Rejected Material Handling Procedure

Table of Contents
Document Control Log...............................................................................................................................................1
1. Introduction........................................................................................................................................................... 3
1.1. Objectives of the Procedure.............................................................................................................................3
2. Scope......................................................................................................................................................................3
3. References............................................................................................................................................................. 3
4. Acronyms............................................................................................................................................................... 3
5. Users Of This Document.........................................................................................................................................3
6. Activity-Responsibility Matrix.................................................................................................................................3
7. Inputs..................................................................................................................................................................... 4
8. Outputs.................................................................................................................................................................. 4
9. Procedure...............................................................................................................................................................4
9.1. Receiving of materials and Inspection..............................................................................................................4
9.2. Issue................................................................................................................................................................. 5
9.3. Handling...........................................................................................................................................................5
9.4. Storage & Preservation.....................................................................................................................................5
9.5. Handling, Storage and Preservation Guidelines Raw Material Stores..............................................................7
9.6. Procedure for Storage & Usage of Repaired Modules (Bought Out)................................................................8
10. Appendices...........................................................................................................................................................9
10.1. Associated documents...................................................................................................................................9
10.2. Associated From / Record..............................................................................................................................9
 1.Introduction
This Document briefs about the Material Management & Stores and Preservation activity at
Eficaa.
1.1. Objectives of the Procedure
To develop and establish a documented procedure for maintaining procedures for handling,
storage, packaging, preservation and delivery at various stages of manufacture starting from
raw material to finished goods at Eficaa.

2.Scope
This procedure covers all the products coming into Eficaa, including raw materials, bought out
items and consumable inspection.

3.References
ISO 9001: 2008 Clause 7.5.5 : Preservation of the product
ISO 9001: 2008 Clause 7.5.3 : Identification and traceability
ISO 9001: 2008 Clause 7.4.3 : Verification of purchased product

4.Acronyms
MD : Managing Director
MR : Management representative
VPO : Vice President Operations
CSRV : Certified stores receipt voucher
MIR : Material Issue Requisition
MRN : Material Return Note
GP : Gate pass
DC : Delivery Challan
HSP : Handling Storage and Preservation
PP : Preservation Process
SFG : Semi Finished Goods
FG : Finished Goods
PPC : Production Planning Control
PO : Purchase Order
PM : Project Manager.
GM (P) : General Manager Projects.
CPC : Chief projects coordinator

5.Users Of This Document

VPO, Stores in charge, Production manager, QA Engineer

6.Activity-Responsibility Matrix
Activity Primary Responsibility Secondary Responsibility
Overall responsibility of
R.M.Stores In charge
stores activities
Ensure labeling /
identification of material R.M.Stores In charge
in stores.
Update the stock register
after receiving / issuing R.M.Stores In charge
the materials
Prepare stores related R.M.Stores In charge
 records like CSRV, GP etc.
CSRV Approval after QAS Manager / dept.
QAS Supervisor or Engineer.
inspection. heads.
Interact with QA Engineer
R.M.Stores In charge
for incoming inspection.
Approve gate pass VPO
Issue the materials to
R.M.Stores In charge
against respective MIR
Ensure good housekeeping
R.M.Stores In charge
in stores.
Responsibility of Accounts,
administration, Admin officer
department activities
Interact with AO for
PPC
dispatches.
Responsibility of storage of
PPC Production in charge
FG & SFG Goods
Overall responsibility for
Administration
dispatch finished goods in G.M projects
Officer/project in charge
coordination with PPC.
Responsible for the entire
central excise related Administration Officer
activities

