Warehouse Procedure Of Project Consumables b6v25

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PROCEDURE MANUAL PROCEDURE TITLE

WAREHOUSE PROCEDURE OF PROJECT CONSUMABLES I.

DOCUMENT NO: PM-SP-04 REVISION NO: 00 EFFECTIVELY DATE: PAGE: 1 of 3

OBJECTIVE To ensure that the product and materials received and issued are properly handled, stored and maintained by the responsible personnel of the company.

II.

SCOPE Cover all the activities from receiving of materials from the supplier, checking and inspection for accuracy, storing of materials up to issuing of items for production’s request.

III.

DEFINITION OF PURCHASE ORDER – List that contains item, quantity and total amount of the item that will be order. SALES INVOICE – A sales invoice is the sale copy of purchase products or services from a supplier to a customer. INVENTORY LIST – Record that shows all items (consumable materials or tools) and its quantity that being issued and received by the storekeeper. ISSUE FORM – Form issued by the purchasing officer to the storekeeper during requisition of items (consumable materials or tools) MATERIAL REQUEST FORM – Form issued to request materials for production use.

IV.

EH&S GUIDELINES 1. Wear appropriate PPE when handling and storing of materials in warehouse. 2. Good Housekeeping should be maintained at all times. 3. Report any unsafe condition to the immediate supervision of safety officer for preventing accident/incident.

V.

PROCESS FLOW CHART

DOCUMENT NO: PM-SP-04

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WAREHOUSE PROCEDURE OF PROJECT CONSUMABLES RESPONSIBILITY

PROCESS FLOW

STORE KEEPER

RECEIVE MATERIALS / ITEM FROM SUPPLIER

STORE KEEPER

CHECK AND INSPECT FOR ACCURACY

STORE KEEPER

NOTIFY PURCHASING OFFICER

ACCURATE?

STORE KEEPER

STORE THE MATERIAL

PURCHASING OFFICER

ENCODING IN THE SYSTEM

PURCHASING OFFICER

MONITOR INVENTORY

REVISION NO: 00 EFFECTIVELY DATE: PAGE: 1 of 3

INTERFACES/DOCUMENTS SUPPLIER

INSPECTION FORM

SUPPLIER

INVENTORY LIST

RECEIPT

INVENTORY KEEPER

REQUESTOR

PREPARE AND SUBMIT MATERIAL REQUEST FORM TO PURCHASING OFFICER

MATERIAL REQUEST FORM

PURCHASING OFFICER

REQUEST FOR APPROVAL


A

NO APPROVED?

INFORM REQUESTOR

YES

PURCHASING OFFICER

FORWARD MATERIALS/REQUESTOR FORM TO STOREKEEPER


STORE KEEPER

ISSUE THE ITEM


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WAREHOUSE PROCEDURE OF PROJECT CONSUMABLES

VI.


PROCEDURE DETAILS 1.0 In warehousing procedure, after receiving the materials or equipment deliveredby supplier, inspection and checking done by the storekeeper usually occurs at the time of delivery. The storekeeper who received the materials or equipment should ensure that the quantity and quality of the delivered goods are as ordered. The storekeeper who is assign to inspect the delivered item(s) needs to be familiar with the items to be stored. If there are amy problems, the purchasing officer should be notified at once. The purchasing officer should the supplier as soon as possible to clear up the problem. 2.0

The purchasing officer will now encode the sales invoice from the supplier for reference.

3.0 Storekeeper will be the one who will monitor all items at the warehouse for its inventory. Every week the storekeeper must submit the inventory list to the purchasing officer for reference. Schedule for inventory of all items will be every Saturday. 4.0 Issuing of the item will be done by the storekeeper and the requestor will use Material request form to request some item to the Purchasing Officer and it will be forwarded to the General Manager or Project Manager for its approval before issuing the item. VII.

REFERENCES PURCHASE ORDER SALES INVOICE INVENTORY LIST MATERIAL REQUEST FORM

VIII.

DOCUMENT HISTORY LOG

REVISION NO. 00

EFFECTIVITY DATE

DESCRIPTION OF CHANGE

AUTHOR

Initial Release

Ingrid Kamil Manalo

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Warehouse Management Policy and Procedures Guidelines Outline (Sample) 1. INTRODUCTION (Starting purpose and scope of the warehousing function) 2. STAFFING NEEDS (Minimum and maximum requirements. Provide required skill sets and TOR’s) 3. STORAGE FACILITIES  Location and site (identifying scenarios for different situations)  Roofing and Flooring (Specify what is required)  Utilities and Services (Identify the minimum standards required)  Security (for goods in all circumstances and staff in conflict environment)  Access  Office (Minimum standard) 4. ORGANIZATION of WAREHOUSE SPACE  Layout  Planning  Operating Schedules  Fire Safety  First Aid  Accessories  Methods of Storage 5. DOCUMENTATION  Goods Receive Note  Waybill  Warehouse  Stock Record  Warehouse Bin Card  Store Release  Packing List 6. AUTHORITY and RESPONSIBILITIES  Organizational structure  Schedule of Responsibilities 7. RECEIPT of MATERIALS  Responsibilities and Procedure  Receiving Procedures  Discrepancies 8. MATERIALS in STOCK  Responsibilities and Procedures  Items received “damaged”  Broken packaging resulting in loss  Stock Levels  Requirements for special storage 9. MATERIALS in TRANSIT  Documentation  Management and movement requirements 10. DISPATCH / RELEASE of MATERIALS  Responsibilities and Procedures

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WAREHOUSE PROCEDURE OF PROJECT CONSUMABLES       

Collected Materials Delivered Materials Materials on Loan Operational Stock Returned Materials Consumables Gate

