Departmental Procedure PURCHASE DP: PUR - BHEL … · departmental procedure purchase dp: pur ... bharat heavy electricals limited, ... 7.4 identification of training & development

Departmental Procedure PURCHASE

DP: PUR (Aligned to Quality Manual and ISO 9001:2008)

This manual is to be returned to Head (PUR) when the individual has no further requirement for it or when he ceases to be an employee of BHEL. Individuals in possession of the Controlled Copies will receive revisions as and when issued.

Issue No. 04

Controlled Copy

Date of Issue: 16.03.2010

Revision No. 00

Issued to:

Effective Date: 16.03.2010

Control Number:

Issued by :

Head/PUR

Bharat Heavy Electricals Limited Power Sector Western Region

Shree Mohini Complex Nagpur 440001

DEPARTMENTAL PROCEDURE Issue No. : 04

FOR PURCHASE Rev. No : 00 TABLE OF CONTENTS Date : 16/03/10 Page : 01 of 01

S. NO. CHAPTER IDENTIFICATION

DESCRIPTION

NO. OF PAGES

LATEST REV. NO.

EFFECTIVE DATE

1 -- Table of Contents 1 00 16/03/10 2 DP:PUR Departmental Procedure for

Purchase 8 00 16/03/10

3 ANNEXURE Process MAP of Purchase Dept

7 00 16/03/10

4 WI:PUR:01 Assessment and Enlisting of Suppliers

3 00 16/03/10

5 WI:PUR:02 Preparation of Tender 3 00 16/03/10 6 WI:PUR:03 Floating of Enquiry 3 00 16/03/10 7 WI:PUR:04 Processing of Offers and Award

of work 4 00 16/03/10

8 WI:PUR:05 Post award monitoring of the Suppliers

2 00 16/03/10

9 WI:PUR:06 Performance evaluation of Suppliers and updation of list of acceptable Suppliers

3 00 16/03/10

10 WI:PUR:07 Final Bill and Closing of Contract 2 00 16/03/10 11 Summary of

Revision Summary of Revisions 1 00 16/03/10

BHEL : PS - WR

Reviewed By Approved By

HEAD (MSX) HEAD (PURCHASE)

DEPARTMENTAL PROCEDURE FOR Issue No. : 04 Rev. No. : 00 PURCHASE Date : 16/03/10 Page : 1 of 8 DP: PUR

Reviewed by Approved by HEAD (MSX) HEAD (PURCHASE)

BHARAT HEAVY ELECTRICALS LIMITED, POWER SECTOR WESTERN REGION

PS : WR

1.0 SCOPE

1.1 This procedure details out all activities of Purchase for Products and Services for Installation and Servicing.

2.0 PRIMARY DOCUMENT 2.1 Purchase Policy, Works Policy, Directives and Guidelines from Corporate Office/

Power Sector, Central Vigilance Commission and other such agencies. 2.2 Quality Manual (QM) 2.3 Standard Procedures (SP02, 03, 04, 06, 07, 09, 10, 11, 12 and 13) 3.0 PROCESS MAPS

The Process Maps of Purchase Department are enclosed as Annexure.

All indentors are internal customers of Purchase Department. Their expectations are timely delivery of Quality Products and Services to meet the requirement.

4.0 ORGANIZATION AND RESPONSIBILITY 4.1 The functional organization chart is enclosed. 5.0 ACTIVITIES 5.1 Following activities are performed in line with work Instruction mentioned against

each.




PS : WR

DETAILS OF ACTIVITIES WORK INSTRUCTIONS

5.1.1 Assessment and enlisting of Suppliers (QM 7, SP 03)

WI:PUR:01

5.1.2

Preparation of Tender Specification (QM 7, SP 03)

WI:PUR:02

5.1.3

Floating of Enquiry (QM 7, SP 03)

WI:PUR:03

5.1.4

Processing of offers and award of work (QM 7, SP 03)

WI:PUR:04

5.1.5 Post award monitoring of the sub-contractors (QM8, SP 03) WI:PUR:05

5.1.6 Performance evaluation of Suppliers and Updation of list of Acceptable Suppliers (QM 5, QM 8, SP 03)

WI:PUR:06

5.1.7 Final Bill (QM 8, SP 03) WI:PUR:07 5.1.8 Generate Management Information Reports. 6.0 DOCUMENT CONTROL 6.1 Preparation and revision of DP:PUR and work instruction shall be carried out by

a nominee as per SP 02. 6.2 The documents and data used in the department are controlled as per SP 02.




