REF NO GA/PP/01

PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00

DATE 01.01.2018

1.0 PURPOSE:
To describe the procedure for the activities to be followed in purchasing, purchasing the new items from
the existing or new External Provider or subcontractor & evaluation, selection and periodically
monitoring the performance of External Providers / subcontractors.

2.0 SCOPE:
For all raw materials/raw casting which affect final product quality, molding, Core shop, fettling,
machine shop, melting, new item, New Pattern, all materials which play a major role in shop floor as
mentioned in the list Approved External Provider and all Outsourced activity and service agencies.

3.0 RESPONSIBILITY:
CEO
Purchase Officer
Stores I/C
Lab I/C

4.0 PROCEDURE:

4.1 CEO will calculate the procurement Qty. based on the monthly customer requirements
(tonnage) , Stock of Raw Materials and Minimum & Maximum Inventory levels to plan for raw
material.

4.2 CEO/Store in charge will maintain the list of approved External Providers (as per list
No.PUR/L/01). He shall arrange to prepare the P.O. (Format No.PUR/F/02) or 57 F(4) challan on
the approved vendor/ External Providers. The P.O. or 57 F (4) challan shall include the following
data as appropriate.

a) Description of the item, operation to be carried out reference of the applicable

specification and its revision status, final inspection report (Quality plan no.)
b) Requirement of test certificate, if applicable.
c) Verification at vendor's premises by our representative / customer's representative, if
required.
d) Quantity, price, delivery and other commercial terms.
e) Validity period.

4.3 CEO shall review the above all details for correctness and approve the same.

4.4 Purchase Officer shall ensure the availability of latest revisions of documents (material
specifications) with the External Provider / subcontractor.

4.5 Purchase Officer/ Store I/c shall be responsible for follow-up activities till the material is
received.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

5.0 NEW PURCHASE ORDER:

Purchase order shall be done in the following cases:

5.1 When there is a price revision requested by the External Provider or subcontractor, CEO shall
authorize the same.
5.2 When there is a technical specification change leading to price revision:
CEO in discussion with Production shall authorize and issue the fresh purchase order.

6.0 New Purchase Items

6.1 For any purchase / subcontract of new pattern / casting, CEO/ Production Manager shall identify
the External Provider / subcontractor.

6.2 For other raw material, CEO/ purchase officer/ QC I/C /Production Manager shall identify the
External Provider.

6.3 After receipt of purchase order, CEO will issue the drawing or patterns or specification to
External Provider or subcontractor as appropriate & requesting the quotation from them.

6.4 After receipt of quotation from External Provider, CEO will review the same and negotiate with
the External Provider for finalizing the order.

6.5 After finalizing the price, purchase officer will release the P.O. or 57 F (4) challan

6.6 In case of raw material and Casting, trail order will be raised along with following
purchasing data.
a) Specification or drawing reference with revision no.
b) Qty.
c) Price
d) Delivery Date
e) Test certificate requirement.

6.7 Concern person will follow up for getting material.

6.8 Store in charge will receive the material and informed to purchase dept. / Q.C. Dept. For any scrap
received Radiation level test will be done for each supply.

6.9 Q.C. Dept. shall inspect the material, casting, pattern as per the Quality plan.

6.10 Based on the comment from Q.C. Dept., CEO. Will decide whether to place further trial sample or
not. Concern person will inform any corrective action to be taken by the External Provider or
subcontractor.

6.11 Further samples shall be received and inspected and if it is accepted, External Provider or
subcontractor will be approved for supplying the raw material/casting/machining of casting.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

6.12 Purchase officer will update the List of Approved External Provider.

6.13 If any of the External Provider or subcontractor is not approved for the samples, the new External
Provider or subcontractor will be identified and evaluated.

7.0 Selection and Evaluation of External Providers

7.1 Purchase /Store In-charge shall be primarily responsible for new External Provider Evaluation
PUR/F/01.

7.2 The need for selection of new External Provider / sub contractor shall be identified by Production I/C
and inform to CEO orally.