11. INVENTORY CONTROL  Carrying out an Inventory Check  Stock Level Adjustments  Purpose  Procedure  Removal of Items from Inventory 12. DATA MANAGEMENT / FILING  Procedure (Outline) 13. REPORTING  Disposal reports  Monthly or weekly or by-weekly inventory reports  Damage reports 14. WAREHOUSE INSPECTIONS  Schedule  Responsibilities and Procedures 15. APPENDICES  Format of documents and templates


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Department Procedure - -


Standard Procedure for materials Control and Warehousing

Table of Contents 1. Introduction 2. Receipt of Material 3. Material Checking 4. Daily Material Receiving Record 5. Material Receiving Notice (MRN) 6. Equipment not Completely Acceptable 7. Material Delivered to Third Parties 8. Material Certificates 9. Material Certificate 10. Material Receiving Notice 11. Over, Short and Damage Report 12. Over, Short and Damage Report 13. Recording of Materials Stocks 14. Storage of Material at Site 15. Material issue at Site 16. Access to Company Warehouse 17. Outshipment of Materials – Outshipment 18. Out-Shipment Report 19. Other Materials s 20. Warehouse Purchase Order and Requisition Files 21. Vendors Cards 22. Disposal of Surplus 23. Scrap Control and Disposal 24. Special Piping Materials 25. Equipment Protection During Construction 26. Q.C. Procedure 27. Flow Scheme Material handling Procedure 28. Material Control by Means of Computer (Piping) 29. Attachment Summary

Material Control and Warehousing 1. Introduction The purpose of this section on material control and warehousing is to define the standard procedure for receipt, checking, storing, protection and issue of materials for construction as well as to outline the istrative procedures for material control. In addition a procedure is included for piping material control by making use of a computer. The procedures in this section are written for a fairly large job. On smaller jobs, there may not be same numbers or titles of personnel available as are depicted here. Nonetheless, the same istrative and operating procedures must be followed unless the Project procedure Manual calls for something different, or if permission is received from Home Office Construction Department to vary from the procedure.

2. Receipt of Materials Prior to arrival of material on site, “advice notices” or other shipping notifications will be received by the Material Supervisor. He will record the volume and nature of the shipment and assign a storage location.

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These documents will be transmitted by the Material Supervisor to the Warehouse Supervisor with a copy to the related subcontractor(s) (so they can arrange for the off-loading facilities).

Upon arrival, the material is off-loaded onto the foundation or at the storage location previously determined, in the presence of one or more checkers. Whenever materials arrives on site without advance notification, the Material Supervisor will (if necessary in cooperation with the Project Construction Manager), allocate storage and unloading location without any delay, to avoid demurrage on vendors transport. All truckdrivers will be directed by the guards to report to the warehouse first. If materials is to be unloaded at a point other than Company Central Storage the Warehouse Supervisor will direct the trucks to the offloading location. A Materials Checkers must be present during off-loading. Truckdrivers delivering a large piece of equipment will be met at the gate by warehouse personnel to guide them to the designated unloading area.

3. Material Checking The shipment must be first be checked to see whether it conforms with “Packing Lists and the Marking, Shipping and Invoicing Instruction” issued to vendors by the Home Office Procurement/Shipping Department, being a part of the Purchase Order. Also the Purchase Order, Purchase Requisition plus attachments for specific instructions on loading, unloading, delivery, required official documentation, material certificates, etc., must be checked. On some projects a Purchase Order has been placed with a Shipping Agent, to what extent the Shipping Agent is involved must also be checked. If the shipment consists of unpacked goods, such as structural steel, pipe, etc., each bundle or piece is checked off the carrier by the Checker. The Same applies to boxes, crates or other packed goods. The Checker signs for the goods that actually received, and not necessarily those shown on the delivery documents. Whenever a subcontractor receives Material/Equipment directly, then a copy of a delivery ticket signed by an authorized subcontractor’s representative must be retained by Company’s Warehouse Supervisor and all istrative work performed as if Material/Equipment was received in Warehouse and issued to Subcontractor. If it is not possible to check materials during off-loading the Material Checker signs carrier delivery slip for “Material received – unchecked”. Materials must be carefully checked as to quantity, specification and the condition, immediately after receipt. Before g carrier’s freight bill, the checker should count the number of pieces received and examine for evidence of visible damage. Boxes, crates, and cartons should be carefully inspected before taking delivery. If material is received damage or not in accordance with packing list or freight bill the delivering carrier should be requested to make inspection of damage or discrepancies, and proper notation must be made and acknowledged by carrier on original and copy of freight bill or packing list. If concealed damage is discovered at a later date, the carrier should be notified immediately and requested to make an inspection. Materials involved in any claim should be set aside and redtagged until inspection is completed and liability has been determined. A signed record is to be drawn up on the result by the parties concerned and “Over Short and Damage Report” be made. In the event that the vendor is not responsible for safe custody of goods during transit, claims shall be processed against the carrier.

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The Material Checker is to acknowledge the receipt of the goods only by g the carrier’s copy of delivery tickets together with the copy for warehouse records, showing date of receipt and storage location (“Warehouse row G bin 26” or “Material yard row B”). The Material Checker then checks the material thoroughly against the requisition and the relevant Purchase Order to ascertain that the materials meets the specifications and is correct in quantity.

If there is any doubt as to whether or not specifications are being met the Material Checker must report this to the Warehouse Supervisor for his action. Upon receipt as outlined above, the material will be tagged to the extent necessary, reflecting P.O. number and item number and then stored in the allocated location. All small loose parts such as gaskets, packing rings, bolts, lubricators, gauges, gauge glasses, dripwells, ink, chart, adjusting pins/keys, couplings, spare parts, etc., delivered as part of equipment, should be stored in bins in a separate location in the warehouse and clearly tagged with the item number and P.O. number of the equipment. Any drawings, materials certificates, catalogues, operating instructions and manual relating to equipment are to be marked with the equipment and P.O. number and turned over to Warehouse Supervisor for transmittal to the Site Engineering Department. When material arrives at site for which no Requisition or Purchase Order is available, the Material Checker reports this to the Warehouse Supervisor who is turn checks with the vendor, Home Office Purchasing Department, or in the Field Buyer to see whether material should have been received. If in order, a Purchase Order number should be obtained. Upon completion of the above exercise, the Material Checker will turn in delivery tickets, freight bill, etc., to the Warehouse for compiling a Material Receiving Notice. When the carrier demands freight charges for goods that have been ordered on “free at site” delivery, the freight should be paid from Petty Cash Funds and the Vendor backcharged via Project ing. This Procedure is outlined in the ing in the ing Procedure.