7.Inputs
Purchase order
MIR
Material return note(MRN)
Incoming material

8.Outputs
Issued Material
CSRV

9.Procedure
9.1. Receiving of materials and Inspection
Security guard/RM Stores In charge shall check the Challan or any document as available and
put the stamp for acknowledgment of entry into Eficaa Premises.
RM Stores in charge shall receive the materials and check and count the materials with
reference to the PO / DC/Invoice / any other document received along with the material for
quantity and shall update material inward register.
RM Stores in charge shall prepare Material Arrival Note cum Initial Survey Report, CSRV on
DC/Invoice / any document received and the same shall be forwarded to QA section. The
CSRV also contains information regarding shortages / excesses of material received, with
reference to the Purchase Order. Material Arrival Note cum Initial Survey Report copies shall
be sent on daily basis to Materials Manager and Production Manager.
RM Stores in charge shall update the stock register after completion of QA Inspection of
accepted material.
On receipt of information from stores, QA Engineer shall check the incoming material for
quality with reference to the following
Plant standards/Quality plan (raw material)/.Mfgr’s specification or data sheets
 Concerned department heads shall approve other items except the items checked by QA
department.
QA Manager/ department heads shall approve CSRV. In some special cases, rejections are
made after the VPO approval.
QA Manager/Concerned department head shall forward the above approved CSRV (4copies)
to stores along with an inspection report which shall be forwarded to finance & account
section for their process.
The accepted materials shall be placed in storage area and identified accordingly after the
inspection by the concerned departments.
When the results are not satisfactory during inspection, based on inspection report given by
QA Manager/concerned department heads, stores shall prepare a material rejection report
(CSRV) and forward the same to purchase department. Vendor shall be informed by purchase
department and if required a joint inspection shall be carried out in the presence of vendor
representative. Purchase department shall co-ordinate with concerned vendor and take the
actions for lifting the rejected material accordingly.
Material officer/ AO shall prepare delivery Challan /gate pass, in case of the material sent to
vendor for rejection / rework / repair/job work and the same shall be authorized by the
VPO/Authorized Manager.
When replacement material is received RM stores in charge shall raise fresh CSRV and
forward to QA for inspection. This fresh CSRV shall cover the old CSRV no for traceability and
reference.
9.2. Issue
Store In charge shall issue the required material to production department and other
department, on receipt of MIR and record of the same shall be maintained in stock register by
giving MIR No.
Incoming material is released for production usage only after inspection by QA Engineer and
the material meets conformity to specified requirement. Without prior inspection of QA
Engineer the material shall not be placed in main stores area.
Current stock of all materials shall be available in the stock register. Minimum stock level of
critical items shall be mentioned in the stock register.
Materials, which are not used by the production department, shall be returned to the stores
through MRN. Only such material inspected and acceptance by QA will be reentered in to the
stores.
9.3. Handling
All safety procedures shall be followed while handling materials.
Generally plastic crates are used.
Handling, storage and preservation of all material shall be as per clause 9.6, HSP guidelines.
9.4. Storage & Preservation
The materials shall be stored in the specified area. These areas are designated as

