CENTURION POWER CABLES (P) LTD.

STANDARD OPERATING No. PUR./SOP-07

PROCEDURE
PURCHASING Revision No. 01 Date 05.08.2012
Issue No. 02 Date 01.06.2009

1.0 PURPOSE

To evolve procedure for evaluation and selection of supplier based on their ability to
meet Quality System requirements of Ess kay Fabricators to specify and steps to be
taken to initiate purchasing action.

2.0 SCOPE

Applicable to

a) RM Purchase
b) Machinery spares
c) Supplier sub-contract /packing material purchase
d) Transporter/Consumables Purchase
e) Maintenance and calibration services.
f) Other Service providers

3.0 RESPONSIBILITY

Purchase incharge.

4.0 PROCEDURE DETAILS

Sr. Activity Resp. Ref. Doc.

No.
4.1 EVALUATION AND SELECTION OF SUPPLIER

4.1.1 Purchasing department on regular basis may receive the

enquiries from different suppliers for different materials
and communicates is made directly by purchasing
department.
4.1.2 As the new enquiry is received from New supplier than
initially “Supplier selection questionnaire” is send to
supplier for updating their Technical and Financial
informations.

4.1.3 The supplier evaluated and selected by one of the

following methods.

Approved By : Prepared By:

Managing Director MR
 METHOD A: On-site evaluation of supplier and their
Quality System.
METHOD B: Past History with similar supplies.
METHOD C: Experience of other users.

Method A: On-site evaluation of supplier and other

Quality system

In this method supplier evaluation is done jointly by

Purchase Incharge / Quality Incharge or their
representative. During the visit the supplier facilities and
Quality Systems are examined. Results of the assessment
are reported on “Supplier Audit Checklist”. Form No:
F/PUR/02. when the result of the evaluation is
satisfactory, the supplier will be included in the approved
Supplier list. This method is followed only for process
activity.
Method B: Past history with similar supplies

In this method Purchase department will verify that the

identified supplier has supplied similar items in the past.
After verification, purchase department seek approval by
Quality Incharge. If he approves the item, the supplier is
included in the approved supplier list.

Method C: Experience of other users

In this method suppliers are selected by purchase

department based on their reputation (Ex Branded items)
(or) Experience of other users, such suppliers will be
included in the approved Supplier list.
4.1.4 Table below shows the method to be followed in respects
of product & process

Sl.No Product/Process Method to be

Followed
Raw material
1 A
Purchase
2 Consumables B or C

3 Machinery Spares B or C

4 Service Provider B or C

4.1.5 APPROVED SUPPLIERS LISTING

Approved By : Prepared By:
Managing Director MR
 The “Approved supplier list” F/PUR/03 is maintained by
Purchase Incharge. Any addition / deletion to the list of
approved supplier is to be authorised by QC Manager
/MD
4.2 MONITORING OF SUPPLIERS
4.2.1 Supplier appraisal / Monitoring of Supplier
Supplier rating is done once in three months in the form
no. F/PUR/04 SUPPLIER RATING FORM to monitor
the performance of the supplier for both quality and
delivery time. Quality rating will be calculated for 50%
and Delivery rating for 50%. The formula for supplier
rating is as detailed in the form F/PUR/04.
4.2.2 Supplier for special processes

No special process involved in our system. Hence this

clause is not applicable.

4.2.3 Supplier processes / activity

The following controls are to be exercised on supplier
who carries out subcontract activity. The selection of
supplier shall be by method ‘A’. The technical
requirement will be communicated through Purchase
Order F/PUR/05 (or) in a separate technical requirement
in controlled status. If there is a revision to technical
requirement, revised requirement will be sent to supplier
4.2.4 CUSTOMERS VERIFICATION AT SUPPLIER END
As and when required, if customers demands for
verification of supplier premises than suitable
arrangement to be made to arrange the customers visits
at supplier premises. Esskay will initially define such
condition in purchase order that if required than supplier
will have to demonstrate the process to customers.
4.3 De-listing of supplier
4.3.1 In the event of supplier rating of all items falling below
80% (for both Quality and Quantity rating), purchase
department will communicate to the supplier concerned
regarding the rating and advise them to improve the
performance. Where appropriate, purchase department
will decide on inviting the supplier for discussion.
4.3.2
In the event of supplier rating of an item falling below 80% for
consecutively 3 times, supplier will be de-listed for the

Approved By : Prepared By:

Managing Director MR
 particular item in the form no F/PUR/04
4.3.3 There will be no supplier rating for consumable items
and machinery spares. Based on quality complaints
raised by the user department, the purchase department
will inform the supplier to take corrective action. If
quality problem persists inspite of the advice, the
supplier will be de-listed.
4.3.4 In respect of single source supplier the de-listing may not
be possible. In such case sorting or reworking of the
materials will be carried out to ensure conformance
4.3.5 REAPPROVAL OF SUPPLIERS
The delisted supplier may be considered for re-approval
for a particular item under the following condition only.
The supplier should take corrective action and submit a
report.

The adequacy of the corrective action is to be scrutinized

and accepted by Quality Manager.
4.4 PURCHASING PROCESS / ACTION
4.4.1 Purchasing requirements are communicated to purchasing
department through following ways :
4.4.1 Format “MATERIAL REQUIREMENT – AS PER THE
(A) WEEKLY / MONTHLY SCHEDULE FROM THE
PRODUCATION DEPT.” is received at purchasing
department.
4.4.1 Store Incharge reviews the stock level on daily basis and
(B) checks that if material is reached below inventory level than
Indent is raised by store department to purchase depart for
purchasing the material.
4.4.2 Purchase order in the form of F/PUR/05 is made with
approved supplier.
4.4.3 Amendment to purchase orders are to be issued to
supplier where required. The amendment to purchase
order will be reviewed by Purchase Manager.
Amended purchase order and original purchase order are
maintained.
4.5 MACHINERY SPARES FOR PREVENTIVE
MAINTENANCE
4.5.1 Based on the requirement order for machinery spares
will be raised on original manufacturer of the equipment
as and when required.
4.6 CONSUMABLE ITEM
Approved By : Prepared By:
Managing Director MR
4.6.1 Based on the requirement consumable items are procured
by the Purchase Incharge. There will be no supplier
rating for consumables.
4.7 EMERGENCY PURCHASE
4.7.1 To meet emergencies such as supply failure by the
approved supplier, procurement can be made from the
supplier who is not in the approved supplier list. This
will be authorized by MD/Director of Operations/GM.

5.0 REFERENCE

5.1 Quality Manual

5.2 Procedure for Control of Purchasing
5.3 Procedure for Control of Records

6.0 RECORDS

6.1 Approved Supplier List Pur./F-1/7.4

6.2 Purchase Order Pur./F-2/7.4
6.3 Supplier Evaluation Pur./F-3/7.4

Approved By : Prepared By:

Managing Director MR