Business Review Committee

Standard Operating Procedure

Introduction

The Business Review committee is fundamental body to direct and control the organization
function.

It includes relationships between and accountability of the organization’s stakeholders, as

well as the laws, policies, procedures, practices, standards, and principles which may affect
the organization’s direction and control.

It also includes reviewing the organization’s practices and policies in regard to the ethical
standards and principles, as well as the organization’s compliance with its own code of
conduct.

The Business Review committee shall

(a) To review and make necessary alteration of Yearly Sales Budget on Monthly Basis.
(b) To ensure adherence of SOPs.
(c) To Review the KEY reports & KPIs in relation to Planning, Production &
Procurement function.

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 (d) Review the Internal Audit report and ensure the adherence as per
recommendations.
(e) Monitor the effectiveness of the company's internal control, SOP’s and risk
management systems.
(f) Monitor and ensure the policies, Procedures and practices of all departments.

The Business Review committee would provide the board of directors with necessary
advices and recommendations, on a monthly basis, which include ensuring the following :

 Relevance
 Transparency
 Consistency
 Comparability
 Reliability
 Completeness
 Adherence

Specific Responsibilities

The roles and responsibilities of the Business Review Committee should include
monitoring the below departments processing, KPI’s, decision making and Reporting.

Sales & Marketing department key metrics, Processing & KPI’s

Below are the KPI’s of Sales & Marketing department

 Orders from DESCOs & Private Sector: To get orders from both sectors.

 Master yearly budget plan: Plan the total projected sales for the year.

 Monthly budget plan: Plan total confirmed and projected sales for the month.

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  Order for production: Conveying prescribed plan to production department.

 Order tracking form: To track the completion level of order.

 Comparison: To prepare a form for Actual and Budgeted sales comparison.

 Dispatch: Making sure that order is dispatched in time (when production

completed)

 Delivery & payment tracking: Track the dispatched goods whether delivered or not

then track the payment to be received for sale and ensure timely receiving of

payments.

Reporting

 Sales & Marketing department will prepare a master yearly sales budget plan report

refer as annexure TF-MP-001

 Sales & Marketing department will prepare a form containing monthly confirmed

and projected sales order quantity (KVA wise) refer as annexure TF-MP-002

 Sales & Marketing department will prepare an order tracking form refer as

annexure TF-MP-003

 Sales & Marketing department will prepare Actual and Budgeted sales comparison

form refer as annexure TF-MP-004

 Sales & Marketing department will prepare delivery and payment tracking form

refer as annexure TF-MP-005

Planning & Production department key metrics, Processing & KPI’s

Below are the KPI’s of Planning & Production department

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  Manufacturing: Manufacturing orders in progress

 On-time / Late Manufacturing orders

 On-time / Late deliveries

 Comparison (Time): Planned production time vs. Actual time

 Comparison (Cost): Planned cost of production vs. Actual cost

 Comparison (Material): Planned consumption of materials vs. Actual consumption

 Equipment usage chart: Chart showing the equipments to be used and their

availability.

 Inventory: To Maintain timely inventory (finished goods) available

 No Stock Out: To make sure no stock (finished goods) is below the required quantity

(orders to fulfil).

Reporting

 Planning Department would share a master plan for material required to fulfil the
orders refer as annexure TF-MP-006
 Planning Department would share material projection plan to fulfil the orders (KVA
wise) refer as annexure TF-MP-007
 Production Department would share the Monthly Stock and WIP report refer as
annexure TF-MP-008
 Planning Department would share the Monthly Requisition Status Report refer as
Annexure TF-MP-009
 Production Department would share actual vs planned time consumption Report
refer as Annexure TF-MP-010

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  Production Department would share actual vs planned cost incurred Report refer as
Annexure TF-MP-011
 Production Department would share actual vs planned material consumption
Report refer as Annexure TF-MP-012

