TATA PROJECTS LTDSBU-Utility Services

STANDARD PROCEDURE FOR MATERIAL CONTROL AND WAREHOUSING

Procedure No.: TPL /QMD/US/ 001Rev No. & Date: 0 & 20.11.2014

1. ScopeThis Procedure covers all the materials used at utility services of water purification (RO / UF / NF) works. The purpose of this section on material control and warehousing is to define the standard procedure for receipt, checking, storing, protection and issue of materials for construction as well as to outline the administrative procedures for material control. 2. Receipt of MaterialPrior to arrival of material on site, "PO copies and advice notices / Email" or other shipping notifications will be received by the Store In charge / Production In charge. He will record the volume and nature of the shipment and assign a storage location. Upon arrival, the material is off-loaded onto the foundation or at the storage location previously determined, in the presence of one or more checkers.Whenever material arrives on site without advance notification, the Store In charge / Production In charge will (if necessary in cooperation with the Project Head), allocate storage and unloading location without any delay, to avoid demurrage on vendors transport.All truck drivers will be directed by the guards to report to the warehouse first. If material is to be unloaded at a point other than Company Central Storage the Store In charge / Production In charge will direct the trucks to the off-loading location. A Material Checker must be present during off-loading. Truck drivers delivering a large piece of equipment will be met at the gate by warehouse personnel to guide them to the designated unloading area.3. Material CheckingThe shipment must first be checked to see whether it conforms to "Packing Lists and the Marking, Shipping and Invoicing Instructions" issued to vendors by the Head Office Procurement/Shipping Department, being a part of the Purchase Order. Also the Purchase Order, Purchase Requisition plus attachments for specific instructions on loading, unloading, delivery, required official documentation, material certificates, etc., must be checked. If the shipment consists of unpacked goods, such as structural steel, pipe, etc., each bundle or piece is checked off the carrier by the Checker. The same applies to boxes, crates or other packed goods.The Checker signs for the goods that are actually received, and not necessarily those shown on the delivery document.Materials must be carefully checked as to quantity, dimensions, specification, and the condition, immediately after receipt. Before signing carrier's freight bill, the Checker should count the number of pieces received and examine for evidence of visible damage. Boxes, crates, and cartons should be carefully inspected before taking delivery. If material is received damaged or not in accordance with packing list or freight bill the delivering carrier should be requested to make inspection of damage or discrepancies, and proper notation must be made and acknowledged by carrier on original and copy of freight bill or packing list.If concealed damage is discovered at a later date, the carrier should be notified immediately and requested to make an inspection. Materials involved in any claim should be set aside and red tagged until inspection is completed and liability has been determined. The Material Checker then checks the material thoroughly against the requisition and the relevant Purchase Order to ascertain that the material meets the specifications and is correct in quantity.Upon receipt as outlined above, the material will be tagged to the extent necessary, reflecting P.O. number and item number and then stored in the allocated location.All small loose parts such as gaskets, packing rings, bolts, lubricators, gauges, gauge glasses, CPVC, UPVC Pipes and fittings, adjusting pins/keys, couplings, spare parts, etc., delivered as part of equipment, should be stored in bins in a separate location in the warehouse and clearly tagged with the item number and P.O. number of the equipment.Any drawings, material certificates, catalogues, operating instructions and manuals relating to equipment are to be marked with equipment and P.O. number and turned over to Store In charge / Production In charge for transmittal to the HO.When material arrives at site for which no Requisition or Purchase Order is available, the Material Checker reports this to the Project Head who in turn checks with the vendor, Head Office Purchasing Department, or the Field Buyer to see whether material should have been received. If in order, a Purchase Order number should be obtained.4. Daily Material Receiving Record (DMRR)The Store In charge will enter all materials received (from information on freight bills or packing lists), in a Daily Material Receiving Record DMRR immediately afterreceipt.This information should be available from hour to hour for the benefit of the production forces.5. Material Receiving Receipt (MRR)If no shortages, damages or discrepancies are found, a Material Receiving receipt (MRR) is then prepared to acknowledge the receipt of the material against the relevant Purchase Order. For materials arriving at site not covered by Requisition or Purchase Order a MRR should be made, after obtaining a Purchase Order number, with note in the remarks column "as no P.O./Requisition is available we are listing materials as delivered to site". After receipt of P.O. and requisition, material should be checked against these documents and a revised MRR issued, if required.Material receiving receipts must be issued and distributed without delay so that payment may be made and advantage can be taken of any terms of payment.For Field Purchase Orders the requisition number should be noted on the MRR. A separate MRR must be used for each shipmentTwo or more shipments from one vendor must not be combined, even if they are received the same day and are applicable to the same order. Materials from two or more packing lists must not be combined on the same MRR, even if received on the same freight bill. Generally, vendors invoice for each shipment or packing list separately and the Material Receiving receipt is needed to support each invoice.As Material Receiving receipts are made, the requisition or Purchase Order is to be marked up to reflect receipt of the material. This document is used to update the stock control system (Tally).When the material received must be inspected by a specialist before an MRR is issued, the Store In charge will send an equipment check sheet to the appropriate specialist (Pumps, Skids, Membranes, pressure Vessel, FRP Vessel, Paints, Electrical and Instrumentation etc.,). 6. Material Delivered by Third Parties When materials are delivered by a vendor to third parties (e.g. motors to pump vendors, panel mounted instruments to panel vendors etc.) the items are received on site "built together". An MRR for each separate component must be issued, e.g. one for the motor and one for the pump.7. Material CertificatesEach delivery of materials, authority and non-authority, will be accompanied by the proper material certificates.The Material Checker / FQE will check the materials against the certificates. Any discrepancies found on manufacturer's symbol, heat numbers, etc., will be notified to the Project Head immediately for action via the H.O. Inspection/Expediting Department.Under no circumstances will materials be released for production unless the correct certificate is available.8. Incoming Material Inspection Report (IMIR) (Format No- TPL-QMD-WPPDC-001)Field Quality engineer shall check all the relevant Test certificates and quantity. After completion of physical inspection FQE shall make IMIR. The IMIR contains the follows, Vendor / Supplier Name PO Number DC / Invoice Numbers Short Material Description Batch / Lot / Heat/ MTC Number Schedule /Pressure Rating Size Quantity Any other information required by contract9. Over, Short and Damage Report (Format No- TPL-QMD-WPPDC-004)In all cases of materials damaged, lost in transit, short or over shipped by vendor, notation must be made on the Material Receiving Receipt (MRR) and Over, Short and Damage Report (OS&D Report) completed by the warehouse.It is imperative that a clear cross-reference is made, i.e. Material Receiving Receipt number on Over Short and Damage Report and Over Short and Damage Report number on Material Receiving Receipt.In the remarks column of the Over Short and Damage Report, a note must be made as to the corrective action to be taken. Company Head Office Procurement/Expediting Department is responsible for this action for Head Office Purchase Orders, including update of Computerized Material History file if applicable.

