Automode VENDOR SELECTION & PURCHASING

Page No.: 1 of 5 Process No. : AF-PM-704-A

Revision No. 04 Approved by :
Revision Date: 01-03-05 Prepared by :
Issue Date: 02-03-05 Issued by :

1 PURPOSE
SELECTING CAPABLE VENDORS & PURCHASING .

2 SCOPE
IT COVERS PURCHASING FROM EXISTING VENDORS & SELECTION OF NEW VENDORS, WHICH ARE
NOT APPROVED BY CUSTOMERS.

3 PROCESS OWNER
HOD-MATERIAL

4 TURTLE MODEL :

SUPPORT PROCESS: -
*CUSTOMER ORDER RECEIPT & DELIVERY
*APQP & PPAP
*PROCESS / OPERATION CONTROL
*IMS BUSINESS PLANNING
*HANDLING, STORAGE, PRESERVATION &
CONTROL OF PURCHASED PRODUCT.
*INFRASTRUCTURE MANAGEMENT
*TRAINING & HUMAN RESOURCE
MANAGEMENT
*LEGAL & OTHER REQUIREMENT
*EHS MANAGEMENT PROGRAMME.
*CONTINUOUS IMPROVEMENT &
PREVENTIVE ACTION
*
EFFECTIVENESS: --- EFFICIENCY: --
*MATL. INVENTORY TURN
*1st SAMPLE APPROVAL
*NO. OF DAYS TAKEN AGAINST RATIO.
*PREMIUM FREIGHT STATUS
PLANNED (VENDOR SELECTION)
*MATL AVAILABILITY TREND *BOP TARGET COST V/S
ACTUAL COST
*TARGET V/S ACTUAL PROCUREMENT
TIME (SPARES PARTS) *COST SAVINGS
INPURCHASING
*NO LINE STOPPAGE DUE TO MATL.
* BOP COST REDUCTIONS

INPUTS: --
OUTPUTS: --
*MATERIAL INDENT FORM,
*PRODUCTION PLAN *INPUT FOR MFG. PROCESS
*DEVELOPMENT PLAN VENDOR *APPROVED VENDOR LIST
*BUSINESS DIRECTORY SELECTION *PURCHASE ORDER
*PERSONAL CONTRACT & *PPAP RECORDS
*EXIBITION PURCHASIN *CONTRACT WITH SUPPLIER
*ADVERTISEMENT *INVENTORY TURN RATIO
*TRADE JOURNAL G *DEAD STOCK
*DRAWING, SPECIFICATION, BOM ETC. *DEVELOPED PARTS
*VENDOR EVALUATION FORMAT *LESSON LEARNT DURING
*INSPECTION STANDARDS DEVELOPMENT
*INVENTORY LEVEL
*MSDS
*PACKAGING STANDARDS

