[Company Name]

[Company Group, Division, Location]

Document Title: Material Control Process

Document Number: [Document Number]
Document Filename: [Document Filename]

CONTROLLED COPY/ MASTER COPY

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Revision Revision DCO/ECO Revision

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DRAFT DD/MM/Y YY-00000 Draft Author Name
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1.00 DD/MM/Y YY-00000 Initial Release Author Name
Y

COMPANY PROPRIETARY AND CONFIDENTIAL

[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

Table Of Contents

1.0 Purpose..........................................................................................................................................................2

2.0 Scope.............................................................................................................................................................2

3.0 Definition of Terms......................................................................................................................................2

3.1 Add-On's............................................................................................................................................2
3.2 Asset Tagging Log.............................................................................................................................2
3.3 Bid Tabulation...................................................................................................................................2
3.4 Bill of Lading.....................................................................................................................................2
3.5 Capital Appropriation Request (CAR)..............................................................................................2
3.6 Capital Assets.....................................................................................................................................3
3.7 Capital Asset Tag...............................................................................................................................3
3.8 Company............................................................................................................................................3
3.9 Customer Supplied Materials............................................................................................................3
3.10 Daily Receiving Log..........................................................................................................................3
3.11 Daily Shipping Log............................................................................................................................3
3.12 Debit Memo.......................................................................................................................................3
3.13 Debit Memo Log................................................................................................................................3
3.14 Engineering Change Notice (ECN)...................................................................................................3
3.15 Expense Goods...................................................................................................................................3
3.16 Field Service Returns.........................................................................................................................3
3.17 Finished Product................................................................................................................................3
3.18 First-In First-Out (FIFO)....................................................................................................................3
3.19 Goods.................................................................................................................................................3
3.20 Incoming Inspection..........................................................................................................................3
3.21 In-process Identification Label..........................................................................................................4
3.22 Library................................................................................................................................................4
3.23 Librarian.............................................................................................................................................4
3.24 Material Identification Label.............................................................................................................4
3.25 Material Review Board (MRB).........................................................................................................4
3.26 Material Review Report (MRR)........................................................................................................4
3.27 Material Safety Data Sheet (MSDS).................................................................................................4
3.28 Material Transaction Request............................................................................................................4
3.29 Non-Disclosure Agreement...............................................................................................................4
3.30 Packing Slip.......................................................................................................................................4
3.31 Perpetual Inventory............................................................................................................................4
3.32 Physical Inventory.............................................................................................................................4
3.33 Process Materials...............................................................................................................................4
3.34 Product Identification Label..............................................................................................................4
3.35 Production Materials..........................................................................................................................5
3.36 Purchasing..........................................................................................................................................5
3.37 Purchase Order...................................................................................................................................5
3.38 Receiving...........................................................................................................................................5
3.39 Request for Quotation (RFQ)............................................................................................................5
3.40 Returned Goods Group......................................................................................................................5
3.41 Returned Material Authorization (RMA) Number...........................................................................5
3.42 Returned Material Authorization Request (RMAR).........................................................................5
3.43 Scrap Ticket.......................................................................................................................................5
3.44 Scrap Report.......................................................................................................................................5
3.45 Service................................................................................................................................................5
3.46 Shelf Life...........................................................................................................................................5

[Document Filename] COMPANY PROPRIETARY AND CONFIDENTIAL Page 1 of 8

[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

3.47 Shipping.............................................................................................................................................5
3.48 Shipping Identification Label............................................................................................................5
3.49 Sterile Materials.................................................................................................................................5
3.50 Stock Purge Request..........................................................................................................................6
3.51 Vendor Authorization Request (VAR)..............................................................................................6
3.52 Waiver of Competitive Bidding........................................................................................................6

4.0 4 References..................................................................................................................................................6

5.0 Responsibilities and Requirements..............................................................................................................6

6.0 Procedure......................................................................................................................................................6
6.1 Purchasing..........................................................................................................................................6
6.2 Receiving...........................................................................................................................................7
6.3 Handling & Storage...........................................................................................................................7
6.4 Packaging & Shipping.......................................................................................................................7

[Document Filename] COMPANY PROPRIETARY AND CONFIDENTIAL Page 2 of 8

[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

1.0 Purpose
The purpose of this procedure is to outline the processes required to procure, control and maintain
accurate and complete accountability of goods, services and/or returned products, as well as their
preservation and protection, to prevent confusion, damage, adulteration, or deterioration.

2.0 Scope
This procedure shall apply to all goods and/or services purchased by, contracted for, internally
produced by, and/or supplied to the facilities of [Company Name].

3.0 Definition of Terms

[The following is a sample list of terms that would be provided in this document when a company is
specifying their procedures. It is to serve as an example; the terms may or may not apply to every
organization].

