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Purpose
a) To establish and maintain documented procedures in order to ensure that the purchased product conforms to the specified requirements.
b) To select vendors with ability to meet the specified requirements
Scope
a) This element is applicable to all material procured and subcontracted for incorporation in the final product.
6.1. General
6.1.a Purchase function in COMPANY has been divided into two segments, i.e., Purchase of Local Raw Material & Purchase of imported Raw material.
6.1.b No vendors' evaluation is carried out for retailers.
6.1.c Purchase of imported raw material, whether from customer approved / recommended vendors or otherwise, will be done by the Procurement Dept.
6.2 Evaluation of Vendor / Sub-contractor
6.2.a Evaluation of sub-contractors shall be carried out by the concerned department. This evaluation shall be documented and maintained by the concerned department. Evaluation is done for all vendors / suppliers whose products or services affect the quality of the product. This includes suppliers, Subcontractors, Transports, Calibration Agency etc.
6.2.b Basis of Vendors / Subcontractors Qualification
Vendors / Subcontractors are approved on the basis of the following :-
1. Past performance.
2. ISO 9000 certification.
3. Evaluation conducted for the assessment of:
- ability to meet the quality requirements of the product.
- production capacity to deliver on time.
- in-house QC system.
4. Approval after sample is tested and approved.
- Approval of test samples ( i.e. OK / Reject etc. ) is duly stated on the evaluation form, Purchase Order, Delivery Challan, Material Requisition Sheet, IOC or any other document which is maintained as a part of the Quality Record.
6.2.c Basis of Vendors / Subcontractors Dis-Qualification
Vendors / Subcontractors are disqualified or black listed on the basis of the following criteria :-
1. Breach of contract.
2. Inability to cater to the organizations needs.
3. Inconsistency in quality of the material received.
4. Bribery and attempt to bribe / Guilty of corruption.
5. Lack of post delivery follow-up and related support.
6.2.d The final authority to approve the vendor after the necessary evaluation shall be with the COO.
6.2.e No evaluation of customers’ preferred suppliers is carried out.
6.2.f In cases where required controls are not exercised by the manufacturer, in-house QC checks are placed to ensure that defect free material is issued.
6.2.h Monitoring Performance
1. Monitoring is carried out on a perpetual basis using the Incoming Inspection Report and the nonconformity reports ( as the case may be ).
2. Performance of the suppliers is also monitored the same way.
3. Monitoring of chemical suppliers is carried out with the help of Chemical Testing Frequency Record as well.
6.2.i Approved Vendors / Subcontractors List is maintained for all items purchased / subcontracted by COMPANY. This list will contain all relevant information such as, current status of the supplier, complete address, concerned items etc. Changes are noted on the list itself and a fresh printout is taken (i.e. list is updated) as and when a new supplier has been evaluated and approved, or when a supplier has been de-listed or black listed.
6.3 Purchasing Data
6.3.a Purchase Order . Purchase Orders are prepared by the Purchase department and is reviewed and approved by the Departmental Head to ensure completeness of information. In his absence, Purchase Officer has the authority to
approve the Purchase Orders. Retail purchases is done in cases where material in small quantities is purchased from the retail market . Delivery Challan is prepared for all purchases which is sent to the Stores along with the invoice
6.3.b Spare Parts Purchases. Basic inventory of all imported items are maintained. All parts which are not locally available or cannot be fabricated are imported only from the manufacturer of the machine directly. Performa Invoice is the source document for recording all such purchases. Other parts are purchased from the open / wholesale market on the basis of availability using the part numbers as specs, hence no vendors assessment is required.
6.3.c No purchase order is required for cash purchases or purchases made from retail outlets.
6.3.d Non production items are purchased on the basis Purchase Requisition Sheets. Name of the department raising the requisition is also stated on the Requisition Sheet.
6.3.e A Rate List for all items is maintained. The list will be updated as and when fresh rates are received. Changes are noted on the list itself and fresh printout is taken once a month and file is updated. If there is no change during the month, no monthly print out is required.
6.4 Verification of Purchased Product
6.4.a All incoming items are subject to inspection & testing by the Quality Control personnel. It is after their approval, that the items are released for the next process.
6.5 Verification at Subcontractors’ premises
6.5.a Strict inspection controls are exercised subcontractors. QAD is responsible to perpetually inspect the goods for conformance to the specified requirements and to assess the subcontractors QC system for its effectiveness.
6.5.b Visit Inspection Report is prepared for visits made by the Purchase Department regarding their visits to the subcontractor. These reports are used to assess the production status of the order, required conformance to specification and other related information.
6.6 Customers’ Verification of Subcontracted Product