PS : WR

7.0 PLANNING (AS PER QM 5) 7.1 PERFORMANCE PLANNING 7.1.1 Objectives for Purchase department are drawn in line with QM5 in April every

year. 7.1.2 Annual Individual targets are set, measured, and reviewed as per Performance

Management System. 7.2 RESOURCES MANAGEMENT Resources are deployed so as to improve the effectiveness & enhance customer

satisfaction. 7.3 IDENTIFICATION OF COMPETENCIES

Competencies of departmental personnel are identified as per Performance Management System.

7.4 IDENTIFICATION OF TRAINING & DEVELOPMENT NEEDS 7.4.1 Training needs are identified as per SP 11 and forwarded to HR Department. 7.4.2 Persons are sent for training as per advice received from HR Department. 7.4.3 On completion of training, evaluation is done by HOD/HOF and sent to HR

Department. 7.5 MEASUREMENT, ANALYSIS AND REVIEW (QM 5.6) 7.5.1 Monthly review is conducted for the following: • Performance against Departmental Objectives. • Audit Results. • Product/Process Non-conformances • Resources • Changes affecting QM • Improvement Activities. • Any other point. 7.5.2 Initiate Preventive and Corrective action wherever required.




PS : WR

7.6 IMPROVEMENT ACTIVITIES

Improvement activities are identified and reviewed as per SP-13. 8.0 CONTROL OF NON-CONFORMING PRODUCT 8.1 For any deviation in activities from documented procedure, approval of authority

approving procedure will be obtained. 9.0 CORRECTIVE AND PREVENTIVE ACTION 9.1 Corrective Action: 9.1.1 HOD (PUR) shall take corrective action as per SP 06 and SP 07 in respect of

Non-conformity, if any, identified as a result of Quality Audit. Corrective measures should be so as to avoid recurrence of such non-conformance.

9.1.2 HOD (PUR) will communicate/refer to Head (PUR), Head (QLY) & MR, cases of

Non-conformance which require input from other departments. 9.1.3 After completion of corrective action, HOD (PUR) will communicate satisfactory

condition to Head (PUR). 9.2 PREVENTIVE ACTION 9.2.1 Based on feedback received/obtained from other sources, manufacturing units or

similar type of work carried out in other places, the feedback is analyzed and necessary actions taken to eliminate potential cause of non-conformity.

9.2.2 HOD(PUR) will analyze and take preventive action for elimination of potential

cause of non-conformity in line with SP-06 and SP-07. 9.2.3 HOD(PUR) shall give feedback to Head(Qly) & MR and Head (PUR) on the

preventive action initiated. 10.0 STATUTORY AND REGULATORY REQUIREMENTS (QM 5.1)

The Statutory and Regulatory requirements connected with various activities performed in Purchase of Product and Services in meeting customer needs and contract shall be identified and fulfilled.




PS : WR

11.0 RECORDS AND RETENTION PERIOD The following records are maintained in Purchase Department. HOD (PUR)/ Nominee is

responsible for maintaining the following records:-

11.1 Issue of Tender document/enquiry register 3 years

11.2 Tender processing file & Award file 8 years

11.3 Contract agreement consisting of Tender Specification, LOI etc. ( for Installation services)

8 years

11.4 Settlement file on issues/contract closing files (Installation services) 8 years

11.5 Suppliers list and Evaluation records Permanent 11.6 Purchase Order Register (Purchase of Product) 3 years

11.7 Annual Performance Evaluation of Suppliers 3 years from contract closing

12.0 LIST OF SOFTWARES DEVELOPED/ USED

Software provided by IT department is used. 13.0 LIST OF FORMATS USED S.No. DESCRIPTION FORMAT NO. TYPE