3.1 Add-On's
Any good that is added to or removed from an existing capital asset.

3.2 Asset Tagging Log

A record of capital asset tag numbers assigned to a capital asset purchased by, internally
produced by and/or supplied to a company.

3.3 Bid Tabulation

A document used to compile and compare costing and delivery information for specific goods
and/or services provided by a vendor(s).

3.4 Bill of Lading

An accounting of goods transferred by a vendor to a motor freight carrier.

3.5 Capital Appropriation Request (CAR)

A form used to document a request for Capital Assets.

3.6 Capital Assets

Goods with a dollar value greater than $500, and are not part of the finished product. Exception:
Items used only in the research and development of a product at [Company Name]. is expensed.

3.7 Capital Asset Tag

An adhesive label, with a unique numeric identifier, attached to a capital asset for the purpose of
controlling and maintaining accurate and complete identification.

3.8 Company
The term “company” as referred to within the Material Control Processes procedure describes
[Company Name].

3.9 Customer Supplied Materials

Goods supplied by a customer at "No Charge" to a company, which become a part of the
finished product.

3.10 Daily Receiving Log

A daily record of goods delivered to and/or picked up by a company.

3.11 Daily Shipping Log

A daily record of all goods shipped and/or picked up from a company.

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[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

3.12 Debit Memo

A form used to document deductions made to a payable account.

3.13 Debit Memo Log

A record of all goods delivered to and/or picked up by the vendor for credit or replacement.

3.14 Engineering Change Notice (ECN)

The Engineering Change Notice is the completed and approved Engineering change form that
authorizes a revision on a controlled document.

3.15 Expense Goods

Goods with a dollar value less than $300, and are not part of the finished product.

3.16 Field Service Returns

A finished product returned to the company for the act of performing installation, instruction,
calibration evaluation, repair or rework.

3.17 Finished Product

Goods with a dollar value, and which is the shippable product.

3.18 First-In First-Out (FIFO)

A method of Accounting for turning over inventory and controlling obsolescence, where by first
goods received are the first goods issued.

3.19 Goods
Any item with utility and/or intrinsic value purchased by, contracted for, internally produced by,
and/or supplied to a company.

3.20 Incoming Inspection

The section or operation dedicated to inspect production and process materials, sterile materials
and customer supplied materials after the receipt (permit to enter) to a company.

3.21 In-process Identification Label

Any information in pictorial or written form used to adequately identify production and process
materials, sterile materials, and customer supplied materials during the manufacturing process.

3.22 Library
A controlled area in which all original copies of software and manuals are stored or distributed
to authorized employees.

3.23 Librarian
Individual who is granted full access to the library for the purpose of maintenance.

3.24 Material Identification Label

Any information in pictorial or written form used to adequately identify production and process
materials, sterile materials, and customer supplied materials, while in a controlled stocking
environment.

3.25 Material Review Board (MRB)

A group of individuals representing various company's disciplines with the ability to make
precise decisions on nonconforming materials and products.

3.26 Material Review Report (MRR)

A form used to document and disposition nonconforming materials and products.

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[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

3.27 Material Safety Data Sheet (MSDS)

A technical data sheet containing information on handling, storage, distribution and
transportation of a hazardous substance.

3.28 Material Transaction Request

A form used to document a request for goods.

3.29 Non-Disclosure Agreement

A time-controlled statement, signed by two parties, agreeing that all proprietary information will
be kept confidential and not disclosed without written consent.

3.30 Packing Slip

An accounting of the goods assembled for transport from a vendor.

3.31 Perpetual Inventory

A method of accounting, where by inventory records are maintained on a continuously updated
basis. Inventory counts are calculated from a beginning physical inventory count and
accumulated transactions of goods over a period of time.

3.32 Physical Inventory

An inventory count calculated from a physical count of goods.

3.33 Process Materials

Goods which are required in the manufacturing process and are not part of the finished product.

3.34 Product Identification Label

Any information in pictorial or written form on or shipped with finished products used to convey
information about the finished product to the customer or user.

3.35 Production Materials

Goods which become a part of the finished product.

3.36 Purchasing
The section or operation dedicated to contract goods and/or services for a company.

3.37 Purchase Order

A legal binding contract between company and vendor, which authorizes the vendor to complete
an agreement of service.

3.38 Receiving
The section or operation dedicated to the receipt (permit to enter) of goods into a company.

3.39 Request for Quotation (RFQ)

A document used to request costing and delivery information for specific goods and/or services
provided by a vendor.

3.40 Returned Goods Group

A group of individuals representing various company's disciplines with the ability to make
precise decisions on returned goods.

3.41 Returned Material Authorization (RMA) Number

A number provided by a vendor, authorizing and approving the return of goods.