4. Daily Material Receiving Record (DMRR) (Form BN-UC 17 Attachment 1) The Material will enter all materials received (from information on freight bills or packing lists), in a Daily Material Receiving Record DMRR immediately after receipt. This information should be available from hour to hour for the benefit of the construction forces. Copies of this report will be distributed before 09.00 hours the day after the receipt of materials at site. The description of materials received will be in abbreviated form Distribution of the DMRR will be in accordance with the “Document Distribution” or “Construction Coordination Procedure”.

5. Materials Receiving Notice (MRN) (Form BN-UC 15 Attachment 2)

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If no shortages, damages or discrepancies are found, a Material Receiving Notice (MRN) is then prepared to acknowledge the receipt of the material against the relevant Purchase Order. For materials arriving at site not covered by Requisition or Purchase Order a MRN should be made, after obtaining a Purchase Order number, with note in the remarks column “as no P.O./Requisition is available we are listing materials as delivered to site”. After receipt of P.O. and requisition, material should be checked against these documents and a revised MRN issued, if required. Material Receiving Notices must be issued and distributed without delay so that the payment may be made and advantage can be taken of any of payment.

For Field Purchase Order the requisition number should be noted on the MRN. If an Over Short and Damage Report is involved the Over Short and Damage Report number must be noted on the MRN. A separate MRN must be used for each shipment Two or more shipments from one vendor must not be combined, even if they are received the same day and are applicable to the same order. Materials from two or more packing lists must not be combined on the same MRN, even if received on the same freight bill. Generally, vendors invoice for each shipment or packing list separately and the Material Receiving Notice is needed to each invoice. As Material Receiving Notices are made, the requisition or Purchase Order is to be marked up to reflect receipt of the material. The exact storage location is to be noted on the MRN. This document is issued to update the stock control system. When the material received must be inspected by a specialist before an MRN is issued, the Warehouse Supervisor will send an equipment check sheet to the appropriate specialist (Pumps, Compressors, Heat Excharges, etc., Electrical and Instrumentation). A copy of this check sheet must be sent immediately to the Home Office (Expediting Department and ing Department). This advises them that the material has arrived on site and that a MRN will be issued as soon as inspection is done. After the specialist has inspected the equipment (which must be done within three working days), the check sheet is returned to the warehouse and a MRN issued immediately. When goods being received are fully listed or described upon the packing list, this packing list can be used as an attachment instead of relisting them all on the MRN. The Warehouse Supervisor is responsible that the MRN is checked carefully, location is given, etc., All Material Receiving Notices will be signed by the Warehouse Supervisor. Material Receiving Notices are printed in blocks with a white original, and colored copies, and are to be distributed in accordance with the “Document Distribution List”.

6. Equipment not Completely Acceptable Occasionally a piece of equipment is received on site with discrepancies which involved correction costs of a minor nature compared with the total Purchase Order value of the item. So that Company or Client may take advantage of discounts available for quick payment and also in order not to antagonize vendors by withholding payment of a large sum because of comparatively minor discrepancies, a “partial MRN” will be completed with the details of the discrepancy stated on an Over Short and Damage Report (OS&D Report) with some indication as to “cost to field” of rectification. This enables

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the Home Office Purchasing Department to resolve with the ing Department how much of the vendors invoice should be paid. The Backcharge to Vendor procedure will be followed to ensure that Company does not absorb any cost relative to rectification.

7. Material Delivered to Third Parties When materials are delivered by a vendor to third parties (e.g. motors to pump vendors, mounted instruments to vendors etc.,) the items are received on site “built together”. An MRN for each separate component must be issued, e.g. lone for the motor and one for the pump.

8. Material Certificates Piping Materials Each delivery of piping materials, authority and non-authority, will be accompanied by the proper material certificates. The Material Checker will check the materials against the certificates. Any discrepancies found on manufacturer’s symbol, heat numbers, etc., will be notified to the Materials Supervisor immediately for action via the H.O. Inspection/Expediting Department. An O.S.&D Report will be issued recording the certificate and/or material discrepancies. Materials are stored in a separate location and labeled with the corresponding O.S.&D. Report Number. The O.S.&D. Report is cleared upon receipt of the correct certificate or upon replacement of the material as applicable. Under no circumstances will materials be released for construction unless the correct certificate is available.

9. Material Certificate The will show:        

Company Certificate Number Fabricators Code Charge Number Short Material Description Schedule/Pressure Rating Size Quantity Any other information required by contract

On completion of the project, Home Office will produce a certificate following Client requirements from data accumulated from the material certificate .

10. Material Receiving Notice (Attachment 2A)

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An MRN will be maintained by the Warehouse Supervisor. The must show:     

MRN sequence number. Date materials received. P.O. number. Vendor. Material Description.

