A.

PLACING ORDER OF MATERIAL

1. Deriving Requirement of Material:

Following is the procedure for deriving requirement of material used in

manufacturing. There are different categories of material and the same have
different procedure for deriving requirement. Every category have got a responsible
person who is authorized to raise the requirement.

Sn Material Category Procedure Resp.

A Raw Material Requirement for these three categories will be
B Processing Material derived from respective BOM sheets after receiving Store
C Tools & Consumables production planning for the month Incharge
Maintenance
All material of this category has to be ordered as Manager /
D Repair & Maintenance
per the requirement. Development
Manager
E Others Admin

2. Creating an indent to Purchase:

After derivation of quantity of material, the store incharge will raise an indent with
particular Indent Number after getting it sanctioned by MD through mail. After
approval from MD the sanctioned purchase indent will be entered in the Indent
Tracking file.

3. Create Purchase Order:

Purchase Manager will analyse the rates and raise PO according to the indent and
update the same in the Indent Tracking File. PO should be mailed to Store, MD and
Vendor for information.

B. RECIEIVNG OF MATERIAL

1. Receipt of material at factory:

When the truck comes, it should be noted at the gate. Material should be unloaded
and placed at the allocated location.

2. Receive Documents and complete GRN

Original documents to be collected from the driver. Store Incharge should verify the
quantity of the material billed and received. An entry should be made in the GRN
Tracking File. GRN to be approved by Lab for Quality of Material and submit to
Accounts. Quality Approval to be updated on GRN Tracking File.
C. ENTERING INVOICES IN SYSTEM

1. Entering the Invoices in system

Accounts will verify the rate as per the Purchase Order and mention the Purchase
Order No on the Original Invoice. Accounts Approval also to be updated on GRN
Tracking File. No bill to be entered in the system without a referred approved
document (Purchase Order or Master Purchase Order). If there is no PO the bills
should be presented to MD for approval.

2. Verification of documents and receiving in the system

All original documents to be sent to Head Office, Agra. Approval Authorized person
checks and verifies the bills with PO mentioned on the original invoice. If the bills
are signed by MD it can be entered in the system directly.