10. Storage of Material at Site / YardUpon receipt, all material not directly delivered to the works or Production Shop, should be stored either in the warehouse or material yard.All small materials, instruments, electrical material, tubing, small pumps, etc., must be stored inside warehouse. Materials will not be stored directly on the ground. An under layer of wood or suitable material should be used.11. Material Request cum Issue at Site (MRIV) (Format No- TPL-QMD-WPPDC-003)All materials will be drawn from the store on a Material Requisition which must bear the signature of the authorized Supervisor or the Production in charge.Material requisitions must be checked carefully before material is issued to assure that specific allocation is given, and that subject material has not been previously issued.Whenever material has been previously issued, the Material Administrator should write on requisition: "Material already issued, see previous requisition number".Under no circumstances will material be issued from the warehouse or storage yard to labors/ Technicians without the presence of a member of Store Department and use of all required material control documents.12. out shipment of Materials Delivery Challan (DC)Materials which are shipped from the job site must be covered by a Delivery Challan.This Delivery Challan must reflect the Shipment sequence number, quantity, item number and full description of the material, together with the Purchase Order Number upon which the material was originally received.Full details of consignee's name and address, reason for the shipment and method of shipment must be given. Delivery Challan will be signed by the Store In charge / Production In charge. 13. Scrap Control and DisposalProductions In charge are responsible for seeing that economical use is made of all material with a minimum of scrap. No fittings may be modified without the permission of the Productions In charge.Scrap collection locations will be available at site. Productions In charge will be responsible for a weekly collection of scrap in their respective areas and dumping at the indicated scrap fill locations. Productions In charge and workers team shall dispose of scrap in the most economical manner and safer ways.Annexure-1: TPL-QMD-WPPDC-001-IMIR FormatAnnexure-2: TPL-QMD-WPPDC-003-MRIV FormatAnnexure-2: TPL-QMD-WPPDC-004-OS-Damage Report

PREPARED BY REVIEWED BY REVIEWED BY APPROVED BY

P. Silambarasan GSV Manikyala Rao Utility Services GVRRN Acharyulu Asst.Manager - QMD QA-Coordinator - QMD Head - QMD