COMPETANCY REQUIRED :
*VENDOR PROCESS KNOWLEDGE
*MATERIAL MANAGEMENT
*INTERNAL PROCESS KNOWLEDGE
*COSTING KNOWLEDGE
*ABILITY TO READ BALANCE SHEET
*ABILITY TO ACCOMMODATE CHANGE
HOW: -- AF-PM-704-A DURING CHANGES.
*TS 16949, OHSAS18001 & ISO 14001
*AS PER DEPARTMENT COMPETENCY
CHART.
Automode VENDOR SELECTION & PURCHASING
Page No.: 2 OF 5 Process No. : AF-PM-704-A
Revision No. 04 Approved by :
Revision Date: 01-03-05 Prepared by :
Issue Date: 02-03-05 Issued by :
5 DESCRIPTION
No. Activity Responsibility Reff. Control
points
5.1 VENDOR SELECTION :--
5.1.1 IDENTIFY NEED FOR NEW VENDOR SELECTION FROM HOD DESIGN & APQP AS PER
APQP
APQP/ DEVELOPMENT PLAN, COST REDUCTION PLANS DEVELOPMENT PLANS TIMELINE
Etc., + HOD MATL.
5.1.2 IDENTIFY NEED FOR NEW VENDOR SELECTION FROM HOD MATL. ------
PRODUCTION PLAN, CUSTOMER PROJECTION &
BUSINESS PLAN& PURCHASE INDENTS etc.
5.1.3 IDENTIFIY THE PROBABLE VENDORS THROUGH HOD MATL + FPUR-13
CUSTOMER, BUSINESS DIRECTORY, PERSONAL DESIGN &
CONTACTS, EXHIBITION, ADVERTISEMENT & TRADE DEVELOPMENT
JOURNALS, WEBSITES ETC. AND SEND THE VENDOR
EVALUATION FORMAT
5.1.4 NOMINATE A TEAM & CARRYOUT VENDOR SITE PURCHASE + FPUR-13
ASSESSMENT TO EVALUATE THE VENDOR D &D + QA FO-15
CAPABILITIES
5.1.5 IF VENDOR MEETS THE REQUIREMENTS, ASK THEM TO HOD MATL. ---
SUBMIT QUOTATION & SYSTEM DOCUMENTS
ACCORDINGLY
5.1.6 PREPARE COMPERATIVE STATEMENT & ISSUE HOD MATL. CRP-01
L.O.I/PURCHASE ORDER AS REQD. FPUR-01
5.1.7 ASK VENDOR FOR SAMPLES WITH DETAIL REPORT & HOD MATL./
PPAP DOCUMENTS, IF APPLICABLE. SEND TO DESIGN & ENGR. MATL. FQ-19
DEVELOPMENT ON SIR, FOR TESTING. & APPROVAL
5.1.8 ENSURE IDENTIFICATION OF EHS ASPECT /IMPACT HOD MATL./ AF-PM-
/HAZARDS/RISK ASSESSMENT FOR PURCHASED PART & ENGR. MATL 403
THEIR CONTROL.
5.1.9 IF ACCEPTED THEN SEND IT TO CUSTOMER WITH HOD TQM
COMPLETE VENDOR & AUTOFIT REPORT FOR TESTG. & HOD MATLS.
APPROVAL.
5.1.10 AFTER CUSTOMER APPROVAL, RECOMMEND TO HOD MATL./
DIRECTOR FOR NEW VENDOR ALLOCATION HOD TQM
5.1.11 AFTER DIRECTOR APPROVAL, ALOCATE VENDOR CODE HOD MATL. FPUR-09
AND INCORPORAT VENDOR IN VENDOR APPROVED FPUR-10
LIST
5.1.12 ASK VENDOR FOR PILOT LOT WITH IPP/ PPAP ENGR. MATL. FQ-21
WARRANT, SEND IT TO DESIGN& DEVELOPMENT FOR
APPROVAL
5.1.13 IF ACCEPTED, SEND MATL. WITH IPP TO CUSTOMER HOD TQM. FQ-21
5.1.14 AFTER CUSTOMER APPROVAL INFORM TO VENDOR HOD TQM
FOR FURTHER ACTION. HOD MATL.
5.2 PURCHASING :---
5.2.1 GENERATE/ UPDATE ITEM CODE/ VENDOR CODE AND S.I. PUR. CFED-04
SCHEDULE OF ITEMS (ON LINE) S.I.EDP
5.2.2 PREPARE PURCHASE ORDER , ENTER DETAIL IN P.O. ENGR. MATL. FPUR-01
CONTROL REGISTER & SEND IT TO VENDOR. IN CASE OF HOD MATL. FPUR-02
ANY CHANGE SEND P.O. AMENDMENT TO VENDORS. CRP-01
FPUR-01
5.2.3 RECEIVE & REVIEW MONTHLY PRODN. PLAN & HOD. DESP. FPP-02,
FPP-03
ACCORDINGLY PREPARE MONTHLY & DAILY HOD. MATL. FPUR-03
SCHEDULE, SEND TO VENDOR. FPUR-11
Automode VENDOR SELECTION & PURCHASING
Page No.: 3 OF 5 Process No. : AF-PM-704-A
Revision No. 04 Approved by :
Revision Date: 01-03-05 Prepared by :
Issue Date: 02-03-05 Issued by :