11. Over, Short and Damage Report (Form BN-UC 16 Attachment 3) In all cases of materials damaged, lost in transit, short or over shipped by vendor, notation must be made on the Material Receiving Notice and Over, Short and Damage Report (OS&D Report) completed by the warehouse. It is imperative that a clear cross-reference is made, i.e. material Receiving Notice number on Over Short and Damage report and Over Short and Damage Report number on Material Receiving Notice. In the remarks column of the Over Short and Damage Report, a note must be made as to the corrective action to be taken. Company Home Office Procurement/Expediting Department is responsible for this action for Home Office Purchase Orders, including update of Computerized Material History file if applicable. In the case of an overshipment on a Home Office Order, this form advises Home Office if the overshipped quantity can be used by field or if it should be returned to vendor for credit. Field makes no disposition of this material, either is to use or return until advised by the Home Office. If to be returned, the Home Office Expediting Department will secure shipping instruction from the vendor and advice the field by means of an AVO or telex authorizing shipment. In some cases, it will be the responsibility of the client to decide if over delivered items can be accepted. In such cases an Over Short and Damage Report is not required. The Client approves the Material Receiving Notice which should state “Overdelivered quantities will be accepted by the Client”. When a shipment from vendor is short, the Over Short and Damage Report Advises Home Office whether or not materials are needed and the Home Office Expediting Department takes the necessary steps to secure materials or credit from the vendor. If the shortage is caused by loss in transit, and the material is not urgently needed, action should be withheld for a reasonable length of time to allow the carrier to attempt to trace and locate lost items. When materials/equipment are received damaged or not according to specification, a copy of the O.S.&D. Report is forwarded to the Site Engineer for the issue of a Non-conformance Report. When materials/equipment are received damaged, a copy of the freight bill or packing list with acknowledgement of the carrier (see Item 3.0 Material Checking) should be attached to the Over Short and Damage Report.

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If claims on vendors or carrier involve repairs by field forces (after authorization by the Project Construction Manager or Home Office A.V.O.), costs of materials, equipment and labor must be accumulated and included in a claim (see Backcharge Procedure). Over Short and Damage reports shall be distributed in accordance with the “Document Distribution List” or “Construction Coordination Procedure”.

12. Over Short and Damage Report (Form BN-UC 22 Attachment 4) The purpose of the is to maintain a record of all Over Short and Damage Reports to ensure that the Home Office Expediting and ing Departments are informed of all reports.

This shall be maintained by the Warehouse Supervisor. Once a month a listing of all open Over Short and Damage Reports shall be mailed to the Home Office Expediting Department with a copy to the Project Construction Manager (and, when required, to the Client’s resident Engineer). All claims on carriers or vendors should be controlled by asg a Backcharge number and recording it in the Backcharge . Over Short and Damage Report (Form BN-UC 22 Feb. 80 Attachment 4) will show:         

Over Short and Damage Report sequence number. Date. Purchase Order number. Material Receiving Notice number. Vendor. Description. Material Receiving Notice clearance number. Remarks. Non-conformance report, if relevant.

13. Recording of Material Stocks (Form BN-UC 46 Attachment 5) All materials received shall be entered on Material Stock Record Cards, which reflect particulars as shown on the Material Receiving Notice, Over-Short Reports and Purchase Orders. The complete description of the material, item number and the exact storage location shall be included.

14. Storage of Material at Site Upon receipt, all materials not directly delivered to the works or Pipe Fabrication Shop, should be stored either in the warehouse or material yard.

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All small materials, instruments, electrical material, tubing, small pumps, etc., must be stored inside warehouse. All large pipe, fittings, valves, etc., will be stored in the warehouse or yard. Materials will not be stored directly on the ground. An under layer of wood or suitable material should be used. All pipe must be stored by type, size and schedule on sleepers with at least 10 cm slope for water drainage and pipe ends (plain or threaded) checked for satisfactory caps/protection. If not already done by vendors, the Warehouse Supervisor is responsible that all material stored either in the Warehouse or yard is properly marked and color coded in accordance with the specification. Hours and materials spent on this marking and coding shall be reported by the Materials Supervisor for Backcharge purposes. This color coding must be maintained throughout the storage / construction period. Each member of the Material Department and Specialist Engineers will be supplied with the copy of the marking and color coding procedure to facilitate the application of correct marking upon the material when received and the traceability of the material throughout the construction period.

Corrosion protection is either the Subcontractor’s or the Warehouse responsibility. Warehouse Supervisor shall check regularly that this work is properly done. The Material Supervisor will check on a regular basis the handling and storage of the materials at the subcontractor’s shop.

15. Material Issue at Site (Form BN-UC 74 Attachment 5A) All materials will be drawn from the warehouse on a Material Requisition which must bear the signature of the Subcontractor’s authorized Supervisor or the Company Specialist. A list of authorized signatures should be kept and should show the following   

Name of employee (Printed) Function (Title) Signature Specimen

A block of numbers shall be allocated to each subcontractor. Material requisitions shall reflect relative item numbers, quantity, description, drawing and/or unit number. These requisition shall be issued in duplicate, the original for the warehouse, the copy for retention by the drawer of the material. Material requisitions must be checked carefully before material is issued to assure that specific allocation is given, and that subject material has not been previously issued. Whenever material has been previously issued, the Material should write on requisition: “Material already issued, see previous requisition number . . . . . .”. Material should never be issued twice. If delivered by error, the Warehouse Supervisor will collect this material from the Subcontractor.

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The Warehouse Supervisor will receive from the Site Engineer a copy of all piping iso/drawings and their revisions. All issue of material must be marked with red pencil on these drawings. This is for control purposes and to ensure that no material has been issued twice. Upon receipt of a revision to a drawing or Isometric Materials have to be checked against the previous issue of the document. In the event more materials are required, Company should prepare this material and inform the Subcontractor accordingly. Where materials have been deleted, the Subcontractors shall be requested to return this material to the warehouse if not necessary for drawings/requisition in hand for issue. The Subcontractor is informed in writing when deleted materials from one drawing/requisition have been allocated to another drawing/requisition. After the relevant materials have been issued, the materials requisition is posted in the Materials Stock Record Card. All requisition received in the warehouse must be filed according to requisition number and per subcontractor. All finals must be filed together. All partial requisition must be filed separately. If materials requested on a requisition are not in stock, the Warehouse Supervisor should check if they are on order. If this is the case, the requisition should be filed in an “outstanding requisitions” file. This file should be check to see if any requisitions can be further completed. If outstanding materials are not on order he will send a Photostat copy of the requisition to the Materials Supervisor for further action. Where piping material is required, other than for an iso/drawing, e.g. for temporary lines, the requisition shall be approved by the Project Construction Manager or his delegate.