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[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

3.42 Returned Material Authorization Request (RMAR)

A form used to document the request for goods to be returned to a vendor.

3.43 Scrap Ticket

A form used to identify nonconforming materials and products to be disposed.

3.44 Scrap Report

A form used to document the scrap disposition of nonconforming materials and products.

3.45 Service
Any work accomplished for a company, which does not add value to the finished product.

3.46 Shelf Life

The period of time, under specific environmental conditions, which production and process
materials, sterile materials, customer supplied materials and finished products may remain
unused before it can no longer perform it's function as specified and its remaining useful life
once it is opened.

3.47 Shipping
The section or operation dedicated to the disbursement (permit to exit) of goods from a
company.

3.48 Shipping Identification Label

Any information in pictorial or written form attached to a shipping container used to convey
delivery information about the goods to the shipper.

3.49 Sterile Materials

Any production and/or process materials that have successfully completed a sterilization
process and are certified as sterile.

3.50 Stock Purge Request

A form used to document the request for purging goods from a location.

3.51 Vendor Authorization Request (VAR)

A form used to document the request for adding an approved vendor.

3.52 Waiver of Competitive Bidding

A form used to document the request and authorization for sole source procurement.

4.0 References
 Mission Statement
 Quality Policy
 Control of Confidential/Proprietary Information
 Controlled Environments: ESD
 Supplier Quality Requirements and Survey
 Supplier Performance Rating
 Sterilization Qualification and Control
 Material Review Board
 Product Release
 Material Inspection Status
 Returned Product Authorization, Evaluation, and Disposition
 Traceability
 Quality Manual
 Engineering Change Notice

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[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

 Asset Tagging Log

 Purchase Order Requisition
 Capital Appropriation Request
 Debit Memo
 Debit Memo Log
 Material Transaction Request
 Material Review Report
 Daily Receiving Log
 Request for Quotation
 Returned Material Authorization Request
 Scrap Log
 Daily Shipping Log
 Stock Purge Request
 Vendor Authorization Request
 Waiver Of Competitive Bidding

5.0 Responsibilities and Requirements

[Insert the roles and responsibilities for all individuals associated with the material control process.
Some examples are: Accounting, Administration, Administration Manager, Buyer/Planner, Employee,
Incoming Inspection, Manufacturing Engineering, Manufacturing Employees, Manufacturing Manager,
Material Control Supervisor, Material Review Board, Materials Support Services Manager, Material
Support Services Employees, Quality, Requesters, Requisitioners, Returned Goods Group, etc.]

6.0 Procedure

6.1 Purchasing
[Insert the company procedure with regards to purchasing, detail the process dealing with
vendors including information such as obtaining quotes, recording and referencing the quotes
submitted by vendors and the submission to the next level within the organization. Also include
aspects such as: where the following material requests will be generated: Production and Process
materials, sterile materials, customer supplied materials. Include information about capital
assets such as the maximum amount before special approval is needed and what department
provides the approval. Include the procedure with regard to expense goods and services. Be
sure to include all exceptions to the purchasing procedure, example monetary limit in regards to
capital assets, etc.
Outline and insert the procedure for handling any other areas that are involved within the
purchasing process such as Procurement Authorization, Vendor Authorization Request and
Approved vendor lists.]

6.2 Receiving
[Insert the procedure for receiving goods within (company name). Make sure to include
exceptions or any aspect that deviates from the normal receiving process. Include an outline for
any other aspects that may deal with the receiving process, for example: Sole Source
Procurement, Capital Appropriation Request, Request for Quotation, Tabulation of bids,
Material Identification Labeling, Shelf Life, Material Safety Data Sheet, and Capital Asset
Tagging.]

6.3 Handling & Storage

[Insert the procedure for handling and storage of all materials including production and process
materials, sterile materials, and customer supplied materials and finished products audited,
handled and stored. Include also the receipt and disbursement of these materials. Include all
exceptions. Outline all other processes associated with the handling and storing of materials
which may include, but is not limited to: In-Process Identification Labeling, Stock Rotation,

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[Company Name] Material Control Process
[Company Group, Division, Location] [Document Number]
Rev x.xx DD/MM/YY

Auditing and Cycle Counting, Control of Nonconforming Materials & Products, Stock Purging
and Scrap].

6.4 Packaging & Shipping

[Insert the procedure for (company name) packaging and shipping policies. Include all goods
exiting the facility, including production and process materials, sterile materials, customer
supplied materials, finished products and any other applicable materials. Make note of any
exceptions. Outline other processes that are involved with the packaging and shipping of
materials, which may include, but is not limited to: Product Identification Labeling, Shipping
Identification Labeling, and Return Material Authorization.

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