Store Department key metrics, Processing & KPI’s

Below are the KPI’s of Store Department

 Inventory: To Maintain timely inventory (raw material) available

 No Stock Out: To make sure no stock (raw material) is below the required quantity

(for production)

Supply Chain department key metrics, Processing & KPI’s

Below are the KPI’s of Procurement department

 Compliance Rate: Understand if suppliers fulfill your requirements

 Number of Suppliers: Track your level of dependency towards your suppliers
 Purchase Order Cycle Time: Know whom to address your urgent orders to
 Supplier Availability: Measure suppliers’ capacity to respond to demand
 Supplier Defect Rate: Evaluate your suppliers’ individual quality
 Lead Time: Understand the total time to fulfill an order
 Cost of Purchase Order: Control the internal costs incurred by each purchase
 Procurement Cost Reduction: Streamline the tangible costs savings
 Procurement Cost Avoidance: Avoid potential extra costs in the future
 Purchase requisition Management

 PO & Invoicing accuracy

 Supplier order & Delivery time

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Reporting

 Supply chain department would share the “Monthly Requisition Vs Purchase

Order Status report” refer as annexure TF-MP-013

Finance Department key metrics, Processing & KPI’s

Below are the KPI’s of Finance Department

 Finance Resources: To make sure that finance resources are available for purchase

of projected raw material and other running purposes.

 Payments: To make sure that payments are made to the suppliers in time.

 Billing: To make sure that bills are forwarded in time for sales made to the clients.

 Receivings: To confirm that payments are received from clients in time to ensure

continuity of regular course of business.

Human Resource Department key metrics, Processing & KPI’s

(Pending)

Composition of Business Review Committee

The committee should consist a minimum of 5 participants. It may occasionally be

considered appropriate to increase the number of members in a Purchase Committee and
in such cases, for voting purposes, it is advisable to have an odd number of participants. A
suggested composition of a PC could be as follows;

1. Sales & Marketing Manager or equivalent (Marketing Department)

2. Technical Representative (Production Department)
3. Stores Representative (Store Department)
4. Supply Chain Manager or equivalent (Supply Chain Department)

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 5. Finance Department Representative (Accounts & Finance Department)
6. Human Resource representative (HR Department)

When procuring on behalf of BOD or Chief Executive, a representative from the BOD or
Chief Executive should be invited to participate as a member of the Purchase Committee.
This will improve the level of transparency in the process. The participation of
beneficiaries on PC’s should also be considered where appropriate.

Working of Business Review Committee.

Once the committee has been established, BOD/CEO or one member should be allocated
the responsibility of chairing the meeting.

Each of the 5 Committee members should be rotated on 6 monthly basis (and more
frequently if possible). Only 2 members should be rotated at any one time to allow an
element of continuity on the committee.

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 Meeting Secretary and Meeting & Attendance

Adherence of
Meeting Invitation to
Previous Meeting
Member
Conclusion

Secretary Appointed
&
Responsible For

Meeting Start From

Reports Received
Previously Meeting
Before Meeting
End

Records Minutes of
PRC Meeting on First Meeting 3 Member Attendance is
Week of Every Month or
Compulsory
Depends on Activity

PRC = Procurement Review

committee

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Meeting Secretary

A secretary should also be appointed to record the relevant information and major
responsibility would be.

 Prior Meeting call and invitation to all PC members with Date and Timing of
meeting.

 Ensure that all the pertaining reports are received through email or by hand
before the start of meeting.

 Ensure that minutes of meeting are properly recorded and emailed to PC’s
Members and BOD/CEO.

 Ensure that previously minutes of meeting are properly addressed and

rectified.

 Ensure that meeting started with pending points of the previous minutes of
meeting.

Meetings

PC’s should ideally meet on a regular scheduled basis which will be the first week of every
month or depending on the level of activity.

Attendance

Minimum three (3) members attendance is compulsory to start the meeting, absent
member should inform to Meeting secretary in prior notice.

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