Under no circumstances will material be issued from the warehouse or storage yard to Subcontractor without the presence of a member of Company’s Material Department and use of all required materials control documents.

16. Access to Company Warehouse The following personnel have been access to the Company Warehouse at all times during working hours. They are requested to notify the Warehouse Supervisor before entering the Warehouse:         

Project Manager Project Construction Manager Area Superintendent Site Engineer Office Manager Material Supervisor Safety/Security Officer Construction Specialist Client’s Representatives

All other personnel entering the Warehouse must be accompanied by the Warehouse Supervisor or Material or any one of the personnel mentioned above. 17. Outshipment of Materials – Outshipment Report (OSR) (Form BN-UC 18 Attachment 6)

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Materials which are shipped from the job site, must be covered by an Out-Shipment Report. This Out-Shipment Report must reflect the Out-Shipment Report sequence number, quantity, item number and full description of the material, together with the Purchase Order Number upon which the material was originally received. Full details of consignee’s name and address, reason for the shipment and method of shipment must be given. Out-Shipment reports will be signed by the Materials Supervisor. The Client may request to countersign these reports. The carrier must sign legibly for receipt of the goods and insert the registration number of the vehicle carrying the goods. Out-Shipment Reports must be posted on the Materials Stock Record Cards. If an Out-Shipment Report involves material being sent out for repair or replacement, a Material Receiving Notice must be made when material is returned/replaced with a note: “This MRN clears OSR no . . . . . . . . .partially / in its entirety”, whichever applies. Material Receiving Notices for Clearance of Out-Shipment Report must be noted in the Out-Shipment Report . Subcontractor’s properly which is moved from the site on their own Out-Shipment form must first be checked by the Company Warehouse, and a properly completed Out-Shipment report must be attached as cover sheet. The Materials Supervisor will sign Out-Shipment Report after obtaining approval from Project Construction Manager.

Materials on Company Home Office Purchase Orders should be out-shipped only after obtaining AVO or telex approval from the Home Office Expediting/Purchasing Department. An Out-Shipment Report will be maintained on Warehouse by the Material .

18. Out-Shipment Report (Form BN-UC19 Attachment 7) This will Show:     

Out-Shipment Report sequence number. Date. Name of consignee. Description of material. Remarks (used also for Material Receiving Notice clearance number).

A copy of Out-Shipment Report must be mailed to the vendor. Further description of Out-Shipment Reports should be made in accordance with “Document Distribution” or “Coordination Procedure”.

19. Other Material Besides a for Material Receiving Notices, Out-Shipment and Damage Reports, Out-Shipment Reports, the Warehouse will maintain the following s: 19.1

Cable Reel

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(Form BN-UC 13 Attachment 8) This will show a listing of all cables received at site. Including the name of the vendor, size and quantity of cable, date received, Purchase Order number, Material Receiving Notices number and cable reel number, and whether returnable or not. Whenever empty reels are returned, the Out-Shipment Report number and date of return must be posted in this .

19.2

Oxygen and Acetylene Cylinder

Only when purchase by Company.

19.3

Gasoline and Oil Drum – Returnable Drums

Only when purchase by Company.

19.4

Special Container – Returnable Containers

In some cases, materials are received at the job site in containers for which special charges are made. These are charges on invoices for material involved and credited on return. In other cases, they are charged only if not returned within a reasonable time to vendor. Those items received on Home Office Purchase Orders will be covered by an AVO from Home Office Purchasing Department advising shipping instructions and authorizing return when empty. Items on Field Purchase Orders should be reported by Materials Supervisor to Job Buyer.

19.5

Rail Car Log Book

When materials or equipment will arrived on site or nearby by rail, a rail car log book should be used that will show rail car number, time and date of arrival. After the railroad company is advised that the rail car is emptied and ready for transportation the actual time and date the car is taken away by them should be noted in the log book. In addition, the log book will show the Purchase Order number and a brief description of the material received.

20. Warehouse Purchase Order and Requisition Files The Material shall maintain Home Office Purchase Orders, Requisition, Field Purchase Orders and Requisition files. The right hand side of the folder will contain the requisition, Purchase Orders and Amendments. The left hand side of the folder will contain Material Receiving Notices, Out-Shipment Reports, Over Short and Damage Reports, packing lists, and all other documents pertaining to the Purchase Order. The Purchase Order folder is an “open file”. When the final Material Receiving Notice has been issued, Purchase Order files will be marked “Complete” and transferred to another section of the filing cabinet.

21. Vendors Cards

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The Material will maintain for Field and Home Office Purchase Orders a card system indicating names of vendors, description of material and Purchase Order number. Cards will be field alphabetically. This card system helps to locate Purchase Orders if only the vendor’s name is known.

22. Disposal of Surplus It is our normal practice to dispose of all surplus material as soon as practical. The procedure for disposing of this material will vary depending upon the type of contract. If materials were purchased on a reimbursable contract all materials actually belong to the Client, and the Project Construction Manager disposes of the material in accordance with the Client’s wishes as expressed through their field representative. However, if the Client requests Company to dispose of the materials, this will be accomplished as stated below: Approximately at 85% of job completion all surplus materials is to be inventoried. The inventory will list the item number, Purchase Order number, vendor and description and value. Tree copies should be mailed to Home Office Purchasing Department. The Client should also be ed to determine if they are interested in acquiring the materials. The Purchasing Department will investigate possibilities for disposal of the material and subsequently advise field as to what action is to be taken. After the first surplus list has been issued, revisions to this list must be issued regularly. All shipments of material from the job shall be covered with an out-shipment report.