9.4.1. Raw Material Stores

Raw material section.
All raw materials shall be stored in this store
SFG section
All semi-finished goods such as assembled PCBs/Modules, Assembled Cables shall be stored
under PPC custody.
FG Stores
All finished goods shall be stored under PPC custody.
The material in the stores shall be identified with accepted (green color) /rejected (red color)
under inspection (yellow color) tags. This contains the following details.
Status.
 Description / Type No.
Quantity.
Supplier.
PO No.
CSRV NO.
Date received
The preservation shall be done as per the standard requirements or as specified by the
manufacturer or as per clause 9.6 HSP Guidelines.
The rejected material / scrap shall be placed in the identified area.
Stores In-charge shall ensure that materials are stored with proper identification on label.
Stores in-charge/QA Engineer shall be responsible for periodic inspection of stores. List of
self-life items (if applicable) to be made available with Stores in-charge.
packing and delivery
All finished products shall be packed as per the customer’s requirement if specified or
according to the general work instruction for packing, under the supervision of packing
supervisor/QA Engineer.
Packed material shall be identified by a label pasted on it, with the following details.
Customer Name
Address
From
Address
For export order if any, packing shall be carried out based on the customers Special
requirements if any or according to standard practice.
Packaging shall be done in such a way that the products are safe from any external damage
during transportation.
Products packed and ready for delivery shall be suitably identified stored in finished goods
stores and shall remain under the control of PPC.
Administration Officer shall prepare a delivery Challan and gate pass mentioning the delivery
details and forward the same to VPO for approval.
Administration Officer /PPC shall verify whether the materials to be loaded are cleared from
QA Engineer. If material is cleared from QA section, then the material shall be loaded in to the
transport vehicle. If material is not cleared from QA Section, the same shall be returned to QA
Section.
Administration Officer shall dispatch the product in consultation with VPO, with all relevant
documents prepared in accounts department, as following
Invoice
Way bills (if required)
Other statutory documents
Any documents specified by customer
Administration Officer shall prepare dispatch particulars after loading and the same shall be
reviewed by VPO.
Updated finished goods stock shall be maintained on the FG register.
9.5. Handling, Storage and Preservation Guidelines Raw Material Stores
Material inspected and accepted by the Inward Inspection cell of QA section shall be stored at
designated places in the storage area.
All inspected / accepted material lots shall be identified with green tags, indicating the
accepted ‘status’. Small / medium sized components shall be placed in plastic bins with cover
and stored at designated places. The location is unique for the respective types of component
at stores. For each type of material, a unique location shall be allotted and maintained in a
register.
 Scrapped / rejected material shall be identified with rej ‘Status’ indicated by red tags and kept
at a separate location in the stores. This material shall never be issued for any manufacturing
process.
Items with limited self-life such as batteries, rubber products, adhesives etc., shall be stored
separately in cool dark and dust-free area in the stores.
All ESD (ELECTRO STATIC DEVICES) sensitive ICS shall be placed in ESD protected strips.
All ESD sensitive components and sub systems shall always be handled / carried in anti-static
bags only.
Semi Finished Goods (SFG) Stores
PCBs/ modules shall be placed in a PCB tray and stored in a neat and clean storage place with
a lock in the custody of PPC.
Whenever PCBs/ Modules are assembled with batteries, they should be neatly covered in a
polythene bag and placed in PCB trays.
PCBs/ Modules containing ESD components shall be placed in anti-static bags and handled or
carried always in anti-static bags.
Each assembled PCB / Module shall be invariably tagged with Job Card and stored properly in
PCB trays.
Assembled cables shall be neatly packed in polythene covers and placed in SFG Stores.
SFG Storage area shall be identified for each type viz., PCBs, Cables, Units,
Stock register for SFG will be maintained by PPC.
Finished Goods (FG) Stores
All finished units / systems shall be properly tagged with Job Cards and stored at designated
places for each type of product in the FG Stores.
The units / system shall be covered in suitable covers to protect from dust.
Carry the units / systems by handles only wherever provided.
As most of the units include ESD sensitive devices, all precautions specified for ESD sensitive
device while carrying & storage.
Once in a month, the FG stores area shall be inspected to ensure that there are no rats,
germs, seepage of water and dust. Suitable preventive measures shall be taken up by PPC
against the above in consultation with the Administrative Officer.
Stock register for finished units / systems will be maintained by Production in charge.
Transit Store
A transit store has been established at the Projects Division to coordinate the transfer of
material to the sites and repairs/servicing of old equipment.
After the project is approved for a particular site and purchase order is released from head
office for the purchase of equipment/accessories. A copy of purchase order is sent to the
transit stores. The Senior Stores Assistant follows up with the supplier/head office for timely
delivery of the goods.
Inspections are carried out at various stages of production arranged at the supplier’s premises
where in the QA Engineers deputed by Eficaa checks the quality of goods, matches the
specification with those mentioned in the PO and checks whether all the documentation is
correct. The inspection report is submitted by QA engineers to QA manager / in charge for
verification .Then QA manager , based on the inspection reports signs the dispatch clearance
and sent to GM projects (of project division) and a copy to material manager. Based on this
dispatch clearance GM projects/ CPC instructs the supplier to transport the material to the
specified site.
Each zone (where the work is in progress) has a group store which coordinates with the stores
at the site. Team leader shall be in charge of the stores at site and PM shall be the in charge
of group store.
Each site store shall maintain BIN cum stock register to account the incoming/outgoing goods.
The material shall be identified with tags.
 At the end of each month, site stores shall send a statement of stock position to the group
store. The group store shall compile these statements and send a consolidated stock position
to the transit store.
The defective equipment/material from the site will be sent along with the following
supporting documents.
Eficaa gate pass
Declaration letter from the location authority that the goods are not for sale
Field return note mentioning the defects / changes required.
The rectified equipment/ material shall be sent to the site along with following supply
document
Non-returnable gate pass.
“NOT FOR SALE “ certificate
Service/ Rectification report.
9.6. Procedure for Storage & Usage of Repaired Modules (Bought Out)
When repaired / replacement Module (bought out) is arrived to stores, CSRV will be raised by
stores and sent to QAS for re testing.
Details such as invoices, letters and test reports received from supplier shall be handed over
to material manager for closing the (DMFR) Defective Material follow up register at purchase.
When the repaired modules are retested and accepted by QAS, they shall be returned to
stores with clearly marked on CSRV as “for maintenance purpose only”.
And also a “yellow paint marking” shall be maintained on the top left corner of the repaired
Module for identification. The painting shall be dark yellow, Asian make.
The Stores In-Charge shall maintain separate storage for the repaired Modules and they shall
be located separately in the raw material stores. But the stock card is same for items
purchased and items received after repair.
These repaired modules shall never be issued to production at any time by stores. Stores shall
issue new modules only to production against MIR, but for exceptional circumstances, under
special approval.
Maintenance section / Field repair centers / R&D section are authorized to draw these
repaired Modules for their use.
In case modules are rejected against purchase order and the supplier subsequently replaces
the fresh lot, then they should be considered as normal and shall be stored along with other
materials in raw material stores and can be issued to production.

10. Appendices
10.1. Associated documents
Work instructions for packing.
Procedure for replacement of rejected material, SD/P07/MMS
Procedure for returning of material through material return note (MRN), (SD/P05/GNL)
Purchasing Process
10.2. Associated From / Record
Material Receipt control Register (in place of)Material Inward Register.
Material Issue Requisition.
CSRV.
Purchase requisition Slip.
Material return note.
Delivery Chelan.
Stock register.
Finished goods register.
Gate passes (Returnable/nonreturnable).
Purchase Recommendation Form.
Maintenance Service Request.
Material Arrival note cum initial survey note.
Defective Material Follow-up Register (DMFR).