Sample Procedure:

The Widget Company

Operating Procedure
Title: Purchasing No. XX Approved by: Rev. A Little Johnny Date 6-15-04

SCOPE: This procedure applies to materials and services purchased by The Widget Company from outside suppliers that affect the quality of the products sold to the Widget Company customers. 1.0 PURCHASING REQUIREMENT Purchasing requirements are identified for Purchasing in the following ways: - Computer generated requirement report - the Widget Company personnel notify purchasing that a requirement exists 2.0 PURCHASE FROM APPROVED SUPPLIER LIST Purchasing checks the approved supplier list for a supplier to place the P.O. (purchase order) with. 3.0 APPROVED SUPPLIER EXIST ? No - go to 3.1 Yes - go to 4.0 SOURCE SUPPLIER A supplier is sourced in accordance with the Widget Company supplier control procedure. 4.0 ISSUE P.O. TO SUPPLIER Purchase orders shall contain all necessary purchasing information to clearly communicate all requirements to the supplier. Purchasing information shall include the following, as necessary: Procurement specifications Quantity Certification requirements Price FOB point-freight charge Quality system which applies (ISO 9000, MIL std, etc.) Packaging / shipping requirements Provision for Acme verification of purchased product Expected delivery date

3.1

If the purchased product is a standard item with the supplier, communication of the suppliers part number is sufficient purchasing information. A purchase order may be delivered to the supplier by phone, fax, mail or EDI. Each buyer reviews and approves their purchase orders prior to release to suppliers. 5.0 RECEIVE MATERIAL

Material is received in accordance the Widget Company receiving inspection and testing procedure 6.0 ACCEPTABLE ? No - go to 6.1 Yes - go to 7.0 NOTIFY PURCHASING Receiving notifies Purchasing that damage or a discrepancy exists. Receiving notes the problem on the receiving documents and sends the documents to Purchasing. 6.2 NOTIFY RESPONSIBLE PARTY The responsible party (shipper or supplier) is notified that damage or a discrepancy exists. 7.0 RELEASE MATERIAL The material is released to stock Notes: 1. In the event that an emergency situation arises for materials or services that cannot be supplied by an approved supplier, Purchasing has the authority to place orders with a supplier not on the approved supplier list for a period of thirty (30) days. 2. In the event that the Widget Company or the customer wants to verify the quality of product at the suppliers location, it shall be stated in purchasing documents.

6.1

End of Document