JANA MARINE SERVICES LLC

PURCHASING DEPARTMENT

QUALITY ASSURANCE PROCEDURE

PROCEDURE NO.: PD-3-003
PURCHASING DEPARTMENT

PURCHASE OF NON-PERMANENT MATERIALS

CONTROLLED COPY
COPY No.

UNCONTROLLED COPY

Tick Copy as Controlled or Uncontrolled

Enter Copy No. If Controlled

This Procedure is the property of Jana Marine Services LLC (JMS), and the content is
confidential. This Procedure shall not be copied, reproduced or distributed in any form without the
prior written approval of the responsible JMS.

Nothing in this Procedure shall be construed as granting, to any other party or legal entity, any
rights or privileges to which they are not entitled under a signed contract between JMS and such
party or legal entity.

Issue 0

Signature
0 06-Aug-2024
Mohammed
Print Name Allan Angeles Kidwai Gauher D. Tapadar
AlSubaie

Rev. DATE Prepared by: Checked by: QA Reviewed Approved by:

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REVISION RECORD

Page Rev Date Reason for Issue

ALL 0 06-Aug-24 Initial Issue for Implementation.

Total Pages in This Procedure: 9 + Attachments

TABLE OF CONTENTS
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1 PURPOSE.................................................................................................... 4
2 SCOPE......................................................................................................... 4
3 DEFINITION................................................................................................. 4
3.1 Purchase Order (PO)................................................................................................................ 4
3.2 Goods Receipt (GR)................................................................................................................. 4
3.3 OSDR (Over, Short & Damage Receiving Report).................................................................4
3.4 NCR (Non-Conformance Report)............................................................................................. 4
3.5 Request For Quotation (RFQ).................................................................................................. 4
4 REFERENCES...............................................................................................5
5 RESPONSIBILITIES.......................................................................................5
5.1 Purchase Manager (PM)........................................................................................................... 5
5.2 Purchasing Supervisor (PS).................................................................................................... 5
5.3 Buyer......................................................................................................................................... 5
5.4 Buyer Admin............................................................................................................................. 6
5.5 Others – Please refer to PD-2-001...........................................................................................6
6 PROCEDURE................................................................................................ 6
6.2 Request for Quotation (RFQ)................................................................................................... 6
6.3 Comparative Statement (CS) / Price Evaluation Sheet (PES)...............................................7
6.4 Purchase Order (PO)................................................................................................................ 7
6.5 Expediting................................................................................................................................. 7
6.6 PO Amendment / PO Cancellation..........................................................................................7
6.7 Inspection................................................................................................................................. 8
6.8 Shipping & Custom Clearance of Imported Materials...........................................................8
6.9 Filling / Archive (Documents & Data Control)........................................................................8
7 DOCUMENTS.................................................................................................................... 9

1 PURPOSE
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The purpose of this procedure is to provide standard guideline on the Purchasing of Materials for the JMS
Construction Division Projects.

2 SCOPE

This procedure covers the process of requisition slip for purchase of materials for JMS Projects – from the time of
receipt of requisition slip for materials through the point of delivery to warehouse.

3 DEFINITION

JMS : Jana Marine Services LLC

PD : Purchasing Department
PWD : Project Warehouse Department – Site Warehouse (Tanajib)
PR : Purchase Requisition – Standard form used to requisition materials and / or service
ORACLE: JD –EDWARDS DATA APPLICATION (ERP)

1.1 Purchase Order (PO)

A contractual and biding agreement entered between Purchasing Department and Suppliers for Supply of materials
and / or services.

1.2 Goods Receipt (GR)

Document generated by Warehouse Department to evidence receipt of materials and / services from Suppliers in
conformance to purchase orders issued by PD.

1.3 OSDR (Over, Short & Damage Receiving Report)

Document raised by Warehouse Department to report discrepancies such as excess quantity / shortage or damage in
the materials supplied by the suppliers.

1.4 NCR (Non-Conformance Report)

Document used to notify discrepancies / non-conformities in the materials supplied by the suppliers.

1.5 Request For Quotation (RFQ)

Standard form used to obtain quotation from suppliers.

3.11 Comparative Statement (CS) / Price Evaluation Sheet (PES)

Standard form used for price comparison and selection of suppliers for placement of purchase order.