1 Indent Review cum Return Checklist (for Installation Services) PUR-F01 OUTPUT

2 Comparative Statement-for Technical Evaluation of Offers (for Installation Services)

PUR-F03 OUTPUT

3 Performance feedback of Suppliers from other Regions/Units/ Customers etc (for Installation Services)

PUR-F04 INPUT

4 Quarterly Evaluation of Contractor Performance (for Installation Services)

As per Corporate MM format INPUT

5 Annual Evaluation of Contractor Performance (for Installation Services) PUR-F05 OUTPUT

6 Monthly Review with Suppliers (for Installation Services) PUR-F06 INPUT

7 Closing of contract (for Installation Services) PUR-F07 INPUT

8 Contract Period Extension and Over Run Charges Payment Proposal PUR-F13 OUTPUT




PS : WR

S.No. DESCRIPTION FORMAT NO. TYPE

9 Indent Review Cum Return Checklist (for purchase of Product) PUR-F30 OUTPUT

10 Purchase Enquiry (for purchase of Product) PUR-F31 OUTPUT

11 Comparative Statement (for purchase of Product) PUR-F32 OUTPUT

12 Purchase Order PUR-F33 OUTPUT 13 Amendment (for purchase of Product) PUR-F34 OUTPUT 14 Organisation Chart PW-004 OUTPUT 15 Table of Contents PW-005 OUTPUT 16 Summary of Revision PW-006 OUTPUT 17 Indent (for purchase of materials) PW-009 INPUT

18 Inspection report of bought out items for purchase of products PW-010 INPUT

19 MQR PW-011 OUTPUT 20 DP/WI cover page PW-024 OUTPUT 21 Departmental Procedure - Page PW-025 OUTPUT 22 Work Instruction - Page PW-026 OUTPUT 23 Evaluation of training programme HRDD Format OUTPUT 24 Stores Receipt Voucher PW-043 INPUT 25 Indent for Purchase of Services SOMS format INPUT




PS : WR

14.0 ABBREVIATIONS USED

LIST OF ABBREVIATIONS USED

DP DEPARTMENTAL PROCEDURE EMD EARNEST MONEY DEPOSIT HOD HEAD OF DEPARTMENT HQ HEADQUARTERS I/O INPUT/OUTPUT ISO INTERNATIONAL STANDARDS ORGANISATION L1 FIRST LOWEST PRICE L2 SECOND LOWEST PRICE L3 THIRD LOWEST PRICE L2 SCHEDULE 2ND LEVEL PLAN DOCUMENT LOI/LOA LETTER OF INTENT/AWARD MOM MINUTES OF MEETING MME MEASURING AND MONITORING EQUIPMENTS MSX MANAGEMENT SERVICES MT METRIC TONNE PMX PROJECT MANAGEMENT PHY PHYSICAL PG PRODUCT GROUP PG MA PRODUCT GROUP MAIN ASSEMBLY PO PURCHASE ORDER PROJ CONSTRUCTION MANAGEMENT PUR PURCHASE QTY QUANTITY ROD REGIONAL OPERATIONS DIVISION R&M RENOVATION & MODERNISATION SMX CONSTRUCTION MANAGEMENT SP STANDARD PROCEDURE SRV STORES RECEIPT VOUCHER T&P TOOLS & PLANTS TSX TECHNICAL SERVICES WI WORK INSTRUCTION




PS : WR

FUNCTIONAL ORGANIZATION CHART

FOR

PURCHASE

(QM 5)

HEAD (PURCHASE)

HOD (PURCHASE)

INSTALLATION SERVICES (NAGPUR)

PURCHASE OF PRODUCTS (NAGPUR)

WORK INSTRUCTION FOR Issue No. : 04 Rev. No. : 00 ASSESSMENT AND ENLISTMENT OF Date : 09/03/2010 SUPPLIERS Page :1 of 3 PS-WR WI:PUR:01



1.0 SCOPE

This work instruction is for selection of new Suppliers and updating the list of Suppliers. (Clause 3.1 of SP 03).