23. Scrap Control and Disposal 23.1

Scrap Control

Subcontractors are responsible for seeing that economical use is made of piping material with a minimum of scrap. All material moved to the scrap location must be inspected by the Piping Specialist. No alloy material may be scrapped without the permission of the Piping Specialist. No fittings may be modified without the permission of the Project Construction Manager e.g. no. 90% elbows will be cut to make 45% elbows. If for some emergency such a modification is made, the Company Piping Specialist must instantly notify the Material Supervisor in Writing Giving full particulars. In addition, if a repair or change is made, every effort must be made to return flanges and fittings to the warehouse. Flanges in particular can be sent to an off-site machine shop for machining on an economical basis for later reuse. Scrap collection locations will be available at site. Subcontractors and the Company Piping Specialists will be responsible for a weekly collection of scrap in their respective areas and dumping at the indicated scrap fill locations. All alloy material shall be kept separated by types.

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23.2


Scrap Disposal

On a reimbursable job, scrap disposal will be discussed with the Client and the action to be taken incorporated in the Construction Coordination Procedure. On a lump sum job it is the responsibility of the Project Construction Manager to dispose of scrap in the most economical manner and proper (auditable) records shall be kept.

24. Special Piping Materials A separate storage area in warehouse and yard may be allocated to special piping materials. This decision is to be made by the Materials Supervisor and approved by the Project Construction Manager. Upon receipt, materials are thoroughly checked against the requisitions and the relevant Purchase Order to ascertain that the material meets the specifications and is correct in quantity. Color coding is verified in accordance with proper specification. Paint shall be of good suitable for outdoor use, if not suitable, remedial action will be taken immediately. Color coding will be checked on a regular basis and upgraded if necessary. Materials are checked against certificates, manufacturer’s symbol and charge number are verified. Taking into the long delivery delay on most special types of material, no extra material, such as for field changes, lost material by Subcontractor, etc., will be issued unless approved by the Construction Superintendent. The Materials Supervisor will notify the Home Office immediately of the additional material requirement even though it might be covered by contingency material.

Pipe Lengths The charge number will be transferred as required by the specification or applicable authority. The stamping will be done by an authorized representative from the Mechanical Subcontractor in accordance with the instructions of the Company Quality Assurance Manager.

Material istration The material istration will be handled in the same manner as for other material.

25. Equipment Protection During Construction 25.1

General

MANUAL TITLE




This section covers the minimum requirements for the protection of equipment against deterioration from the time it is received at the construction site until it is placed in operation. It should not be applied to equipment handling extremely high purity products, where special instruction is required. In addition, additional or special procedures may be required to protect equipment against more aggressive environments such as extreme cold or heat, saltwater, spray, windblown dust or sand. These additional requirements will be furnished in the “Construction Coordination Procedure”. It is assumed that materials and equipment are adequately protected for shipment and storage by the manufacturer in accordance with Purchase Order specifications or manufacture’s standard practice. If not protected by the vendor as specified in the Purchase Order, Company Home Office Procurement must be notified immediately for the purpose of backcharging. The field must then provide adequate protection. When proper protection is not evident, the field shall notify Company Home Office Procurement immediately and make sufficient examination to ascertain that the equipment has not been damaged by the omission. Additional protective measures specified by the equipment manufacturer shall be performed.

25.2

Documentation

Records shall be kept to document the protection given the equipment while the manufacturer’s guarantee is in effect. These records shall be kept from the date of arrival of the equipment at site, showing dates of application of services of each piece of equipment.

25.3

Rust Preventives

The rust preventives referred to herein are RUST-BAN compounds. Some Clients may procedure their own rust preventives, in which case their equivalent preventives shall be used. Preventive suppliers can give more information as to coverage, application temperature, method of application, drying time and method of removal. All interior and exterior surfaces shall be clean and dry before any rust preventive materials are applied. For cleaning of surfaces mineral spirits or solvent shall be used. Kerosene or gasoline shall not be used as cleaning agent.

RUST-BAN 357 Recommended for bearings and internal faces. All rotating equipment protected by this compound, shall be turned over once per week, to keep bearings and other critical surfaces coated. This rotating should be done manually. This must not be carried out with tools, which will damage or mark motor shafts. Drain water form all reservoirs once a month and fill up reservoir to the proper level. If the fluid becomes dirty or contaminated water, reservoir shall be drained, flushed with solvent and refilled.

RUST-BAN 373

MANUAL TITLE




Recommended for exterior surfaces. This preventive has no lubricating properties, thus before placing protected part in service; it should be removed from bearing surfaces, threads, or areas that come in with lubricants.

MOISTURE ABSORBANTS When internals, etc., would be very difficult to protect from rust, moisture absorbants are used for protection. When equipment arrives from the site, the seals shall be examined and damaged seals repaired or replaced, and the absorbant replaced, if necessary. Seals shall be protected until the equipment is serviced for start-up. Moisture Absorbants shall be renewed at time intervals as specified by the manufacturer.

25.4

Machinery

On receipt at the construction site, casing and internals are to be inspected through piping nozzles, etc., to see if rust preventive has been applied. Protection to be done as follows: Turbines, Blowers, Agitator, Gear Cases, Centrifugal Pumps and Compressors. -

Flush bearing brackets and gear cases with solvent until clean. Fill with RUST-BAN 357 at least till the shaft and turn shaft several times to apply a protective coat to the entire shaft and bearings.

-

Clean shaft couplings and exposed machine surfaces and coat them with RUST-BAN 373.

-

If a pump shipped with mechanical seals installed, fill the stuffing box with RUST-BAN 357. When mechanical seals are integral with the pump, and the pump is not protected by moisture absorbants or a blanketing gas, the entire pump should be filled.

-

Turbines shipped with carbon rings installed, fill sealed chamber with RUST-BAN 357.