3.12 Draft P.O. Amendment

Standard form to outline changes required to be done in purchase orders.

4 REFERENCES

Customer’s Quality Requirements

ISO-9001-2015 : Quality Management System Requirements
JMS-QSM-001 : Corporate Quality Manual
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PD Level 2 Procedure

5 RESPONSIBILITIES

1.6 Purchase Manager (PM)

Reports to CEO

 Review Purchase Requisition received from projects and assign to concerned buyers
 Negotiations with the suppliers for better deals
 Monitor, control and measure Purchasing activities
 Provide necessary support & guidance to concerned staff and optimize staff
Productivity & creativity to ensure that Purchasing activities re carried out in an effective, efficient and systematic
manner.
 Review and sign Purchase Evaluation Sheets & Purchase Orders.
 Review of Monthly Purchase Order Report & Monthly Outstanding P.O. Report
 Works on Cost Request for Project for bidding for on-going project requirements

1.7 Purchasing Supervisor (PS)

Reports to Purchase Manager

 Review purchase requisition and assign to Buyers. (if the Buyer is stationed at project site, he will
receive the requisitions and send out inquiries.)
 Check quotations submitted by suppliers and negotiate with them for competitive pricing and
faster delivery
 Supervise, direct & guide Buyers / Staff under his charge; monitor & control their activities; and
ensure that purchasing is carried out in a most transparent, competitive and efficient manner
 Close coordination with Project Management Team, Project Controls Department, Buyers &
Suppliers; plan the procurement and achieve delivery of goods in an efficient way to meet with the Project
schedule
 Proper, constant and effective communication with all concerned parties to avoid confusion and
pre-empt stoppage of work due to unforeseen delay in the delivery of goods
 Review Materials Status Reports.

1.8 Buyer

Reports to PS

 To ensure that purchase requisition assigned to him are attended to soonest.

 If the requisition is for permanent materials, retrieve all quotations that suppliers submitted at the bid
stage, short-list them in terms of competitiveness and call the suppliers for further negotiations.
 If the materials description and / or specification stated on Requisition Slip are inaccurate /
incomplete / incorrect, or the require delivery date is not achievable, then bring the same to the attention of
Project Management in writing
 To obtain as much quotation as possible for price comparison.
 To conduct periodical market surveys and to establish business relation with direct or original
sources.
 To ensure that suppliers that he deal with are listed in JMS Approval Vendor List.
 When necessary , to transmit along with technical data for review by the end-user.
 To complete commercial evaluation of quotations and preparation of Purchase Orders.
 To monitor Purchase Orders and expedite delivery the stipulated delivery schedule.
 To keep the end-users updated on the status of their materials.
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 To arrange materials inspection at JMS or Supplier’s premises as and when specified in the
Purchase Order.
 To arrange for return of rejects materials to the supplier and to arrange replacement or re-order.
 To highlight any deficiencies observed in the operating procedure for improvement
 Update Materials Status Report and highlight any changes in the delivery schedules; and
recommend feasible alternatives should such changes pose substantial impact on the project schedules
 Resolve discrepancies in the delivered materials / goods and claim damages from the concerned
parties for any loss or damage caused.

1.9 Buyer Admin

Reports to Purchasing Supervisor / Purchase Manager

 To receive and distribute all incoming and outgoing correspondences and maintain files.
 To ensure the Purchase Requisition into the Computer System.
 To update approval status of all Purchase Orders in the system.
 To transmit Purchase Order copies to the concerned departments.
 To file and maintain Purchase Orders and supporting documents.
 To perform typing work as required.

1.10 Others – Please refer to PD-2-001

6 PROCEDURE

6.1 Purchase Requisition (PR)

1.10.1 Purchase Requisition duly approved by Project Manager is received by buyer stationed at project site.
He will retain a copy of RS and forwarded the original to PWD / PD (HQ) for recording data in to the computer
system.
1.10.2 If Buyer is not stationed at project site, PR routed to PD (HQ) through PWD.
1.10.3 Upon receipt at PD, PR will be reviewed and assigned to Buyer.
1.10.4 Photocopy of PR is passed on to Admin Buyer and original copy to Buyer.
1.10.5 Buyer Admin enters PR data into computer system.

1.11 Request for Quotation (RFQ)

1.11.1 Upon receipt of PR, buyer will complete RFQ form and sent out inquiries.
1.11.2 For overseas inquiries, RFQ form not issued, however all relevant information / clauses are clearly
states in the inquiry.
1.11.3 Suppliers information obtained from JMS Vendor List.
1.11.4 As a standard norm, a minimum of two (2) suppliers are requested to give quotation per requirement.
However, this condition is relaxed in cases of transaction with Manufacturer, Sole Agents, Authorized
Distributors of specific products. Client / end user stick to a particular specified brand, in such cases PD is
obliged to purchase that particular branded material either from Manufacturer or their authorized distributor.
Thus sole source / supplier / manufacturer can be used.

In case of emergency / urgent Procurement look for the availability of material from anyone of supplier who can
supply immediately and more flexible to accept the required formal documents as a confirmatory P.O. later on. Due
to time constraint, a single source / supplier can be used to fulfil the urgent requirement of materials. (Subjected to
P.O. shall be approved by the CEO for single source supplier).
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1.12 Comparative Statement (CS) / Price Evaluation Sheet (PES)

1.12.1 Buyer checks quotation(s) received from suppliers

1.12.2 Buyer ensures that quotations and technical data are transmitted to end-user if and when required, for
technical evaluation / client approval.
1.12.3 Suppliers called for discussion and negotiations.
1.12.4 Buyer completes Price Evaluation Sheet and put up for approval.
1.12.5 If the Buyer is stationed at site, concerned Project Manager or Project in-charge will check and sign
CS/PES. At PD (HQ), PM will check and sign CS/PES.
1.12.6 CS/PES is then sent for approval by CEO or his nominee.

1.13 Purchase Order (PO)

1.13.1 CS/PES upon approval is handed to Buyer Admin/Supply Chain Coordinator.

1.13.2 Buyer Admin prepare and prints PO in the standard format.
1.13.3 Buyer will check and sign PO.
1.13.4 PM review, sign and puts up PO for approval of, Finance Manager and CEO.
1.13.5 After approval, Document distributes PO copies to concerned parties.
1.13.6 Where advance payment is required, advance payment request is completed and forwarded to FAD for
Process.

P.O. addressed to a supplier inside Qatar is considered as Local Purchase order. The P.O. file turns over to the
concern Buyer to request advance payment / LC to FAD as per agreed term & conditions and follow up with supplier
to expedite delivery. Arrange required documents (Invoice / Delivery Note / Material Test Certificate, etc.) from
supplier and transmit to PWD for Material Receiving Report (MRR) preparation.

P.O. addressed to a supplier outside of Qatar is foreign Purchase Order. The FO P.O. file turns over to Shipping
section in PD for proper coordination with FAD to arrange payments as per agreed terms.

Coordinate and follow up with supplier for the delivery. Arrange freight forwarder / courier services to ship the
materials. Prepares payment request to FAD for custom duty. Arrange Custom Clearing Agent to clear the shipment
and deliver to JMS. Arrange required documents (Invoice / Delivery Note / Material Test Certificate, etc.) from supplier
and transmit to PWD for Material Receiving Report (MRR) preparation.

1.14 Expediting

1.14.1 Buyer constantly contacts supplier and ensure that orders are delivered on time.
1.14.2 PD Shipping Section is responsible for expediting of orders placed to overseas suppliers.
1.14.3 Changes in delivery schedule(s), if any are reported to the end user.
1.14.4 Please refer to attached Map flow the sequence of procedure for Expediting.

1.15 PO Amendment / PO Cancellation

1.15.1 Upon receipt of PO, if any or all items originally offered ex-stock, went out of stock, concerned supplier
is to notify Buyer. Buyer shall discuss with end user and decide whether or not to amend or cancel the PO and
re-order.
1.15.2 If any typographical error either in the supplier quotation or JMS PO is subsequently noticed, either in
the description / specification, quantity, unit price, total amount, delivery time, currency and / or terms &
condition, the same must be brought to the attention of buyer. Buyer shall then check and issue PO
Amendment to reflect changes as required.
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1.15.3 If supplier is unable to fulfil delivery of order for any specific reasons beyond, control, the same must
be notified to Buyer. Buyer will issue PO Cancellation.

1.15.4 If delivered products are rejected by end-user / warehouse due to non-conformity, buyer shall action to
return such items for replacement or re-order. PO Amendment or PO cancellation is to be issued in such
cases.
1.15.5 To issue PO Amendment / PO Cancellation, Buyer must complete draft P.O. Amendment /
Cancellation form and have it approval by the concerned signatories.
1.15.6 Data Entry edits records in the computer system and prepares PO Amendment / Cancellation.
1.15.7 PO Amendment will bear original PO number.
1.15.8 PO Cancellation will bear original PO number.
1.15.9 PO Amendment / Cancellation will be approved by Purchasing Manager and other concerned
signatories.
1.15.10 Buyer Admin distributes PO Amendment / Cancellation to all concerned parties.
1.15.11 Please refer to attached Map Flow to show the sequence of procedure for the Purchase of Permanent
Materials by Site Buyer, as “Attachment 01”

1.16 Inspection

1.16.1 If inspection is required at supplier’s facility, buyer shall complete request for inspection (QCD-3-001) and
schedules the inspection in coordinate with the QC Inspector and supplier. Inspection Report in the file.
1.16.2 In case pre-shipment inspection is to be conducted at foreign supplier’s facility, buyer will coordinate
with JMS Contracts Department, Supplier and Third-party Inspection Agency as appointed by JMS or Client.
1.16.3 Item that pass inspection only will be accepted.
1.16.4 If inspection is to be done at JMS facility upon delivery, PWD will complete Request for Inspection and do the
coordination. In the event any item failed, Buyer shall coordinate with supplier and ensure return &
replacement or re-order.

1.17 Shipping & Custom Clearance of Imported Materials

1.17.1 Upon receipt of shipping advice, shipping section shall cover Marine Cargo Insurance (not necessary
for CIP / CIF terms).
1.17.2 Coordinate with Shipping Line / Agents or Freight Forwarder or Cargo handling Authority at Airport and
ascertain time of cargo arrival.
1.17.3 Follow up with suppler or Freight Forwarder for submission of shipping documents.
1.17.4 Verify shipping documents.
1.17.5 Forward the documents to Customs Broker.
1.17.6 Monitor and expedite clearance of shipments from customs.
Customs or Bank Guarantee is arranged in case original shipping documents are not available at the time of customs
clearance.

1.18 Filling / Archive (Documents & Data Control)

1.18.1 PO copy together with all supporting documents kept at buyer’s custody until complete delivery is
confirmed by PWD.
1.18.2 Upon receipt of GR and complete delivery is confirmed without discrepancy (OSDR / NCR), copy of
PO with all supporting documents and GR are filed chronologically.
1.18.3 Purchase documents preserved for five (5) years.
1.18.4 Please refer to Map Flow to show the sequence of procedure for the Non-Conformance reports
received from PWD a “Attachment 03”
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1.18.5 Please refer to Map Flow to show the sequence of procedure for the OSDR received from PWD, as
“Attachment 04”
1.18.6 Further requirements as per CDC-3-001 wherever applicable.
1.18.7 See Process Mapping

(Purchase Requisition & Purchase Order Process Flow Chart)

7 DOCUMENTS

Purchase Requisition & Purchase Order Process Issue 0 Rev.1

(Process Mapping)
Purchase Requisition & Purchase Order Process Issue 0 Rev.1
(Flow Chart)
Expediting & Shipping Issue 0 Rev. 0
(Process Mapping)
Non-Conformances Issue 0 Rev. 0
(Process Mapping)
Purchase Requisition (ERP Generated) PD-4-018 (Non Editable form)
Purchase Order (ERP Generated) PD-4-005 (Non Editable form)
Purchase Order PD-4-005A (Editable form)
Price Evaluation Sheet /
Comparative Statement PD-4-008
Shipping Instructions (S/F) PD-4-010
Shipping Instructions (A/F) PD-4-011
Approved Vendor List PD-4-012
(Local Purchases)
Approved Vendor List PD-4-012B
(Foreign Purchases)
Insurance Declaration PD-4-015