2.0 ACTIVITIES FOR INSTALLATION SERVICES 2.1 Empanelment / selection of suppliers & Updating of list 2.1.1 Empanel new Suppliers based on requirement. 2.1.2 Select new suppliers as per clause 3.1 of SP 03. Invite applications

through advertisement in newspapers/BHEL website, for enlistment/empanelment as per formats specified in ‘Supplier Evaluation, Approval & Review Procedure’ (SEARP) released by Corporate MM. For existing Techno-commercially qualified Vendors, obtain relevant information as per the same formats.

2.1.3 If necessary, obtain feed back report from customer/other agencies

with whom they have worked earlier. (PUR-F04)

2.1.4 Details/documents submitted by suppliers will be scrutinized by a committee authorized by Head (PUR) consisting of representatives from Purchase, Finance & indenting department, as per ‘Supplier Evaluation, Approval & Review Procedure’ (SEARP) released by Corporate MM. If required, supplier’s work premises will be visited to check the details furnished.

2.1.5 Update the list of acceptable suppliers, as and when changes are

made, on approval of Head (PUR). 2.1.6 For certain infrastructure requirement where the installation is

temporary like Storage cum office sheds, agencies can be identified locally wherever available after approval of Head (PUR).




3.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 3.1 Invite applications for enlistment of Suppliers either through paper

advertisement or by contacting the Suppliers through letter/telephonic request. The Suppliers approaching for registration to be requested for submission of documents etc as per formats specified in ‘Supplier Evaluation, Approval & Review Procedure’ (SEARP) released by Corporate MM. For existing Techno-commercially qualified Vendors, obtain relevant information as per the same formats.

3.2 Evaluate the Suppliers for enlistment as per ‘Supplier Evaluation,

Approval & Review Procedure’ (SEARP) released by Corporate MM, through a committee authorized by Head (PUR) consisting of representatives from Purchase, Finance & indenting department. If required, supplier’s work premises will be visited to check the details furnished

3.3 Committee shall prepare the list of suppliers on evaluation and submit

to Head (PUR) for approval.

3.4 On approval of Head (PUR) include the names of such Suppliers on the approved Supplier list.

3.5 Suppliers on the approved Suppliers list of other BHEL Units will be

considered as approved Suppliers.

3.6 Make purchases from / issue enquiry to the approved Suppliers included in the Supplier list.




3.7 In cases of contingency or urgency, non-availability of Suppliers for the

material indented from the approved list, or customer preferences where it is not possible to make purchases from the Suppliers in the approved Supplier list, obtain the authorization from Head (PUR) to make the purchase with the following safeguards:

3.7.1 Do not make purchases from the Suppliers whose name has been

deleted or blacklisted from the Supplier list. 3.7.2 Get the inspection requirements reviewed by Quality nominee or the

Indentor in the indent and ensure that such quality requirements are fulfilled.

WORK INSTRUCTION FOR Issue No. : 04 PREPARATION OF Rev. No. : 00 TENDER Date : 16/03/2010 Page : 1 of 3 WI:PUR:02



PS : WR

01 SCOPE:

These work instructions are for preparation of tenders for purchase of services regarding installation services.

2.0 ACTIVITIES (FOR INSTALLATION SERVICES) 2.1 Receive, scrutinize and register the indent for purchase of

Installation services. 2.2 Incomplete indents shall be returned to the indentor through HOD

(PUR) vide format no. PUR-F01. 2.3 Receive complete tender specification comprising of Technical Bid

and Price bid excepting commercial conditions e.g. Over Run Compensation, Price Variation, various variations in contract quantities etc. Incorporate appropriate commercial conditions in consultation with HOD/ Purchase. Obtain approval of competent authority for specific/non-routine Special Conditions.

