Magneti Marelli UM Electronic Systems Private Limited Doc. No.

: LOG-OI-06
Rev. No.: 00
Operative Instruction for Scrap disposal/ Rejected material return to
Issue date: 07.07.10
supplier Page: 01 of 01
1.0 OBJECTIVE: To establish, implement and maintain control for scrap disposal to interested party

2.0 SCOPE: This procedure covers all type of scraps generated/ Return rejected material inside the premises disposal.

3.0 RESPONSIBILITY: HOD Logistics, Accounts and Purchase are overall responsible for implementation of this operative instruction.

Scrap Disposal/ Returning of rejected material to Supplier(s):

All types of scrap generated/ Return rejected material in operations/ Storage & Maintenance will be
1)
given through Scrap Note format.

2) Scrap Note to be filled at scrap generated location and get approval from approving authority.

Logistics (Store) will received filled and approved Scrap Note given by the originator with scrap
3)
material.

After receiving Scrap Note & material , Store incharge will co-ordinate for scrap disposal and get the
4)
PO made for scrap/ return to supplier as per SAP procedure.

After getting PO made, Store will request to account for invoicing the Scrap material to the approved
5)
vendor.

Store will contact the approved vendor and handover the scrap material along with invoice and
6)
maintain the record.

Customer code generation in SAP:

1) For Scrap disposal/ Return material, vendor code to be open (in SAP as Customer Code) .

Purchase will invite Quotations from potential vendors/ scrap dealers considering type of scrap material
2)
and general requirements of ISO14001, OHSAS 18001 & ISO/TS 16949.
Make comparative statements and complete negotiations on prices, payment and handling/ delivery
3)
terms.

4) Vendor to be finalised by a team of HOD Operations, Purchase, Account and HR.

After finalising the scrap vendor/ dealer, Code will be open in SAP (as Customer code) by Logistics
5)
(Store)

4.0 REFERENCE DOCUMENTS (INTERNAL) 5.0 REFERENCE DOCUMENTS (EXTERNAL)

6.0 RECORDS SYS/FM/02-0

Title Format No. File Ref. Storage Ret. Period Communicated to Disp. Method Resp.
Scrap Note LOG/FM/01

ISO/TS 16949:2009 APPROVED BY ISSUED BY CONTROL STATUS

Head (O.Head, Accounts & Purchase) MR CONTROLLED COPY