Employee ID). Subsequent DCs can be issued only on closure of previous DCs.

6.6 DISPATCH OF REJECTED MATERIALS:

On receipt of rejected material from IQC with NCR duly signed by MRB team, the GRN is to be handed over to Accounts for further action in SAP. After accounts data entry, stores will generate the rejected GRN and passed to Commercial Dept. for generating system based gate pass to the vendor. Subsequently, rejected material packed and sent on same day to the vendor under intimation to purchase dept.

6.7 RE – ACCEPTANCE OF REJECTED MATERIAL:

Freeh GR shall be prepared for the materials, which was rejected earlier, mentioning the reference of old GR document number. In case of rectification have been done at factory; mention the amount to be deducted from sub-contractors/ suppliers on GR, based on the recommendation from purchase department.

6.8 NON MOVING MATERIALS:

Ageing list for nonmoving materials are to be obtained from SAP and to be circulated to all PPC / productions areas for their information.

6.9 SCRAPPING OF THE MATERIALS:

Scrapping of the nonmoving materials from stores / production should be processed through MRB duly authorized by Engg, / Purchase / QC and Finance departments and approved by plant head.

After the above process, the scrapped materials are to be kept at allocated area for further disposal as per instructions from management.




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6.10 URGENT ISSUES:

In case of urgent requirement of the material, write in urgent/ issue slip and send for inspection to QA department, and issue the material to production and later it shall be regularized as per issue procedures.

6.11 PACKING:

Packing of products and its accessories is done according to packing procedure and as per dispatch instructions given by QA/ PPC. Ref: Packing instructions for PCBs QA department ensures that the product, as stipulated in the dispatch instruction along with the accessories, spare parts are packed and packing list is prepared. Each packed box is provided with packing slip indicating the contents of each box. The packing boxes are suitably marked with appropriate consignee address details. The box is securely sealed only after approval of packing list from QA department.

6.12 PRESERVATION:

The finished and tested products/ materials are preserved to protect from deterioration during storage till they are dispatched in the packing area with proper identification.

6.13 DELIVERY:

Stores will forward the internal DC mentioning the products and quantity, number of boxes along with dispatch instruction copy to commercial department. The delivery is as stipulated by the customer in the absence of such a stipulation the mode of transport is indicated by the sales/ marketing or commercial department. The product is delivered after completion of statutory obligation like excise payments and insurance requirements etc. Stores will move the packed boxes to loading area on clearance from commercial department.

7. Documented Information:

# Documented Information (Records) Retention

Time

Person

Responsible

Storage

location

1

Goods Receipt Doc., (EG-ST-FT-01)

3 yrs

Executive

Stores Shed

2

Return Delivery Doc., (EG-ST-FT-02).

3 yrs

Executive

3

Material Issue Voucher (against WO shortage mat.)

3 Yrs

Executive




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4 Material Dispatch Challan (RDC / NRDC) Manual

(EG-ST-FT-04) 3 yrs

Executive

5

Material (Kitting) shortage list, (EG-ST-FT-05)

3 yrs

Executive

6

Material Issue Voucher, (EG-ST-FT-06)

3 yrs

Executive

7

Urgent Inward Inspection / Issue slip (EG-ST-FT-07) 3 yrs

Executive

8

Bin Card, (EG-ST-FT-08)

3 yrs

Executive

9

Shelf life items 3 yrs

Executive

10

SAP RDC/ NRDC 3 yrs

Executive

Procedure for Handling, Storage,

Documents

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