5 DESCRIPTION
NO. ACTIVITY RESP. REFF. CONTROL
POINTS
5.2.4 PREPARE RAW MATERIAL FOR TYRES AND RIMS & HOD. MATL. FPUR-03
RELEASE SCHEDULE TO VENDOR. ENGR. MATL.
5.2.5 REVIEW SCHEDULE V/S RECEIPT AND MATERIAL ENGR. MATL. CRP-10
RECEIPT SUMMARY CRS-12
5.2.6 IF SOURCES APPROVED BY THE CUSTOMER THEN HOD. MATL. ---
PURCHASING OF PRODUCT, MATERIAL OR SERVICES ENGR. MATL.
FROM APPROVED SOURCES.
5.2.7 IF ANY CHANGE IN PLAN & REQUIRED THAN ENGR. MATHL. CRP-11
IMMEDIATELY INFORM TO VENDOR & RECORD .
5.2.8 ENSURE HAZARDEOUS MATERIALS SHOULD BE ENGR. MATHL. ---
IDENTIFIED AT THE TIME OF RECEIPT. S.I. STORES
5.2.9 PROVIDE MATERIAL SAFETY DATA SHEET (MSDS) FOR ENGR. MATHL. ---
HAZARDOUS MATERIAL
5.2.10 ENSURE PURCHASED PRODUCT CONFORMS TO ENGR. MATL. CRS-12,
SPECIFIED PURCHASE REQUIREMENTS. SI STORE/BOI CRS-04
5.2.11 IF ANY NON-CONFORMITIES OBSERVED, INFORM TO ENGR. MATL. FQ-02
VENDOR IMMEDIATELY FOR APPROPRIATE ACTION.
5.2.12 FOR CONSUMABLE, RECEIVE APPROVED LIST FROM ENGR. MATL. FPUR-04
EACH DEPTT. & RAISE P.O. TO RESPECTIVE SUPPLIERS.
5.2.13 FOR MACHINE SPARES & CATALOGUE ITEMS, RECEIVE ENGR. MATL. FPUR-04
APPROVED INDENT ALONGWITH SPEC. & DRG., IF
AVAILABLE
5.2.14 VERIFY THE INDENT, IF IMPORTED THAN FORWARD HOD MATL. FPUR-04
THE SAME TO HEAD OFFICE FOR FURTHER ACTION &
FOLLOW-UP WITH HEAD-OFFICE TILL MATL. NOT
RECEIVE.
5.2.15 ENSURE ON TIME RECEIPT & FOR SPARE PARTS SELF ENGR. MATL. CRS-12,
INSPN. REPORT SHOULD BE ATTACHED, IF AGREED. CRS- 04
5.2.16 IF SEGREGATION / REWORK REQUIRED THAN TAKE SI. PURCHASE FQ-37
APPROPRIATE ACTION & SEND RE-OFFER REQUISITION HOD. MATLS.
TO QA FOR RE-INSPECTION.
5.2.17 CLEAR THE RE-OFFER MATERIAL IN COMPUTER & S.I.BOI FQ-37
INFORM TO STORES ABOUT OK / REJECTED MATERIAL FS-13
5.2.18 RECEIVE ALL REGULATORY REQUIREMENTS FROM HOD-MATLS. ---
VENDORS SI-MATLS.
5.2.19 IF THERE ARE ANY BIG CHANGES LIKES MERGERS, HOD MATERIAL --
ACQUISTION THAN ENSURE CONTINUITY OF
SUPPLIER’S QUALITY MANAGEMENT SYSTEM & ITS
EFFECTIVENESS.
5.2.20 CALCULATE THE INV. TURN RATIO. S.I. PUR. ----
5.2.21 SEND VENDOR PERFORMANCE STATUS TO VENDORS ENGR. MATL FPUR-15 MONTHLY
5.2.22 SEND BOP INSPECTION STANDARD (CURRENT REV.) TO ENGR. MATL ---
CONCERNED VENDOR THROUGH QA
5.2.23 FOLLOW-UP WITH VENDORS FOR CORRECTIVE ACTION ENGR. MATL FQ-02
FOR ANY NON-CONFORMITY. ENGR. QA
5.2.24 ENSURE IDENTIFICATION OF EHS ENGR QA AF-PM-
ASPECT/IMPACT/HAZARDS/RISK ASSESSMENT & THEIR 403
CONTROL.
5.2.25 ENSURE THE TIMELY PROGRESS OF EHSMP S.I PROD. AF-PM-
405
5.2.26 FOLLOW ECN / CRN SYSTEM FOR ANY TYPE OF S.I PROD & S.I FO-12
DOCUMENTRY CHANGE. QA\PE FE-16
Automode VENDOR SELECTION & PURCHASING
Page No.: 4 OF 5 Process No. : AF-PM-704-A
Revision No. 04 Approved by :
Revision Date: 01-03-05 Prepared by :
Issue Date: 02-03-05 Issued by :
5.2.28 ENSURE ALL ACCIDENT/INCIDENT & NEAR MISS RESP.-SI FEHS-09
(EXTERNAL AS WELL AS INTERNAL) TO BE
RECORDED IN NON-CONFORMANCE REGISTER AT
GATE.
5.2.29 ENSURE IMPROVEMENT ACTIVITY AS QUALITY SI-PROD. AF-PM-804
CIRCLES, SUGGESTIONS, AND KAIZENS ETC. IN
PROCESS
5.2.30 ENSURE CLEANLINESS, PERSONAL SAFETY & S.I PROD FO-04
WORK ENVIRONMENT AT WORK PLACE.
5.2.31 ENSURE MANPOWER DEPLOYMENT AS PER HOD-PPC FHR-04
COMPETENCY CHART.
5.2.32 PREPARE DAILY MIS & CIRCULATE ENGR.MATL