2.4 Identify tender specification number as per following:

BHE/PW/PUR/XXXXX-XXXXX/XXXXX 1 2 3

1 Location code : As per COM 2 Name of package : As per applicable code 3 Running Serial No. : As per Indent Register

On computerization of the Purchase activities, the tender specification numbering will follow the logic accordingly.

2.5 Incorporate changes based on feedbacks, if any, received.




PS : WR

2.6 Issue tender documents to tenderers and make due entries in the tender register.

3.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 3.1 Receive Indent from the Indenting Department for initiating

procurement action. Scrutinize Indent for following before initiating procurement action:

a) Budget sanction reference number, if available, for capital items

and sanctioned provision for revenue expenditure. b) Description of items, quantity and estimated value. c) Adequacy of purchase data and acceptance criterion for the

materials indented as per SP 03. d) The destination for delivery, consignee name and address. e) The time for delivery/staggering of delivery. 3.2 In case the indent is for single tender including proprietary item,

check the reasons for the same with reference to Corporate policy. 3.3 In case the purchases are to be made on behalf of BHEL Units or

Customer, check for: a) Specification b) Supplier List c) Debit acceptance 3.4 If the indent is not complete in all respects return the same to the

Indenting Department vide format number PUR-F30.




PS : WR

3.5 REGISTRATION OF INDENT: 3.5.1 Register the Indent serially in the indent register. The indent

registration number shall be of five digits wherein first two digits shall indicate the year in which the indent is registered and next three digits represents the running serial number, i.e. Indents received in the financial year 01-02 shall bear No. 01XXX, where XXX is serial number.

3.5.2 Assign registration numbers, keep the original in the purchase file

and enter registration number in SOMS.

WORK INSTRUCTION FOR Issue No. : 04 FLOATING OF ENQUIRY Rev. No. : 00 Date : 16/03/2010 Page : 1 of 2 WI:PUR:03



PS : WR

1.0 SCOPE This work instruction is for floating of enquiry. 2.0 FLOATING OF ENQUIRY (FOR INSTALLATION SERVICES) 2.1 Decide whether to call limited tenders or open tenders 2.2 Obtain approval of Head (PUR) for Limited Tenders indicating

name of vendors/subcontractors, the notice period, etc. 2.3 For limited enquiry, prepare tender document forwarding letter

indicating scope of work, due date and time for receipt of offers. 2.4 Obtain approval of Head (PUR) for publishing tender notice in

newspapers for Open Tenders indicating: - Notice Inviting Tender (NIT) & Qualification Requirement - Names of Newspapers and the editions - Publishing in BHEL website - Estimated expenditure for advertisement 2.5 For Open Tender send NIT either to approved vendors in line with

Works Policy or through press advertisement. 2.6 Indicate the amount of Earnest Money Deposit to be furnished by

suppliers with their offers as per General Conditions of Contract. 2.7 Provide adequate time to submit vendor/sub-contractor’s offer from

starting date of sale of tender document (in case of Open enquiry) or from date of dispatch of document (in case of Limited enquiry) as per Works Policy.

2.8 Clarify queries, if any sought by the bidders.

WORK INSTRUCTION FOR Issue No. : 04 FLOATING OF ENQUIRY Rev. No. : 00 Date : 16/03/2010 Page : 2 of 2 WI:PUR:03



PS : WR

2.9 Issue amendment/changes/corrigenda to Tender Specification based on feed back (either from Indenter, Construction Manager, Units/Supplier, ongoing sites).

2.10 Ensure competent authority approval in case of changes in

Technical specifications and/or , commercial conditions and if necessary, due date for receipt of offers can be postponed with approval of Head (PUR).

2.11 After receipt of offers, if any amendment is to be issued, ensure

Competent authority approval is available, and issue amendment to all tenderers in case of limited tenders and to tenderers from whom offers are received in case of open enquiry.

2.12 In case of amendment having commercial implication, take

approval of competent authority, issue amendment as per 2.11 and ask for revised price bid.