7.3 Selection of new External Provider / sub contractors is to be done under the following case

7.4 For developing a new item for which existing External Provider / sub contractors do not have the
capability.

7.5 More requirements from our Customer where present External Provider cannot fulfill as per our
requirement.

7.6 For developing alternate sources for an existing item. (Can be in terms of Quality)

7.7 Based on the periodical performance monitoring the External Provider rated below 80% for 3
consecutive supply.

8.0 Evaluation and selection of new External Provider / subcontractors .

8.1 The new External Provider / subcontractor shall be identified based on one or more of the
following.
 Customer recommended External Provider / subcontractor.
 Based on recommendations from the Known personnel / Reputation in market.

8.2 Purchase officer/ store I/C is to issue and ask External Provider to fill up the External Provider
Evaluation/Re-evaluation Form (AFC/PUR/F/01) to new External Providers. He shall also give
necessary specifications to External Provider/subcontractor/vendor.

8.3 Purchase I/C/ Store I/C is to receive the duly filled External Provider Evaluation /Re-evaluation form
along with quotation from the External Provider/subcontractor and forward it to Managing partner.

8.4 CEO shall review the External Provider Evaluation Form and Quotation for the information furnished
by the External Provider/subcontractor.

8.5 External Provider Evaluation/Re-evaluation form will be reviewed for the Commercial aspects &
technical capability of the External Provider.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

8.6 With the review comments of the CEO, it will be decided the need for trial order and inform to
purchase Officer.

8.7 Purchase Officer/Store I/c shall raise the P.O. He shall mention the specification and details. of the
items required.

8.8 Upon receipt of the item inspection shall be carried out by Q.C. Personnel as per IQP if rejected the
further sample shall be asked to supply.

8.9 Next 2 orders shall be treated as trail orders. The details of these trails will be recorded in Trail Order
Register [PUR/R/03]. Based on these 2 order status the CEO shall decide to include the name in the
List of Approved External Providers or not.

8.10 If the supply is rejected the record will be maintained. If in further the same External
Provider/subcontractors/vendor approached, the above procedure of evaluated based on the
Guidelines for the minimum requirements will be carried out.

9.0 Type & extent of control exercised over the External Providers/subcontractors:

Type & extent of control exercised over the External Providers/subcontractors is to be specified
for each of the product supplied by them and the same is to be mentioned in the approved list.
This control is to be exercised based on the periodical monitoring system (External Provider
Rating system) described below.

 The service agencies like Pattern Maker, transporters, calibration agencies, training facilities,
test centers/agencies; consultants are based on their reputation in the field in this area and
validity of applicable certifications. These service agencies are not subjected to periodic rating.

 External Provider Performance in terms of Quality and Delivery rating will be Carried out For
Major External Providers [Mentioned in the List of Approved External Providers] Only,

10.0 Procedure for periodically monitoring the performance of External Providers/subcontractors.

 For the purpose of the system, all the existing External Providers and subcontractors as
on the system effective date are reviewed for the performance and the External
Providers are included in the List of Approved External Provider PUR/L/01.

 This system takes into consideration both the quality and delivery of supplies for
evaluation. The rating is done on monthly basis.

 The weightage given for quality and delivery factors shall be as follows:

 Quality 100 points

 Delivery 100 points.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

QUALITY RATING: Quality rating shall be calculated as follows

Where,
Q.R. [%] = Q1 X 100 Q1 - Quantity supplied
Q Q= Quantity accepted (ok qty)

DELIVERY RATING: Delivery rating shall be calculated as follows

Where,
D.R.[%] = Q2 X 100 Q2 - Qty. supplied within schedule time
Q Q - P.O Quantity

OVERALL RATING: Overall rating shall be calculated as follows

OVERALL RATING [%] = QR + DR

2

Rating guidance scale as follows:

Rating Grade Rating Scale Rating Category

A 100 Excellent
B 95 - 99 Very Good
C 90 - 94 Good
D 85 - 89 Average
E 80 - 84 Poor - Needs investigation

If the External Provider does not improve after two consecutive advices then the step will be taken to locate
alternative sources. In case of multiple source items, If the rating of External Providers falls below 80 for three
consecutive periods the External Provider will be disqualified. And will be removed from the List of Approved
External Provider.