-

Vertical pumps shall be filled with RUST-BAN 357 after they are moved to their service location.

-

Intermediate shaft s, if necessary, are to be provided to protect against shaft sag.

-

Spare rotating elements are to stored according manufacturer’s instructions.

25.5

Motors and Generators

Motors, designed for indoor use, and generators are to be stored indoors. Motors, designed for outdoor use, can be stored outside free from ground protective covering, permitting good ventilation. If space heaters are furnished within the units, they shall be connected to the continuous power supply of the proper rating, when stored outside, or installed at their service location. Brushes shall be removed from brush holders, and shall be stored in a dry place, when condensation will not occur. Coat couplings and exposed machined surfaces with RUST-BAN 373.

MANUAL TITLE




Measuring and recording of installation resistance values to be carried out as stated in the “Construction Coordination Procedure”.

25.6

Transformers

Transformers intended for outdoor insulation can be stored outside. Large indoor transformers may be stored outside, if raised above grade to prevent any damage from surface water and if a shed roof and tarpaulin siding are provided. Where units are supplied complete with insulation liquids/gases, these should checked on arrival at site. If level or pressure is not within vendor’s tolerances, possible leaks should be located and rectified. Monthly checks on level/pressure should be made and rectification work carried out when necessary. Any separately supplied insulation liquid may be stored outside, without protective covering, if laid on their o, side at an angle of 45 with the large bung downwards.

25.7

Switchgear, Starters and Control Equipment

Equipment shall be stored indoors in a dry, warm place where condensation of humidity cannot occur. If high relative humidity or large, rapid changes in temperature are expected, heaters shall be used to o maintain the temperature of approximately 5 C above minimum daily temperature. If space heaters are furnished with in the equipment, they shall be connected to a continuous source of power of the proper rating.

25.8

Cables o

Rotate reels of properly insulated lead sheathed cable 90 every two weeks to prevent migrating oil from collecting at low points. Measure and record gas pressure in low pressure gas filled cable when received and weekly thereafter. If falling pressure indicates a leak in the cable, maintain same with dry nitrogen until leaked is sealed.

25.9

Batteries

Batteries should be stored indoors in an inactive area to avoid accidental breakage. Batteries that have been shipped dry and charged shall have the seals checked regularly and in case of damage, repaired according to vendor’s instructions.

Nickel-cium and Lead-acid batteries that have shipped dry do not require maintenance. For those shipped wet, electrolyte levels should be checked and filled required. These batteries should also be recharged tri-monthly. Watch for over-charging.

25.10

Instruments

MANUAL TITLE




For instruments a warm, dry and vibration free environment in a secure under cover storage area is o o required. Recommended environment conditions are temperature range of 15 to 30 and humidity between 30 to 40%. Instrument can be stored in the above environment for up to four months in their shipment cases. Where cases/packing have been opened the plastic coverings are to be retained and resealed in the manner they were shipped. s to be stored in their shipping cases up-right until moved into the control house. Instruments installed in outdoor locations shall be protected from weather and mechanical damage.

25.11

Piping

Any protective coatings/paintwork on piping shall be maintained throughout the storage and construction period, as well as the color coding on piping.

25.12

Flanges

Flanges from 2” and up can be stored outdoors on timber floor or pallets. All flange faces to be cleaned with a solvent if required and protective coating applied and maintained. When machinal flange face is damaged, remedial work has to be carried out before use. Flange facings with 125 RMS (for use with spiral wound gaskets) MUST be remachined before use, if damaged.

25.13

Valves

Manually operated valves from 2” and up can be stored outside, on a timber floor or pallets. Large automatic control valves such as slide valves, motor operated valves may be stored outdoors, on timber floor and with suitable covering over each valve. Valves stored outdoors shall be inspected every two weeks and coating and rust preventive renewed if required. On arrival on the site, when spot check reveals remove all flange covers, clean flange faces with solvent and coat with a rust preventive. Inspect valve stems and valves internals. It necessary clean with solvent and apply rust preventive coating seat manually operated valves. Plugvalves and soft-seated ballvalves to be stored in open position. Valves to be stored with spindles in vertical position. Valve handwheels must not be used for lifting valves, slings etc. must not be ed through valve bore during handling. Plug any open threaded connection. Each valve shall be fitted with an aluminum tag securely attached with stainless steel wire.

Each tag shall be clearly stamped with the valve item number. Tags shall normally be closely attached to the gland bolting. Tags on valves that do not have gland bolting may be attached to the handwheel or other appropriate locations. Tags shall not be attached through boltholes of end flanges or where handling might be subject to damage or loss.

MANUAL TITLE




If not done so y vendor, warehouse to take action.

26. Q.C Procedure Reference should be made to the Field Construction Manual – Quality Control – Section 20, “Care and protection of equipment during construction”. If there is a difference in interpretation between this procedure and the one stated above, the procedure which gives greater protection takes precedence.

27. Flow Scheme Material Handling Procedure

MANUAL TITLE

PROCEDURE MANUAL


Arrival of Material at site via TruckPROCEDURE or Rail REVISION NO: 00 TITLE An out-Shipment OF is prepared to any materials EFFECTIVELY DATE: WAREHOUSE PROCEDURE leaving site. Such shipments may PAGE: require 1 of 3 direct PROJECT CONSUMABLES authorization from Client. Unloading at Warehouse yard on site.

Checked as to: - Nr. Of boxes, cover crates, pieces etc. as shown on delivery receipt.

Delivery receipt signed if in order. Copy retained. Freight collect charges if in order will be paid from petty cash.

Materials are checked as to: Quantity, Quality, and Specifications.

Material not requiring indoor storage are placed at most convenient point for end use. Small fittings, bolts, gaskets, valves, instruments, electric materials will be stored in Warehouse. All materials are checked on receipt for proper protection. Pipe, is checked for color coding. Fittings and Flanges are checked for color coding. Valves are checked for proper tag no. (metal label). All equipment is checked periodically until turnover to construction or operators, to insure proper weather and corrosion protection. Materials are issued to installation, upon receipt requisition.