3.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 3.1 ISSUE OF ENQUIRY: 3.1.1 Issue of enquiry shall be done as per Corporate Purchase Policy. 3.1.2 Any directives issued by the Corporate office shall also be adhered to.

3.2 OPENING OF TENDER ENQUIRY: 3.2.1 Enquiry shall be opened as per Corporate Purchase Policy. 3.2.2 Comparative statement of Price Bids shall be made 3.3 FOR IMPORTS

For Import of Goods, guidelines issued by Govt. of India and Export-Import Policy shall be followed in addition to Corporate Purchase Policy.

WORK INSTRUCTION FOR Issue No. : 04 PROCESSING OF OFFERS Rev. No. : 00 AND AWARD OF WORK Date : 16/03/2010 Page : 1 of 4 WI: PUR:04

Reviewed by Approved by HEAD (MSX ) HEAD (PURCHASE)


PS : WR

1.0 SCOPE This work instruction is for processing of offers and award of work. 2.0 ACTIVITIES (FOR INSTALLATION SERVICES) 2.1 Number serially all the offers received and write date of receipt of

offer in tender register. 2.2 Take approval of Competent Authority to constitute committee

consisting representative of PUR Dept., Finance, Indenting Department who have to scrutinize the offers technically, commercially and clarify/settle deviations if any, and put up recommendations.

2.3 After the last date of submission of offers, Committee will open the

Bids at the specified date and time 2.4 Sign all the documents, except EMD instrument, contained in the

Technical Bid cover. Assign serial number to offers. 2.5 Take out Price Bid covers, assign the same serial number as

Technical Bid and keep in safe custody. 2.6 Committee will prepare the technical comparative statement. 2.7 Obtain missing information/documents if any, from the concerned

bidders. 2.8 Committee shall discuss the deviations/conditions in the offer with

the Bidders concerned or offer explanation on relevant provisions of Tender Specification enabling bidders to withdraw deviations/conditions. Where deemed necessary on account of retaining competition, opportunity to the bidders may be provided




PS : WR

for price adjustment on account of withdrawal of deviations/conditions. Otherwise bidders may be asked to withdraw deviations/conditions in totality; else their offer may be rejected.

2.9 If some proposal of any bidder is to be accepted which has got

techno-commercial implication, take the approval of Head (PUR) and intimate to all bidders who have submitted offer. Give them an opportunity to revise their price bid.

2.10 In case of open enquiry, Committee will shortlist the suppliers

keeping in view qualifying requirements mentioned in tender specification. Obtain Competent authority approval for the short-listed suppliers and if required send the list to PMX for obtaining Customer approval

2.11 Obtain customer approvals wherever required, for the shortlisted

suppliers. Pursue with customer through PMX for approval of parties rejected by the customers citing additional credentials if available. Fix up suitable date and time for opening of price bids of finally short-listed suppliers and intimate them of price bid opening.

2.12 Take signature of supplier representatives witnessing the opening

of price bid, in Tender register. Open the price bids in presence of representatives of Finance and Indenting Department.

2.13 Examine each and every page of individual price bid for any

calculation error, over writing, cutting, unfilled rates etc. 2.14 Each and every page of price bid to be signed by all three

departmental representatives underlining the shortcomings noticed. 2.15 Announce price/rates quoted by each bidder at the time of opening. 2.16 Committee shall prepare comparative statement for price offered by

bidders and indicate comparative status.




PS : WR

3.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 3.1 Offers shall be processed in accordance with the Corporate

Purchase Policy. 3.2 Purchase Order shall be issued 3.3 Amendment to Purchase Order, if any, shall be issued.

WORK INSTRUCTION FOR Issue No. : 04 POST AWARD MONITORING Rev. No. : 00 OF THE SUPPLIERS Date : 16/03/2010 Page : 1 of 2 WI:PUR:05



PS : WR

1.0 SCOPE

This work instruction is for post award, monitoring and resolution of issues.