 Purchase Officer or Store I/C shall compute the ratings as per defined frequency and
CEO shall approve the rating for each External Provider / sub contractor/ vendor for every item supplied and
the same is to be informed to the External Provider. The necessary corrective actions / improvements taken
is to be informed.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

 In case no supply made during the period No External Provider rating to be issued.
11.0 External Provider’s re-evaluation will be carried out in following conditions

11.1 Whenever External Provider rating is below 80% consecutively 2times External Provider will be
reevaluated as per point number 8.0 & 9.0.
11.2 Whenever new grade of casting or material is to be purchased External Provider will be
reevaluated as per point number 8.0.
11.3 Once in 3 years the approved External Providers will be reevaluated by sending the evaluation form
and by checking the information provided in the form if any changes observed in technical
specification sample trails will be taken as per point number 8.0. OR Re-evaluation will be done by
discussing & updating the quality department & Purchase department comments & past
performance.

12.0 External Provider’s needs & expectations.

12.1 External Provider needs & expectations are been updated in List of Approved External Providers.
And all details are been updated as per their expectations.

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

Purpose:

Material Buying From Unapproved External Provider or Usage of Material without Instruction

Scope:

Applicable When Emergency Buying Of Materials from Unapproved External Providers

Responsibility:

PURCHASE OFFICER.
STORE IN CHARGE

Description:

1. Whenever buying from Unapproved External Provider is required, can be done, or material can be
accepted without instruction for emergency requirement.

2. But all such product bought from unapproved external provider or accepted without instructions; falls
under positive recall.

3. This is to be mentioned on P.O of that materials [“Emergency Buying, Unapproved External Provider”]
also proposed usage of product. Emergency purchase from unapproved supplier should be informed to
user department ,so that in case of non-conformance in such product , the material can be withdrawn
from the point of usage

4. All such purchase orders must have approved by authorities.

5.0 DOCUEMNT / RECORD REFERENCES:

5.1 LIST OF APPROVED EXTERNAL PROVIDERS

5.2 PURCHASE ORDER
5.3 EXTERNAL PROVIDER EVALUATION FORM
5.4 EXTERNAL PROVIDER RATING TRAIL ORDER REGISTER

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

DOCUMENT/
RESPONSIBILITY FREQUENCY CROSS-
REFERENCE

Purchase officer In ward stock

ON RECEIPT OF RAW As & When
/ MP Report
MATERIAL OFFER FROM
EXTERNAL PROVIDER External
Purchase officer Provider
NOT OK As & When
/ MP Evaluation Form
EXTERNAL REJECT EXTERNAL PROVIDER PUR/F/01
PROVIDER & SEARCH FOR ANOTHER
EVALUATION
OK Purchase officer
As & When Offer letter
/ MP
REVIEW THE OFFER AND NOT OK
REGRATE THE OFFER
CHECK THE SAMPLE Quotation &
Purchase officer Evaluation Form
OK NOT OK As & When
/ MP Assessment
APPROVE EXTERNAL REJECT EXTERNAL
PROVIDER PROVIDER & SEARCH
OK FOR ANOTHER
Purchase officer
As & When P.O./Verbal
SOURCE / Store I/C
ISSUE PURCHASE ORDER Order
TO EXTERNAL PROVIDER
STORE I/C As & When Party Invoice /
D.C.
MATERIAL RECEIPT FROM
EXTERNAL PROVIDER
Material Inward
Register
STORE I/C STR/F/01
INWARD AT SECURITY & As & When
STORE THROUGH INWARD
Stock Register
REGISTER STR/F/02
Inward Register
SAF/R/03 OK