5.2.33 IN CASE OF NEW TOOLINGS, MOULDS, DIES, JIGS, HOD

FIXTURES & EQUIPMENT, FORWARD THE INDENT MATL.
TO DESIGN & DEVELOPMENT AND CO-ORDINATE
FOR DEVELOPMENT/PROCUREMENT ACTIVITIES

6 RECORDS
FORM RECORD DESCRIPTION LOCATION RETENTION DISPODAL
NO. PERIOD AUTHORITY
TITLE
CRPUR-01 PURCHASE ORDER PURCHASE ONGOING HOD MATL
&FPUR-01
FPUR-02 PURCHASE ORDER CONTROL REGISTER PURCHASE 1 YEAR HOD MATL.
FPUR-03 RAW MATERIAL PLAN PURCHASE 1 YEAR HOD MATL.
FPUR-04 PURCHASE INDENT PURCHASE 1 YEAR HOD MATL.
FPUR-06 VEHICLE RECEIPT CHART PURCHASE 1 YEAR HOD MATL.
FPUR-9 CUSTOMER APPROVED VENDOR LIST PURCHASE ONGOING HOD MATL.
FPUR-10 LIST OF APPROVED VENDOR PURCHASE ONGOING HOD MATL.
FPUR-11 DELIVERY SCHEDULE PURCHASE 1 YEAR HOD MATL.
CRP-11
CFED-11 VENDOR CODE REGISTER EDP 1 YEAR HOD MATL.

FPUR-13 VENDOR EVALUATION FORMAT PURCHASE ONGOING HOD MATL.

FPUR-15 VENDOR PERFORMANCE RATING PURCHASE 1 YEAR HOD MATL.

FPUR-22 DOL CERTIFICATE LETTER PURCHASE 3 YEAR HOD MATL.

CRP-10 SCHEDULE / RECEIPT STORE 1 YEAR HOD MATL.

CRS-04 MATERIAL RECEIPT SUMMARY-PARTY WISE STORE 1 YEAR HOD MATL.

CRS-12 MATERIAL RECEIPT SUMMARY-DATE WISE STORE 1 YEAR HOD MATL.

FPP-02 MONTHLY PRODUCTION PLAN PPC 1 YEAR HOD PPC

FPP-03 DATE WISE TENTATIVE PRODUCTION PLAN PPC 1 YEAR HOD PPC

FPP-08 RECORD OF PREMIUM FREIGHT PPC 1 YEAR HOD PPC

FQ-02 CORRECTIVE ACTION NOTE QA 2 YEARS HOD TQM

CFED-04 COMPONENT ALLOCATION SHEET EDP 1 YEAR HOD MATLS
Automode VENDOR SELECTION & PURCHASING
Page No.: 5 OF 5 Process No. : AF-PM-704-A
Revision No. 04 Approved by :
Revision Date: 01-03-05 Prepared by :
Issue Date: 02-03-05 Issued by :

CHANGE HISTORY SHEET STATUS

04 *PROVIDE MSDS COPY FOR HAZARDOUS MATERIAL. 01-03-05

* BOP INSP. STD. TO VENDOR
03 UPDATION FROM QS 9000 TO TS 16949 22-01-05
Rev. no. Description Date