Purchasing Process Manual

(QMS-ISPL-M-PCH)

 

 

 

 

 

 

  

 

 

Version No

V20

Prepared by

 

Date

30-01-2015

 

Name

 

Ramakrishna Kosaraju

 

Signature

 

 

Date

 

30-01-2015

Copy No

 

 

Approved by

Issued to

 

 

 

Name

 

Sai Prasad Koneru

 

Signature

 

 

Date

 

30-01-2015


 

Document Amendment Record

 

A-   A-  Added, M- Modified, D- Deleted

 

Sl.No

Date

Version No

Page No

Change Mode(A/M/D)

Brief description of change

1

15-07-2002

V01

N/A

A

Initial Release

2

 

 

 

 

08-02-2003 

 

 

 

 

V02 

 

 

 

 

A

 Section 4 Terms and definitions

PC – Project Coordinator

 2

 A,M

 Section 7 Process Description

Added PC in first point.

Content modified regarding purchase.

 2

 Section 7 Process Description

 Deleted “HR & General Affairs department, then calls for quotation from various vendors.”

 2

Section 7 Process Description

Deleted “In case of window purchase (concerned department person purchasing the material), only the material/service request is maintained and the rest (like purchase order, material inspection note) are not maintained.” 

 3

Section 7.5 Evaluation of vendors/distributors/dealers

Added “Service”.

Added paragraph related to vendor.

3

25-07-2003

V03

2

A

Section 7 Process description,

Included the description of the limit of the amount of a purchased material for the evaluation of the quotations and also for the window purchase of the materials.

4

3

A

In Section 9 Records

Included the reference of the Quotation evaluation form (QMS-ISPL-F-QEF)

5

21-01-2004

V04

2

M

In Section 7 Process description, deleted the existing  paragraphs and amended the process by elaborating it for existing and non existing vendors.

6

21-08-2004

V05

3

M

In Section 7.5 amended the process for ensuring the inspection of material received.

7

06-03-2006

V06

3

A

In section 9 Records

In the Evaluation of vendors/distributors/dealers form "Date of evaluation " is added.

8

16-07-2008

V07

N/A

A

1)In Section 7.2 Added  line about Purchase Tracker

2)In section 9 Records Added purchase Tracker and Approved  Vendor's List

9

06-06-2012

V07

N/A

D

The Company address information is removed from the Footer

10

06-07-2012

V08

6

M

In Section 7.2

The window purchase or normal purchase is done for an amount less than Rs. 5,000/- is modified to Rs. 10,000/- and Quotation evaluation form is maintained for a purchase exceeding from an amount of Rs. 20,000/- is modified to Rs. 25,000/- though an approved vendor is available

11

30-01-2015

V20

N/A

N/A

Reviewed and base lined

 


 

Table of Contents

 

1     Purpose

2     Objective

3     Scope

4     Terms and definitions

5     Entry criteria, Input, Activity, Output, Exit criteria.........................................

6     Responsibility

7     Process description

7.1         Purchasing request

7.2         Purchase Process

7.3         Approved vendors

7.4         Purchasing data................................................................................

7.5         Verification of purchased material

7.6         Evaluation of vendors/distributors/dealers

8     Quality system documents referred

9     Records

 


1       Purpose

To document and maintain a process for purchasing activity in the Inooga Solutions.

2       Objective

To ensure that purchased materials or services meet specified requirements.

3       Scope

This process is applicable to purchased materials or services, which are required for software development and maintenance of infrastructure activities.

4       Terms and definitions

Abbreviations/Terms

Description

ISPL

Inooga Solutions Private Limited

QMS

Quality Management System

CEO

Chief Executive Officer

CTO

Chief Technology Officer

HR & HOD

Human Resource & Head of the Department

PC

Project Coordinator

5       Entry criteria, Input, Activity, Output, Exit criteria

Sl.No

Entry criteria

Input

Activity

Output

Exit criteria

 

