REVISION RECORD SHEET

TITLE : PROCEDURE FOR

REV.NO 00 INVENTORY CONTROL. DESC. OF AMENDMENT DATE OF AMENDMENT FIRST ISSUE AS PER QS 9000 : 1995

PR.NO : QP-15-02 PAGE NO : 1 OF 3 ISSUE NO : 01 REV NO : 00 DATE : 16.03.1997 REASON FOR AMENDMENT

DISTRIBUTED TO :
SL.NO DESIGNATION NAME & SIGNATURE OF THE RECEIVER

PREPARED BY:

APPROVED & REVIEWED AND RELEASE CONTROLLED BY:

QUALITY ASSURANCE PROCEDURE

TITLE : Procedure for Inventory Control.
Purpose

PR.NO : QP-15-02 PAGE NO : 2 OF 3 ISSUE NO : 01 REV NO : 00 DATE : 16.03.1997

: To describe the details of system followed in control of material stocks to optimise the stock levels, without loss of production capacities or want of materials & at the same time avoiding blocking up of working capital. : The procedure is applicable for all types of regular items.

Scope

Reference : List of inventory levels. Procedure : 01. G.M. (Comm) shall be responsible for controlling the stock levels of all types of direct production materials. 02. Dy. Mgr (Materials) shall maintain a list of all direct materials and minimum stock levels to be maintained for each of them. The list shall include minimum & maximum stock levels for each item. 03. The minimum stock levels shall be arrived at considering various aspects like Consumption rate for the planned production, lead time of procurement, probability of consistent availability, price, storage facilities, shelf life etc. 04. The materials which are available consistently & procured from local market shall be having stock levels minimum as possible. However, it shall be sufficient to cater for interruptions in material supply in case of unavoidable circumstances beyond our control. 05. To have this system effective, 100 % on time delivery performance as described in chapter -QM-06 of quality manual shall be monitored by Materials department. 06. The inventory level list mentioned above shall be approved by G.M.(Comm) & copy shall be provided to stores incharge. 07. The Stores Incharge shall provide stock statement for items covered in the inventory level list to Materials department daily, for items having less than defined stock levels & weekly for excess stock levels. 08. Dy. Mgr. (Materials) shall review the statement to determine possible shortages and arrangement required for procurement. For vital materials, daily stock report FM-15-17 showing number of days for which the stock of each material will be sufficient, shall be maintained by Dy. Mgr. (Materials). 09. G.M. (Comm) shall ensure that, all the regular items required for production are available in stock, in quantities specified and the consumed quantities are replenished in time.

QUALITY ASSURANCE PROCEDURE

PR.NO : QP-15-02 PAGE NO : 3 OF 3 ISSUE NO : 01

TITLE : Procedure for Inventory Control.

REV NO DATE

: 00 : 16.03.1997

10. The items having long lead time shall be paid attention all the time by Dy. Mgr. (Materials) 11. To enable the suppliers to achieve 100 % on time delivery performance, an effective communication system & interfaces with supplier shall be ensured by Materials Deptt. The delivery schedules shall be clearly intimated in advance and healthy relationship with supplier shall be maintained. 12. Materials department shall make all efforts to assist suppliers in achieving their performance. The vendor rating findings as per procedure QP-06-02 shall be effective tools for keeping the suppliers informed about areas of improvements. 13. The trend of consumption pattern shall be studied and analysed periodically by Dy. Mgr. (Materials) to determine need or change in inventory levels. Also new or alternative material introduced from time to time, shall be included in the inventory level list, and the same shall be approved by GM(C).