In the event that materials received are not as per the order an “Over, Short and Damage Report” is prepared.

28. Material Control by Means of Computer (Piping) 28.1

The site computerized material Stock Control System is programmed for:

(a) Receiving of data from the Home Office mainframe computer. (b) Transmittal of data from the site to the Home Office mainframe computer. (c) Various Site Applications:

-

Registration of certificates – update. Registration of material receipts. Material allocation per given drawing or batch of drawings. Production of material lists for issue of materials. Automatic material stock level update. Registration of material issued per single item of a single drawing.

construction for of a material

MANUAL TITLE

PROCEDURE MANUAL -

Registration of material issuedPROCEDURE per given batchTITLE of drawings.

28.2

DOCUMENT NO: PM-SP-04 REVISION NO: 00

EFFECTIVELY DATE: WAREHOUSE PROCEDURE OF A telephone link between the Home Office main Frame computer and the PC at the1 of Site3 Office PAGE: PROJECT CONSUMABLES will be established.

Data received from the Home Office: -

Purchase orders information on a continuous basis. Material requirements per isometric upon request from site. Material description data.

Data transmitted to the Home Office: -

Material receipts on a daily basis to complete the PMC procurement cycle.

28.3

Material Receipts

All data on receipts of material will be entered into the PC on a daily basis. By entering this data the following occurs: -

Stock levels are automatically updated A data file is written which is then transmitted to the Home Office via the link.

28.4

Certificate

The information on purchase orders transmitted by the Home Office is written automatically in the certificate data file. The following additional data required to be entered: -

Company certificate number Charge number Quantity Vendors code Other number/codes required by contract

28.5

Material Availability and Shortage

Data transfer on material take-off is requested from Home Office on a batch of drawings following the construction priority schedule and following the backlog requirements of the Piping Prefabrication Subcontractor. A “sample” report is run on the site PC that shows availability of material. This may be done per batch of drawings or for a small group of drawings which could represent a particular piping system. This report will show these isometrics, (prefabrication and /or erection) and Material Lists that can be met from the existing warehouse piping material stock. The report will show Material Lists where only partial issue is possible. In these cases, the missing material is highlighted. This information is used as a guide for priority expediting purposes.

28.6

Issuing of Materials

MANUAL TITLE

PROCEDURE MANUAL


For isometrics indicating that thePROCEDURE materials are available will be printed REVISION NO: 00in TITLE on request, a Material List duplicate which is used for the issue WAREHOUSE of materials to thePROCEDURE Subcontractor. The Subcontractor’s authorized EFFECTIVELY DATE: OF representative signs one copy for the receipt of the material which is held in the warehouse PAGE: 1file of and 3 one PROJECT CONSUMABLES copy is held by the Subcontractor. -

The printing of the Materials List will automatically reduce the material stock level in the PC.

The Material Lists may be requested: -

For the fabrication items only For erection items only

28.7

Issue of Extra Materials to the Erection Contractor and/or Returns of Materials to the Warehouse

The issue of extra materials on drawings for revisions, filed changes, etc. will be done by means of a Foreman Requisition. The Subcontractor signs copy of the Foreman Requisition for the receipt of material. The Foreman Requisition is entered in the PC to update the stock control system. Materials returned to the Warehouse are done by a negative Foreman Requisition is also entered in the PC to adjust the stock.

28.8

Material on Hold

If may occur that systems of high priority cannot be fabricated or erected due to missing material. The PC Material Control System allows to put the part of the available material “on hold” in order that it is not allocated to a non-priority drawing. The “hold” can be released if required.

28.9 -

Reports Available from the PC Material Stock Control System

Material available overall Quantity of material issued/drawing Certificate allocation by given purchase order Certificate of allocation by a given charge order Material shortage by given drawing number or per batch of drawings

28.10

s Manual

Further details relative to the application of computerized (piping) materials control are given in a separate “s Manual”.

29. Attachment summary

1.

DAILY MATERIAL RECEIVING RECORD

2.

MATERIAL RECEIVING NOTICE (MRN)

MANUAL TITLE

PROCEDURE MANUAL PROCEDURE TITLE 2A. MATERIAL RECEIVING NOTICEWAREHOUSE

PROCEDURE OF PROJECT CONSUMABLES

3.

OVER, SHORT AND DAMAGE REPORT

4.

OVER, SHORT AND DAMAGE REPORT

5.

MATERIAL STOCK RECORD CARD


5A. MATERIAL REQUISITION 6.

OUT-0SHIPMENT REPORT

7.

OUT-0SHIPMENT REPORT

8.

CABLE REEL

9.

MATERIAL RECEIPT NOTICE

10. PICKING LIST 11. FOREMEN’s REQUISITION/PICKING LIST

APPENDIX A Methods of Purchase Item or group of like items or project required to be purchased

Is aggregate value in excess of 20,000?

Yes Initiate tender procedure

No

Are the items available via another resource Centre?

Yes

Liaise with appropriate Resource Centre and place order

MANUAL TITLE




No

Is there a current contract covering the purchase of such items? See http://www.leedsmet.ac.u k/fin/purch/puragree.htm

Yes Place order against contract

No

Have identical items and quantity been purchased within the previous 12 months

Yes

No

Are prices still valid? Was standard satisfactory?

Yes Liaise with appropriate Resource Centre and place order

No

Is aggregate value below 5,000?

No

Yes

Is aggregate value below 1,000?

No

Obtain 3 written quotations

Place order with the supplier offering greatest value for money

Retain written quotations and details of verbal quotes on file for two years for audit purpose

Obtain 3 written quotations and record details

Yes

The budget holder shall have the discretion to decide weather or not to obtain quotations. Place order

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