1

Need for purchase

Request from the user department

Material/service request

Approval of Material/service request form

Handover to HR & General Affairs department

2

Material to be purchased

Approval of Material/service request form

Getting the quotations from vendors

Quotations

Finalization of vendor

3

Approved vendor

Approved quotation

Purchasing

Purchase order

Purchase order placed on the Vendors/ Distributors/ Dealers

4

Material/ service supplied

Inspection criteria

Inspection of purchased material/ services

Material inspection form

Inspection completed and delivered to user department

5

Need to evaluate Vendors/ Distributors/Dealers

Data and response collected from the Vendors/ Distributors/Dealers

Evaluation of  Vendors / Distributors / Dealers

Evaluation report

Completion of Evaluation

6       Responsibility

 

Sl.No

Activity

Responsibility

1

Evaluation of vendors

HR & General Affairs Department

2

Purchasing

HR & General Affairs Department

3

Inspection of purchased material / services

User department

 

7      Process description

The purchasing process in Inooga Solutions is as follows:

7.1 Purchasing request

The employee requesting for purchase fills the material/service request form and takes the necessary approvals (CEO/CTO/Manager) and submits the same to HR & General Affairs department.

7.2 Purchase Process

Purchase process is of two types –

 

Once after receiving the approved material/service request form, the HR & General Affairs department head decides whether it can be a window purchase or normal purchase for an amount less than Rs. 10,000/-. If window purchase, then the concerned department person purchases the material and the following two are not applicable –

·               Quotations

·               Purchase Order

 

Normal purchase –

 

Case I:  If there is an existing approved vendor then the requested material is purchased from the approved vendor.

 

Case II. If there is no approved vendor for the requested material then HR & General Affairs department calls for quotation from various vendors and the process is as follows –

 

·              The quotations are evaluated based on the discussions made by HR & General Affairs department head with the vendor and the purchase order is issued to the approved vendor.

 

Quotation evaluation form is maintained for a purchase exceeding Rs. 25,000/-, though an approved vendor is available.

Contract – If there is a frequent usage of material, then the approved vendor would be given the contract for a period of six months from the date of contract signed. 

·               In such case, the material/service request form itself becomes the purchase order and the indent no., date on material/service request form is treated as purchase order no. and date respectively.

·               Using the vendor evaluation form (QMS-ISPL-F-EVD) the contract is evaluated and revised after a period of six months from the date of contract signed.

       The entire purchase process can be tracked through the Purchase Tracker QMS-ISPL-R-PT

7.3      Approved vendors

Vendors are selected based on their past performance, their ability to meet Inooga Solutions quality requirements and customer preferences. A list of all such qualified vendors is maintained. Quotation from the approved vendors is maintained.

7.4      Purchasing data

Specifications relating to the material to be purchased are documented as a purchase order. This may include technical specifications, versions and number of copies required.

7.5      Verification of purchased material

The purchased goods are accepted after inspection for conformity with specifications. The results of such inspections/tests are recorded using the material inspection note form. The purchased goods are handed over to the respective user department only after the inspection/test by the concerned person as recorded in the material inspection note form. In case of any non-conformity, the vendor is notified either by phone/email.

7.6      Evaluation of vendors/distributors/dealers

Vendors are evaluated annually on the following parameters:

Ø                     On-time delivery

Ø                     Percentage of the deliveries without non-conformances

Ø                     Service

 

Once after completion of the evaluation, if found, that the delivery, quality and service are not meeting Inooga Solutions expectations, then the approved vendor is deleted from the list of qualified vendors and quotations are called from other vendors. Records of such evaluation are maintained.

8       Quality system documents referred

Nil.

9       Records

Sl. No

Required Record

Custodian

Retention Period

Record ID

1.

Material/service request form

HR & General Affairs department

1 year

QMS-ISPL-F-MSR

2.

Material inspection note

HR & General Affairs department

1 year

QMS-ISPL-F-MIN

3.

Evaluation of vendors/distributors/dealers

HR & General Affairs department

1 year

QMS-ISPL-F-EVD

4.

Quotation evaluation form

HR & General Affairs department

1 year

QMS-ISPL-F-QEF

5.

Purchase Tracker

HR & General Affairs department

1 year

QMS-ISPL-R-PT

6.

Approved Vendors List

HR & General Affairs department

1 year

QMS-ISPL-R-AVL