NOT OK
RECEIVING REJECT & RETURN TO
INSPECTION EXTERNAL PROVIDER STORE I/C As & When P.O/ Party Bill

External NOT OK
EXTERNAL Provider
REGRATE THE Purchase Officer
PROVIDER
EXTERNAL PROVIDER
Monthly Performance
RATING / STORE I/C
Basis Rating
(Quality +
PUR/F/03
Delivery) OK

CONTINUE SUPPLY FROM Purchase Officer

As & When Purchase
EXTERNAL PROVIDER / STORE I/C
Schedule

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

Inwarding raw material & testing at AFC:

1) In warding Raw material related to melting:- (CRC scrap, pig iron, MS)
a) Once the material received at gate, Vehicle driver will inform to security, Security will inform to
store I/C.
b) Once the intimation received at store, Store I/C will intimate to Lab I/C.
c) Take the radiation meter (Calibrated) & Collect the sample from the vehicle.(2Nos. of samples)
d) During collecting the 2nos. of sample check the radioactivity of the sample i.e. Max 0.4μSv/h
e) If the material is radioactive (We have required non radioactive material) Found then reject the
material outside of the gate only. (By informing Melting I/C)
f) If the material is long in length & heavy in weight then cut it into small pieces.
g) If the material is non radioactive then take the sample & Start testing in Spectro lab.
h) Do polishing to the sample. Surface should be clean & finish should be proper.
i) Then polished sample keep it on Spectro machine to verify the chemical composition.
j) If the material composition within the range (As per AFC inward raw material QP) then intimate to
Melting I/C.
k) Then Lab I/C will intimate to Store I/C to accept the material, Unload the vehicle at designated area.
l) If the material composition not within the range (As per AFC inward raw material QP) then intimate
to Melting I/C & Reject the whole lot.
m) In this case intimate to vehicle driver & Write official mail to supplier. (Material is rejected, Replace
it )
n) Accepted/Rejected material results should be updated in the Inward raw material register.

In warding raw material & testing at GAPL:

2) In warding raw material related to overall production:- (Mold paint, Sand, Lustrous, Graphite Paint,
Zircon paint)
a) Once the material received at gate, Vehicle driver will inform to security, Security will inform to
store I/C.
b) Once the intimation received at store, Store I/C will intimate to Lab I/C.
c) Lab I/C personally will go near the vehicle, Collect the required sample from the vehicle.(In case of
sand 1Bag & In case of paint 1 Container)
d) Once the sample received Lab I/C will conduct a test.
e) If the testing results are matching with our inward raw material QP then intimate to concerns.
f) Coordinate with store I/C & Accepted material should go in designated storage area.
g) If the testing results are not matching with our inward raw material QP then reject the material.
h) The same results communicate with related concerns. Then coordinate with Store I/C.
i) Store I/C will intimate to vehicle driver material is not accepted.
j) For non-accepted material write official mail to supplier to accept the return material/Replace it.

NOTE:

PREPARED BY PUR OFFICER: APPROVED BY CEO:

 REF NO GA/PP/01
PROCESS SYSTEM FOR PURCHASING PROCEDURE REV NO 00
DATE 01.01.2018

1. After 3 successive chances, if external provider is not giving material as per required quality
then supplier selection process will be stopped for that external provider.
2. The external provider shall be asked for plan for improvement for rating below 80%. If the
external provider rating not improved for next 3 months / supply or for any major problem
at customer end, he shall be disqualified and again re-evaluation will be done.
3. After Inspection & Inward material , If material rejected it should be recorded in inward raw
material inspection register & To be mentioned in the remark column of store inward register
& It should be outward through security out ward register.
4. If material is accepted, It should be recorded in Incoming Raw material register & to be
updated in the stock register.

PREPARED BY PUR OFFICER: APPROVED BY CEO: