Purchase and Supplier Related Process- Bought Out Parts / Job Works

Start

B. Procedure
Materials
Bought Out Parts / Job Works

HOD-Materials Received dispatch plan from --

Materials

Materials

Approved supplier, for new product

Yes

Work out the Requirement. Is existing suppliers can meet all the requirements

Yes

(For regular parts, items, material) Release schedule to approved suppliers/ supplier's on trial/ vendors & issue amendment, in case of any change in schedule

Store

HOD-Materials

No
Store

Received material as per schedule

Identify the new suppliers in case of following as applicable. a) New product development b) Capacity Constraints/ Quality problem c) Customer feed back d) Second source development

Inform to QA/R&D Centre/ Indentor for inspection Refer proc. for receipt, storage, inspection & Issue process

C
P- 2

End
HOD-Materials Get information about potential suppliers, based on the Item to be developed HOD-Materials Obtain vendor's introduction profile through letter / fax / mail

Materials

Based on the information decide whether to send supplier self evaluation check list

- Self Introduction - Contacts/ References - Yellow Pages - Journouls - Customer recommondations

Drop the supplier from Plan

End

D
HOD-Materials

C
Materials

Send vendor data cum self evaluation form to the vendor and seek information within 21 days.
HOD-Materials

Vendors to be rated on Qtrly basis. Following aspects shall be considered while rating the suppliers. a. Delivery schedule performance (Including incidents of premium freight) b. Delivered product Quality c. Customer response & Quality system adherance d. customer disruption including field returns

Based on the data provided in vendor data /

Based on the data provided in vendor data / self evaluation form decide whether to
Quality / Materials
Yes Is the performance rating complied as per set norms Yes

Conduct on site assesment Report of supplier

No

Submit A/c plan in following conditions as per set norms

Prepare site visit report & give recommendations

Received the a/c plan.

Decide whether to select or not to select the supplier

Materials/ QA

C
Is the a/c plan effective Yes P-4

No

No

Materials

Yes

Design & product Quality requirement input to supplier for their TFC
Materials

End
Materials

Communicate to supplier about the concerns & non-approval

Receipt of quotation with estimated development plan

Refer doc.No: ----- for applicable penality to suppliers for bad

End
Not Approved

Review of Quote & verification for complete understanding of product requirement

Materials

Return to supplier for necessary changing

Price Finalization by costing deptt. based on the quotation submitted by the vendor
HOD-Materials

Place trial P.O/LOI along with final controlled, part drawing / specification / all inputs required for product development
Supplier

Submission of APQP for Development of component Materials Track the development progress
Materials

Get Samples along with inspection report

Submission for inspection to QA

Yes

Submission for inspection to QA

Quality
No

QA

Are Samples OK

Decide whether to seek fresh samples

No Yes

End

QA

Supplier to submit PPAP and PSW in duplicate to QA

C
HOD-Materials/ QA

Sign PSW for approval / Not Approval

Not Approved

Approved
QA/Materals

End Decide wether to seek re-submission with CAPA incorporated

HOD Materials

Include supplier in the approved supplier / vendor list for regular supplies (for new supplier)
HOD Materials

No

Issue the Firm PO, indicating the Quality System Requirements

Yes

Audit

Quality/ Materials Prepare Audit Plan as per updated list of suppliers & inform seven working days in advance Quality

QA/Materals

Carry out audit by qualified auditors as per plan & send Audit report to vendor

Supplier part re-submission approved

Sub-Supplier

No End

Vendor to send corrective action plan against the Action Request raised in the audit
Quality

Plan follow-up audit and based on the dates mentioned in the corrective

Materials

QA/Materals

No
Is the action

Inform the sub-suppliers regarding the ineffectiveness of the action & revised target date for follow up audit

Yes Closed

Purchase and Supplier Related ProcessRaw Material

Received dispatch plan from ---Office

Work out the Requirement. Is existing suppliers can meet all the requirements

Materials No

Yes Materials Release schedule to approved suppliers & issue amendment, in case of any change in schedule

Store Received material as per schedule Store Check the quantity, colour coding, identification on the material & supplier test reports. Store Send the sample to R&D Lab for checking the composition of the material

R&D LAB Spectro analysis report of sample & comparision with the working specification. R&D LAB Material result OK NOT OK

Store
Display OK sign board on the material.

Material send back to supplier within 5 days

End A

End

HOD-Materials

Identify the new suppliers in case of following as applicable. a) Capacity Constraints/ Quality problem b) Customer feed back c) Second source development

HOD-Materials

Get information about potential suppliers, based on the Item to be developed

HOD-Materials

Obtain vendor's introduction profile through letter / fax / mail

Materials

Yes

Based on the information decide whether to send supplier self evaluation check list B

- Self Introduction - Contacts/ References - Yellow Pages - Journouls - Customer recommondations No

Drop the supplier from Plan

End

B
HOD-Materials

Send vendor data cum self evaluation form to the vendor and seek information within 21 days.

HOD-Materials

Based on the data provided in vendor data / self evaluation form decide whether to
Quality / Materials Yes

No

End

Conduct on site assesment Report of supplier

Prepare site visit report & give recommendations

HOD-Materials

Decide whether to select or not to select the supplier

No

Yes

Materials

Communicate to supplier about the concerns & non-approval

Receipt of quotation with estimated development plan

Review of Quote & verification for complete understanding of product requirement

Not Approved

Return to supplier for necessary changing

Costing deptt.

Price Finalization by costing deptt. based on the quotation submitted by the vendor

HOD-Materials

Place trial P.O/LOI along with final controlled, specification

Place trial P.O/LOI along with final controlled, specification

Materials

Get Samples along with inspection report

Submission for inspection to

Yes

Quality No

Are Samples OK

Decide whether to seek fresh samples

Yes QA

End

Supplier to submit Material report in duplicate to QA (Lab)

HOD-Materials/ QA

Sign for approval / Not Approval

Approved HOD Materials

Include supplier in the approved supplier / vendor list for regular supplies (for new supplier)
HOD Materials

Issue the Firm PO, indicating the Quality System Requirements

HOD Materials

Release schedule to approved suppliers/ supplier's on trial/ vendors & issue amendment, in case of any change in schedule
Store

Received material as per schedule

Inform to QA/R&D Centre

Material is found ok by spectro analysis , then check the colour coding of material & sotore the material ; Refer proc. No. QSP/13, for receipt, storage, inspection & Issue process.

End

Store

aterial send back to supplier days

End

Self Introduction Contacts/ References Yellow Pages Journouls Customer recommondations

e to supplier about the approval

End

Return to supplier for necessary changing

Decide whether to seek fresh samples

No

End

Purchase and Supplier Related ProcessNon Productive Items B. Procedure Start Materials Non Productive Items
(Tools, M/c & M/c parts, capital goods, consumables & stationary etc.) Indentor

Concd. Department raised the indent to

Store

Check the availability of the item in the stock

Available

Inform the Indentor

Approval of Indent by VP / MD
Store

Preparing final Indent & submit the requirement to purchase department

Purchase department to review the requirement

Approved supplier for the reqd. item available or not

Available

Material

Not Available

Raised purchase inquiry for New item on

Finalization of supplier
Material

For Imported items, opening of LC is reqd or not

No

Preparation & review of of PO

Yes

Wait for PO acknowldgement Approval of PO

Material

Inform to VP-Finance for LC

Release of Purchase Order

Release of Purchase Order

Finance Incharge

For receipt of mat, storage, inspection & issue process refer Procedure No. QSP/13 End

Opening of LC
Finance Incharge

Review the LC & inform to head