2.0 ACTIVITIES (FOR INSTALLATION SERVICES) 2.1 Keep in touch with Site for performance of the supplier. 2.2 Obtain feed back from Site regarding any problems encountered

about supplier’s ability to meet the schedule. 2.3 Where issues cannot be resolved at site level, take up with the

Management at Supplier’s Head Quarters level. 2.4 In case of conflict/stalemate on contractual issues, call for review

meeting at HQ/Site. 2.5 With the help of site, discuss with the supplier/ about ways and

means of improving performance. 2.6 In extreme cases where the supplier/ fails to perform his obligations

to meet the minimum requirement, invoke provisions of contract through respective Construction Manager for alternate measures so as to complete the work.

2.7 Render assistance to site in resolving various contractual problems

that may arise while executing the work.

WORK INSTRUCTION FOR Issue No. : 04 POST AWARD MONITORING Rev. No. : 00 OF THE SUPPLIERS Date : 16/03/2010 Page : 2 of 2 WI:PUR:05



PS : WR

3.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 3.1 INSPECTION OF MATERIAL AND RESOLUTION OF

NONCONFORMITY: 3.1.1 Wherever purchasing data calls for pre-dispatch inspection, Head

(Qly), shall be intimated of the readiness of material for arranging inspection. Where verification by customer is indicated as a requirement in purchasing data, indentor will be informed of readiness of material for inspection.

3.1.2 Receive Inspection Report (PW-010) from Inspection Agency. 3.1.3 Give dispatch clearance to the Supplier. 3.1.4 Follow up with consignee and obtain Stores Receipt Voucher (SRV)

for the materials supplied. 3.1.5 Check for inspection details in the SRV and for any non-conformity

reported. 3.1.6 Take up the matter with the supplier for resolution of non-conformity

by way of replacement/repairs or any suggestion made in the SRV. 3.2 RELEASE OF PAYMENT 3.2.1 Ensure release of payment to the Supplier(s) in accordance with

the agreed terms of payment.

WORK INSTRUCTION FOR Issue No. : 04 PERFORMANCE EVALUATION OF Rev. No. : 00 SUPPLIERS & UPDATION OF LIST OF Date : 16/03/2010 ACCEPTABLE SUPPLIERS. Page : 1 of 3 WI:PUR:06



PS : WR

1.0 SCOPE This work instruction is for performance evaluation and updation of list of acceptable subcontractors/suppliers 2.0 ACTIVITIES (FOR INSTALLATION SERVICES) 2.1.0 Performance Monitoring 2.1.1 Obtain Quarterly ‘Evaluation of Contractor performance’ as per

format prescribed in ‘Supplier Evaluation, Approval and Review procedure’ (SEARP) issued by corporate MM.

2.1.2 Take up with supplier’s Head Office if supplier’s performance is not

upto requirement. 2.1.3 If there is no improvement, call for review meeting at HQ/Site. 2.1.4 Discuss and issue guidelines for supplier to improve his

performance. 2.1.5 In extreme cases, if supplier fails to perform site requirement,

invoke provisions of contract through respective Construction Manager to get job done by other agency.

2.1.6 Prepare Annual Evaluation of Contractor performance (Financial Year

wise) and Over all Performance (for the Contract) based on the averages of net weighted scores of the Quarterly ‘Evaluation of Contractor performance’ reports, and on closure of contract shall be presented in MQC.

2.1.7 Take appropriate action as per BHEL corporate guidelines/Tender

conditions based on Quarterly/Annual/Overall performance reports




PS : WR

3.0 UPDATION OF LIST OF ACCEPTABLE SUBCONTRACTORS. 3.1 List of acceptable subcontractors will be updated periodically as

and when added/deleted. 3.2 List of acceptable subcontractors is maintained under the required

categories. 4.0 ACTIVITIES (FOR PURCHASE OF PRODUCT) 4.1 List out the names of the Suppliers who have completed the

supplies during the immediate preceding quarter. 4.2 Assess the performance exhibited by the suppliers based on

‘Supplier evaluation, approval and review procedure’ issued by corporate office.

4.3 Performance rating feedback to be given to the Supplier indicating specific area of deficiency with an objective for improvement. If felt necessary, BHEL will render help for improvement.

4.4 Generate quarterly Performance Evaluation Report and present in

MQC. 4.5 De-listing/Suspension of Business Dealings with Supplier. 4.5.1 If supplier fails to execute the contract satisfactorily for a period of

one year, he will be put under hold. 4.5.2 If supplier fails to respond against three consecutive tenders he will

be put on hold for the respective category for a period of six months.




PS : WR

4.5.3 If supplier no longer has the infrastructure (technical staff, equipment, financial resources as identified at the time of enlistment) he will be delisted.

4.5.4 If supplier tampers with our tendering procedure he will not be

considered against that particular tender. 4.5.5 If supplier or his partners or representatives are found indulging in

malpractice, he will be banned/blacklisted. The procedure of banning/blacklisting shall be governed by the guidelines issued by Corporate Office.

4.6 Preserve the records of Supplier’s performance assessment for

three years or till the suppliers list is revised. 4.7 Update Supplier list as and when Suppliers are added/deleted on

evaluation or assessment of performance.

4.8 Revise the Supplier list once in three years or as and when required based on the performance evaluation of existing/new Suppliers by committee.

WORK INSTRUCTION FOR Issue No. : 04 FINAL BILL AND Rev. No. : 00 CLOSING OF CONTRACT Date : 16/03/2010 Page : 1 of 2 WI:PUR:07



PS : WR

1.0 SCOPE This work instruction is for closing of contracts. 2.0 ACTIVITIES (FOR INSTALLATION SERVICES) 2.1 Obtain certified final bill along with necessary documents and duly

filled up format for ‘Closing of Contract’ (PUR-F07) from Site. 2.2 Review final bill and forward to HQ Finance for scrutiny. 2.4 Advise site to comply with HQ Finance observations and other

observations before release of payment. 2.5 Keep a copy of final bill extract after the final bill has been verified

by Finance Department. 2.6 After release of Final Bill, issue completion certificate as per

standard format, upon request of Supplier/Contractor.

WORK INSTRUCTION FOR Issue No. : 04 FINAL BILL AND Rev. No. : 00 CLOSING OF CONTRACT Date : 16/03/2010 Page : 2 of 2 WI:PUR:07



PS : WR

3.0 ACTIVITIES ( FOR PURCHASE OF PRODUCT) 3.1 Close purchase file on fulfillment of following activities as

applicable. 3.1.1 Receipt of SRV from consignee for having received and accepted

the material. 3.1.2 In case SRV is not received within 30 days of dispatch date follow

up with consignee. 3.1.3 If SRV is not received even after sending reminders, issue letter

from HOD/HOF enclosing copies of earlier reminders and obtain SRV.

3.1.4 On release of 100% payment to the vendor. 3.1.5 On completion of guarantee period and fulfillment of guarantee

obligation if any, incorporated in the purchase order. 3.1.6 On discharge of Bank Guarantee wherever furnished by vendor as

per the terms of purchase order.

3.2 All purchase files shall be preserved for a period of eight years.

Page : 01 of 01

SL NO. CLAUSE/ PAGE/ FORMAT NO.

REV. NO.

DATE NATURE OF CHANGE

01 Table of content 00 16/03/10 To Align with QM issue 05 and SP issue 04

02 DP:PUR 00 16/03/10 To Align with QM issue 05 and SP issue 04

03 WI:PUR:01 to 07 00 16/03/10 To Align with QM issue 05 and SP issue 04

04 Summary of Revision

00 16/03/10 To Align with QM issue 05 and SP issue 04

DEPARTMENTAL PROCEDURE FOR PURCHASE

SUMMARY OF REVISION

Issue no. : 04

Rev. No. : 00 Date : 16/03/10

REVIEWED BY

(HEAD MSX)

APPROVED BY (HEAD PURCHASE)

BHEL : PS - WR

Documents

Departmental Procedure PURCHASE DP: PUR - BHEL … · departmental procedure purchase dp: pur ... bharat heavy electricals limited, ... 7.4 identification of training & development